FB Financial Q2 revenue misses street estimates

Overview

• FB Financial Q2 revenue missed analyst expectations, per LSEG data

• FB Financial Q2 adjusted EPS met estimates, per LSEG data

• Company completed merger with Southern States Bancshares, enhancing scale and strategic flexibility

• Strategic sale of securities resulted in $60.5 mln GAAP loss

Outlook

• Company anticipates enhanced liquidity and margin from securities sale

• FB Financial expects stronger returns post Southern States merger

Result Drivers

• SECURITIES SALE - Strategic sale of $266.5 million in securities resulted in $60.5 million GAAP loss, aimed at enhancing liquidity and future margins

• LOAN AND DEPOSIT GROWTH - Growth in loans and deposits contributed to a healthy net interest margin, per CEO Christopher Holmes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 Corp is $58.00, about 16.9% above its July 11 closing price of $48.22

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw6dRhwqa