Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis

The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 are presented in the following tables:


At September 30, 2025	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Recurring valuations:
Financial assets:
AFS debt securities:
U.S. government agency securities	$	—	$	653,197	$	—	$	653,197
Mortgage-backed securities - residential	—		587,587		—		587,587
Mortgage-backed securities - commercial	—		10,681		—		10,681
Municipal securities	—		165,411		—		165,411
U.S. Treasury securities	—		7,080		—		7,080
Corporate securities	—		2,995		—		2,995
Equity securities, at fair value	—		1,450		—		1,450
Total securities	$	—	$	1,428,401	$	—	$	1,428,401
Loans held for sale, at fair value	$	—	$	145,789	$	—	$	145,789
Mortgage servicing rights	—		—		149,840		149,840
Derivatives	—		28,560		—		28,560
Financial Liabilities:
Derivatives	—		28,414		—		28,414


At December 31, 2024	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Recurring valuations:
Financial assets:
AFS debt securities:
U.S. government agency securities	$	—	$	563,007	$	—	$	563,007
Mortgage-backed securities - residential	—		810,999		—		810,999
Mortgage-backed securities - commercial	—		14,857		—		14,857
Municipal securities	—		147,857		—		147,857
U.S. Treasury securities	—		299		—		299
Corporate securities	—		989		—		989

Total securities	$	—	$	1,538,008	$	—	$	1,538,008
Loans held for sale, at fair value	$	—	$	95,403	$	—	$	95,403
Mortgage servicing rights	—		—		162,038		162,038
Derivatives	—		29,951		—		29,951
Financial Liabilities:
Derivatives	—		32,383		—		32,383

Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis

The balances and levels of the assets measured at fair value on a nonrecurring basis as of September 30, 2025 and December 31, 2024 are presented in the following tables:


At September 30, 2025	Quoted prices in active markets for identical assets (liabilities (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Nonrecurring valuations:
Financial assets:
Other real estate owned	$	—	$	—	$	3,076	$	3,076
Collateral-dependent net loans held for investment:
Commercial and industrial	—		—		1,513		1,513
Construction	—		—		16,326		16,326
Residential real estate:
1-to-4 family mortgage	—		—		1,728		1,728


Commercial real estate:

Non-owner occupied	—		—		5,930		5,930

Total collateral-dependent loans	$	—	$	—	$	25,497	$	25,497


At December 31, 2024	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Nonrecurring valuations:
Financial assets:
Other real estate owned	$	—	$	—	$	2,873	$	2,873
Collateral-dependent net loans held for investment:
Commercial and industrial	$	—	$	—	$	694	$	694
Construction	—		—		20,818		20,818
Residential real estate:


Multifamily	—		—		9,000		9,000




Total collateral-dependent loans	$	—	$	—	$	30,512	$	30,512

Schedule of Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis

The following tables present information as of September 30, 2025 and December 31, 2024 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

September 30, 2025

Financial instrument

Fair Value

Valuation technique

Significant
unobservable inputs

Range of
inputs

Collateral-dependent net loans
held for investment

25,497

Valuation of collateral

Discount for comparable sales

10%-23%

Other real estate owned

3,076

Appraised value of property less costs to sell

Discount for costs to sell

0%-10%

December 31, 2024

Financial instrument

Fair Value

Valuation technique

Significant
unobservable inputs

Range of
inputs

Collateral-dependent net loans
held for investment

30,512

Valuation of collateral

Discount for comparable sales

10%-40%

Other real estate owned

2,873

Appraised value of property less costs to sell

Discount for costs to sell

0%-10%

Schedule of Loans Held For Sale at Fair Value

The following table summarizes the Company’s loans held for sale as of the dates presented:


	September 30,		December 31,

	2025		2024
Loans held for sale under a fair value option:


Mortgage loans held for sale	145,789		95,403

Loans held for sale not accounted for under a fair value option:
Mortgage loans held for sale - guaranteed GNMA repurchase option	21,660		31,357
Total loans held for sale	$	167,449	$	126,760

Schedule of Differences Between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of September 30, 2025 and December 31, 2024:


	September 30,		December 31,

	2025		2024
Aggregate fair value	$	145,789	$	95,403
Aggregate unpaid principal balance	142,071		93,918
Difference	$	3,718	$	1,485

Schedule of Estimated Fair Values and Carrying Values of Financial Instruments

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments. Non-financial instruments are excluded from the table below.


			Fair Value
September 30, 2025	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,280,033	$	1,280,033	$	—	$	—	$	1,280,033
Investment securities	1,428,401		—		1,428,401		—		1,428,401
Net loans HFI	12,112,607		—		—		12,017,272		12,017,272
Loans held for sale, at fair value	145,789		—		145,789		—		145,789

Interest receivable	60,755		822		7,384		52,549		60,755
Mortgage servicing rights	149,840		—		—		149,840		149,840
Derivatives	28,560		—		28,560		—		28,560
Financial liabilities:
Deposits:
Without stated maturities	$	11,117,354	$	11,117,354	$	—	$	—	$	11,117,354
With stated maturities	2,695,601		—		2,693,758		—		2,693,758
Securities sold under agreements to repurchase and federal funds purchased	107,486		107,486		—		—		107,486


Subordinated debt, net	83,338		—		—		85,504		85,504

Interest payable	16,560		3,847		12,713		—		16,560
Derivatives	28,414		—		28,414		—		28,414


	Fair Value
December 31, 2024	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,042,488	$	1,042,488	$	—	$	—	$	1,042,488
Investment securities	1,538,008		—		1,538,008		—		1,538,008
Net loans HFI	9,450,442		—		—		9,221,311		9,221,311
Loans held for sale, at fair value	95,403		—		95,403		—		95,403
Interest receivable	49,611		629		8,012		40,970		49,611
Mortgage servicing rights	162,038		—		—		162,038		162,038
Derivatives	29,951		—		29,951		—		29,951
Financial liabilities:
Deposits:
Without stated maturities	$	9,361,140	$	9,361,140	$	—	$	—	$	9,361,140
With stated maturities	1,849,294		—		1,846,989		—		1,846,989
Securities sold under agreements to repurchase and federal funds purchased	13,499		13,499		—		—		13,499

Subordinated debt, net	130,704		—		—		126,684		126,684

Interest payable	24,182		3,759		18,923		1,500		24,182
Derivatives	32,383		—		32,383		—		32,383

FB Financial Corp 10-Q