Fb Financial Corporation · NYSE:FBK
Fb Financial — Investor Presentation (November 2019)
30 slides from Fb Financial's investor presentation, Nov 13, 2019
Slide 1: Fourth Quarter 2019 Investor Presentation
Fourth Quarter 2019 Investor Presentation November 13, 2019
Slide 2: Important Information for Shareholders and Investors
IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORS This presentation shall not constitute an offer to sell, the solicitation of an offer to sell, or the solicitation of an offer to buy any securities or the solicitation of any vote or approval, nor shall there be any sale of securities in any juri
Slide 3: Forward looking statements
Forward looking statements Certain statements contained in this presentation may constitute 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 inc
Slide 4: Use of non-GAAP 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 5: Strategic drivers
Strategic drivers Experienced Senior Management Team Strategic M&A and Elite Financial Capital Optimization Performance Scalable Platforms Enabled by Great Place to Work Technology Empowered Teams Across Attractive Metro and Community Markets 4
Slide 6: Over 100 years of history
Over 110 years of history Organic growth Acquisitions Other 1990: 2001: 2004: 2008: 2014: 2015 - 2019: 2016: 2018: 2019: Jim Ayers Opened Opened branch Opened two Opened branch Awarded “Top Rebranded to Completed Opened branch acquired sole branches in in Knoxville branches in in Huntsville, Workpla
Slide 7: Snapshot of FB Financial today
Snapshot of FB Financial today Company overview Current organizational structure Second largest Nashville-headquartered bank and third largest Tennessee-based bank Originally chartered in 1906, one of the longest continually operated 100% stockholder of FirstBank banks in Tennessee Completed t
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 $30bn assets in Tennessee¹,2 Deposit Percent of Deposit Percent of TN TN Branches market company Branches market company Rank Name Headquarters deposits Rank Name Headquarters deposits (#) share deposit
Slide 9: Attractive footprint with balance between community and metropolitan markets
Attractive footprint with balance between stable community markets and high growth metropolitan markets Our current footprint1 Market rank by deposits: Nashville (12th) Nashville MSA Chattanooga (5th) Knoxville MSA Knoxville (9th) Jackson (3rd) Memphis (28th) th Jackson MSA Huntsville
Slide 10: Well positioned in attractive metropolitan markets
Well positioned in attractive metropolitan markets Nashville rankings: “The new 'it' City” – The New York Times1 Chattanooga 4th largest MSA in TN Metro for professional and Most attractive mid-sized Diverse economy with over 24,000 businesses # 1 business service jobs2 # 2 cities for business3
Slide 11: YTD 2019 highlights
YTD 2019 highlights Key highlights Financial results Adjusted diluted EPS1 of $2.13, resulting in adjusted ROAA1 of 1.59% and adjusted ROATCE1 of 16.8% YTD 2019 Diluted earnings per share $1.97 Completed acquisition of branches from Atlantic Capital Adjusted diluted earnings per share1 $2.13 Ban
Slide 12: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Pro forma return on average assets, adjusted1,2 1.69% 1.59% 1.52% 1.46% 1.21% 0.91% 0.84% 2013 2014 2015 2016 2017 2018 YTD 2019 Drivers of profitability Loans / deposits Net interest margin Core efficiency ratio2 NPLs (HFI) / loans (HFI) (%)
Slide 13: Net interest margin remains strong
Net interest margin remains strong Historical yield and costs 7.0% $6,000 6.0% $5,000 5.0% $4,000 4.0% $3,000 3.0% ($mm) $2,000 2.0% Yields and (%) Costs 1.0% $1,000 assets earning Avg. interest -- $0 2013 2014 2015 2016 2017 2018 YTD 2019 NIM (%) 3.75% 3.93% 3.97% 4.10% 4.46% 4.66% 4.42% Impact of
Slide 14: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($mm) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) concentration2 12/31/18 9/30/19 $4,345 C&D loans subject to 100% risk- $3,668 99% 89% $3,167 based capital limit $1,702 $1,849 $1,341 $
Slide 15: Stable core deposit franchise
Stable core deposit franchise Total deposits ($mm) Cost of deposits Noninterest bearing 1(%) Cost of total deposits (%) 30.0% 25.7% 26.1% 24.2% 25.0% 22.8% 22.8% 24.7% 19.8% 20.0% 0.76% 1.13% 15.0% $4,922 $4,172 0.42% $3,664 10.0% 0.29% $2,672 0.48% $2,438 5.0% 0.36% $1,804 $1,924 0.30% 0.0% 2013 20
Slide 16: Mortgage operations overview
Mortgage operations overview Highlights Mortgage production Total Mortgage adjusted pre-tax contribution1 Retail of $8.7 million for YTD 2019; adjusted for $2.0 million of restructuring expenses Consumer Direct 2017 2018 YTD 19 Wholesale3 Mortgage banking income $74.7 million, down 8.5% from YTD
Slide 17: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Improving operating efficiency Core efficiency ratio1 (tax-equivalent basis) Consolidated YTD 2019 core efficiency 1 ratio of 65.1% driven by Banking Banking Segment, declined 13.7 percentage points since 2013 segment core efficiency ratio1 of 5
Slide 18: Strong asset quality
Strong asset quality Nonperforming ratios Classified & PCI loans ($mm) NPLs (HFI) / loans (HFI) NPAs / assets¹ Classified Purchased credit impaired 2.12% $89 $79 $70 $69 1.72% 1.53% $65 $66 $63 $55 $55 1.21% 1.01% $46 0.86% 0.68% 0.61% 0.62% 0.54%0.58% 0.46% 0.47% $21 0.32% $16 $0 $0 2013 2014 2015
Slide 19: Strong capital position for future growth
Strong capital position for future growth Capital position Tangible book value per share2 12/31/17 12/31/18 9/30/19 $18.03 $17.02 $14.56 Shareholder’s equity / 12.6% 13.1% 12.2% Assets $11.56 TCE / TA2 9.7% 10.5% 9.4% 3Q16 4Q17 4Q18 3Q19 Common equity tier 1 / 10.7% 11.7% 10.8% Simple capital struct
Slide 20: M&A strategy
M&A strategy1 Drive Times Glasgow Tuscaloosa: Clarksville - Nashville ~3.5 hours Kingsport - Huntsville ~2 hours Johnson City Birmingham: - Nashville >3 hours Asheville - Huntsville ~1.5 hours Atlanta: - Nashville ~3.5 hours Greenville - Chattanooga <2 hours Greenville: - Nashville ~5 hours
Slide 21: M&A update: announced acquisition of FNB Financial Corp.
M&A update: announced acquisition of FNB Financial Corp. September 17, 2019 Pro Forma Footprint FNB Highlights FBK Parent company of Farmers National Bank of Scottsville, which was founded in 1923 FNB Nashville MSA All 5 branches in the Bowling Green MSA, with 3 branches in Bowling Green and 2 b
Slide 22: FNB Financial Corp. transaction summary
FNB Financial Corp. transaction summary Expand into attractive Bowling Green MSA ranked 7th in deposit market share Dominant market share in Scottsville, KY with 54.5% of deposits Strong financial performer with net interest margin > 4.00% and ROAA > 1.15% Strategic Rationale Longstanding de
Slide 23: Appendix
Appendix FictBank
Slide 24: Reconciliation measures
Reconciliation of non-GAAP financial measures Pro forma net income, adjusted Pro forma diluted earnings per share, adjusted 1 2016 includes loss on sale of mortgage servicing rights, impairment of mortgage servicing rights, gain on sales or write-downs of other real estate owned and other assets and
Slide 25: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio(1) (1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue. 24
Slide 26: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio 1 Includes mortgage segment other noninterest mortgage banking expense, depreciation, loss on sale of mortgage servicing rights and amortization and impairment of mortgage servicing rights. 25
Slide 27: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Tangible book value per common share and tangible common equity to tangible assets 26
Slide 28: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Return on average tangible common equity Return on average tangible common equity, adjusted 27
Slide 29: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Pro forma return on average assets and equity, adjusted 28
Slide 30: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Total mortgage contribution, adjusted 29