James W. Ayers, a significant shareholder of FB Financial Corp (NYSE:FBK), recently increased his stake in the company with two separate stock purchases. On November 8, Ayers acquired 2,000 shares at a weighted average price of $55.70 per share. This transaction was executed in multiple trades with prices ranging from $55.50 to $55.82. Following this, on November 11, he purchased an additional 1,000 shares at an average price of $57.15, with transaction prices ranging between $57.10 and $57.20. The total value of these transactions amounts to $168,550. After these acquisitions, Ayers now holds 10,909,841 shares directly.
In other recent news, FB Financial Corporation reported a 21% year-over-year increase in adjusted earnings for the third quarter of 2024, with earnings per share at $0.86. The company also revealed a 20% year-over-year increase in pre-tax pre-provision net revenue. Despite a decline in construction loans, FB Financial displayed annualized loan growth of 7.2% and a 5.4% increase in non-brokered deposits.
The company's recent developments include the hiring of 20 senior revenue producers and expansion into Tuscaloosa, Alabama. Additionally, FB Financial anticipates mid-single-digit growth in Q4 2024 and aims for low double-digit growth in loans and deposits for 2025.
Despite a non-interest income loss of $16.5 million, primarily due to a $40.1 million loss on securities, the company maintains a robust financial position with a tangible common equity ratio of 10.4% and a CET1 ratio of 12.7%.
Analysts noted that FB Financial is open to potential bank acquisitions that align culturally and financially. Finally, the company's executives expressed optimism for maintaining margins as rates decrease gradually, hinting at a positive outlook for the future.
InvestingPro Insights
James W. Ayers' recent purchases of FB Financial Corp (NYSE:FBK) shares align with several positive indicators highlighted by InvestingPro. The stock has shown significant momentum, with InvestingPro data revealing a remarkable 91.44% total return over the past year and a 50.46% return in the last six months. This strong performance is further emphasized by the fact that FBK is trading near its 52-week high, with its current price at 97.67% of that peak.
InvestingPro Tips suggest that FBK has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's current dividend yield of 1.18% and a robust dividend growth rate of 13.33% over the last twelve months. These factors may have contributed to Ayers' decision to increase his stake in the company.
Additionally, FBK's financial health appears solid, with the company being profitable over the last twelve months and analysts predicting continued profitability this year. The P/E ratio of 24.91 suggests that investors are willing to pay a premium for the stock, possibly due to its growth prospects and consistent dividend increases.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for FB Financial Corp, providing a deeper understanding of the company's potential. These insights could be valuable for those considering following Ayers' lead in increasing their investment in FBK.
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