FB Financial Corp (NYSE:FBK) stock fell 4.44% (As on October 18, 11:50:29 AM UTC-4, Source: Google Finance) after the company missed on both the top and bottom lines despite a boost from rising interest rates. Adjusted net income was $32.1 million compared to $0.64 in the previous quarter in the same quarter last year. Total deposits decreased by $537.2 million in the third quarter to $10.0 billion related to a $721.5 million decrease in public funds to $1.61 billion in the third quarter from $2.34 billion in the second quarter. The company reported provision for credit losses of $11.4 million compared with $12.3 million for the prior quarter and a mortgage segment loss of $3.7 million compared to a loss of $15.2 million for the prior quarter. Looking ahead, the company said that while it is hoping for a soft landing for the economy in the coming months, it was  “taking a prudent approach” with its balance sheet by limiting growth in certain assets, maintaining appropriate capital and reserve levels, managing liquidity, and preparing for a range of economic scenarios.

FBK in the third quarter of FY 22 has reported the adjusted earnings per share of 68 cents, missing the analysts’ estimates for the adjusted earnings per share of 80 cents. The company had reported the adjusted revenue of $134 million in the third quarter of FY 22, missing the analysts’ estimates for revenue of $140.2 million. The adjusted pre-tax, pre-provision earnings were $52.5 million. Reported results during the third quarter included a provision for credit losses of $11.4 million compared to $12.3 million for the prior quarter and a Mortgage segment loss of $3.7 million compared to a loss of $15.2 million for the prior quarter, or $2.7 million loss adjusted. The Company recorded growth in loans held for investment (“HFI”) of $480.7 million, or 22.1% annualized, and growth in noninterest-bearing deposits of $71.0 million, or 9.73% annualized, in the third quarter.

The Company’s NIM was 3.93% for the third quarter, compared to 3.52% for the second quarter. The NIM expanded as interest rates increased and loans held for investment as a percentage of deposits increased to 91.0%. During the third quarter, syndication fees, nonaccrual interest and amortization on purchased loans contributed 5 basis points to the NIM, compared to 6 basis points in the second quarter of 2022. Nonperforming assets (NPAs) as a percentage of total assets at the end of the third quarter was 0.62% compared to 0.46% as of the prior quarter-end.