Earnings, buybacks and credit quality in focus
FB Financial (FBK) just reported first quarter 2026 results, with higher net interest income and net income than a year ago, alongside an update on share repurchases and credit costs.
See our latest analysis for FB Financial.
The latest results, share repurchases and relatively contained credit costs come against a backdrop of a 6.05% 1 month share price return and a 34.99% 1 year total shareholder return. This suggests momentum has been uneven in the short term but stronger over longer periods.
If this kind of bank earnings story has you thinking about where else capital could work hard, it might be worth checking a screener focused on 19 top founder-led companies
With FB Financial trading at $54, an intrinsic discount of about 49% and a roughly 20% gap to the average analyst price target, the question is whether this represents genuine value or whether markets already anticipate additional growth.
Most Popular Narrative: 18.1% Undervalued
FB Financial's most followed narrative puts fair value at $65.93, which sits well above the recent $54 share price and frames the current valuation gap.
The planned combination with Southern States Bank is expected to enhance scale and market opportunities, potentially benefiting revenue growth through expanded market presence and improved margin stabilization. FB Financial's ability to adjust cost structures, such as repricing certificates of deposit at lower rates, indicates management's focus on improving net margins by reducing the cost of funds.
The fair value hinges on a specific path for revenue, earnings and profit margins, plus a future earnings multiple that differs from the broader US banks group. Curious which assumptions matter most and how they link back to that $65.93 figure.
Result: Fair Value of $65.93 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the merger integration with Southern States Bank and the ongoing pressure on credit quality in areas like C&I lending could challenge that $65.93 narrative.
Find out about the key risks to this FB Financial narrative.
Another angle on valuation
That $65.93 fair value and 48.6% modeled discount come from our DCF model, which looks at FB Financial's future cash flows and discounts them back to today. It points to the shares trading below an estimated value of $104.99, so how much weight do you give to long range forecasts like that?
Look into how the SWS DCF model arrives at its fair value.
Next Steps
With mixed signals on valuation and growth, it makes sense to inspect the numbers yourself and decide how convincing the upside case really feels. To see what investors are currently optimistic about, review the 3 key rewards
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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