Fb Financial Corporation · NYSE:FBK
Fb Financial — Investor Presentation (January 2018)
30 slides from Fb Financial's investor presentation, Jan 26, 2018
Slide 1: First Quarter 2018 Investor Presentation
First Quarter 2018 Investor Presentation
Slide 2: Forward-looking statements
This investor 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 stateme
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures This investor 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. The Company’s management uses these non-GAAP financi
Slide 4: Over 100 years of history in Tennessee
Over 110 years of history in Tennessee 2003: Acquired The Bank of Murfreesboro in Nashville MSA 2007: Acquired branches from AmSouth Bank in Tennessee community markets 1984 1988 1996 1999 2001 2003 2004 2006 2012 2013 2015 Year: 2001: Opened branches in Nashville and Memphis 2004: Opened branch in
Slide 5: Snapshot of FB Financial today
Snapshot of FB Financial today Financial highlights Company overview Second largest Nashville-headquartered bank and third largest Tennessee-based bankOriginally chartered in 1906, one of the longest continually operated banks in Tennessee Completed the largest bank IPO in Tennessee history in Septe
Slide 6: Strategic drivers
Strategic drivers Great Place to Work Strategic M&A Experienced Senior Management Team Elite Financial Performer Scalable banking and mortgage platforms Local Decision Makers in Attractive Metro and Community Markets
Slide 7: A leading community bank headquartered in Tennessee
A leading community bank headquartered in Tennessee Top 10 banks in Tennessee¹ Top 10 banks under $25bn assets in Tennessee¹ Source: SNL Financial; Note: Deposit data as of June 30, 2017; Pro forma for pending acquisitions announced as of January 23, 20181 Sorted by deposit market share, deposits ar
Slide 8: Attractive footprint with balance between community and metropolitan markets
Attractive footprint with balance between stable community markets and high growth metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo 1 Source
Slide 9: Well positioned in attractive metropolitan markets
Well positioned in attractive metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo Nashville rankings: “The new 'it' City” – The New York Times1
Slide 10: 2017 Highlights: Key highlights and pro forma core financial results
(Dollars in millions, except per share) 2015 2016 2017 Diluted earnings per share2 $1.91 $2.40 $2.14 Tangible book value per share2 $10.66 $11.58 $14.56 Weighted average diluted shares (in millions) 17.2 19.3 28.2 Net income1,2 $32.9 $46.3 $60.4 Return on average assets1,2 1.28% 1.54% 1.56% Return o
Slide 11: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Drivers of profitability Core pro forma return on average assets1 ($million) Net interest margin Noninterest income ($mn) Loans / deposits 1 Pro forma net income and tax-adjusted return on average assets include a pro forma provision for fede
Slide 12: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration Loan portfolio breakdown1 4Q 2012 4Q 2017 Total HFI loans: $3,167 million 1 Exclude HFS loans; C&I includes owner-occupied CRE; CRE excludes owner-occupied CRE.2 Risk-based capital at
Slide 13: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($million) 1 Includes mortgage servicing-related escrow deposits of $46.8 million and $53.7 million for the years ended December 31, 2016 and 2017, respectively. Noninterest bearing deposits ($million)1 Deposit composition as of December 31, 201
Slide 14: Net interest margin driven by multiple levers
Net interest margin driven by multiple levers Historical yield and costs 1 Includes tax-equivalent adjustment2 Data for nonaccrual interest collections not available prior to 2016. NIM (%) 3.52% 3.75% 3.93% 3.97% 4.10% 4.46% NIM, ex-accretion and nonaccrual interest collections (%)2 3.52% 3.75% 3.93
Slide 15: Mortgage banking continues to execute across channels
$64.3 $ 94.5 $ 110.6 $ 2.3 $ 11.2 $ (3.5) $ 3.6 $ 12.1 $ 13.2 $ -- $ -- $ (3.4) $70.2 $117.8 $116.9 Mortgage banking continues to execute across channels Mortgage segment (excludes retail footprint) pre-tax core contribution to overall Company reduced to 11.5% in 4Q17 with Clayton Banks acquisition2
Slide 16: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated 2017 core efficiency ratio of 67.3% driven by Banking Segment core efficiency ratio of 58.6%, meeting our target level of sub-60%; Banking Segment core efficiency ratio of 55.6% in 4Q 2017Further realization of cost savings from Clayt
Slide 17: Asset quality continues to improve
Asset quality continues to improve Classified & PCI loans ($million)2 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
Slide 18: Strong capital position for future growth
Strong capital position for future growth 1 Total regulatory capital, FB Financial Corporation. December 31, 2017 calculation is preliminary and subject to change.2 Non-GAAP financial measure. See “Use of non-GAAP financial measures,” “Reconciliation of non-GAAP financial measures” and the Appendix
Slide 19: M&A Strategy
M&A Strategy1 Tuscaloosa Drive time from Nashville 3:30 / Huntsville 2:10Birmingham from Nashville 2:40 / Huntsville 1:30Atlanta 3:30 / Chattanooga 1:40Greenville 5:10 / Chattanooga 3:30 / Knoxville 2:40Asheville 4:20 / Knoxville 1:50Blacksburg 5:50 / Knoxville 3:20Roanoke 6:10 / Knoxville 3:40Bowli
Slide 20: Appendix
Appendix (FB) FirstBank
Slide 21: Reconciliation: Pro forma core net income
Reconciliation of non-GAAP financial measures Pro forma core net income
Slide 22: Reconciliation: Pro forma core diluted earnings per share
Reconciliation of non-GAAP financial measures (cont’d) Pro forma core diluted earnings per share
Slide 23: Reconciliation: Tax-equivalent core efficiency ratio
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue.
Slide 24: Reconciliation: Tax-equivalent core efficiency ratio (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue.
Slide 25: Reconciliation: Segment tax-equivalent core efficiency ratio
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio
Slide 26: Reconciliation: Segment tax-equivalent core efficiency ratio (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio
Slide 27: Tangible book value per common share and TCE to tangible assets
Tangible book value per common share and tangible common equity to tangible assets Reconciliation of non-GAAP financial measures (cont’d) On June 28, 2016, the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25
Slide 28: Reconciliation: Core pro forma return on average assets and equity
Reconciliation of non-GAAP financial measures (cont’d) Core pro forma return on average assets and equity Core pro forma return on average tangible equity
Slide 29: Reconciliation: Segment core, pre-tax contribution
Reconciliation of non-GAAP financial measures (cont’d) Segment core, pre-tax contribution
Slide 30: Reconciliation: Segment core, pre-tax contribution (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment core, pre-tax contribution