Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2023 Earnings Presentation
30 slides from Fb Financial's earnings presentation, Apr 18, 2023
Slide 1: 2023 First Quarter Earnings Presentation
2023 First Quarter Earnings Presentation April 18, 2023
Slide 2: Forward-Looking Statements
Forward–Looking Statements Certain statements contained in this Presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statem
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures This Presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limi
Slide 4: 1Q 2023 Highlights
1Q 2023 Highlights Key highlights Financial results Strong capital ratios1 with no securities categorized HTM: 1Q 2023 – CET1 11.3% Diluted earnings per share $0.78 – Tier 1 RBC 11.6% Adjusted diluted earnings per share2 $0.76 – Total RBC 13.5% Net income ($mm) $36.4 Adjusted net income2 ($mm) $35
Slide 5: Driving shareholder value
Driving shareholder value Adjusted Earnings per Share1 Tangible Book Value per Share1 TBVPS Adj. TBVPS (Ex. AOCI) $3.73 $3.78 $26.53 $27.06 $24.67 $24.55 $23.86 $22.90 $2.91 $21.73 $21.15 $2.83 $18.55 $18.16 $0.76 2019 2020 2021 2022 YTD 2023 2019 2020 2021 2022 1Q23 Short Term Performance Dashboard
Slide 6: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 1Q221 4Q221 1Q231,2 Shareholder’s equity/Assets 10.9% 10.3% 10.5% $24.67 $23.86 $22.90 $21.73 $18.55 TCE/TA3 9.0% 8.5% 8.7% $17.02 $14.56 $11.56 $11.58 Common Equity 12.0% 11.0% 11.3% Tier 1/Risk-weighted asset
Slide 7: Valuable core deposit base
Valuable core deposit base Total deposits1 ($millions) Cost of deposits Noninterest-bearing (%) Cost of total deposits (%) 35.0% $11,183 1.94% $10,996 $10,856 29.6% 30.0% $10,543 27.5% 25.4% 25.0% 24.7% $10,006 22.3% 20.0% 1.20% 15.0% 0.52% 10.0% 0.20% 0.25% 5.0% 0.0% 1Q22 2Q22 3Q22 4Q22 1Q23 $8,208
Slide 8: Well-balanced deposit portfolio
Well-balanced deposit portfolio Deposits by customer segment ($mm) Customer Deposit funded balance sheet $11,183 97.4% 97.0% 95.3% $10,996 $10,856 91.2% 94.2% $10,543 $10,006 $2,637 $2,073 $2,387 21% $2,347 $1,626 $3,700 $3,797 $3,768 34% $3,568 $3,759 $4,659 $4,628 $4,621 $4,986 $5,028 45% 6.6% 1.4
Slide 9: Strong liquidity position
Strong liquidity position Well positioned to weather the current environment On balance sheet liquidity On-Balance Sheet Liqudity Securities portfolio only 11.3% of total assets and entirely On balance sheet liquidity / tangible assets categorized as available-for-sale $2,500.0 $2,176.6 $2,000.0
Slide 10: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other 4% 1-4 family 17% C&I1 30% 1-4 family HELOC 5% Multifamily 5% C&D 18% CRE2 21% CRE2 exposure by type C&D exposure by type Other Other Office Healthcare Facility 11% Warehouse 1% 8% 2% Office 2% 19% Retail Self Storage
Slide 11: Office exposure (non-owner occupied CRE & C&D)
Office exposure (non-owner occupied CRE & C&D) Office loans represent only 4.0% of our total HFI loan portfolio as of the end of 1Q23 Credit detail by class Projects characterized by significant cash equity requirements, policy Outstanding Average Wtd. Avg. Wtd. Avg. loan to value maximums of 70
Slide 12: Asset quality remains solid
Asset quality remains solid Nonperforming Assets / Assets Nonperforming Loans (HFI) / Loans (HFI) Commercial loans HFS Optional GNMA repurchase 0.68% Other NPAs 1 0.62% 0.07% 0.61% 0.51% 0.51% 0.49% 0.49% 0.07% 0.47% 0.44% 0.46% 0.22% 0.20% 0.16% 0.04% 0.01% 0.40% 0.45% 0.40% 0.41% 0.38% 1Q22 2Q22 3
Slide 13: Allowance for credit losses overview
Allowance for credit losses overview Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: ACL / Loans HFI by Category 1Q22 4Q22 1Q23 3.77% 3.59% 3.67% 2.40% 2.42% 2.16% 1.74% 1.82% 1.60% 1.56% 1.66% 1.67% 1.50%
Slide 14: Strong net interest margin
Strong net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $13,000 6.0% Avg. interest earning $11,000 Yields and Costs (%) 5.0% assets ($mm) 4.0% $9,000 3.0% 2.0% $7,000 1.0% -- $5,000 1Q22 2Q22 3Q22 4Q22 1Q23 NIM1 3.04% 3.52% 3.93%
Slide 15: Mortgage performance in 1Q 2023
Mortgage performance in 1Q 2023 Highlights Interest rate lock commitment volume ($mm) Mortgage segment essentially broke even with pre-tax net Purchase Refinance loss of $0.2 million in 1Q 2023, a seasonally slow quarter for mortgage originations $1,309 Interest rate lock commitment volume incre
Slide 16: Managing expenses
Managing expenses Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Consolidated 1Q 2023 core efficiency Consolidated 145.4% ratio¹ of 63.4% Mortgage segment 128.9% Banking segment noninterest expense 111.8% grew 2.4% as expected due to annual 100.5% 98.4% compensation inc
Slide 17: Appendix
FB) pe Bank Appendix
Slide 18: Adjusted net income and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 17
Slide 19: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 18
Slide 20: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 19
Slide 21: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 20
Slide 22: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 21
Slide 23: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 22
Slide 24: Adjusted Banking segment pre-tax pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net loss 23
Slide 25: Tangible assets and equity, tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share, tangible common equity to tangible assets, and on- balance sheet liquidity to tangible assets 24
Slide 26: Tangible assets and equity, tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets 25
Slide 27: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 26
Slide 28: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 27
Slide 29: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 28
Slide 30: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 29