FB Financial in Nashville, Tenn., reported lower quarterly earnings after it restructured its securities portfolio and conducted an early retirement program.
The $12.5 billion-asset company said in a press release that third-quarter profit fell by 9.3% from a year earlier, to $102 million. Net income rose slightly from the second quarter.
FB Financial said it sold $76.6 million of available-for-sale securities near the end of the third quarter at a $14.2 million pretax loss. It reinvested the proceeds into higher-yielding securities; the transaction should be accretive beginning in the fourth quarter.
“There will likely be additional balance sheet enhancements and expense reductions in the fourth quarter, all of which improve our earnings profile,” FB Financial said.
Separately, FB Financial said its early retirement program resulted in $4.8 million in expenses during the third quarter. The company said it expects another $1.7 million of charges in the fourth quarter.
The company, which is in the process of shutting down its direct-to-consumer mortgage operations, had another $1.4 million of severance costs during the third quarter.