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FB Financial Corporation (FBK)
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FB Financial (FBK) AI Stock Analysis

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FBK

FB Financial

(NYSE:FBK)

Rating:74Outperform
Price Target:
$53.00
▲(9.19%Upside)
FB Financial demonstrates strong financial fundamentals and positive technical momentum. The company's recent merger and growth in key metrics are notable positives. However, a high P/E ratio and potential cash flow volatility present risks. The earnings call underscores optimism for future growth despite macroeconomic challenges.

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

FB Financial Business Overview & Revenue Model

Company DescriptionFB Financial Corporation (FBK) is a financial services company headquartered in Nashville, Tennessee. It operates primarily through its subsidiary, FirstBank, which provides a comprehensive range of banking services. The company serves customers in the Southeastern United States, offering a suite of financial products including commercial and consumer banking, mortgage banking, and trust and investment services. FB Financial focuses on delivering personalized banking solutions and maintaining strong community relationships.
How the Company Makes MoneyFB Financial makes money through a variety of revenue streams associated with its banking operations. The primary source of revenue is the net interest income generated from the difference between interest earned on loans and interest paid on deposits. The company also earns non-interest income through fees and service charges related to deposit accounts, mortgage banking activities, and investment advisory services. Additionally, FB Financial benefits from strategic partnerships and community-focused initiatives that enhance its market presence and customer base. The company's diversified financial services offerings and regional focus contribute significantly to its earnings.

FB Financial Earnings Call Summary

Earnings Call Date:Jul 14, 2025
(Q2-2025)
|
% Change Since: -1.36%|
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. Key highlights included a successful merger with Southern States and growth in loans and deposits, while lowlights included a significant securities transaction loss and macroeconomic challenges impacting customer behavior. The bank remains optimistic about future growth prospects.
Q2-2025 Updates
Positive Updates
Successful Merger with Southern States
FB Financial completed the merger with Southern States, receiving regulatory approval and closing the transaction within 90 days. This adds immediate scale and accretive earnings, strengthening the franchise in key cities and expanding into new markets in Georgia and Alabama.
Loan and Deposit Growth
Loans grew at an annualized rate of 4.2% and deposits at an annualized rate of 7.2% for Q2. The bank remains optimistic about mid- to high single-digit growth targets for both loans and deposits.
Positive Impact from Securities Restructure
A significant securities transaction was executed, selling $266 million in investment securities at a pretax loss, intended for reinvestment in higher-yielding assets. This is expected to enhance earnings momentum for the latter half of 2025 and 2026.
Net Interest Margin Improvement
Net interest income increased by 3.5% from the prior quarter and 8.6% from the previous year. The tax equivalent margin expanded by 13 basis points to 3.68%.
Negative Updates
Securities Transaction Loss
The bank reported a pretax securities loss of $60 million due to the sale of $266 million in investment securities. This resulted in a negative pretax pre-provision net revenue of $4.4 million.
Challenges with Macro-Economic Conditions
Unexpected macroeconomic headwinds caused some deals in the pipeline to be pushed into the latter half of 2025 as customers adopted a wait-and-see approach to uncertain and volatile market conditions.
Increased Nonperforming Loans
There was an increase in nonperforming loan balances due to large credits migrating into that classification. Each is well secured, but this indicates underlying credit concerns.
Company Guidance
In the second quarter of 2025, FB Financial Corporation reported an EPS of $0.06 and an adjusted EPS of $0.88. The company achieved a compound annual growth rate of 12.2% in tangible book value per share since its IPO. A significant transaction during the quarter involved the sale of approximately $266 million in investment securities at a pretax loss of $60 million, impacting the GAAP results with a reported pretax pre-provision net revenue of negative $4.4 million and net income of $2.9 million. Adjusted figures showed pretax pre-provision net revenue at $58.6 million and net income at $40.8 million. The quarter saw loan growth at an annualized rate of 4.2% and deposits at 7.2%, with the annualized growth for the first half of the year at 5.6% for loans and 3.4% for deposits, aligning with their mid- to high single-digit growth targets. FB Financial also announced the completion of their merger with Southern States, expected to positively impact earnings and expand their market presence, with integration of systems set by the end of Q3. The net interest margin expanded by 13 basis points to 3.68%, with net interest income at $111.4 million, reflecting a 3.5% increase from the previous quarter. Forward-looking guidance included expectations for a net interest margin of 3.70% to 3.80% in the second half of the year, along with modest growth in noninterest income and a targeted core banking efficiency ratio in the low 50s by Q4, supported by merger synergies and internal expense management.

FB Financial Financial Statement Overview

Summary
FB Financial displays strong financial performance with solid profitability, a robust balance sheet, and effective cash flow management. Despite steady revenue growth and low leverage, potential cash flow volatility and minor equity fluctuations should be monitored.
Income Statement
82
Very Positive
FB Financial shows strong profitability with a consistent Gross Profit Margin around 60%, and a healthy Net Profit Margin improving to 16.2% in TTM (Trailing-Twelve-Months). Revenue growth has been steady, with a noticeable increase in 2022. EBIT and EBITDA margins are stable, indicating efficient operations.
Balance Sheet
78
Positive
The company maintains a robust balance sheet with a low Debt-to-Equity Ratio, indicating conservative leverage. Stockholders' equity has grown steadily, supporting an improving ROE. The Equity Ratio remains strong, reflecting a solid financial position, though there is a slight decrease in equity proportion to assets.
Cash Flow
75
Positive
FB Financial demonstrates strong cash flow management with positive Free Cash Flow and an Operating Cash Flow to Net Income Ratio above 1, indicating efficient profit conversion. However, fluctuations in Free Cash Flow Growth suggest potential volatility in cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue766.77M748.98M596.35M613.25M616.50M
Gross Profit445.74M475.25M508.19M616.62M459.55M
EBITDA161.58M165.13M172.18M256.94M95.32M
Net Income116.03M120.22M124.56M190.28M63.62M
Balance Sheet
Total Assets13.16B12.60B12.85B12.60B11.21B
Cash, Cash Equivalents and Short-Term Investments1.74B1.71B2.29B3.35B2.37B
Total Debt246.55M468.35M494.99M226.52M299.69M
Total Liabilities11.59B11.15B11.52B11.16B9.92B
Stockholders Equity1.57B1.45B1.33B1.43B1.29B
Cash Flow
Free Cash Flow132.25M190.84M789.08M48.78M-275.94M
Operating Cash Flow138.80M211.07M799.71M54.88M-270.00M
Investing Cash Flow-294.00M-55.22M-1.75B-849.56M309.42M
Financing Cash Flow386.76M-371.98M184.10M1.27B1.05B

FB Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price48.54
Price Trends
50DMA
45.41
Positive
100DMA
44.92
Positive
200DMA
48.30
Positive
Market Momentum
MACD
1.12
Negative
RSI
59.94
Neutral
STOCH
71.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBK, the sentiment is Positive. The current price of 48.54 is above the 20-day moving average (MA) of 47.34, above the 50-day MA of 45.41, and above the 200-day MA of 48.30, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 71.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$2.32B10.8010.99%2.45%17.67%
78
Outperform
$2.50B19.605.82%2.49%4.52%7.58%
74
Outperform
$2.63B25.465.81%1.48%-5.60%-22.11%
73
Outperform
$2.15B14.474.94%5.96%23.09%1086.91%
72
Outperform
$2.40B18.7531.33%1.52%13.22%22.43%
71
Outperform
$2.01B15.935.89%2.77%2.60%14.96%
68
Neutral
$17.10B11.629.70%3.86%11.32%-7.37%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FBK
FB Financial
48.54
2.18
4.70%
HTH
Hilltop Holdings
31.36
-2.68
-7.87%
PPBI
Pacific Premier Bancorp
22.15
-3.14
-12.42%
SYBT
Stock Yards Bancorp
81.54
19.07
30.53%
SBCF
Seacoast Banking Of Florida
28.93
1.04
3.73%
TRMK
Trustmark
38.34
4.93
14.76%

FB Financial Corporate Events

M&A TransactionsFinancial Disclosures
FB Financial Reports Q2 2025 Financial Results
Neutral
Jul 14, 2025

FB Financial Corporation reported its financial results for the second quarter of 2025, showing a net income of $2.9 million, or $0.06 per diluted share, a decrease from the previous quarter and the same quarter last year. However, the adjusted net income was significantly higher at $40.8 million, or $0.88 per diluted share. The company experienced growth in loans and deposits, with loans held for investment increasing to $9.87 billion and deposits rising to $11.40 billion. The net interest margin improved to 3.68%, and the company repositioned its balance sheet by selling low-yielding securities, resulting in a GAAP loss but enhancing liquidity and margin. The recent merger with Southern States Bancshares, Inc. positions FB Financial well for the second half of the year.

The most recent analyst rating on (FBK) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

Executive/Board ChangesM&A Transactions
FB Financial Completes Merger with Southern States
Positive
Jul 8, 2025

On July 1, 2025, FB Financial completed its merger with Southern States Bancshares, resulting in FB Financial continuing as the surviving corporation and FirstBank as the surviving bank. Southern States shareholders received 0.800 shares of FB Financial stock per share, with the transaction valued at approximately $368.4 million. The merger expands FB Financial’s market presence and is expected to deliver long-term value for stakeholders. Additionally, J. Henry Smith IV was appointed to the board of directors, bringing extensive business management and bank governance experience.

The most recent analyst rating on (FBK) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

M&A TransactionsShareholder Meetings
FB Financial Shareholders Approve Merger Proposals
Positive
Jun 27, 2025

On June 26, 2025, FB Financial Corporation held a special shareholder meeting to discuss two key proposals related to a merger with Southern States Bancshares, Inc. The shareholders approved both the issuance of common stock for the merger and the potential adjournment of the meeting to gather additional votes if necessary, indicating strong support for the merger plan.

The most recent analyst rating on (FBK) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

M&A Transactions
FB Financial Secures Approval for Southern States Merger
Neutral
Jun 12, 2025

On June 12, 2025, FB Financial Corporation announced it had received all necessary regulatory approvals for its merger with Southern States Bancshares, Inc., with the transaction expected to close on July 1, 2025. This merger is anticipated to enhance FB Financial’s market position, although it carries potential risks related to integration and market conditions.

The most recent analyst rating on (FBK) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
FB Financial Discusses Strategic Plans at Bank Trip
Neutral
Jun 3, 2025

On June 4, 2025, FB Financial Corporation’s management team presented at the Stephens Nashville Bank Trip, discussing the company’s strategic plans and potential merger with Southern States Bancshares, Inc. The presentation highlighted forward-looking statements about the merger’s expected benefits, while also cautioning about various risks and uncertainties that could impact future performance. The company emphasized the importance of regulatory approvals and shareholder votes for the merger’s success.

The most recent analyst rating on (FBK) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

Shareholder Meetings
FB Financial Holds Annual Shareholders Meeting
Neutral
May 27, 2025

On May 22, 2025, FB Financial Corporation held its annual shareholders meeting, where 12 directors were elected to serve for one year. Shareholders approved the compensation of executive officers on a non-binding basis and ratified Crowe LLP as the independent accounting firm for 2025. However, a proposal to amend the company’s charter to eliminate supermajority voting standards did not pass.

The most recent analyst rating on (FBK) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on FB Financial stock, see the FBK Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 16, 2025