Christopher Marinac (Janney) asked whether unfunded C&I commitments could boost future loan growth. Holmes and Mettee noted line utilizations remain below pre-pandemic levels, suggesting further upside as economic activity recovers.

Stephen Scouten (Piper Sandler) inquired about organic growth strategies amid potential upstream M&A activity. Holmes stated no preference between team lift-outs or whole-bank deals, emphasizing the bank’s flexibility and capital position to pursue either avenue.

Russell Gunther (Stephens) probed the margin outlook under different rate environments and the sustainability of loan growth with the expanded balance sheet. Management confirmed its guidance incorporated two rate cuts and expressed confidence in sustaining mid- to high single-digit growth as integration progresses.

Brett Rabatin (Hovde Group) questioned the drivers behind the higher loan loss provision, particularly in mortgage banking, and sought clarity on the outlook for M&A. Mettee pointed to a new reserve model and stable credit, while CEO Holmes reiterated openness to additional M&A within the $3–7 billion asset range.

Catherine Mealor (KBW) asked how management plans to redeploy securities sale proceeds and whether Southern States’ bond portfolio would impact future balance sheet modeling. CFO Michael Mettee clarified that nearly all proceeds would be used for loan growth and liability reduction, with minimal legacy securities carried over.

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Is now the time to buy FBK? Find out in our full research report (it’s free).

FB Financial’s second quarter results were met with a negative market reaction, as revenue came in well below Wall Street expectations. Management attributed the underperformance to a combination of one-time securities losses and the timing of merger-related activities, particularly the integration of Southern States. CEO Christopher Holmes highlighted that “the quarter was filled with distractions and heavier workloads,” yet the company pressed forward with both execution and operational priorities. Despite headwinds from market volatility and customer hesitancy, FB Financial maintained stable core operating performance, aided by disciplined cost controls and ongoing deposit and loan growth.

Story Continues

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will watch (1) the pace and effectiveness of Southern States’ integration and realization of cost synergies, (2) the redeployment of securities sale proceeds into higher-yielding loans and the resulting impact on net interest margin, and (3) progress toward targeted loan and deposit growth rates. Additional focus will be placed on credit quality metrics and the successful execution of new reserve modeling.

FB Financial currently trades at $48.79, in line with $49.17 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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