FB Financial Ramps Up Dividend By 22%


FB Financial Corporation announced a 22% hike in its quarterly dividend to $0.11 per share from $0.09 per share. The new quarterly dividend will be paid on Feb. 22, 2021, to shareholders of record as of Feb. 8.

The company’s new annual dividend of $0.44 per share now reflects a dividend yield of 1.18%. The company’s CEO, Christopher T. Holmes, said, “We are pleased with the board of directors’ decision to pay our 12th consecutive quarterly dividend.”

On Jan. 26, FB Financial (FBK) reported better-than-expected 4Q results. Its 4Q earnings of $1.14 per share came in ahead of the Street’s estimates of $0.81 and jumped 62.9% year-over-year. Further, revenue increased 78.5% year-over-year to $165.9 million, topping analysts’ expectations of $162 million.

Net interest margin reduced to 3.32% in the quarter from 4.12% in the year-ago period. At the end of the quarter, total deposits increased 91.7% year-over-year to $9.5 billion, while loans (held for investment) grew 60.6% year-over-year to about $7.1 billion. (See FB Financial stock analysis on TipRanks)

Following the results, Raymond James analyst Ammar Samma maintained a Hold rating on the stock. In a note to investors, Samma said, “Reported results were impacted by the CECL [current expected credit losses] model/underlying methodology, where the company released reserves in the quarter, leaving the loan loss reserve ratio ex. PPP [Paycheck Protection Program] down 18 bp to 2.48% (still one of the highest in our coverage universe).”

Meanwhile, the rest of the Street has a cautiously optimistic outlook with a Moderate Buy consensus rating based on 2 Buys, 1 Hold and 1 Sell. The average analyst price target of $37.33 implies that the shares are fully priced at current levels. Shares gained 3.5% over the past year.

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