Follow the Money: Regional Bank Stock Sees Sizable Buy Ticket From Fund

Mendon Capital Advisors Corp disclosed a new position in FB Financial Corporation (NYSE:FBK), acquiring 144,000 shares valued at approximately $7.62 million, according to its November 14, 2025, SEC filing.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 14, 2025, Mendon Capital Advisors Corp established a new position in FB Financial Corporation, purchasing 144,000 shares. The reported stake was valued at $7.62 million as of September 30, 2025, contributing to the fund’s total of 68 reportable positions for the quarter.

What Else to Know

This new position represents approximately 2.92% of Mendon Capital Advisors Corp’s approximately $260.71 million reportable U.S. equity assets as of September 30, 2025.

Top five holdings after the filing:

• NYSE:EQBK: $15.97 million (6.1% of AUM)
• NASDAQ:MCHB: $14.04 million (5.4% of AUM)
• NASDAQ:FRST: $12.82 million (4.9% of AUM)
• NASDAQ:VBNK: $12.55 million (4.8% of AUM)
• NASDAQ:ABL: $10.99 million (4.2% of AUM)

As of December 08, 2025, shares of FB Financial Corporation were priced at $56.87, up 2.2% over the past year, underperforming the S&P 500 by 12.1 percentage points.

Company Overview

Company Snapshot

• Offers commercial and consumer banking products, including checking, savings, money market accounts, loans, and mortgage origination services.
• Serves businesses, professionals, and individual consumers, focusing on regional markets in Tennessee, Alabama, Kentucky, and Georgia.
• Operates a network of full-service bank branches and mortgage offices throughout the southeastern United States.

FB Financial Corporation is a regional bank holding company headquartered in Nashville, Tennessee, operating through FirstBank with a network of full-service branches and mortgage offices. The company leverages a diversified banking and mortgage platform to address both commercial and retail client needs, emphasizing local market expertise and relationship-driven service. Its scale and broad product suite provide a competitive position among regional financial institutions in the southeastern United States.

Foolish Take

Mendon Capital, a Florida-based investment advisory firm, recently disclosed the acquisition of approximately $7.62 million worth of FB Financial stock during the third quarter (the three months ending on September 30, 2025). Retail investors may want to take notice of this big purchase -- here's why.

First off, Mendon Capital is known as a specialist with regards to the U.S. financial sector. Mendon's President and Chief Investment Officer is Anton Schutz, who known for his deep knowledge of the financial sector and for his ability to spot potential acquisition targets within the industry.

This brings us to FB Financial. The company, headquartered in Nashville, TN, is a regional bank with a growing footprint across the Southeastern U.S. As for fundamentals, the company has demonstrated decent growth, with both revenue and net income gradually rising over the last five years as the company expands. Performance-wise, FB Financial stock has been a solid, yet, unremarkable name to own. Shares are up 81% over the last five years, which trails the S&P 500 (100% total return over the last five years). However, when compared to its peers -- as measured by the State Street SPDR S&P Regional Banking ETF (KRE) -- FB Financial really stands out.

Shares of the KRE -- an ETF representing a basket of U.S. regional bank stocks -- have advanced by only 46% over the last five years, equating to a compound annual growth rate (CAGR) of 7.9%. FB Financial, on the other hand, has delivered a CAGR of 12.6% over the same period.

To conclude, Mendon Capital's acquisition of FB Financial stock is noteworthy for average investors due to the reputation of Anton Schutz and his abilities to identify solid regional banks. Moreover, the company has outperformed within its sector over the last few years, making it an intriguing stock for retail investors to consider.

Glossary

AUM: Assets Under Management – The total market value of investments managed by a fund or investment firm.
Forward P/E ratio: Price-to-earnings ratio using forecasted future earnings, indicating how much investors pay per expected dollar of earnings.
EV/EBITDA multiple: Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation, and Amortization; measures a company's valuation relative to its earnings.
Dividend yield: Annual dividend income expressed as a percentage of the current share price.
Reportable position: An investment holding that must be disclosed in regulatory filings due to its size or significance.
Fund holding: A specific security or asset owned by an investment fund.
Regional bank holding company: A company that owns and controls one or more banks operating primarily in a specific geographic area.
Mortgage origination: The process by which a lender works with a borrower to complete a mortgage loan transaction.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.

Jake Lerch has positions in SPDR Series Trust - State Street SPDR S&P Regional Banking ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.