FB Financial CorpFBK
FB Financial Corp Income Taxes Disclosure
Income taxes
An allocation of federal and state income taxes between current and deferred portions is presented in the tables below:
| Year Ended December 31, | ||||||||
| 2025 | ||||||||
| Current: | ||||||||
| Federal | $ | 20,250 | ||||||
| State | 525 | |||||||
| Total current income tax expense | 20,775 | |||||||
| Deferred: | ||||||||
| Federal | (2,983) | |||||||
| State | (1,912) | |||||||
| Total deferred income tax expense | (4,895) | |||||||
| Income tax expense, as reported | $ | 15,880 | ||||||
| Years Ended December 31, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Current | $ | 32,382 | $ | 31,467 | ||||||||||
| Deferred | (1,763) | (1,415) | ||||||||||||
| Income tax expense, as reported | $ | 30,619 | $ | 30,052 | ||||||||||
The Company operates exclusively in the United States and had no foreign income, foreign income tax expense, or foreign income taxes paid for the year ended December 31, 2025.
The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the year ended December 31, 2025:
| Year Ended December 31, | ||||||||||||||
| 2025 | ||||||||||||||
| $ | 29,089 | 21.0 | % | |||||||||||
| Increase (decrease) resulting from: | ||||||||||||||
State taxes, net of federal benefit(1) | 591 | 0.4 | % | |||||||||||
State tax credits, net of federal benefit(1) | (1,687) | (1.2) | % | |||||||||||
| New market tax credits | (320) | (0.2) | % | |||||||||||
| Nondeductible/nontaxable items: | ||||||||||||||
| Municipal interest income, net of interest disallowance | (1,661) | (1.2) | % | |||||||||||
| Section 162(m) limitation | 1,486 | 1.1 | % | |||||||||||
| Other | 593 | 0.4 | % | |||||||||||
| Other: | ||||||||||||||
Expiration of the statute of limitations(2) | (8,713) | (6.3) | % | |||||||||||
Interest on refunds(2) | (2,591) | (1.9) | % | |||||||||||
| Other | (907) | (0.6) | % | |||||||||||
| Income tax expense, as reported | $ | 15,880 | 11.5 | % | ||||||||||
(1) State of Tennessee makes up the majority (more than 50%) of the total of state taxes and state tax credits. (2) A one-time gross tax benefit of $10,713 was recognized due to the expiration of the statute of limitations with respect to an amended income tax return and the associated interest. | ||||||||||||||
The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the years ended December 31, 2024 and 2023:
| Years Ended December 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| $ | 30,801 | 21.0 | % | $ | 31,561 | 21.0 | % | ||||||||||
| (Decrease) increase resulting from: | |||||||||||||||||
| State taxes, net of federal benefit | (404) | (0.3) | % | (158) | (0.1) | % | |||||||||||
| Expense from stock-based compensation | 56 | — | % | 219 | 0.1 | % | |||||||||||
| Municipal interest income, net of interest disallowance | (1,325) | (0.9) | % | (1,804) | (1.2) | % | |||||||||||
| Bank-owned life insurance | (788) | (0.5) | % | (393) | (0.3) | % | |||||||||||
| Section 162(m) limitation | 284 | 0.2 | % | 244 | 0.2 | % | |||||||||||
| Nondeductible expenses | 2,029 | 1.4 | % | 384 | 0.3 | % | |||||||||||
| Other | (34) | — | % | (1) | — | % | |||||||||||
| Income tax expense, as reported | $ | 30,619 | 20.9 | % | $ | 30,052 | 20.0 | % | |||||||||
The Company is subject to Internal Revenue Code Section 162(m), which limits the deductibility of compensation paid to certain individuals. It is the Company’s policy to apply the Section 162(m) limitations to stock-based compensation first followed by cash compensation. As a result of the vesting of this stock-based compensation and cash compensation paid to date, the Company has disallowed a portion of its compensation paid to the applicable individuals.
Income taxes paid, net of refunds were as follows:
| Year Ended December 31, | ||||||||
| 2025 | ||||||||
| Federal | $ | 20,715 | ||||||
| State and local | 254 | |||||||
| Total | $ | 20,969 | ||||||
There were no income taxes paid, net of refunds, to one state and local jurisdiction that exceeded 5 percent of the total taxes paid, net of refunds.
The components of the deferred tax assets and liabilities at December 31, 2025 and 2024, are as follows:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Deferred tax assets: | ||||||||||||||
| Allowance for credit losses | $ | 50,720 | $ | 39,155 | ||||||||||
| Operating lease liabilities | 21,150 | 21,864 | ||||||||||||
| Net operating loss | 348 | 523 | ||||||||||||
| Amortization of core deposit intangibles | — | 1,482 | ||||||||||||
| Deferred compensation | 15,544 | 10,372 | ||||||||||||
| Unrealized loss on debt securities | 12,396 | 36,766 | ||||||||||||
| Unrealized loss on equity securities | 1,071 | — | ||||||||||||
| Fair value adjustments related to mergers | 11,006 | — | ||||||||||||
| Real estate investment trust dividend | — | 87 | ||||||||||||
| Other assets | 5,368 | 5,529 | ||||||||||||
| Subtotal | 117,603 | 115,778 | ||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| FHLB stock dividends | $ | (216) | $ | (252) | ||||||||||
| Operating leases - right of use assets | (17,747) | (19,252) | ||||||||||||
| Depreciation | (10,765) | (8,117) | ||||||||||||
| Amortization of core deposit intangibles | (5,545) | — | ||||||||||||
| Unrealized gain on equity securities | — | (948) | ||||||||||||
| Mortgage servicing rights | (38,759) | (42,221) | ||||||||||||
| Goodwill | (22,241) | (20,121) | ||||||||||||
| Real estate investment trust dividend | (5,536) | — | ||||||||||||
| Retention on sign-on bonus | (2,245) | (2,005) | ||||||||||||
| Other liabilities | (1,730) | (1,265) | ||||||||||||
| Subtotal | (104,784) | (94,181) | ||||||||||||
| Net deferred tax assets | $ | 12,819 | $ | 21,597 | ||||||||||
The Company had a net operating loss carryforward generated as a result of a previous merger amounting to $1,659 and $2,491 as of December 31, 2025 and 2024, respectively. The net operating loss carryforward can be used to offset taxable income in future periods and reduce income tax liabilities in those future periods. While net operating losses are subject to certain annual utilization limits under Section 382, the Company believes the net operating loss carryforwards will be realized based on the projected annual limitation and the length of the net operating loss carryover period. The Company's determination of the realization of the net deferred tax asset is based on its assessment of all available positive and negative evidence. The net operating loss carryforward will begin to expire in 2029.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is generally no longer subject to U.S. federal and state income tax examinations by tax authorities for tax years before 2022.
On July 4, 2025, new tax legislation referred to as the One Big Beautiful Bill Act was enacted into law by the federal government. The tax provisions of the One Big Beautiful Bill Act did not have a material impact on our income tax expense. The retroactive extension of bonus depreciation has afforded the Company additional income tax deductions for 2025, reducing the anticipated income taxes payable for 2025.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 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 Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.