FB Financial (FBK) risk factors, FY2025 10-K

Other

1. 01The majority of our assets are loans, which if not repaid would result in losses to the Bank
2. 02Because a significant portion of our loan portfolio is comprised of real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing our real estate loans and result in loan and other losses
3. 03We are subject to lending concentration risks
4. 04Our ability to grow our loan portfolio may be hampered

MARKET AND INTEREST RATE RISK

1. 05Difficult or volatile market conditions in the national financial markets, the U.S. economy generally, or our markets in particular may adversely affect our lending activity or other businesses, as well as our financial condition
2. 06Changes in interest rates could adversely affect our results of operations and financial condition
3. 07The performance of our investment securities portfolio is subject to fluctuation due to changes in interest rates and market conditions, including credit deterioration of the issuers of individual securities
4. 08We may be materially and adversely affected by the creditworthiness and liquidity of other financial institutions
5. 09Changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations55% rewritten
6. 10Significant changes to the size, structure, powers and operations of the federal government may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition
7. 11A lack of liquidity could adversely affect our operations and jeopardize our business, financial condition or results of operations33% rewritten
8. 12Our mortgage revenue is cyclical and is sensitive to the level of interest rates, changes in economic conditions, decreased economic activity, and slowdowns in the housing market
9. 13The value of our mortgage servicing rights asset is subjective by nature and may be vulnerable to inaccuracies or other events outside our control25% rewritten
10. 14structure, financial condition, activity levels in the primary or secondary mortgage markets or in underwriting criteria could materially and adversely affect our business, financial condition, liquidity and results of operationsNew
11. 15Decreased residential mortgage origination volume and pricing decisions of competitors may adversely affect our profitability
12. 16We may incur costs, liabilities, fines and other sanctions if we fail to satisfy our mortgage loan servicing obligations

LEGAL, REGULATORY AND COMPLIANCE RISK

1. 17We are subject to significant government regulation and supervision70% rewritten
2. 18Applicable laws and regulations restrict both the ability of the Bank to pay dividends to us and our ability to pay dividends to our shareholders
3. 19As the parent company of the Bank, the Federal Reserve may require us to commit capital resources to support the Bank
4. 20Our financial condition may be affected negatively by the costs of litigation

TECHNOLOGY AND OPERATIONAL RISKS

1. 21We rely on third-party vendors to provide services that are integral to the operation of our business
2. 22The rise of artificial intelligence and generative AI presents risks to our operations, controls, and complianceNew
3. 23Our risk management framework may not be effective in mitigating risks and/or losses to us
4. 24System failure or breaches of our network security, including cyber-attacks or data security breaches, could subject us to increased operating costs as well as litigation among other liabilities
5. 25The financial services industry is undergoing rapid technological changes and we may not have the resources to implement new technology to stay current with these changes31% rewritten
6. 26The nature of technology-driven disruption to our industry is changing, in some cases seeking to displace traditional financial service providers rather than merely enhancing traditional services or their delivery38% rewritten
7. 27We are subject to certain operational risks, including, but not limited to, client or employee fraud51% rewritten
8. 28or detect an occurrence, or if any resulting loss is not insured or exceeds applicable insurance limits, it could have a material adverse effect on our business, financial condition, or results of operationsNew
9. 29The impact of widespread health emergencies, catastrophic events, natural disasters, or severe weather events adversely affect our business, financial condition, liquidity, and results of operations

STRATEGIC AND OTHER BUSINESS RISKS

1. 30Our strategy of pursuing acquisitions exposes us to risk
2. 31We have a shareholder who owns a significant portion of our stock and that shareholder’s interests in our business may be different than our other shareholders90% rewritten
3. 32We could be required to write down goodwill and other intangible assets

GENERAL RISKS

1. 33We face strong competition from financial services companies and other companies that offer banking services
2. 34Holders of our subordinated debentures have rights that are senior to those of our common shareholders
3. 35New lines of business, products, product enhancements or services may subject us to additional risks
4. 36Consumers may decide not to use banks to complete their financial transactions
5. 37We depend on the accuracy and completeness of information about customers
6. 38Negative publicity could impact our reputation
7. 39Negative developments affecting the banking industry may erode client confidence in the banking system