By Yasin Ebrahim
Investing.com -- FB Financial Corporation reported third-quarter results that missed on both the top and bottom lines despite a boost from rising interest rates.
FB Financial Corp (NYSE:FBK) was down more than 1% in afterhours trading.
The company reported earnings of $0.68 a share on revenue of $134 million, missing Wall Street estimates for $0.80 a share on revenue of $140.2 million.
Total deposits decreased by $537.2 million in the third quarter to $10.0 billion related to a $721.5 million decrease in public funds to $1.61 billion in the third quarter from $2.34 billion in the second quarter.
The company reported provision for credit losses of $11.4 million compared with $12.3 million for the prior quarter and a mortgage segment loss of $3.7 million compared to a loss of $15.2 million for the prior quarter.
The miss comes even as rising interest rates boosted profit from loan products.
"[W]e are pleased with the 9% increase in net interest income over the prior quarter and the 41 basis point expansion in our net interest margin," the company said.
Looking ahead, the company said that while it is hoping for a soft landing for the economy in the coming months, it was "taking a prudent approach" with its balance sheet by limiting growth in certain assets, maintaining appropriate capital and reserve levels, managing liquidity, and preparing for a range of economic scenarios.