FB Financial Corporation Increases Regular Quarterly Dividend

Rhea-AI Summary

FB Financial Corporation (NYSE: FBK) has declared a quarterly cash dividend of $0.17 per share, payable on February 27, 2024. This marks the 24th consecutive quarterly dividend and represents a 13% increase compared to prior quarters. President and CEO, Christopher T. Holmes, expressed the company's commitment to building long-term shareholder value through cash dividends.

Positive

• 24th consecutive quarterly dividend declared
• 13% increase in dividend compared to prior quarters
• Commitment to building long-term shareholder value

Negative

• None.

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.17 per share by FB Financial Corporation represents a tangible return to shareholders and can be seen as a positive signal regarding the company's financial health and earnings stability. A 13% increase in the dividend payout, as compared to previous quarters, suggests confidence from the management in the company's ability to generate consistent cash flows. Investors often view such increases as a sign of a company's strong financial position and a commitment to returning value to shareholders.

From a financial analyst's perspective, the consistent payment of dividends for 24 consecutive quarters indicates a reliable income stream for investors, which could make the company's stock more attractive to income-focused investors. However, it is crucial to assess the payout ratio to ensure that the dividends are sustainable and do not compromise the company's growth potential or financial flexibility. A payout ratio that is too high could signal that the company is returning too much to shareholders at the expense of reinvestment in the business.

Market Research Analyst

As a market research analyst, it's important to consider the broader market implications of FB Financial Corporation's dividend increase. Dividend announcements can impact investor sentiment and stock market performance, potentially leading to increased stock demand and a positive movement in share price. The financial sector is often scrutinized for its dividend policies, as they can reflect economic trends and interest rate expectations.

Furthermore, the decision to increase the dividend may influence peer companies to evaluate their dividend strategies to remain competitive in attracting investors. It's also indicative of management's priorities and may reflect a strategic choice to focus on shareholder returns over other uses of capital, such as acquisitions or research and development. The timing and size of the dividend increase should also be considered within the context of the current economic cycle and regulatory environment.

Economist

An economist would analyze the implications of FB Financial Corporation's dividend announcement in the context of the broader economy. Dividend payments can be a reflection of economic strength, as they often correlate with corporate profitability and consumer confidence. In a stable or growing economy, companies may feel more comfortable increasing dividends, as they anticipate continued revenue growth and stable earnings.

Additionally, the increase in dividend payout could be seen as an indicator of the financial sector's response to the macroeconomic environment, including interest rates and inflation. If the increase is in line with or exceeds the rate of inflation, it could effectively preserve the purchasing power of the dividend income for shareholders. Conversely, if the increase is below inflation, the real value of the dividends could be eroding, which would be a concern for long-term investors.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- FB Financial Corporation (NYSE: FBK) announced today that its board of directors declared a quarterly cash dividend of $0.17 per share. The dividend is payable on February 27, 2024, to shareholders of record as of February 13, 2024.

Christopher T. Holmes, President and Chief Executive Officer, commented, “We are pleased with the board of directors’ decision to pay our 24^th consecutive quarterly dividend and are happy to be able to increase the dividend by 13% compared to prior quarters. We remain committed to building long-term shareholder value by returning a portion of the Company’s earnings through cash dividends.”

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/20240131395935/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 is the dividend amount declared by FB Financial Corporation (NYSE: FBK)?

FB Financial Corporation (NYSE: FBK) has declared a quarterly cash dividend of $0.17 per share.

When is the dividend payable to shareholders of FB Financial Corporation (NYSE: FBK)?

The dividend is payable on February 27, 2024.

Who is the President and Chief Executive Officer of FB Financial Corporation (NYSE: FBK)?

Christopher T. Holmes is the President and Chief Executive Officer of FB Financial Corporation (NYSE: FBK).

How does FB Financial Corporation (NYSE: FBK) aim to build long-term shareholder value?

FB Financial Corporation (NYSE: FBK) aims to build long-term shareholder value by returning a portion of the Company’s earnings through cash dividends.