Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation July 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: 2Q 2019 highlights
2Q 2019 highlights Key highlights Financial results Adjusted diluted EPS1 of $0.70, resulting in adjusted 2Q19 ROAA1 of 1.54% Diluted earnings per share $0.59 Completed acquisition of branches from Atlantic Capital Adjusted diluted earnings per share1 $0.70 Bank with $375.0 million in loans and
Slide 5: Delivering balanced profitability and growth
Delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.69% 1.58% 1.52% 1.46% 1.21% 2015 2016 2017 2018 YTD 2019 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($mn) NPLs (HFI) / loans (HFI) (%) Loans excluding HFS Loans HFS $145
Slide 6: Net interest margin remains strong
Net interest margin remains strong Historical yield and costs 7.0% $6,000 Avg. interest earning assets 6.0% $5,000 Yields and Costs (%) 5.0% $4,000 ($mm) 4.0% $3,000 3.0% $2,000 2.0% 1.0% $1,000 -- $0 2Q18 3Q18 4Q18 1Q19 2Q19 NIM (%) 4.81% 4.71% 4.50% 4.61% 4.39% Impact of accretion and nonaccrual i
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 1Q19 2Q19 (preliminary) $4,290 C&D loans subject to 100% risk- 91% 92% $3,668 $3,787 based capital threshold $3,41
Slide 8: Stable core deposit franchise
Stable core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) 30.0% $4,843 24.8% 23.3% 23.0% $30 25.0% 22.8% 22.4% $4,303 $4,129 $4,172 20.0% $61 1.14% 1.14% $3,910 $112 $103 1.03% 15.0% $66 $4,813 0.80% $4,242 10.0% $4,017 $4,069 0.62% $
Slide 9: Mortgage operations overview
Mortgage operations overview Highlights Quarterly mortgage production Total Mortgage adjusted pre-tax Consumer Direct contribution1 of $2.6 million for 2Q 2019; adjusted for $0.8 million of restructuring Retail 2Q18 1Q19 2Q19 related expenses Third party originated (TPO) Correspondent Mortgage b
Slide 10: Managing operating leverage
Managing operating leverage Managing operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 2Q 2019 core efficiency ratio1 of 65.9% driven by Banking Banking segment segment core efficiency ratio1 of 58.5% Consolidated Mortgage segment Integration of branch acquisition i
Slide 11: Asset quality remains stable
Asset quality remains stable Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 0.61% 0.59% $78 0.57% $74 0.52% 0.51% $66 $69 $69 $67 0.46% $58 $60 $61 $63 0.41% 0.43% 0.30% 0.26% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 2Q18 1Q19 2Q191 $17.73 $17.18 Shareholder’s equity / 12.8% 13.0% 12.1% Assets $11.56 $11.58 TCE / TA2 10.1% 10.5% 9.2% 3Q16 4Q16 1Q19 2Q19 Common equity tier 1 / 10.6% 12.0% 10.4% Simple capital structure Risk-w
Slide 13: Appendix
Appendix FB) FirstBank
Slide 14: GAAP reconciliation: Net income and diluted EPS, adjusted
GAAP reconciliation and use of non-GAAP financial measures Net income and diluted earnings per share, adjusted 13
Slide 15: Pro forma net income and diluted EPS, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income and diluted earnings per share, adjusted* 14
Slide 16: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 15
Slide 17: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 16
Slide 18: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 17
Slide 19: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity Return on average tangible common equity 18
Slide 20: Return on average tangible common equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity, adjusted Return on average assets and equity, adjusted 19
Slide 21: Pro forma return on average assets and equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma return on average assets and equity, adjusted 20