FBK - FB Financial: Riding Stronger Margins And Renewed Interest In Southeast Regional Banks
2024-07-18 22:12:09 ET
Summary
- Q2'24 results comfortably beat expectations, with a securities portfolio restructuring driving higher net interest income and also strong fee-based income.
- Loan growth was weaker than expected as management ratchets back some riskier lending exposures, but their 10% target for loan growth in 2025 is bold.
- FB Financial shares have climbed almost 60%, outperforming regional and Southeast banks, and I wonder if M&A premiums are coming back into the space.
- I underestimated the re-rating potential of these shares before, but it's tough to make the numbers work now, even assuming nearly 10% long-term core earnings growth.
“I owe you an apology. I wasn’t really familiar with your game.” Shaquille O’Neal ...
FB Financial: Riding Stronger Margins And Renewed Interest In Southeast Regional Banks