Highlights

  • FB Financial shows 110.51% basic EPS growth, a P/E of 11.88 and PEG of 0.00.
  • Third quarter net income was $60.2 million, or $1.20 per diluted share, against $0.43.
  • Loans HFI reached $13.18 billion and deposits $14.67 billion at September 30, 2026.
  • FB Financial issued $125.0 million of subordinated debt and repurchased $29.3 million of stock.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and FB Financial (NYSE:FBK) shows all three: basic earnings per share grew 110.51% over one year, the trailing twelve-month P/E ratio is 11.88 and the PEG ratio, on an expected basis, is 0.00, with shares trading at USD 53.35 on October 28, 2026, down 0.22%. Alongside those figures, the financial holding company completed a $125.0 million subordinated debt issuance and repurchased 545,214 shares in the third quarter, and reported third quarter 2026 net income of $60.2 million on October 13.

FB Financial is a financial holding company headquartered in Nashville, Tennessee, and incorporated in Tennessee. It operates through its wholly owned banking subsidiary, FirstBank, in Tennessee, Kentucky, Alabama, Georgia and North Carolina. The company reported approximately $17.1 billion in total assets and 91 full-service bank branches. Management discusses its results in terms of a banking segment and a mortgage banking segment, and its principal executive offices are at 1221 Broadway in Nashville.

Growth: Third Quarter Earnings, Loans and Deposits

Net income applicable to FB Financial was $60,202 thousand in the third quarter against $58,649 thousand in the second quarter and $23,375 thousand in the third quarter of 2025. Basic earnings per share were $1.21 against $0.44 a year earlier, and diluted earnings per share were $1.20 against $0.43. For the nine months, net income was $176,377 thousand against $65,645 thousand, with basic earnings per share of $3.46 against $1.35 and diluted earnings per share of $3.43 against $1.34.

Adjusted diluted earnings per share, a non-GAAP measure, were $1.21 against $1.07 in the third quarter and $3.47 against $2.82 for the nine months. The prior-year quarter included $16,057 thousand of merger and integration costs.

Loans HFI were $13.18 billion, a 9.68% annualized increase from the previous quarter, and deposits were $14.67 billion, an 8.82% annualized increase. Provisions for credit losses were $1,424 thousand against $34,417 thousand.

Valuation: P/E of 11.88, PEG of 0.00 and Book Value

The P/E ratio of 11.88 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Book value per common share was $39.11 against $37.00 a year earlier, and tangible book value per common share, a non-GAAP measure, was $31.50 against $29.83. Return on average assets was 1.43% and return on average tangible common equity, a non-GAAP measure, was 15.2%.

President and Chief Executive Officer Christopher T. Holmes said the results reflect continued organic growth momentum. Chief Financial Officer and Chief Operating Officer Michael Mettee said the company believes its investments position it for greater earnings growth over time.

Capital Returns, Subordinated Debt and Liquidity

FB Financial repurchased 545,214 shares for $29.3 million in the third quarter. On the call, Mettee said repurchases are a good use of capital at certain price levels and may be too dilutive to capital at others. Management said it plans to deploy the $125.0 million of subordinated debt proceeds over time to support loan growth and strategic initiatives.

The preliminary total risk-based capital ratio was 13.6%, the common equity tier 1 ratio was 11.0% and tangible common equity to tangible assets was 9.32% against 9.49% in the prior quarter. Total common shareholders' equity was $1,933,646 thousand. The company reported $1.8 billion of on-balance sheet liquidity and $8.6 billion in total other sources.

Disclosed Risks and Outlook for 2026

Net interest margin was 3.83% against 3.95% in the prior quarter and a year earlier, which the company attributed to higher funding costs relative to earning asset yields and, for 3 basis points, a $1.0 million reversal of accrued interest on a nonaccrual loan. Mortgage banking income was $9.4 million against $11.2 million in the prior quarter and $13.5 million a year earlier.

Noninterest expense was $96.0 million against $91.5 million in the prior quarter, including $719 thousand of loan subservicer transition costs. Nonperforming loans HFI were 1.18% of total loans HFI against 1.17% and 0.94% a year earlier.

On the call, management said it expects full-year loan and deposit growth in a mid to high single digit range and a full-year net interest margin excluding loan accretion of 3.7% to 3.8%, with fourth quarter core margin near third quarter levels. It narrowed full-year banking segment expense guidance to $325 million to $335 million, and said higher rates are expected to weigh on near-term mortgage origination volumes and profitability.