FB Financial Stock Sinks After-Hours Following Q3 Earnings: Here's What To Know

FB Financial Corp FBK shares are trading lower in Monday's after-hours session after the company reported third-quarter results.
What To Know: The company reported quarterly earnings of 71 cents per share, which beat the analyst consensus estimate of 69 cents, a 4.41% increase over earnings of 68 cents per share from the same period last year.

The company reported quarterly sales of $108.97 million, which missed the analyst consensus estimate of $122.89 million, an 18.67% decrease over sales of $133.98 million the same period last year.

Additionally, FB Financial's deposits were $10.64 billion as of Sept. 30, compared to $10.87 billion as of June 30, and $10.01 billion as of the same period last year.

"The Company had a successful quarter executing on strategic initiatives to enhance earnings and position for expected opportunities. Our balance sheet management in the second half of 2022 and during 2023 to ensure ample liquidity, stable funding and excess capital allows us to focus on improving earnings at this point in the interest rate cycle," said President and CEO Christopher T. Holmes.

"Near the end of the quarter, we sold $76.6 million of available-for-sale securities and reinvested the proceeds of that sale into higher-yielding securities, adding approximately 5% to the yield on those invested funds that will be accretive in the fourth quarter and future periods. We also had expense reductions during the quarter which will benefit earnings moving forward. There will likely be additional balance sheet enhancements and expense reductions in the fourth quarter, all of which improve our earnings profile and keep the Company favorably positioned for opportunities."

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FBK Price Action: Shares of FBK were down 4.61% at $26.89 in the after-hours session at the time of publication, according to Benzinga Pro.

Photo: Nattanan Kanchanaprat from Pixabay