Fb Financial Corporation · NYSE:FBK
Fb Financial — Q1 2018 Earnings Presentation
20 slides from Fb Financial's earnings presentation, Apr 24, 2018
Slide 1: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation April 24, 2018
Slide 2: Forward looking statements
Forward looking statements Certain statements contained in this 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, witho
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: 1Q 2018 highlights
1Q 2018 highlights Key highlights Financial results Adjusted diluted EPS of $0.66, resulting in adjusted Three months ended ROAA of 1.79% March 31, 2018 Non-GAAP Loans (HFI) grew to $3.24 billion, a 70.7% increase adjusted Reported from 1Q 2017; grew 10.0% annualized from 4Q 2017 results1 GAAP r
Slide 5: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Pro forma return on average assets, adjusted1 1.79% 1.48% 1.50% 1.26% 0.97% 2014 2015 2016 2017 YTD 2018 Drivers of profitability Loans / deposits Net interest margin Noninterest income ($mn) NPLs (HFI) / loans (HFI) (%) $38 $37 Loans excludi
Slide 6: Peer-leading net interest margin remains strong
Peer-leading net interest margin remains strong Historical yield and costs 6.0% $4,500 Avg. interest earning assets $4,000 5.0% Yields and Costs (%) $3,500 4.0% $3,000 ($mm) $2,500 3.0% $2,000 2.0% $1,500 $1,000 1.0% $500 -- $0 1Q17 2Q17 3Q17 4Q17 1Q18 NIM (%) 4.28% 4.19% 4.61% 4.63% 4.64% Impact of
Slide 7: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentrations2 4Q 2017 1Q 2018 (preliminary) C&D loans subject to 100% risk- 96% 98% $3,115 $3,167 $3,245 based capital threshold
Slide 8: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($million) Cost of deposits Noninterest bearing (%) Cost of total deposits (%) 30.0% 26.2% 25.8% 24.9% 24.2% 24.7% $3,719 $3,766 25.0% $3,664 $104 $81 $86 20.0% 15.0% 0.50% 0.55% $2,701 $2,728 0.46% $3,615 $3,578 $3,685 10.0% 0.32% 0.34% $2,700
Slide 9: Mortgage banking continues to execute across channels
Mortgage banking continues to execute across channels Highlights IRLC volume by line of business (%) 1Q 2018 Mortgage Segment pre-tax Consumer Direct 1Q 2017 4Q 2017 1Q 2018 contribution of $1.1 million. Total mortgage pre-tax contribution (including retail Correspondent footprint) of $2.1 million
Slide 10: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Improving operating efficiency Core efficiency ratio (tax-equivalent basis)1 Consolidated 1Q 2018 core efficiency ratio of 65.5% driven by Banking Banking Segment Segment core efficiency ratio of 55.2% Consolidated Mortgage Segment 1Q 2018 ref
Slide 11: Asset quality remains strong
Asset quality remains strong Nonperforming ratios Classified & PCI loans ($million) 1 NPLs (HFI) / loans (HFI) NPAs / assets Classified Purchased credit impaired 1.52% $92 $89 $86 0.88% $60 $55 $53 0.56% 0.58% 0.59% $38 $38 0.49% 0.50% 0.29% 0.32% 0.30% $16 $16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q1
Slide 12: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share 1Q 2017 4Q 2017 1Q 20181 $14.56 $14.99 Shareholder’s equity / 10.8% 12.6% 12.9% $11.56 $11.58 Assets TCE / TA2 9.3% 9.7% 10.1% 3Q16 4Q16 4Q17 1Q18 Common equity tier 1 / 11.7% 10.7% 11.0% Simple capital structur
Slide 13: Appendix
Appendix FB) FirstBank
Slide 14: GAAP reconciliation: Net income, adjusted
GAAP reconciliation and use of non-GAAP financial measures Net income, adjusted 2018 2017 Net income, adjusted (a) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Pre-tax net income $ 25,236 $ 27,504 $ 12,990 $ 17,813 $ 15,178 Plus merger and conversion costs 1,193 2,069 15,7
Slide 15: GAAP reconciliation: Pro forma net income, adjusted
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income, adjusted (Dollars in thousands) Pro forma net income, adjusted YTD 2018 2017 2016 2015 2014 Pre-tax net income $ 25,236 $ 73,485 $ 62,324 $ 50,824 $ 34,731 Plus merger and conversion costs 1,193 19,034 3,268 3,543 - Les
Slide 16: GAAP reconciliation: Tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio (Dollars in thousands) 2018 2017 Core efficiency ratio (tax-equivalent basis) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Total noninterest expense $ 56,151 $ 57,540 $ 69,224 $ 49,1
Slide 17: GAAP reconciliation: Segment tax-equivalent efficiency ratio
GAAP reconciliation and use of non-GAAP financial measures Segment tax-equivalent efficiency ratio (Dollars in thousands) 2018 2017 Banking segment core efficiency ratio (tax equivalent) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Core consolidated noninterest expense $ 5
Slide 18: GAAP reconciliation: Tangible assets and equity
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity (Dollars in thousands) 2018 2017 Tangible assets and equity First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Tangible Assets Total assets $ 4,725,416 $ 4,727,713 $ 4,581,943 $ 3,346,570 $ 3,1
Slide 19: GAAP reconciliation: Return on average tangible equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible equity, adjusted (Dollars in thousands) 2018 2017 Return on average tangible equity, adjusted First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Pre-tax net income $ 25,236 $ 27,504 $ 12,990 $
Slide 20: GAAP reconciliation: Return on average assets and equity, adjusted
GAAP reconciliation and use of non-GAAP financial measures Return on average assets and equity, adjusted (Dollars in thousands) Pro forma return on average assets and equity, adjusted YTD 2018 2017 2016 2015 2014 Pro forma Net income $ 19,754 $ 52,398 $ 39,422 $ 32,995 $ 22,356 Average assets 4,678,