Fb Financial Corporation · NYSE:FBK
Fb Financial — Q2 2018 Earnings Presentation
21 slides from Fb Financial's earnings presentation, Jul 24, 2018
Slide 1: Second Quarter 2018 Earnings Presentation
Second Quarter 2018 Earnings Presentation July 24, 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: 2Q 2018 highlights
2Q 2018 highlights Key highlights Financial results Adjusted diluted EPS of $0.721, resulting in adjusted Three months ended ROAA of 1.91%1 June 30, 2018 Non-GAAP Loans (HFI) grew to $3.4 billion, a 73.3% increase from adjusted Reported 2Q 2017; grew 21.1% annualized from 1Q 2018 results1 GAAP r
Slide 5: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.85% 1.46% 1.52% 1.21% 0.91% 2014 2015 2016 2017 YTD 2018 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($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 -- $0 2Q17 3Q17 4Q17 1Q18 2Q18 NIM (%) 4.19% 4.61% 4.63% 4.64% 4.8
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 1Q18 2Q18 (preliminary) C&D loans subject to 100% risk- $3,416 98% 105% $3,115 $3,167 $3,245 based capital thresho
Slide 8: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) 30.0% $3,910 26.2% 24.9% 24.7% 24.8% $3,766 24.2% $3,718 $3,664 25.0% $66 $104 $81 $86 20.0% 15.0% 0.62% 0.50% 0.55% $2,728 $3,685 $3,844 0.46% $3,614 $3,578 10.0% 0.
Slide 9: Mortgage operations overview
Mortgage operations overview Highlights Mortgage production 2Q 2018 Mortgage Segment pre-tax Consumer Direct contribution of $1.9 million. Total mortgage pre-tax contribution (including retail footprint) Correspondent 2Q17 1Q18 2Q18 of $3.2 million, 10.4% of adjusted Third party originated consoli
Slide 10: Improving operating leverage
Improving operating leverage Improving operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 2Q 2018 core efficiency ratio of 62.1% driven by Banking Banking Segment Segment core efficiency ratio of 51.7%, Consolidated which has improved by 874 basis points since 2Q 2017
Slide 11: Asset quality remains strong
Asset quality remains strong Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 1.52% $92 $89 $86 $78 $60 $58 0.88% $55 $53 0.58% 0.59% $38 0.50% 0.52% 0.29% 0.32% 0.30% 0.26% $16 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 2Q17 1Q18 2Q181 $15.66 $14.99 Shareholder’s equity / 15.2% 12.9% 12.8% $11.56 $11.58 Assets TCE / TA2 13.9% 10.2% 10.1% 3Q16 4Q16 1Q18 2Q18 Common equity tier 1 / 17.2% 11.0% 10.7% Simple capital structure Risk-
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 2018 2017 Net income, adjusted Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Pre-tax net income $ 29,859 $ 25,236 $ 27,504 $ 12,990 $ 17,813 Plus merger and offering-related expenses 671 1,193
Slide 15: GAAP reconciliation: Pro forma net income, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income, adjusted Pro forma net income, adjusted YTD 2018 2017 2016 2015 2014 Pre-tax net income $ 55,095 $ 73,485 $ 62,324 $ 50,824 $ 34,731 Plus merger and offering-related expenses 1,864 19,034 3,268 3,543 - Less signficant g
Slide 16: GAAP reconciliation: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio 2018 2017 Core efficiency ratio (tax-equivalent basis) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Total noninterest expense $ 56,303 $ 56,151 $ 57,540 $ 69,224 $ 49,136 Less varia
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) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Core consolidated noninterest expense $ 55,632 $ 54,958 $ 55,47
Slide 18: GAAP reconciliation: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 2018 2017 Mortgage contribution, adjusted Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Mortgage segment pre-tax net contribution $ 1,916 $ 1,111 $ 3,269 $ 3,948 $ 3,747 Retail footp
Slide 19: GAAP reconciliation: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity 2018 2017 Tangible assets and equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Tangible Assets Total assets $ 4,923,249 $ 4,725,416 $ 4,727,713 $ 4,581,943 $ 3,346,570 Less goodwill 1
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 2018 2017 Return on average tangible equity, adjusted Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Average tangible common equity 465,145 447,544 427,940 432,206 347,842
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 Pro forma return on average assets and equity, adjusted YTD 2018 2017 2016 2015 2014 Pro forma Net income $ 41,819 $ 52,398 $ 40,951 $ 47,856 $ 32,462 Average assets 4,719,932 3,811,158 3,001,275