Fb Financial Corporation · NYSE:FBK
Fb Financial — Q4 2021 Earnings Presentation
31 slides from Fb Financial's earnings presentation, Feb 15, 2022
Slide 1: First Quarter 2022 Investor Presentation
February 16, 2022 First Quarter 2022 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 December 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 she
Slide 5: Strategic drivers
4 Strategic drivers Elite Financial 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 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, 2021 and is presented on a pro forma basis for announced acquisitions since June 30, 2021. 2 Source: SNL Financial. FBK Footprint is based on weighted average demographics of MSAs and counties not located
Slide 8: Core earnings power
7 68.1% 65.8% 65.4% 59.2% 65.8% 2017 2018 2019 2020 2021 4.46% 4.66% 4.34% 3.46% 3.19% 2017 2018 2019 2020 2021 Core earnings power 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 financi
Slide 9: Stable net interest margin
8 Stable 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. $5,000 $6,000 $7,0
Slide 10: Mortgage operations overview
9 3Q21 Mortgage operations overview Highlights Rising rates are weighing on refinance volumes, which is expected to continue throughout 2022. Total mortgage pre-tax contribution1 of $0.7 million for the fourth quarter Mortgage banking income of $31.4 million in 4Q 2021 compared to $45.4 million
Slide 11: Managing expenses and investing to support growth
10 Managing expenses and investing to support growth Highlights Balancing managing expenses in a zero-rate environment and crossing the $10 billion asset threshold while making prudent investments in people and technology Banking segment improvement reflects relatively flat expense base paired wit
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 85% Trust Preferred 2% Subordinated Notes 7% Tier 2 ACL 6% Total regulatory capital: $1,4292 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 3Q16 4Q16 4Q17 4Q18 4Q19
Slide 13: Valuable core deposit base
12 Noninterest- bearing checking 25% Interest-bearing checking 32% Money market 28% Savings 4% Time 11% 57% Checking accounts Valuable core deposit base ¹ Includes mortgage servicing-related deposits of $147.9 million, $170.9 million, $166.1 million, $190.6 million and $127.6 million for the quarter
Slide 14: Balanced loan portfolio
13 Retail 19% Office 18% Hotel 17% Warehouse / Industrial 12% Land-Manufacture Home Community 5% Self Storage 4% Healthcare Facility 3% Other 22% 1-4 Family to be sold 39% Commercial Land 30% 1-4 Consumer Construction 9% Multifamily 5% Retail 4% Warehouse 3% Office 2% Other 8% 1-4 family 17% 1-4 fam
Slide 15: Asset quality remains solid
14 0.91% 0.94% 0.83% 0.59% 0.62% 0.75% 0.77% 0.66% 0.50% 0.50% 4Q20 1Q21 2Q21 3Q21 4Q21 NPLs (HFI)/loans (HFI) NPAs/assets 2.48% 2.29% 2.03% 1.91% 1.65% 4Q20 1Q21 2Q21 3Q21 4Q21 0.58% 0.05% 0.02% 0.13% 0.12% 4Q20 1Q21 2Q21 3Q21 4Q21 Asset quality remains solid Nonperforming ratios Classified loans /
Slide 16: Allowance for credit losses overview
15 Allowance for credit losses overview ACL / Loans HFI by Category Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: 1Source: Moody’s “November 2021 U.S. Macroeconomic Outlook Baseline and Alternative Scenar
Slide 17: Appendix
FB eeBank Appendix
Slide 18: Adjusted net income and diluted earnings per share
17 GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 19: Adjusted pre-tax, pre-provision earnings
18 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 20: Adjusted earnings and diluted earnings per share
19 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share*
Slide 21: Adjusted pre-tax, pre-provision earnings
20 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
Slide 22: Core efficiency ratio (tax-equivalent basis)
21 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 23: Core efficiency ratio (tax-equivalent basis)
22 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 24: Segment core efficiency ratios (tax-equivalent basis)
23 GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis)
Slide 25: Adjusted mortgage contribution
24 GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution
Slide 26: Tangible assets and equity and tangible book value per share
25 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity and tangible book value per share
Slide 27: Return on average tangible common equity and adjusted PPNR ROATCE
26 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity
Slide 28: Return on average tangible common equity and adjusted PPNR ROATCE
27 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity
Slide 29: Adjusted return on average assets and equity
28 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity
Slide 30: Adjusted return on average assets and equity
29 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity
Slide 31: Adjusted Allowance for Credit Losses to Loans Held for Investment
30 GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment