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FB Financial Corporation (FBK)
NYSE:FBK
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FB Financial
(NYSE:FBK)
70Outperform
FB Financial (FBK) vs. S&P 500 (SPY)
Market Cap
$1.95B
Dividend Yield1.67%
Average Volume (3M)178.69K
Price to Earnings (P/E)16.9
Beta (1Y)1.24
Revenue Growth1.71%
EPS Growth-3.44%
CountryUS
Employees1,490
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.47
Shares Outstanding46,617,706
10 Day Avg. Volume249,484
30 Day Avg. Volume178,688
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.00
Price to Cash Flow (P/CF)22.80
P/FCF Ratio6.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.75Price Target Upside40.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
FB Financial Business Overview & Revenue Model
Company DescriptionFB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in two segments, Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as engages in the mortgage origination business. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch networks in the southeastern United States; an internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. As of December 31, 2021, it operated 82 full-service bank branches and 9 limited-service branches locations throughout Tennessee, North Alabama, Southern Kentucky, and North Georgia; and 23 mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.
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
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.70
Positive
Balance Sheet
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.75
Positive
Cash Flow
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 725.54M | 477.76M | 526.90M | 575.63M | 567.51M | Gross Profit |
| 725.54M | 475.22M | 526.90M | 575.63M | 567.51M | EBIT |
| 710.85M | 217.25M | 236.76M | 243.03M | 82.45M | EBITDA |
| 0.00 | 0.00 | 172.18M | 256.94M | 95.32M | Net Income Common Stockholders |
| 116.03M | 120.22M | 124.56M | 190.28M | 63.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.66B | 763.13M | 2.29B | 3.35B | 2.37B | Total Assets |
| 13.16B | 12.60B | 12.85B | 12.60B | 11.21B | Total Debt |
| 60.02M | 468.35M | 485.43M | 218.15M | 293.51M | Net Debt |
| -60.13M | -259.25M | -331.08M | -1.45B | -903.23M | Total Liabilities |
| 11.59B | 11.15B | 11.52B | 11.16B | 9.92B | Stockholders Equity |
| 1.57B | 1.45B | 1.33B | 1.43B | 1.29B |
| Cash Flow | Free Cash Flow | |||
| 138.80M | 190.84M | 778.70M | 48.78M | -275.22M | Operating Cash Flow |
| 138.80M | 211.07M | 789.33M | 54.88M | -269.29M | Investing Cash Flow |
| -294.00M | -55.22M | -1.74B | -849.56M | 309.42M | Financing Cash Flow |
| 386.76M | -371.98M | 184.10M | 1.27B | 1.05B |
FB Financial Technical Analysis
Negative
41.89
Price Trends
49.44
Negative
51.62
Negative
48.17
Negative
Market Momentum
-0.70
Negative
38.54
Neutral
33.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBK, the sentiment is Negative. The current price of 41.89 is below the 20-day moving average (MA) of 46.52, below the 50-day MA of 49.44, and below the 200-day MA of 48.17, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 33.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.35B | 11.79 | 8.85% | 3.83% | 5.54% | -8.57% | |
76 Outperform | $5.60B | 14.04 | 10.38% | 2.96% | 8.83% | 3.77% | |
70 Outperform | $1.95B | 16.92 | 7.68% | 1.67% | 1.71% | -3.44% | |
69 Neutral | $7.95B | 13.96 | 15.13% | 3.37% | 7.81% | -2.49% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% | |
58 Neutral | $9.84B | 14.12 | 8.70% | 3.49% | 4.56% | -13.90% | |
47 Neutral | $2.51B | ― | -22.16% | 2.50% | 14.09% | -729.23% |
* Financial Sector Average
Performance Comparison
FBK
FB Financial
41.89
6.61
18.74%
CFR
Cullen/Frost Bankers
111.71
5.04
4.72%
FRME
First Merchants
36.53
4.05
12.47%
FHN
First Horizon
17.21
3.00
21.11%
HOMB
Home Bancshares
25.83
2.78
12.06%
IBTX
Independent Bank Group
60.67
18.95
45.42%
FB Financial Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -19.77% | Next Earnings Date: Apr 14, 2025
Earnings Call Sentiment Positive
FB Financial reported strong financial performance with significant growth in EPS and net revenue. The strategic expansion into new markets and a strong capital position are positive indicators. However, challenges such as a decrease in net interest margin, elevated charge-offs, and a competitive deposit market were noted.Highlights
Strong Financial Performance
FB Financial reported a full year EPS of $2.48 or an adjusted EPS of $3.40, representing a 13% year-over-year increase. Full year pretax pre-provision net revenue was $158.7 million, or $217.1 million on an adjusted basis, which represents a 20% year-over-year increase.
Asset and Deposit Growth
Total assets grew by $553 million or approximately 4.4%, funded through growth of core deposit balances of $343.5 million or about 3.3%.
Strategic Expansion
FB Financial expanded into new markets with the addition of 9 new revenue-producing bankers in the fourth quarter, totaling 32 for the year, and announced expansion into Asheville, North Carolina.
Capital and Liquidity Strength
The capital position remains strong with a tangible common equity to tangible assets of 10.2%, a preliminary CET1 ratio of 12.8%, and a preliminary total risk-based capital ratio of 15.2%.
Lowlights
Decrease in Net Interest Margin
Net interest margin was down a couple of basis points to 3.5% due to carrying excess interest-bearing cash during the quarter.
Elevated Charge-Off Levels
Charge-off levels were elevated this quarter due to the full charge-off of a single previously reserved C&I relationship totaling $2.5 million, driven by challenges specific to the borrower.
Competitive Deposit Market
The deposit market remains competitive with CDs in some markets still above 4.5%, impacting the cost of funds.
Company Guidance
During the FB Financial Corporation's Fourth Quarter 2024 Earnings Call, Chris Holmes, President and CEO, outlined several key metrics that underscore the company's robust performance and strategic focus. For Q4, FB Financial reported an EPS of $0.81 and an adjusted EPS of $0.85, while full-year EPS stood at $2.48 or $3.40 on an adjusted basis, marking a 13% year-over-year increase. The tangible book value per share, excluding the impact of AOCI, has grown at a compound annual growth rate of 12.9% since 2016. The company achieved a GAAP return on average assets of 1.14% and a return on average tangible common equity of 11.5%. Full-year pretax pre-provision net revenue reached $158.7 million, or $217.1 million on an adjusted basis, reflecting a 20% increase compared to the previous year. Holmes highlighted the company's strong capital position with a tangible common equity to tangible assets ratio of 10.2%, a preliminary CET1 ratio of 12.8%, and a total risk-based capital ratio of 15.2%. For 2025, FB Financial plans to continue focusing on organic growth, aiming for high single-digit to low double-digit loan growth, and is actively exploring strategic bank acquisitions while maintaining strong capital ratios.FB Financial Corporate Events
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.
Financial Disclosures
FB Financial Reports Strong Q4 2024 Financial Results
Positive
Jan 21, 2025
FB Financial Corporation reported its financial results for the fourth quarter of 2024, highlighting a significant increase in net income and earnings per share compared to previous periods. The company experienced growth in both loans and deposits, resulting in increased net interest income and an improved return on average assets, positioning it strongly for 2025.
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.