FBK · FB Financial Corporation

FB Financial’s Q1 2026 results reflect disciplined execution amid evolving rate dynamics: net income rose 46.1% year-over-year to $57.5 million, with diluted EPS of $1.10 (GAAP) and $1.12 (Non-GAAP). The increase was underpinned by broad-based balance sheet growth—loans HFI expanded 28.0% year-over-year to $12.50 billion, and total deposits grew 25.7% y/y to $14.08 billion—while the adjusted efficiency ratio improved to 54.3%, down from 56.3% in Q4 2025, reflecting normalized incentive compensation and lower merger-related expenses. Net interest margin declined modestly to 3.94% (from 3.98% q/q), driven primarily by lower loan yields following late-2025 federal funds rate cuts, though this pressure was partially offset by a 13-basis-point reduction in total deposit cost (to 2.27%) and lower funding costs overall. Management highlighted 'measured balance sheet growth' and 'repricing momentum' as key enablers of margin resilience. Credit quality remained robust: the allowance for credit losses stood at 1.49% of loans HFI, net charge-offs were low at 0.11% annualized, and nonperforming loans edged down to 0.96% of loans HFI. Capital strength was sustained—tangible common equity to tangible assets held at 9.91%, CET1 at 11.5%, and total risk-based capital at 13.4% (preliminary)—supporting both organic growth and opportunistic share repurchases of 426,983 shares. CEO Holmes emphasized the confluence of top-tier customer satisfaction (JD Power #1 Retail Banking in South Central Region), solid financial performance, and favorable regional economics as foundational to long-term shareholder value creation. No forward guidance was provided beyond commentary on active pipelines and optimism about economic conditions in the footprint.