FB Financial Corporation Reports Increased Net Income and Strategic Merger Agreement

FB Financial Corporation reported a significant increase in its financial performance for the first quarter of 2025, with net income rising to $39.4 million, compared to $28.0 million in the same period last year. This translates to diluted earnings per share of $0.84, up from $0.59 in the prior year. The company's return on average assets (ROAA) improved to 1.21%, while return on average equity (ROAE) increased to 10.1%. Net interest income also saw a rise, reaching $107.6 million, compared to $99.5 million in the previous year, driven by a net interest margin increase to 3.55%.

In terms of operational changes, FB Financial's total assets decreased slightly to $13.14 billion from $13.16 billion at the end of 2024. The company’s loan portfolio, which is a critical component of its earnings, grew to $9.77 billion, up from $9.60 billion at the end of the previous year. The allowance for credit losses on loans held for investment was $150.5 million, representing 1.54% of total loans, a slight decrease from 1.58% at the end of 2024. The company also recognized a provision for credit losses of $2.3 million during the quarter, reflecting ongoing monitoring and adjustments based on economic conditions.

FB Financial announced a strategic development with the signing of a merger agreement to acquire Southern States Bancshares, Inc., which is expected to close in the third quarter of 2025, pending regulatory and shareholder approvals. This acquisition is anticipated to enhance the company's market presence and operational capabilities, particularly in the southeastern United States. As of March 31, 2025, the company operated 77 full-service branches across Tennessee, Alabama, Kentucky, and North Georgia, with plans for further geographic expansion.

The company’s deposit base remained stable, totaling $11.20 billion, with noninterest-bearing deposits slightly increasing to $2.16 billion. However, interest-bearing deposits decreased to $9.04 billion, reflecting management's strategy to reduce higher-cost deposits in response to changing market conditions. The overall employee headcount increased, contributing to a rise in salaries and benefits, which were among the factors driving noninterest expenses up to $79.5 million from $72.4 million in the previous year.

Looking ahead, FB Financial remains focused on managing its interest rate risk and optimizing its asset-liability composition to enhance profitability. The company is also committed to maintaining strong credit quality and monitoring its loan portfolio closely, particularly in light of the ongoing economic uncertainties. The management expressed confidence in the company's ability to navigate these challenges while pursuing growth opportunities through strategic acquisitions and organic expansion.