Regional banking company FB Financial (NYSE: FBK) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 34.1% year on year to $178.6 million. Its non-GAAP profit of $1.16 per share was 3.3% above analysts’ consensus estimates.
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FB Financial (FBK) Q4 CY2025 Highlights:
- Net Interest Income: $149.8 million vs analyst estimates of $148.4 million (38.2% year-on-year growth, 0.9% beat)
- Net Interest Margin: 4% vs analyst estimates of 3.9% (12 basis point beat)
- Revenue: $178.6 million vs analyst estimates of $175.1 million (34.1% year-on-year growth, 2% beat)
- Efficiency Ratio: 60.2% vs analyst estimates of 53.1% (713.3 basis point miss)
- Adjusted EPS: $1.16 vs analyst estimates of $1.12 (3.3% beat)
- Tangible Book Value per Share: $30.27 vs analyst estimates of $30.56 (7.2% year-on-year growth, 0.9% miss)
- Market Capitalization: $3.13 billion
President and Chief Executive Officer, Christopher T. Holmes stated, “We closed the year with solid earnings and a balance sheet that underscores strength, stability, and significant growth potential. We also deployed capital during the quarter through a substantial share repurchase that delivered meaningful earnings accretion, demonstrating our confidence in the Company and our commitment to creating long-term value.”
Company Overview
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, FB Financial’s revenue grew at a weak 1.9% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a rough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. FB Financial’s annualized revenue growth of 12% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, FB Financial reported wonderful year-on-year revenue growth of 34.1%, and its $178.6 million of revenue exceeded Wall Street’s estimates by 2%.
Net interest income made up 76.8% of the company’s total revenue during the last five years, meaning lending operations are FB Financial’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
FB Financial’s TBVPS grew at a solid 6.9% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 8.6% annually over the last two years from $25.68 to $30.27 per share.
Over the next 12 months, Consensus estimates call for FB Financial’s TBVPS to grow by 14.4% to $34.63, decent growth rate.
Key Takeaways from FB Financial’s Q4 Results
It was encouraging to see FB Financial beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its tangible book value per share slightly missed and its EPS slightly exceeded Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $61.82 immediately following the results.
So do we think FB Financial is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
