Fb Financial Corporation · NYSE:FBK
Fb Financial — Conference Presentation (November 2023)
32 slides from Fb Financial's conference presentation, Nov 1, 2023
Slide 1: Fourth Quarter 2023 Investor Presentation
November 2, 2023 Fourth Quarter 2023 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 may include, without li
Slide 4: Snapshot of FB Financial today
3 Snapshot of FB Financial today 1 Source: S&P Global. Market data is as of June 30, 2023 and is presented on a pro forma basis for announced acquisitions since June 30, 2023. 2 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and non-GAAP reconciliations herein. 3 3Q23 calculati
Slide 5: Strategic Drivers Poised for Solid Performance
4 Strategic Drivers Poised for Solid Performance Proven Opportunistic Acquirer with Scalable Platforms and Technology Highly Motivated Senior Management Team Great Place to Work Organic Growth Focused Empowered Teams Across Attractive Metropolitan and Community Markets
Slide 6: Recent Corporate History
5 2018 2019 2020 2021 2022 YTD 2023 Recent Corporate History 1 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. 2 Concentration ratio for FirstBank. 3 3Q23 calculation is preliminary and subject to change. Note: Financial data presented on a c
Slide 7: Well Positioned in High Growth Markets
6 Well Positioned in High Growth Markets 1 Source: S&P Global. Market data is as of June 30, 2023 and is presented on a pro forma basis for announced acquisitions since June 30, 2023. 2 Source: S&P Global. FBK Footprint is based on weighted average demographics of MSAs and counties not located in MS
Slide 8: Driving shareholder value
7 Driving shareholder value ¹ Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. 2 3Q23 calculation is preliminary and subject to change. Earnings per Share $2.65 $1.67 $3.97 $2.64 $1.94 $2.83 $3.73 $3.78 $2.91 $2.24 2019 2020 2021 2022 YTD 2023
Slide 9: Significant projected reduction in run-rate expenses
8 Significant projected reduction in run-rate expenses Highlights Consolidated 3Q 2023 efficiency ratio of 76.2%; core efficiency ratio¹ of 63.1% Banking segment recognized $4.8 million in early retirement and severance costs in 3Q 2023; additional $1.7 million expected in 4Q 2023 Reduction of $2
Slide 10: Stabilizing net interest margin
9 Stabilizing net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment. $5,000 $7,000 $9,000 $11,000 $13,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 3Q22 4Q22 1Q23 2Q23 3Q23 Av g. in te re st e ar ni ng as se ts ($ m m ) Yi el ds a nd C os ts (% ) Average interest earning as
Slide 11: Well-capitalized for future opportunities
10 Well-capitalized for future opportunities Tangible Book Value per Share1 Simple Capital Structure Common Equity Tier 1 Capital 84% Trust Preferred 2% Subordinated Notes 6% Tier 2 ACL 8% Total regulatory capital: $1,608 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 $22.90 $23.93 3Q16 2016 20
Slide 12: Balanced loan portfolio
11 Residential Development 45% Commercial 28% Consumer 13% Multifamily 14%Office 19% Retail 25% Hotel 16% Warehouse/Industrial 17% Land-Mobile Home Park 6% Self Storage 5% Healthcare Facility 3% Other 9% 1-4 family 17% 1-4 family HELOC 6% Multifamily 5% C&D 16% CRE 21% C&I 31% Other 4% Balanced loan
Slide 13: Office exposure
12 Nashville 57% Memphis 10% Knoxville 6% Huntsville 5% Birmingham 5% Chattanooga 3% Other 4% Communities 10% Class A 23% Class B 41% Class C 11% Under $2 Million 25% Office exposure (non-owner occupied CRE & C&D) Office loans represent only 3.9% of our total HFI loan portfolio as of the end of 3Q
Slide 14: Asset quality remains solid
13 0.40% 0.41% 0.38% 0.36% 0.46% 0.22% 0.20% 0.16% 0.16% 0.18% 0.07% 0.07% 0.07% 0.07%0.62% 0.68% 0.61% 0.59% 0.71% 3Q22 4Q22 1Q23 2Q23 3Q23 Commercial loans HFS Optional GNMA repurchase Other NPAs 1.48% 1.44% 1.48% 1.51% 1.57% 3Q22 4Q22 1Q23 2Q23 3Q23 Asset quality remains solid Nonperforming asset
Slide 15: Allowance for credit losses overview
14 1.48% 0.69% 1.17% 0.70% 2.47% 1.49% 1.64% 1.51% 3.56% 1.51% 0.67% 1.22% 0.73% 2.44% 1.32% 1.77% 1.81% 3.86% 1.57% 1.05% 1.19% 0.87% 2.47% 1.37% 1.65% 1.77% 3.95% Gross Loans HFI Commercial & Industrial Non-Owner Occ CRE Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC C
Slide 16: Valuable deposit base
15 Noninterest- bearing checking 22% Interest-bearing checking 24% Money market 35% Savings 4% Time 15% 46% Checking accounts Valuable deposit base Cost of deposits 3Q23 Deposit composition 29.6% 24.7% 22.3% 22.1% 22.2% 0.52% 1.20% 1.94% 2.38% 2.58% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 3Q22
Slide 17: Strong liquidity position
16 $889.7 $1,310.2 $1,609.2 $1,444.5 $1,345.8 7.4% 10.4% 12.5% 11.4% 11.0% $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 3Q22 4Q22 1Q23 2Q23 3Q23 On-balance sheet liqudity On-balance sheet liquidity / tangible assets Strong liquidity position On-balance sheet liquidity ($mm) Liquidity / Uninsured an
Slide 18: Mortgage performance in 3Q 2023
17 Mortgage performance in 3Q 2023 Highlights Mortgage segment was slightly above break even in 3Q 2023 Interest rate lock commitment volume decreased 7.4% in 3Q 2023 compared to 2Q 2023 Decay and interest rate volatility led to MSR fair value losses, net of hedging of $3.72 million in 3Q Mo
Slide 19: Appendix
18 Appendix
Slide 20: Adjusted net income and diluted earnings per share
19 GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 21: Adjusted pre-tax pre-provision earnings; adjusted tangible net income
20 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision earnings Adjusted tangible net income
Slide 22: Adjusted earnings and diluted earnings per share
21 GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share
Slide 23: GAAP Reconciliations: Adjusted CET1 and Total Risk-Based Capital Ratios
22 GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Risk-Based Capital Ratios
Slide 24: Core efficiency ratio (tax-equivalent basis)
23 GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 25: Banking segment core efficiency ratios (tax-equivalent basis)
24 GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis)
Slide 26: Mortgage segment core efficiency and core revenue ratios
25 GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency (tax-equivalent basis) and core revenue ratios
Slide 27: Tangible assets, common equity and related measures
26 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 28: Tangible assets, common equity and related measures
27 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 29: Adjusted return on average tangible common equity and related measures
28 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures
Slide 30: Adjusted return on average asset, common equity and related measures
29 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures
Slide 31: Adjusted return on average tangible common equity and related measures
30 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures
Slide 32: Adjusted return on average asset, common equity and related measures
31 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures
FB Financial — Conference Presentation (November 2023) on 6ix