FB Financial Corporation (NYSE: FBK) has reported its financial results for the second quarter of 2024, showing positive changes in various key metrics. The company's net income for the quarter was $40.0 million, resulting in diluted earnings per share of $0.85, compared to $0.59 in the previous quarter and $0.75 in the second quarter of the previous year. Adjusted net income was $39.4 million, or $0.84 per diluted common share, which is a decrease from $0.85 in the previous quarter but an increase from $0.77 in the second quarter of last year.
The company's loans held for investment (HFI) remained relatively stable at $9.31 billion compared to the previous quarter, while deposits decreased to $10.47 billion from $10.50 billion in the previous quarter and $10.87 billion in the second quarter of 2023. Net interest margin (NIM) improved to 3.57% for the second quarter of 2024, up from 3.42% in the prior quarter and 3.40% in the second quarter of 2023.
The company's book value per common share increased to $32.17, representing a 7.90% rise from the previous quarter, and tangible book value per common share increased to $26.82, reflecting a 9.36% increase from the previous quarter.
In terms of the balance sheet, investment securities at fair value, loans held for sale, and noninterest-bearing deposits have all shown changes compared to the previous quarter and the same period last year. The company's total assets decreased slightly to $12.54 billion from the previous quarter and $12.89 billion from the second quarter of 2023.
The company reported a net interest income of $102.6 million for the second quarter of 2024, with NIM increasing to 3.57%, driven by the recent investment portfolio restructuring and active management of deposit costs. Noninterest income and noninterest expense also exhibited changes compared to the previous quarter and the second quarter of 2023.
Regarding credit quality, the company recorded a provision expense of $3.9 million related to loans HFI and a provision reversal of $1.7 million related to unfunded loan commitments, resulting in a net provision expense of $2.2 million. The company's capital strength was highlighted, with a total risk-based capital ratio of 15.1%, common equity tier 1 ratio of 12.7%, and tangible common equity to tangible assets ratio of 10.2%.
FB Financial Corporation's performance in key metrics, including net income, net interest margin, and return on assets, has shown improvement in the first half of 2024, positioning the company to continue creating shareholder value in the coming quarters and the longer term.
The company is set to host a conference call to discuss its financial results on July 16, 2024, at 8:00 a.m. (Central Time), providing an opportunity for stakeholders to gain deeper insights into the reported figures. Following these announcements, the company's shares moved 8.2%, and are now trading at a price of $46.31. Check out the company's full 8-K submission here.
