Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2024 Earnings Presentation
28 slides from Fb Financial's earnings presentation, Apr 16, 2024
Slide 1: 2024 First Quarter Earnings Presentation
2024 First Quarter Earnings Presentation April 16, 2024
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: 1Q 2024 Highlights
1Q 2024 Highlights Key highlights Financial results 1Q 2024 pre-tax pre-provision net revenue of $35.0 million and $51.2 million on an adjusted1 basis, resulting ROAA and 1Q 2024 adjusted ROAA1 of 0.89% and 1.27%, respectively Balance sheet restructure during the quarter by selling $207.9 Dilute
Slide 5: Driving shareholder value
Driving shareholder value Earnings per Share Tangible Book Value per Share1 Earnings per Share Adjusted Earnings per Share 1 BVPS TBVPS $3.97 $3.70 $3.76 $31.05 $31.55 $30.13 $27.35 $28.36 $25.69 $26.21 $2.92 $3.01 $24.67 $2.64 $2.57 $21.73 $22.90 $1.67 $0.85 $0.59 2020 2021 2022 2023 YTD 2024 2020
Slide 6: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital Position Tangible Book Value per Share1 1Q23 4Q23 1Q24 Shareholder’s Equity/Assets 10.5% 11.5% 11.8% $24.67 $25.69 $26.21 $22.90 TCE/TA1 8.7% 9.7% 10.0% $21.73 $18.55 $17.02 Common Equity 11.3% 12.2% 12.6% $14.56 Tier 12 $11.56 $11.58 Tier 1 Risk-Bas
Slide 7: Building operating leverage
Building operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ Consolidated 1Q 2024 efficiency ratio Banking segment Consolidated Mortgage segment of 67.4%; core efficiency ratio¹ of 58.1% 105.3% Prudent expense management driving 93.9% 96.0% 96.5% meaningful improvements i
Slide 8: 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% $13,000 6.0% Avg. interest earning $11,000 Yields and Costs (%) 5.0% assets ($mm) 4.0% $9,000 3.0% 2.0% $7,000 1.0% -- $5,000 1Q23 2Q23 3Q23 4Q23 1Q24 NIM1 3.51% 3.40%
Slide 9: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other 5% 1-4 family 17% 1 C&I 30% 1-4 family HELOC 6% Multifamily 7% C&D 2 14% CRE 21% CRE2 exposure by type C&D exposure by type Assisted Living Other Facility Multifamily 6% Office 13% Healthcare Facility 4% 18% 4% Self S
Slide 10: Office exposure (non-owner occupied CRE & C&D)
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 1Q24 Credit detail by class Projects generally characterized by 25-30% cash equity requirement, loan to value maximums of 70%-75% at origination, and requests for guar
Slide 11: Asset quality remains solid
Asset quality remains solid Nonperforming assets / assets Nonperforming loans HFI / loans HFI Commercial loans HFS Optional GNMA repurchase 1 Other NPAs 0.71% 0.75% 0.73% 0.69% 0.65% 0.61% 0.59% 0.07% 0.17% 0.59% 0.07% 0.17% 0.07% 0.18% 0.49% 0.47% 0.16% 0.16% 0.52% 0.58% 0.46% 0.38% 0.36% 1Q23 2Q23
Slide 12: Allowance for credit losses overview
Allowance for credit losses overview Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: ACL on loans HFI / Loans HFI by category 1Q23 4Q23 1Q24 4.11% 4.05% 3.77% 2.94% 2.42% 2.53% 1.74% 1.69% 1.82% 1.78% 1.81% 1.60%1.63% 1.66% 1.48% 1.46% 1.46%
Slide 13: Valuable deposit base
Valuable deposit base Deposits by customer segment ($mm) Cost of deposits Consumer Commercial Public Noninterest-bearing as % of total deposits Cost of total deposits (%) $11,183 $10,872 45.0% 3.00% $10,639 $10,548 $10,505 2.76% 2.58% 2.65% 40.0% 2.38% $2,387 $1,924 $1,619 $1,597 $1,554 2.50% 35.0%
Slide 14: Strong liquidity position
Strong liquidity position Well positioned for economic challenges created by the On-balance sheet liquidity ($mm) uncertain economic environment On-balance sheet liquidity On-balance sheet liquidity / tangible assets Securities portfolio makes up 11.7% of total assets and does not include any HT
Slide 15: Mortgage performance in 1Q 2024
Mortgage performance in 1Q 2024 Highlights Interest rate lock commitment volume ($mm) Mortgage segment pre-tax net contribution of $3.1 million Purchase Refinance in 1Q 2024 Interest rate lock commitment volume increased 53.5% in 1Q 2024 compared to 4Q 2023 Decay and interest rate volatility l
Slide 16: Appendix
FB} pee Bank Appendix
Slide 17: Adjusted net income and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 16
Slide 18: Adjusted pre-tax pre-provision net revenue
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision net revenue 17
Slide 19: Adjusted tangible net income
GAAP reconciliations and use of non-GAAP financial measures Adjusted tangible net income 18
Slide 20: Adjusted earnings and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 19
Slide 21: Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios
GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios 20
Slide 22: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 21
Slide 23: Banking segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis) 22
Slide 24: Mortgage segment core efficiency and core revenue ratios
GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency (tax-equivalent basis) and core revenue ratios 23
Slide 25: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 24
Slide 26: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 25
Slide 27: Adjusted return on average tangible common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures 26
Slide 28: Adjusted return on average asset, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures 27