FB Financial's Stellar Q4 Earnings: A Testament to Strong Operating Foundation and Local Market Authority Model
FB Financial Corporation's recent fourth-quarter 2024 earnings conference call offered a glimpse into the company's continued success, driven by its solid operating foundation and unique local market authority model. During the call, President and CEO Chris Holmes highlighted the company's impressive results, which included EPS of $0.81 and adjusted EPS of $0.85 per share for the quarter, as well as EPS of $2.48 or adjusted EPS of $3.40 on a full-year basis.
One of the key highlights from the quarter was FB Financial's ability to grow its tangible book value per share at a compound annual growth rate of 12.9% since its IPO in 2016, excluding the impact of AOCI. This impressive growth was driven by the company's focus on core banking relationships and balance sheet optimization, as well as its commitment to managing expenses effectively.
The company also reported a significant increase in full-year pretax pre-provision net revenue, with $158.7 million or $217.1 million on an adjusted basis representing a 20% year-over-year growth. This increase was fueled by the company's efforts to grow its core deposit balances and manage its expenses.
FB Financial's capital position remains strong, with a preliminary CET1 ratio of 12.8% and a primary total risk-based capital ratio of 15.2%. These numbers demonstrate the company's ability to maintain its earnings momentum while also prioritizing its capital position.
The company's unique local market authority model has been a key factor in its success, allowing it to offer a personalized community banking approach to customers while still having the size and resources to provide top-of-the-line services. This model is not only effective but also highly sought after by high-performing bankers in the region.
As Holmes noted during the call, FB Financial's geography presents an advantaged opportunity for organic growth in a wealth of attractive places nearby for de novo expansion. The Southeastern United States continues to experience growth, and FB Financial is well-positioned to take advantage of this trend.
The company's focus on its local market authority model has resulted in customer base growth and interest from high-performing bankers looking to join the franchise. This, coupled with its strong capital position and ability to maintain earnings momentum, makes FB Financial a compelling story for investors and industry observers alike.
