FB Financial Corp (NYSE:FBK), parent company of FirstBank, stock fell 4.81% (As on July 15, 11:11:47 AM UTC-4, Source: Google Finance) after the company reported second-quarter revenue that significantly missed analyst expectations, despite posting adjusted earnings that met estimates. The revenue shortfall occurred despite the company reporting loan growth and improved net interest margin. Loans held for investment grew to $9.87 billion, up 6.07% from $9.31 billion in the same quarter last year. Total deposits increased 8.94% YoY to $11.40 billion. Net interest margin improved to 3.68% from 3.57% in the year-ago quarter. The company’s core efficiency ratio improved to 56.9% compared to 58.3% in the second quarter of 2024. FB Financial maintained strong capital levels with a preliminary total risk-based capital ratio of 14.7%. On July 1, FB Financial completed its merger with Southern States Bancshares, adding approximately $2.87 billion in total assets, $2.32 billion in loans, and $2.47 billion in deposits. The company expects system conversions related to the transaction to be completed in the third quarter.

Moreover, in the second quarter, the Company recorded a provision reversal of $1.1 million related to loans HFI and a provision expense of $6.4 million related to unfunded loan commitments. The Company had an allowance for credit losses on loans HFI as of the end of the second quarter of 2025 of $148.9 million, representing 1.51% of loans HFI compared to $150.5 million, or 1.54% of loans HFI as of March 31, 2025. The Company maintained its strong capital position in the second quarter, resulting in a preliminary total risk-based capital ratio of 14.7%, preliminary common equity tier 1 ratio of 12.3% and tangible common equity to tangible assets ratio of 10.4%. The Company repurchased 811,704 shares during the quarter.

FBK in the second quarter of FY25 has reported the adjusted earnings per share of 88 cents, which matches the analysts’ estimates for the adjusted earnings per share of 88 cents. The company had reported the adjusted revenue growth of 35.9 percent to $76.86 million in the second quarter of FY25, missing the analysts’ estimates for revenue of $136.37 million.

FB Financial’s GAAP earnings were only $0.06 per share, with the difference primarily due to a $60.5 million loss from selling $266.5 million of low-yielding securities. The company indicated it plans to use proceeds from this transaction to redeem outstanding debt and originate higher-yielding loans.