FB Financial Corporation reported significant financial performance improvements for the third quarter of 2025, driven largely by its recent merger with Southern States Bancshares, Inc. The company achieved a net income of $23.4 million, a substantial increase from $10.2 million in the same quarter of the previous year. This translated to diluted earnings per share of $0.43, compared to $0.22 in the prior year. The net interest income rose to $147.2 million, up from $106.0 million, reflecting a net interest margin increase to 3.95% from 3.55%. The growth in net interest income was primarily attributed to a higher volume of loans held for investment (HFI) following the merger, alongside a decrease in rates paid on interest-bearing deposits.
In terms of operational metrics, the company’s total assets reached $16.24 billion as of September 30, 2025, compared to $13.16 billion at the end of 2024. The loan portfolio expanded significantly, with loans HFI increasing to $12.30 billion from $9.60 billion. The allowance for credit losses on loans HFI also rose to $185.0 million, representing 1.50% of total loans HFI, compared to 1.58% at the end of 2024. The increase in the allowance was largely due to the initial provision for credit losses on acquired loans from the Southern States merger.
Strategically, the merger with Southern States, completed on July 1, 2025, added 13 branches and expanded FB Financial's footprint in Alabama and Georgia. The merger involved the acquisition of total assets of $2.83 billion and total loans of $2.27 billion, significantly enhancing the company's market presence. The transaction resulted in the recognition of $107.8 million in goodwill and $30.8 million in core deposit intangibles, which are being amortized over ten years.
The company also reported a notable increase in noninterest income, which amounted to $26.6 million for the quarter, a recovery from a loss of $16.5 million in the previous year. This improvement was primarily due to the absence of significant losses on investment securities, which had impacted the prior year's results. Noninterest expenses increased to $109.9 million, driven by higher salaries and benefits due to increased headcount from the merger, as well as merger-related costs totaling $16.1 million.
Looking ahead, FB Financial Corporation remains optimistic about its growth trajectory, bolstered by the Southern States merger and a focus on expanding its loan portfolio while managing credit risk effectively. The company anticipates that the integration of Southern States will yield operational efficiencies and enhance its competitive position in the banking sector.
About FB Financial Corp
FB Financial Corporation is a Tennessee-based bank holding company operating FirstBank, which provides commercial and consumer banking services across the southeastern U.S. The company focuses on community banking with personalized, relationship-driven service, offering loans, deposits, mortgage, treasury, and wealth management products. Its business model emphasizes local decision-making, strategic growth through organic expansion and acquisitions, and risk management to serve diverse markets and customer segments.
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