FB Financial Q3 adjusted EPS beats amid strong annualized loan, deposit growth
FB Financial Q3 adjusted EPS beats amid strong annualized loan, deposit growth
Overview
U.S. regional bank's Q3 revenue missed analyst expectations, adjusted EPS beat estimates
Adjusted net income for Q3 was a slight beat
Company saw strong annualized loan and deposit growth in Q3
Outlook
Company says recent debt issuance provides flexibility to support future growth
Company expects investments to support improved earnings growth and operating leverage over time
Company says focus remains on franchise growth and long-term shareholder value
Result Drivers
LOAN AND DEPOSIT GROWTH - Co attributed Q3 results to strong annualized loan and deposit growth
MARGIN PRESSURE - Co said lower net interest margin was due to higher funding costs and reversal of accrued interest on a nonaccrual loan
MORTGAGE BANKING PROFITABILITY - Co said operating leverage was affected by lower mortgage banking profitability and continued investment in growth initiatives
Company press release: ID:nBw7T3Z3Ma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $174.49 mln | $181.49 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $1.21 | $1.20 (7 Analysts) |
Q3 EPS |
| $1.20 |
|
Q3 Adjusted Net Income | Slight Beat* | $60.94 mln | $60.70 mln (6 Analysts) |
Q3 Net Income |
| $60.20 mln |
|
Q3 Net Interest Income |
| $149.95 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for FB Financial Corporation is $67.00, about 26.5% above its October 12 closing price of $52.95
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 13 - Unity Bancorp Q3 net income rises q-o-q on loan growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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FB Financial Q3 adjusted EPS beats amid strong annualized loan, deposit growth
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