FB Financial reports Q2 2026 EPS of $1.13, 11.6% annualized loan growth, repurchases 3% of shares

FB Financial reported Q2 2026 net income of $58.6 million ($1.13 per diluted share), up from $57.5 million in Q1 2026. Revenue increased on loan growth and stable net interest margin of 3.95%. Pre-provision net revenue rose approximately 8% quarter-over-quarter. Provision expense reflected loan growth and increased reserves on two individually assessed loans.

Loans held for investment grew at an annualized rate of 11.6% in Q2 2026, reaching $12.9 billion, with key growth in CRE non-owner-occupied (+$147 million), residential real estate (+$146 million), and CRE owner-occupied (+$48 million). Deposits grew at an annualized rate of 7.70%, reaching $14.3 billion, with growth concentrated in the back half of the quarter.

The allowance for credit losses coverage ratio was 1.51% at quarter-end. Annualized net charge-offs remained low at 0.06%. The nonperforming asset ratio increased to 1.14%, driven by the migration of three lending relationships. Provision expense of $10.1 million was driven by loan growth and increased reserves on two individually assessed loans.

Net interest margin remained stable at 3.95% on a tax-equivalent basis in Q2 2026, unchanged from Q1 2026. Net interest income increased approximately $3 million quarter-over-quarter to $149.8 million, driven by loan growth and stable contractual loan rates, partially offset by lower cash balances and reduced loan accretion.

FB Financial reported net income of $58.6 million for Q2 2026, up 2% from Q1 2026's $57.5 million and substantially higher than Q2 2025's $2.9 million. Diluted earnings per share were $1.13, compared to $1.10 in Q1 2026 and $0.06 in Q2 2025. The year-over-year improvement reflects stronger net interest income and the absence of a $60.5 million securities loss recorded in Q2 2025.

The net interest margin (tax-equivalent basis) was 3.95% in Q2 2026, up 1 basis point from Q1 2026's 3.94% and 27 basis points higher than Q2 2025's 3.68%. Net interest income reached $149.0 million, up 2% quarter-over-quarter. The yield on interest-earning assets held steady at 6.07%, while the cost of interest-bearing liabilities rose slightly to 2.84% from 2.83%.

FB Financial recorded $10.1 million in total credit loss provisions for Q2 2026, comprising $9.7 million for loans held for investment and $0.5 million for unfunded commitments. This represents a significant increase from Q1 2026's $3.0 million provision. Net charge-offs were $2.0 million, or 0.06% of average loans annualized, down from 0.11% in Q1 2026. Nonperforming loans rose to 1.17% of total loans from 0.96% in Q1 2026.

Loans held for investment grew to $12.87 billion at June 30, 2026, up 2.9% from $12.50 billion at March 31, 2026 and 30.3% year-over-year. Total deposits increased to $14.35 billion, up 1.9% quarter-over-quarter and 25.8% year-over-year. The loan-to-deposit ratio was 89.7%, up from 88.8% in Q1 2026. Brokered deposits increased to $685.9 million from $574.2 million in the prior quarter.

FB Financial's tangible common equity to tangible assets ratio declined to 9.49% at June 30, 2026, from 9.91% at March 31, 2026. The Common Equity Tier 1 ratio decreased to 11.0% from 11.5%, and the Tier 1 leverage ratio fell to 10.1% from 10.4%. These declines reflect loan growth and share repurchases, as period-end shares outstanding decreased to 50.0 million from 51.4 million in the prior quarter.

FB Financial reported Q2 2026 net income of $58.6 million ($1.13 per diluted share), up from $1.10 in Q1 2026 and $0.06 in Q2 2025. Adjusted net income was $58.9 million ($1.14 per diluted share), reflecting sequential and year-over-year improvement. The company also reported adjusted pre-tax pre-provision net revenue of $83.6 million, up 6.94% from the prior quarter and 42.6% year-over-year.

The company reported strong organic growth with loans HFI reaching $12.87 billion (11.6% annualized increase from Q1 2026) and deposits of $14.35 billion (7.70% annualized increase from Q1 2026). Year-over-year, loans grew 30.3% and deposits grew 25.8%. Net interest margin was 3.95%, up from 3.94% in the prior quarter and 3.68% in Q2 2025.

FB Financial repurchased 1,546,707 shares during Q2 2026, representing 3.01% of shares outstanding. Management stated this reflects confidence in the long-term value of the franchise and a disciplined approach to capital deployment. The company maintained strong capital ratios with preliminary total risk-based capital of 12.9% and common equity tier 1 of 11.0%.

Net charge-offs remained low at 0.06% of average loans HFI, down from 0.11% in Q1 2026. However, nonperforming loans increased to 1.17% of total loans from 0.96% in the prior quarter, driven by three lending relationships that migrated to nonperforming status. The company recorded provision expense of $9.7 million for loans HFI and increased the allowance for credit losses to $194.0 million (1.51% of loans HFI).

The company improved its adjusted efficiency ratio to 52.0% in Q2 2026 from 54.3% in Q1 2026 and 56.9% in Q2 2025, reflecting disciplined expense management and positive operating leverage. Adjusted noninterest expense was $91.5 million, down from $93.7 million in the prior quarter.

FB Financial announced a conference call scheduled for July 14, 2026 to discuss second quarter 2026 financial results. The company made supplemental financial information and an earnings presentation available on its investor website on July 13, 2026.