Fb Financial Corporation · NYSE:FBK
Fb Financial — Raymond James Conference 2023
35 slides from Fb Financial's conference presentation, Sep 5, 2023
Slide 1: Third Quarter 2023 Investor Presentation
September 6, 2023 Third Quarter 2023 Investor 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: Snapshot of FB Financial today
3 Snapshot of FB Financial today 1 Source: S&P Global. Market data is as of June 30, 2022 and is presented on a pro forma basis for announced acquisitions since June 30, 2022. 2 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. Financial Overvi
Slide 5: Strategic Drivers Poised for Solid Performance
4 Strategic Drivers Poised for Solid Performance Proven Opportunistic Acquirer with Scalable Platforms and Technology Highly Motivated Senior Management Team Great Place to Work Organic Growth Focused Empowered Teams Across Attractive Metropolitan and Community Markets
Slide 6: Recent Corporate History
5 2018 2019 2020 2021 2022 YTD 2023 Recent Corporate History 1 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. Note: Financial data presented on a consolidated basis. 20202018 Initiated quarterly dividend Completed secondary offering of 3
Slide 7: Well Positioned in High Growth Markets
6 Well Positioned in High Growth Markets 1 Source: S&P Global. Market data is as of June 30, 2022 and is presented on a pro forma basis for announced acquisitions since June 30, 2022. 2 Source: S&P Global. FBK Footprint is based on weighted average demographics of MSAs and counties not located in MS
Slide 8: Driving shareholder value
7 Driving shareholder value ¹ Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. Earnings per Share $2.65 $1.67 $3.97 $2.64 $1.53 $2.83 $3.73 $3.78 $2.91 $1.53 2019 2020 2021 2022 1H 2023 Earnings per Share Adjusted Earnings per Share1 Dashboard
Slide 9: Well-capitalized for future opportunities or challenges
8 Well-capitalized for future opportunities or challenges Tangible Book Value per Share1 Simple Capital Structure Common Equity Tier 1 Capital 84% Trust Preferred 2% Subordinated Notes 6% Tier 2 ACL 8% Total regulatory capital: $1,588 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 $22.90 $24.23
Slide 10: Strong liquidity position
9 $1,181.7 $889.7 $1,310.2 $1,609.2 $1,444.5 9.9% 7.4% 10.4% 12.5% 11.4% $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 2Q22 3Q22 4Q22 1Q23 2Q23 On-Balance Sheet Liqudity On balance sheet liquidity / tangible assets Strong liquidity position On-Balance Sheet Liquidity ($mm) Liquidity / Uninsured and
Slide 11: Well-balanced deposit portfolio
10 $4,628 $4,621 $4,986 $5,028 $4,919 $3,568 $3,759 $3,797 $3,768 $4,029 $2,347 $1,626 $2,073 $2,387 $1,924 $10,543 $10,006 $10,856 $11,183 $10,872 2Q22 3Q22 4Q22 1Q23 2Q23 Consumer Commercial Public $7,320 $6,653 $7,289 $7,927 $7,859 $3,223 $3,353 $3,567 $3,256 $3,013 $10,543 $10,006 $10,856 $11,18
Slide 12: Valuable customer deposit base
11 Noninterest- bearing checking 22% Interest-bearing checking 26% Money market 33% Savings 4% Time 15% 48% Checking accounts Valuable customer deposit base Total deposits ($mm) Cost of deposits Deposit composition $2,896 $2,967 $2,677 $2,489 $2,400 $7,647 $7,039 $8,179 $8,694 $8,472 $10,543 $10,006
Slide 13: Balanced loan portfolio
12 Residential Development 45% Commercial 31% Consumer 14% Multifamily 10%Office 19% Retail 25% Hotel 16% Warehouse / Industrial 17% Land-Manufactured Home Communities 6% Self Storage 5% Other 12% 1-4 family 17% 1-4 family HELOC 5% Multifamily 6% C&D 18% CRE 20% C&I 30% Other 4% Balanced loan portfo
Slide 14: Office exposure
13 Nashville 57% Memphis 10% Knoxville 6% Huntsville 6% Birmingham 4% Chattanooga 3% Other 4% Communities 10% Class A 22% Class B 40% Class C 11% Under $2 Million 27% 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 2Q
Slide 15: Asset quality remains solid
14 0.45% 0.40% 0.41% 0.38% 0.36% 0.22% 0.20% 0.16% 0.16%0.01% 0.07% 0.07% 0.07%0.46% 0.62% 0.68% 0.61% 0.59% 2Q22 3Q22 4Q22 1Q23 2Q23 Commercial loans HFS Optional GNMA repurchase Other NPAs 1.46% 1.48% 1.44% 1.48% 1.51% 2Q22 3Q22 4Q22 1Q23 2Q23 0.09% 0.00% 0.02% 0.02% 0.03% 2Q22 3Q22 4Q22 1Q23 2Q23
Slide 16: Allowance for credit losses overview
15 1.46% 0.69% 1.20% 0.70% 2.44% 1.66% 1.47% 1.62% 3.67% 1.48% 0.67% 1.13% 0.70% 2.42% 1.35% 1.74% 1.82% 3.77% 1.51% 0.67% 1.22% 0.73% 2.44% 1.32% 1.77% 1.81% 3.86% Gross Loans HFI Commercial & Industrial Non-Owner Occ CRE Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC C
Slide 17: Stabilizing net interest margin
16 Stabilizing 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. $5,000 $7,000 $9,000 $11,000 $13,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 6
Slide 18: Managing expenses
17 Managing expenses Highlights Consolidated 2Q 2023 core efficiency ratio¹ of 63.5% Banking segment core noninterest expense decreased by $1.7 million, or 2.5%, from the prior quarter as we focus on expense control and efficiencies Mortgage segment core efficiency ratio¹ for Q2 2023 reflects Apr
Slide 19: Mortgage performance in 2Q 2023
18 Mortgage performance in 2Q 2023 Highlights Mortgage segment recorded a pre-tax net loss of $1.3 million in 2Q 2023 Interest rate lock commitment volume increased 7.4% in 2Q 2023 compared to 1Q 2023 Decay and interest rate volatility led to MSR fair value losses, net of hedging of $4.2 milli
Slide 20: Appendix
19 Appendix
Slide 21: Adjusted net income and diluted earnings per share
20 GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 22: Adjusted pre-tax, pre-provision earnings; Adjusted tangible net income
21 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings Adjusted tangible net income
Slide 23: Adjusted earnings and diluted earnings per share
22 GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share
Slide 24: Adjusted pre-tax, pre-provision earnings; Adjusted tangible net income
23 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings Adjusted tangible net income
Slide 25: Adjusted Common Equity Tier 1 and Total Capital Ratios
24 GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Capital Ratios
Slide 26: Core efficiency ratio (tax-equivalent basis)
25 GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 27: Banking segment core efficiency ratios (tax-equivalent basis)
26 GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis)
Slide 28: Mortgage segment core efficiency ratios (tax-equivalent basis)
27 GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency ratios (tax-equivalent basis)
Slide 29: Adjusted Banking segment pre-tax pre-provision earnings
28 GAAP reconciliations and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net loss
Slide 30: Tangible assets and equity, tangible book value per share, liquidity
29 GAAP reconciliations 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 31: Tangible assets and equity, tangible book value per common share
30 GAAP reconciliations 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 32: Return on average tangible common equity
31 GAAP reconciliations and use of non-GAAP financial measures Return on average tangible common equity
Slide 33: Adjusted return on average assets and common equity
32 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets and common equity
Slide 34: Return on average tangible common equity
33 GAAP reconciliations and use of non-GAAP financial measures Return on average tangible common equity
Slide 35: Adjusted return on average assets and common equity
34 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets and common equity