FB Financial’s loan book did the heavy lifting in the latest quarter. Interest income reached $230.3 million, up from $182.9 million a year earlier, as average interest-earning assets grew, especially loans tied to the Southern States merger and additional loan growth.
That is the easy read: a regional bank with more loans producing more income. The harder part is the size of the comparison. Net income jumped from $2.9 million to $58.6 million, while diluted EPS rose from $0.06 to $1.13. Diluted shares also increased 11.9% to 51.7 million, so the earnings rebound was not simply a smaller share count doing the work.
The prior period carried a loss that made the year-over-year math unusually forgiving. FB Financial attributes the change directly to that earlier charge:
"The increase was driven by the recognition of a $60.5 million net loss on investment securities stemming from the sale of $266.5 million AFS debt securities during the three months ended June 30, 2025."
10-Q 2026-08-03; cash liquidity
In plain English, much of the profit swing is the disappearance of a large securities loss from the comparison quarter. The current filing does not describe a similar charge in the latest period, leaving loan growth and merger-related scale as the more useful operating receipts.
The merger is also bringing more expense. Noninterest expense rose to $79.1 million from $67.3 million, with the company pointing to higher salaries, commissions, benefits, amortization, and occupancy costs, most of them associated with the Southern States merger. Deposit funding costs moved up too:
"Interest expense on interest-bearing deposit accounts totaled $156.6 million for the six months ended June 30, 2026, an increase of $17.8 million from the prior year, largely due to increases in average balances across most deposit categories, particularly money market deposits and customer time deposits, reflecting growth associated with the merger."
10-Q 2026-08-03
The merger therefore appears in both halves of the operating equation: more earning assets and more deposit balances, alongside a larger expense base. Cash declined 4.6% to $1.1 billion, although the filing does not tie that movement to a specific cause.
Credit quality adds a separate complication. FB Financial’s ratio of nonperforming loans held for investment to total loans rose 20 basis points to 1.17% from year-end, after one significant commercial real estate relationship and one commercial and industrial relationship migrated to nonperforming status.
Jodie’s regional-bank activity snapshot on Aug. 3 placed FB Financial among the most active names in a group where 13 of 18 members crossed the activity threshold. That is a description of shared market behavior, not an explanation for the filing, but it puts the company in a broader bank cluster while its own report is expanding the loan base and flagging two specific credit migrations.
The unresolved question for FB Financial’s next quarterly report is whether those two relationships remain the main source of nonperforming-loan pressure, or whether the 1.17% ratio has moved again.
Source: FB Financial 10-Q filed Aug. 3, 2026, for the period ended June 30, 2026.