FB Financial to expand Southeast footprint with $381m Southern States Bancshares merger

FB Financial Corporation, the parent company of FirstBank, has entered into a definitive agreement to acquire Southern States Bancshares, Inc. in an all-stock merger valued at approximately $381 million. The strategic move reinforces FB Financial’s push to deepen its banking footprint across Alabama and Georgia, positioning the Nashville-based firm for enhanced influence in two of the Southeast’s most competitive regional markets.

The Southern States Bancshares merger is expected to close in the latter half of the year, subject to regulatory and shareholder approvals. The deal offers a compelling case study in how regional banks are adapting through consolidation in the face of a more challenging economic environment, rising compliance costs, and competitive pressure from both large national banks and fintech upstarts.

The transaction will see Southern States Bancshares shareholders receive 0.800 shares of FB Financial Corporation common stock for each Southern States share. Based on FB Financial’s closing price of $47.05 as of March 28, 2025, the deal implies a per-share value of $37.64 for Southern States, representing a premium over recent trading levels. The full integration of Southern States is expected to enhance FB Financial’s scale, deposit base, and customer reach, making it one of the most significant regional combinations in the Southeast banking market this year.

Why is FB Financial merging with Southern States Bancshares?

The Southern States Bancshares merger supports FB Financial Corporation’s ongoing strategy to expand its presence in core growth markets. With headquarters in Nashville, Tennessee, FB Financial has built its reputation as one of the region’s leading community and commercial banking institutions. Its wholly owned banking subsidiary, FirstBank, operates 77 branches across Tennessee, Alabama, Kentucky, and North Georgia. As of year-end 2024, the company reported $13.2 billion in total assets.

Southern States Bancshares, based in Anniston, Alabama, has emerged as a respected community bank with a growing presence in both Alabama and Georgia. With 15 branches and two loan production offices in the Atlanta metropolitan area, the company reported $2.8 billion in total assets, $2.2 billion in loans, and $2.4 billion in deposits as of December 31, 2024. The Southern States Bancshares merger is particularly attractive for FB Financial due to the strong market overlap and the opportunity to gain immediate scale in high-growth metro areas such as Birmingham, Columbus, Atlanta, and Huntsville.

Executives from both firms have described the merger as a culturally aligned partnership. FB Financial’s President and CEO, Christopher T. Holmes, emphasized the compatibility between the organizations, praising Southern States’ community-driven banking model. Southern States Bancshares’ President and CEO, Mark A. Chambers, expressed optimism about the enhanced capabilities the combined company will be able to offer customers and communities.

What markets does the Southern States Bancshares merger target?

The Southern States Bancshares merger opens a strategic corridor across key metropolitan and community banking markets in Alabama and Georgia. FB Financial’s presence in the Southeast has steadily expanded over the past decade, and the addition of Southern States’ branches is expected to drive further network density and operational leverage. In particular, the merger allows FB Financial to accelerate its ambitions in the Atlanta metropolitan statistical area, one of the most competitive banking environments in the region.

Southern States has also built a strong presence in Auburn-Opelika, Birmingham, and Columbus, cities that offer a blend of commercial, residential, and university-driven demand. These markets align with FB Financial’s long-term strategy of targeting regions with sustainable population growth, rising business formation, and resilient housing markets. Analysts note that the Southern States Bancshares merger could improve FB Financial’s ability to cross-sell mortgage, wealth, and commercial products across this broader network.

How are investors reacting to the merger announcement?

Initial investor response to the Southern States Bancshares merger has been stable, suggesting cautious optimism about the proposed deal’s potential. FB Financial Corporation (NYSE: FBK) closed at $46.14 on April 1, 2025, a slight decline of 0.47% on the day. However, trading volumes surged above the average, indicating strong market attention. The stock’s 52-week range of $33.35 to $58.88 underscores its broader volatility, while its price-to-earnings ratio of 18.64 and EPS of $2.47 support its valuation.

Southern States Bancshares (NASDAQ: SSBK) also showed little volatility, closing at $35.67, down 0.22%. Trading volumes rose significantly above the 65-day average, highlighting investor interest following the merger announcement. SSBK’s P/E ratio stands at 9.73, with earnings per share at $3.67—figures that suggest the company has been trading below fair value relative to its earnings potential.

Analyst sentiment toward FB Financial leans “Hold,” with a mean consensus rating of 2.17 among six tracked analysts. Meanwhile, Southern States Bancshares has received a “Buy” rating from at least one analyst, with a 12-month price target of $36.00. This suggests that shareholders may see moderate short-term gains before transitioning into FB Financial shares at the agreed ratio.

What roles will Southern States leaders play post-merger?

A key feature of the Southern States Bancshares merger is the retention of key leadership figures within the combined company. Southern States CEO Mark A. Chambers and CFO Lynn J. Joyce are expected to assume executive roles at FB Financial once the merger is complete. Their inclusion is seen as critical to maintaining operational continuity and cultural alignment, both of which are vital in any regional banking merger.

Moreover, the agreement includes the appointment of one Southern States director to FB Financial’s board, reinforcing governance integration and shareholder representation. Additional employees, including leading producers and client-facing staff, are also expected to remain with the combined institution under new employment arrangements. This approach aims to reduce friction during the post-merger integration phase and to preserve existing customer relationships.

What does this deal mean for the future of community banking in the Southeast?

The Southern States Bancshares merger marks another significant step in the broader consolidation of community and regional banks in the Southeastern United States. As mid-sized banks face pressure from digital disruptors, rising compliance obligations, and tighter interest margins, the industry has seen an uptick in all-stock deals aimed at building scale and geographic reach without overleveraging balance sheets.

This transaction allows FB Financial to strengthen its lending capacity and deepen its deposit franchise across some of the fastest-growing areas in the country. The merger also provides operational efficiencies through shared infrastructure and enhanced technology platforms, which may lead to improved returns for shareholders over time.

Industry observers believe the Southern States Bancshares merger reflects a well-timed, strategically aligned deal that complements both institutions’ strengths. For FB Financial, the integration will be watched closely for signs of successful execution, particularly in retaining talent, harmonizing systems, and preserving the local responsiveness that defines community banking.

As the transaction progresses toward regulatory and shareholder approval, the Southern States Bancshares merger positions FB Financial for greater competitiveness in a complex and evolving market. With increased scale, diversified geography, and sustained leadership alignment, the combined entity could emerge as a formidable force in Southeastern banking—one that’s built on shared values and regional expertise, ready to navigate the next chapter in community finance.