Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2023 Earnings Presentation
30 slides from Fb Financial's earnings presentation, Apr 17, 2023
Slide 1: 2023 First Quarter Earnings Presentation
April 18, 2023 2023 First Quarter Earnings Presentation
Slide 2: Forward-Looking Statements
1 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, stat
Slide 3: Use of non-GAAP financial measures
2 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 li
Slide 4: 1Q 2023 Highlights
3 1Q 2023 Highlights Key highlights Strong capital ratios1 with no securities categorized HTM: – CET1 11.3% – Tier 1 RBC 11.6% – Total RBC 13.5% – Leverage ratio 10.3% Total deposits grew 12.2% annualized in 1Q 2023, or $327.1 million. Public funds accounted for the growth with a $313.2 million
Slide 5: Driving shareholder value
4 21% 31% 22% 8% 3% 1Q22 2Q22 3Q22 4Q22 1Q23 Driving shareholder value ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. Adjusted Earnings per Share1 $2.83 $3.73 $3.78 $
Slide 6: Well-capitalized for future opportunities
5 Well-capitalized for future opportunities Tangible book value per share3 Simple capital structure Common Equity Tier 1 Capital 84% Trust Preferred 2% Subordinated Notes 6% Tier 2 ACL 8% Total regulatory capital: $1,5572 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 $22.90 $23.86 3Q16 4Q16 4Q
Slide 7: Valuable core deposit base
6 Noninterest- bearing checking 22% Interest-bearing checking 30% Money market 31% Savings 4% Time 13% 52% Checking accounts Valuable core deposit base ¹ Noninterest bearing deposits includes mortgage servicing-related deposits of $131.1 million, $133.2 million, $140.8 million, $75.6 million, and $9
Slide 8: Well-balanced deposit portfolio
7 $4,659 $4,628 $4,621 $4,986 $5,028 $3,700 $3,568 $3,759 $3,797 $3,768 $2,637 $2,347 $1,626 $2,073 $2,387 $10,996 $10,543 $10,006 $10,856 $11,183 1Q22 2Q22 3Q22 4Q22 1Q23 Consumer Commercial Public $7,631 $7,320 $6,653 $7,289 $7,927 $3,365 $3,223 $3,353 $3,567 $3,256 $10,996 $10,543 $10,006 $10,856
Slide 9: Strong liquidity position
8 $2,176.6 $1,181.7 $889.7 $1,310.2 $1,609.2 17.5% 9.9% 7.4% 10.4% 12.5% $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 1Q22 2Q22 3Q22 4Q22 1Q23 On-Balance Sheet Liqudity On balance sheet liquidity / tangible assets Strong liquidity position On balance sheet liquidity Liquidity / uninsured and uncoll
Slide 10: Balanced loan portfolio
9 Office 19% Retail 24% Hotel 16% Warehouse / Industrial 17% Land-Manufactured Home Communities 6% Self Storage 5% Healthcare Facility 2% Other 11% 1-4 Family to be sold 46% Commercial Land 22% 1-4 Consumer Construction 8% Multifamily 9% Retail 4% Warehouse 2% Office 1% Other 8% 1-4 family 17% 1-4 f
Slide 11: Office exposure
10 Nashville 58% Memphis 10% Knoxville 6% Huntsville 5% Birmingham 3% Chattanooga 3% Other 5% Communities 10% 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 Projects characterized by significant cash equity re
Slide 12: Asset quality remains solid
11 0.40% 0.45% 0.40% 0.41% 0.38% 0.22% 0.20% 0.16% 0.04% 0.01% 0.07% 0.07% 0.44% 0.46% 0.62% 0.68% 0.61% 1Q22 2Q22 3Q22 4Q22 1Q23 Commercial loans HFS Optional GNMA repurchase Other NPAs 1.50% 1.46% 1.48% 1.44% 1.48% 1Q22 2Q22 3Q22 4Q22 1Q23 (0.03%) 0.09% 0.00% 0.02% 0.02% 1Q22 2Q22 3Q22 4Q22 1Q23 A
Slide 13: Allowance for credit losses overview
12 1.50% 0.92% 1.25% 0.86% 2.16% 1.60% 1.56% 1.67% 3.59% 1.44% 0.67% 1.12% 0.70% 2.40% 1.35% 1.66% 1.51% 3.67% 1.48% 0.67% 1.13% 0.70% 2.42% 1.35% 1.74% 1.82% 3.77% Gross Loans HFI Commercial & Industrial Non-Owner Occ CRE Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC C
Slide 14: Strong net interest margin
13 Strong net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment. 2 Excess liquidity defined as interest-bearing deposits with other financial institutions in excess of 5% of average tangible assets. Assumes funded from all interest bearing liabilities. $5,000 $7,000 $9,
Slide 15: Mortgage performance in 1Q 2023
14 Mortgage performance in 1Q 2023 Highlights Mortgage segment essentially broke even with pre-tax net loss of $0.2 million in 1Q 2023, a seasonally slow quarter for mortgage originations Interest rate lock commitment volume increased 33.2% in 1Q 2023 compared to 4Q 2022 Decay and interest rat
Slide 16: Managing expenses
15 Managing expenses Highlights Consolidated 1Q 2023 core efficiency ratio¹ of 63.4% Banking segment noninterest expense grew 2.4% as expected due to annual compensation increases and expense management initiatives; core efficiency ratio impacted by accelerating deposit growth and costs Mortgage
Slide 17: Appendix
FB RreBank Appendix
Slide 18: Adjusted net income and diluted earnings per share
17 GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 19: Adjusted pre-tax, pre-provision earnings
18 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 20: Adjusted earnings and diluted earnings per share
19 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share
Slide 21: Adjusted pre-tax, pre-provision earnings
20 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 22: Core efficiency ratio (tax-equivalent basis)
21 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 23: Segment core efficiency ratios (tax-equivalent basis)
22 GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis)
Slide 24: Adjusted Banking segment pre-tax pre-provision earnings; Mortgage segment pre-tax net loss
23 GAAP reconciliation and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net loss
Slide 25: Tangible assets and equity, tangible book value per share, on-balance sheet liquidity
24 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
Slide 26: Tangible assets and equity, tangible book value per share, TCE to tangible assets
25 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
Slide 27: Return on average tangible common equity
26 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
Slide 28: Adjusted return on average assets and common equity
27 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity
Slide 29: Return on average tangible common equity
28 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
Slide 30: Adjusted return on average assets and common equity
29 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity