FB Financial Corporation (NYSE:FBK) reported third-quarter 2026 adjusted earnings per share of $1.21, matching analyst expectations, although revenue fell short of Wall Street forecasts.
The Nashville-based bank holding company generated quarterly revenue of $174.49 million, below the consensus estimate of $181.55 million. Despite the revenue shortfall, the figure represented a 0.4% increase from $173.88 million in the corresponding period of 2025.
Shares in FB Financial advanced 1.34% in pre-market trading following the earnings announcement.
The company reported higher profitability, continued growth in loans and deposits, and a substantial reduction in credit loss provisions compared with both the previous quarter and the same period last year.
However, its net interest margin narrowed as higher funding costs affected lending profitability.
FB Financial reported net income of $60.2 million for the third quarter, equivalent to $1.20 per diluted share.
This compared with diluted earnings of $0.43 per share in the third quarter of 2025.
On an adjusted basis, net income reached $60.9 million, or $1.21 per diluted share, compared with $1.07 per diluted share a year earlier.
The adjusted earnings figure was in line with analyst expectations.
Revenue increased modestly year on year but missed the market forecast by approximately $7.06 million.
The results indicate that FB Financial maintained earnings growth despite a relatively limited increase in quarterly revenue.
FB Financial continued to report growth in its lending operations during the quarter.
Loans held for investment reached $13.18 billion at the end of September, representing a 7.17% increase from the corresponding period of 2025.
Compared with the second quarter, the loan portfolio expanded at an annualised rate of 9.68%.
The growth reflects continued lending activity across the bank’s operations and contributed to the expansion of its balance sheet.
Loans held for investment generally represent credit facilities that a bank intends to retain rather than sell in the secondary market.
The company highlighted its lending performance as an important component of its organic growth strategy.
President and Chief Executive Officer Christopher T. Holmes said the results demonstrated continued business momentum alongside solid profitability.
“Our results reflect continued organic growth momentum and solid profitability metrics,” Holmes said.
Customer funding also increased during the third quarter, with total deposits reaching $14.67 billion.
The figure represented growth of 6.18% compared with the previous year and an annualised increase of 8.82% from the second quarter.
Holmes highlighted annualised client deposit growth of 11.0%, alongside the expansion in the company’s overall deposit base.
“Annualized loan growth (HFI) was 9.68% for the quarter, annualized client deposit growth was 11.0%, and annualized total deposit growth was 8.82% when we net out the decline in brokered deposits,” he said.
Brokered deposits are funds obtained through intermediaries rather than directly from customers.
Changes in the composition of a bank’s deposit base can affect its funding costs and overall profitability.
The continued expansion in client deposits provides FB Financial with additional funding to support lending activity.
Despite higher lending and deposit balances, FB Financial experienced pressure on its net interest margin during the quarter.
Net interest margin declined to 3.83%, compared with 3.95% in both the second quarter of 2026 and the third quarter of 2025.
The 12-basis-point reduction reflected higher funding costs.
Net interest margin measures the difference between interest income generated from assets such as loans and the interest expense associated with funding those assets, relative to average interest-earning assets.
The quarterly decline also included a three-basis-point impact from the reversal of $1.0 million in previously accrued interest on a nonaccrual loan.
A nonaccrual loan is generally a credit exposure for which the lender has stopped recognising interest income because collection is uncertain.
The margin contraction indicates that funding expenses remained a challenge despite continued balance sheet growth.
FB Financial reported a significant reduction in provision expense during the third quarter.
The company recorded provisions of $1.4 million, compared with $10.1 million in the previous quarter and $34.4 million in the third quarter of 2025.
Provision expense reflects amounts recognised to account for expected credit losses within a bank’s loan portfolio.
The lower quarterly charge contributed to the company’s improved profitability.
Net charge-offs represented 0.04% of average loans on an annualised basis, indicating a relatively low level of realised credit losses during the period.
However, nonperforming loans increased slightly as a proportion of total lending.
The nonperforming loan ratio reached 1.18%, compared with 1.17% in the second quarter and 0.94% a year earlier.
The increase suggests that some credit quality pressures remain, even as the bank reported lower provision expenses and limited net charge-offs.
Future credit performance will depend on borrower conditions, loan portfolio trends and broader economic developments.
FB Financial also undertook capital management activities during the quarter.
The company repurchased 545,214 shares, reducing the number of outstanding shares through its buyback activity.
Share repurchases can return capital to shareholders and may influence per-share financial measures, depending on the number of shares retired and the company’s earnings performance.
In addition, FB Financial completed a $125.0 million subordinated debt issuance.
The debt was priced at a spread of 180 basis points above the five-year US Treasury yield.
Subordinated debt ranks below senior obligations in the event of liquidation and can form part of a bank holding company’s broader funding and capital structure.
The issuance provides an additional source of financing, although the company did not specify the intended use of the proceeds in the reported announcement.
FB Financial’s third-quarter results presented a combination of earnings growth, expanding loan and deposit balances, and continued pressure on net interest margin.
Adjusted earnings met analyst forecasts, while revenue was approximately 3.9% below consensus expectations.
The bank’s profitability benefited from a substantial reduction in credit loss provisions, although its nonperforming loan ratio increased compared with the previous year.
The 1.34% pre-market share price increase suggested a positive initial market reaction despite the revenue miss.
For investors, the key areas to monitor include the sustainability of loan and deposit growth, changes in funding costs, net interest margin performance and developments in credit quality.
FB Financial’s latest results demonstrate continued balance sheet expansion, while highlighting the importance of managing funding expenses and maintaining asset quality as lending activity grows.
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