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FB Financial Corporation (FBK)
NYSE:FBK

FB Financial (FBK) AI Stock Analysis

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FB Financial

(NYSE:FBK)

65Neutral
FB Financial's overall score reflects strong financial fundamentals with significant revenue growth and a solid balance sheet. However, bearish technical trends and challenges in cash flow growth, combined with uncertainties from recent corporate events, temper the score. The company's strategic initiatives, including a merger, offer potential for future growth, but are balanced by market and operational challenges.

FB Financial (FBK) vs. S&P 500 (SPY)

FB Financial Business Overview & Revenue Model

Company DescriptionFB Financial Corporation (FBK) is a financial services company based in Nashville, Tennessee. It operates primarily through its subsidiary, FirstBank, which is one of the largest community banks in the Southeast United States. The company provides a wide range of commercial and consumer banking services across its footprint, including personal and business banking, mortgage lending, and wealth management services. FB Financial is dedicated to serving its community with a focus on personalized customer service and innovative financial solutions.
How the Company Makes MoneyFB Financial Corporation generates revenue primarily through its commercial and consumer banking operations. Key revenue streams include interest income from loans and investments, fees from deposit accounts, and mortgage banking income. The company earns interest income by lending to individuals and businesses and investing in securities. Non-interest income is generated through service charges, mortgage origination and servicing fees, and wealth management fees. FB Financial benefits from its strategic partnerships and a strong regional presence, which help drive customer growth and enhance its market position. The company also focuses on maintaining a diversified loan portfolio and expanding its product offerings to enhance profitability.

FB Financial Financial Statement Overview

Summary
FB Financial displays strong revenue growth and improved operational efficiency. The balance sheet is healthy with low leverage, indicating financial stability. However, the decline in free cash flow growth and slight pressure on net profit margins suggest areas for improvement. Despite these challenges, the company maintains a solid foundation in revenue generation and debt management.
Income Statement
70
Positive
FB Financial has shown a mixed performance in its income statement. The gross profit margin is solid, consistently reflecting 100% over the years due to total revenue equaling gross profit, which is typical in the banking industry where interest income is the primary component. The net profit margin was 16.0% in 2024, slightly decreasing from 25.2% in 2023, indicating some pressure on profitability. Revenue growth from 2023 to 2024 was robust at 51.9%, but this follows a previous year of revenue decline by 9.3%, suggesting volatility. EBIT margin improved significantly to 98.0% in 2024 from 45.5% in 2023, showing enhanced operational efficiency.
Balance Sheet
75
Positive
The balance sheet of FB Financial reveals strong equity levels with an equity ratio of 11.9% in 2024, indicating a stable funding base. The debt-to-equity ratio improved significantly to 0.04 in 2024, showcasing effective debt management. Return on equity was 7.4% in 2024, down from 8.3% in 2023, suggesting a slight decline in profitability but still a reasonable return for the banking sector. Overall, the balance sheet reflects a solid financial position with low leverage.
Cash Flow
60
Neutral
FB Financial's cash flow statement shows some challenges. Free cash flow decreased by 27.3% from 2023 to 2024, indicating potential constraints in cash generation. The operating cash flow to net income ratio of 1.2 in 2024 suggests that operating cash flow adequately supports net income, though lower than previous years. The free cash flow to net income ratio was 1.2 in 2024, hinting at a reasonable conversion of net income into free cash flow, albeit lower compared to some previous years.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
725.54M477.76M526.90M575.63M567.51M
Gross Profit
725.54M475.22M526.90M575.63M567.51M
EBIT
710.85M217.25M236.76M243.03M82.45M
EBITDA
0.000.00172.18M256.94M95.32M
Net Income Common Stockholders
116.03M120.22M124.56M190.28M63.62M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.66B763.13M2.29B3.35B2.37B
Total Assets
13.16B12.60B12.85B12.60B11.21B
Total Debt
60.02M468.35M485.43M218.15M293.51M
Net Debt
-60.13M-259.25M-331.08M-1.45B-903.23M
Total Liabilities
11.59B11.15B11.52B11.16B9.92B
Stockholders Equity
1.57B1.45B1.33B1.43B1.29B
Cash FlowFree Cash Flow
138.80M190.84M778.70M48.78M-275.22M
Operating Cash Flow
138.80M211.07M789.33M54.88M-269.29M
Investing Cash Flow
-294.00M-55.22M-1.74B-849.56M309.42M
Financing Cash Flow
386.76M-371.98M184.10M1.27B1.05B

FB Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price42.22
Price Trends
50DMA
45.95
Negative
100DMA
49.42
Negative
200DMA
48.45
Negative
Market Momentum
MACD
-1.37
Negative
RSI
45.14
Neutral
STOCH
68.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBK, the sentiment is Neutral. The current price of 42.22 is above the 20-day moving average (MA) of 42.22, below the 50-day MA of 45.95, and below the 200-day MA of 48.45, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FBK.

FB Financial Risk Analysis

FB Financial disclosed 36 risk factors in its most recent earnings report. FB Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FB Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HTHTH
67
Neutral
$1.84B16.335.89%2.35%2.43%14.96%
67
Neutral
$2.00B13.904.97%6.21%23.12%1092.18%
FBFBK
65
Neutral
$1.92B15.138.27%1.66%3.30%14.32%
65
Neutral
$2.20B18.5330.68%1.60%14.34%16.24%
65
Neutral
$2.03B16.065.82%3.02%4.52%7.58%
63
Neutral
$2.02B306.223.28%2.78%-17.36%-95.37%
63
Neutral
$12.32B9.527.97%79.23%12.77%-4.57%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FBK
FB Financial
42.22
5.76
15.80%
HTH
Hilltop Holdings
28.97
-0.21
-0.72%
PPBI
Pacific Premier Bancorp
20.60
-0.24
-1.15%
SYBT
Stock Yards Bancorp
74.67
30.11
67.57%
SBCF
Seacoast Banking Of Florida
23.73
0.82
3.58%
TRMK
Trustmark
33.34
4.23
14.53%

FB Financial Earnings Call Summary

Earnings Call Date: Apr 14, 2025 | % Change Since: 2.60% | Next Earnings Date: Jul 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strategic expansion plans and solid financial performance despite some challenges in non-interest expenses and charge-offs. The bank's strong capital position and efficient management of loan growth and margins were emphasized.
Highlights
Planned Combination with Southern States Banc
FB Financial announced a planned combination with Southern States Banc, emphasizing cultural fit, market opportunity, and financial profile. The integration process is on track with a Q3 expected close.
Loan Growth and Focus Areas
Loan balances grew by $169 million at an annualized rate of 7.14%, primarily in C&I and owner-occupied CRE, while reducing construction exposure. Loans held for investment totaled approximately $9.8 billion at quarter-end.
Strong Capital Ratios
The bank ended the quarter with a tangible common equity to tangible assets ratio of 10.5%, a preliminary CET1 ratio of 12.8%, and a total risk-based capital ratio of 15.2%.
Net Interest Margin Improvement
Net interest margin increased by 5 basis points to 3.55%. This was supported by decreased cost of total interest-bearing deposits by 24 basis points.
Positive Non-Interest Income Performance
Non-interest income was stable at $23 million, with improvements in mortgage banking income due to lower market interest rates and better mortgage servicing economics.
Lowlights
Higher Non-Interest Expenses
Core non-interest expenses increased to $79.2 million, up from $72.7 million in the fourth quarter, resulting in a core efficiency ratio of 59.9% compared to 54.6% previously.
Elevated Charge-Offs in C&I Portfolio
Annualized net charge-off rate was 0.14%, driven by a specific credit in the C&I portfolio that was largely reserved for but charged-off during the quarter.
Company Guidance
During the first quarter of 2025, FB Financial Corporation reported an EPS of $0.84 and an adjusted EPS of $0.85. The company achieved a pre-tax pre-provision net revenue of $51.1 million, or $52.2 million on an adjusted basis. Loan balances increased by $169 million, representing an annualized growth rate of 7.14%, primarily driven by C&I and owner-occupied CRE loans, while construction exposure was reduced. At the end of the quarter, loans held for investment totaled approximately $9.8 billion. The adjusted return on average assets was reported at 1.23%, and the adjusted return on average tangible common equity was 12.3%. FB Financial maintained a tangible common equity to tangible assets ratio of 10.5%, a preliminary CET1 ratio of 12.8%, and a total risk-based capital ratio of 15.2%. Additionally, net interest income for the quarter was $107.6 million, while non-interest income amounted to $23 million. The net interest margin increased by 5 basis points to 3.55%. The company also reported a non-interest expense of $79.5 million ($79.1 million on an adjusted basis) and a provision expense of $2.3 million.

FB Financial Corporate Events

Financial Disclosures
FB Financial Reports Strong Q1 2025 Results
Positive
Apr 14, 2025

FB Financial Corporation reported its financial results for the first quarter of 2025, showing a net income of $39.4 million, or $0.84 per diluted share, compared to $0.81 in the previous quarter and $0.59 in the first quarter of the previous year. The company experienced a 7.14% annualized increase in loans held for investment, reaching $9.77 billion, while deposits remained relatively flat at $11.20 billion. The net interest margin improved to 3.55% from 3.50% in the prior quarter. CEO Christopher T. Holmes noted the company’s solid start to the year, highlighting growth in loans and deposits despite slower economic conditions, and emphasized the company’s strong capital and liquidity positions.

Spark’s Take on FBK Stock

According to Spark, TipRanks’ AI Analyst, FBK is a Neutral.

FB Financial’s strong revenue growth, operational efficiency, and strategic expansion initiatives are significant positives. However, bearish technical trends and challenges in cash flow growth and competitive pressures in the deposit market temper the overall score. The valuation is balanced, and recent corporate events present both opportunities and uncertainties.

To see Spark’s full report on FBK stock, click here.

Executive/Board Changes
FB Financial Announces Passing of Key Shareholder
Negative
Apr 7, 2025

FB Financial Corporation announced the passing of James W. Ayers on April 1, 2025. Mr. Ayers, who owned approximately 23% of the company’s common stock and was its sole shareholder before its IPO, was instrumental in transforming FirstBank into a leading financial institution in the South. His passing also led to the automatic termination of the Shareholder’s Agreement, which allowed him to designate a portion of the company’s board members.

Spark’s Take on FBK Stock

According to Spark, TipRanks’ AI Analyst, FBK is a Outperform.

FB Financial demonstrates strong financial fundamentals with solid revenue growth and operational efficiency. The technical analysis indicates some bearish trends, but the company’s strategic initiatives, including the merger with Southern States and positive earnings call highlights, suggest potential for future growth. Valuation is moderate, providing a balanced investment case.

To see Spark’s full report on FBK stock, click here.

M&A TransactionsBusiness Operations and Strategy
FB Financial Announces Merger with Southern States
Positive
Mar 31, 2025

On March 31, 2025, FB Financial Corporation and Southern States Bancshares, Inc. announced a merger agreement where Southern States will merge into FB Financial. This strategic merger is expected to enhance FB Financial’s market presence in Alabama and Georgia, aligning with its growth strategy. Southern States’ shareholders will receive FB Financial stock, and the merger is anticipated to close by late 2025, pending regulatory and shareholder approvals.

Business Operations and Strategy
FB Financial to Present at KBW Conference 2025
Neutral
Feb 12, 2025

On February 13, 2025, FB Financial Corporation’s management will present at the KBW Winter Financial Services Conference. This presentation underscores the company’s efforts to engage with stakeholders and highlight its strategic initiatives, potentially impacting its market position and investor relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.