Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2018 Earnings Presentation
21 slides from Fb Financial's earnings presentation, Oct 23, 2018
Slide 1: Third Quarter 2018 Earnings Presentation
Third Quarter 2018 Earnings Presentation October 23, 2018
Slide 2: Forward looking statements
Forward looking statements Certain statements contained in this presentation are 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 include, witho
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: 3Q 2018 highlights
3Q 2018 highlights Key highlights Financial results Diluted EPS of $0.68, resulting in ROAA of 1.72% Three months ended September 30, 2018 Loans (HFI) grew to $3.5 billion, a 13.6% increase from Non-GAAP 3Q 2017; grew 14.3% annualized from 2Q 2018 adjusted Reported results1 GAAP results Custom
Slide 5: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.81% 1.52% 1.46% 1.21% 0.91% 2014 2015 2016 2017 YTD 2018 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($mn) NPLs (HFI) / loans (HFI) (%) Loans excluding HFS L
Slide 6: Peer-leading net interest margin remains strong
Peer-leading net interest margin remains strong Historical yield and costs 7.0% $5,000 $4,500 Avg. interest earning assets 6.0% Yields and Costs (%) $4,000 5.0% $3,500 $3,000 ($mm) 4.0% $2,500 3.0% $2,000 2.0% $1,500 $1,000 1.0% $500 -- $0 3Q17 4Q17 1Q18 2Q18 3Q18 NIM (%) 4.61% 4.63% 4.64% 4.81% 4.7
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 2Q18 3Q18 (preliminary) C&D loans subject to 100% risk- $3,416 $3,539 105% 91% $3,245 based capital threshold3 $3,
Slide 8: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) $4,129 30.0% $3,910 24.9% 24.7% 24.8% $112 25.0% 23.5% 23.3% $3,718 $3,766 $66 $3,664 $81 20.0% 0.80% $104 $86 15.0% 0.55% 0.62% $4,017 0.46% 0.50% $3,844 $3,614 $3,5
Slide 9: Mortgage operations overview
Mortgage operations overview Highlights Mortgage production Total mortgage pre-tax contribution Consumer Direct (including retail footprint) of $1.5 million Correspondent 3Q17 2Q18 3Q18 for 3Q18, in-line with prior guidance, and $6.8 million YTD Third party originated Retail Retail footprint Mor
Slide 10: Improving operating leverage
Improving operating leverage Improving operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 3Q 2018 core efficiency ratio of 63.7% driven by Banking Banking Segment Segment core efficiency ratio of 52.4%, Consolidated which has decreased by 376 basis points since 3Q 2017
Slide 11: Asset quality remains stable
Asset quality remains stable Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 1.52% $92 $89 $86 $78 $74 0.88% $60 $58 $60 $55 $53 0.59% 0.52% 0.51% 0.29% 0.32% 0.30% 0.26% 0.30% 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 3Q17 2Q18 3Q181 $15.66 $16.25 Shareholder’s equity / 12.5% 12.8% 12.8% $11.56 $11.58 Assets TCE / TA2 9.5% 10.1% 10.2% 3Q16 4Q16 2Q18 3Q18 Common equity tier 1 / 10.8% 10.6% 11.5% Simple capital structure Risk-w
Slide 13: Appendix
Appendix FB) FirstBank
Slide 14: GAAP reconciliation: Net income, adjusted
GAAP reconciliation and use of non-GAAP financial measures Net income, adjusted 13
Slide 15: GAAP reconciliation: Pro forma net income, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income, adjusted 14
Slide 16: GAAP reconciliation: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio 15
Slide 17: GAAP reconciliation: Segment tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Segment tax-equivalent efficiency ratio 2018 2017 Banking segment core efficiency ratio (tax equivalent) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Core consolidated noninterest expense $ 57,213 $ 55,687 $ 54,958
Slide 18: GAAP reconciliation: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 17
Slide 19: GAAP reconciliation: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity Return on average tangible equity 18
Slide 20: GAAP reconciliation: Return on average tangible equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible equity, adjusted Return on average assets and equity, adjusted 19
Slide 21: GAAP reconciliation: Return on average assets and equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average assets and equity, adjusted 20