FINANCIAL FB: Management report and analysis of the financial situation and operating results (form 10-Q)
The following is a discussion of our financial condition at
June 30, 2021and December 31, 2020, and our results of operations for the three and six months ended June 30, 2021and 2020, and should be read in conjunction with our audited consolidated financial statements set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, that was filed with the Securities and Exchange Commissionon March 12, 2021(our "Annual Report"), and with the accompanying unaudited notes to the consolidated financial statements set forth in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021(this "Report"). Forward-looking statements This quarterly report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the projected impact of the COVID-19 global pandemic on our business operations, statements relating to the benefits, costs, and synergies of the merger with Franklin Financial Network, Inc.("Franklin") (the "merger"), and FB Financial'sfuture plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases "may," "will," "should," "could," "would," "goal," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target," "aim," "predict," "continue," "seek," "projection," and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial'scontrol. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financialor any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financialcautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which we operate and/or the US economy generally, (2) the effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and its impact on the economy, financial markets, and on our business and our customers' business, results of operations, asset quality and financial condition, as well as the efficacy, distribution, and public adoption of vaccines and the impact of the Delta variant of the coronavirus or the emergence of other new variants of the coronavirus, (3) changes in government interest rate policies and its impact on our business, net interest margin, and mortgage operations, (4) our ability to effectively manage problem credits, (5) the risk that the cost savings and any revenue synergies from the merger or another acquisition may not be realized or may take longer than anticipated to be realized, (6) the ability of FB Financialto effectively integrate and manage the larger and more complex operations of the combined company following the merger, (7) FB Financial'sability to successfully execute its various business strategies, (8) the impact of the recent change in the U.S.presidential administration and Congressand any resulting impact on economic policy, capital markets, federal regulation, and the response to the COVD-19 pandemic; (8) the potential impact of the proposed phase-out of the LIBOR or other changes involving LIBOR (9) the effectiveness of our cyber security controls and procedures to prevent and mitigate attempted intrusions; (10) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, (11) general competitive, economic, political, and market conditions. Further information regarding FB Financialand factors which could affect the forward-looking statements contained herein can be found in FB Financial'sAnnual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any of FB Financial'ssubsequent filings with the Securities and Exchange Commission(the "SEC"). Many of these factors are beyond FB Financial'sability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this filing, and FB Financialundertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financialto predict their occurrence or how they will affect the company.
Critical accounting policies Our financial statements are prepared in accordance with
The following table presents selected historical consolidated financial data on the dates or for the periods indicated:
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