Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2017 Earnings Presentation
21 slides from Fb Financial's earnings presentation, Oct 24, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
Third Quarter 2017 Earnings Presentation October 24, 2017
Slide 2: Forward looking statements
This presentation contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements throu
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 limitation
Slide 4: 3Q 2017 Highlights
Three months endedSeptember 30, 2017 Non-GAAP Core results1 Reported GAAP results Diluted earnings per share $0.60 $0.27 Net income ($ millions) $18.5 $8.4 Return on average assets 1.76% 0.80% Return on average equity 13.4% 6.1% Return on average tangible common equity 17.0% 7.7% Efficiency ratio 64
Slide 5: Clayton Banks merger update
Clayton Banks merger update Closed acquisition effective July 31, 2017, adding $1.1 billion in loans and $855 million in customer depositsStrong cultural synergies have continued to grow, exceeding initial expectationsCommunity investment and FirstBank Knoxville branding initiative underway - $10 mi
Slide 6: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Drivers of profitability Core pro forma return on average assets1 ($mn) Net interest margin Noninterest income ($mm) Loans / deposits 1 Our pro forma net income includes a pro forma provision for federal income taxes using a combined effectiv
Slide 7: Net interest margin remains strong
Net interest margin remains strong Historical yield and costs 1 Includes tax-equivalent adjustment NIM (%) 4.05% 3.99% 4.28% 4.19% 4.61% NIM, ex-accretion and nonaccrual interest collections (%) 3.88% 3.90% 4.04% 4.03% 4.33% Deposit cost (%) 0.30% 0.29% 0.32% 0.34% 0.46% Loan (HFI) yield 3Q 2016 2Q
Slide 8: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($mn) and commercial real estate concentration Loan portfolio breakdown1 4Q 2012 3Q 2017 Total HFI loans: $3,115mn 1 Exclude HFS loans, C&I includes owner-occupied CRE2 Risk-based capital at bank level as defined in Call Report. 3Q 201
Slide 9: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($mn) 1 Includes mortgage servicing-related escrow deposits of $64.3 million, $46.7 million, $43.7 million, $49.9 million and $56.8 million for the quarters ended September 30, 2016, December 31, 2016, March 31, 2017, June 30, 2017 and September
Slide 10: Mortgage Banking continues to execute
$25.5 $23.9 $29.6 $7.8 $5.4 ($0.8) $3.7 $2.7 $3.5 $ -- ($1.8) ($0.9) $36.9 $30.2 $31.3 Mortgage Banking continues to execute Rebalanced mix through better channel distribution as Correspondent growth offsets refinancing decline primarily in Consumer DirectMortgage Banking income $31.3 million, up 3.
Slide 11: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated 3Q 2017 core efficiency ratio of 64.4% driven by Banking Segment core efficiency ratio of 56.2%, meeting our target level of sub-60% Further realization of cost savings from Clayton Banks transaction will help efficiency ratio, expect
Slide 12: Asset quality remains strong
Asset quality remains strong Classified & PCI loans ($mn) Net charge-offs / average loans Nonperforming ratios LLR / loans 1 Includes $3.6 million of acquired excess land and facilities at September 30, 2017 and $13.6 million of GNMA rebooked loans – see page 11 of the Quarterly Financial Supplement
Slide 13: Strong capital position for future growth
Strong capital position for future growth 1 Total regulatory capital. 3Q 2017 calculation is preliminary and subject to change.2 See “Use of non-GAAP financial measures” and the Appendix hereto. Capital position Total capital composition 3Q 2016 2Q 2017 3Q 20171 Shareholder’s equity / Assets 10.3% 1
Slide 14: Appendix
Appendix (FB) FirstBank
Slide 15: GAAP reconciliation and use: Pro forma core net income
GAAP reconciliation and use of non-GAAP financial measures Pro forma core net income
Slide 16: GAAP reconciliation and use: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue
Slide 17: GAAP reconciliation and use: Segment tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Segment tax-equivalent efficiency ratio
Slide 18: GAAP reconciliation and use: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity Return on average tangible equity
Slide 19: GAAP reconciliation and use: Pro forma return on tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Pro forma return on average tangible common equity Pro forma core return on average tangible equity Pro forma core return on average assets and equity
Slide 20: GAAP reconciliation and use: Pro forma core return on assets and equity
GAAP reconciliation and use of non-GAAP financial measures Pro forma core return on average assets and equity Pro forma core total revenue
Slide 21: GAAP reconciliation and use: Business mix by core, pre-tax contribution
GAAP reconciliation and use of non-GAAP financial measures Business mix by core, pre-tax contribution