third quarter of 2026
Filed Oct 13, 2026Reports Q3 Diluted EPS of $1.20, Adjusted Diluted EPS* of $1.21; Annualized Q3 Loan HFI and Deposit Growth of 9.7% and 8.8%, respectively
GAAP net income applicable to FB Financial Corporation rose to $60.2 million from $58.6 million in the prior quarter and $23.4 million in the third quarter of 2025, while loans HFI and total deposits increased on both reported comparison bases. The result also included NIM compression, lower noninterest income and higher noninterest expense sequentially.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended Sep 2026GAAP | $174.5M | – | – |
| Net interest income, three months ended Sep 2026GAAP | $149.9M | – | – |
| Net interest income (tax-equivalent basis), three months ended Sep 2026other | $150.8M | – | – |
| Net interest margin (tax-equivalent basis), three months ended Sep 2026other | 3.83 % | – | – |
| Total interest income, three months ended Sep 2026GAAP | $236.1M | – | – |
| Total interest expense, three months ended Sep 2026GAAP | $86.16M | – | – |
| Total noninterest income, three months ended Sep 2026GAAP | $24.54M | – | – |
| Adjusted noninterest income, three months ended Sep 2026non-GAAP | $24.8M | – | – |
| Mortgage banking income, three months ended Sep 2026GAAP | $9.4M | – | – |
| (Loss) gain from securities, net, three months ended Sep 2026GAAP | −$241K | – | – |
| Loss on sales or write-downs of premises and equipment, other real estate owned and other assets, net, three months ended Sep 2026GAAP | −$34K | – | – |
| Total noninterest expense, three months ended Sep 2026GAAP | $96.03M | – | – |
| Adjusted noninterest expense, three months ended Sep 2026non-GAAP | $95.3M | – | – |
| Loan subservicer transition costs, three months ended Sep 2026GAAP | $719K | – | – |
| (Gain) loss on lease terminations and other branch closure costs, three months ended Sep 2026GAAP | $ — | – | – |
| Merger and integration costs, three months ended Sep 2026GAAP | $ — | – | – |
| Efficiency ratio, three months ended Sep 2026other | 55.0 % | – | – |
| Adjusted efficiency ratio (tax-equivalent basis), three months ended Sep 2026non-GAAP | 54.3 % | – | – |
| Earnings before income taxes and provisions for credit losses, three months ended Sep 2026GAAP | $78.45M | – | – |
| Adjusted pre-tax, pre-provision net revenue, three months ended Sep 2026non-GAAP | $79.45M | – | – |
| Provisions for credit losses, three months ended Sep 2026GAAP | $1.42M | – | – |
| Income tax expense, three months ended Sep 2026GAAP | $16.83M | – | – |
| Effective tax rate, three months ended Sep 2026GAAP | 21.8 % | – | – |
| Net income applicable to FB Financial Corporation, three months ended Sep 2026GAAP | $60.20M | – | – |
| Adjusted net income, three months ended Sep 2026non-GAAP | $60.94M | – | – |
| Diluted net income per common share, three months ended Sep 2026GAAP | $ 1.20 | – | – |
| Adjusted diluted net income per common share, three months ended Sep 2026non-GAAP | 1.21 | – | – |
| Return on average assets, three months ended Sep 2026GAAP | 1.43 % | – | – |
| Return on average shareholders’ equity, three months ended Sep 2026GAAP | 12.2 % | – | – |
| Return on average tangible common equity, three months ended Sep 2026non-GAAP | 15.2 % | – | – |
| Adjusted return on average tangible common equity, three months ended Sep 2026non-GAAP | 15.7 % | – | – |
| Loans HFI, as of Sep 2026GAAP | $13.18B | 9.68 % annualized | 7.17 % |
| Loans held for sale, as of Sep 2026GAAP | $255.1M | 114.1 % annualized | 52.3 % |
| Total deposits, as of Sep 2026GAAP | $14.67B | 8.82 % annualized | 6.18 % |
| Interest-bearing deposits (non-brokered), as of Sep 2026GAAP | $11.26B | 13.7 % annualized | 5.90 % |
| Brokered deposits, as of Sep 2026GAAP | $626.7M | (34.3) % annualized | 28.5 % |
| Noninterest-bearing deposits, as of Sep 2026GAAP | $2.78B | 0.27 % annualized | 3.21 % |
| Total assets, as of Sep 2026GAAP | $17.09B | 7.04 % annualized | 5.28 % |
| Cash and cash equivalents, as of Sep 2026GAAP | $1.02B | – | – |
| Investment securities, at fair value, as of Sep 2026GAAP | $1.54B | 4.36 % annualized | 8.09 % |
| Borrowings, as of Sep 2026GAAP | $265.4M | (62.0) % annualized | 24.2 % |
| Total common shareholders’ equity, as of Sep 2026GAAP | $1.93B | (0.59) % annualized | (2.24) % |
| Book value per common share, as of Sep 2026GAAP | $ 39.11 | 3.69 % annualized | 5.70 % |
| Tangible book value per common share, as of Sep 2026non-GAAP | $ 31.50 | 3.94 % annualized | 5.60 % |
| Allowance for credit losses on loans HFI, as of Sep 2026GAAP | −$194.0M | (0.10) % annualized | 4.85 % |
| Allowance for credit losses on loans HFI as a percentage of loans HFI, as of Sep 2026GAAP | 1.47 % | – | – |
| Annualized net charge-offs as a percentage of average loans HFI, three months ended Sep 2026GAAP | 0.04 % | – | – |
| Nonperforming loans HFI as a percentage of loans HFI, as of Sep 2026GAAP | 1.18 % | – | – |
| Nonperforming assets as a percentage of total assets, as of Sep 2026GAAP | 1.13 % | – | – |
| Total risk-based capital, preliminary consolidated ratio, as of Sep 2026GAAP | 13.6 % | – | – |
| Common equity Tier 1, preliminary consolidated ratio, as of Sep 2026GAAP | 11.0 % | – | – |
| Tangible common equity to tangible assets, as of Sep 2026non-GAAP | 9.32 % | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Company repurchased 545,214 shares during the quarter.
- The Company repurchased $29.3 million of common stock during the quarter.
- The Company completed a $125.0 million subordinated debt issuance at a spread of 180 basis points over the five-year U.S. Treasury yield.
What drove it
- Net loan growth was driven by increases of $133.6 million in 1-to-4 family mortgage loans, $41.6 million in multi-family mortgage loans, $10.0 million in residential lines of credit, $91.6 million in commercial real estate loans, $19.5 million in construction loans and $19.0 million in consumer and other loans.
- The cost of interest-bearing deposits increased to 2.88% from 2.81% in the previous quarter, while total cost of deposits increased to 2.32% from 2.26%.
- NIM declined to 3.83% from 3.95%, reflecting higher funding costs relative to earning-asset yields; the decline included a 3 basis point impact from reversal of $1.0 million of previously accrued interest related to a nonaccrual loan.
- Provision expense included $1.2 million related to loans HFI and $0.3 million associated with unfunded loan commitments.
Concerns
- Mortgage banking income was $9.4 million, compared to $11.2 million in the prior quarter and $13.5 million in the third quarter of 2025.
- Total noninterest income was $ 24,540, compared to $ 25,780 in the prior quarter and $ 26,635 in the third quarter of 2025.
- Noninterest expense was $ 96,034, compared to $ 91,480 in the prior quarter, and the efficiency ratio was 55.0%, compared to 52.3%.
- Nonperforming loans HFI as a percentage of loans HFI were 1.18%, compared to 0.94% in the third quarter of 2025.
- Total common shareholders’ equity was $ 1,933,646, compared to $ 1,978,043 as of Sep 2025.
What to watch
- The trajectory of NIM following the third-quarter decline to 3.83% and higher deposit pricing.
- Loan and deposit production, including the mix between non-brokered, brokered and noninterest-bearing deposits.
- Mortgage banking income and its effect on noninterest income and operating leverage.
- Credit trends, particularly nonperforming loans HFI and provision expense.
- The deployment of proceeds from the $125.0 million subordinated debt issuance and future share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $ 1,017,689 as of Sep 2026, compared to $ 1,112,357 as of Jun 2026 and $ 1,280,033 as of Sep 2025.
- Total assets were $ 17,093,991 as of Sep 2026, compared to $ 16,796,101 as of Jun 2026 and $ 16,236,459 as of Sep 2025.
- Loans HFI were $ 13,179,564 and total deposits were $ 14,665,996 as of Sep 2026.
- Borrowings were $ 265,390 as of Sep 2026, compared to $ 314,513 as of Jun 2026 and $ 213,638 as of Sep 2025.
- Total common shareholders’ equity was $ 1,933,646 as of Sep 2026.
Analysis
FB Financial reported third-quarter GAAP net income applicable to FB Financial Corporation of $ 60,202 and diluted net income per common share of $ 1.20. This compared with $ 58,649 and $ 1.13 in the prior quarter and $ 23,375 and $ 0.43 in the third quarter of 2025. Adjusted net income was $ 60,937 and adjusted diluted net income per common share was 1.21. GAAP ROAA was 1.43% and return on average shareholders’ equity was 12.2%.
Balance-sheet growth remained the central positive. Loans HFI reached $ 13,179,564, with a reported 9.68% annualized increase from Jun 2026 and a 7.17% increase from Sep 2025. Total deposits reached $ 14,665,996, up 8.82% annualized sequentially and 6.18% year over year. Loan expansion was led by residential real estate and commercial real estate lending. Brokered deposits declined sequentially while non-brokered interest-bearing deposits increased to $ 11,262,198.
Margin and fee-income pressure constrained the operating result. Tax-equivalent NIM was 3.83%, down from 3.95% in both comparison periods, as funding costs rose faster than earning-asset yields. The company said the NIM decline included a 3 basis point impact from the reversal of $1.0 million of previously accrued interest. Mortgage banking income fell to $9.4 million from $11.2 million sequentially and $13.5 million a year earlier. Total noninterest expense rose to $ 96,034 from $ 91,480 sequentially, and the efficiency ratio increased to 55.0% from 52.3%.
Credit costs improved markedly from the prior quarter and prior year. Provisions for credit losses were $ 1,424, compared with $ 10,116 in Jun 2026 and $ 34,417 in Sep 2025, while annualized net charge-offs as a percentage of average loans HFI were 0.04%. Credit-quality watchpoints remain nonperforming loans HFI at 1.18% of loans HFI versus 0.94% a year ago. The allowance for credit losses on loans HFI was $ (193,960), or 1.47% of loans HFI.
Capital actions combined debt issuance and repurchases. The company completed a $125.0 million subordinated debt issuance and repurchased $29.3 million of common stock, representing 545,214 shares. Preliminary total risk-based capital was 13.6% and preliminary common equity Tier 1 was 11.0%. No quantitative forward guidance was provided in the release, leaving subsequent margin, deposit-cost, mortgage banking and expense trends as the principal reported items to monitor.
Management, verbatim
Our results reflect continued organic growth momentum and solid profitability metrics. Annualized loan growth (HFI) was 9.68% for the quarter, annualized client deposit growth was 11.0%, and annualized total deposit growth was 8.82% when we net out the decline in brokered deposits.
Christopher T. Holmes, President and Chief Executive Officer
The third quarter reflected continued momentum in loan and deposit production and meaningful balance sheet growth. Operating leverage was impacted by lower mortgage banking profitability, margin pressure and our continued investments in growth initiatives.
Michael Mettee, Chief Financial Officer and Chief Operating Officer
Overall credit performance remained strong during the third quarter, with stable asset quality metrics and low net charge-offs.
Christopher T. Holmes, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward quantitative guidance was not provided.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend amount or declaration was not reported.
- Operating-segment revenue was not reported.
- A consolidated cash flow statement was not provided.
- A full non-GAAP reconciliation was referenced in Exhibit 99.2 but was not included in the filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.