Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2023 Earnings Presentation
27 slides from Fb Financial's earnings presentation, Oct 16, 2023
Slide 1: 2023 Third Quarter Earnings Presentation
October 17, 2023 2023 Third Quarter Earnings 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: 3Q 2023 Highlights
3 3Q 2023 Highlights Key highlights NIM increased to 3.42% from 3.40% in the previous quarter; Total loans held for investment (HFI) yield increased to 6.54% in 3Q 2023 from 6.34% in 2Q 2023; Total deposit cost increased to 2.58% in 3Q 2023 from 2.38% in 2Q 2023 Reduced core operating expenses i
Slide 5: Driving shareholder value
4 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 6: Significant projected reduction in run-rate expenses
5 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 7: Stabilizing net interest margin
6 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 8: Well-capitalized for future opportunities
7 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 201
Slide 9: Balanced loan portfolio
8 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 10: Office exposure and geographic exposure
9 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 3Q2
Slide 11: Asset quality remains solid
10 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 12: Allowance for credit losses overview
11 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 13: Valuable deposit base
12 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 14: Strong liquidity position
13 $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 15: Mortgage performance in 3Q 2023
14 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 16: Appendix
15 Appendix
Slide 17: Adjusted net income and diluted earnings per share
16 GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
Slide 18: Adjusted pre-tax pre-provision earnings; adjusted tangible net income
17 GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision earnings Adjusted tangible net income
Slide 19: Adjusted earnings and diluted earnings per share
18 GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share
Slide 20: Adjusted CET1 and Total Risk-Based Capital Ratios
19 GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Risk-Based Capital Ratios
Slide 21: Core efficiency ratio (tax-equivalent basis)
20 GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
Slide 22: Banking segment core efficiency ratios (tax-equivalent basis)
21 GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis)
Slide 23: Mortgage segment core efficiency and core revenue ratios
22 GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency (tax-equivalent basis) and core revenue ratios
Slide 24: Tangible assets, common equity and related measures
23 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 25: Tangible assets, common equity and related measures
24 GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures
Slide 26: Adjusted return on average tangible common equity and related measures
25 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures
Slide 27: Adjusted return on average asset, common equity and related measures
26 GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures