The executive team members at FB Financial have a lot on their collective plate. They still have a few items to attend to from the acquisition of Franklin Financial Network they completed in August.
Their mortgage team is still going great guns after two massive quarters. Oh, and they are still trying to figure out just how the economy — and their clients’ fortunes — will recover from the COVID-19 pandemic.
And still, President and CEO Chris Holmes on Tuesday wouldn’t rule out another acquisition in the near(ish) future.
“I suspect we’ll get hit with opportunities before we’re ready for them,” Holmes said after emphasizing that his team is first and foremost focused on making the most from its Franklin purchase. “I’ll be disappointed if we don’t get hit with an opportunity in the next three to six months. But it’s got to be one that’s strategic for us.”
FB’s leaders have set themselves up to continue their acquisitive ways in 2021. They have set aside more money to cover loan losses than many of their peers and recently raised fresh capital to give them a cushion and, when it comes to possible acquisitions, firepower. That’s why Holmes on Tuesday could tell analysts and investors that “we’ll see what opportunities come our way.”
“I would say we’re really happy with … the strength of our balance sheet,” he said. “So financially, I think we’re in a great position.”
Holmes’ words echo those of DeVan Ard Jr., CEO of Reliant Bancorp, which also has been an active buyer of fellow banks in recent years. Ard recently said he is maintaining contact with possible sellers and sees activity picking up late this year and early next — perhaps as some regional bank leaders see little upside to staying independent during and in the wake of the COVID recession.
Separately on Tuesday, Holmes updated FB’s search for the CFO who will replace James Gordon, who took a job in Texas earlier this year. Former capital markets director Michael Mettee has been filling in as CFO since Gordon’s departure.
Shares of FB (Ticker: FBK) fell more than 6 percent Tuesday on the heels of the company's third-quarter results. They began the year around $38.