Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation October 22, 2019
Slide 2: Forward looking statements
Forward looking statements Certain statements contained in this presentation may constitute 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 inc
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: 3Q 2019 highlights
3Q 2019 highlights Key highlights Financial results Adjusted diluted EPS1 of $0.77, resulting in: 3Q19 – Adjusted ROAA1 of 1.61% – Adjusted ROATCE1 of 17.7% Diluted earnings per share $0.76 Adjusted diluted earnings per share1 $0.77 Announced acquisition of FNB Financial Corporation in Scottsvil
Slide 5: Delivering balanced profitability and growth
Delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.69% 1.59% 1.52% 1.46% 1.21% 2015 2016 2017 2018 YTD 2019 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($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 -- $0 3Q18 4Q18 1Q19 2Q19 3Q19 NIM (%) 4.71% 4.50% 4.61% 4.39% 4.28% Impact of accretion and nonaccrual i
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 2Q19 3Q19 (preliminary) $4,290 $4,345 C&D loans subject to 100% risk- 92% 89% $3,668 $3,787 based capital threshol
Slide 8: Stable core deposit franchise
Stable core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) $4,922 30.0% $4,843 24.7% $30 $25 23.3% 22.8% 23.0% 25.0% 22.4% $4,303 $4,129 $4,172 20.0% $61 1.14% 1.14% 1.11% $103 1.03% $112 15.0% $4,813 $4,897 0.80% $4,242 10.0% $4,017 $
Slide 9: Mortgage operations overview
Mortgage operations overview Highlights Quarterly mortgage production Total Mortgage adjusted pre-tax Consumer Direct contribution1 of $5.4 million for 3Q 2019; adjusted for $0.1 million of restructuring Retail 3Q18 2Q19 3Q19 related expenses Third party originated (TPO) Correspondent Mortgage b
Slide 10: Managing operating leverage
Managing operating leverage Managing operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 3Q 2019 core efficiency ratio1 of 64.5% Banking segment Consolidated Integration of Atlantic Capital branch Mortgage segment acquisition completed and in line with expectations 97
Slide 11: Asset quality remains stable
Asset quality remains stable Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 0.62% 0.61% 0.59% $79 0.57% $74 0.51% $66 $69 $69 $67 0.46% 0.47% $60 $61 $63 $63 0.41% 0.43% 0.30% 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 3Q18 2Q19 3Q191 $18.03 $17.18 Shareholder’s equity / 12.8% 12.1% 12.2% Assets $11.56 $11.58 TCE / TA2 10.2% 9.2% 9.4% 3Q16 4Q16 2Q19 3Q19 Common equity tier 1 / 11.5% 10.4% 10.8% Simple capital structure Risk-we
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: GAAP reconciliation: 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: GAAP reconciliation: Core efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 15
Slide 17: GAAP reconciliation: Segment core efficiency ratios
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 16
Slide 18: GAAP reconciliation: Mortgage contribution, adjusted
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 17
Slide 19: GAAP reconciliation: 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: GAAP reconciliation: 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: GAAP reconciliation: Pro forma return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Pro forma return on average assets and equity, adjusted 20