What Happened?

Shares of regional banking company FB Financial (NYSE: FBK) fell 6.4% in the afternoon session after the company reported second-quarter earnings that showed a significant drop in reported profit and a wide revenue miss against analyst expectations. On an adjusted basis, which excludes the one-time loss, earnings were $0.88 per share, narrowly missing the Wall Street consensus estimate of $0.89 per share. However, reported revenue of $76.86 million fell dramatically short of the $136.37 million analysts had forecast. 

Despite the headline misses, the company highlighted some operational strengths. It saw its net interest margin—a key measure of bank profitability—expand, and it recorded growth in both loans and customer deposits. FB Financial also completed its merger with Southern States Bancshares on July 1, which is expected to boost its asset base and create future efficiencies.

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What Is The Market Telling Us

FB Financial’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

FB Financial is down 9.1% since the beginning of the year, and at $45.93 per share, it is trading 20.4% below its 52-week high of $57.73 from November 2024. Investors who bought $1,000 worth of FB Financial’s shares 5 years ago would now be looking at an investment worth $1,896.

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