Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2021 Earnings Presentation
33 slides from Fb Financial's earnings presentation, Apr 27, 2021
Slide 1: 2021 First Quarter Earnings Presentation
2021 First Quarter Earnings Presentation April 27, 2021
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 include, without limitati
Slide 4: 1Q 2021 highlights
1Q 2021 highlights Key highlights Financial results ◼ Hired two experienced senior bankers and opened a loan production 1Q 2021 office in Birmingham, AL in existing FirstBank mortgage facilities with plans to open a full service branch later in 2021 Diluted earnings per share $1.10 Adjusted diluted
Slide 5: Core earnings power remains intact
Core earnings power remains intact Adjusted return on average assets¹ 1.89% 1.69% 1.68% 1.52% 1.55% 2017 2018 2019 2020 1Q21 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) Core efficiency ratio1 Loans excluding HFS Loans HFS 4.66% $302 101% 4.46% 95% 95% 15% 4.3
Slide 6: Stabilizing net interest margin
Stabilizing net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $12,000 6.0% Avg. interest earning $10,000 Yields and Costs (%) 5.0% assets ($mm) $8,000 4.0% $6,000 3.0% 2.0% $4,000 1.0% $2,000 -- $0 1Q20 2Q20 3Q20 4Q20 1Q21 NIM1 3.
Slide 7: Mortgage continues to capitalize on rate environment
Mortgage continues to capitalize on rate environment Highlights Quarterly mortgage production ◼ Strong total mortgage pre-tax contribution of $16.3 million, or Consumer Direct 1Q20 4Q20 1Q21 71% of 4Q 2020’s adjusted contribution1 Retail ◼ Refinance volumes have slowed considerably as a result of ri
Slide 8: Realizing operating leverage through cost savings
Realizing operating leverage through cost savings Highlights Core efficiency ratio (tax-equivalent basis)¹ ◼ Consolidated 1Q 2021 core efficiency ratio¹ Banking segment of 63.0% 75.6% Consolidated Mortgage segment 70.4% 65.7% 65.2% 62.0% 63.0% 60.9% 61.7% ◼ Change in segment definitions this quarter
Slide 9: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 1Q201 4Q201 1Q211,2 Shareholder’s equity/Assets 11.8% 11.5% 11.1% $22.51 $21.73 $18.55 $17.02 TCE/TA3 9.1% 9.4% 9.1% $14.56 $11.56 $11.58 Common equity 11.0% 11.7% 12.1% tier 1/Risk-weighted assets 3Q16 4Q16 4Q
Slide 10: Cost of core deposit base continues to decline
Cost of core deposit base continues to decline Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 35.0% 29.8% $10,257 30.0% $9,457 24.8% 25.2% 24.0% 23.7% $9,094 $38 25.0% $92 $62 20.0% 15.0% $5,953 $10,219 0
Slide 11: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry Other Balance Ex. PPP PPP 4% C&I CRE-OO Total % of Total Loans 1-4 family 15% Real Estate Rental and Leasing $ 351.9 $ 163.5 $ 515.3 24.7% $ 3.1 C&I1 Retail Trade 67.6 133.5 201.1 9.7% 7.8 31% 1-4 family HELOC Finance and Insurance 152.
Slide 12: Minimal remaining deferrals
Minimal remaining deferrals Deferral programs Principal and Interest Deferrals ($21 million) ▪ Of the $1.6 billion in loans given a deferral, $152 million, or $8.9 2.16% of total loans HFI, remain in some sort of deferral as of March 31, 2021 – $21 million are full principal and interest deferrals,
Slide 13: Industries of concern
Industries of concern ◼ Industries initially considered to be the most susceptible to Industry exposures / gross loans (HFI) issues associated with the pandemic 8.9% ◼ Significant level of initial deferrals but steady improvement and return to pre-COVID payment plans ◼ Credit quality remains satisfa
Slide 14: Hotel portfolio – 4.8% of gross loans HFI
Hotel portfolio – 4.8% of gross loans HFI ◼ Portfolio representative of seasoned operators, good flags and Outstanding by location good locations (73% Hilton / Hyatt / IHG / Marriott / Wyndham) Other Community Out of Market 3% 5% ◼ Portfolio is largely limited and full service properties, which are
Slide 15: Healthcare portfolio – 4.5% of loans HFI
Healthcare portfolio – 4.5% of loans HFI ◼ Continue to report satisfactory results with the exception of Portfolio overview assisted living segment Other Healthcare and Social Assisted Living / Assistance ◼ Increase in substandards this quarter related to two credits 23% Nursing Care / Continuing Ca
Slide 16: Restaurant – 2.3% of gross loans HFI
Restaurant – 2.3% of gross loans HFI ◼ Majority are owner operators Portfolio overview ◼ Portfolio split roughly evenly between limited service and full service outlets Other C&D 3% 1% ◼ Limited service has seen an ability to change their model, leading to improvement ◼ Full service continues to be
Slide 17: Asset quality remains solid
Asset quality remains solid Nonperforming ratios Classified loans / loans HFI 1 1,2 NPLs (HFI)/loans (HFI) NPAs/assets 2.22% 0.91% 0.94% 1.83% 1.87% 0.74% 0.72% 0.71% 0.75% 0.77% 1.76% 1.63% 0.68% 0.64% 0.61% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 LLR/loans HFI (excluding PPP loans)3 Net
Slide 18: Allowance for credit losses overview
Allowance for credit losses overview ◼ Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: FQE, FYE 12/31, 2Q 2021 3Q 2021 2021 2022 2023 2024 2025 GDP (bcw$) $ 19,068.1 $ 19,215.5 $ 19,147.9 $ 19,943.6 $ 20,575.
Slide 19: Appendix
FB} Fee Bank Appendix
Slide 20: 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 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: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share* 21
Slide 23: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 22
Slide 24: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 23
Slide 25: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 24
Slide 26: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 25
Slide 27: Adjusted mortgage contribution
GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution 26
Slide 28: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and 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 tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average tangible common equity Adjusted return on average assets and equity 29
Slide 31: Adjusted pre-tax, pre-provision return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision return on average tangible common equity Adjusted pre-tax, pre-provision return on average assets and equity 30
Slide 32: Adjusted return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity Adjusted pre-tax, pre-provision return on average assets and equity 31
Slide 33: Adjusted Allowance for Credit Losses to Loans Held for Investment
GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment 32