FB Financial Corporation (NYSE: FBK), headquartered in Nashville, Tennessee, is the parent company of FirstBank, providing banking services across Tennessee, Kentucky, Alabama, and Georgia. The company reported a significant decline in financial performance for the second quarter of 2025.

FB Financial posted net income of $2.9 million, or $0.06 per diluted common share, down from $39.4 million, or $0.84 per share, in the first quarter of 2025, and $40.0 million, or $0.85 per share, a year earlier. Adjusted net income was $40.8 million, or $0.88 per diluted common share, compared to $40.1 million and $39.4 million in the previous quarter and the same quarter last year, respectively.

Total revenue for the second quarter decreased to $76.9 million, a decline from $130.7 million in the first quarter and $128.2 million in the second quarter of 2024. The company also recorded a significant loss of $60.5 million from the sale of investment securities, which impacted the net income figure.

The company’s loans held for investment (HFI) grew to $9.87 billion, a 4.2% annualized increase from $9.77 billion in the previous quarter, and a 6.1% increase from $9.31 billion a year ago. Total deposits rose to $11.40 billion as of June 30, 2025, from $11.20 billion as of March 31, 2025, reflecting a 7.2% annualized increase and an 8.9% increase year-over-year.

Net interest margin (NIM) improved to 3.68% in the second quarter, up from 3.55% in the first quarter and 3.57% in the same quarter last year. The company reported a net interest income of $111.4 million for the second quarter, increasing from $107.6 million in the prior quarter and $102.6 million a year earlier.

Noninterest expense was reported at $81.3 million, an increase compared to $79.5 million in the first quarter and $75.1 million in the second quarter of 2024. The efficiency ratio rose to 105.7%, compared to 60.9% in the previous quarter and 58.6% in the prior year.

The allowance for credit losses on loans HFI decreased to $148.9 million, or 1.51% of loans HFI, from $150.5 million, or 1.54%, in the first quarter. The net charge-offs for the quarter were $0.5 million, representing annualized net charge-offs of 0.02%, down from 0.14% in the previous quarter.

FB Financial’s total common shareholders’ equity stood at $1.61 billion, reflecting a 2.3% increase from the previous quarter and a year-over-year improvement of 7.4%. The book value per common share was reported at $35.17, while tangible book value per common share was $29.78.

The company’s capital ratios remained strong, with a common equity tier 1 (CET1) ratio of 12.3% and a total risk-based capital ratio of 14.7%. Following the completion of its merger with Southern States Bancshares, Inc. on July 1, 2025, FB Financial expects to see benefits from improved scale and efficiency in the coming quarters.