FB Financial Corporation Announces $100 Million Common Stock Repurchase Authorization

Rhea-AI Summary

FB Financial (NYSE: FBK) authorizes a $100 million stock repurchase program until January 31, 2026, reflecting financial strength and profitability. Management aims to deliver superior returns and long-term value.

Insights

Financial Analyst

Stock repurchase programs are a significant signal to the market regarding a company's self-assessment of its financial health and future prospects. FB Financial Corporation's announcement of a $100 million stock repurchase plan, valid through January 2026, underscores the company's confidence in its financial stability and profitability. This strategic move is likely to be interpreted positively by the market as it often suggests that the company believes its stock is undervalued. The repurchase also serves as a method to return value to shareholders, potentially leading to an increase in the stock's price by reducing the number of shares outstanding, which in turn increases earnings per share (EPS).

However, this strategy also raises questions about the company's ability to find productive investments within its core business operations. Investors often weigh the benefits of stock repurchases against the potential growth that could be achieved through reinvestment in the business. In the case of FB Financial Corporation, the repurchase plan's impact on the stock market will largely depend on investor perception of the company's long-term growth strategy and the opportunity cost of capital allocation decisions.

Market Research Analyst

From a market perspective, the repurchase plan of FB Financial Corporation can be seen as an effort to manage capital structure and shareholder value. It's important to note that repurchase plans are often implemented during periods when a company perceives its stock to be a good buy, which can be an indication to investors about management's expectations of future performance. The repurchase authorization's lengthy timeframe suggests a long-term commitment to this strategy, providing management with the flexibility to act opportunistically.

When examining the potential impact on the stock market, it's essential to consider the broader economic context, such as interest rates, market liquidity and investor sentiment towards the banking sector. The financial performance of FB Financial Corporation, in conjunction with these macroeconomic factors, will influence the effectiveness of the repurchase program in supporting the stock price. Additionally, the manner in which the repurchases are executed, whether on the open market or via privately negotiated transactions, could also sway the market's response.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- FB Financial Corporation (“the Company”) (NYSE: FBK), the parent company of FirstBank, announced today that its board of directors authorized the repurchase of up to $100 million of the Company’s outstanding common stock. The repurchase authorization will be in place until January 31, 2026, and replaces the Company’s previous authorization, which expired on January 31, 2024.

Christopher T. Holmes, President and Chief Executive Officer, commented, “This repurchase authorization reflects the Company’s financial strength and strong profitability. Our management team is keenly focused on deploying capital to deliver superior returns and to create long-term value. This program provides another arrow in our quiver to achieve those objectives.”

The timing and amount of any repurchases will be based on management’s consideration of various factors including market conditions, securities laws restrictions, the price of the Company’s stock, regulatory requirements, alternative uses of capital and the Company’s financial performance. Repurchases may be executed through the open market or in privately negotiated transactions, including under Rule 10b5-1 plans.

ABOUT FB FINANCIAL CORPORATION

FB Financial Corporation (NYSE: FBK) is a financial holding company headquartered in Nashville, Tennessee. FB Financial Corporation operates through its wholly owned banking subsidiary, FirstBank with 81 full-service bank branches across Tennessee, Kentucky, Alabama and North Georgia, and mortgage offices across the Southeast. FB Financial Corporation has approximately $12.6 billion in total assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240321747619/en/

MEDIA CONTACT:

Jeanie M. Rittenberry

615-313-8328

jrittenberry@firstbankonline.com

www.firstbankonline.com

FINANCIAL CONTACT:

Michael Mettee

615-564-1212

mmettee@firstbankonline.com

investorrelations@firstbankonline.com

Source: FB Financial Corporation

FAQ

What did FB Financial (NYSE: FBK) announce regarding its stock repurchase?

FB Financial authorized a $100 million stock repurchase program until January 31, 2026.

When will the repurchase authorization be in place until?

The repurchase authorization will be in place until January 31, 2026.

Who is the President and Chief Executive Officer of FB Financial ?

Christopher T. Holmes is the President and Chief Executive Officer of FB Financial

How does the management team of FB Financial plan to utilize the capital for the repurchase program?

The management team aims to deliver superior returns and create long-term value through deploying capital.

What factors will influence the timing and amount of stock repurchases by FB Financial ?

Factors such as market conditions, securities laws restrictions, stock price, regulatory requirements, capital uses, and financial performance will influence the timing and amount of stock repurchases.