FBK

MKT CAP $2.6BP/E 13.8DIV YIELD 1.54%FCF YIELD 7.68%REV TTM —NET INCOME $196.5M +117.5%NET CASH $899.6M52W 50.38 – 62.08SEC XBRL · TTM TO Invalid Date

How FBK rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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As of or for the years ended December 31, (Dollars in thousands, except per share data) 2025 2024 2023 Selected Balance Sheet Data Cash and cash equivalents $ 1,155,895 $ 1,042,488 $ 810,932 Investment securities, at fair value 1,459,734 1,538,008 1,471,973 Loans held for sale 201,076 126,760 67,847 Loans HFI 12,383,626 9,602,384 9,408,783 Allowance for credit losses on loans HFI (185,983) (151,942) (150,326) Total assets 16,300,292 13,157,482 12,604,403 Interest-bearing deposits (non-brokered) 10,649,932 8,625,113 8,179,430 Brokered deposits 625,634 469,089 150,475 Noninterest-bearing deposits 2,634,395 2,116,232 2,218,382 Total deposits 13,909,961 11,210,434 10,548,287 Borrowings 212,764 176,789 390,964 Allowance for credit losses on unfunded commitments 16,196 6,107 8,770 Total common shareholders' equity 1,948,165 1,567,538 1,454,794 Selected Statement of Income Data Total interest income $ 833,926 $ 725,538 $ 678,410 Total interest expense 317,826 309,035 271,193 Net interest income 516,100 416,503 407,217 Provisions for credit losses 43,278 12,004 2,539 Total noninterest income 43,910 39,070 70,543 Total noninterest expense 378,214 296,899 324,929 Income before income taxes 138,518 146,670 150,292 Income tax expense 15,880 30,619 30,052 Net income applicable to noncontrolling interest 16 16 16 Net income applicable to FB Financial Corporation $ 122,622 $ 116,035 $ 120,224 Net interest income (tax-equivalent basis) $ 519,393 $ 419,091 $ 410,562 Per Common Share Basic net income $ 2.47 $ 2.48 $ 2.57 Diluted net income 2.45 2.48 2.57 Book value 37.64 33.59 31.05 Tangible book value (1) 30.27 28.27 25.69 Cash dividends declared 0.76 0.68 0.60 Selected Ratios Return on average: Assets 0.84 % 0.91 % 0.95 % Shareholders’ equity 6.90 % 7.71 % 8.74 % Tangible common equity (1) 8.40 % 9.24 % 10.7 % Efficiency ratio 67.5 % 65.2 % 68.0 % Adjusted efficiency ratio (tax-equivalent basis) (1) 56.4 % 57.3 % 62.9 % Loans HFI to deposit ratio 89.0 % 85.7 % 89.2 % Noninterest-bearing deposits to total deposits 18.9 % 18.9 % 21.0 % Net interest margin (tax-equivalent basis) 3.81 % 3.51 % 3.44 % Yield on interest-earning assets 6.14 % 6.10 % 5.72 % Cost of interest-bearing liabilities 3.13 % 3.53 % 3.16 % Cost of total deposits 2.49 % 2.76 % 2.39 % As of or for the years ended December 31, 2025 2024 2023 Credit Quality Ratios Allowance for credit losses on loans HFI as a percentage of loans HFI 1.50 % 1.58 % 1.60 % Net charge-offs as a percentage of average loans HFI (0.06) % (0.14) % (0.01) % Nonperforming loans HFI as a percentage of loans HFI 0.97 % 0.87 % 0.65 % Nonperforming assets as a percentage of total assets (2) 0.97 % 0.93 % 0.69 % Capital Ratios (Company) Total common shareholders’ equity to assets 12.0 % 11.9 % 11.5 % Tangible common equity to tangible assets (1) 9.84 % 10.2 % 9.74 % Tier 1 leverage 10.3 % 11.3 % 11.3 % Tier 1 capital 11.4 % 13.1 % 12.5 % Total risk-based capital 13.2 % 15.2 % 14.5 % Common equity tier 1 (CET1) 11.4 % 12.8 % 12.2 % (1) Non-GAAP financial measure; See “ GAAP reconciliation and management explanation of non-GAAP financial measures” and non-GAAP reconciliations herein.
(2) Includes $28.1 million, $31.4 million and $21.2 million of optional rights to repurchase GNMA loans that meet certain defined delinquency criteria as of December 31, 2025, 2024 and 2023, respectively.
Adjusted efficiency ratio (tax-equivalent basis) The adjusted efficiency ratio (tax-equivalent basis) is a non-GAAP measure that excludes certain gains (losses), merger and offering-related expenses and other selected items.
The following table presents, as of the dates set forth below, a reconciliation of our adjusted efficiency ratio (tax-equivalent basis) to our efficiency ratio: Years Ended December 31, (dollars in thousands) 2025 2024 2023 Adjusted efficiency ratio (tax-equivalent basis) Total noninterest expense $ 378,214 $ 296,899 $ 324,929 Less early retirement, severance and other costs 1,395 1,478 8,449 Less loss on lease terminations and other branch closure costs 282 — 1,770 Less charitable contribution to FirstBank Foundation 1,130 — — Less FDIC special assessment — 500 1,788 Less merger and integration costs 23,803 — — Adjusted noninterest expense $ 351,604 $ 294,921 $ 312,922 Net interest income $ 516,100 $ 416,503 $ 407,217 Net interest income (tax-equivalent basis) 519,393 419,091 410,562 Total noninterest income 43,910 39,070 70,543 Less loss from securities, net (60,457) (56,378) (13,973) Less loss on sales or write-downs of premises and equipment, other real estate owned and other assets (1,166) (2,167) (27) Less cash life insurance benefit 1,148 2,057 — Less loss on change in fair value on commercial loans held for sale — — (2,114) Adjusted noninterest income $ 104,385 $ 95,558 $ 86,657 Total revenue $ 560,010 $ 455,573 $ 477,760 Adjusted revenue (tax-equivalent basis) $ 623,778 $ 514,649 $ 497,219 Efficiency ratio 67.5 % 65.2 % 68.0 % Adjusted efficiency ratio (tax-equivalent basis) 56.4 % 57.3 % 62.9 % Tangible book value per common share and tangible common equity to tangible assets Tangible book value per common share and tangible common equity to tangible assets are non-GAAP measures that exclude the impact of goodwill and other intangibles used by the Company’s management to evaluate capital adequacy.
The following table presents, as of the dates set forth below, tangible common equity compared with total shareholders’ equity, tangible book value per common share compared with our book value per common share and common equity to tangible assets compared to total shareholders’ equity to total assets: As of December 31, (dollars in thousands, except share and per share data) 2025 2024 2023 Tangible assets Total assets $ 16,300,292 $ 13,157,482 $ 12,604,403 Adjustments: Goodwill (350,353) (242,561) (242,561) Core deposit and other intangibles (31,284) (5,762) (8,709) Tangible assets $ 15,918,655 $ 12,909,159 $ 12,353,133 Tangible common equity Total common shareholders’ equity $ 1,948,165 $ 1,567,538 $ 1,454,794 Adjustments: Goodwill (350,353) (242,561) (242,561) Core deposit and other intangibles (31,284) (5,762) (8,709) Tangible common equity $ 1,566,528 $ 1,319,215 $ 1,203,524 Common shares outstanding 51,752,401 46,663,120 46,848,934 Book value per common share $ 37.64 $ 33.59 $ 31.05 Tangible book value per common share $ 30.27 $ 28.27 $ 25.69 Total common shareholders’ equity to total assets 12.0 % 11.9 % 11.5 % Tangible common equity to tangible assets 9.84 % 10.2 % 9.74 % Return on average tangible common equity Return on average tangible common equity is a non-GAAP measure that uses average shareholders’ equity and excludes the impact of goodwill and other intangibles.
The following table presents, as of the dates set forth below, reconciliations of total average tangible common equity to average shareholders' equity and return on average tangible common equity to return on average shareholders’ equity: Years Ended December 31, (dollars in thousands) 2025 2024 2023 Return on average tangible common equity Total average common shareholders’ equity $ 1,776,945 $ 1,505,739 $ 1,374,831 Adjustments: Average goodwill (296,901) (242,561) (242,561) Average intangibles, net (19,492) (7,177) (10,472) Average tangible common equity $ 1,460,552 $ 1,256,001 $ 1,121,798 Net income applicable to FB Financial Corporation $ 122,622 $ 116,035 $ 120,224 Return on average common shareholders' equity 6.90 % 7.71 % 8.74 % Return on average tangible common equity 8.40 % 9.24 % 10.7 % Overview of recent financial performance Year ended December 31, 2025 compared to the year ended December 31, 2024 Our net income increased during the year ended December 31, 2025 to $122.6 million from $116.1 million for the year ended December 31, 2024.
Diluted earnings per common share was $2.45 and $2.48 for the years ended December 31, 2025 and 2024, respectively.
Our net income represented a return on average assets of 0.84% and 0.91% for the years ended December 31, 2025 and 2024, respectively, and a return on average equity of 6.90% and 7.71% for the same periods.
Our ratio of return on average tangible common equity for the years ended December 31, 2025 and 2024 was 8.40% and 9.24%, respectively.
During the year ended December 31, 2025, net interest income increased to $516.1 million compared with $416.5 million in the year ended December 31, 2024.
Our net interest margin, on a tax-equivalent basis, increased to 3.81% for the year ended December 31, 2025 as compared to 3.51% for the year ended December 31, 2024.
The increase in net interest income and net interest margin, on a tax-equivalent basis, reflects a $109.1 million increase in interest income, partially offset by a $8.8 million increase in interest expense.
Provision for credit losses on loans HFI and unfunded loan commitments was $43.3 million for the year ended December 31, 2025 compared $12.0 million for the year ended December 31, 2024 primarily due to the initial provision for credit losses on acquired loans and unfunded commitments from the Southern States merger of $28.4 million, along with changes in loan balances and forecast assumptions.
Refer to Note 2, “Mergers and acquisitions” in this Report for further discussion around the merger with Southern States.
Noninterest income for the year ended December 31, 2025 increased by $4.8 million to $43.9 million, up from $39.1 million for prior year period.
The increase in noninterest income was driven by a $5.8 million increase in mortgage banking income, a $2.1 million increase in investment services and trust income and a $1.9 million increase in service charges on deposits.
The increase was partially offset by a $60.5 million net loss on investment securities primarily related to the sale of $266.9 million of AFS securities compared to a $56.4 million net loss on investment securities primarily related to the sale of $526.4 million of AFS securities for the year ended December 31, 2024.
Noninterest expense increased to $378.2 million for the year ended December 31, 2025, compared with $296.9 million for the year ended December 31, 2024.
The increase in noninterest expense was driven by a $33.9 million increase in salaries, commissions and employee benefits due to increased headcount resulting from the Southern States merger, combined with increase in performance-based compensation driven by improvement in the Company’s performance metrics, $23.8 million in merger and integration costs associated with our merger with Southern States and an increase in other noninterest expense of $16.3 million due to increases in franchise tax expense, technology and platform fees, and modest increases across a range of other expense categories.
Income tax expense for the year ended December 31, 2025 was $15.9 million compared to $30.6 million for the year ended December 31, 2024.
The change reflects the income tax effect of a $60.5 million loss on sale of AFS debt securities, as well as a one-time gross tax benefit of $10.7 million due to the expiration of the statute of limitations with respect to an amended income tax return and the associated interest for the year ended December 31, 2025.
Income tax expense for the year ended December 31, 2024, included the income tax effect of a $56.4 million loss on sale of AFS debt securities.
Year ended December 31, 2024 compared to year ended December 31, 2023 Our net income decreased during the year ended December 31, 2024 to $116.1 million from $120.2 million for the year ended December 31, 2023.
Our ratio of return on average tangible common equity for the years ended December 31, 2024 and 2023 was 9.24% and 10.7%, respectively.
Provision for credit losses on loans HFI and unfunded loan commitments was $12.0 million for the year ended December 31, 2024 compared to $2.5 million for the year ended December 31, 2023 primarily due to a reversal of provision for credit losses on unfunded commitments of $2.7 million compared to $14.2 million during the year ended December 31, 2023.
See Note 1, “Basis of presentation and summary of significant accounting policies” and Note 19 “Segment reporting” in the notes to our consolidated financial statements for a description of these business segments.
Banking Income before taxes from the Banking segment decreased for the year ended December 31, 2025 to $134.9 million, compared to $143.7 million for the year ended December 31, 2024.
Net interest income increased by $95.3 million to $506.1 million during the year ended December 31, 2025 compared to $410.8 million during the year ended December 31, 2024.
Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $37.6 million of provision expense during the year ended December 31, 2025 compared to $12.3 million during the year ended December 31, 2024.
The increase was driven by the initial provision for credit losses on acquired loans and unfunded commitments from the Southern States merger of $28.4 million.
The Banking segment recorded a noninterest loss of $8.8 million in the year ended December 31, 2025 as compared to a loss of $8.4 million in the year ended December 31, 2024.
This decrease includes a net loss on investment securities of $60.5 million associated with the sale of $266.9 million AFS debt securities during the year ended December 31, 2025 compared with a net loss on investment securities of $56.4 million primarily related to the sale of $526.4 million of AFS debt securities for the year ended December 31, 2024.
Noninterest expense increased to $324.8 million for year ended December 31, 2025 compared to $246.5 million for the year ended December 31, 2024 due to increases in salaries and benefits, merger and integration costs associated with the Southern States merger, advertising, franchise tax expense, technology and platform fees and modest increases across a range of other expense categories.
Mortgage Activity in our Mortgage segment resulted in income before income taxes of $3.6 million for the year ended December 31, 2025 compared to $3.0 million for the year ended December 31, 2024.
Net interest income was $10.0 million for the year ended December 31, 2025 compared to $5.7 million for the year ended December 31, 2024.
Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $5.6 million of provision expense during the year ended December 31, 2025 compared to a reversal of $0.3 million of provision expense during the year ended December 31, 2024.
The increase in provisions for credit losses was due to a change in the CECL loss estimation methodology, which notably impacted reserves on our 100% financed 1-to-4 mortgage portfolio, as well as a notable change in forecasts associated with home prices which impacted mortgage reserves more broadly.
Mortgage banking income increased $5.8 million to $52.4 million during the year ended December 31, 2025 compared to $46.6 million for the year ended December 31, 2024.
The components of mortgage banking income for the years ended December 31, 2025 and 2024 were as follows: Years Ended December 31, (dollars in thousands) 2025 2024 Mortgage banking income Gains and fees from origination and sale of mortgage loans held for sale $ 36,015 $ 32,459 Net change in fair value of loans held for sale and derivatives 2,684 1,241 Change in fair value on MSRs, net of hedging (13,772) (16,278) Mortgage servicing income 27,517 29,212 Total mortgage banking income $ 52,444 $ 46,634 Interest rate lock commitment volume $ 1,656,162 $ 1,459,494 Interest rate lock commitment volume by purpose (%): Purchase 81.6 % 84.1 % Refinance 18.4 % 15.9 % Mortgage sales $ 1,293,401 $ 1,173,066 Mortgage sale margin 2.78 % 2.77 % Closing volume $ 1,380,264 $ 1,222,606 Outstanding principal balance of mortgage loans serviced $ 9,588,948 $ 10,235,048 Noninterest expense for the years ended December 31, 2025 and 2024 was $53.5 million and $50.4 million, respectively.
This increase is reflective of an increase in commissions associated with mortgage loan volume.

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We expect to incur increased costs for compliance, risk management and audit personnel or professional fees associated with advisors and consultants due the current economic environment.
As of or for the years ended December 31, (Dollars in thousands, except per share data) 2024 2023 2022 Selected Balance Sheet Data Cash and cash equivalents $ 1,042,488 $ 810,932 $ 1,027,052 Investment securities, at fair value 1,538,008 1,471,973 1,474,176 Loans held for sale 126,760 67,847 139,451 Loans HFI 9,602,384 9,408,783 9,298,212 Allowance for credit losses on loans HFI (151,942) (150,326) (134,192) Total assets 13,157,482 12,604,403 12,847,756 Interest-bearing deposits (non-brokered) 8,625,113 8,179,430 8,178,453 Brokered deposits 469,089 150,475 750 Noninterest-bearing deposits 2,116,232 2,218,382 2,676,631 Total deposits 11,210,434 10,548,287 10,855,834 Borrowings 176,789 390,964 415,677 Allowance for credit losses on unfunded commitments 6,107 8,770 22,969 Total common shareholders' equity 1,567,538 1,454,794 1,325,425 Selected Statement of Income Data Total interest income $ 725,538 $ 678,410 $ 481,422 Total interest expense 309,035 271,193 69,187 Net interest income 416,503 407,217 412,235 Provisions for credit losses 12,004 2,539 18,982 Total noninterest income 39,070 70,543 114,667 Total noninterest expense 296,899 324,929 348,346 Income before income taxes 146,670 150,292 159,574 Income tax expense 30,619 30,052 35,003 Net income applicable to noncontrolling interest 16 16 16 Net income applicable to FB Financial Corporation $ 116,035 $ 120,224 $ 124,555 Net interest income (tax-equivalent basis) $ 419,091 $ 410,562 $ 415,282 Per Common Share Basic net income $ 2.48 $ 2.57 $ 2.64 Diluted net income 2.48 2.57 2.64 Book value (1) 33.59 31.05 28.36 Tangible book value (2) 28.27 25.69 22.90 Cash dividends declared 0.68 0.60 0.52 Selected Ratios Return on average: Assets (3) 0.91 % 0.95 % 1.01 % Shareholders' equity (3) 7.71 % 8.74 % 9.23 % Tangible common equity (2) 9.24 % 10.7 % 11.4 % Efficiency ratio 65.2 % 68.0 % 66.1 % Core efficiency ratio (tax-equivalent basis) (2) 57.3 % 62.9 % 62.7 % Loans HFI to deposit ratio 85.7 % 89.2 % 85.7 % Noninterest-bearing deposits to total deposits 18.9 % 21.0 % 24.7 % Net interest margin (tax-equivalent basis) 3.51 % 3.44 % 3.57 % Yield on interest-earning assets 6.10 % 5.72 % 4.16 % Cost of interest-bearing liabilities 3.53 % 3.16 % 0.87 % Cost of total deposits 2.76 % 2.39 % 0.54 % As of or for the years ended December 31, 2024 2023 2022 Credit Quality Ratios Allowance for credit losses on loans HFI as a percentage of loans HFI 1.58 % 1.60 % 1.44 % Net charge-offs as a percentage of average loans HFI (0.14) % (0.01) % (0.02) % Nonperforming loans HFI as a percentage of loans HFI 0.87 % 0.65 % 0.49 % Nonperforming assets as a percentage of total assets (4) 0.93 % 0.69 % 0.68 % Capital Ratios (Company) Total common shareholders' equity to assets 11.9 % 11.5 % 10.3 % Tangible common equity to tangible assets (2) 10.2 % 9.74 % 8.50 % Tier 1 Leverage 11.3 % 11.3 % 10.5 % Tier 1 Risk-Based Capital 13.1 % 12.5 % 11.3 % Total Risk-Based Capital 15.2 % 14.5 % 13.1 % Common Equity Tier 1 (CET1) 12.8 % 12.2 % 11.0 % (1) Book value per share equals our total common shareholders’ equity divided by the number of shares of our common stock outstanding as of the date presented.
(2) Non-GAAP financial measure; See "GAAP reconciliation and management explanation of non-GAAP financial measures” and non-GAAP reconciliations herein.
(3) ROAA and ROAE is calculated by dividing net income or loss for that period by our average assets or average equity for the same period.
(4) Includes $31.4 million, $21.2 million and $26.2 million of optional rights to repurchase GNMA loans that meet certain defined delinquency criteria as of December 31, 2024, 2023 and 2022, respectively.
Core efficiency ratio (tax-equivalent basis) The core efficiency ratio (tax-equivalent basis) is a non-GAAP measure that excludes certain gains (losses), merger and offering-related expenses and other selected items.
The following table presents, as of the dates set forth below, a reconciliation of our core efficiency ratio (tax-equivalent basis) to our efficiency ratio: Years Ended December 31, (dollars in thousands) 2024 2023 2022 Core efficiency ratio (tax-equivalent basis) Total noninterest expense $ 296,899 $ 324,929 $ 348,346 Less early retirement, severance and other costs 1,478 8,449 — Less loss (gain) on lease terminations — 1,770 (18) Less FDIC special assessment 500 1,788 — Less mortgage restructuring — — 12,458 Core noninterest expense $ 294,921 $ 312,922 $ 335,906 Net interest income $ 416,503 $ 407,217 $ 412,235 Net interest income (tax-equivalent basis) 419,091 410,562 415,282 Total noninterest income 39,070 70,543 114,667 Less loss from securities, net (56,378) (13,973) (376) Less loss on sales or write-downs of premises and equipment, other real estate owned and other assets (2,167) (27) (265) Less cash life insurance benefit 2,057 — — Less loss on change in fair value on commercial loans held for sale — (2,114) (5,133) Core noninterest income $ 95,558 $ 86,657 $ 120,441 Total revenue $ 455,573 $ 477,760 $ 526,902 Core revenue (tax-equivalent basis) $ 514,649 $ 497,219 $ 535,723 Efficiency ratio 65.2 % 68.0 % 66.1 % Core efficiency ratio (tax-equivalent basis) 57.3 % 62.9 % 62.7 % Tangible book value per common share and tangible common equity to tangible assets Tangible book value per common share and tangible common equity to tangible assets are non-GAAP measures that exclude the impact of goodwill and other intangibles used by the Company’s management to evaluate capital adequacy.
The following table presents, as of the dates set forth below, tangible common equity compared with total shareholders’ equity, tangible book value per common share compared with our book value per common share and common equity to tangible assets compared to total shareholders’ equity to total assets: As of December 31, (dollars in thousands, except share and per share data) 2024 2023 2022 Tangible assets Total assets $ 13,157,482 $ 12,604,403 $ 12,847,756 Adjustments: Goodwill (242,561) (242,561) (242,561) Core deposit and other intangibles (5,762) (8,709) (12,368) Tangible assets $ 12,909,159 $ 12,353,133 $ 12,592,827 Tangible common equity Total common shareholders’ equity $ 1,567,538 $ 1,454,794 $ 1,325,425 Adjustments: Goodwill (242,561) (242,561) (242,561) Core deposit and other intangibles (5,762) (8,709) (12,368) Tangible common equity $ 1,319,215 $ 1,203,524 $ 1,070,496 Common shares outstanding 46,663,120 46,848,934 46,737,912 Book value per common share $ 33.59 $ 31.05 $ 28.36 Tangible book value per common share $ 28.27 $ 25.69 $ 22.90 Total common shareholders’ equity to total assets 11.9 % 11.5 % 10.3 % Tangible common equity to tangible assets 10.2 % 9.74 % 8.50 % Return on average tangible common equity Return on average tangible common equity is a non-GAAP measure that uses average shareholders' equity and excludes the impact of goodwill and other intangibles.
The following table presents, as of the dates set forth below, reconciliations of total average tangible common equity to average shareholders' equity and return on average tangible common equity to return on average shareholders' equity: Years Ended December 31, (dollars in thousands) 2024 2023 2022 Return on average tangible common equity Total average common shareholders’ equity $ 1,505,739 $ 1,374,831 $ 1,349,583 Adjustments: Average goodwill (242,561) (242,561) (242,561) Average intangibles, net (7,177) (10,472) (14,573) Average tangible common equity $ 1,256,001 $ 1,121,798 $ 1,092,449 Net income applicable to FB Financial Corporation $ 116,035 $ 120,224 $ 124,555 Return on average common shareholders' equity 7.71 % 8.74 % 9.23 % Return on average tangible common equity 9.24 % 10.7 % 11.4 % Overview of recent financial performance Year ended December 31, 2024 compared to the year ended December 31, 2023 Our net income decreased during the year ended December 31, 2024 to $116.1 million from $120.2 million for the year ended December 31, 2023.
Our ratio of return on average tangible common equity for the years ended December 31, 2024 and 2023 was 9.2% and 10.7%, respectively.
Provision for credit losses on loans HFI and unfunded loan commitments was $12.0 million for the year ended December 31, 2024 compared $2.5 million for the year ended December 31, 2023 primarily due to a reversal of provision for credit losses on unfunded commitments of $2.7 million compared to $14.2 million during the year ended December 31, 2023.
Refer to the section “Provision for credit losses” for additional information.
Year ended December 31, 2023 compared to year ended December 31, 2022 Our net income decreased during the year ended December 31, 2023 to $120.2 million from $124.6 million for the year ended December 31, 2022.
Diluted earnings per common share was $2.57 and $2.64 for the years ended December 31, 2023 and 2022, respectively.
Our net income represented a return on average assets of 0.95% and 1.01% for the years ended December 31, 2023 and 2022, respectively, and a return on average equity of 8.74% and 9.23% for the same periods.
Our ratio of return on average tangible common equity for the years ended December 31, 2023 and 2022 was 10.7% and 11.4%, respectively.
During the year ended December 31, 2023, net interest income decreased to $407.2 million compared with $412.2 million in the year ended December 31, 2022.
Our net interest margin, on a tax-equivalent basis, decreased to 3.44% for the year ended December 31, 2023 as compared to 3.57% for the year ended December 31, 2022, influenced by rising interest rates increasing our total cost of funds compared to the increase in the interest income on interest-earning assets during the year ended December 31, 2023.
Provision for credit losses on loans HFI and unfunded loan commitments was $2.5 million for the year ended December 31, 2023 compared $19.0 million for the year ended December 31, 2022 primarily due to a reversal of provision for credit losses on unfunded commitments of $14.2 million compared to provision expense of $8.6 million during the year ended December 31, 2022.
Noninterest income for the year ended December 31, 2023 decreased by $44.1 million to $70.5 million, down from $114.7 million for prior year period.
The decrease in noninterest income was primarily driven by a decrease in mortgage banking income of $28.9 million to $44.7 million for the year ended December 31, 2023, compared to $73.6 million for the prior year period.
These results were impacted by increasing interest rates, compressing margins and a decrease in demand for residential mortgages experienced through the industry during the year ended December 31, 2023 compared with the year ended December 31, 2022.
The change was also impacted by the restructuring of our mortgage business, including the exit of our direct-to-consumer internet delivery channel during the year ended December 31, 2022.
Additionally contributing to the decrease in noninterest income during the year ended December 31, 2023 was a $14.0 million net loss on investment securities primarily related to the sale of $100.5 million of AFS securities.
Noninterest expense decreased to $324.9 million for the year ended December 31, 2023, compared with $348.3 million for the year ended December 31, 2022.
The decrease in noninterest expense is reflective of the $28.3 million decrease in salaries, commissions and employee-related costs namely in the Mortgage segment related to the restructuring of our Mortgage segment, reduced headcount and mortgage production.
Additionally, this decrease in salaries, commission and employee-benefit related costs was partially offset by an $8.4 million increase in early retirement, severance and other costs related to our efficiency and scalability initiatives and $4.7 million in regulatory fees and assessments, which includes a $1.8 million FDIC special assessment associated with the bank failures earlier in 2023.
Additionally, the decrease in noninterest expense reflects $12.5 million in mortgage restructuring expenses included in expenses in the year ended December 31, 2022.
See Note 1, “Basis of presentation” and Note 18 “Segment reporting” in the notes to our consolidated financial statements for a description of these business segments.
Banking Income before taxes from the Banking segment decreased for the year ended December 31, 2024 to $143.1 million, compared to $154.3 million for the year ended December 31, 2023.
Net interest income increased by $9.5 million to $410.8 million during the year ended December 31, 2024 compared to $401.2 million during the year ended December 31, 2023.
Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $12.3 million of provision expense during the year ended December 31, 2024 compared to $2.6 million during the year ended December 31, 2023.
The Banking segment recorded a noninterest loss of $8.4 million in the year ended December 31, 2024 as compared to income of $25.8 million in the year ended December 31, 2023.
This decrease includes a net loss on investment securities of $56.4 million associated with the sale of $526.4 million AFS debt securities during the year ended December 31, 2024 compared with a net loss on investment securities of $14.0 million primarily related to the sale of $100.5 million of AFS debt securities for the year ended December 31, 2023.
Noninterest expense decreased to $247.1 million for year ended December 31, 2024 compared to $270.1 million for the year ended December 31, 2023 due to decreas es in salaries, occ upancy, advertising, legal and professional fees and franchise tax expense.
Mortgage Activity in our Mortgage segment resulted in a pre-tax net contribution of $3.6 million for the year ended December 31, 2024 compared to a $4.1 million pre-tax net loss for the year ended December 31, 2023.
Net interest income was $5.7 million for the year ended December 31, 2024 compared to $6.0 million for the year ended December 31, 2023.
Provisions for credit losses on loans HFI and unfunded loan commitments resulted in a reversal of $0.3 million of provision expense during the year ended December 31, 2024 compared to a reversal of $0.1 million of provision expense during the year ended December 31, 2023.
Mortgage banking income increased $1.9 million to $46.6 million during the year ended December 31, 2024 compared to $44.7 million for the year ended December 31, 2023.
The components of mortgage banking income for the years ended December 31, 2024 and 2023 were as follows: Years Ended December 31, (dollars in thousands) 2024 2023 Mortgage banking income Gains and fees from origination and sale of mortgage loans held for sale $ 32,459 $ 32,470 Net change in fair value of loans held for sale and derivatives 1,241 (1,815) Change in fair value on MSRs, net of hedging (16,278) (16,226) Mortgage servicing income 29,212 30,263 Total mortgage banking income $ 46,634 $ 44,692 Interest rate lock commitment volume $ 1,459,494 $ 1,396,837 Interest rate lock commitment volume by purpose (%): Purchase 84.1 % 86.8 % Refinance 15.9 % 13.2 % Mortgage sales $ 1,173,066 $ 1,245,125 Mortgage sale margin 2.77 % 2.61 % Closing volume $ 1,222,606 $ 1,199,362 Outstanding principal balance of mortgage loans serviced $ 10,235,048 $ 10,762,906 Noninterest expense for the years ended December 31, 2024 and 2023 was $49.8 million and $54.8 million, respectively.

and 575 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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