FB Financial Corporation (FBK) Tops Q1 EPS by 7c, Revenues Beat

FB Financial Corporation (NYSE: FBK) reported Q1 EPS of $0.66, $0.07 better than the analyst estimate of $0.59. Revenue for the quarter came in at $82.06 million versus the consensus estimate of $79.77 million.

President and Chief Executive Officer, Christopher T. Holmes stated, “Our team continues delivering outstanding service to our clients while bringing new clients into FirstBank each day. As a result, during the first quarter, we continued to see strong loan and customer deposit growth of 13.2% and 16.5% annualized, respectively. While achieving this growth, we also remained focused on profitability and saw our net interest margin increase by 11 basis points from the previous quarter.”

Holmes continued, “In early April we announced the restructuring of our mortgage operations and plans to sell our third party origination (‘TPO’) and correspondent channels. We also completed the Atlantic Capital branch acquisition on April 5, 2019 which added approximately $165 million of liquidity to our balance sheet. We have completed the system conversions and branch consolidations and are excited about the customers and teams we added in East Tennessee and North Georgia. With our first quarter performance, mortgage restructuring, and Atlantic Capital branch acquisition, we are excited and optimistic about the outlook for the remainder of the year.”

Holmes commented, “With the exit of the TPO and correspondent channels, we are focusing our efforts and resources on the retail and consumer direct origination channels. These origination channels are well aligned with our strategic plan and provide more consistent and predictable financial results than wholesale origination channels.”

Capital Positioned for Growth

Chief Financial Officer, James R. Gordon stated, “Noninterest expenses remained stable within the Banking segment. Our core efficiency ratio was 64.9%, driven by our Banking segment core efficiency ratio of 54.7% compared to 57.9% in the first quarter of 2018.”

“Our earnings continue to drive strong capital levels capable of sustaining our growth, including the completed Atlantic Capital branch acquisition after quarter end. Our tangible common equity to tangible assets of 10.5% and per share growth in tangible book value of 18.3% year-over-year easily accommodate our quarterly cash dividend of eight cents per share. The deployment of excess capital through the completed branch acquisition will improve our returns on equity and tangible equity in future periods,” commented Gordon.

Summary

“Overall, our Company continues to capitalize on strong momentum by continuing to deliver solid organic growth and profitability while being opportunistic on the acquisition front. We remain committed to helping our customers and associates achieve their goals while providing shareholders outstanding returns,” Holmes concluded.

For earnings history and earnings-related data on FB Financial Corporation (FBK) click here.

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