FB Financial Corp (NYSE:FBK), parent company of FirstBank, stock fell 2.56% (As on April 18, 11:06:32 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 23. FBK has reported net income of $36.4 million for the first quarter of 2023. Net interest margin (“NIM”) was 3.51% for the first quarter compared to 3.78% and 3.04% in the fourth and first quarters of 2022, respectively.

Moreover, the Company reported loan balances (“HFI”) of $9.37 billion at the end of the first quarter of 2023, an increase of $67.8 million, or 2.96% annualized, from the end of the previous quarter. The contractual yield on loans increased to 5.90% in the first quarter of 2023 from 5.45% in the previous quarter. Total deposits increased by $327.1 million in the first quarter to $11.18 billion. The increase in total deposits was driven by an increase in public funds of $313.2 million. The Company’s total cost of deposits increased to 1.94% during the quarter, and the cost of interest-bearing deposits increased to 2.53%. Noninterest-bearing deposits decreased during the first quarter of 2023 to $2.49 billion from $2.68 billion as of the end of 2022. Additionally, Federal Home Loan Bank advances with an average interest rate of 4.89% were paid down by $50.0 million during the quarter. The Company’s net interest income on a tax equivalent basis decreased to $104.5 million in the first quarter from $111.3 million in the prior quarter. The decrease was primarily related to higher cost of deposits partially driven by a shift from noninterest-bearing to interest-bearing deposits, which resulted in an increase in interest expense of $21.4 million.

Furthermore, Mortgage banking income increased to $12.1 million in the first quarter of 2023, compared to $9.1 million and $29.5 million in the fourth and first quarters of 2022, respectively. Interest rate lock commitment volume during the same periods totaled $375.0 million compared to $281.7 million and $1.31 billion, respectively.

FBK in the first quarter of FY 23 has reported the adjusted earnings per share of 76 cents, beating the analysts’ estimates for the adjusted earnings per share of 74 cents, according to the Zacks Investment Research. The company had reported the adjusted revenue of $127.2 million in the first quarter of FY 23, missing the analysts’ estimates for revenue of $131.7 million. Nonperforming assets as a percentage of total assets showed an improvement in the first quarter of 2023 to 0.61% compared to 0.68% at the end of 2022.