FB Financial Corporation

What they do

FB Financial operates primarily through its wholly-owned bank subsidiary, FirstBank, providing commercial and consumer banking services in select markets across Tennessee, Alabama, Kentucky, Georgia and North Carolina. As of December 31, 2025, the footprint included 90 full-service branches, with markets including Nashville, Chattanooga, Knoxville, Memphis and Jackson in Tennessee, Bowling Green in Kentucky, Columbus and Newnan in Georgia, and Birmingham, Anniston, Huntsville and Auburn in Alabama. The company also provides mortgage banking services through its bank branch network and mortgage banking offices across the southeastern United States. It reports through two segments: Banking and Mortgage.

Revenue drivers

• Banking segment — Generates most of the company's revenue from interest on loans and investments, loan-related fees, trust and investment services, and deposit-related fees; the Bank's primary funding source is customer deposits, supplemented by unsecured credit lines, brokered CDs and other borrowings.
• Net interest income — Described in the 10-K as the largest contributor to net income, driven by the spread between yields on interest-earning assets (loans, investment securities, interest-bearing deposits) and costs on interest-bearing liabilities (primarily deposits and borrowings).
• Mortgage segment — Generates revenue mainly from origination fees and gains on sales in the secondary mortgage loan market, as well as mortgage servicing revenues.
• Southern States acquisition — The July 1, 2025 merger with Southern States Bancshares added $2.83 billion in total assets, $2.27 billion in total loans and $2.47 billion in assumed deposits, strengthening Alabama and Georgia markets.

Recent performance

For full-year 2025, net income was $122.6 million and diluted EPS was $2.45, versus $116.0 million and $2.48 in 2024. Operating cash flow was $155.9 million in 2025, up from $138.8 million in 2024. Dividends per share rose to $0.76 in 2025 from $0.68 in 2024. On July 1, 2025, the company completed its merger with Southern States Bancshares, acquiring total assets of $2.83 billion and recording $107.8 million of additional goodwill. At June 30, 2026, total assets were $16.80 billion, total liabilities $14.86 billion and shareholder equity $1.94 billion.

Strategy

The company describes a community banking approach built on locally based, experienced bankers with local decision-making authority and centralized risk oversight. It seeks profitable growth in both high-growth metropolitan markets and stable community markets, deploying capital where it sees the greatest certainty of profitable growth and highest returns. Growth has come organically and through acquisitions; the 2025 Southern States merger expanded the footprint in Alabama and Georgia and strengthened Birmingham and Huntsville. Management's stated intent is to differentiate from smaller community banks through a broader product set and from larger regional and national banks through local market knowledge and faster decision-making.

Risks

• Credit and loan risk — The majority of assets are loans, so borrower nonpayment, falling collateral values or economic disruption could raise charge-offs and provisions and reduce net income and return on equity.
• Interest rate sensitivity — Net interest income, the largest contributor to net income, depends on the spread between asset yields and liability costs, both of which are influenced by Federal Reserve actions and market rates.
• Acquisition integration risk — The 10-Q risk factors cite challenges integrating acquired businesses, potential failure to realize expected cost savings and synergies, disruptions to customer and employee relationships, and diversion of management attention.
• Deposit and liquidity risk — The 10-Q cites the ability to manage unexpected outflows of uninsured deposits and to avoid selling investment securities or other assets at an unfavorable time or at a loss.

Outlook

The company's 10-Q forward-looking discussion identifies factors that could affect future results, including interest rate policy, deposit competition, credit quality, commercial real estate fundamentals, and the integration and synergy realization from acquisitions. Specific financial guidance figures are not provided in the excerpts. Management notes that cost savings and synergies from completed or future acquisitions may not be realized, or may be less than or delayed from expectations.