FB Financial (FBK) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 1.39%
• Average Volume (3M): 385.79K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.11
• Revenue Growth: -5.80%
• EPS Growth: -22.11%
• Country: US
• Employees: 1,490
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 53,848,880
• 10 Day Avg. Volume: 265,951
• 30 Day Avg. Volume: 385,789
• PEG Ratio: -6.65
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 18.17
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 19.45
• 1Y Price Target: $59.50
• Price Target Upside: 11.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Neutral
• Price Target: $59.00 ▲(10.82% Upside)

FB Financial's overall stock score reflects a stable financial position with strong profitability and positive technical momentum. The successful merger and strategic positioning for future growth are significant positives. However, recent revenue declines, high valuation, and market volatility present challenges.

Positive Factors

Successful Merger Execution

The swift execution of the merger with Southern States enhances FB Financial's market presence and is expected to deliver long-term value, showcasing effective integration efforts and strategic growth.

Strong Profitability Margins

Strong profitability margins indicate efficient operations and the ability to generate substantial profit from revenue, supporting long-term financial health and competitive positioning.

Improved Cash Flow Management

Significant improvement in free cash flow growth reflects enhanced cash management practices, which strengthen financial flexibility and support future investment opportunities.

Negative Factors

Revenue Decline

A decline in revenue growth suggests challenges in maintaining sales momentum, which could impact long-term profitability and market competitiveness if not addressed.

Low Operating Cash Flow Conversion

Low operating cash flow conversion indicates potential difficulties in turning income into cash, which may affect liquidity and the ability to fund operations or growth initiatives.

Nonperforming Loan Increase

An increase in nonperforming loans can strain financial resources and require additional provisions, potentially impacting profitability and risk management strategies.

FB Financial Business Overview & Revenue Model

Company Description

FB Financial Corporation (FBK) is a bank holding company based in the United States, primarily engaged in the provision of banking and financial services through its subsidiary, FirstBank. The company operates in the financial sector, offering a range of products including commercial and retail banking, mortgage lending, and wealth management services. With a focus on serving individuals, businesses, and communities, FBK aims to deliver personalized financial solutions and foster long-term relationships with its clients.

How the Company Makes Money

FB Financial generates revenue through multiple channels, primarily from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. This is a significant revenue stream for the company as it lends to consumers and businesses while maintaining a competitive interest rate on its deposit accounts. Additionally, FBK earns non-interest income through fees associated with various banking services, such as account maintenance, transaction services, and wealth management. The company also benefits from mortgage origination fees and gains from the sale of loans. Strategic partnerships with local businesses and community organizations enhance its market presence and drive customer acquisition, further contributing to its overall earnings.

FB Financial Financial Statement Overview

Summary

FB Financial displays strong financial performance with solid profitability, a robust balance sheet, and effective cash flow management. The company benefits from steady revenue growth and low leverage, though potential cash flow volatility and minor equity fluctuations should be monitored.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	730.56M	766.77M	748.98M	596.35M	613.25M	616.50M
Gross Profit	413.60M	445.74M	475.25M	508.19M	616.62M	459.55M
EBITDA	111.70M	161.58M	165.13M	172.18M	256.94M	95.32M
Net Income	90.38M	116.03M	120.22M	124.56M	190.28M	63.62M
Balance Sheet
Total Assets	13.35B	13.16B	12.60B	12.85B	12.60B	11.21B
Cash, Cash Equivalents and Short-Term Investments	2.50B	1.74B	1.71B	2.29B	3.35B	2.37B
Total Debt	223.77M	246.55M	468.35M	494.99M	226.52M	299.69M
Total Liabilities	11.74B	11.59B	11.15B	11.52B	11.16B	9.92B
Stockholders Equity	1.61B	1.57B	1.45B	1.33B	1.43B	1.29B
Cash Flow
Free Cash Flow	119.48M	132.25M	190.84M	789.08M	48.78M	-275.94M
Operating Cash Flow	127.23M	138.80M	211.07M	799.71M	54.88M	-270.00M
Investing Cash Flow	-422.69M	-294.00M	-55.22M	-1.75B	-849.56M	309.42M
Financing Cash Flow	660.28M	386.76M	-371.98M	184.10M	1.27B	1.05B

FB Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 53.24 is above the 20-day moving average (MA) of 52.63, above the 50-day MA of 49.88, and above the 200-day MA of 48.28, indicating a bullish trend. The MACD of 1.17 indicates Positive momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 21.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBK.

FB Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRMK	80 Outperform	$2.42B	11.30	10.99%	2.35%	17.17%	―
SBCF	75 Outperform	$2.71B	18.93	6.31%	2.34%	5.70%	18.72%
HTH	73 Outperform	$2.19B	15.64	6.62%	2.04%	3.16%	27.33%
PPBI	72 Outperform	$2.38B	17.16	4.59%	5.39%	23.85%	―
FBK	70 Neutral	$2.86B	27.59	5.81%	1.39%	-5.80%	-22.11%
SYBT	69 Neutral	$2.28B	17.74	13.51%	1.60%	13.28%	22.43%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%

FB Financial Corporate Events

FB Financial Redeems Subordinated Notes on September 2

On September 2, 2025, FB Financial Corporation redeemed all of its outstanding 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030. This redemption was executed at a price equal to 100% of the principal amount plus accrued interest, aligning with the terms set in August 2020.

FB Financial Discusses Merger at Bank Conference

On September 3, 2025, FB Financial Corporation’s management team presented at the Raymond James U.S. Bank Conference, discussing the company’s strategies and expectations, including the merger with Southern States Bancshares, Inc. The presentation highlighted potential impacts on operations and market positioning, while also addressing risks and uncertainties related to economic conditions and the merger.

FB Financial Reports Q2 2025 Financial Results

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.

FB Financial Completes Merger with Southern States

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.

FB Financial Shareholders Approve Merger Proposals

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.

FB Financial Secures Approval for Southern States Merger

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.