Slide 1: FB Financial Corporation Third Quarter 2016 Earnings Presentation
FB Financial Corporation Third Quarter 2016 Earnings Presentation October 28,2016
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
2 FB FirstBank 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, wit
Slide 4: Strategic drivers
3 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 mortgage platform Complementary positions in high growth metropolitan
Slide 5: Attractive footprint with balance between community markets and high growth metropolitan markets
4 FB FirstBank Attractive footprint with balance between community markets and platforms in high growth metropolitan markets Note: Financial data as of September 30, 2016. Market data as of June 30, 2016. Size of bubble represents size of company deposits in a given market Source: Company data and S
Slide 6: 3Q 2016 Highlights
5 FB FirstBank Pro forma core (non-GAAP) results 1 3 months endedSeptember 30, 2016 Diluted earnings per share $0.70 Net income $12.8 million Return on average assets 1.69% Return on average equity 18.4% Return on averagetangible common equity 22.7% Efficiency ratio 70.0% 3Q 2016 Highlights Successf
Slide 7: Delivering profitability and growth
6 FB FirstBank 0.97% 0.86% 0.83% 0.78% 0.68% 3Q15 4Q15 1Q16 2Q16 3Q16 Delivering profitability and growth Drivers of profitability improvement 1Our pro forma net income and pro forma core net income include a pro forma provision for federal income taxes using a combined effective income tax rate of
Slide 8: Net interest margin driven by multiple levers
7 FB FirstBank Net interest margin driven by multiple levers Historical yield and costs Source: Company information Note: Financial data as of September 30, 2016 1 Includes tax-equivalent adjustment NIM (%) 3.95% 3.85% 4.05% 4.38% 4.05% Deposit cost (%) 0.30% 0.28% 0.29% 0.28% 0.30% Loan (HFI) yield
Slide 9: Consistent loan growth and balanced portfolio
8 FB FirstBank Consistent loan growth and balanced portfolio Total loan growth1($mm) and commercial real estate concentration Total HFI loans: $1,651mm Loan portfolio breakdown 1 3Q 2015 3Q 2016 Total HFI loans: $1,793 mm 1-4 family 16% 1-4 family HELOC 10% Multifamily 3% C&D 13% CRE 15% C&I 40% Oth
Slide 10: Stable, low cost core deposit franchise
9 FB FirstBank Stable, low cost core deposit franchise 25.1% 25.7% 25.0% 27.1% 27.5% 0.30% 0.28% 0.29% 0.28% 0.30% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 3Q15 4Q15 1Q16 2Q16 3Q16 Noninterest bearing (%) Cost of total deposits (%) $572 $627 $618 $680 $726 3Q15 4Q15 1Q16 2Q16 3Q16 $2,276 $2,438 $2,46
Slide 11: Strong 3Q 2016 Mortgage Results
10 FB FirstBank 142 130 125 175 212 59 42 44 64 74 169 149 147 172 210 14 15 15 17 20 4 155 403 349 420 580 687 0 200 400 600 800 1,000 1,200 1,400 1,600 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Key driver to noninterest income growth –Mortgage Banking Mortgage Banking income $36.9 million, up 23% from 2Q
Slide 12: Continued operating leverage improvement
FB FirstBank 11 Continued operating leverage improvement Continued focus to achieve better operating leverage Bank’s core system creates a scalable platform designed to drive and support growth across markets Capacity to grow business in key metropolitan markets, especially Nashville MSA, without ad
Slide 13: Strong asset quality
12 FB FirstBank Strong asset quality (0.17%) (0.14%) (0.00%) 0.02% (0.12%) 3Q15 4Q15 1Q16 2Q16 3Q16 1.65% 1.44% 1.43% 1.36% 1.30% 3Q15 4Q15 1Q16 2Q16 3Q16 $62 $49 $46 $42 $40 3Q15 4Q15 1Q16 2Q16 3Q16 0.97% 0.86% 0.83% 0.78% 0.68% 3Q15 4Q15 1Q16 2Q16 3Q16 Source: Company filings. Financials as of Sep
Slide 14: Capital position
13 FB FirstBank Common Equity Tier 1 Capital 84%Trust Preferred 9% Tier 2 ALLL 7% Total capital 1: $328 mm Summary of capital position Source: Company filings Note: Financial data as of September 30, 2016 1 Total regulatory capital. Capital position Total capital composition 3Q 2015 2Q 2016 3Q 2016
Slide 15: Appendix
14 FB FirstBank Appendix
Slide 16: Selected financial data
15 FB FirstBank Selected financial data 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Statement of Income Data Total interest income $ 30,005 $ 30,732 $ 28,318 $ 27,552 $ 26,384 Total interest expense 2,388 2,374 2,375 2,256 2,249 Net inte
Slide 17: Selected financial data (cont'd)
FB FirstBank 16 Selected financial data (cont'd) 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Selected Ratios Return on average: Assets 0.16% 2.19% 2.03% 1.29% 2.41% Shareholders' equity 1.74% 24.42% 23.79% 15.59% 27.84% Tangible common e
Slide 18: 3Q 2016 Highlights
FB FirstBank 17 3Q 2016 Highlights Reported Results Pro forma results Pro forma coreresults1 For the three months ended September 30 2016 2015 2016 2015 2016 2015 Results of operations Net income $ 1,207 $ 15,905 $ 10,033 $ 11,583 $ 12,801 $ 10,042 Diluted earnings per share (EPS) $ 0.07 $ 0.93 $ 0.
Slide 19: GAAP reconciliation: Tax-equivalent core net income
18 FB FirstBank GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent core net income 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Pre-tax net income 15,979 16,908 15,640 9,652 16,763 Non-core items: Noninterest income
Slide 20: GAAP reconciliation: Tax-equivalent efficiency ratio
19 FB FirstBank GAAP reconciliation and use of non-GAAP financial measures Tax-equivalent efficiency ratio 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Pre-tax net income 55,529 50,595 41,347 41,880 35,579 Less one-time equity grants 2,96
Slide 21: GAAP reconciliation: Tangible assets and equity
20 FB FirstBank GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Tangible Assets Total assets 3,187,180 2,917,958 2,855,563 2,899,420 2,876,340 Less goodwil
Slide 22: GAAP reconciliation: Pro forma core returns
21 FB FirstBank GAAP reconciliation and use of non-GAAP financial measures Pro forma core return on average tangible equity Pro forma core return on average assets and equity Pro forma core total revenue 2016 2015 ($000, unless mentioned) Third Quarter Second Quarter First Quarter Fourth Quarter Thi