Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2022 Earnings Presentation
28 slides from Fb Financial's earnings presentation, Oct 18, 2022
Slide 1: 2022 Third Quarter Earnings Presentation
2022 Third Quarter Earnings Presentation October 18, 2022
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 may include, without limi
Slide 4: 3Q 2022 highlights
3Q 2022 highlights Key highlights Financial results Noninterest-bearing deposits grew 9.73% annualized in 3Q 2022, 3Q 2022 or $71.0 million; year-over-year noninterest-bearing deposit growth of 16.8% (balances exclude mortgage escrow related deposits) Diluted earnings per share $0.68 Adjusted dilu
Slide 5: Driving shareholder value
Driving shareholder value Adjusted Earnings per Share1 Tangible Book Value per Share1 TBVPS Adj. TBVPS (Ex. AOCI) $3.73 $3.78 $25.84 $24.67 $24.55 $2.83 $21.73 $21.15 $21.85 $2.61 $18.55 $18.16 $2.06 $17.02 $17.16 2018 2019 2020 2021 YTD 2022 2018 2019 2020 2021 3Q22 Short Term Performance Dashboard
Slide 6: Strong net interest margin
Strong net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 6.0% $13,000 5.0% Avg. interest earning $11,000 Yields and Costs (%) assets ($mm) 4.0% 3.0% $9,000 2.0% $7,000 1.0% -- $5,000 3Q21 4Q21 1Q22 2Q22 3Q22 NIM1 3.20% 3.19% 3.04% 3.52
Slide 7: Mortgage performance in 3Q 2022
Mortgage performance in 3Q 2022 Highlights Retail channel interest rate lock commitments ($mm) Mortgage segment pre-tax net loss of $3.7 million in 3Q Purchase Refinance 2022 $927 Restructuring of Mortgage segment materially $741 $688 complete, segment was profitable latter half of quarter $398
Slide 8: Managing expenses and investing to support growth
Managing expenses and investing to support growth Highlights Core efficiency ratio (tax-equivalent basis)¹ Consolidated 3Q 2022 core efficiency ratio¹ Banking segment 128.9% of 60.7% Consolidated Mortgage segment 111.8% Banking segment realizing the benefits of an 100.5% asset sensitive balance
Slide 9: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 3Q211 2Q221 3Q221,2 Shareholder’s equity/Assets 11.9% 10.8% 10.5% $24.67 $21.73 $21.85 $18.55 TCE/TA3 9.9% 8.9% 8.5% $17.02 $14.56 $11.56 $11.58 Common equity 12.4% 11.5% 10.9% tier 1/Risk-weighted assets 3Q16
Slide 10: Valuable core deposit base
Valuable core deposit base Total deposits ($mm) Cost of deposits Noninterest-bearing (%) Cost of total deposits (%) 35.0% 29.6% 30.0% 27.5% 25.9% 25.3% 25.4% 25.0% $10,837 $10,996 20.0% $10,540 15.0% $10,072 $10,006 0.52% 10.0% 0.26% 0.22% 0.20% 0.25% 5.0% 0.0% 3Q21 4Q21 1Q22 2Q22 3Q22 Deposit compo
Slide 11: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry Other 4% 1-4 family 1 17% C&I 30% 1-4 family HELOC 5% Multifamily 4% C&D 18% CRE 2 22% CRE2 exposure by type C&D exposure by type Other Office Other Warehouse 1% 8% 16% Office Retail 2% Healthcare Facility 21% 3% 2% Multifamily Self Sto
Slide 12: Asset quality remains solid
Asset quality remains solid Nonperforming Assets1 / Assets Nonperforming Loans (HFI) / Loans (HFI) 0.62% 1 0.50% 0.50% 0.44% 0.46% 0.22% 0.59% 0.62% 0.51% 0.51% 0.47% 0.40% 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 LLR/loans HFI Net charge-offs (recoveries) / average loans 0.13% 0.12% 1.91%
Slide 13: 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: ACL / Loans HFI by Category 3Q21 2Q22 3Q22 3.70% 3.67% 3.56% 3.46% 2.50% 2.44% 2.47% 2.15% 1.91% 1.66% 1.64% 1.62% 1.46%
Slide 14: Appendix
FB} pee Bank Appendix
Slide 15: 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 14
Slide 16: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 15
Slide 17: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 16
Slide 18: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 17
Slide 19: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 18
Slide 20: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 19
Slide 21: Adjusted Banking segment pre-tax pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings 20
Slide 22: Adjusted Mortgage segment pre-tax net (loss) contribution
GAAP reconciliation and use of non-GAAP financial measures Adjusted Mortgage segment pre-tax net (loss) contribution 21
Slide 23: Tangible assets and equity, tangible book value per share
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 22
Slide 24: Tangible assets and equity, tangible book value per share
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 23
Slide 25: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 24
Slide 26: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 25
Slide 27: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 26
Slide 28: Adjusted return on average assets and common equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity 27