Shares of FB Financial Corp (FBK) fell 5.03% in after-hours trading on Monday following the release of the company's first quarter 2025 financial results. The sharp decline came despite the bank holding company meeting earnings expectations, as investors focused on a slight revenue miss and rising expenses.

FB Financial reported adjusted earnings per share of $0.85 for Q1, in line with analyst estimates. However, the company's revenue of $130.7 million fell short of the $131.9 million expected by analysts surveyed by FactSet. This modest top-line miss appears to have disappointed investors who may have been hoping for stronger growth.

Adding to the negative sentiment, FB Financial saw a notable increase in noninterest expenses during the quarter. The company's efficiency ratio, a key measure of cost control, worsened to 60.9% from 56.1% in the previous quarter. Management attributed the higher expenses primarily to increased performance-based compensation and seasonal compensation adjustments.

While FB Financial did report some positive metrics, including an improvement in net interest margin to 3.55% from 3.50% in Q4 2024, the combination of the revenue shortfall and rising costs appears to have overshadowed these gains in investors' minds. The after-hours stock plunge suggests that market participants are concerned about the bank's ability to maintain profitability in the face of these headwinds.

As FB Financial moves forward, investors will likely be closely watching for any signs of improved revenue growth and better expense management in future quarters. The company's ability to address these concerns could play a crucial role in determining the stock's performance in the coming months.