Fb Financial Corporation · NYSE:FBK
Fb Financial — Q2 2021 Earnings Presentation
29 slides from Fb Financial's earnings presentation, Jul 20, 2021
Slide 1: 2021 Second Quarter Earnings Presentation
2021 Second Quarter Earnings Presentation July 20, 2021
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 include, without limitati
Slide 4: 2Q 2021 highlights
2Q 2021 highlights Key highlights Financial results ◼ Excluding PPP loans, loans grew 13.9% annualized in 2Q 2021 as the 2Q 2021 economy reopened, spurring customer demand. High single digit percentage annual growth expected in 2021 Diluted earnings per share $0.90 Adjusted diluted earnings per shar
Slide 5: Core earnings power
Core earnings power Adjusted return on average assets¹ 1.69% 1.68% 1.65% 1.52% 1.55% 2017 2018 2019 2020 1H21 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) Core efficiency ratio1 Loans excluding HFS Loans HFS 4.66% $302 101% 4.46% 95% 95% 15% 4.34% 68.1% 7% 6%
Slide 6: Stable net interest margin
Stable net interest margin Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $12,000 6.0% Avg. interest earning $10,000 Yields and Costs (%) 5.0% assets ($mm) $8,000 4.0% $6,000 3.0% 2.0% $4,000 1.0% $2,000 -- $0 2Q20 3Q20 4Q20 1Q21 2Q21 NIM1 3.50% 3
Slide 7: Mortgage faces industry headwinds
Mortgage faces industry headwinds Highlights Quarterly mortgage production ◼ Total mortgage pre-tax contribution of $0.5 million Consumer Direct Retail 2Q20 1Q21 2Q21 ◼ Slower pace of refinance activity and housing supply shortages resulting in weaker IRLC volume ◼ Margins continue to compress due t
Slide 8: Managing expenses and investing to support growth
Managing expenses and investing to support growth Highlights Core efficiency ratio (tax-equivalent basis)¹ ◼ Consolidated 2Q 2021 core efficiency ratio¹ Banking segment of 68.9% Consolidated Mortgage segment 97.9% ◼ Change in segment definitions 1Q 2021 as mortgage retail footprint no longer include
Slide 9: Well-capitalized for future opportunities
Well-capitalized for future opportunities Capital position Tangible book value per share3 2Q201 1Q211 2Q211,2 Shareholder’s equity/Assets 11.1% 11.1% 11.5% $23.43 $21.73 $18.55 $17.02 TCE/TA3 8.7% 9.1% 9.5% $14.56 $11.56 $11.58 Common equity 11.4% 12.0% 12.4% tier 1/Risk-weighted assets 3Q16 4Q16 4Q
Slide 10: Valuable core deposit base
Valuable core deposit base Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 35.0% 29.8% $10,257 $10,204 30.0% $9,458 25.2% 24.0% 24.4% $9,094 $38 $41 25.0% 23.7% $92 $62 20.0% 15.0% $5,953 $10,219 $10,163 $
Slide 11: Balanced loan portfolio
Balanced loan portfolio Portfolio mix C&I1 exposure by industry Other Balance Ex. PPP PPP 4% C&I CRE-OO Total % of Total Loans 1-4 family Real Estate Rental and Leasing $ 375.3 $ 162.7 $ 538.0 25.6% $ 2.2 1 16% C&I Retail Trade 68.5 123.1 191.6 9.1% 4.2 30% Wholesale Trade 116.9 53.6 170.5 8.1% 3.9
Slide 12: Pandemic-related credit update
Pandemic-related credit update ◼ Total deferrals across the entire loan portfolio are down to Industry exposures / gross loans (HFI) $73.9 million. $48.8 million are paying interest, while $25.1 8.0% million are full deferrals of principal and interest. ◼ Credit quality remains satisfactory overall
Slide 13: Asset quality remains solid
Asset quality remains solid Nonperforming ratios Classified loans / loans HFI 1 NPLs (HFI)/loans (HFI) NPAs/assets 2.22% 0.91% 0.94% 2.09% 0.83% 1.83% 1.87% 0.75% 0.77% 1.76% 0.72% 0.71% 0.66% 0.61% 0.64% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 LLR/loans HFI (excluding PPP loans)2 Net char
Slide 14: Allowance for credit losses overview
Allowance for credit losses overview ◼ Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: FQE, FYE 12/31, 3Q 2021 4Q 2021 2021 2022 2023 2024 2025 GDP (bcw$) $ 19,727.6 $ 19,866.4 $ 19,564.1 $ 20,136.8 $ 20,610.
Slide 15: Appendix
FB} Fee Bank Appendix
Slide 16: Adjusted net income and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 15
Slide 17: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 16
Slide 18: Adjusted earnings and diluted earnings per share
GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share* 17
Slide 19: Adjusted pre-tax, pre-provision earnings
GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings 18
Slide 20: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 19
Slide 21: Core efficiency ratio (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 20
Slide 22: Segment core efficiency ratios (tax-equivalent basis)
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 21
Slide 23: Adjusted mortgage contribution
GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution 22
Slide 24: Tangible assets and equity and tangible book value per share
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity and tangible book value per share 23
Slide 25: Return on average tangible common equity and adjusted pre-tax pre-provision ROATCE
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity 24
Slide 26: Return on average tangible common equity and adjusted pre-tax pre-provision ROATCE
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity 25
Slide 27: Adjusted return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity 26
Slide 28: Adjusted return on average assets and equity
GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity 27
Slide 29: Adjusted Allowance for Credit Losses to Loans Held for Investment
GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment 28