FB Financial Stock

FB Financial Corporation operates as the bank holding company for FirstBank that provides a comprehensive suite of commercial and consumer banking services to clients in select markets primarily in Tennessee, Kentucky, Alabama and North Georgia.

The company's footprint includes full-service bank branches and several other limited service banking, ATM and mortgage loan production locations serving the Tennessee metropolitan markets of Nashville, Chattanooga (including North Georgia), Knoxville, Memphis, and Jackson in addition to the metropolitan markets of Birmingham, Florence and Huntsville, Alabama and Bowling Green, Kentucky. The company also operates in community markets. Further, the company also provides mortgage banking services utilizing its bank branch network and mortgage banking offices located throughout the southeastern United States. The company's bankers utilize their local knowledge and relationships to deliver timely solutions to its clients.

Markets

The company's market footprint is the southeastern United States, centered around Tennessee, and includes portions of Alabama, North Georgia and Kentucky.

The company's core client profile across its footprint includes retail and wealth consumers, small businesses, and corporate clients and owners. The company targets business clients with substantial operating history. The company's typical business client would keep business deposit accounts with it, and it would look to provide banking services to the owners and employees of the business as well. The company also has an active consumer lending business that includes deposit products, mortgages, home equity lines and small consumer finance loans. The company continuously strives to build deeper relationships by actively advising clients and offering products that meet their banking needs.

Business Strategy

The key elements of the company's strategy are to pursue opportunistic and strategic acquisitions; and develop niche banking.

Loan Categories

Commercial and Industrial Loans

Commercial and industrial loans are typically made to small- and medium-sized manufacturing, wholesale, retail and service businesses, and farmers for working capital and operating needs and business expansions. This category also includes loans secured by manufactured housing receivables made primarily to manufactured housing communities. Commercial and industrial loans generally include lines of credit and loans with maturities of five years or less. Commercial and industrial loans are generally made with operating cash flows as the primary source of repayment, but may also include collateralization by inventory, accounts receivable, equipment and personal guarantees.

Construction Loans

Construction loans include commercial construction, land acquisition and land development loans and single-family interim construction loans to small- and medium-sized businesses and individuals. These loans are generally secured by the land or the real property being built and are made based on the company's assessment of the value of the property on an as-completed basis and repayment depends upon project completion and sale, refinancing, or operation of the real estate.

1-4 Family Mortgage Loans

The company's residential real estate 1-4 family mortgage loans are primarily made with respect to and secured by single family homes, including manufactured homes with real estate, which are both owner-occupied and investor owned. Repayment depends primarily upon the cash flow of the borrower, as well as the value of the real estate collateral.

Residential Line of Credit Loans

The company's residential line of credit loans are primarily revolving, open-end lines of credit secured by 1-4 residential properties. Repayment depends primarily upon the cash flow of the borrower, as well as the value of the real estate collateral.

Multi-Family Residential Loans

The company's multi-family residential loans are primarily secured by multi-family properties, such as apartments and condominium buildings. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral.

Commercial Real Estate Owner-Occupied Loans

The company's commercial real estate owner-occupied loans include loans to finance commercial real estate owner occupied properties for various purposes, including use as offices, warehouses, production facilities, health care facilities, retail centers, restaurants, churches and agricultural based facilities. Commercial real estate owner-occupied loans are typically repaid through the ongoing business operations of the borrower.

Commercial Real Estate Non-Owner Occupied Loans

The company's commercial real estate non-owner occupied loans include loans to finance commercial real estate investment properties for various purposes, including use as offices, warehouses, health care facilities, hotels, mixed-use residential/commercial, manufactured housing communities, retail centers, multifamily properties, assisted living facilities and agricultural based facilities. Commercial real estate non-owner occupied loans are typically repaid with the funds received from the sale or refinancing of the property or rental income from such property.

Consumer and Other Loans

Consumer and other loans include loans to individuals for personal, family and household purposes, including car, boat and other recreational vehicle loans, manufactured homes (without real estate) and personal lines of credit. Consumer loans are generally secured by vehicles and other household goods, with repayment depending primarily on the cash flow of the borrower. Other loans also include loans to states and political subdivisions in the U.S. and are repaid through tax revenues or refinancing.

Deposits

As of December 31, 2023, the company's deposits included noninterest-bearing demand; interest-bearing demand; money market; savings deposits; customer time deposits; and brokered and internet time deposits.

Investment Portfolio

As of December 31, 2023, the company's investment portfolio included U.S. Treasury securities; U.S. government agency securities; Municipal securities; Mortgage-backed securities - residential and commercial; and Corporate securities.

Supervision and Regulation

The bank regulatory framework, involving the supervision, regulation, and examination of the bank by bank regulatory agencies are intended primarily for the protection of consumers, bank depositors and the Deposit Insurance Fund of the FDIC, rather than holders of the company's capital stock.

As a registered bank holding company, the company is subject to ongoing regulation, supervision, and examination by the Federal Reserve under the Bank Holding Company Act of 1956, as amended.

The bank is a Tennessee state-chartered bank that is not a member of the Federal Reserve System, and is subject to ongoing regulation, supervision, and examination by the FDIC and the bank's state banking regulator, the Tennessee Department of Financial Institutions.

The bank's deposits are insured by the deposit insurance fund of the FDIC up to applicable legal limits. The FDIC charges deposit insurance assessments to FDIC-insured institutions, including the bank, to fund and support the DIF. The rate of these deposit insurance assessments is based on, among other things, the risk characteristics of the bank. The FDIC has the power to terminate the bank's deposit insurance if it determines the bank is engaging in unsafe or unsound practices. Federal banking laws provide for the appointment of the FDIC as receiver in the event the bank were to fail, such as in connection with undercapitalization, insolvency, unsafe or unsound conditions or other financial distress. In a receivership, the claims of the bank's depositors (and those of the FDIC as subrogee of the bank) would have priority over other general unsecured claims against the bank.

The company is also subject to the disclosure and regulatory requirements of the Securities Act and the Exchange Act, both as administered by the SEC. The company's common stock is listed on the New York Stock Exchange under the trading symbol FBK and, therefore, is subject to the rules of the NYSE for listed companies.

The company is also subject to other rules regarding its compensation practices, including the say-on-pay and say-on-golden-parachute requirements of the Dodd-Frank Act and the requirement to have an independent compensation committee, and the requirement to adopt policies mandating the clawback of excess incentive-based compensation earned by a current or former executive officer during the three fiscal years preceding the date the listed company is required to prepare an accounting restatement.

The bank is a Tennessee state-chartered bank that is not a member of the Federal Reserve System, and is subject to ongoing regulation, supervision, and examination by the FDIC and the bank's state banking regulator, the Tennessee Department of Financial Institutions. The TDFI and FDIC supervise and regulate all areas of the bank's operations including, without limitation, the making of loans, the issuance of securities, the conduct of the bank's corporate affairs, the satisfaction of capital adequacy requirements, the payment of dividends, and the establishment or closing of banking offices. The FDIC is the bank's primary federal regulatory agency, which regularly examines the bank's operations and financial condition and compliance with federal consumer protection laws. In addition, the bank's deposit accounts are insured by the FDIC to the maximum extent permitted by law, and the FDIC has certain enforcement powers over the bank. Various Federal and State consumer laws and regulations apply to the bank, including state consumer laws and regulations that also affect the operations of the bank, including state usury laws, consumer credit and equal credit opportunity laws, and fair credit reporting. The bank and certain of its subsidiaries are also prohibited from engaging in certain tying arrangements in connection with extensions of credit, leases or sales of property, or furnishing products or services. The bank's deposit accounts are currently insured by the DIF, generally up to a maximum of $250,000 per separately insured depositor. The bank pays deposit insurance assessments to the FDIC to be insured by the DIF.

The bank is subject to regulations of the Federal Reserve Act, or FRA, and the Federal Reserve's Regulation W, as made applicable to state nonmember banks by the FDIA. The bank received a satisfactory rating on its most recent CRA assessment.

The bank is a member of the Federal Home Loan Bank of Cincinnati. The bank is subject to regulations implementing the privacy protection provisions of GLBA. The bank is subject to regulatory guidelines establishing standards for safeguarding customer information. The bank is subject to regulations implementing the privacy protection provisions of GLBA. The company is subject to a broad array of federal and state laws designed to protect consumers in connection with its lending activities, including the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Electronic Funds Transfer Act, and, in some cases, their respective state law counterparts. The CFPB has broad regulatory, supervisory and enforcement authority over the company's offering and provision of consumer financial products and services under these laws.

History

The company was founded in 1906. It was incorporated in 1984. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016.