FB Financial in Nashville, Tennessee, has no plans to slow the pace of its organic expansion activity while it also moves to close its
“We don’t want that to slow,” CEO Chris Holmes said Tuesday on a conference call with analysts. “If anything, we want it to gain momentum.”
The $13.1 billion-asset FB put its resolve to grow on display last week, announcing the opening of an office in Asheville, its first location in North Carolina. FB’s entry into the Tar Heel State came two months after the company unveiled plans to open a new branch in Tuscaloosa, Alabama, and a week after striking the $381 million deal to acquire Southern States.
Donn Jones
The population of the Asheville metropolitan statistical area recently surpassed 420,000 and continues to rise at a solid clip, according to the U.S. Census Bureau. FB Market President Andy Nadeau described Asheville as an “emerging hub” for small businesses, startups and families.
“Those are the kind of people FB wants to be a trusted partner for,” Nadeau told American Banker.
Nadeau, who currently leads a three-banker team, served as Asheville market president for Bank of America before joining FB. He said his plan is to “hit the ground running” and expand across the region.
“We’re working on identifying retail banking locations to open in Asheville’s core communities,” Nadeau said. “Our goal is to be a catalyst and champion future opportunities for the bank to establish its presence in surrounding cities.”
The new teams in Asheville and Tuscaloosa extend a year-long hiring trend that has seen FB add more than three dozen bankers since the start of 2024, according to Piper Sandler analyst Stephen Scouten.
In Tuscaloosa, FB named veteran local banker Chuck Bracknell as its market president. The bank expects to open its first branch in Tuscaloosa, home to the University of Alabama, this summer.
“We’re very positive about the opportunities in Tuscaloosa and Asheville,” Chief Banking Officer Travis Edmondson said on the conference call.
On Tuesday, FB reported first-quarter net income of $39.4 million, an increase of 40% from the same three-month period in 2024. Loans held for investment totaled $9.8 billion on March 31, up 5% from a year ago. Deposits of $11.2 billion were up 7% year over year.
Net chargeoffs increased from the first-quarter of 2024, but off a very low base. They totaled $3.3 million, or 0.14% of average loans, for the three months ending March 31.
With a common equity tier 1 capital ratio of 12.8%, FB has plenty of wherewithal to fund its ambitious growth plans.
Greg Newington
Janney Montgomery Scott Director of Research Chris Marinac wrote in a research note that he expects FB to generate “solid [earnings] in the next two quarters” prior to completion of its deal for Southern States.
FB expects to close the transaction by the end of September, with preparations well underway. “Our team has established an integration office, formed key work streams, outlined our timeline and begun collaboration with Southern States counterparts,” Holmes said.
Acquiring Southern States would give FB 15 branches across Alabama and Georgia, as well as two Atlanta-area loan production offices.
“Our conviction about this deal is stronger today than at the announcement,” Holmes said.