The parent company of FirstBank completed its acquisition of 14 branches in and around Chattanooga from Atlantic Capital Bank this spring, which boosted the bank's size but helped to cut the second quarter earnings of its parent company, FB Financial Corp.
FirstBank on Monday reported net income of $18.7 million, or 59 cents per share, in the three months ended June 30. In the same period a year earlier, FirstBank earned $22.1 million, or 70 cents per share.
Excluding merger and mortgage restructuring expenses in the quarter, however, net income per diluted common share was 70 cents per share in the second quarter of this year, down only 2 cents per share from the adjusted 72 cents per share earned in the spring quarter a year earlier.
This year's results also were 2 cents per share better than the Zacks consensus estimate for adjusted earnings of 68 cents per share.
FirstBank CEO Christopher Holmes said he is "pleased with every aspect" of the purchase of the Atlantic Capital branches, which added $588.9 million in deposits and $375 million in net loans to the company's balance sheet.
The purchase of the Atlantic Capital Bank branches helped boost deposits in metropolitan Chattanooga for FirstBank above $525 million and boosted FirstBank to the fifth biggest bank among the 28 commercial banks in the Chattanooga market, according to FDIC market share reports.
"In addition to the acquisition results, during the second quarter we remained focused on organic growth and profitability," Holmes said. "Our organic loan growth was 13.5% during the quarter with a net interest margin of 4.39% while we kept deposit costs flat."
Last month, FirstBank completed the sale of its third party origination mortgage delivery channel and expects to complete the sale of its correspondent mortgage lending channel in August.
Shares of FB Financial rose Monday by 24 cents per share to $37.04, but FB stock has increased only about 5.1% since the beginning of the year, or less than a third of the S&P 500's gain of 18.7%.
Contact Dave Flessner at dflessner@timesfrepress.com or at 757-6340.