Q2 2024 FB Financial Corp Earnings Call Transcript
Key Points
- FB Financial Corp (FBK) reported an EPS of $0.85 and adjusted EPS of $0.84 for the quarter.
- The company has grown its tangible book value per share at a compound annual growth rate of 13.4% since its IPO.
- Adjusted return on average assets was 1.28%, and adjusted PPNR return on average assets was 1.7%.
- Net interest income grew by 3% from the prior quarter, with a margin expansion of 15 basis points to 3.57%.
- FB Financial Corp (FBK) has strong capital ratios, with a tangible common equity to tangible assets ratio of 10.2%, CET 1 ratio of 12.7%, and a total risk-based capital ratio of 15.1%.
- Net loan and deposit growth were flat for the quarter, with expectations of only muted growth in the low to mid-single digits for the second half of the year.
- The company experienced a decline in construction and development (C&D) and commercial real estate (CRE) concentrations.
- FB Financial Corp (FBK) had to add a $5 million specific reserve for a C&I credit, indicating some credit quality concerns.
- The cost of interest-bearing deposits increased slightly, which may pressure margins if interest rates rise further.
- Public funds exposure remains a concern, with a significant portion of these funds being rate-sensitive and potentially volatile.
Good morning, and welcome to the FB Financial Corporation's second quarter 2024 earnings conference call. Hosting the call today from FB Financial are Mr. Chris Holmes, President and Chief Executive Officer; and Mr. Michael Mettee, Chief Financial Officer, also joining the call for the question and answer session to 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.
At this time, all participants have been placed in a listen-only mode and the call will open for questions after the presentation. During the presentation, FB Financial may take
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