Fb Financial Corporation · NYSE:FBK
Fb Financial — KBW Conference 2024
35 slides from Fb Financial's conference presentation, Feb 14, 2024
Slide 1: First Quarter 2024 Investor Presentation
February 15, 2024 First Quarter 2024 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, 2023 and is presented on a pro forma basis for announced acquisitions since June 30, 2023. 2 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and non-GAAP reconciliations herein. 3 4Q23 calculati
Slide 5: Strategic Drivers
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 2023 Recent Corporate History 1 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. 2 Concentration ratio for FirstBank. 3 4Q23 calculation is preliminary and subject to change. Note: Financial data presented on a conso
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, 2023 and is presented on a pro forma basis for announced acquisitions since June 30, 2023. 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. 2 4Q23 calculation is preliminary and subject to change. Earnings per Share $2.65 $1.67 $3.97 $2.64 $2.57 $2.83 $3.70 $3.76 $2.92 $3.01 2019 2020 2021 2022 2023 Ear
Slide 9: Significant projected reduction in run-rate expenses
8 Significant projected reduction in run-rate expenses Highlights Consolidated 4Q 2023 efficiency ratio of 68.9%; core efficiency ratio¹ of 61.7% Reduced annual core expense projection by $20 million for 2024 vs. 2023 Q4 charges resulting from expense reductions and FDIC assessment: $2.2 mil
Slide 10: Stabilizing net interest margin
9 Stabilizing net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment. $5,000 $7,000 $9,000 $11,000 $13,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 4Q22 1Q23 2Q23 3Q23 4Q23 Av g. in te re st e ar ni ng as se ts ($ m m ) Yi el ds a nd C os ts (% ) Average interest earning as
Slide 11: Well-capitalized for future opportunities
10 Well-capitalized for future opportunities 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: $1,636 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 $22.90 $25.69 3Q16 2016 20
Slide 12: Balanced loan portfolio
11 Residential Development 49% Commercial 26% Consumer 13% Multifamily 12%Office 18% Retail 25% Hotel 16% Warehouse/Industrial 16% Land-Mobile Home Park 6% Self Storage 6% Healthcare Facility 4% Other 9% 1-4 family 17% 1-4 family HELOC 6% Multifamily 6% C&D 15% CRE 21% C&I 31% Other 4% Balanced loan
Slide 13: Office exposure
12 Nashville 58% Memphis 10% Knoxville 5% Huntsville 5% Birmingham 5% Chattanooga 3% Other 4% Communities 10% Class A 24% Class B 39% Class C 12% Under $2 Million 25% Office exposure (non-owner occupied CRE & C&D) Office loans represent only 3.8% of our total HFI loan portfolio as of the end of 4Q
Slide 14: Allowance for credit losses overview
13 1.44% 0.67% 1.12% 0.70% 2.40% 1.35% 1.66% 1.51% 3.67% 1.57% 1.05% 1.19% 0.87% 2.47% 1.37% 1.65% 1.77% 3.95% 1.60% 1.14% 1.18% 0.86% 2.53% 1.46% 1.69% 1.78% 4.11% Gross Loans HFI Commercial & Industrial Non-Owner Occ CRE Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC C
Slide 15: Asset quality remains solid
14 0.02% 0.02% 0.03% 0.02% (0.04%) 4Q22 1Q23 2Q23 3Q23 4Q23 0.41% 0.38% 0.36% 0.46% 0.52% 0.20% 0.16% 0.16% 0.18% 0.17%0.07% 0.07% 0.07% 0.07% 0.68% 0.61% 0.59% 0.71% 0.69% 4Q22 1Q23 2Q23 3Q23 4Q23 Commercial loans HFS Optional GNMA repurchase Other NPAs 1.44% 1.48% 1.51% 1.57% 1.60% 4Q22 1Q23 2Q23
Slide 16: Valuable deposit base
15 Noninterest- bearing checking 21% Interest-bearing checking 24% Money market 36% Savings 4% Time 15% 45% Checking accounts Valuable deposit base Cost of deposits 4Q23 Deposit composition 24.7% 22.3% 22.1% 22.2% 21.0% 1.20% 1.94% 2.38% 2.58% 2.65% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 4Q22
Slide 17: Strong liquidity position
16 $1,310.2 $1,609.2 $1,444.5 $1,345.8 $1,353.3 10.4% 12.5% 11.4% 11.0% 11.0% $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 4Q22 1Q23 2Q23 3Q23 4Q23 On-balance sheet liquidity On-balance sheet liquidity / tangible assets Strong liquidity position On-balance sheet liquidity ($mm) Liquidity / Uninsure
Slide 18: Mortgage performance in 4Q 2023
17 Mortgage performance in 4Q 2023 Highlights Mortgage segment pre-tax net loss of $2.2 million in 4Q 2023 Interest rate lock commitment volume decreased 34.1% in 4Q 2023 compared to 3Q 2023 Decay and interest rate volatility led to MSR fair value losses, net of hedging of $4.87 million in 4Q
Slide 19: Appendix
18 Appendix
Slide 20: Adjusted net income and diluted earnings per share
19 GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 21: Adjusted pre-tax pre-provision earnings
20 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision earnings
Slide 22: Adjusted tangible net income
21 GAAP reconciliations and use of non-GAAP financial measures 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
23 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision earnings
Slide 25: Adjusted tangible net income
24 GAAP reconciliations and use of non-GAAP financial measures Adjusted tangible net income
Slide 26: Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios
25 GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios
Slide 27: Core efficiency ratio (tax-equivalent basis)
26 GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 28: Banking segment core efficiency ratios (tax-equivalent basis)
27 GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis)
Slide 29: Mortgage segment core efficiency and core revenue ratios
28 GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency (tax-equivalent basis) and core revenue ratios
Slide 30: Tangible assets, common equity and related measures
29 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 31: Tangible assets, common equity and related measures
30 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 32: Adjusted return on average tangible common equity and related measures
31 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures
Slide 33: Adjusted return on average asset, common equity and related measures
32 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures
Slide 34: Adjusted return on average tangible common equity and related measures
33 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures
Slide 35: Adjusted return on average asset, common equity and related measures
34 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures