Fb Financial Corporation · NYSE:FBK
Fb Financial — Q2 2023 Earnings Presentation
32 slides from Fb Financial's earnings presentation, Jul 18, 2023
Slide 1: 2023 Second Quarter Earnings Presentation
2023 Second Quarter Earnings Presentation July 18, 2023
Slide 2: Forward-Looking Statements
Forward–Looking Statements Certain statements contained in this Presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statem
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 may include, without limi
Slide 4: 2Q 2023 Highlights
2Q 2023 Highlights Key highlights Financial results Continued boosting balance sheet strength in preparation for challenges 2Q 2023 associated with economic recession or opportunities ushered in from economic stability Diluted earnings per share $0.75 Strong preliminary capital ratios with no se
Slide 5: Driving shareholder value
Driving shareholder value Earnings per Share Tangible Book Value per Share1 Earnings per Share Adjusted Earnings per Share 1 BVPS TBVPS Adj. TBVPS (Ex. AOCI) $3.97 $3.73 $3.78 $30.13 $29.64 $28.36 $27.72 $27.35 $26.53 $2.83 $2.91 $24.56 $24.55 $2.65 $2.64 $24.67 $21.15 $24.23 $22.90 $21.73 $18.16 $1
Slide 6: Well-capitalized for future opportunities or challenges
Well-capitalized for future opportunities or challenges Preliminary Capital Position Tangible Book Value per Share1 2Q22 1Q23 2Q23 Shareholder’s Equity/Assets 10.8% 10.5% 10.8% $24.67 $24.23 $22.90 TCE/TA1 8.9% 8.7% 9.0% $21.73 $18.55 $17.02 Common Equity 11.5% 11.3% 11.7% $14.56 Tier 1 $11.56 $11.5
Slide 7: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other 4% 1-4 family 17% C&I1 30% 1-4 family HELOC 5% Multifamily 6% C&D 18% CRE 2 20% CRE2 exposure by type C&D exposure by type Other Consumer Multifamily Resi. Development Healthcare Facility 9% Construction 11% Construct
Slide 8: Asset quality remains solid
Asset quality remains solid Nonperforming Assets / Assets Nonperforming Loans (HFI) / Loans (HFI) Commercial loans HFS Optional GNMA repurchase 1 0.68% Other NPAs 0.62% 0.61% 0.07% 0.59% 0.51% 0.47% 0.49% 0.49% 0.47% 0.07% 0.07% 0.46% 0.22% 0.20% 0.16% 0.16% 0.01% 0.45% 0.40% 0.41% 0.38% 0.36% 2Q22
Slide 9: Office exposure (non-owner occupied CRE & C&D)
Office exposure (non-owner occupied CRE & C&D) Office loans represent only 4.0% of our total HFI loan portfolio as of the end of 2Q23 Credit detail by class Projects generally characterized by 25-30% cash equity requirement, loan to value maximums of 70%-75% at origination, and requests for guar
Slide 10: Allowance for credit losses overview
Allowance for credit losses overview Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: ACL / Loans HFI by Category 2Q22 1Q23 2Q23 3.86% 3.67% 3.77% 2.44% 2.42% 2.44% 1.74% 1.77% 1.82% 1.81% 1.66% 1.62% 1.46%
Slide 11: Strong liquidity position
Strong liquidity position Well positioned to weather the current environment On-Balance Sheet Liquidity ($mm) On-Balance Sheet Liqudity Securities portfolio makes up 11.0% of total assets and does On balance sheet liquidity / tangible assets not include any HTM securities $2,500.0 $2,000.0 $1,60
Slide 12: Valuable core deposit base
Valuable core deposit base Total deposits ($mm) Cost of deposits Noninterest-bearing (%) Cost of total deposits (%) 35.0% $11,183 2.38% $10,856 $10,872 30.0% 29.6% $10,543 27.5% 1.94% 25.0% 24.7% $10,006 22.3% 22.1% 20.0% 15.0% 1.20% 10.0% 0.52% 0.25% 5.0% 0.0% 2Q22 3Q22 4Q22 1Q23 2Q23 $7,647 $8,179
Slide 13: Well-balanced deposit portfolio
Well-balanced deposit portfolio Deposits by customer segment ($mm) Customer deposit funded balance sheet $11,183 96.9% 94.2% 95.3% $10,543 $10,856 $10,872 91.1% 92.5% $10,006 $2,073 $2,387 $1,924 $2,347 $1,626 $3,797 $3,768 $4,029 $3,568 $3,759 $4,628 $4,621 $4,986 $5,028 $4,919 6.6% 3.6% 5.5% 1.5%
Slide 14: Stabilizing net interest margin
Stabilizing net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $13,000 6.0% Avg. interest earning $11,000 Yields and Costs (%) 5.0% assets ($mm) 4.0% $9,000 3.0% 2.0% $7,000 1.0% -- $5,000 2Q22 3Q22 4Q22 1Q23 2Q23 NIM1 3.52% 3.93%
Slide 15: Mortgage performance in 2Q 2023
Mortgage performance in 2Q 2023 Highlights Interest rate lock commitment volume ($mm) Mortgage segment recorded a pre-tax net loss of $1.3 Purchase Refinance million in 2Q 2023 $701 Interest rate lock commitment volume increased 7.4% in $113 2Q 2023 compared to 1Q 2023 Decay and interest rate
Slide 16: Managing expenses
Managing expenses Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Consolidated 2Q 2023 core efficiency ratio¹ Consolidated 145.4% of 63.5% Mortgage segment 128.9% Banking segment core noninterest expense 111.8% decreased by $1.7 million, or 2.5%, from the 106.9% prior qu
Slide 17: Appendix
FB) pe Bank Appendix
Slide 18: Adjusted net income and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 17
Slide 19: Adjusted pre-tax, pre-provision earnings; adjusted tangible net income
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings Adjusted tangible net income 18
Slide 20: Adjusted earnings and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 19
Slide 21: Adjusted pre-tax, pre-provision earnings; adjusted tangible net income
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings Adjusted tangible net income 20
Slide 22: Adjusted Common Equity Tier 1 and Total Capital Ratios
GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Capital Ratios 21
Slide 23: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 22
Slide 24: Banking segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis) 23
Slide 25: Mortgage segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency ratios (tax-equivalent basis) 24
Slide 26: Adjusted Banking pre-tax pre-provision earnings; Mortgage pre-tax net loss
GAAP reconciliations and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net loss 25
Slide 27: Tangible assets and equity, TBVPS, TCE/TA, liquidity to tangible assets
GAAP reconciliations and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share, tangible common equity to tangible assets, and on- balance sheet liquidity to tangible assets 26
Slide 28: Tangible assets and equity, TBVPS, TCE/TA
GAAP reconciliations and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets 27
Slide 29: Return on average tangible common equity
GAAP reconciliations and use of non-GAAP financial measures Return on average tangible common equity 28
Slide 30: Adjusted return on average assets and common equity
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets and common equity 29
Slide 31: Return on average tangible common equity
GAAP reconciliations and use of non-GAAP financial measures Return on average tangible common equity 30
Slide 32: Adjusted return on average assets and common equity
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average assets and common equity 31