FB Financial (US:FBK)2023-05-07 16:00Financial Performance - Net income applicable to FB Financial Corporation for Q1 2023 was $36,381 thousand, a slight increase from $35,236 thousand in Q1 2022, reflecting a growth of 3.25%[14] - Earnings per share (EPS) for Q1 2023 was $0.78, compared to $0.74 in Q1 2022, indicating a 5.41% increase[14] - Comprehensive income for Q1 2023 was $56,248 thousand, compared to a loss of $42,166 thousand in Q1 2022, showing a significant turnaround[15] - Net income attributable to FB Financial Corporation for Q1 2023 was $36,381,000, a 3.3% increase from $35,236,000 in Q1 2022[19] - For the three months ended March 31, 2023, FB Financial Corporation reported a net income of $36,381,000, an increase from $35,236,000 in the same period of 2022, representing a growth of 3.3%[28] Asset and Deposit Growth - Total assets increased to $13,101,147 thousand as of March 31, 2023, compared to $12,847,756 thousand at December 31, 2022, reflecting a growth of 1.97%[13] - Total deposits rose to $11,182,915 thousand in Q1 2023, compared to $10,855,834 thousand in Q1 2022, marking an increase of 3.01%[13] - Cash and cash equivalents at the end of Q1 2023 were $1,319,951,000, compared to $1,027,052,000 at the beginning of the period, reflecting a net change of $292,899,000[19] - The net increase in demand deposits for Q1 2023 was $251,069,000, compared to $238,893,000 in Q1 2022[19] Income and Expense Analysis - Net interest income for Q1 2023 was $103,660 thousand, up from $88,182 thousand in Q1 2022, representing a year-over-year increase of 17.5%[14] - Noninterest income decreased to $23,349 thousand in Q1 2023 from $41,392 thousand in Q1 2022, a decline of 43.6%[14] - The company reported a net unrealized gain in available-for-sale securities of $20,064 thousand for Q1 2023, contrasting with a loss of $78,175 thousand in Q1 2022[15] - The total interest expense on borrowings for the three months ended March 31, 2023, was $(760), compared to income of $162 for the same period in 2022, resulting in a total interest expense of $(2,268) for the current period[124] Credit Losses and Provisions - The provision for credit losses was $4,997 thousand in Q1 2023, compared to a reversal of $6,129 thousand in Q1 2022, indicating a shift in credit loss expectations[14] - The allowance for credit losses increased to $138,809 thousand as of March 31, 2023, from $134,192 thousand at December 31, 2022[13] - The company reported a provision for credit losses of $4,997,000 in Q1 2023, compared to a reversal of $6,129,000 in Q1 2022[19] - The ending balance of loans charged off for the three months ended March 31, 2023, was $(767,000), compared to $(579,000) for the same period in 2022[62] Loan Portfolio and Quality - Gross loans outstanding reached $9,365,996 as of March 31, 2023, compared to $9,298,212 as of December 31, 2022, indicating a growth of approximately 0.73%[50] - The total amount of residential real estate loans was $1,562,503,000, with performing loans at $551,997,000 and nonperforming loans at $1,945,000[75] - The total amount of commercial and industrial loans was $1,671,398,000, with nonaccrual loans at $2,413,000[77] - The total classified loans for commercial and industrial increased to $457,000 from $2,770 in the previous year, indicating a significant rise in classified loans[69] Capital and Equity - As of March 31, 2023, FB Financial Corporation's total capital to risk-weighted assets ratio was 13.6%, exceeding the minimum capital adequacy requirement of 10.5%[160] - The Tier 1 capital to risk-weighted assets ratio for FB Financial Corporation was 11.6% as of March 31, 2023, above the required minimum of 8.5%[160] - Total common stock equity decreased to $1,369,696,000 as of March 31, 2023, down from $1,432,695,000 at the end of 2021[17] Market and Economic Factors - The company actively monitors and manages its interest rate risk exposure, which significantly impacts financial results[351] - As of March 31, 2023, a 400 basis point increase in interest rates would result in a 17.9% increase in net interest income, compared to a 20.6% increase as of December 31, 2022[355] - The economic value of equity (EVE) would decrease by 12.8% with a 400 basis point increase in interest rates as of March 31, 2023, compared to a 9.90% decrease as of December 31, 2022[355] Stock and Compensation - The total fair value of restricted stock units vested and released was $4,591 thousand for Q1 2023, compared to $3,397 thousand for Q1 2022, indicating an increase of approximately 35.2%[164] - The compensation cost related to stock grants and vesting of restricted stock units was $1,706 thousand for Q1 2023, down from $1,856 thousand in Q1 2022, a decrease of about 8.1%[165] - The employee stock purchase plan generated proceeds of $305 thousand from the issuance of 8,214 shares during Q1 2023, compared to $588 thousand from 15,152 shares in Q1 2022[169]