KBRA Affirms Ratings for FB Financial Corporation

KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Nashville, Tennessee-based FB Financial Corporation. (NYSE: FBK or “the company”). In addition, KBRA affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the company's principal subsidiary, FirstBank. The Outlook for all long-term ratings is Stable.

The ratings and Outlook are supported by FBK’s established Southeastern banking franchise, anchored by Tennessee, with favorable demographic and economic trends. The July 2025 acquisition of Southern States Bancshares, Inc. (“SSBK”) added approximately $2.8 billion of assets and strengthened FBK’s presence in key Alabama and Georgia markets.

Profitability has improved following the 2024-2025 securities restructurings and the SSBK acquisition, resulting in core ROA of ~1.4% in recent periods. The earnings profile benefits from an above-average NIM, low credit costs, and a more efficient operating model supported by increased scale following the acquisition. While earnings are somewhat more spread reliant than similarly rated peers, FBK’s mortgage banking segment provides a meaningful offset during lower-rate environments and contributes to earnings diversification.

FBK’s asset quality profile is supportive of the ratings. While RWA density is somewhat higher than certain peers due to C&D and specialty consumer lending exposures, net charge-offs have remained consistently below peer averages and reserve coverage remains sound at 1.49% of loans. KBRA views underwriting and risk management practices as commensurate with its size and complexity and views the declining trend in construction lending concentrations favorably.

Capital management has been relatively conservative and remains appropriate for the ratings. The 1Q26 TCE ratio of 9.8% compares favorably with peers, while the CET1 ratio of 11.5% is modestly lower. Core capital declined following the SSBK acquisition and increased share repurchases but remains within the company's historical operating range. FBK’s stronger earnings profile should support continued capital accretion, and we expect capital ratios to improve at a measured pace through 2026.

FBK maintains a sound funding and liquidity profile, supported by a predominantly core deposit base and limited reliance on wholesale funding. Deposit costs remain above peer averages due to a lower proportion of noninterest-bearing deposits and competitive market conditions, although recent repricing has reduced funding costs. Liquidity remains robust, with on-balance-sheet liquidity and contingent funding capacity covering ~2.7x uninsured and uncollateralized deposits.

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