Fb Financial Corporation · NYSE:FBK
Fb Financial — Q4 2017 Earnings Presentation
21 slides from Fb Financial's earnings presentation, Jan 22, 2018
Slide 1: Fourth Quarter and Year End 2017 Earnings Presentation
Fourth Quarter and Year End 2017 Earnings Presentation January 23, 2018
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements throu
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 2017 and full-year 2017 highlights
Three months endedDecember 31, 2017 Non-GAAP Core results1 Reported GAAP results Diluted earnings per share $0.60 $0.74 Net income ($million) $18.7 $23.0 Net interest margin 4.35% 4.63% Return on average assets 1.59% 1.96% Return on average equity 12.8% 15.8% Return on average tangible common equity
Slide 5: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Drivers of profitability Core pro forma return on average assets1 ($million) Net interest margin Noninterest income ($mn) Loans / deposits 1 Our pro forma net income includes a pro forma provision for federal income taxes using a combined eff
Slide 6: Peer-leading net interest margin remains strong
Peer-leading net interest margin remains strong Historical yield and costs 1 Includes tax-equivalent adjustment NIM (%) 3.99% 4.28% 4.19% 4.61% 4.63% NIM, ex-accretion and nonaccrual interest collections (%) 3.90% 4.04% 4.03% 4.33% 4.35% Deposit cost (%) 0.29% 0.32% 0.34% 0.46% 0.50% Loan (HFI) yiel
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration Loan portfolio breakdown1 4Q 2012 4Q 2017 Total HFI loans: $3,167 million 1 Exclude HFS loans, C&I includes owner-occupied CRE2 Risk-based capital at FirstBank as defined in Call Repo
Slide 8: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($million) 1 Includes mortgage servicing-related escrow deposits of $46.7 million, $43.7 million, $49.9 million, $56.8 million and $53.7 million for the quarters ended December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017 and Dece
Slide 9: Mortgage banking continues to execute across channels
$29.5 $29.6 $29.6 ($7.1) ($0.8) ($3.3) $3.8 $3.5 $4.2 $ -- ($0.9) ($0.2) $26.2 $31.3 $30.3 Mortgage banking continues to execute across channels 2017 Mortgage Segment pre-tax core contribution of $16.8 millionTypical seasonal weakness offset by higher than expected Consumer Direct volumes and streng
Slide 10: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated 4Q 2017 core efficiency ratio of 63.6% driven by Banking Segment core efficiency ratio of 55.6%, approaching our target level of sub-55% Conversion of Clayton Banks core systems on December 1; expect 1Q 2018 to be the first quarter wi
Slide 11: Asset quality remains strong
Asset quality remains strong Classified & PCI loans ($million) Net charge-offs / average loans Nonperforming ratios LLR / loans 1 Includes $5.9 million of acquired excess land and facilities at December 31, 2017 and $43.0 million of GNMA rebooked loans – see page 11 of the Quarterly Financial Supple
Slide 12: Strong capital position for future growth
Strong capital position for future growth 1 Total regulatory capital, FB Financial Corporation. 4Q 2017 calculation is preliminary and subject to change.2 See “Use of non-GAAP financial measures” and the Appendix hereto. Capital position Simple capital structure 4Q 2016 3Q 2017 4Q 20171 Shareholder’
Slide 13: Appendix
Appendix (FB) FirstBank
Slide 14: Core net income
GAAP reconciliation and use of non-GAAP financial measures Core net income (Dollars in thousands) 2017 2016 Core net income Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Pre-tax net income $ 27,504 $ 12,990 $ 17,813 $ 15,178 $ 13,797 Non-core items: Noninterest income Less
Slide 15: Pro forma core net income
GAAP reconciliation and use of non-GAAP financial measures Pro forma core net income (Dollars in thousands) Pro forma core net income YTD 2017 2016 2015 2014 Pre-tax net income $ 73,485 $ 62,324 $ 50,824 $ 34,731 Non-core items: Noninterest income Less change in fair value on mortgage servicing righ
Slide 16: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio (Dollars in thousands) 2017 2016 Core efficiency ratio (tax-equivalent basis) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Total noninterest expense $ 57,540 $ 69,224 $ 49,136 $ 46,
Slide 17: Segment tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Segment tax-equivalent efficiency ratio (Dollars in thousands) 2017 2016 Banking segment core efficiency ratio (tax equivalent) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Core consolidated noninterest expense $
Slide 18: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity Return on average tangible equity (Dollars in thousands) 2017 2016 Tangible assets and equity Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Tangible Assets Total assets $ 4,727,713 $ 4,58
Slide 19: Core return on average tangible equity
GAAP reconciliation and use of non-GAAP financial measures Core return on average tangible equity Core return on average assets and equity (Dollars in thousands) 2017 2016 Core return on average tangible equity Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Pre-tax net inco
Slide 20: Pro forma core return on average assets and equity; core total revenue
GAAP reconciliation and use of non-GAAP financial measures Pro forma core return on average assets and equity Core total revenue (Dollars in thousands) 2017 2016 Core total revenue Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Net interest income $ 48,983 $ 43,610 $ 30,427
Slide 21: Business mix by core, pre-tax contribution
GAAP reconciliation and use of non-GAAP financial measures Business mix by core, pre-tax contribution (Dollars in thousands) 2017 2016 Business mix by core, pre-tax contribution Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Pre-tax net income $ 27,504 $ 12,990 $ 17,813 $ 1