FB Financial, the parent company of FirstBank, saw a significant increase in its stock price after announcing a surge in profit for the second quarter of the year. Shares of FB Financial rose by 14% to reach $34.31 in post-market trading on Monday.
The bank holding company reported a net income of $35.3 million, or 75 cents per share, compared to $19.3 million, or 41 cents per share, for the same period last year. This impressive growth in profit can be attributed to a stronger capital base.
Although the total revenue for the quarter fell by 7.4% to $125.4 million, it slightly missed analysts’ expectations of $127.7 million, according to FactSet.
FB Financial ended the period with a common equity Tier 1 ratio of 11.7%, which is considered a crucial measure of balance-sheet strength. This ratio improved from 11.3% in the previous quarter, highlighting the company’s solid financial position.
Chief Executive Christopher Holmes expressed confidence in the company’s future prospects, stating, “Our strong capital base and ample reserve for credit losses give us flexibility in allocating capital and driving higher returns as we progress into the second half of 2023 and beyond.”
With these positive financial results, FB Financial is well-positioned for growth and success in the coming years.
