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FB Financial (NYSE: NYSE:FBK), which currently maintains a FAIR financial health rating according to InvestingPro analysis, announced it has received regulatory approval for its proposed acquisition of SmartBank (NYSE: SSBK) and expects to close the deal on July 1, 2025. The transaction is now scheduled to complete a full quarter earlier than previously anticipated.
The acquisition will add scale to FB Financial’s operations and enhance its growth strategy in targeted markets in Alabama and Georgia. With revenue growth of 2.18% over the last twelve months, the deal represents approximately 18% of pro forma assets for the combined entity.
Keefe, Bruyette & Woods maintained its Market Perform rating and $52.00 price target on FB Financial stock following the announcement. The research firm noted FB Financial shares have underperformed by about 7% relative to the KRX index since the deal was announced.
The financial impact of the transaction includes 4% tangible book value dilution with a two-year earn-back period and 12% earnings per share accretion. FB Financial stock currently trades at 1.5 times tangible book value and 10 times estimated 2026 earnings per share.
The research firm believes successful execution of the deal and improved growth and profitability could potentially serve as catalysts to restore FB Financial to its typical premium valuation over time.
In other recent news, FB Financial Corporation reported its first-quarter earnings for 2025, with an adjusted earnings per share (EPS) of $0.85, slightly surpassing the market forecast of $0.83. However, the company fell short on revenue, reporting $130.67 million against expectations of $132.18 million. In a significant development, FB Financial and Southern States Bancshares have received regulatory approvals for their proposed merger, which is expected to close on July 1, 2025. The merger will combine FB Financial’s $13.1 billion in assets with Southern States’ $2.9 billion. On the analyst front, Piper Sandler reduced FB Financial’s price target from $60 to $58 but maintained an Overweight rating, indicating continued confidence despite higher expense expectations. Meanwhile, Raymond (NSE:RYMD) James reaffirmed a Market Perform rating, noting improved credit metrics and economic resilience in FB Financial’s markets. Additionally, FB Financial shareholders recently rejected a proposal to amend the company’s charter to eliminate supermajority voting standards, while electing 12 directors and ratifying Crowe LLP as the independent auditor for 2025. These developments reflect a period of strategic growth and financial adjustments for FB Financial.
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