FB Financial (US:FBK)2026-01-22 15:02Financial Data and Key Metrics Changes - The company reported EPS of $1.07 and adjusted EPS of $1.16 for the quarter, with annual EPS of $2.45 and adjusted EPS of $3.99 [7][10] - Pre-tax pre-provision net revenue was $71.1 million, or $77.1 million on an adjusted basis, with net interest income of $150.6 million and a net interest margin of 3.98% [9][10] - The company achieved a return on average assets of 1.4% and a return on average tangible common equity of 14.4% [9] Business Line Data and Key Metrics Changes - Loans held for investment grew by 29% year-over-year, while deposits increased by 25% [10][24] - Non-interest income improved due to stronger swap fees and investment services revenue [20] - The banking core non-interest expense totaled $88 million for the quarter and $298 million for the full year [21] Market Data and Key Metrics Changes - The company experienced a slight increase in non-performing assets, but annualized net charge-offs remained low at five basis points [22] - Loan growth for the quarter was $86 million, and total deposit growth was $97 million, both approximately 3% on an annualized basis [23] Company Strategy and Development Direction - The company aims to focus on customer relationships to enhance growth and improve service offerings [15][16] - There is an expectation for a return to high single-digit growth rates in 2026, driven by organic growth and market share expansion [26][30] - The company is open to evaluating M&A opportunities, particularly in the Southeast and Carolinas, targeting institutions with assets between a couple of billion to six or seven billion [92][96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in 2026, despite some underperformance in organic growth due to economic conditions and distractions from acquisitions [14][18] - The company is focused on maintaining a strong customer experience and adapting to market changes, with a long-term view on growth [84][88] Other Important Information - The company repurchased over 1.7 million shares, representing about 3% of its stock, as part of a transaction with its largest shareholder [26][27] - The net interest margin is expected to remain stable between 3.78% and 3.83% in the first quarter of 2026 [28] Q&A Session Summary Question: Anticipation of additional share repurchases from the Ayers estate - Management does not anticipate further share repurchases from the Ayers estate based on current conversations [35] Question: Is mortgage banking on the right path? - Mortgage banking had a positive year, with volume remaining stable and contributions improving significantly [36][38] Question: Current M&A climate and optimism for additional deals - Management noted a lot of conversations in the industry regarding M&A, and they will continue to evaluate opportunities as they arise [40][42] Question: Loan growth and elevated paydowns - Elevated paydowns were noted in the fourth quarter, but management expects to achieve high single-digit growth without needing to hire additional staff [49][52] Question: Expense run rate and changes to compensation structure - Non-run rate expenses were identified, and management reiterated their expense guidance for 2026, indicating a focus on maintaining discipline [59][62] Question: Loan pipeline and client sentiment - The loan pipeline is strong, with clients showing positive sentiment and a willingness to invest in new projects [99][100]