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Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment reporting:The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer, the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company also originates conforming residential mortgage loans through the Mortgage segment, which activities also include the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking.
The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance, the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore, these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. Additionally, the Banking segment includes the results of the Company's specialty lending group, which is concentrated in manufactured housing lending. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market and uses proceeds from loan sales to repay obligations due to the Banking segment.
During the second quarter of 2022, the Company exited the direct-to-consumer internet delivery channel, which was one of two delivery channels in the Mortgage segment. The repositioning of the Mortgage segment did not qualify to be reported as discontinued operations. The Company continues to originate and sell residential mortgage loans within its Mortgage segment through its traditional mortgage retail channel, retain mortgage servicing rights and continues to hold residential mortgage loans in the loan HFI portfolio.
Interest rate lock commitment volume and sales volume included in the Mortgage segment are as follows for the periods indicated:
Three Months Ended March 31,
20232022
Interest rate lock commitment volume by delivery channel:
Direct-to-consumer $— $568,092 
Retail375,042 741,015 
       Total$375,042 $1,309,107 
Mortgage loan sales$332,307 $1,284,482 
The following tables provide segment financial information for the periods indicated:
Three Months Ended March 31, 2023
Banking(3)
MortgageConsolidated
Net interest income$103,660 $— $103,660 
Provisions for credit losses(1)
491 — 491 
Mortgage banking income(2)
— 15,493 15,493 
Change in fair value of mortgage servicing rights, net of hedging(2)
— (3,407)(3,407)
Other noninterest income11,493 (230)11,263 
Depreciation and amortization2,049 179 2,228 
Amortization of intangibles990 — 990 
Other noninterest expense65,311 11,911 77,222 
Income (loss) before income taxes$46,312 $(234)$46,078 
Income tax expense9,697 
Net income applicable to FB Financial Corporation and noncontrolling
interest
36,381 
Net income applicable to noncontrolling interest(3)
— 
Net income applicable to FB Financial Corporation$36,381 
Total assets$12,530,039 $571,108 $13,101,147 
Goodwill242,561 — 242,561 
(1) Includes $4,997 in provision for credit losses on loans and $(4,506) in provision for credit losses on unfunded commitments.
(2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income.
(3) Banking segment includes noncontrolling interest.
Three Months Ended March 31, 2022
Banking(3)
MortgageConsolidated
Net interest income$88,184 $(2)$88,182 
Provisions for credit losses(1)
(4,247)— (4,247)
Mortgage banking income(2)
— 29,278 29,278 
Change in fair value of mortgage servicing rights, net of hedging(2)
— 253 253 
Other noninterest income11,983 (122)11,861 
Depreciation and amortization1,710 326 2,036 
Amortization of intangibles1,244 — 1,244 
Other noninterest expense56,630 29,362 85,992 
Income (loss) before income taxes$44,830 $(281)$44,549 
Income tax expense9,313 
Net income applicable to FB Financial Corporation and noncontrolling
interest
35,236 
Net income applicable to noncontrolling interest(3)
— 
Net income applicable to FB Financial Corporation$35,236 
Total assets$11,890,847 $783,344 $12,674,191 
Goodwill242,561 — 242,561 
(1)Includes $(6,129) in provision for credit losses on loans and $1,882 in provision for credit losses on unfunded commitments.
(2)Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income.
(3)Banking segment includes noncontrolling interest.
The Banking segment provides the Mortgage segment with a warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit, which is eliminated in consolidation, is limited based on interest income earned by the Mortgage segment. The amount of interest paid by the Mortgage segment to the Banking segment under this warehouse line of credit is recorded as interest income to the Company's Banking segment and as interest expense to the Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by the Mortgage segment to the Banking segment under this warehouse line of credit was $3,931 and $5,666 for the three months ended March 31, 2023 and 2022, respectively.