FB Financial Corporation has released its financial results for the first quarter of 2025, revealing a strategic focus on optimizing its balance sheet and managing costs effectively. The corporation maintained total deposits at $11.20 billion, showing minimal fluctuation compared to the previous quarter's $11.21 billion. Additionally, the cost of deposits saw a notable decrease from 2.70% in the fourth quarter of 2024 to 2.54% in the recent period. This reduction was largely due to efforts to decrease brokered deposits and eliminate higher-cost deposits from the balance sheet. Furthermore, noninterest-bearing deposits increased slightly from $2.12 billion to $2.16 billion over the same period.
During the first quarter, FB Financial Corporation reported net interest income on a tax-equivalent basis of $108.4 million, representing a slight decline from $109.0 million in the prior quarter. This change was primarily attributed to fewer days within the reporting period. The net interest margin (NIM) improved to 3.55% for the first quarter, up from 3.50% in the previous quarter. This improvement was driven by a significant decrease in rates paid on interest-bearing deposit balances, which fell by 24 basis points, while yields on earning assets decreased by only 10 basis points.
The company also highlighted its continued progress in credit quality, capital strength, and strategic initiatives such as mergers and acquisitions. These elements underscored the corporation's readiness to navigate current economic uncertainties while positioning itself for future growth opportunities.
In the first quarter of 2025, FB Financial Corporation strategically reduced noninterest expenses to manage operational costs more effectively. Core noninterest expense amounted to $79.1 million, reflecting an increase from $72.7 million in the prior quarter, primarily due to performance-based compensation adjustments and seasonal factors. Despite this rise, the company's core efficiency ratio stood at 59.9%, indicating a slight uptick compared to 54.6% in the previous quarter but still demonstrating strong operational efficiency.
Credit quality remained robust, with provision expenses totaling $1.9 million related to loans held-for-investment (HFI) and $386 thousand for unfunded loan commitments. The allowance for credit losses on loans HFI reached $150.5 million, or 1.54% of loans HFI, marking stability compared to the prior quarter. Net charge-offs were recorded at $3.3 million, equating to annualized net charge-offs of 0.14% of average loans HFI, significantly lower than the previous quarter's 0.47%.
Capital management remained a priority, evidenced by the company's preliminary total risk-based capital ratio of 15.2%, common equity tier 1 ratio of 12.8%, and tangible common equity to tangible assets ratio of 10.5%. During the quarter, FB Financial Corporation repurchased 208,680 shares, reinforcing its commitment to shareholder value enhancement.
Looking ahead, FB Financial Corporation remains optimistic about its trajectory, emphasizing the momentum gained in key markets like Asheville, North Carolina, and Tuscaloosa, Alabama. With a solid foundation in place, the company is well-positioned to pursue organic growth and strategic opportunities, ensuring long-term success and resilience amidst evolving economic conditions.
As FB Financial Corporation concludes the first quarter of 2025, it reflects positively on its achievements and anticipates further advancements. By maintaining a strong capital position, optimizing the balance sheet, and executing strategic initiatives, the corporation aims to deliver sustained value to its customers and shareholders. The team's dedication and momentum promise a promising path forward, supported by a robust framework designed to navigate both opportunities and uncertainties effectively.