The Top 5 Analyst Questions From FB Financial’s Q4 Earnings Call

Regional banking company FB Financial reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 33.9% year on year to $178.4 million. Its non-GAAP profit of $1.16 per share was 3.3% above analysts’ consensus estimates.

FB Financial (FBK) Q4 CY2025 Highlights:

• Revenue: $178.4 million vs analyst estimates of $175.1 million (33.9% year-on-year growth, 1.9% beat)
• Adjusted EPS: $1.16 vs analyst estimates of $1.12 (3.3% beat)
• Adjusted Operating Income: $76.72 million vs analyst estimates of $82.05 million (43% margin, 6.5% miss)
• Market Capitalization: $3.19 billion

StockStory’s Take

FB Financial’s fourth quarter saw revenue and adjusted earnings per share come in above Wall Street expectations, yet the market responded negatively to the results. Management attributed the mixed reaction to softer-than-expected organic growth in both loans and deposits, which was partially offset by strong net interest margin management and low credit costs. CEO Christopher T. Holmes acknowledged that distractions from the recent Southern States Bank acquisition, combined with economic conditions and organizational changes, contributed to muted organic growth. He described the quarter’s profitability as within the company’s desired range, while highlighting that organic growth was the main area of underperformance.

Looking ahead, FB Financial’s leadership is focused on reigniting organic loan and deposit growth, leveraging its expanded footprint and newly integrated teams. Management expects margin resilience to continue, supported by disciplined deposit pricing and targeted talent additions across key markets. CEO Holmes emphasized that the company’s top priority for the coming year is to deepen customer relationships and enhance the client experience, stating, “Through this simple action, we’ll deepen relationships, provide better products and service, and acquire more new associates and customers.” The company remains open to additional M&A opportunities if they align with strategic objectives, but organic growth and customer focus are at the forefront of its 2026 plans.

Key Insights from Management’s Remarks

FB Financial’s management connected the quarter’s performance to margin management, expense discipline, and the integration of Southern States Bank, while also identifying competitive talent acquisition and client growth as future priorities.

• Margin expansion through deposit management: The bank achieved a higher net interest margin, even as rate cuts and competitive pressures persisted, by actively repricing deposits and benefiting from paying off higher-cost debt. CFO Michael M. Mettee noted, “We were able to manage our liability side of the balance sheet to expand margin.”
• Integration of Southern States Bank: The acquisition and rapid integration of Southern States Bank expanded FB Financial’s footprint by about 20%. CEO Holmes stated that the process was “completed in record time,” and the bank expects the integration to fuel growth from both new and existing markets.
• Talent acquisition and organizational restructuring: FB Financial added new associates across the company and reorganized leadership responsibilities, aiming to optimize structure and accelerate growth. Holmes highlighted these moves as positioning the company to “continue our history of outstanding growth.”
• Expense discipline and nonrecurring costs: Fourth quarter expenses included merger and integration costs, performance-based incentives, and higher franchise tax expense. Management emphasized that several of these were nonrecurring and expects a lower run-rate going forward.
• Broad-based loan and deposit growth strategy: Although organic growth lagged in the quarter, management remains committed to high single-digit growth rates across geographies and asset classes. The company plans to achieve this with its current team, without relying on major new hires or acquisitions.

Drivers of Future Performance

FB Financial’s outlook for 2026 centers on organic growth, efficient margin management, and continued investment in talent and customer experience.

• Organic loan and deposit growth: Management expects a return to high single-digit growth rates by focusing on expanding relationships with current customers and capturing new business in both metro and community markets. The emphasis will be on balanced growth across lending areas, supported by targeted hiring where needed.
• Margin resilience amid competition: The bank anticipates maintaining a core net interest margin around current levels, despite competitive pressures for deposits and potential market rate shifts. Management plans to balance fair pricing for depositors and borrowers, accepting slightly higher costs to strengthen long-term customer loyalty.
• Expense discipline and investment in people: FB Financial will maintain expense discipline, with a run-rate efficiency ratio target in the low 50s. However, the company remains willing to increase outlays for top talent or market entry opportunities that align with strategic goals, seeing talent as a critical lever for future growth.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) whether FB Financial can accelerate organic loan and deposit growth as planned, (2) the impact of continued investments in talent and customer experience on market share gains, and (3) management’s ability to maintain margin discipline amid a competitive deposit market. Execution on cost containment and successful integration of acquired teams will also be critical milestones.

FB Financial currently trades at $61.95, in line with $61.62 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

Regional banking company FB Financial beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 34.1% year on year to $178.6 million. Its non-GAAP profit of $1.16 per share was 3.3% above analysts’ consensus estimates.

FB Financial (FBK) Q4 CY2025 Highlights:

• Net Interest Income: $149.8 million vs analyst estimates of $148.4 million (38.2% year-on-year growth, 0.9% beat)
• Net Interest Margin: 4% vs analyst estimates of 3.9% (12 basis point beat)
• Revenue: $178.6 million vs analyst estimates of $175.1 million (34.1% year-on-year growth, 2% beat)
• Efficiency Ratio: 60.2% vs analyst estimates of 53.1% (713.3 basis point miss)
• Adjusted EPS: $1.16 vs analyst estimates of $1.12 (3.3% beat)
• Tangible Book Value per Share: $30.27 vs analyst estimates of $30.56 (7.2% year-on-year growth, 0.9% miss)
• Market Capitalization: $3.13 billion

President and Chief Executive Officer, Christopher T. Holmes stated, “We closed the year with solid earnings and a balance sheet that underscores strength, stability, and significant growth potential. We also deployed capital during the quarter through a substantial share repurchase that delivered meaningful earnings accretion, demonstrating our confidence in the Company and our commitment to creating long-term value.”

Company Overview

Founded in 1906 and operating through more than a century of economic cycles, FB Financial operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, FB Financial’s revenue grew at a weak 1.9% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a rough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. FB Financial’s annualized revenue growth of 12% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, FB Financial reported wonderful year-on-year revenue growth of 34.1%, and its $178.6 million of revenue exceeded Wall Street’s estimates by 2%.

Net interest income made up 76.8% of the company’s total revenue during the last five years, meaning lending operations are FB Financial’s largest source of revenue.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

FB Financial’s TBVPS grew at a solid 6.9% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 8.6% annually over the last two years from $25.68 to $30.27 per share.

Over the next 12 months, Consensus estimates call for FB Financial’s TBVPS to grow by 14.4% to $34.63, decent growth rate.

Key Takeaways from FB Financial’s Q4 Results

It was encouraging to see FB Financial beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its tangible book value per share slightly missed and its EPS slightly exceeded Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $61.82 immediately following the results.

So do we think FB Financial is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company FB Financial will be reporting results this Wednesday after market close. Here’s what investors should know.

FB Financial beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $175.4 million, up 34.3% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

Is FB Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting FB Financial’s revenue to grow 31.6% year on year to $175.3 million, improving from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FB Financial has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.

Looking at FB Financial’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. First Horizon delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 3.2%, and BOK Financial reported revenues up 12.7%, topping estimates by 7.6%. First Horizon traded up 102% following the results.

Read our full analysis of First Horizon’s results here and BOK Financial’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. FB Financial is up 4.7% during the same time and is heading into earnings with an average analyst price target of $65.17 (compared to the current share price of $59.64).

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Atlantic Union Bankshares and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Atlantic Union Bankshares

Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.

Atlantic Union Bankshares reported revenues of $380.2 million, up 71.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Interestingly, the stock is up 4.4% since reporting and currently trades at $35.52.

Read our full report on Atlantic Union Bankshares here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $74.50.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.

Read our full analysis of The Bancorp’s results here.

Cadence Bank

With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.

Cadence Bank reported revenues of $519.3 million, up 15.1% year on year. This result missed analysts’ expectations by 0.7%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

The stock is up 16.6% since reporting and currently trades at $43.22.

Read our full, actionable report on Cadence Bank here, it’s free for active Edge members.

FB Financial

Founded in 1906 and operating through more than a century of economic cycles, FB Financial operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

FB Financial reported revenues of $175.4 million, up 34.3% year on year. This number surpassed analysts’ expectations by 4.8%. It was an exceptional quarter as it also logged a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $56.11.

Read our full, actionable report on FB Financial here, it’s free for active Edge members.