Q1 2024 FB Financial Corp Earnings Call Transcript
Key Points
- FB Financial reported EPS of $0.59 and adjusted EPS of $0.85, showing strong progress towards peer-leading financial performance.
- The company has grown its tangible book value per share at a compound annual growth rate of 13.5% since its IPO.
- FB Financial's adjusted return on average assets was 1.27%, and adjusted PPNR return on average assets was 1.63%, with adjusted earnings per share growing by 10% relative to the fourth quarter of 2023 and 12% relative to the year-ago quarter.
- The bank's capital ratios continue to improve, with a tangible common equity to tangible assets ratio of 10% and a total risk-based capital ratio of 15%.
- FB Financial's core efficiency ratio improved by over 500 basis points from the first quarter of last year, indicating operational performance and cohesiveness across the team.
- FB Financial experienced a $120 million contraction in loan balances during the quarter, driven by a decline in construction lending and a significant payoff from an SNC relationship.
- The net interest margin was steady but showed a slight decrease to 3.42% versus last quarter's 3.46%.
- Organic loan growth was missing from this quarter's performance, with only slight growth on the remainder of the portfolio around 2% annualized.
- The bank's construction and development concentration is at 83% and CRE concentration at 255%, both as a percent of risk-based capital, which may indicate a need to moderate these concentrations.
- FB Financial's mortgage segment, while solid, is subject to seasonal activity and interest rate environment fluctuations, with expectations of quarterly contributions in the $1 million to $2 million range.
Good morning and welcome to the FB Financial Corporation's first quarter 2024 earnings conference call. Hosting the call today from FB Financial are Chris Holmes, President and Chief Executive Officer; Mr. Michael Mettee, Chief Financial Officer. Also joining the call for the question-and-answer session is Mr. Travis Edmondson, Chief Banking Officer.
Please note FB Financial's earnings release, supplemental financial information and this morning's presentation are available on the investor relations page of the company's website at www.firstbankonline.com and on the Securities and Exchange Commission's website at www.sec.gov. Today's call is being recorded and will be available for replay on FB Financial's website approximately an hour after the conclusion of the call.
(Operator Instructions) During the presentation, FB Financial may make comments which constitute forward-looking statements under federal securities laws. Forward-looking statements are based
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