Shares of FB Financial Corp (FBK) tumbled 5.03% in after-hours trading on Monday following the release of the company's first quarter 2025 financial results. The stock's decline comes as the Nashville-based bank holding company reported revenue slightly below analyst expectations and showed an increase in expenses.
FB Financial reported first quarter revenue of $130.7 million, falling short of the $131.9 million forecast by analysts polled by FactSet. While the company's adjusted earnings per share of $0.85 met Wall Street expectations, investors appeared concerned about rising costs and pressure on profitability.
The bank's efficiency ratio, a key measure of profitability, increased to 60.9% in the first quarter, up from 56.1% in the previous quarter. This deterioration was primarily driven by higher noninterest expenses, which rose to $79.5 million from $73.2 million in the fourth quarter of 2024. The company attributed the increase to higher performance-based compensation and seasonal compensation adjustments.
Despite the challenges, FB Financial's President and CEO Christopher T. Holmes emphasized the company's "good results to start the year" in a statement, citing measured growth in loans and customer deposits. However, the market's negative reaction suggests investors are focusing on the near-term headwinds facing the bank's profitability.
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