FB Financial CorpFBK
FB Financial Corp Debt Disclosure
Borrowings
The Company has access to various sources of funds that allow for management of interest rate exposure and liquidity. The following table summarizes the Company's outstanding borrowings and weighted average interest rates as of December 31, 2024 and 2023:
| Outstanding Balance | Weighted Average Interest Rate | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | $ | 13,499 | $ | 108,764 | 0.20 | % | 5.05 | % | ||||||||||||||||||
| Bank Term Funding Program | — | 130,000 | — | % | 4.85 | % | ||||||||||||||||||||
| Subordinated debt, net | 130,704 | 129,645 | 5.28 | % | 5.52 | % | ||||||||||||||||||||
| Other borrowings | 32,586 | 22,555 | 0.07 | % | 0.10 | % | ||||||||||||||||||||
| Total | $ | 176,789 | $ | 390,964 | ||||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased
Securities sold under agreements to repurchase are financing arrangements that mature daily. Securities sold under agreements to repurchase totaled $13,499 and $19,328 as of December 31, 2024 and 2023, respectively. The weighted average interest rate of the Company's securities sold under agreements to repurchase was 0.20% and 1.60% as of December 31, 2024 and 2023, respectively. The fair value of securities pledged to secure repurchase agreements may decline. The Company manages this risk by having a policy to pledge securities valued at 100% of the outstanding balance of repurchase agreements.
The Bank maintains lines with certain correspondent banks that provide borrowing capacity in the form of federal funds purchased. Federal funds purchased are short-term borrowings that typically mature within one to ninety days. As of December 31, 2024 and 2023, the aggregate total borrowing capacity under these lines amounted to $370,000. As of December 31, 2023, borrowings against these lines (i.e., federal funds purchased) totaled $89,436 with a weighted average rate of 5.79%. There were no such borrowings outstanding as of December 31, 2024.
Information concerning securities sold under agreement to repurchase and federal funds purchased is summarized as follows:
| December 31, 2024 | December 31, 2023 | ||||||||||
| Balance at year end | $ | 13,499 | $ | 108,764 | |||||||
| Average daily balance during the year | 21,339 | 29,860 | |||||||||
| Average interest rate during the year | 1.72 | % | 2.24 | % | |||||||
| Maximum month-end balance during the year | $ | 78,228 | $ | 116,220 | |||||||
| Weighted average interest rate at year-end | 0.20 | % | 5.05 | % | |||||||
Federal Home Loan Bank Advances
As a member of the FHLB, the Company may utilize advances from the FHLB in order to provide additional liquidity and funding. Under these short-term agreements, the Company maintains a line of credit that as of December 31, 2024 and 2023 had total borrowing capacity of $1,397,905 and $1,757,702, respectively. As of December 31, 2024 and 2023, the Company had qualifying loans pledged as collateral securing these lines amounting to $2,608,687 and $3,014,023, respectively. There were no FHLB advances outstanding as of December 31, 2024 or December 31, 2023.
Information concerning FHLB advances as of or for the years ended December 31, 2024 and 2023 is summarized within the table below.
| December 31, 2024 | December 31, 2023 | ||||||||||
| Balance at year end | $ | — | $ | — | |||||||
| Average daily balance during the year | — | 28,973 | |||||||||
| Average interest rate during the year | — | % | 5.13 | % | |||||||
| Maximum month-end balance during the year | $ | — | $ | 125,000 | |||||||
| Weighted average interest rate at year-end | — | % | — | % | |||||||
Bank Term Funding Program
In March 2023, the Federal Reserve established the Bank Term Funding Program to make available funding to eligible depository institutions in order to help ensure they have the ability to meet the needs of their depositors following the March 2023 high-profile bank failures. The program allows for advances for up to one year secured by eligible high-quality securities at par value extended at the one-year overnight index swap rate, plus 10 basis points, as of the day the advance is made. The interest rate is fixed for the term of the advance and there are no prepayment penalties. The BTFP ceased extending new borrowings on March 11, 2024.
At December 31, 2023, the Company had outstanding borrowings of $130,000 under the BTFP at a borrowing rate of 4.85% and a maturity date of December 26, 2024. During the year ended December 31, 2024, we repaid the $130,000 borrowings in full. There were no such borrowings outstanding as of December 31, 2024.
Information concerning the BTFP as of or for the years ended December 31, 2024 and 2023 is summarized within the table below.
| December 31, 2024 | December 31, 2023 | ||||||||||
| Balance at year end | $ | — | $ | 130,000 | |||||||
| Average daily balance during the year | 95,902 | 1,781 | |||||||||
| Average interest rate during the year | 4.86 | % | 4.85 | % | |||||||
| Maximum month-end balance during the year | $ | 130,000 | $ | 130,000 | |||||||
| Weighted average interest rate at year-end | — | % | 4.85 | % | |||||||
Subordinated Debt
During the year ended December 31, 2003, two separate trusts were formed by the Company, which issued $9,000 and $21,000 of floating rate trust preferred securities as part of a pooled offering of such securities. The Company issued junior subordinated debentures of $9,280, which included proceeds of common securities purchased by the Company of $280, and junior subordinated debentures of $21,650, which included proceeds of common securities of $650. The trusts were created for the sole purpose of issuing 30-year capital trust preferred securities to fund the purchase of junior subordinated debentures issued by the Company. Both issuances were to the trusts in exchange for the proceeds of the securities offerings, which represent the sole asset of the trusts.
Additionally, during the year ended December 31, 2020, the Company placed $100,000 of ten year fixed-to-floating rate subordinated notes, maturing September 1, 2030. The Company mitigated interest rate exposure associated with these notes through the use of fair value hedging instruments. The fair value hedge matured during the year ended December 31, 2024. See Note 15, "Derivatives" for additional details related to these instruments.
Further information related to the Company's subordinated debt as of December 31, 2024 is detailed below:
| Name | Year Established | Maturity | Call Date | Total Debt Outstanding | Interest Rate | Coupon Structure | ||||||||||||||
| Subordinated Debt issued by Trust Preferred Securities: | ||||||||||||||||||||
FBK Trust I (1) | 2003 | 06/09/2033 | 6/09/2008 | $ | 9,280 | 7.84% | 3-month SOFR plus 3.51% | |||||||||||||
FBK Trust II (1) | 2003 | 06/26/2033 | 6/26/2008 | 21,650 | 7.74% | 3-month SOFR plus 3.41% | ||||||||||||||
| Additional Subordinated Debt: | ||||||||||||||||||||
FBK Subordinated Debt I(2) | 2020 | 09/01/2030 | 9/1/2025 | 100,000 | 4.50% | Semi-annual Fixed (3) | ||||||||||||||
| Unamortized debt issuance costs | (226) | |||||||||||||||||||
| Total Subordinated Debt, net | $ | 130,704 | ||||||||||||||||||
(1)The Company classifies $30,000 of the trusts' subordinated debt as Tier 1 capital. (2)The Company classifies the issuance, net of unamortized issuance costs as Tier 2 capital, which will be phased out 20% per year in the final five years before maturity. (3)Beginning on September 1, 2025 the coupon structure migrates to the 3-month SOFR plus a spread of 439 basis points through the end of the term of the debenture. | ||||||||||||||||||||
Other Borrowings
As of December 31, 2024 and 2023, other borrowings included a finance lease liability amounting to $1,229 and $1,326, respectively. Additionally, as of December 31, 2024 and 2023, the Company had $31,357 and $21,229, respectively, of government guaranteed GNMA loans that meet certain defined delinquency rates under their contractual terms that were eligible for optional repurchase and recorded in both loans HFS and other borrowings.
See Note 7, “Leases” and Note 16, “Fair Value of financial instruments” for additional information regarding the Company's finance lease and guaranteed GNMA loans eligible for repurchase, respectively.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 25, 2025 | Showing above |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 31, 2017 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.