Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2021 Earnings Presentation
38 slides from Fb Financial's earnings presentation, May 4, 2021
Slide 1: Second Quarter 2021 Investor Presentation
May 4, 2021 Second Quarter 2021 Investor Presentation
Slide 2: Forward-Looking Statements
1 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, stat
Slide 3: Use of non-GAAP financial measures
2 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 limita
Slide 4: Snapshot of FB Financial today
3 Snapshot of FB Financial today Note: Unaudited financial data as of March 31, 2021; presented on a consolidated basis. 1 Non-GAAP financial measure. See “Use of non-GAAP financial measures” and “Reconciliation of non-GAAP financial measures” in the Appendix hereto. Financial results Balance sheet
Slide 5: Strategic drivers
4 Strategic drivers Elite Financial Performance Proven Opportunistic Acquirer with Scalable Platforms and Technology Experienced Senior Management Team Great Place to Work Organic Growth Focused Empowered Teams Across Attractive Metro and Community Markets
Slide 6: Recent corporate history
5 2017 2018 2019 2020 2021 Recent corporate history 1 See “Use of non-GAAP financial measures,” and “Reconciliation of non-GAAP financial measures” in the Appendix hereto. Note: Financial data presented on a consolidated basis. 202020182017 ◼ Completed acquisition of Clayton Bank & Trust and America
Slide 7: Well positioned in high growth markets
6 Well positioned in high growth markets 1 Source: SNL Financial. Market data is as of June 30, 2020 and is presented on a pro forma basis for announced acquisitions since June 30, 2020. 2 Source: SNL Financial. FBK Footprint is based on weighted average demographics of MSAs and counties not located
Slide 8: Core earnings power remains strong
7 Core earnings power remains strong ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. Adjusted return on average assets¹ 1.52% 1.69% 1.55% 1.68% 1.89% 2017 2018 2019 20
Slide 9: Stabilizing net interest margin
8 Stabilizing net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment 2 Excess liquidity defined as interest-bearing deposits with other financial institutions in excess of 5% of average tangible assets. Assumes funded from all interest bearing liabilities. $0 $2,000 $4,0
Slide 10: Strong mortgage division
9 4Q20 Strong mortgage division Highlights ◼ Strong total mortgage pre-tax contribution of $16.3 million, or 71% of 4Q 2020’s adjusted contribution1 ◼ Refinance volumes have slowed considerably as a result of rising rates; outlook for purchase volume remains strong ◼ Margins continue to compress as
Slide 11: Prudent expense management
10 Prudent expense management Highlights ◼Consolidated 1Q 2021 core efficiency ratio¹ of 63.0% ◼Change in segment definitions this quarter as mortgage retail footprint no longer included in the banking segment ◼Banking segment efficiency ratio elevated due to elevated seasonal expenses ◼Mortgage eff
Slide 12: Well-capitalized for future opportunities
11 Well-capitalized for future opportunities Tangible book value per share3 Simple capital structure Common Equity Tier 1 Capital 82% Trust Preferred 2% Subordinated Notes 9% Tier 2 ACL 7% Total regulatory capital: $1,3531 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $22.51 3Q16 4Q16 4Q17 4Q18 4Q19
Slide 13: Solid core deposit base
12 Noninterest- bearing checking 24% Interest-bearing checking 30% Money market 29% Savings 4% Time 13% 54% Checking accounts Solid core deposit base ¹ Includes mortgage servicing-related deposits of $110.1 million, $149.1 million, $194.3 million, $147.9 million, and $170.9 million for the quarters
Slide 14: Loan portfolio composition
13 Retail 20% Hotel 19% Office 19% Warehouse / Industrial 9% Land-Mobile Home Park 4% Self Storage 3% Healthcare Facility 3% Other 23% Balance Ex. PPP PPP C&I CRE-OO Total % of Total Loans Real Estate Rental and Leasing 351.9$ 163.5$ 515.3$ 24.7% 3.1$ Retail Trade 67.6 133.5 201.1 9.7% 7.8 Finance a
Slide 15: Minimal remaining deferrals
14 Minimal remaining deferrals Deferral programs Principal and Interest Deferrals ($21 million) ▪Of the $1.6 billion in loans given a deferral, $152 million, or 2.16% of total loans HFI, remain in some sort of deferral as of March 31, 2021 – $21 million are full principal and interest deferrals, or
Slide 16: Industries of concern
15 ◼ Industries initially considered to be the most susceptible to issues associated with the pandemic ◼ Significant level of initial deferrals but steady improvement and return to pre-COVID payment plans ◼ Credit quality remains satisfactory overall ◼ Retail, transportation and other leisure not sh
Slide 17: Hotel portfolio – 4.8% of gross loans HFI
16 Hotel portfolio – 4.8% of gross loans HFI Outstanding by location Deferral ProgressionRisk Rating Progression ◼ Portfolio representative of seasoned operators, good flags and good locations (73% Hilton / Hyatt / IHG / Marriott / Wyndham) ◼ Portfolio is largely limited and full service properties,
Slide 18: Healthcare portfolio – 4.5% of loans HFI
17 Healthcare portfolio – 4.5% of loans HFI Portfolio overview Deferral participantsCredit quality Assisted Living / Nursing Care / Continuing Care 38% Offices of Physicians 27% Mental Health and Substance Abuse 12% Other Healthcare and Social Assistance 23% Note: Exposures included will differ from
Slide 19: Restaurant – 2.3% of gross loans HFI
18 Restaurant – 2.3% of gross loans HFI Portfolio overview C&I 58% Non-Owner Occ CRE 38% C&D 1% Other 3% ◼ Majority are owner operators ◼ Portfolio split roughly evenly between limited service and full service outlets ◼ Limited service has seen an ability to change their model, leading to improvemen
Slide 20: Asset quality remains solid
19 0.68% 0.72% 0.61% 0.91% 0.94% 0.74% 0.71% 0.64% 0.75% 0.77% 1Q20 2Q20 3Q20 4Q20 1Q21 NPLs (HFI)/loans (HFI) NPAs/assets 1.95% 2.51% 2.66% 2.48% 2.29% 1Q20 2Q20 3Q20 4Q20 1Q21 0.19% 0.00% (0.01%) 0.58% 0.05% 1Q20 2Q20 3Q20 4Q20 1Q21 Asset quality remains solid Nonperforming ratios Classified loans
Slide 21: Allowance for credit losses overview
20 FQE, FYE 12/31, 2Q 2021 3Q 2021 2021 2022 2023 2024 2025 GDP (bcw$) 19,068.1$ 19,215.5$ 19,147.9$ 19,943.6$ 20,575.9$ 21,112.0$ 21,588.5$ Annualized % Change 2.9% 3.1% 3.9% 4.2% 3.2% 2.6% 2.3% Total Employment (millions) 142.9 143.0 143.1 145.8 147.8 150.0 151.6 Unemployment Rate 6.7% 7.0% 6.7% 5
Slide 22: Appendix
FB PeeBank Appendix
Slide 23: Adjusted net income and diluted earnings per share
22 GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 24: Adjusted pre-tax, pre-provision earnings
23 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 25: Adjusted earnings and diluted earnings per share
24 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share*
Slide 26: Adjusted pre-tax, pre-provision earnings
25 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 27: Core efficiency ratio (tax-equivalent basis)
26 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 28: Core efficiency ratio (tax-equivalent basis)
27 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 29: Segment core efficiency ratios (tax-equivalent basis)
28 GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis)
Slide 30: Adjusted mortgage contribution
29 GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution
Slide 31: Tangible assets and equity
30 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity
Slide 32: Return on average tangible common equity
31 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
Slide 33: Adjusted return on average tangible common equity
32 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average tangible common equity Adjusted return on average assets and equity
Slide 34: Adjusted pre-tax, pre-provision return on average tangible common equity
33 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision return on average tangible common equity Adjusted pre-tax, pre-provision return on average assets and equity
Slide 35: Adjusted return on average assets and equity
34 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity Adjusted pre-tax, pre-provision return on average assets and equity
Slide 36: Adjusted return on average assets and equity
35 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity Adjusted pre-tax, pre-provision return on average assets and equity
Slide 37: Return on average tangible common equity
36 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity Adjusted return on average tangible common equity
Slide 38: Adjusted allowance for credit losses to loans held for investment
37 GAAP reconciliation and use of non-GAAP financial measures Adjusted allowance for credit losses to loans held for investment