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Yahoo
4 days ago
- Business
- Yahoo
FB Financial Corp (FBK) Q2 2025 Earnings Call Highlights: Strong Core Earnings Amid One-Time Losses
EPS: Reported EPS of $0.06; adjusted EPS of $0.88. Net Income: $2.9 million on a reported basis; $40.8 million on an adjusted basis. Net Interest Income: $111.4 million, a 3.5% increase from the prior quarter. Net Interest Margin: Expanded by 13 basis points to 3.68%. Non-Interest Income: Loss of $34.6 million due to a $60 million securities trade. Loan Growth: Annualized rate of 4.2% for the quarter; 5.6% for the first six months. Deposit Growth: Annualized rate of 7.2% for the quarter; 3.4% for the first six months. Non-Interest Expense: $81.3 million reported; $78.5 million on an adjusted basis. Efficiency Ratio: Improved to 56.9% from 59.9% last quarter. Provision Expense: $5.3 million for the quarter. Allowance for Loan Losses: $149 million or 1.51% of loans held for investment. Net Charge-Offs: $481,000, or an annualized rate of 2 basis points. Tax Benefit: One-time tax benefit of approximately $10.7 million. Warning! GuruFocus has detected 2 Warning Sign with FBK. Release Date: July 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FB Financial Corp (NYSE:FBK) reported an adjusted EPS of $0.88, indicating strong core earnings despite one-time losses. The merger with Southern States was executed swiftly, with regulatory approval and legal closure achieved within 90 days. FB Financial Corp (NYSE:FBK) demonstrated a compound annual growth rate of 12.2% in tangible book value per share since its IPO. The company achieved a pre-tax pre-provision net revenue of $58.6 million, reflecting a PPNR ROA of 1.81%. Loan and deposit growth were recorded at annualized rates of 4.2% and 7.2%, respectively, showcasing solid balance sheet expansion. FB Financial Corp (NYSE:FBK) reported a significant pre-tax loss of $60 million from a securities transaction, impacting GAAP results. Net income on a reported basis was only $2.9 million, highlighting the impact of one-time losses. Non-performing loan balances increased due to three large credits migrating into that classification. The company faced unexpected macroeconomic headwinds, causing some pipeline deals to be delayed. Provision expense for the quarter was $5.3 million, driven by loan growth and updated forecast assumptions. Q: Can you elaborate on the margin guidance of [370 to 380] and the impact of the Southern States Bank (SSBK) merger on the balance sheet? A: Michael Mettee, CFO, explained that they are bringing over virtually no securities from SSBK, focusing instead on reducing borrowings and supporting loan growth. The investment portfolio from SSBK had a yield of around [440], which aligns with cash, allowing for capital optimization. Q: What is the outlook for loan growth, and how does the current pipeline look? A: Christopher Holmes, CEO, stated that they expect mid- to high-single-digit growth. Some credits expected to close in Q2 were delayed, but they remain optimistic about customer activity and project continuations. Travis Edmondson, Chief Banking Officer, added that while there were unexpected payoffs, the pipeline remains strong. Q: Can you provide more details on the mortgage banking provision and the change in the allowance for credit losses (ACL)? A: Michael Mettee, CFO, noted that the new allowance model increased granularity, particularly for high LTV residential mortgages. The provision was influenced by flat home price appreciation and increased unemployment forecasts, affecting reserve levels. Q: What are your thoughts on future M&A activity and the size of potential deals? A: Christopher Holmes, CEO, expressed optimism about M&A opportunities, particularly in the $3 billion to $7 billion asset range. The recent Southern States merger provides scale, and they are well-positioned to capitalize on upstream M&A activity in their markets. Q: How are you approaching organic growth and hiring in light of potential upstream M&A activity? A: Christopher Holmes, CEO, emphasized their focus on recruiting talented professionals to capitalize on market disruptions. Travis Edmondson, Chief Banking Officer, mentioned hiring four new revenue producers in Q2, highlighting their commitment to growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
5 days ago
- Business
- Zawya
Saudi Azm, Obeikan Glass shares to stop trading on Nomu ahead of Main Market transfer
Software development firm Saudi Azm for Communication and Information Technology Co., along with Obeikan Glass Co., will cease trading on the kingdom's parallel market Nomu from July 15 to make a switch to the Tadawul Main Market, following regulatory approval. Saudi Exchange has confirmed the shares will cease trading for five days in order to complete the transfer procedures, following which a listing date will be announced. Saudi Azm will transfer with an authorised capital of 30 million riyals ($8 million) and 60 million shares, while Obeikan Glass will move with an authorised capital of SAR 320 million and 32 million shares. Saudi Azm's and Obeikan Glass' move to TASI (main market) comes six months after the Saudi Exchange had rejected the requests on December 31, following the two companies failing to meet all transition requirements stipulated in the listing rules. In April 2024, Saudi Azm first announced it had received board approval to transfer its shares to TASI and had appointed Al Rajhi Capital as a financial advisor to handle the transaction. Meanwhile, Obeikan Glass, one of the largest float glass manufacturers in Saudi, had received board approval in December 2023 to transfer its shares from Nomu to TASI. (Writing by Bindu Rai, editing by Brinda Darasha)
