Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2023 Earnings Presentation
27 slides from Fb Financial's earnings presentation, Oct 17, 2023
Slide 1: 2023 Third Quarter Earnings Presentation
2023 Third Quarter Earnings Presentation October 17, 2023
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 2023 Highlights
3Q 2023 Highlights Key highlights Financial results NIM increased to 3.42% from 3.40% in the previous quarter; Total loans 3Q 2023 held for investment (HFI) yield increased to 6.54% in 3Q 2023 from 6.34% in 2Q 2023; Total deposit cost increased to 2.58% in 3Q Diluted earnings per common share $0.4
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 Adj. TBVPS (Ex. AOCI) $3.97 $3.73 $3.78 $30.13 $28.36 $29.31 $28.04 $27.35 $26.53 $2.83 $2.91 $24.56 $24.55 $2.65 $2.64 $24.67 $21.15 $22.90 $23.93 $2.24 $21.73 $1.
Slide 6: Significant projected reduction in run-rate expenses
Significant projected reduction in run-rate expenses Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Consolidated 3Q 2023 efficiency ratio of Consolidated 145.4% 76.2%; core efficiency ratio¹ of 63.1% Mortgage segment 128.9% Banking segment recognized $4.8 million in ear
Slide 7: 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 3Q22 4Q22 1Q23 2Q23 3Q23 NIM1 3.93% 3.78%
Slide 8: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital Position Tangible Book Value per Share1 3Q22 2Q23 3Q232 Shareholder’s Equity/Assets 10.5% 10.8% 11.0% $24.67 $23.93 $22.90 TCE/TA1 8.5% 9.0% 9.2% $21.73 $18.55 $17.02 Common Equity 10.9% 11.7% 11.8% $14.56 Tier 1 $11.56 $11.58 Tier 1 Risk-Based 11.2%
Slide 9: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other C&I CRE-OO Total % of Total 4% Real estate rental and leasing $ 355 $ 247 $ 602 21% 1-4 family 1 17% Finance and insurance 316 16 332 11% C&I Retail trade 119 149 268 9% 31% Manufacturing 177 83 260 9% 1-4 family HELO
Slide 10: Office exposure (non-owner occupied CRE & C&D)
Office exposure (non-owner occupied CRE & C&D) Office loans represent only 3.9% of our total HFI loan portfolio as of the end of 3Q23 Credit detail by class Projects generally characterized by 25-30% cash equity requirement, loan Average Oustanding Wtd. Avg. Wtd. Avg. to value maximums of 70%-75
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 0.59% 0.68% 0.71% 0.62% 0.47% 0.49% 0.49% 0.47% 0.61% 0.59% 0.07% 0.07% 0.07% 0.07% 0.18% 0.22% 0.20% 0.16% 0.16% 0.40% 0.41% 0.46% 0.38% 0.36% 3Q2
Slide 12: Allowance for credit losses overview
Allowance for credit losses overview Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: ACL on loans HFI / Loans HFI by category 3Q22 2Q23 3Q23 3.86% 3.95% 3.56% 2.47% 2.44% 2.47% 1.81% 1.77% 1.64% 1.77% 1.65
Slide 13: Valuable deposit base
Valuable deposit base Deposits by customer segment ($mm) Cost of deposits Consumer Commercial Public Noninterest-bearing (%) Cost of total deposits (%) $10,856 $11,183 $10,872 35.0% $10,639 2.38% 2.58% $10,006 29.6% 30.0% $2,073 $2,387 $1,924 $1,619 1.94% $1,626 25.0% 24.7% 22.3% 22.1% 22.2% $3,797
Slide 14: Strong liquidity position
Strong liquidity position Well positioned to weather the current environment On-balance sheet liquidity ($mm) Securities portfolio makes up 10.8% of total assets and does not include On-balance sheet liqudity any HTM securities On-balance sheet liquidity / tangible assets On-balance sheet liqu
Slide 15: Mortgage performance in 3Q 2023
Mortgage performance in 3Q 2023 Highlights Interest rate lock commitment volume ($mm) Mortgage segment was slightly above break even in 3Q Purchase Refinance 2023 Interest rate lock commitment volume decreased 7.4% in 3Q 2023 compared to 2Q 2023 Decay and interest rate volatility led to MSR fa
Slide 16: Appendix
FB) pe 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 earnings
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision earnings Adjusted tangible net income 17
Slide 19: Adjusted earnings and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 18
Slide 20: 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 19
Slide 21: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 20
Slide 22: 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) 21
Slide 23: 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 22
Slide 24: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 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: 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 25
Slide 27: 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 26