FB Financial (US:FBK) Yahoo Finance·2026-01-22 15:17Core Insights - FB Financial reported an EPS of $1.07 and an adjusted EPS of $1.16 for the quarter, with a tangible book value growth of 11.6% since its IPO [5][6] - The company achieved a pretax, pre-provision net revenue of $71.1 million, driven by net interest income of $150.6 million and a net interest margin of 3.98% [5][11] - For the year, FB Financial reported a net income of $122.6 million and an adjusted net income of over $200 million [11] Financial Performance - The company experienced a 29% growth in loans held for investment and a 25% increase in deposits year over year [6][15] - Adjusted returns included a return on average assets of 1.4% and a return on average tangible common equity of 14.4% [6] - Non-interest income improved due to stronger swap fees and investment services revenue [11] Growth Strategy - FB Financial's growth strategy focuses on enhancing customer experience and expanding capabilities through talent acquisition and organizational optimization [7][9] - The company aims to return to a high single-digit growth rate in 2026, despite some underperformance in organic growth during 2025 [15][19] - The management emphasized a strong focus on customer relationships to drive business growth [9][10] M&A and Market Position - FB Financial successfully acquired Southern States Bank, which added approximately 20% to its size [10][11] - The company is open to evaluating additional M&A opportunities, particularly in the Southeastern U.S. and contiguous states [61][62] - Management noted significant market disruption, creating opportunities for growth and talent acquisition [50][52] Expense Management - Non-interest expenses for the quarter were reported at $107.6 million, with merger and integration costs expected to conclude by the end of Q1 2026 [12][19] - The company anticipates banking expenses to be between $325 million and $335 million for the full year 2026 [19] - FB Financial is focused on maintaining operational discipline while being open to strategic investments in talent [38][39] Credit Quality - The provision expense for the quarter was $1.2 million, reflecting low charge-offs and stable credit outlook [13] - The allowance for loan losses settled at $186 million, representing 1.5% of loans held for investment [13] - Non-performing assets increased slightly, but loss content remains low with annualized net charge-offs at only five basis points [13]