FB Financial Reports Strong Second Quarter 2026 Results Driven by Robust Loan Growth, Stable Margins, and Disciplined Capital Management
FB Financial Corporation (NYSE: FBK), the parent company of FirstBank, delivered another quarter of solid financial performance during the second quarter of 2026, reporting higher earnings, continued balance sheet expansion, and strong organic growth across its lending and deposit franchises. The company demonstrated resilience amid an evolving banking environment by combining double-digit loan growth, stable net interest margins, improving operational efficiency, and prudent capital deployment, reinforcing its position as one of the leading regional banking institutions in the southeastern United States.
The company’s second-quarter results highlight continued momentum in its core banking operations, supported by healthy customer demand for loans, sustained deposit growth, disciplined expense management, and a strong capital base. Management emphasized that the institution remains well positioned to continue delivering long-term value for customers, communities, and shareholders throughout the remainder of 2026.
Earnings Continue to Improve
FB Financial reported net income of $58.6 million, equal to $1.13 per diluted common share, during the second quarter of 2026. The results represented another sequential improvement from $1.10 per diluted share recorded during the first quarter of the year and marked a dramatic recovery compared with $0.06 per diluted share reported during the second quarter of 2025.
Excluding selected non-recurring items, adjusted net income reached $58.9 million, or $1.14 per diluted common share, compared with adjusted earnings of $1.12 per diluted share during the previous quarter and $0.88 per diluted share one year earlier.
The continued improvement reflects stronger core banking performance rather than one-time accounting gains, illustrating the company’s ability to generate sustainable earnings through traditional banking activities.
Equally significant was the company’s adjusted pre-tax pre-provision net revenue (PPNR), a widely followed measure of core operating profitability before loan loss provisions and taxes. Adjusted PPNR increased to $83.6 million, representing a 6.9% increase from the first quarter and an impressive 42.6% improvement compared with the same period in 2025.
These results demonstrate that FirstBank continues to expand its earnings capacity while maintaining operational discipline despite ongoing competitive pressures across the banking industry.
Strong Organic Loan Growth Drives Expansion
One of the defining highlights of the quarter was continued expansion of the company’s loan portfolio.
Loans held for investment (HFI) reached $12.87 billion at June 30, 2026, increasing from $12.50 billion at the end of the previous quarter. On an annualized basis, quarterly loan growth reached 11.6%, while year-over-year loan growth climbed an impressive 30.3% from $9.87 billion recorded one year earlier.
Growth occurred across several important lending categories.
Commercial real estate lending remained the largest contributor, increasing by approximately $195 million during the quarter. Residential real estate lending also experienced healthy expansion, rising by $146.5 million.
Commercial and industrial lending continued to strengthen, adding $20.6 million, while consumer lending contributed an additional $18.6 million.
Construction lending declined modestly by approximately $19 million, reflecting portfolio management decisions rather than weakening loan demand.
Importantly, the contractual yield on loans remained stable at 6.22%, demonstrating the bank’s ability to preserve attractive lending spreads while expanding its portfolio.
Deposit Franchise Continues to Strengthen
Customer deposits also continued to grow during the quarter, providing stable funding for continued lending expansion.
Total deposits increased to $14.35 billion, compared with $14.08 billion at the conclusion of the first quarter. The quarterly increase represents annualized growth of approximately 7.7%, while deposits expanded 25.8% compared with the second quarter of 2025.
One of the strongest indicators of customer relationship quality was continued growth in noninterest-bearing deposits.
These deposits increased to $2.78 billion, rising from $2.66 billion during the previous quarter, representing annualized growth of nearly 17%.
Interest-bearing deposits also expanded steadily, reaching approximately $10.89 billion.
Brokered deposits increased during the quarter to $685.9 million, providing additional liquidity to support ongoing lending opportunities.
Management noted that overall funding costs remained well controlled.
Although the average cost of interest-bearing deposits increased only slightly from 2.80% to 2.81%, the company’s total cost of deposits actually declined marginally to 2.26%, benefiting from improved deposit mix and increased balances in lower-cost noninterest-bearing accounts.
Stable Net Interest Margin Supports Profitability
Despite ongoing competition for deposits throughout the banking industry, FB Financial maintained stable profitability within its balance sheet.
Net interest income increased to nearly $149 million, compared with approximately $146 million during the first quarter.
Meanwhile, the company’s tax-equivalent net interest margin (NIM) improved slightly to 3.95%, compared with 3.94% in the previous quarter and 3.68% during the second quarter of 2025.
Purchase accounting accretion contributed approximately 13 basis points to the quarterly margin.
The stability of the margin demonstrates effective asset-liability management despite changing interest rate conditions and ongoing funding competition.
President and Chief Executive Officer Christopher T. Holmes said the second quarter reflected the strength of the company’s franchise and disciplined execution.
He noted that the company’s strong organic growth, healthy earnings, and stable margins position FirstBank well for continued success throughout the second half of the year.
Holmes also emphasized that the company’s share repurchase activity demonstrates management’s confidence in the long-term value of the franchise.
Revenue Growth Continues
Total revenue during the quarter reached $174.8 million, modestly above the $172.3 million generated during the first quarter but dramatically higher than the $76.9 million reported during the second quarter of 2025.
The sharp year-over-year increase reflects normalization following last year’s investment securities losses as well as stronger recurring banking revenues.
Net interest income remained the primary contributor to total revenue, while noninterest income remained relatively stable.
Adjusted noninterest income totaled approximately $26.2 million, essentially unchanged from recent quarters, reflecting consistent fee generation across multiple banking businesses.
Mortgage banking income totaled $11.2 million, slightly below prior-quarter levels but continuing to represent an important contributor to diversified revenue.
Expense Management Improves Efficiency
While investing in growth initiatives, FB Financial continued exercising disciplined expense control.
Adjusted noninterest expense totaled approximately $91.5 million, declining from $93.7 million during the first quarter despite continued investments in personnel and technology.
The company’s adjusted efficiency ratio improved to 52.0%, compared with 54.3% during the previous quarter and 56.9% one year earlier.
An improving efficiency ratio indicates the company is generating more revenue relative to operating expenses, highlighting stronger operating leverage.
Chief Financial Officer Michael Mettee credited disciplined expense management alongside robust loan production for the improvement in operating performance.
According to Mettee, the company successfully generated positive operating leverage while maintaining expense discipline in an increasingly competitive labor market.
He added that management remains focused on consistent execution and sustainable earnings growth.
Balance Sheet Continues to Expand
FB Financial ended the quarter with total assets of $16.8 billion, representing an increase from $16.47 billion during the first quarter and $13.35 billion one year earlier.
Investment securities increased modestly to approximately $1.53 billion, while loans held for sale totaled approximately $198 million.
Book value per common share increased to $38.75, up from $38.39 during the prior quarter and $35.17 one year earlier.
Meanwhile, tangible book value per common share improved to $31.19, reflecting continued shareholder value creation.
Although common shareholders’ equity declined modestly during the quarter due largely to share repurchases, overall capital levels remained well above regulatory requirements.
Credit Quality Remains Sound
Credit quality remained healthy despite modest increases in nonperforming assets.
The company recorded total provision expense of approximately $10.1 million, including reserves related to funded loans and unfunded lending commitments.
Allowance for credit losses increased to $194 million, representing 1.51% of total loans, compared with 1.49% during the previous quarter.
The increase primarily reflected continued loan growth and additional reserves established on two individually assessed commercial lending relationships.
Net charge-offs remained exceptionally low at 0.06% of average loans, improving from 0.11% during the first quarter.
Management indicated that credit losses remain well below historical averages.
Nonperforming loans increased modestly to 1.17% of total loans, compared with 0.96% during the prior quarter.
Executives explained that the increase primarily involved three specific lending relationships, two of which are already supported by individual loan reserves while the third remains well collateralized.
Holmes stressed that underwriting discipline and prudent risk management continue producing a stable and high-quality loan portfolio.
Capital Position Remains Strong
FB Financial continued maintaining robust capital ratios throughout the quarter.
The company reported a preliminary:
- Total risk-based capital ratio of 12.9%
- Common Equity Tier 1 ratio of 11.0%
- Tangible common equity to tangible assets ratio of 9.49%
These capital levels provide significant flexibility to support future loan growth while returning capital to shareholders.
During the quarter, the company repurchased approximately 1.55 million shares, representing about 3.01% of outstanding common shares.
Management indicated that the repurchase program reflects confidence in the company’s intrinsic value while balancing investments in future growth opportunities.
Holmes stated that FirstBank’s balanced capital allocation strategy enables the institution to fund organic expansion, strengthen shareholder returns, and maintain financial flexibility under varying economic conditions.
As FB Financial enters the second half of 2026, the company appears well positioned to sustain its positive momentum. Strong loan demand, healthy deposit growth, stable funding costs, disciplined expense management, and a solid capital foundation provide a favorable backdrop for continued earnings expansion.
Although the banking industry continues to navigate economic uncertainty, evolving interest rate dynamics, and heightened competition, FirstBank’s diversified business model and disciplined execution continue to deliver consistent results.
With expanding customer relationships, improving operational efficiency, resilient credit performance, and a shareholder-friendly capital strategy, FB Financial remains focused on creating long-term value while supporting the financial needs of individuals, businesses, and communities across its growing regional footprint. The company’s second-quarter performance reinforces management’s confidence that FirstBank is well equipped to capitalize on future growth opportunities while maintaining prudent risk management and delivering sustainable profitability.
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