FB Financial completes merger with Southern States Bancshares

Published 01/07/2025, 14:08
FB Financial completes merger with Southern States Bancshares

NASHVILLE - FB Financial Corporation (NYSE:FBK), a $2.08 billion market cap regional bank with a track record of seven consecutive years of dividend increases according to InvestingPro, has completed its merger with Southern States Bancshares, Inc. (NASDAQ:SSBK), the company announced Tuesday.

Under the terms of the agreement, Southern States shareholders received 0.800 shares of FB Financial common stock for each Southern States share. Based on FB Financial’s closing price of $45.30 on June 30, the transaction values Southern States at approximately $368.4 million, or $36.24 per share. InvestingPro analysis suggests FB Financial is currently trading slightly below its Fair Value, with a P/E ratio of 15.71x.

Southern States shares ceased trading after market close on June 30, 2025.

"Today marks a significant milestone in the histories of our two companies," said Christopher T. Holmes, President and CEO of FB Financial, in a press release statement.

The merger combines Southern States’ assets of $2.9 billion, loans of $2.3 billion, and deposits of $2.4 billion with FB Financial’s assets of $13.1 billion, loans of $9.9 billion, and deposits of $11.2 billion, based on March 31, 2025 figures. The combined entity now operates 93 full-service bank branches across Tennessee, Alabama, Kentucky, and Georgia, with approximately $16 billion in total assets.

FB Financial also announced the appointment of J. Henry Smith IV to its board of directors, effective immediately. Smith previously served on the board of Southern States and is the President of Interstate Sheet Metal Company, a contractor specializing in public works projects throughout Alabama.

Keefe, Bruyette, & Woods, Inc. served as financial advisor to FB Financial, while Performance Trust Capital Partners, LLC advised Southern States.

FB Financial plans to release its second quarter results on July 14, 2025, after market close, followed by a conference call on July 15. InvestingPro data shows that four analysts have recently revised their earnings expectations downward for the upcoming period, though the company maintains a solid financial health score. Subscribers can access the comprehensive Pro Research Report, which provides detailed analysis of FB Financial among 1,400+ top US stocks.

In other recent news, FB Financial Corporation has received regulatory approval for its proposed acquisition of SmartBank, with the transaction expected to close on July 1, 2025. The acquisition is anticipated to enhance FB Financial’s growth strategy in Alabama and Georgia, contributing to an 18% increase in pro forma assets for the combined entity. FB Financial has also received necessary regulatory approvals for its merger with Southern States Bancshares, which is also expected to close on July 1, 2025. This merger will combine FB Financial’s $13.1 billion in assets with Southern States’ $2.9 billion, further strengthening its market presence.

Analysts have weighed in on these developments, with Keefe, Bruyette & Woods maintaining a Market Perform rating on FB Financial, while Piper Sandler adjusted its price target to $58, maintaining an Overweight rating. Piper Sandler cited a slight miss on pre-provision net revenue and increased expenses but noted the company’s solid capital levels and loan growth. Meanwhile, Raymond James reiterated a Market Perform rating, highlighting FB Financial’s core return on assets of 1.2% and improved credit metrics. Additionally, shareholders recently rejected a proposal to amend the company’s charter but approved the election of 12 directors and the compensation of executive officers.

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