The following is a summary of the FB Financial Corporation (FBK) Q1 2024 Earnings Call Transcript:
Financial Performance:
FB Financial reported Q1 EPS of $0.59 and an adjusted EPS of $0.85.
The company showed a compound annual growth rate of 13.5% in their tangible book value per share since their IPO.
An adjusted return on average assets of 1.27%, adjusted PPNR return on average assets of 1.63%, and a growth of adjusted EPS by 10% compared to Q4 2023 and 12% year-on-year were reported.
Capital ratios have improved, with a tangible common equity to tangible assets ratio of 10% and a total risk-based capital ratio of 15%.
The net interest margin remained steady at 3.42%.
The core banking segment expense was $59.8 million for the quarter.
The allowance for credit losses increased by 3 basis points to 1.63%.
Business Progress:
FB Financial is working towards their goal of peer-leading financial performance, strategically hiring new talent, and looking to effectively deploy capital for long-term shareholder value.
Growth target for the year is mid-single-digit organic loan growth due to confidence in the economic health of their footprint.
The company is moderating its construction and CRE concentration ratios and focusing more on operating accounts C&I relationships.
They executed a capital optimization transaction of selling $200 million securities and reinvesting the proceeds, with more such deals possible in the future based on profitable opportunities.
The company plans to return to its historical organic growth target of 10% to 12% in 2025.
In terms of M&A, culture fit would be their primary consideration, along with significant deposit bases, especially retail. They are open to expansion in both metropolitan and minor markets.
More details: FB Financial IR
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