FB Financial Corporation (FBK): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind FB Financial Corporation's (FBK) engine after that big Southern States merger, and frankly, the Q3 2025 data tells it all: this is a community bank with regional muscle, managing about $16.0 billion in assets while keeping a tight Net Interest Margin of 3.95%. What's interesting is how they are layering in modern plays-think Fintech partnerships for digital loans-on top of their core business of serving SMBs through 93 branches. This Business Model Canvas distills exactly how FB Financial Corporation generates revenue, which is still heavily reliant on Net Interest Income at 84.35%, and where they are spending to maintain that local, high-touch service. Keep reading below to see the full nine blocks that make this model tick.

FB Financial Corporation (FBK) - Canvas Business Model: Key Partnerships

You're looking at how FB Financial Corporation (FBK) builds value through its key external relationships as of late 2025. These alliances, especially the recent major acquisition, are reshaping the balance sheet and regulatory profile.

The most significant recent partnership event is the merger with Southern States Bancshares, Inc., which closed on July 1, 2025. This transaction was valued at approximately $368.4 million, based on FB Financial Corporation's closing stock price of $45.30 per share on June 30, 2025. Southern States brought substantial scale, with total assets of $2.9 billion, loans of $2.3 billion, and deposits of $2.4 billion as of March 31, 2025. The combination immediately grew FB Financial Corporation's total assets to approximately $16 billion and expanded its branch network to 93 full-service locations across Tennessee, Alabama, Kentucky, and Georgia.

The integration is already visible in the Q3 2025 figures. Loans Held for Investment (HFI) reached $12.30 billion, up from $9.87 billion at the end of the previous quarter, and deposits stood at $13.81 billion as of September 30, 2025, up from $11.40 billion on June 30, 2025. The cost of deposits also reflected the acquired book, increasing to 2.53% in Q3 2025 from 2.48% in Q2 2025, primarily due to higher-rate deposits from Southern States.

Here's a quick look at the scale of the Southern States integration:

FB Financial Corporation is also actively partnering in the digital finance space. The relationship with Fintech firm Zippy focuses on digital manufactured home loans, though specific 2025 volume or revenue figures for this segment aren't publically detailed yet. Still, the strategic intent is clear: expanding lending channels beyond traditional brick-and-mortar origination.

The Treasury Prime partnership provides the foundational Banking-as-a-Service (BaaS) capabilities. This relationship, which was active when FirstBank held about $12.7 billion in assets in late 2022, is crucial for enabling embedded finance offerings.

This BaaS infrastructure directly supports the collaboration with High Circle, targeting high-yield commercial checking accounts for high-net-worth individuals and businesses. This specific product suite, as launched, offered clients access to FDIC-insured coverage up to $125 million via the Intrafi network and an attractive Annual Percentage Yield (APY) of up to 4.00%.

Finally, the regulatory structure has shifted. Effective December 2, 2025, FirstBank became a member of the Federal Reserve System, making the Board of Governors of the Federal Reserve System its primary federal regulator, replacing the FDIC in that role. The Tennessee Department of Financial Institutions remains the primary state regulator.

Key regulatory and digital partnership facts:

• Federal Reserve System primary regulator status began December 2, 2025.
• High Circle accounts offered up to $125 million in FDIC insurance.
• High Circle accounts offered APY up to 4.00% at launch.
• Treasury Prime partnership enables BaaS for embedded finance.

Finance: draft the pro-forma balance sheet impact from the Southern States merger as of September 30, 2025, by Friday.

FB Financial Corporation (FBK) - Canvas Business Model: Key Activities

You're looking at the core engine of FB Financial Corporation (FBK) as of late 2025, post-merger integration. Honestly, the key activities are all about scaling the balance sheet while managing the margin that comes from that scale. Here's the breakdown of what they are actively doing to drive performance.

Core commercial and consumer lending/loan origination

The primary activity here is growing the loan book, which saw a significant jump due to the recent acquisition. You need to track both the absolute size and the organic growth underneath the merger activity. The core lending focus remains on commercial real estate and commercial loans, alongside consumer products.

Here are the numbers showing the scale-up in lending:

• Loans Held for Investment (HFI) reached $12.30 billion as of September 30, 2025.
• This represents a sequential increase of $2.43 billion from $9.87 billion at the end of Q2 2025.
• Organic loan growth, excluding acquired loans, was $156.8 million in Q3 2025, equating to an annualized rate of 5.12%.

Deposit gathering and balance sheet management

This activity is the necessary counterpart to lending-funding that growth while optimizing the cost of that funding. Balance sheet management in Q3 2025 was heavily influenced by integrating Southern States Bancshares, Inc. deposits, which drove the overall balance up but also slightly increased the cost structure.

The balance sheet activity is best seen side-by-side:

What this estimate hides is the strategic churn: while total deposits grew, excluding the acquired balances, deposits actually decreased by $59.0 million, or 1.69% annualized, as management targeted runoff of higher-cost, non-relationship balances.

Strategic acquisitions and integration (e.g., Southern States)

The successful closing and integration of the Southern States merger on July 1, 2025, is a defining key activity for the second half of 2025. This wasn't just about adding assets; it was about operational alignment.

Key integration milestones and figures include:

• The merger closed on July 1, 2025, with an implied transaction value of approximately $368.4 million.
• Systems conversion for the combined entity was completed ahead of schedule by September 2, 2025.
• Management is targeting 50% of expected cost savings to be realized in the second half of 2025, with 100% realized in 2026.
• As of March 31, 2025, Southern States added approximately $2.9 billion in total assets to the combined entity.

Managing a Net Interest Margin (NIM) of 3.95%

Maintaining and expanding the Net Interest Margin is a critical function, especially after an acquisition that brought in some higher-cost funding. The focus here is on asset yield management and realizing accretion benefits.

The NIM performance shows clear success in this activity:

• FB Financial Corporation achieved a tax-equivalent NIM of 3.95% for the third quarter of 2025.
• This is an expansion of 27 basis points from the 3.68% reported in the second quarter of 2025.
• The improvement was driven by a 36 basis point increase in earning asset yields, partially offset by an 8 basis point increase in rates paid on interest-bearing liabilities.
• Purchase accounting accretion contributed 19 basis points to the Q3 2025 NIM.

Mortgage banking and investment services

While the Banking segment drives the core NII, the Mortgage segment is a key noninterest income generator. The activity involves originating loans and selling them in the secondary market to realize gains, though rising rates present defintely competitive pressure.

Here's the latest on mortgage banking income:

Investment services, which includes trust activities, are bundled into the broader core noninterest income, which totaled $27.3 million for the third quarter of 2025.

FB Financial Corporation (FBK) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that power FB Financial Corporation's operations right now. These are the things the company owns or controls that allow it to deliver its value proposition.

The physical footprint is significant, built out through strategic expansion, including the recent merger activity. This physical presence is backed by a solid financial cushion, which is critical for a bank in any economic cycle. Honestly, the capital base is what lets them take calculated risks on lending.

Here's a quick look at the core financial and physical resources as of the latest reporting periods:

Beyond the balance sheet numbers, the human capital is a key resource for FB Financial Corporation. This isn't just about headcount; it's about the specific expertise embedded in their operating regions.

• Local talent with strong community ties and local authority.
• The operational foundation supporting the balance sheet growth following the Southern States Bancshares combination.
• The technology and systems in place to manage the expanded footprint.

FB Financial Corporation (FBK) - Canvas Business Model: Value Propositions

You're looking at what FB Financial Corporation (FBK) offers its customers-the core value it brings to the table as of late 2025. It's a blend of old-school community banking feel with the product depth you'd expect from a larger regional player, especially after integrating the Southern States Bancshares, Inc. merger on July 1, 2025.

The foundation of stability is a major draw. You can count on financial security for your funds; as of September 30, 2025, FB Financial Corporation reported total deposits reaching $13.81 billion. This scale, supported by total assets of approximately $16.2 billion at the end of the third quarter of 2025, gives clients confidence. To give you a clearer picture of the balance sheet supporting these value props, here are some key figures from that same period:

For clients seeking local service, FB Financial Corporation operates through its subsidiary, FirstBank, with 91 full-service branches across Tennessee, Kentucky, Alabama, and Georgia. This footprint ensures access to high-growth metropolitan markets, with Nashville, Tennessee, serving as its headquarters. The company is actively managing its footprint and growth, evidenced by its recent systems conversion following the July 2025 merger.

You see a clear push into specialized lending, which is where the sophistication comes in. FB Financial Corporation offers loans specifically for manufactured homes, which are provided without real estate collateral. While I don't have the exact volume for their digital manufactured home loans or the specific Fintech partner they use, the product line itself is a distinct value proposition for that segment of the consumer market.

Also, for your corporate and commercial clients, FB Financial Corporation provides a suite of deposit products. This includes checking, demand, money market, and savings accounts for corporate and commercial customers. The offering is geared toward serving clients who need robust cash management, which certainly includes high-net-worth individuals and businesses looking for competitive yields on their operating cash, though the exact rate structure for a product labeled high-yield commercial checking isn't detailed in the latest reports.

The value proposition is supported by operational efficiency, too. The adjusted core efficiency ratio improved to 53.3% for the third quarter of 2025. That's a tangible benefit derived from scale and management focus.

Here's a quick summary of the service mix you're buying into:

• Community bank service with regional bank product sophistication.
• Access to high-growth metropolitan markets like Nashville.
• Financial security and stability for deposits totaling $13.81 billion as of Q3 2025.
• Specific lending for manufactured homes without real estate.
• Commercial and corporate deposit services, including checking accounts.

Finance: draft 13-week cash view by Friday.

FB Financial Corporation (FBK) - Canvas Business Model: Customer Relationships

You're looking at how FB Financial Corporation (FBK), through its subsidiary FirstBank, maintains its community banking ethos while scaling up, especially after the merger with Southern States Bancshares, Inc. that closed on July 1, 2025. The relationship focus is central to their strategy, which is evident in their operational scale and efficiency.

Dedicated relationship managers for commercial and corporate clients

The commitment to personalized service for commercial and corporate clients is supported by the overall staffing density across their physical footprint. FB Financial Corporation employed $\mathbf{1,490}$ full-time employees as of late 2025. With $\mathbf{93}$ full-service branches across Tennessee, Kentucky, Alabama, and Georgia, this translates to an average of approximately $\mathbf{15.9}$ employees per branch, which helps support the high-touch service model for business clients who rely on dedicated bankers.

Community-focused, high-touch service model in local markets

The high-touch model is the engine driving their balance sheet growth. As of September 30, 2025, FB Financial Corporation reported total deposits of $\mathbf{\$13.81}$ billion and Loans Held for Investment (HFI) of $\mathbf{\$12.30}$ billion. The successful integration following the Southern States merger, which added scale, is framed around maintaining this local focus. The company's core efficiency ratio improved to $\mathbf{53.3\%}$ in the third quarter of 2025, reflecting better operating leverage despite higher expenses related to the integration. This efficiency suggests they are managing the cost of their relationship-heavy model effectively.

Here are the key scale metrics underpinning this relationship strategy as of Q3 2025:

Automated self-service via mobile and online banking platforms

FB Financial Corporation operates mobile and online banking platforms to serve customers who prefer digital interaction. While specific adoption rates for FBK customers aren't public, the industry trend shows that a significant majority of consumers prefer managing accounts digitally. The company continues to invest in infrastructure to support these platforms, which is necessary to compete in the modern banking landscape.

Deepening existing relationships through cross-selling products

Deepening relationships is directly linked to growing fee-based revenue streams, which are a key focus area for FB Financial Corporation. Core noninterest income for the third quarter of 2025 was $\mathbf{\$27.3}$ million, an increase from $\mathbf{\$24.0}$ million in the third quarter of 2024. This growth suggests success in cross-selling services beyond core lending and deposit products, such as treasury management, trust, and investment services, which the company views as customer acquisition channels. The Net Interest Margin (NIM) also expanded to $\mathbf{3.95\%}$ in Q3 2025, up from $\mathbf{3.68\%}$ in the prior quarter, partly due to the portfolio mix from the merger.

The focus is on building long-term customer relationships that lead to compounding growth.

FB Financial Corporation (FBK) - Canvas Business Model: Channels

You're looking at how FB Financial Corporation (FBK), through FirstBank, gets its value proposition to the customer base as of late 2025. It's a mix of old-school presence and modern digital reach, which makes sense for a regional player expanding its footprint.

The core physical distribution relies on a network of 93 full-service FirstBank branches. This network is concentrated across the Southeast, specifically in Tennessee, Kentucky, Alabama, and Georgia, following the July 1, 2025, merger with Southern States Bancshares, Inc.. This physical presence is key for relationship banking and deposit gathering, especially in the markets they serve. As of the third quarter of 2025, FB Financial Corporation had approximately $16.2 billion in total assets.

Digital channels are definitely in play, supporting those physical locations. You see the standard Mobile and Online Banking offerings, which are essential for transaction processing and customer convenience in today's environment. These digital tools help manage the customer base that interacts with the $12.30 billion in loans held for investment as of September 30, 2025.

The national mortgage business is a distinct channel, operating with offices across the Southeast, separate from the core branch network. This segment contributes directly to noninterest income. For instance, mortgage banking income for the third quarter of 2025 was $13.5 million. This indicates a significant, non-local revenue stream flowing through this specific channel.

Correspondent lending and investment partner services represent another layer of distribution, likely focused on wholesale or B2B relationships rather than direct consumer interaction at a branch. This channel taps into external networks to originate or service loans. Here's a quick look at how the key segments that utilize these channels performed in Q3 2025:

The strategy here seems to be using the branch footprint for local relationship building and deposit funding, while the mortgage operations provide a geographically wider, fee-based revenue stream. You can see the scale of the mortgage operation by looking at the income it generates relative to the total company performance. The use of digital tools is the connective tissue across all these points of contact.

• Physical Footprint: Operates in Tennessee, Kentucky, Alabama, and Georgia.
• Digital Access: Supports Mobile and Online Banking for account management.
• Mortgage Reach: National scope with offices concentrated in the Southeast.
• Partner Services: Engages in correspondent lending activities.

If onboarding new mortgage clients takes longer than expected, the conversion rate definitely drops. Finance: draft 13-week cash view by Friday.

FB Financial Corporation (FBK) - Canvas Business Model: Customer Segments

FB Financial Corporation (FBK) serves a diverse set of clients across its primary geographic footprint of Tennessee, South Central Kentucky, Alabama, and North Georgia.

Retail/Consumer base in Tennessee, Kentucky, Alabama, and Georgia

The retail and consumer segment underpins the balance sheet, which as of the third quarter of 2025, held total deposits of $13.81 billion.

• Total Loans Held for Investment (HFI) reached $12.30 billion on September 30, 2025.
• The bank operates 83 full-service branches across the core states.
• Net Interest Margin (NIM) for Q3 2025 stood at 3.95%.

Small to medium-sized businesses (SMB) and middle-market commercial clients

Commercial activity is a key driver, evidenced by the composition of the balance sheet. Noninterest-bearing deposits, often a proxy for commercial operating cash, were $2.69 billion at the end of the third quarter of 2025.

The first quarter of 2025 saw net increases in loan types relevant to this segment:

• Commercial and industrial loans increased by $91.8 million (net).
• Non-owner occupied commercial real estate loans increased by $54.7 million (net).

Large corporate businesses requiring sophisticated products

These clients are served through the broader commercial banking capabilities, which contributed to the overall loan portfolio size. The successful merger with Southern States Bancshares, Inc. on July 1, 2025, significantly expanded the scale serving these larger entities.

High-net-worth individuals and businesses (via High Circle partnership)

FB Financial Corporation (FBK) supports this niche through its subsidiary FirstBank's partnership with High Circle. This channel targets affluent clients needing specialized cash management solutions. The offering provides access to commercial checking accounts with up to $125 million in FDIC-insured coverage via the Intrafi network.

Here's a quick look at the scale of the business supporting these segments as of the end of Q3 2025:

The High Circle platform offers an attractive annual percentage yield of up to 4.00% on these specialized accounts. The company also announced a $150 million Common Stock Repurchase Authorization in September 2025, indicating confidence in capital deployment relative to its client base size. The third quarter dividend declared was $0.19 per share, which represents an annualized amount of $0.76. This is a defintely important metric for shareholders who are also clients.

FB Financial Corporation (FBK) - Canvas Business Model: Cost Structure

You're looking at the expense side of FB Financial Corporation's business, which is heavily influenced by the recent integration of Southern States Bancshares, Inc., which closed on July 1, 2025. The cost structure reflects the scale of the combined entity.

The cost of funding remains a key area. The total cost of deposits increased slightly to 2.53% during the third quarter of 2025 compared to 2.48% in the second quarter of 2025. This uptick was primarily due to higher-rate deposits acquired in the Southern States merger.

Noninterest expenses saw a notable jump due to the combination. Core noninterest expense for the third quarter of 2025 was reported at $93.5 million, up from $78.5 million in the prior quarter. This increase reflects higher operating costs associated with a larger organization.

A significant, one-time-like cost in the quarter was related to the integration. Merger and integration costs peaked this quarter with the transaction close and conversion, totaling $16.1 million. These costs were largely made up of employee-related payments and vendor payments.

The overall physical footprint now includes 93 full-service bank branches across Tennessee, Kentucky, Alabama, and Georgia, following the merger. The associated occupancy and equipment costs contribute to the overall noninterest expense base.

Here's a quick look at the key Q3 2025 expense and related figures:

Within the noninterest expense, you should note the components driving the costs:

• Personnel and compensation expenses are the largest non-interest cost component.
• The increase in adjusted noninterest expense reflects higher operating costs, including increases in compensation and occupancy expense associated with a larger organization.

Management noted they are on pace to achieve 50% of deal synergies in the second half of 2025.

FB Financial Corporation (FBK) - Canvas Business Model: Revenue Streams

The revenue generation for FB Financial Corporation (FBK) is heavily weighted toward traditional banking activities, as evidenced by the third quarter of 2025 results.

The primary driver is Net Interest Income (NII), which for Q3 2025 stood at $147.2 million. This single component accounted for 84.35% of the total reported revenue for the period. This strong performance was supported by a Net Interest Margin (NIM) that expanded to 3.95% on a tax-equivalent basis for Q3 2025, up from 3.68% in the previous quarter.

The secondary, yet significant, revenue source is Noninterest income (Core), reported as an adjusted $27.3 million for the same quarter. This figure, when combined with the NII, aligns closely with the reported total revenue of $173.88 million for Q3 2025.

Here is a summary of the key revenue components for FB Financial Corporation (FBK) in Q3 2025:

You can see the impact of the Southern States Bancshares, Inc. merger, which closed on July 1, 2025, as the Q3 2025 NII of $147.2 million was a 38.9% increase from the same quarter last year.

The remaining revenue streams, which fall under the Noninterest Income category, are derived from various fee-based services and portfolio activities. These include:

• Mortgage banking income, which was $13.5 million in Q3 2025, up from $13.0 million in the prior quarter.
• Service charges.
• Interchange fees.
• Investment services fees.
• Interest and fees from commercial and consumer loan portfolios, which contribute to the overall interest income base. The total bank interest income for the period ending September 30, 2025, was $236.898M.

The company is focused on driving profitability through margin expansion and synergy realization from the recent acquisition. Finance: draft 13-week cash view by Friday.