Fb Financial Corporation · NYSE:FBK
Fb Financial — Q4 2019 Earnings Presentation
24 slides from Fb Financial's earnings presentation, Jan 21, 2020
Slide 1: 2019 Fourth Quarter and Annual Earnings Presentation
2019 Fourth Quarter and Annual Earnings Presentation January 21, 2020
Slide 2: Important Information for Shareholders and Investors
IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORS In connection with the proposed merger with Franklin, FB Financial will file a registration statement on Form S-4 with the SEC. The registration statement will contain the joint proxy statement of Franklin and FB Financial to be sent to the FB Fin
Slide 3: Forward-Looking Statements
Forward–Looking Statements Certain statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements in
Slide 4: 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 include, without limitati
Slide 5: 4Q 2019 and annual highlights
4Q 2019 and annual highlights Key highlights Financial results ◼ Adjusted diluted EPS1 of $0.70 and $2.83 for 4Q 2019 and 2019, 4Q19 FY 2019 respectively, resulting in – Adjusted ROAA1 of 1.42% for 4Q 2019 and 1.55% for 2019 Diluted earnings per share $0.68 $2.65 Adjusted diluted earnings per share¹
Slide 6: Delivering balanced profitability and growth
Delivering balanced profitability and growth Pro forma return on average assets, adjusted¹ 1.69% 1.52% 1.55% 1.46% 1.21% 2015 2016 2017 2018 2019 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) NPLs (HFI) / loans (HFI) (%) Loans excluding HFS Loans HFS 101% 95% $
Slide 7: Net interest margin remains strong
Net interest margin remains strong Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $6,000 Avg. interest earning 6.0% $5,000 Yields and Costs (%) assets ($mm) 5.0% $4,000 4.0% $3,000 3.0% $2,000 2.0% 1.0% $1,000 -- $0 4Q18 1Q19 2Q19 3Q19 4Q19 NIM (%
Slide 8: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 4Q19 3Q19 (preliminary) C&D loans subject to 100% risk- 89% 88% $4,345 $4,410 based capital threshold $4,290 $3,66
Slide 9: Stable core deposit franchise
Stable core deposit franchise Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 30.0% 24.7% 24.5% $4,843 $4,922 $4,935 25.0% 23.0% 22.8% 22.4% $30 $25 $20 $4,303 20.0% 1.14% 1.14% 1.11% $4,172 $61 1.03% 1.02
Slide 10: Mortgage operations overview
Mortgage operations overview Highlights Quarterly mortgage production ◼ Total Mortgage pre-tax contribution of $3.0mm for 4Q 2019; Consumer Direct 4Q18 3Q19 4Q19 adjusted contribution of $11.7mm for 2019; adjusted for Retail $2.0mm of restructuring related expenses Wholesale ◼ Mortgage banking incom
Slide 11: Managing operating leverage
Managing operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ ◼ Consolidated 4Q 2019 core efficiency ratio¹ Banking segment of 66.5% Consolidated Mortgage segment 93.3% 92.4% 85.0% ◼ Integration of Atlantic Capital branch acquisition completed and in line with expectations 67.
Slide 12: Asset quality remains solid
Asset quality remains solid Nonperforming ratios Classified & PCI loans ($mm) NPLs (HFI)/loans (HFI) NPAs/assets 1 Classified Purchased credit impaired 0.77% $79 $80 $66 $69 $69 $67 0.61% 0.57% 0.59% 0.62% 0.60% $61 $63 $63 $57 0.46% 0.47% 0.41% 0.43% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q1
Slide 13: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share2 4Q18 3Q19 4Q191 $18.03 $18.55 Shareholder’s 13.1% 12.2% 12.4% equity/Assets $11.56 $11.58 TCE/TA² 10.5% 9.4% 9.7% Common equity 11.7% 10.8% 11.1% tier 1/Risk-weighted 3Q16 4Q16 3Q19 4Q19 assets Simple capital s
Slide 14: Appendix
FB} Fee Bank Appendix
Slide 15: Net income and diluted earnings per share, adjusted
GAAP reconciliation and use of non-GAAP financial measures Net income and diluted earnings per share, adjusted 14
Slide 16: Pro forma net income and diluted earnings per share, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income and diluted earnings per share, adjusted* 15
Slide 17: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 16
Slide 18: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 17
Slide 19: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 18
Slide 20: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 19
Slide 21: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity 20
Slide 22: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 21
Slide 23: Return on average tangible common equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity, adjusted Return on average assets and equity, adjusted 22
Slide 24: Pro forma return on average assets and equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma return on average assets and equity, adjusted 23