Fb Financial Corporation · NYSE:FBK
Fb Financial — Investor Presentation (November 2017)
27 slides from Fb Financial's investor presentation, Nov 15, 2017
Slide 1: Fourth Quarter 2017 Investor Presentation
Fourth Quarter 2017 Investor Presentation
Slide 2: Forward-looking statements
This investor 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 stateme
Slide 3: Terminology, contents and market data
TerminologyIn this investor presentation, references to “we,” “our,” “us,” “FB Financial” or “the Company” refer to FB Financial Corporation, a Tennessee corporation, and our wholly-owned bank subsidiary, FirstBank, a Tennessee state chartered bank, unless otherwise indicated or the context otherwis
Slide 4: Use of non-GAAP measures
Use of non-GAAP financial measures This investor 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. The Company’s management uses these non-GAAP financi
Slide 5: Over 100 years of history in Tennessee
Over 110 years of history in Tennessee 2003: Acquired The Bank of Murfreesboro in Nashville MSA 2007: Acquired branches from AmSouth Bank in Tennessee community markets 1984 1988 1996 1999 2001 2003 2004 2006 2012 2013 2015 Year: 2001: Opened branches in Nashville and Memphis 2004: Opened branch in
Slide 6: Snapshot of FB Financial today
Snapshot of FB Financial today Financial highlights Company overview Second largest Nashville-headquartered bank and third largest Tennessee-based bankOriginally chartered in 1906, one of the longest continually operated banks in Tennessee Attractive footprint in both high growth metropolitan market
Slide 7: Strategic drivers
Strategic drivers Balanced business model buoyed by low-cost core deposit base Experienced senior management team Strong financial performer: delivering profitability and growth Community bank culture and family values Scalable banking and mortgage platforms Complementary positions in high growth me
Slide 8: A leading community bank headquartered in Tennessee
A leading community bank headquartered in Tennessee Top 10 banks in Tennessee¹ Top 10 banks under $25bn assets in Tennessee¹ Source: SNL Financial; Note: Deposit data as of June 30, 2017; Pro forma for pending acquisitions announced as of November 8, 20171 Sorted by deposit market share, deposits ar
Slide 9: Attractive footprint with balance between community and metropolitan markets
Attractive footprint with balance between stable community markets and high growth metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo 1 Source
Slide 10: Pro forma core results and 2016-2017 highlights
Pro forma core results2 2015 2016 YTD174 Diluted earnings per share2 $1.91 $2.40 $1.53 Weighted average diluted shares (in millions) 17.2 19.3 27.2 Net income (in millions)1,2 $32.9 $46.3 $41.7 Return on average assets1,2 1.28% 1.54% 1.62% Return on average common equity1,2 14.4% 16.7% 13.0% Core ef
Slide 11: Clayton Banks merger overview
Clayton Banks merger overview Closed acquisition effective July 31, 2017, adding $1.1 billion in loans and $854.8 million in customer depositsStrong cultural synergies have continued to grow, exceeding initial expectationsCommunity investment and branding initiative underway - $10 million included i
Slide 12: Delivering profitability and growth
Delivering profitability and growth Drivers of profitability improvement 1 Pro forma net income and tax-adjusted return on average assets include a pro forma provision for federal income taxes using a combined effective income tax rate of 33.76%, 35.37%, 35.63%, 35.08%, and 36.75% for the years ende
Slide 13: Net interest margin driven by multiple levers
Net interest margin driven by multiple levers Historical yield and costs 1 Includes tax-equivalent adjustment2 Data for nonaccrual interest collections not available prior to 2016. 3 YTD 2017 data reflects the nine months ended September 30, 2017 NIM (%) 3.52% 3.75% 3.93% 3.97% 4.10% 4.50% NIM, ex-a
Slide 14: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($mm) and commercial real estate concentration Loan portfolio breakdown1 4Q 2012 3Q 2017 Total HFI loans: $3,115mm 1 Exclude HFS loans, C&I includes owner-occupied CRE2 Risk-based capital at bank level as reported in Call Report. Comme
Slide 15: Asset quality continues to improve
Asset quality continues to improve 1 Includes $3.6 million of acquired excess land and facilities and $13.6 million of GNMA rebooked loans at September 30, 2017 – see page 11 of the Quarterly Financial Supplement that was furnished as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed wi
Slide 16: Stable, low cost core deposit franchise
Stable, low cost core deposit franchise Total deposits ($mm) 1 Includes $46.8 million and $69.9 million in mortgage servicing-related escrow deposits for the year ended December 31, 2016 and the quarter ended September 30, 2017, respectively.2 Nine months ended September 30, 2017 data annualized. No
Slide 17: Mortgage Banking continues to execute
Mortgage Banking continues to execute Mortgage pre-tax contribution to overall Company reduced to approximately 16% from 28% with Clayton Banks acquisitionRebalanced mix through better channel distribution as Correspondent growth offsets refinancing decline primarily in Consumer DirectYTD 2017 total
Slide 18: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated YTD 2017 core efficiency ratio of 68.8% driven by Banking Segment core efficiency ratio of 59.9%, meeting our target level of sub-60% Further realization of cost savings from Clayton Banks transaction will help efficiency ratio, expec
Slide 19: Strong capital position for future growth
Strong capital position for future growth See “Use of non-GAAP financial measures,” “Reconciliation of non-GAAP financial measures” and the Appendix hereto. Total regulatory capital at consolidated level. Capital position Total capital composition 12/31/15 12/31/16 9/30/2017 Shareholder’s equity / A
Slide 20: Appendix
Appendix (FB) FirstBank
Slide 21: Reconciliation measures: Pro forma core net income
Reconciliation of non-GAAP financial measures Pro forma core net income
Slide 22: Reconciliation measures: Pro forma core diluted earnings per share
Reconciliation of non-GAAP financial measures (cont’d) Pro forma core diluted earnings per share
Slide 23: Reconciliation measures: Tax-equivalent core efficiency ratio
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue.
Slide 24: Reconciliation measures: Segment tax-equivalent core efficiency ratio
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio
Slide 25: Reconciliation measures: Segment core, pre-tax contribution
Reconciliation of non-GAAP financial measures (cont’d) Segment core, pre-tax contribution
Slide 26: Tangible book value per share and TCE to tangible assets
Tangible book value per common share and tangible common equity to tangible assets Reconciliation of non-GAAP financial measures (cont’d) On June 28, 2016, the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25
Slide 27: Reconciliation measures: Core pro forma return on average assets and equity
Reconciliation of non-GAAP financial measures (cont’d) Core pro forma return on average assets and equity