Why FB Financial Shares Are Rising Today

FB Financial Corp FBK reported a Q2 core revenue of $125.7 million, which missed the consensus of $128.3 million. 

Adjusted EPS stood at $0.77, beating the consensus of $0.65.

In Q2, the net interest margin came in at 3.40%, decreasing from 3.52% in the prior year on lower loan balances.

The non-interest income stood at $23.8 million in Q2 vs. $33.2 million in the prior-year quarter, with higher interest rates continuing to weigh on mortgage origination volumes.

As of June 30, 2023, the company's deposits stood at $10.87 billion vs. $10.54 billion as of June 30, 2022.

Loans held for investment (HFI) came in at $9.33 billion in Q2 2023 compared to $8.62 billion a year ago.

As of Q2-end, allowance for credit losses on loans HFI stood at $140.7 million.

The company witnessed a net provision reversal of $1.1 million, with a provision reversal of $3.7 million on unfunded loan commitments.  

"We boosted our balance sheet strength during the quarter so the company is prepared regardless of whether the future brings challenges or opportunities. We continued reducing our exposure to public funds, enhancing our already diversified and granular deposit portfolio. We also reduced our exposure to commercial real estate, further strengthening our well-balanced loan portfolio. Additionally, our strong capital base and ample reserve for credit losses give us optionality in allocating capital and increasing returns as we move into the second half of 2023 and look forward to 2024." said Christopher T. Holmes, President and CEO.

Price Action: FBK shares are trading higher by 9.4% at $33.04 premarket on the last check Tuesday.