On July 15, 2024, FB Financial Corp (FBK, Financial) released its 8-K filing reporting its financial results for the second quarter of 2024. FB Financial Corp is a bank holding company that provides commercial and consumer banking services through its wholly-owned subsidiary, FirstBank, in Tennessee, North Alabama, and North Georgia.
Performance Overview
FB Financial Corp reported a net income of $40.0 million, or $0.85 per diluted common share, for Q2 2024. This is a significant increase from $0.59 in the previous quarter and $0.75 in the same quarter last year. Adjusted net income was $39.4 million, or $0.84 per diluted common share, compared to $0.39 in the previous quarter and $0.77 in the second quarter of last year.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $40.0 million | $27.95 million | $35.3 million |
| Diluted EPS | $0.85 | $0.59 | $0.75 |
| Net Interest Margin (NIM) | 3.57% | 3.42% | 3.40% |
| Total Revenue | $128.2 million | $107.5 million | $125.4 million |
| Total Deposits | $10.47 billion | $10.50 billion | $10.87 billion |
Income Statement Highlights
FB Financial Corp's net interest income increased to $102.6 million from $99.5 million in the previous quarter. The net interest margin (NIM) improved to 3.57% from 3.42% in Q1 2024, driven by active management of deposit costs and higher loan yields. Noninterest income rose to $25.6 million, significantly up from $8.0 million in the previous quarter.
Balance Sheet and Cash Flow
The company ended Q2 2024 with loans held for investment (HFI) of $9.31 billion, slightly up from $9.29 billion in the previous quarter. Total deposits were $10.47 billion, a slight decrease from $10.50 billion in Q1 2024. The book value per common share increased to $32.17, and the tangible book value per common share rose to $26.82, representing a 9.36% annualized increase from the previous quarter.
Commentary and Analysis
"Our results for the quarter reflect the Company's recurring themes of a fortress balance sheet and increasing profitability. Our capital and loan loss reserves are very strong and we intentionally maintain low leverage positions, giving us capacity for growth opportunities," said President and CEO Christopher T. Holmes.
FB Financial Corp's performance in Q2 2024 demonstrates its ability to manage its balance sheet effectively while maintaining profitability. The increase in net interest margin and net income highlights the company's strong financial health and strategic management.
Conclusion
FB Financial Corp's Q2 2024 earnings report showcases a robust financial performance, with significant improvements in net income, net interest margin, and overall profitability. These results position the company well for future growth and stability, making it an attractive option for value investors.
Explore the complete 8-K earnings release (here) from FB Financial Corp for further details.
