FB Financial's Q2 2025: Discrepancies in Loan Growth, Deposit Strategy, and Margin Guidance

Loan growth outlook, deposit management strategy, deposit beta and margin guidance, are the key contradictions discussed in FB Financial Corporation's latest 2025Q2 earnings call.



Merger and Integration Activity:
- FB Financial Corporation completed the merger with Southern States Bank on July 1, marking a significant transaction that added immediate scale and accretive earnings.
- The merger was executed quickly, with regulatory approval and legal closure achieved within 90 days, and included integration plans to convert systems, rebrand locations, and integrate teams by the end of Q3.

Economic Uncertainty and Trade Policies:
- The quarter was impacted by global economic uncertainties, particularly reciprocal tariffs and trade policy changes, which led to financial market volatility.
- Despite the uncertainty, FB Financial maintained optimism about its ability to capitalize on opportunities during times of change.

Securities Transaction and Loan Growth:
- The company sold approximately $266 million of investment securities at a pretax loss of $60 million, impacting GAAP results for the quarter.
- Despite this, the company achieved loan growth at an annualized rate of 4.2% and deposit growth at 7.2%, indicating a strong balance sheet expansion.

Regulatory Changes and Credit Provisions:
- FB Financial transitioned to a new allowance model, which enhanced the precision of forecasts and increased granularity in inputs.
- This change led to a net impact on reserves of approximately $395,000, driven by changes in home price appreciation and unemployment forecasts.

M&A and Growth Strategy:
- The company is optimistic about growth opportunities supported by both organic and inorganic means, with a focus on mid- to high single-digit growth.
- FB Financial anticipates potential organic opportunities arising from upstream M&A activity by larger banks in its markets, which could provide significant growth tailwinds.