Fb Financial Corporation · NYSE:FBK
Fb Financial — Q3 2024 Earnings Presentation
28 slides from Fb Financial's earnings presentation, Oct 15, 2024
Slide 1: 2024 Third Quarter Earnings Presentation
2024 Third Quarter Earnings Presentation October 15, 2024
Slide 2: Forward-looking statements
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, statem
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 may include, without limi
Slide 4: 3Q 2024 Highlights
3Q 2024 Highlights Key highlights Financial results 3Q 2024 pre-tax pre-provision net revenue of $13.3 million and $53.8 million on an adjusted1 basis, resulting in ROAA and adjusted ROAA1 of 0.32% and 1.25%, 3Q 2024 respectively Diluted earnings per common share $0.22 Loans HFI grew by 7.2% ann
Slide 5: Driving shareholder value
Driving shareholder value Earnings per Share Book Value per Share Earnings per Share Adjusted Earnings per Share1 BVPS TBVPS 1 $3.97 $3.70 $3.76 $33.48 $30.13 $31.05 $2.92 $3.01 $28.36 $28.15 $27.35 $2.64 $2.57 $2.55 $24.67 $25.69 $21.73 $22.90 $1.67 $1.67 2020 2021 2022 2023 YTD 2024 2020 2021 2022
Slide 6: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital Position Tangible Book Value per Share1 3Q23 2Q24 3Q24 Shareholder’s Equity/Assets 11.0% 12.0% 12.1% $28.15 $24.67 $25.69 $22.90 TCE/TA1 9.2% 10.2% 10.4% $21.73 $18.55 $17.02 Common Equity 11.8% 12.7% 12.7% $14.56 Tier 12 $11.56 $11.58 Tier 1 Risk-Ba
Slide 7: Building operating leverage
Building operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ Banking segment Mortgage segment Consolidated Consolidated 3Q 2024 efficiency ratio of 85.1% and core efficiency ratio¹ of 58.4% 120.3% compared to 58.6% and 58.3% in 2Q 2024, 104.7% 95.0% 95.4% respectively and 7
Slide 8: Stabilizing net interest margin
Stabilizing net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $13,000 6.0% Avg. interest earning $11,000 Yields and Costs (%) 5.0% assets ($mm) 4.0% $9,000 3.0% 2.0% $7,000 1.0% -- $5,000 3Q23 4Q23 1Q24 2Q24 3Q24 NIM1 3.42% 3.46%
Slide 9: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry ($ millions) Other 5% 1-4 family 17% 1 C&I 32% 1-4 family HELOC 6% Multifamily 7% C&D 11% CRE 2 22% CRE2 exposure by type C&D exposure by type Assisted Living Other 6% Office Multifamily Facility 17% 13% 7% Healthcare Facility 4% Self S
Slide 10: Office exposure (non-owner occupied CRE & C&D)
Office exposure (non-owner occupied CRE & C&D) Office loans represent only 4.0% of our total HFI loan portfolio as of the end of 3Q24 Credit detail by class Projects generally characterized by 25-30% cash equity requirement, loan to value maximums of 70%-75% at origination, and requests for guar
Slide 11: Asset quality remains solid
Asset quality remains solid Nonperforming assets / assets Nonperforming loans HFI / loans HFI Commercial loans HFS Optional GNMA repurchase 1 Other NPAs 0.99% 0.96% 0.81% 0.23% 0.75% 0.79% 0.71% 0.69% 0.73% 0.18% 0.07% 0.17% 0.65% 0.17% 0.59% 0.18% 0.76% 0.58% 0.63% 0.46% 0.52% 3Q23 4Q23 1Q24 2Q24 3
Slide 12: Allowance for credit losses overview
Allowance for credit losses overview Allowance for Credit Losses (ACL) model utilizes Moody’s model1 with key economic data summarized below: ACL on loans HFI / Loans HFI by category 3Q23 2Q24 3Q24 3.95% 4.04% 3.96% 2.85% 2.83% 2.47% 1.77% 1.81% 1.81% 1.57%1.67%1.65% 1.48% 1.47% 1.65% 1.62% 1.61%
Slide 13: Valuable deposit base
Valuable deposit base Deposits by customer segment ($mm) Cost of deposits Consumer Commercial Public Noninterest-bearing as % of total deposits Cost of total deposits (%) $10,639 $10,548 $10,976 35.0% 2.65% 2.76% 2.83% 3.00% $10,505 $10,468 2.77% 2.58% $1,619 $1,413 30.0% 2.50% $1,597 $1,554 $1,522
Slide 14: Strong liquidity position
Strong liquidity position Well positioned for economic challenges created by the On-balance sheet liquidity ($mm) uncertain economic environment On-balance sheet liquidity On-balance sheet liquidity / tangible assets Securities portfolio makes up 12.1% of total assets and does not include any HT
Slide 15: Mortgage performance in 3Q 2024
Mortgage performance in 3Q 2024 Highlights Interest rate lock commitment volume ($mm) Mortgage segment pre-tax net contribution of Purchase Refinance $0.6 million in 3Q 2024 $373 $377 $385 $381 $43 $49 $67 $57 Hired 11 new mortgage originators during 3Q $246 2024 $45 Mortgage volume and margin
Slide 16: Appendix
FB} pee Bank Appendix
Slide 17: Adjusted net income and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 16
Slide 18: Adjusted pre-tax pre-provision net revenue
GAAP reconciliations and use of non-GAAP financial measures Adjusted pre-tax pre-provision net revenue 17
Slide 19: Adjusted tangible net income
GAAP reconciliations and use of non-GAAP financial measures Adjusted tangible net income 18
Slide 20: Adjusted earnings and diluted earnings per share
GAAP reconciliations and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share 19
Slide 21: Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios
GAAP Reconciliations and use of non-GAAP Financial Measures Adjusted Common Equity Tier 1 and Total Risk-Based capital ratios 20
Slide 22: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 21
Slide 23: Banking segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliations and use of non-GAAP financial measures Banking segment core efficiency ratios (tax-equivalent basis) 22
Slide 24: Mortgage segment core efficiency and core revenue ratios
GAAP reconciliations and use of non-GAAP financial measures Mortgage segment core efficiency (tax-equivalent basis) and core revenue ratios 23
Slide 25: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 24
Slide 26: Tangible assets, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Tangible assets, common equity and related measures 25
Slide 27: Adjusted return on average tangible common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average tangible common equity and related measures 26
Slide 28: Adjusted return on average asset, common equity and related measures
GAAP reconciliations and use of non-GAAP financial measures Adjusted return on average asset, common equity and related measures 27