FB Financial Corp (NYSE:FBK) Beats Q3 2025 Earnings and Revenue Estimates

FB Financial Corp (NYSE:FBK) reported financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst expectations on both the top and bottom lines. The company's results were significantly influenced by its recent merger with Southern States Bancshares, which closed on July 1, 2025, contributing to substantial balance sheet growth and improved profitability metrics.

Earnings and Revenue Performance Versus Estimates

The company posted a strong quarter relative to Wall Street forecasts, with both earnings and revenue coming in ahead of consensus estimates.

• Earnings Per Share (EPS): The bank reported adjusted diluted earnings per share of $1.07. This comfortably surpassed the analyst estimate of $0.96.
• Revenue: Total revenue for the quarter was $173.9 million, exceeding the estimated $169.6 million.

This earnings beat represents a continuation of positive momentum, as the adjusted EPS of $1.07 also compares favorably to the $0.88 reported in the previous quarter and the $0.86 from the same period last year. The robust revenue generation was supported by a significant 38% sequential increase in adjusted pre-tax, pre-provision net revenue, which reached $81.0 million.

Market Reaction

Following the earnings release, the market reacted positively. In pre-market trading, FB Financial Corp's stock was up approximately 0.78%, indicating investor approval of the company's ability to exceed profit and revenue forecasts while successfully integrating a major acquisition.

Key Highlights from the Quarter

The third-quarter results were shaped by several critical developments beyond the headline earnings and revenue figures.

Balance Sheet Expansion and Margin Improvement The merger with Southern States was the primary driver behind a dramatic expansion of the balance sheet. Loans held for investment surged to $12.30 billion from $9.87 billion in the prior quarter, while deposits grew to $13.81 billion from $11.40 billion. This growth contributed to a enhanced net interest margin (NIM), which increased to 3.95% from 3.68% in Q2. Management cited strategic actions, including the merger, investment portfolio restructuring, and disciplined deposit cost management, as key factors behind the margin expansion.

Profitability and Credit Quality On a GAAP basis, net income was $23.4 million, or $0.43 per diluted share, a significant recovery from the $0.06 per share reported in the second quarter, which was impacted by securities losses. Credit quality remained stable, with minimal net charge-offs of 0.05% of average loans. However, the company recorded a substantial provision for credit losses of $34.4 million, a large portion of which was related to establishing initial reserves for the loans acquired in the Southern States merger.

Operational Efficiency The company's core efficiency ratio, a non-GAAP measure, improved to 53.3% from 56.9% in the previous quarter, indicating that the bank is achieving greater operational leverage despite the costs associated with integrating a larger organization.

Capital and Outlook FB Financial maintained a strong capital position, with a tangible common equity to tangible assets ratio of 10.1%. Looking ahead, the company did not provide a specific quantitative financial outlook in its press release. Analyst estimates for the next quarter (Q4 2025) project revenue of approximately $173.8 million and earnings to be reported in the future. The company expressed confidence in its momentum, with CEO Christopher Holmes stating, "We expect to carry momentum into the fourth quarter and beyond with a focus on driving performance and delivering results."

Conclusion

FB Financial Corp's third-quarter results demonstrate a successful navigation of its significant merger with Southern States. The company not only achieved substantial balance sheet growth but also translated that growth into enhanced profitability, beating earnings and revenue estimates. The improved net interest margin and efficiency ratio suggest the integration is yielding positive operational benefits. The positive pre-market stock movement reflects investor confidence in the company's strategic direction and its ability to deliver on its growth and profitability goals.

For a more detailed breakdown of past and future earnings estimates for FB Financial Corp, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice.