Slide 1: 2018 Fourth Quarter and Annual Earnings Presentation
2018 Fourth Quarter and Annual Earnings Presentation January 23, 2019
Slide 2: Forward looking statements
Forward looking statements This presentation contains “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, that have been made pursuant to the safe harbor provisions of the Privat
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: 4Q 2018 and annual 2018 highlights
4Q 2018 and annual 2018 highlights Key highlights Financial results Adjusted diluted EPS of $0.55 and $2.61, resulting in 4Q 2018 FY 2018 Diluted earnings per share $0.54 $2.55 adjusted ROAA of 1.37% and 1.69% for 4Q 2018 and Adjusted diluted earnings per $0.55 $2.61 2018, respectively share1 Lo
Slide 5: Delivering balanced profitability and growth
Delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.69% 1.52% 1.46% 1.21% 0.91% 2014 2015 2016 2017 2018 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($mn) NPLs (HFI) / loans (HFI) (%) Loans excluding HFS Loans HFS $145 1.2
Slide 6: Net interest margin remains strong
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 -- $0 4Q17 1Q18 2Q18 3Q18 4Q18 NIM (%) 4.63% 4.64% 4.81% 4.71% 4.50% Impact of
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 3Q18 4Q18 (preliminary) $3,668 C&D loans subject to 100% risk- $3,416 $3,539 91% 94% $3,245 based capital threshol
Slide 8: Stable core deposit franchise
Stable core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) $4,172 30.0% $4,129 24.7% 24.8% $3,910 $103 25.0% 23.5% 23.3% 22.8% $112 $3,766 $3,664 $66 $81 20.0% 0.80% $86 1.03% 15.0% 0.62% 0.50% 0.55% $4,017 $4,069 $3,844 10.0% $3,578 $
Slide 9: Mortgage operations overview
Mortgage operations overview Highlights Quarterly mortgage production Total mortgage pre-tax loss (including Consumer Direct retail footprint) of $1.8 million for 4Q18, in- Correspondent 4Q17 3Q18 4Q18 line with prior guidance, and contribution of $5.0 million 2018 YTD Third party originated Retai
Slide 10: Improving operating leverage
Improving operating leverage Improving operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 4Q 2018 core efficiency ratio of 65.4% driven by Banking Banking Segment Segment core efficiency ratio of 52.9%, Consolidated which has decreased by 250 basis points since 4Q 2017
Slide 11: Asset quality remains stable
Asset quality remains stable Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 1.52% $89 $86 $78 $74 $69 $66 $58 $60 $55 $53 0.61% 0.59% 0.52% 0.51% 0.46% 0.32% 0.30% 0.30% 0.26% 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 4Q17 3Q18 4Q181 $17.02 $16.25 Shareholder’s equity / 12.6% 12.8% 13.1% Assets $11.56 $11.58 TCE / TA2 9.7% 10.2% 10.5% 3Q16 4Q16 3Q18 4Q18 Common equity tier 1 / 10.7% 11.5% 11.7% 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: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio 16
Slide 18: GAAP reconciliation: Segment tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Segment tax-equivalent efficiency ratio 17
Slide 19: GAAP reconciliation: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 18
Slide 20: GAAP reconciliation: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity Return on average tangible equity 19
Slide 21: GAAP reconciliation: Return on average tangible equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible equity, adjusted 20
Slide 22: 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 21
Slide 23: GAAP reconciliation: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity Return on average tangible common equity, adjusted 22