FB Financial Corp (NYSE:FBK) stock rose 2.25% (As on July 19, 11:53:24 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 22. The Company reported loan balances (HFI) of $8.62 billion, an increase of $619.4 million, or 31.0% annualized, from the end of the previous quarter. The contractual yield on loans increased to 4.24% in the second quarter of 2022 from 4.12% in the first quarter of 2022. During the second quarter of 2022, total deposits decreased by $456.7 million to $10.54 billion and noninterest-bearing deposits (“NIBs”) increased by $107.8 million, or 15.5% annualized, both on a linked quarter basis reflecting the Company’s continued focus on growing noninterest-bearing deposits. NIBs have grown 16.5% over the prior twelve months. The Company’s total cost of deposits increased by 5 basis points to 0.25% and the cost of interest-bearing deposits increased to 0.33% from 0.27% in the previous quarter. The Company’s net interest income on a tax-equivalent basis for the second quarter of 2022 increased to $102.9 million from $88.9 million in the previous quarter. The Company’s NIM was 3.52% for the second quarter, compared to 3.04% for the first quarter. The NIM was impacted by the balance sheet mix as average interest-bearing deposits with other financial institutions declined to 9.23% of average earning assets for the second quarter of 2022 compared to 13.5% in the first quarter of 2022. During the second quarter, loan syndication fees, nonaccrual interest and amortization on purchased loans contributed 6 basis points to the NIM, compared to negatively impacting the NIM by 7 basis points in the first quarter of 2022.

FBK in the second quarter of FY 22 has reported the adjusted earnings per share of 64 cents, missing the analysts’ estimates for the adjusted earnings per share of 78 cents. The company had reported the adjusted revenue growth of 35.9 percent to $135.4 million in the second quarter of FY 22, missing the analysts’ estimates for revenue of $141.5 million. The Company recorded provisions for credit losses of $12.3 million in the second quarter of 2022, including a provision for credit losses on unfunded commitments of $4.1 million. The Company continues to maintain a strong balance sheet with an allowance for credit losses (“ACL”) of $126.3 million as of June 30, 2022, representing 1.46% of HFI loans compared with 1.50% as of March 31, 2022.