Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2021 Earnings Presentation
29 slides from Fb Financial's earnings presentation, Oct 19, 2021
Slide 1: 2021 Third Quarter Earnings Presentation
2021 Third Quarter Earnings Presentation October 19, 2021
Slide 2: Forward–Looking Statements
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, statem
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 2021 highlights
3Q 2021 highlights Key highlights Financial results Excluding PPP loans, loans grew 8.0% annualized in 3Q 2021, or 3Q 2021 $144 million. YTD 2021 annualized growth, excluding PPP loans, of 8.1%, or $415 million Diluted earnings per share $0.94 Adjusted diluted earnings per share1 $0.89 Nonintere
Slide 5: Core earnings power
Core earnings power Adjusted return on average assets¹ 1.69% 1.68% 1.55% 1.57% 1.52% 2017 2018 2019 2020 YTD21 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) Core efficiency ratio1 Loans excluding HFS Loans HFS 4.66% $302 101% 4.46% 95% 95% 15% 4.34% 68.1% 7% 6%
Slide 6: Stable net interest margin
Stable net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 5.0% $12,000 $11,000 Avg. interest earning 4.0% Yields and Costs (%) $10,000 assets ($mm) 3.0% $9,000 2.0% $8,000 $7,000 1.0% $6,000 -- $5,000 3Q20 4Q20 1Q21 2Q21 3Q21 NIM1 3.28%
Slide 7: Mortgage volumes improved in 3Q 2021
Mortgage volumes improved in 3Q 2021 Highlights Quarterly mortgage production Total mortgage pre-tax contribution1 of $8.9 million for the third Consumer Direct 3Q20 2Q21 3Q21 quarter Retail As mortgage rates and volumes have normalized, margins have stabilized The housing market continues to
Slide 8: Managing expenses and investing to support growth
Managing expenses and investing to support growth Highlights Core efficiency ratio (tax-equivalent basis)¹ Consolidated 3Q 2021 core efficiency ratio¹ Banking segment of 64.7% Consolidated Mortgage segment 97.9% Change in segment definitions 1Q 2021 as mortgage retail footprint no longer include
Slide 9: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 3Q201 2Q211 3Q211,2 $23.90 Shareholder’s equity/Assets 11.3% 11.5% 11.9% $21.73 $18.55 $17.02 TCE/TA3 9.2% 9.5% 9.9% $14.56 $11.56 $11.58 Common equity 11.8% 12.4% 12.3% tier 1/Risk-weighted assets 3Q16 4Q16 4Q
Slide 10: Valuable core deposit base
Valuable core deposit base Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 35.0% $10,257 $10,204 $10,072 30.0% 25.9% $9,458 $38 $41 25.2% 24.0% 23.7% 24.4% $9,094 $28 25.0% $62 $92 20.0% 15.0% $10,219 $10,
Slide 11: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry Other Balance Ex. PPP PPP 4% C&I CRE-OO Total % of Total Loans 1-4 family Real Estate Rental and Leasing $ 295.2 $ 154.4 $ 449.6 20.6% 0.2 1 16% C&I Finance and Insurance 239.5 11.2 250.7 11.5% 0.5 30% Retail Trade 114.5 124.7 239.2 11.
Slide 12: Pandemic-related credit update
Pandemic-related credit update Total deferrals across the entire loan portfolio are down to Industry exposures / gross loans (HFI) $18 million. $13 million are paying interest, while $5 million 8.8% are full deferrals of principal and interest. Credit quality remains satisfactory overall 4.6% 4.
Slide 13: Asset quality remains solid
Asset quality remains solid Nonperforming ratios Classified loans / loans HFI 1 NPLs (HFI)/loans (HFI) NPAs/assets 2.22% 0.91% 0.94% 2.09% 0.83% 1.87% 1.80% 0.75% 0.77% 1.76% 0.66% 0.61% 0.64% 0.59% 0.50% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 LLR/loans HFI (excluding PPP loans)2 Net char
Slide 14: Allowance for credit losses overview
Allowance for credit losses overview Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: FQE, FYE 12/31, 4Q 2021 1Q 2022 2021 2022 2023 2024 2025 GDP (bcw$) $ 19,864.7 $ 19,904.1 $ 19,505.0 $ 19,971.9 $ 20,432.
Slide 15: Appendix
FB} pee Bank Appendix
Slide 16: Adjusted net income and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 15
Slide 17: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 16
Slide 18: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share* 17
Slide 19: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 18
Slide 20: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 19
Slide 21: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 20
Slide 22: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 21
Slide 23: Adjusted mortgage contribution
GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution 22
Slide 24: Tangible assets and equity and tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity and tangible book value per share 23
Slide 25: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 24
Slide 26: Return on average tangible common equity
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 25
Slide 27: Adjusted return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity 26
Slide 28: Adjusted return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity 27
Slide 29: Adjusted Allowance for Credit Losses to Loans Held for Investment
GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment 28