Fb Financial Corporation · NYSE:FBK
Fb Financial — Investor Presentation (June 2018)
27 slides from Fb Financial's investor presentation, Jun 4, 2018
Slide 1: Second Quarter 2018 Investor Presentation
Second Quarter 2018 Investor Presentation June 4, 2018
Slide 2: Forward-looking statements
Certain statements contained in this investor 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, without limitation, sta
Slide 3: Use of non-GAAP financial measures
Use of non-GAAP financial measures This investor 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. The Company’s management uses these non-GAAP financi
Slide 4: Strategic drivers
Strategic drivers Great Place to Work Strategic M&A Experienced Senior Management Team Elite Financial Performer Scalable Banking and Mortgage Platforms Local Decision Makers in Attractive Metro and Community Markets 3
Slide 5: Over 110 years of history in Tennessee
1984 1996 1999 2001 2003 2004 2006 2007 2008 2010 2012 2014 2015 2016 2017 2018 Over 110 years of history in Tennessee 2003: Acquired The Bank of Murfreesboro in Nashville MSA 2007: Acquired branches from AmSouth Bank in Tennessee community markets 1984 1988 1996 1999 2001 2003 2004 2006 2012 2013 2
Slide 6: Snapshot of FB Financial today
Snapshot of FB Financial today Financial highlights Company overview Second largest Nashville-headquartered bank and third largest Tennessee-based bankOriginally chartered in 1906, one of the longest continually operated banks in Tennessee Completed the largest bank IPO in Tennessee history in Septe
Slide 7: A leading community bank headquartered in Tennessee
A leading community bank headquartered in Tennessee Top 10 banks in Tennessee¹ Top 10 banks under $25bn assets in Tennessee¹ Source: SNL Financial; Note: Deposit data as of June 30, 2017; Pro forma for completed acquisitions since June 30, 2017 and pending acquisitions announced as of April 30, 2018
Slide 8: Attractive footprint with balance between stable community and high growth metropolitan markets
Attractive footprint with balance between stable community markets and high growth metropolitan markets 1 Source: SNL Financial. Statistics are based upon county data. Market data is as of June 30, 2017 and is presented on a pro forma basis for completed acquisitions since June 30, 2017 and pending
Slide 9: Well positioned in attractive metropolitan markets
Well positioned in attractive metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo Nashville rankings: “The new 'it' City” – The New York Times1
Slide 10: 1Q 2018 highlights
Three months endedMarch 31, 2018 Non-GAAP adjusted results1 Reported GAAP results Diluted earnings per share $0.66 $0.63 Net income ($mm) $20.6 $19.8 Net interest margin 4.64% 4.64% Return on average assets 1.79% 1.71% Return on average equity 14.0% 13.4% Return on average tangible common equity 18.
Slide 11: Consistently delivering balanced profitability and growth
0.64% 0.84% 0.91% 1.21% 1.46% 1.52% 1.79% 2012 2013 2014 2015 2016 2017 1Q18 4.17% 2.12% 1.21% 0.68% 0.54% 0.32% 0.30% 2012 2013 2014 2015 2016 2017 1Q18 3.52% 3.75% 3.93% 3.97% 4.10% 4.46% 4.64% 2012 2013 2014 2015 2016 2017 1Q18 Consistently delivering balanced profitability and growth Drivers of
Slide 12: Consistent loan growth and balanced portfolio
Total Loans HFI: $1,240 million 1-4 family19% 1-4 family HELOC13% Multifamily3% C&D8% CRE14% C&I38% Other5% 1-4 family15% 1-4 family HELOC6% Multifamily2% C&D14% CRE17% C&I40% Other6% Consistent loan growth and balanced portfolio Total loan growth1($mm) and commercial real estate concentration Loan
Slide 13: Peer-leading net interest margin remains strong
Peer-leading net interest margin remains strong Historical yield and costs 1Includes tax-equivalent adjustment. 2Data for nonaccrual interest collections not available prior to 2016. NM = not meaningful NIM (%) 3.52% 3.75% 3.93% 3.97% 4.10% 4.46% 4.64% Impact of accretion and nonaccrual interest col
Slide 14: Stable, low cost core deposit franchise
Noninterest-bearing 25% Stable, low cost core deposit franchise $340 $357 $438 $627 $697 $888 $931 2012 2013 2014 2015 2016 2017 1Q18 $1,821 $1,804 $1,924 $2,438 $2,672 $3,664 $3,766 2012 2013 2014 2015 2016 2017 1Q18 Total deposits ($mm) 1Includes mortgage servicing-related escrow deposits of$45.4
Slide 15: Mortgage operations overview
94.5 $ 103.7 $ 23.5 $ 11.2 $ 3.5 $ (0.1) $ 12.1 $ 13.2 $ 4.8 $ -- $ (3.5) $ (1.7) $117.8 $116.9 $26.5 Mortgage operations overview Total mortgage pre-tax contribution (including retail footprint) of $2.1 million, compared to $3.0 million in 1Q 2017 We expect total mortgage pre-tax contribution (incl
Slide 16: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated 1Q 2018 core efficiency ratio of 65.5% driven by Banking Segment core efficiency ratio of 55.2%, meeting our target level of sub-60% Bank’s investment in IT systems, including a new core system in 2016, created a scalable platform des
Slide 17: Asset quality continues to improve
Asset quality continues to improve 0.14% 0.35% 0.04% 0.10% 0.07% (0.13%) (0.01%) 2012 2013 2014 2015 2016 2017 1Q18 3.11% 2.41% 2.05% 1.50% 1.18% 0.76% 0.75% 2012 2013 2014 2015 2016 2017 1Q18 $65 $46 $70 $55 $55 $53 $0 $0 $0 $21 $16 $89 $86 2012 2013 2014 2015 2016 2017 1Q18 Classified Purchased cr
Slide 18: Strong capital position for future growth
Strong capital position for future growth 1Total regulatory risk based capital, FB Financial Corporation. 2 Non-GAAP financial measure. See “Use of non-GAAP financial measures,” and “Reconciliation of non-GAAP financial measures” in the Appendix hereto. Capital position 12/31/16 12/31/17 3/31/18 Sha
Slide 19: M&A Strategy
M&A Strategy Tuscaloosa Drive time from Nashville 3:30 / Huntsville 2:10Birmingham from Nashville 2:40 / Huntsville 1:30Atlanta 3:30 / Chattanooga 1:40Greenville 5:10 / Chattanooga 3:30 / Knoxville 2:40Asheville 4:20 / Knoxville 1:50Blacksburg 5:50 / Knoxville 3:20Roanoke 6:10 / Knoxville 3:40Bowlin
Slide 20: Appendix
Appendix (FB) FirstBank
Slide 21: Reconciliation measures
Reconciliation of non-GAAP financial measures Pro forma net income, adjusted (Dollars in thousands) 1Q 2018 2017 2016 2015 2014 2013 2012 Pre-tax net income $ 25,236 $ 73,485 $ 62,324 $ 50,824 $ 34,731 $ 28,797 $ 21,974 Plus merger and conversion costs 1,193 19,034 3,268 3,543 - - - Less signficant
Slide 22: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue. (Dollars in thousands)1Q 2018201720162015201420132012Core efficiency ratio (tax-equivalent basis)Total noninterest
Slide 23: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio (Dollars in thousands) 1Q 2018 2017 2016 2015 2014 2013 Banking segment core efficiency ratio (tax equivalent) Core consolidated noninterest expense $ 54,958 $ 202,399 $ 178,183 $ 134,755 $ 99,163 $ 8
Slide 24: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio 2018 2017 (Dollars in thousands) First Quarter First Quarter Banking segment core efficiency ratio (tax-equivalent basis) Core consolidated noninterest expense $ 54,958 $ 45,295 Less Mortgage segment
Slide 25: Tangible book value per common share and tangible common equity to tangible assets
Tangible book value per common share and tangible common equity to tangible assets Reconciliation of non-GAAP financial measures (cont’d) 20182017(Dollars in thousands)First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Tangible Assets Total assets4,7
Slide 26: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Return on average tangible common equity Return on average tangible common equity, adjusted 2018 (Dollars in thousands) First Quarter Total average shareholders' equity $ 599,198 Less average goodwill(1) 137,190 Less intangibles, net(1) 14,465 A
Slide 27: Pro forma return on average assets and equity, adjusted
Reconciliation of non-GAAP financial measures (cont’d) Pro forma return on average assets and equity, adjusted (Dollars in thousands)1Q 2018201720162015201420132012 Net income19,754$ 52,398$ 40,591$ 47,856$ 32,462$ 26,903$ 20,517$ Average assets4,678,494 3,811,158 3,001,275 2,577,895 2,311,297 2,205