FB Financial Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>FB Financial Corp filed its quarterly 10-Q report for Q1 2024, detailing financial performance and operations.</b>

AI Summary

FB Financial Corp (FBK) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. FB Financial Corp filed a 10-Q report for the quarter ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's former name was First South Bancorp, Inc., with a name change effective July 31, 2015. FB Financial Corp is incorporated in Tennessee (TN) and operates under the SIC code 6022 (State Commercial Banks). The filing includes data related to various financial instruments and accounts, such as deposit accounts, mortgage banking, and investment advisory services.

Why It Matters

For investors and stakeholders tracking FB Financial Corp, this filing contains several important signals. This 10-Q filing provides investors with an updated view of FB Financial Corp's financial health and operational activities for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's performance against previous periods and its strategic direction in the commercial banking sector.

Risk Assessment

Risk Level: medium — FB Financial Corp shows moderate risk based on this filing. The company operates in the highly regulated state commercial banking sector, which carries inherent market and operational risks. Specific details on these risks are typically elaborated in the 'Risk Factors' section of the full filing.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to assess FB Financial Corp's current financial standing and future outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Quarterly report filing)
• 2024-01-01 — Reporting Period Start Date (Quarterly report filing)
• 6022 — Standard Industrial Classification (State Commercial Banks)

Key Players & Entities

• FB Financial Corp (company) — Filer of the 10-Q report
• First South Bancorp, Inc. (company) — Former name of FB Financial Corp
• Tennessee (location) — State of incorporation for FB Financial Corp

FAQ

Industry Context

FB Financial Corp operates within the state commercial banking industry, a sector characterized by its sensitivity to interest rate changes, economic conditions, and regulatory oversight.

Regulatory Implications

As a state commercial bank, FB Financial Corp is subject to regulations from federal and state authorities, including the Federal Reserve and state banking departments, impacting its operations and capital requirements.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024 to understand revenue streams and expenses.
2. Examine any disclosed risk factors to assess potential challenges and mitigation strategies.
3. Compare Q1 2024 performance metrics with historical data and industry benchmarks.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for FB Financial Corp in the fiscal year 2024, providing an update on its financial position and performance compared to previous periods.

Key Financial Figures

• $1.00 — ich registered Common Stock, Par Value $1.00 Per Share FBK New York Stock Exchange

Filing Documents

• fbk-20240331.htm (10-Q) — 4332KB
• ex101fbkedmondsonamendedan.htm (EX-10.1) — 189KB
• ex102fbkhamiltonamendedand.htm (EX-10.2) — 188KB
• ex103fbkhickmanamendedandr.htm (EX-10.3) — 191KB
• ex104fbkholmesamendedandre.htm (EX-10.4) — 199KB
• ex105fbkmetteeamendedandre.htm (EX-10.5) — 186KB
• ex106fbkpeeryamendedandres.htm (EX-10.6) — 209KB
• ex107fbksimsamendedandrest.htm (EX-10.7) — 196KB
• ex108fbk2024psuawardagreem.htm (EX-10.8) — 130KB
• ex109fbk2024rsuawardagreem.htm (EX-10.9) — 68KB
• a1q24ex-311.htm (EX-31.1) — 14KB
• a1q24ex-312.htm (EX-31.2) — 14KB
• a1q24ex-321.htm (EX-32.1) — 11KB
• image_0.jpg (GRAPHIC) — 28KB
• image_02.jpg (GRAPHIC) — 21KB
• image_02a.jpg (GRAPHIC) — 21KB
• image_02b.jpg (GRAPHIC) — 21KB
• image_02c.jpg (GRAPHIC) — 21KB
• image_1.jpg (GRAPHIC) — 197KB
• 0001649749-24-000119.txt (&nbsp;) — 22421KB
• fbk-20240331.xsd (EX-101.SCH) — 82KB
• fbk-20240331_cal.xml (EX-101.CAL) — 147KB
• fbk-20240331_def.xml (EX-101.DEF) — 559KB
• fbk-20240331_lab.xml (EX-101.LAB) — 1030KB
• fbk-20240331_pre.xml (EX-101.PRE) — 868KB
• fbk-20240331_htm.xml (XML) — 4800KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Glossary Of Abbreviations And Acronyms 3

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets as of March 31, 202 4 (Unaudited) and December 31, 202 3 4 Consolidated Statements of Income (Unaudited) for the three months ended March 31 , 202 4 and 202 3 5 Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended March 31 , 202 4 and 20 23 6 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) for the three months ended March 31, 202 4 and 202 3 7 Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31 , 202 4 and 202 3 8 Condensed Notes to Consolidated Financial Statements (Unaudited) 10

Management's Discussion and Analysis of Financial Condition and Results of Operation

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation 45

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 78

Controls and Procedures

Item 4. Controls and Procedures 80

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 81

Risk Factors

Item 1A. Risk Factors 81

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81

Other Information

Item 5. Other Information 81

Exhibits

Item 6. Exhibits 82

SIGNATURES

SIGNATURES 83 2 PART I GLOSSARY OF ABBREVIATIONS AND ACRONYMS As used in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, references to "we," "our," "us," "FB Financial," or "the Company" refer to FB Financial Corporation, a Tennessee corporation, and our wholly-owned banking subsidiary, FirstBank, a Tennessee state-chartered bank, unless otherwise indicated or the context otherwise requires. References to "Bank" or "FirstBank" refer to FirstBank, our wholly-owned banking subsidiary. The acronyms and abbreviations identified below are used in the Notes to the consolidated financial statements (unaudited) as well as in the Management's discussion and analysis of financial condition and results of operations. You may find it helpful to refer to this page as you read this Report. ACL Allowance for credit losses FHLB Federal Home Loan Bank AFS Available-for-sale GAAP U.S. generally accepted accounting principles ALCO Asset Liability Management Committee GDP Gross domestic product ASC Accounting Standard Codification GNMA Government National Mortgage Association ASU Accounting Standard Update HFI Held for investment Bank FirstBank, subsidiary bank HFS Held for sale CD Certificate of Deposit NIM Net interest margin CECL Current expected credit losses OREO Other real estate owned Company FB Financial Corporation PSU Performance-based restricted stock units CPR Conditional prepayment rate Report Form 10-Q for the quarterly period ended March 31, 2024 CRE Commercial real estate ROAA Return on average assets EPS Earnings per share ROAE Return on average common equity ESPP Employee Stock Purchase Plan ROATCE Return on average tangible common equity EVE Economic value of equity RSU Restricted stock units FASB Financial Accounting Standards Board SEC U.S. Securities and Exchange Commission FDIC Federal Deposit Insurance Corporation SOFR Secured overnight financing rate FDM Financial Difficulty Modification TDFI Tennessee Departm

Notes to consolidated financial statements

Notes to consolidated financial statements (Unaudited) (Dollar amounts are in thousands, except share and per share amounts) Note (1)— Basis of presentation Overview and presentation FB Financial Corporation (the "Company") is a financial holding company headquartered in Nashville, Tennessee. The Company operates primarily through its wholly-owned subsidiary bank, FirstBank (the "Bank") and its subsidiaries. As of March 31, 2024, the Bank had 76 full-service branches throughout Tennessee, Alabama, Kentucky and North Georgia, and a mortgage business with office locations across the Southeast, which primarily originates loans to be sold to third party private investors or government sponsored agencies in the secondary market. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with U.S. GAAP interim reporting requirements and general banking industry guidelines, and therefore, do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported results of operations for the reporting periods and the related disclosures. Although management's estimates contemplate current conditions and how they are expected to change in the future,

Notes to consolidated financial statements

Notes to consolidated financial statements (Unaudited) (Dollar amounts are in thousands, except share and per share amounts) The following is a summary of the basic and diluted earnings per common share calculations for each of the periods presented: Three Months Ended March 31, 2024 2023 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 27,950 $ 36,381 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Basic earnings per common share $ 0.60 $ 0.78 Diluted earnings per common share: Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Weighted average diluted shares contingently issuable (1) 123,991 85,536 Weighted average diluted shares outstanding 46,998,873 46,765,154 Diluted earnings per common share $ 0.59 $ 0.78 (1) Excludes 2,949 and 159,946 restricted stock units outstanding considered to be antidilutive for the three months ended March 31, 2024 and 2023 , respectively. Recently adopted accounting standards: In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." The FASB issued this update to clarify the guidance in ASC 820, "Fair Value Measurement," when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, to amend a related illustrative example, and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company adopted this update effective January 1, 2024. The adoption did not have an impact on the Company's consolidated financial statements or related disclosures. In Marc

Notes to consolidated financial statements

Notes to consolidated financial statements (Unaudited) (Dollar amounts are in thousands, except share and per share amounts) beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is evaluating the impact this will have on the Company's consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-08, "Intangibles – Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets." This update requires entities to present crypto assets measured at fair value separately from other intangible assets on the balance sheet and reflect changes from remeasurement in the net income. Additionally, an entity that receives crypto assets as noncash consideration in the ordinary course of business and converts them nearly immediately into cash is required to classify those cash receipts as cash flows from operating activities. Lastly, the update requires entities to provide interim and annual disclosures about the types of crypto assets they hold and any changes in their holdings of crypto assets. While the Company does not currently hold or facilitate transactions with crypto assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto asset activities. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This ASU requires disclosures of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations

Notes to consolidated financial statements

Notes to consolidated financial statements (Unaudited) (Dollar amounts are in thousands, except share and per share amounts) Note (2)— Investment securities The following tables summarize the amortized cost, allowance for credit losses and fair value of the AFS debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at March 31, 2024 and December 31, 2023: March 31, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 416,953 $ 145 $ ( 1,171 ) $ — $ 415,927 Mortgage-backed securities - residential 984,473 — ( 158,259 ) — 826,214 Mortgage-backed securities - commercial 17,899 — ( 1,284 ) — 16,615 Municipal securities 194,470 45 ( 22,843 ) — 171,672 U.S. Treasury securities 30,985 — ( 128 ) — 30,857 Corporate securities 3,500 — ( 103 ) — 3,397

View Full Filing

View this 10-Q filing on SEC EDGAR