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8-K

FB Financial Corp (FBK)

8-K 2020-07-20 For: 2020-07-20
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Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 20, 2020

FB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Tennessee 001-37875 62-1216058
(State or other jurisdiction<br>of incorporation) (Commission File Number) (IRS Employer<br>Identification Number)
211 Commerce Street, Suite 300<br>Nashville, Tennessee 37201
(Address of principal executive offices) (Zip Code)

(615) 564-1212

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $1.00 par value FBK New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).   Emerging growth company ý
---
If  an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ý

Item 2.02 Results of Operations and Financial Condition.

On July 20, 2020, FB Financial Corporation (the “FB Financial”) issued a press release announcing its financial results for the second quarter ended June 30, 2020 (the “Earnings Release”). In addition, FB Financial made available on its website (investors.firstbankonline.com) supplemental financial information for the second quarter ended June 30, 2020 (the “Supplemental Financial Information”) and an earnings release presentation (the “Earnings Presentation”) for use in connection with the Earnings Release. Copies of the Earnings Release, the Supplemental Financial Information and the Earnings Presentation are furnished as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3, respectively, to this current report on Form 8-K (this “Report”).

The information contained in this Report, including Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

The disclosure contained in Item 2.02 of this Report is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit Number                                          Description of Exhibit

| 99.1 | Earnings Release issuedJuly20, 2020 | | --- | --- || 99.2 | Supplemental Financial Information for the quarter endedJune30, 2020 | | --- | --- || 99.3 | Earnings Presentation dated July 21, 2020 | | --- | --- |

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FB FINANCIAL CORPORATION
By: /s/ Michael M. Mettee
Michael M. Mettee
Interim Chief Financial Officer
Date: July 20, 2020

Document

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FB Financial Corporation Reports Second Quarter 2020 Results

Reported net income of $22.9 million, or diluted EPS of $0.70,

reflecting record mortgage contribution

Adjusted PTPP earnings* were $57.8 million for the second quarter, Adjusted EPS* of $0.74

Recorded provisions for credit losses of $25.9 million building ACL to 2.34% of loans HFI

NASHVILLE, TENNESSEE— July 20, 2020--FB Financial Corporation (the "Company") (NYSE: FBK), parent company of FirstBank, reported net income of $22.9 million, or $0.70 per diluted common share, for the second quarter of 2020, compared to net income of $18.7 million, or $0.59 per diluted common share, for the second quarter of 2019. The forecasted impact of the COVID-19 pandemic crisis resulted in provisions for credit losses and unfunded commitments totaling $25.9 million in the second quarter compared to $29.6 million in the first quarter of 2020 and $0.9 million in the second quarter of 2019. The Company reported adjusted pre-tax, pre-provision ("PTPP") earnings of $57.8 million this quarter, reflecting increases of 73.0% and 89.7% from $33.4 million and $30.5 million in the first quarter of 2020 and second quarter of 2019, respectively.

President and Chief Executive Officer, Christopher T. Holmes stated, "The second quarter of 2020 was a unique and challenging environment for our Company. During the second quarter, we assisted our customers by approving and funding over 2,900 Paycheck Protection Program ("PPP") loans totaling $314.7 million for small businesses, preserving jobs for over 36,000 employees in our communities and now we are focused on maintaining close relationships with these businesses as they proceed to the forgiveness phase. We anticipate recognizing an estimated $5.5 million in deferred origination fees, net of third party costs and deferred salaries, over the remaining life of the PPP loan portfolio. Additionally, we reached out to our customers and deferred loan payments for over 1,950 consumers and businesses totaling $918.3 million and we are now working with each customer individually to assist as appropriate on a go forward basis. Between our team's ability to operate in this unprecedented environment and the caring and compassion that they have shown for our customers and their fellow associates, I have never been more proud to be part of the FirstBank team. We have built on relationships and developed a trust with our customers and communities that will be a growth catalyst for years to come."

Holmes commented further, "In the face of these challenges, we positioned the Company for the road ahead by improving our liquidity position, increasing our credit reserve and building our capital through a very strong adjusted pre-tax, pre-provision ROAA of 3.29%. We also completed our conversion of Farmers National Bank of Scottsville (KY) ("Farmers National") and continued working towards the closing of our pending merger with Franklin Financial Network, Inc. ("Franklin" and the "Franklin merger")."

Performance Summary

2020 2019 Annualized
(dollars in thousands, expect per share data) Second Quarter First Quarter Second Quarter 2Q20 / 1Q20<br>% Change 2Q20 / 2Q19<br>% Change
Balance Sheet Highlights
Investment securities $ 751,767 $ 767,575 $ 678,457 (8.28) % 10.8 %
Loans - held for sale 435,479 325,304 294,699 136.2 % 47.8 %
Loans - held for investment (HFI) 4,827,023 4,568,038 4,289,516 22.8 % 12.5 %
Allowance for credit losses 113,129 89,141 30,138 108.2 % 275.4 %
Total assets 7,255,536 6,655,687 5,940,402 36.2 % 22.1 %
Customer deposits 5,937,373 5,356,569 4,812,962 43.6 % 23.4 %
Brokered and internet time deposits 15,428 20,363 29,864 (97.5) % (48.3) %
Total deposits 5,952,801 5,376,932 4,842,826 43.1 % 22.9 %
Borrowings 328,662 327,822 257,299 1.03 % 27.7 %
Total shareholders' equity 805,216 782,330 718,759 11.8 % 12.0 %
Tangible book value per share* $ 19.07 $ 18.35 $ 17.18
Tangible common equity to tangible assets* 8.67 % 9.11 % 9.22 %
* Certain measures are considered non-GAAP financial measures. See “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information, which accompanies this Earnings Release, as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release Presentation dated July 21, 2020, for a reconciliation and discussion of this non-GAAP measure.

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Second Quarter 2020 Results

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2020 2019
(dollars in thousands, except share data) Second Quarter First Quarter Second Quarter
Results of operations
Net interest income $ 55,337 $ 56,249 $ 57,023
NIM 3.50 % 3.92 % 4.39 %
Provisions for credit losses $ 25,921 $ 29,565 $ 881
Net charge-off ratio 0.00 % 0.19 % 0.05 %
Noninterest income $ 81,491 $ 42,700 $ 32,979
Mortgage banking income $ 72,168 $ 32,745 $ 24,526
Total revenue $ 136,828 $ 98,949 $ 90,002
Noninterest expenses $ 80,579 $ 68,559 $ 64,119
Merger and mortgage restructuring expenses $ 1,586 $ 3,050 $ 4,612
Efficiency ratio 58.9 % 69.3 % 71.2 %
Core efficiency ratio* 57.5 % 65.7 % 65.9 %
Adjusted pre-tax, pre-provision earnings* $ 57,835 $ 33,440 $ 30,495
Total adjusted mortgage banking pre-tax contribution^*^ $ 33,616 $ 8,019 $ 2,563
Net income $ 22,873 $ 745 $ 18,688
Diluted earnings per share $ 0.70 $ 0.02 $ 0.59
Effective tax rate 24.6 % 9.70 % 25.3 %
Weighted average number of shares outstanding - fully diluted 32,506,417 31,734,112 31,378,018
Actual shares outstanding - period end 32,101,108 32,067,356 30,865,636
Returns on average:
As reported
Assets ("ROAA") 1.30 % 0.05 % 1.30 %
Equity ("ROAE") 11.6 % 0.39 % 10.6 %
Tangible common equity ("ROATCE")* 15.3 % 0.52 % 14.4 %
Adjusted pre-tax, pre-provision
Assets* 3.29 % 2.10 % 2.12 %
Equity* 29.2 % 17.5 % 17.3 %
Tangible common equity* 38.6 % 23.2 % 23.5 %
* Certain measures are considered non-GAAP financial measures. See "Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information, which accompanies this Earnings Release, as well as "Use of non-GAAP Financial Measures" and the Appendix in the Earnings Release Presentation dated July 21, 2020, for a reconciliation and discussion of this non-GAAP measure.

Measured Growth and Enhanced Liquidity

The Company grew loans (HFI) to $4.83 billion, an increase of 12.5% year over year. Excluding PPP loans, adjusted loans (HFI) were $4.51 billion, an increase of 5.19% compared to the prior year period, and a decline of $55.7 million from the first quarter of 2020. Adjusted loan growth, excluding PPP loans, was lower this quarter as the Company took a measured approach to new credits and focused on servicing customers impacted by the pandemic crisis. Contractual yield on loans decreased from 5.14% in the first quarter to 4.57% in the second quarter. PPP loans caused an 18 basis point decline in contractual yields. The lower loan yields reflect the impact of rate cuts by the Federal Reserve late in the first quarter and an overall lower interest rate environment.

During the second quarter of 2020, the Company grew customer deposits by $580.8 million to $5.94 billion, reflecting annualized quarterly growth of 43.6% and year over year growth of 23.4%. The growth is partially attributable to proceeds customers received from PPP loans in addition to an increase of $38.9 million in mortgage servicing related deposits. The cost of interest-bearing deposits for the second quarter declined by 33 basis points from the first quarter to 0.92%, while cost of total deposits declined by 29 basis points to 0.65%. Loans (HFI) to deposits decreased to 81.1% during the second quarter of 2020 from 85.0% the previous quarter.

Additionally, during the quarter, on balance sheet liquidity increased to $988.5 million, or 14.0% of tangible assets, from $773.5 million, or 12.0% of tangible assets in the first quarter of 2020. During the second quarter of 2020, investment securities decreased $15.8 million to $751.8 million, or 10.4% of total assets, compared with the previous quarter. The decline was primarily due to prepayments of mortgage backed securities and maturity of municipal securities, while cash and cash equivalents increased $292.5 million to $717.6 million, compared with the first quarter of 2020.

The Company's net interest income for the quarter was $55.3 million, representing a decrease from $56.2 million last quarter and $57.0 million for the second quarter of 2019. The Company's net interest margin (“NIM”) was 3.50% for the second quarter, compared to 3.92% and 4.39% for the first quarter of 2020 and the second quarter of 2019, respectively. Accretion related to purchased loans and nonaccrual interest contributed seven basis points to the NIM in the second quarter of 2020 compared to 13 and 17 basis points for the first quarter of 2020 and the second quarter of 2019, respectively. Overall, the NIM

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Second Quarter 2020 Results

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for the second quarter of 2020 was impacted by a 70 basis point decline in the yield on interest-earning assets partially offset by a 33 basis point decline in the rate on interest-bearing liabilities on a linked quarter basis. In addition to the lower interest rate environment, yield on average earning assets was impacted by the balance sheet mix, as average interest bearing deposits with other financial institutions increased to 7.91% of average earning assets in the second quarter of 2020 as compared to 4.93% for the previous quarter, while PPP loans with a contractual yield of 1.02% represented 3.64% of average earning assets in the second quarter of 2020.

Holmes commented, "Our team delivered tremendous growth in noninterest-bearing deposits for the quarter, solidifying our liquidity position as we face these uncertain times. Net interest margin in the quarter was impacted by our strategy to strengthen the balance sheet, which was accomplished by increasing liquidity and our thoughtful approach to loan growth. Our priorities remain the health and safety of our customers and associates, liquidity, capital, profitability and growth, in that order. As we continue forward, we would expect our margin to rebound as excess liquidity is deployed into loans, lower-yielding PPP loans are forgiven and come off of our balance sheet, and higher cost time deposits reprice downward."

Noninterest Income Benefits from Mortgage Production

Noninterest income was $81.5 million for the second quarter of 2020, compared to $42.7 million for the first quarter of 2020 and $33.0 million for the second quarter of 2019. Mortgage banking income was $72.2 million for the second quarter of 2020, compared to $32.7 million for the first quarter of 2020 and $24.5 million for the second quarter of 2019.

During the quarter, the Company produced strong results from the mortgage business driven by the lower interest rate environment and higher profit margins across the industry. Interest rate lock commitment volume totaled $2.24 billion in the second quarter of 2020 compared to $2.09 billion in the first quarter of 2020 and $1.82 billion in the second quarter of 2019.

During the second quarter of 2020, the Company's total adjusted mortgage banking pre-tax direct contribution was $33.6 million, compared to $8.0 million in the first quarter of 2020 and $2.6 million in the second quarter of 2019, excluding $0.8 million of mortgage restructuring expenses.

Holmes commented, "I am very proud of our mortgage team for their performance so far in 2020, especially their efforts in the second quarter as they delivered $33.6 million in direct contribution. The team has capitalized on the current interest rate environment through strong refinance volumes as well as new purchase originations. The operation has benefited from atypical margins, lack of capacity across the industry and a robust origination environment, partially offset by depressed servicing values and elevated prepayments of our serviced mortgages. During these times of changing interest rates and volatile markets, we continue monitoring the overall liquidity of the mortgage markets and activities by the federal housing agencies on our servicing portfolio."

Noninterest Expenses and Efficiency Gains

Noninterest expense was $80.6 million for the second quarter of 2020, compared to $68.6 million for the first quarter of 2020 and $64.1 million for the second quarter of 2019. On an adjusted basis, noninterest expense was $79.0 million for the second quarter of 2020, $65.5 million for the first quarter of 2020, and $59.5 million for the second quarter of 2019. The sequential quarter increase is primarily related to increased mortgage commissions and origination expenses, as core bank expenses remained relatively flat on a linked quarter basis due to the Company's expense control measures during the pandemic.

Holmes noted, "Modestly lower core bank noninterest expenses reflects our commitment to keeping costs contained as we navigate through these uncertain times. Expenses were elevated for the Company quarter over quarter due to our mortgage division, however the efficiency of the mortgage operation and lower core bank expenses reflect our disciplined approach as we continue balancing profitability, investment decisions and capital efficiency."

Asset Quality Remains Stable

During the second quarter of 2020, the Company recognized a provision for credit losses of $24.0 million, and a provision for unfunded commitments of $1.9 million, reflecting the impact of the varying economic forecasts related to the pandemic crisis. The Company continues to take a conservative approach regarding the economic recovery, resulting in a build of the allowance for credit losses (ACL) to $113.1 million, or 2.34% of loans held for investment and 2.51% adjusted to exclude PPP loans.

The Company's net charge-offs to average loans were 0.0% for the second quarter of 2020 compared to 0.19% in the first quarter of 2020 and 0.05% in the second quarter of 2019. The Company's nonperforming assets decreased to 0.71% of total assets as of June 30, 2020, compared to 0.74% at March 31, 2020. Nonperforming loans were 0.72% of loans held for investment at June 30, 2020, compared to 0.68% at March 31, 2020.

Holmes commented, “While our credit metrics continued to reflect strong credit quality during the second quarter, the impact of the pandemic crisis and the uncertainty of a second wave led to increased provisions and building our ACL, which is reflective of the economic forecasts at the end of the quarter. We have certainly seen an improvement in some pockets of the economy and across our bank footprint, however, it is still too early to discern the overall impact to our loan portfolio. We are

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Second Quarter 2020 Results

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approaching the end of the deferred payments for many of our customers and are taking a proactive approach to address their individual circumstances related to the crisis.”

Capital Well Positioned

"Our adjusted pre-tax, pre-provision earnings increased by 73.0% sequentially and provided earnings to offset the increased provisions, while growing capital, as we continue to navigate the impacts from the pandemic. Our current level of tangible common equity at 8.7% of tangible assets and our simple capital structure of common equity and minimal trust preferred securities, positions us well and gives us multiple capital options, including the continuation of quarterly dividends in the near term. Our regulatory capital levels remained solid and improved during the quarter, withstanding the impact of CECL and the pandemic," commented Holmes.

Summary

Holmes further commented, "We understand the next couple quarters will present additional challenges as we manage our loan deferrals, the Franklin merger and the continued impact of the pandemic. Challenges notwithstanding, we are very proud of our performance during the second quarter in an adverse economic environment and with employees working from home across our footprint. The pandemic has tested our ability to serve our customers, our associates and our shareholders, and so far we like our results."

WEBCAST AND CONFERENCE CALL INFORMATION

FB Financial Corporation will host a conference call to discuss the Company's financial results at 8:00 a.m. CT on Tuesday, July 21, 2020, and the conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1631/35639. An online replay will be available approximately an hour following the conclusion of the live broadcast.

ABOUT FB FINANCIAL CORPORATION

FB Financial Corporation (NYSE: FBK) is a bank holding company headquartered in Nashville, Tennessee. FB Financial Corporation operates through its wholly owned banking subsidiary, FirstBank, the third largest Tennessee-headquartered community bank, with 73 full-service bank branches across Tennessee, Kentucky, North Alabama and North Georgia, and mortgage offices across the Southeast. FirstBank serves five of the largest metropolitan markets in Tennessee and has approximately $7.3 billion in total assets.

MEDIA CONTACT: FINANCIAL CONTACT:
Jeanie M. Rittenberry Robert Hoehn
615-313-8328 615-564-1212
jrittenberry@firstbankonline.com rhoehn@firstbankonline.com
www.firstbankonline.com investorrelations@firstbankonline.com

SUPPLEMENTAL FINANCIAL INFORMATION AND EARNINGS PRESENTATION

Investors are encouraged to review this Earnings Release in conjunction with the Supplemental Financial Information and Earnings Presentation posted on the Company’s website, which can be found at https://investors.firstbankonline.com. This Earnings Release, the Supplemental Financial Information and the Earnings Presentation are also included with a Current Report on Form 8-K that the Company furnished to the U.S. Securities and Exchange Commission (“SEC”) on July 20, 2020.

BUSINESS SEGMENT RESULTS

The Company has included its business segment financial tables as part of this Earnings Release. A detailed discussion of our business segments is included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019, and investors are encouraged to review that discussion in conjunction with this Earnings Release.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release 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 include, without limitation, statements regarding the projected impact of the COVID-19 global pandemic on our business operations, statements relating to the timing, benefits, costs, and synergies of the proposed merger with Franklin Financial Network, Inc. (“Franklin”) (the “Franklin merger”) and of the recent merger with FNB Financial Corp. (“FNB”) (together with the Franklin merger, the “mergers”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These

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forward-looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and a continued slowdown in economic growth in the local or regional economies in which we operate and/or the US economy generally, (2) the effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business and our customers' business, results of operations, asset quality and financial condition, (3) changes in government interest rate policies, (4) our ability to effectively manage problem credits, (5) the risk that the cost savings and any revenue synergies from the mergers or another acquisition may not be realized or may take longer than anticipated to be realized, (6) disruption from the mergers with customer, supplier, or employee relationships, (7) the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement with Franklin, (8) the failure to obtain necessary regulatory approvals for the Franklin merger, (9) the possibility that the costs, fees, expenses, and charges related to the Franklin merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (10) the failure of the conditions to the Franklin merger to be satisfied, (11) the risks related to the integrations of the combined businesses following the Franklin merger, including the risk that the integration will be materially delayed or will be more costly or difficult than expected, (12) the diversion of management time on issues related to the mergers, (13) the ability of FB Financial to effectively manage the larger and more complex operations of the combined company following the Franklin merger, (14) the risks associated with FB Financial’s pursuit of future acquisitions, (15) reputational risk and the reaction of the parties’ respective customers to the mergers, (16) FB Financial’s ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, (17) the risk of potential litigation or regulatory action related to the Franklin merger, and (18) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and its other filings with the Securities and Exchange Commission (the “SEC”). Many of these factors are beyond FB Financial’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this press release, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the Company.

FB Financial qualifies all forward-looking statements by these cautionary statements.

GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES

This Earnings Release 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 limitation, adjusted net income, adjusted diluted earnings per share, adjusted and unadjusted pre-tax pre-provision earnings, adjusted pre-tax pre-provision diluted earnings per share, adjusted and unadjusted pre-tax pre-provision earnings per share, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted mortgage contribution, adjusted return on average tangible common equity, adjusted pre-tax pre-provision return on average tangible common equity, adjusted return on average assets and equity, adjusted pre-tax pre-provision return on average assets and equity, core total revenue, adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses as a percentage of loans held for investment, which excludes the impact of PPP loans. Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted measures. The corresponding Supplemental Financial Information and Earnings Release Presentation also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.

The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrate the effects of significant non-core gains and charges in the current and prior periods. The

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Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. Investors should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release Presentation dated July 21, 2020, for a discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.

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Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Second Quarter First Quarter Second Quarter
Statement of Income Data
Total interest income $ 65,607 $ 69,674 $ 71,719
Total interest expense 10,270 13,425 14,696
Net interest income 55,337 56,249 57,023
Total noninterest income 81,491 42,700 32,979
Total noninterest expense 80,579 68,559 64,119
Earnings before income taxes and provisions for credit losses 56,249 30,390 25,883
Provisions for credit losses 25,921 29,565 881
Income tax expense 7,455 80 6,314
Net income $ 22,873 $ 745 $ 18,688
Net interest income (tax-equivalent basis) $ 55,977 $ 56,784 $ 57,488
Adjusted net income* $ 24,086 $ 5,296 $ 22,098
Adjusted pre-tax, pre-provision earnings* $ 57,835 $ 33,440 $ 30,495
Per Common Share
Diluted net income $ 0.70 $ 0.02 $ 0.59
Adjusted diluted net income* 0.74 0.17 0.70
Book value 25.08 24.40 23.29
Tangible book value* 19.07 18.35 17.18
Weighted average number of shares outstanding - fully diluted 32,506,417 31,734,112 31,378,018
Period-end number of shares 32,101,108 32,067,356 30,865,636
Selected Balance Sheet Data
Cash and cash equivalents $ 717,592 $ 425,094 $ 164,336
Loans held for investment (HFI) 4,827,023 4,568,038 4,289,516
Allowance for credit losses^(a)^ (113,129) (89,141) (30,138)
Loans held for sale 435,479 325,304 294,699
Investment securities, at fair value 751,767 767,575 678,457
Other real estate owned, net 15,091 17,072 15,521
Total assets 7,255,536 6,655,687 5,940,402
Customer deposits 5,937,373 5,356,569 4,812,962
Brokered and internet time deposits 15,428 20,363 29,864
Total deposits 5,952,801 5,376,932 4,842,826
Borrowings 328,662 327,822 257,299
Total shareholders' equity 805,216 782,330 718,759
Selected Ratios
Return on average:
Assets 1.30 % 0.05 % 1.30 %
Shareholders' equity 11.56 % 0.39 % 10.6 %
Tangible common equity* 15.27 % 0.52 % 14.4 %
Average shareholders' equity to average assets 11.2 % 12.0 % 12.3 %
Net interest margin (NIM) (tax-equivalent basis) 3.50 % 3.92 % 4.39 %
Efficiency ratio (GAAP) 58.9 % 69.3 % 71.2 %
Core efficiency ratio (tax-equivalent basis)* 57.5 % 65.7 % 65.9 %
Loans HFI to deposit ratio 81.1 % 85.0 % 88.6 %
Total loans to deposit ratio 88.4 % 91.0 % 94.7 %
Yield on interest-earning assets 4.14 % 4.84 % 5.52 %
Cost of interest-bearing liabilities 0.94 % 1.27 % 1.54 %
Cost of total deposits 0.65 % 0.94 % 1.14 %
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI ^(a)^ 2.34 % 1.95 % 0.70 %
Adjusted allowance for credit losses as a percentage of loans HFI* ^(a)^ 2.51 % 1.95 % 0.70 %
Net charge-offs as a percentage of average loans HFI 0.00 % 0.19 % 0.05 %
Nonperforming loans HFI as a percentage of total loans HFI 0.72 % 0.68 % 0.43 %
Nonperforming assets as a percentage of total assets 0.71 % 0.74 % 0.59 %
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets 11.1 % 11.8 % 12.1 %
Tangible common equity to tangible assets* 8.67 % 9.11 % 9.2 %
Tier 1 capital (to average assets) 9.7 % 10.3 % 10.0 %
Tier 1 capital (to risk-weighted assets) 11.9 % 11.6 % 11.0 %
Total capital (to risk-weighted assets) 13.2 % 12.5 % 11.6 %
Common equity Tier 1 (to risk-weighted assets) (CET1) 11.4 % 11.0 % 10.4 %

(a) Excludes reserve for credit losses on unfunded commitments of $6.5 million and $4.6 million recorded in accrued expenses and other liabilities for the three months ended June 30, 2020 and March 31, 2020, respectively.

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

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FB Financial Corporation

Second Quarter 2020 Results

Page 8

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted earnings Second Quarter First Quarter Second Quarter
Pre-tax net income $ 30,328 $ 825 $ 25,002
Plus merger and mortgage restructuring expenses 1,586 3,050 4,612
Plus initial provision for credit losses on acquired loans — 2,885 —
Adjusted pre-tax earnings $ 31,914 $ 6,760 $ 29,614
Income tax expense, adjusted 7,828 1,464 7,516
Adjusted earnings $ 24,086 $ 5,296 $ 22,098
Weighted average common shares outstanding - fully diluted 32,506,417 31,734,112 31,378,018
Adjusted diluted earnings per share
Diluted earnings per common share $ 0.70 $ 0.02 $ 0.59
Plus merger and mortgage restructuring expenses 0.05 0.10 0.15
Plus initial provision for credit losses on acquired loans — 0.09 —
Less tax effect 0.01 0.04 0.04
Adjusted diluted earnings per share $ 0.74 $ 0.17 $ 0.70
2020 2019
Adjusted pre-tax pre-provision earnings Second Quarter First Quarter Second Quarter
Pre-tax net income $ 30,328 $ 825 $ 25,002
Plus provisions for credit losses 25,921 29,565 881
Pre-tax pre-provision earnings 56,249 30,390 25,883
Plus merger and mortgage restructuring expenses 1,586 3,050 4,612
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,495
Weighted average common shares outstanding - fully diluted 32,506,417 31,734,112 31,378,018
Adjusted pre-tax pre-provision diluted earnings per share
Diluted earnings per common share $ 0.70 $ 0.02 $ 0.59
Plus income tax expense 0.23 — 0.20
Plus provisions for credit losses 0.80 0.93 0.03
Pre-tax pre-provision earnings per share 1.73 0.95 0.82
Plus merger and mortgage restructuring expenses 0.05 0.10 0.15
Adjusted pre-tax pre-provision earnings per share $ 1.78 $ 1.05 $ 0.97
2020 2019
Core efficiency ratio (tax-equivalent basis) Second Quarter First Quarter Second Quarter
Total noninterest expense $ 80,579 $ 68,559 $ 64,119
Less merger and mortgage restructuring expenses 1,586 3,050 4,612
Core noninterest expense $ 78,993 $ 65,509 $ 59,507
Net interest income (tax-equivalent basis) $ 55,977 $ 56,784 $ 57,488
Total noninterest income 81,491 42,700 32,979
Less gain (loss) on sales or write-downs of other <br> real estate owned and other assets 32 (277) 94
Less (loss) gain from securities, net (28) 63 52
Core noninterest income 81,487 42,914 32,833
Core revenue $ 137,464 $ 99,698 $ 90,321
Efficiency ratio (GAAP)(a) 58.9 % 69.3 % 71.2 %
Core efficiency ratio (tax-equivalent basis) 57.5 % 65.7 % 65.9 %

(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.

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FB Financial Corporation

Second Quarter 2020 Results

Page 9

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Banking segment core efficiency ratio <br> (tax equivalent) Second Quarter First Quarter Second Quarter
Core consolidated noninterest expense $ 78,993 $ 65,509 $ 59,507
Less Mortgage segment core noninterest expense 26,997 17,567 17,835
Core Banking segment noninterest expense $ 51,996 $ 47,942 41,672
Core revenue $ 137,464 $ 99,698 90,321
Less Mortgage segment total revenue 55,215 22,110 19,119
Core Banking segment total revenue $ 82,249 $ 77,588 $ 71,202
Banking segment core efficiency ratio <br> (tax-equivalent basis) 63.2 % 61.8 % 58.5 %
Mortgage segment core efficiency ratio <br> (tax equivalent)
Mortgage segment noninterest expense $ 26,997 $ 17,567 $ 18,664
Less mortgage restructuring expense — — 829
Core Mortgage segment noninterest expense $ 26,997 $ 17,567 $ 17,835
Mortgage segment total revenue $ 55,215 $ 22,110 $ 19,119
Mortgage segment core efficiency ratio <br> (tax-equivalent basis) 48.9 % 79.5 % 93.3
2020 2019
Adjusted mortgage contribution Second Quarter First Quarter Second Quarter
Mortgage segment pre-tax net contribution $ 28,218 $ 4,543 $ 455
Retail footprint:
Mortgage banking income 16,940 10,651 5,451
Mortgage banking expenses 11,542 7,175 4,172
Retail footprint pre-tax net contribution 5,398 3,476 1,279
Total adjusted mortgage banking pre-tax net contribution $ 33,616 $ 8,019 $ 1,734
Plus mortgage restructuring expense — — 829
Total adjusted mortgage banking pre-tax net contribution $ 33,616 $ 8,019 $ 2,563
Pre-tax pre-provision earnings $ 56,249 $ 30,390 $ 25,883
% total mortgage banking pre-tax pre-provision net contribution 59.8 % 26.4 % 6.70 %
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,495
% total adjusted mortgage banking pre-tax <br> pre-provision net contribution 58.1 % 24.0 % 8.40 %
2020 2019
Tangible assets and equity Second Quarter First Quarter Second Quarter
Tangible assets
Total assets $ 7,255,536 $ 6,655,687 $ 5,940,402
Less goodwill 175,441 174,859 168,486
Less intangibles, net 17,671 18,876 19,945
Tangible assets $ 7,062,424 $ 6,461,952 $ 5,751,971
Tangible common equity
Total shareholders' equity $ 805,216 $ 782,330 $ 718,759
Less goodwill 175,441 174,859 168,486
Less intangibles, net 17,671 18,876 19,945
Tangible common equity $ 612,104 $ 588,595 $ 530,328
Common shares outstanding 32,101,108 32,067,356 30,865,636
Book value per common share $ 25.08 $ 24.40 $ 23.29
Tangible book value per common share $ 19.07 $ 18.35 $ 17.18
Total shareholders' equity to total assets 11.1 % 11.8 % 12.1 %
Tangible common equity to tangible assets 8.67 % 9.11 % 9.22 %

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FB Financial Corporation

Second Quarter 2020 Results

Page 10

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Return on average tangible common equity Second Quarter First Quarter Second Quarter
Total average shareholders' equity $ 795,705 $ 768,929 $ 708,557
Less average goodwill 175,150 171,532 167,781
Less average intangibles, net 18,209 18,152 20,214
Average tangible common equity $ 602,346 $ 579,245 $ 520,562
Net income $ 22,873 $ 745 $ 18,688
Return on average tangible common equity 15.3 % 0.52 % 14.4 %
2020 2019
Adjusted return on average tangible common <br> equity Second Quarter First Quarter Second Quarter
Average tangible common equity $ 602,346 $ 579,245 $ 520,562
Adjusted net income 24,086 5,296 22,098
Adjusted return on average tangible common <br> equity 16.1 % 3.68 % 17.0 %
2020 2019
Adjusted pre-tax pre-provision return on <br> average tangible common equity Second Quarter First Quarter Second Quarter
Average tangible common equity $ 602,346 $ 579,245 $ 520,562
Adjusted pre-tax pre-provision earnings 57,835 33,440 30,495
Adjusted pre-tax pre-provision return on <br> average tangible common equity 38.6 % 23.2 % 23.5 %
2020 2019
Adjusted return on average assets and <br> equity Second Quarter First Quarter Second Quarter
Net income $ 22,873 $ 745 $ 18,688
Average assets 7,074,612 6,409,417 5,771,371
Average equity 795,705 768,929 708,557
Return on average assets 1.30 % 0.05 % 1.30 %
Return on average equity 11.6 % 0.39 % 10.6 %
Adjusted net income $ 24,086 $ 5,296 $ 22,098
Adjusted return on average assets 1.37 % 0.33 % 1.54 %
Adjusted return on average equity 12.2 % 2.77 % 12.5 %
2020 2019
Adjusted pre-tax pre-provision return on <br> average assets and equity Second Quarter First Quarter Second Quarter
Net income $ 22,873 $ 745 $ 18,688
Average assets 7,074,612 6,409,417 5,771,371
Average equity 795,705 768,929 708,557
Return on average assets 1.30 % 0.05 % 1.30 %
Return on average equity 11.6 % 0.39 % 10.6 %
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,495
Adjusted pre-tax pre-provision return on <br> average assets 3.29 % 2.10 % 2.12 %
Adjusted pre-tax pre-provision return on <br> average equity 29.2 % 17.5 % 17.3 %

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FB Financial Corporation

Second Quarter 2020 Results

Page 11

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted allowance for credit losses to loans held for investment Second Quarter First Quarter Second Quarter
Allowance for credit losses $ 113,129 $ 89,141 $ 30,138
Less allowance for credit losses attributed to PPP loans 51 — —
Adjusted allowance for credit losses $ 113,078 $ 89,141 $ 30,138
Loans held for investment $ 4,827,023 $ 4,568,038 $ 4,289,516
Less PPP loans 314,678 — —
Adjusted loans held for investment $ 4,512,345 $ 4,568,038 $ 4,289,516
Allowance for credit losses to loans held for investment 2.34 % 1.95 % 0.70 %
Adjusted allowance for credit losses to loans held for investment 2.51 % 1.95 % 0.70 %

-END-

Document

logoa071.jpg

Second Quarter 2020

Financial Supplement

TABLE OF CONTENTS

Page
Financial Summary and Key Metrics 4
Consolidated Statements of Income 5
Consolidated Balance Sheets 7
Average Balance, Average Yield Earned and Average Rate Paid 8
Loans and Deposits by Market 11
Segment Data 12
Loan Portfolio and Asset Quality 13
Preliminary Capital Ratios 15
Investment Portfolio 16
Non-GAAP Reconciliation 17

Use of non-GAAP Financial Measures

This Supplemental Financial Information 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 limitation, adjusted net income, adjusted diluted earnings per share, adjusted pre-tax pre-provision net income, adjusted pre-tax pre-provision diluted earnings per share, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted pre-tax pre-provision mortgage contribution, adjusted return on average assets and equity, adjusted pre-tax pre-provision return on average assets and equity, pro forma return on average assets and equity, adjusted pro forma return on average assets and equity, core total revenue, adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses as a percentage of loans held for investment, which excludes the impact of PPP loans. Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted measures. The corresponding Earnings Release and Earnings Release Presentation also present tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, pro forma return on average tangible common equity, adjusted return on average tangible common equity, pro forma adjusted return on average tangible common equity, and adjusted pre-tax pre-provision return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.

The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures.  The Company includes tables under the Non-GAAP reconciliation section of this document to provide a reconciliation of these measures to the most directly comparable GAAP financial measures.

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Statement of Income Data
Total interest income $ 65,607 $ 69,674 $ 71,643 $ 73,242 $ 71,719
Total interest expense 10,270 13,425 13,951 14,937 14,696
Net interest income 55,337 56,249 57,692 58,305 57,023
Total noninterest income 81,491 42,700 35,234 38,145 32,979
Total noninterest expense 80,579 68,559 62,686 62,935 64,119
Earnings before income taxes and provisions for credit losses 56,249 30,390 30,240 33,515 25,883
Provisions for credit losses 25,921 29,565 2,950 1,831 881
Income tax expense 7,455 80 5,718 7,718 6,314
Net income $ 22,873 $ 745 $ 21,572 $ 23,966 $ 18,688
Net interest income (tax-equivalent basis) $ 55,977 $ 56,784 $ 58,212 $ 58,769 $ 57,488
Adjusted net income* $ 24,086 $ 5,296 $ 22,079 $ 24,267 $ 22,098
Adjusted pre-tax, pre-provision earnings* $ 57,835 $ 33,440 $ 30,926 $ 33,922 $ 30,495
Per Common Share
Diluted net income $ 0.70 $ 0.02 $ 0.68 $ 0.76 $ 0.59
Adjusted diluted net income* 0.74 0.17 0.70 0.77 0.70
Book value 25.08 24.40 24.56 24.08 23.29
Tangible book value* 19.07 18.35 18.55 18.03 17.18
Weighted average number of shares outstanding - fully diluted 32,506,417 31,734,112 31,470,565 31,425,573 31,378,018
Period-end number of shares 32,101,108 32,067,356 31,034,315 30,927,664 30,865,636
Selected Balance Sheet Data
Cash and cash equivalents $ 717,592 $ 425,094 $ 232,681 $ 242,997 $ 164,336
Loans held for investment (HFI) 4,827,023 4,568,038 4,409,642 4,345,344 4,289,516
Allowance for credit losses ^(a)^ (113,129) (89,141) (31,139) (31,464) (30,138)
Loans held for sale 435,479 325,304 262,518 305,493 294,699
Investment securities, at fair value 751,767 767,575 691,676 671,781 678,457
Other real estate owned, net 15,091 17,072 18,939 16,076 15,521
Total assets 7,255,536 6,655,687 6,124,921 6,088,895 5,940,402
Customer deposits 5,937,373 5,356,569 4,914,587 4,896,327 4,812,962
Brokered and internet time deposits 15,428 20,363 20,351 25,436 29,864
Total deposits 5,952,801 5,376,932 4,934,938 4,921,763 4,842,826
Borrowings 328,662 327,822 304,675 307,129 257,299
Total shareholders' equity 805,216 782,330 762,329 744,835 718,759
Selected Ratios
Return on average:
Assets 1.30 % 0.05 % 1.39 % 1.59 % 1.30 %
Shareholders' equity 11.6 % 0.39 % 11.2 % 13.0 % 10.6 %
Tangible common equity* 15.3 % 0.52 % 14.9 % 17.5 % 14.4 %
Average shareholders' equity to average assets 11.2 % 12.0 % 12.4 % 12.2 % 12.3 %
Net interest margin (NIM) (tax-equivalent basis) 3.50 % 3.92 % 4.12 % 4.28 % 4.39 %
Efficiency ratio (GAAP) 58.9 % 69.3 % 67.5 % 65.3 % 71.2 %
Core efficiency ratio (tax-equivalent basis)* 57.5 % 65.7 % 66.5 % 64.5 % 65.9 %
Loans HFI to deposit ratio 81.1 % 85.0 % 89.4 % 88.3 % 88.6 %
Total loans to deposit ratio 88.4 % 91.0 % 94.7 % 94.5 % 94.7 %
Yield on interest-earning assets 4.14 % 4.84 % 5.11 % 5.37 % 5.52 %
Cost of interest-bearing liabilities 0.94 % 1.27 % 1.38 % 1.50 % 1.54 %
Cost of total deposits 0.65 % 0.94 % 1.02 % 1.11 % 1.14 %
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI^(a)^ 2.34 % 1.95 % 0.71 % 0.72 % 0.70 %
Adjusted allowance for credit losses as a percentage of loans HFI *^(a)^ 2.51 % 1.95 % 0.71 % 0.72 % 0.70 %
Net charge-offs as a percentage of average loans HFI 0.00 % 0.19 % 0.30 % 0.05 % 0.05 %
Nonperforming loans HFI as a percentage of total loans HFI 0.72 % 0.68 % 0.60 % 0.47 % 0.43 %
Nonperforming assets as a percentage of total assets 0.71 % 0.74 % 0.77 % 0.62 % 0.59 %
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets 11.1 % 11.8 % 12.4 % 12.2 % 12.1 %
Tangible common equity to tangible assets* 8.67 % 9.11 % 9.69 % 9.45 % 9.22 %
Tier 1 capital (to average assets) 9.7 % 10.3 % 10.1 % 10.1 % 10.0 %
Tier 1 capital (to risk-weighted assets) 11.9 % 11.6 % 11.6 % 11.3 % 11.0 %
Total capital (to risk-weighted assets) 13.2 % 12.5 % 12.2 % 12.0 % 11.6 %
Common equity Tier 1 (to risk-weighted assets) (CET1) 11.4 % 11.0 % 11.1 % 10.8 % 10.4 %

(a) Excludes reserve for credit losses on unfunded commitments of $6.5 million and $4.6 million recorded in accrued expenses and other liabilities at June 30, 2020 and March 31, 2020, respectively.

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation 4
Consolidated Statements of Income
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except Share Data and %)
Q2 2020 Q2 2020
vs. vs.
2020 2019 Q1 2020 Q2 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Percent variance Percent variance
Interest income:
Interest and fees on loans $ 61,092 $ 63,754 $ 66,095 $ 67,639 $ 66,276 (4.18) % (7.82) %
Interest on securities
Taxable 2,619 3,056 2,969 3,137 3,548 (14.3) % (26.2) %
Tax-exempt 1,590 1,433 1,327 1,174 1,160 11.0 % 37.1 %
Other 306 1,431 1,252 1,292 735 (78.6) % (58.4) %
Total interest income 65,607 69,674 71,643 73,242 71,719 (5.84) % (8.52) %
Interest expense:
Deposits 9,309 12,168 12,703 13,522 13,488 (23.5) % (31.0) %
Borrowings 961 1,257 1,248 1,415 1,208 (23.5) % (20.4) %
Total interest expense 10,270 13,425 13,951 14,937 14,696 (23.5) % (30.1) %
Net interest income 55,337 56,249 57,692 58,305 57,023 (1.62) % (2.96) %
Provision for credit losses 24,039 27,964 2,950 1,831 881 (14.0) % 2,628.6 %
Provision for credit losses on unfunded commitments 1,882 1,601 — — — 17.6 % 100.0 %
Net interest income after provisions for <br> credit losses 29,416 26,684 54,742 56,474 56,142 10.2 % (47.6) %
Noninterest income:
Mortgage banking income 72,168 32,745 26,176 29,193 24,526 120.4 % 194.3 %
Service charges on deposit accounts 1,858 2,563 2,657 2,416 2,327 (27.5) % (20.2) %
ATM and interchange fees 3,606 3,134 3,315 3,188 3,002 15.1 % 20.1 %
Investment services and trust income 1,368 1,697 1,326 1,336 1,287 (19.4) % 6.29 %
(Loss) gain from securities, net (28) 63 (18) (20) 52 (144.4) % (153.8) %
Gain (loss) on sales or write-downs of <br> other real estate owned 86 51 433 (126) 277 68.6 % (69.0) %
(Loss) gain from other assets (54) (328) (156) 44 (183) (83.5) % (70.5) %
Other income 2,487 2,775 1,501 2,114 1,691 (10.4) % 47.1 %
Total noninterest income 81,491 42,700 35,234 38,145 32,979 90.8 % 147.1 %
Total revenue 136,828 98,949 92,926 96,450 90,002 38.3 % 52.0 %
Noninterest expenses:
Salaries, commissions and employee benefits 55,258 43,622 39,589 40,880 37,918 26.7 % 45.7 %
Occupancy and equipment expense 4,096 4,178 3,534 4,058 4,319 (1.96) % (5.16) %
Legal and professional fees 1,952 1,558 2,074 1,993 1,694 25.3 % 15.2 %
Data processing 2,782 2,453 2,746 2,816 2,643 13.4 % 5.26 %
Merger costs 1,586 3,050 686 295 3,783 (48.0) % (58.1) %
Amortization of core deposits and other intangibles 1,205 1,204 1,159 1,197 1,254 0.08 % (3.91) %
Advertising 2,591 2,389 2,072 1,895 2,434 8.46 % 6.45 %
Mortgage restructuring expense — — — 112 829 — % (100.0) %
Other expense 11,109 10,105 10,826 9,689 9,245 9.9 % 20.2 %
Total noninterest expense 80,579 68,559 62,686 62,935 64,119 17.5 % 25.7 %
Income before income taxes 30,328 825 27,290 31,684 25,002 3576.1 % 21.3 %
Income tax expense 7,455 80 5,718 7,718 6,314 9218.8 % 18.1 %
Net income $ 22,873 $ 745 $ 21,572 $ 23,966 $ 18,688 2970.2 % 22.4 %
Earnings available to common shareholders $ 22,873 $ 745 $ 21,458 $ 23,838 $ 18,588
Weighted average common shares outstanding:
Basic 32,094,274 31,257,739 30,934,092 30,899,583 30,859,596 2.68 % 4.00 %
Fully diluted 32,506,417 31,734,112 31,470,565 31,425,573 31,378,018 2.43 % 3.60 %
Earnings per common share:
Basic $ 0.71 $ 0.02 $ 0.69 $ 0.77 $ 0.60 3450.0 % 17.9 %
Fully diluted 0.70 0.02 0.68 0.76 0.59 3400.0 % 18.2 %
Fully diluted - adjusted* 0.74 0.17 0.70 0.77 0.70 343.9 % 5.50 %

*These measures are considered non-GAAP financial measures. See “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation 5
Consolidated Statements of Income
--- --- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except Share Data and %)
YTD 2020
For the Six Months Ended vs.
June 30, YTD 2019
2020 2019 Percent variance
Interest income:
Interest and fees on loans $ 124,846 $ 126,724 (1.48) %
Interest on securities
Taxable 5,675 7,117 (20.3) %
Tax-exempt 3,023 2,304 31.2 %
Other 1,737 1,507 15.3 %
Total interest income 135,281 137,652 (1.72) %
Interest expense:
Deposits 21,477 25,343 (15.3) %
Borrowings 2,218 2,270 (2.29) %
Total interest expense 23,695 27,613 (14.2) %
Net interest income 111,586 110,039 1.41 %
Provision for credit losses 52,003 2,272 2188.9 %
Provision for credit losses on unfunded commitments 3,483 — (100.0) %
Net interest income after provision for credit losses 56,100 107,767 (47.9) %
Noninterest income:
Mortgage banking income 104,913 45,547 130.3 %
Service charges on deposit accounts 4,421 4,406 0.34 %
ATM and interchange fees 6,740 5,658 19.1 %
Investment services and trust income 3,065 2,582 18.7 %
Gain (loss) from securities, net 35 95 (63.2) %
Gain (loss) on sales or write-downs of other real estate <br> owned 137 238 (42.4) %
(Loss) gain on other assets (382) 8 (4875.0) %
Other income 5,262 3,484 51.0 %
Total noninterest income 124,191 62,018 100.2 %
Total revenue 235,777 172,057 37.0 %
Noninterest expenses:
Salaries, commissions and employee benefits 98,880 71,615 38.1 %
Occupancy and equipment expense 8,274 8,049 2.80 %
Legal and professional fees 3,510 3,419 2.66 %
Data processing 5,235 5,027 4.14 %
Merger costs 4,636 4,404 5.27 %
Amortization of core deposit and other intangibles 2,408 1,983 21.4 %
Advertising 4,980 5,171 (3.69) %
Mortgage restructuring expense — 1,883 (100.0) %
Other expense 21,215 17,669 20.07 %
Total noninterest expense 149,138 119,220 25.1 %
Income before income taxes 31,153 50,565 (38.4) %
Income tax expense 7,535 12,289 (38.7) %
Net income $ 23,618 $ 38,276 (38.3) %
Earnings available to common shareholders $ 23,618 $ 38,071
Weighted average common shares outstanding:
Basic 31,676,004 30,823,341 2.77 %
Fully diluted 32,109,194 31,348,966 2.43 %
Earnings per common share:
Basic $ 0.75 $ 1.24 (39.5) %
Fully diluted 0.74 1.21 (39.1) % FB Financial Corporation 6
--- ---
Consolidated Balance Sheets
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except %)
Annualized
Q2 2020 Q2 2020
vs. vs.
2020 2019 Q1 2020 Q2 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Percent variance Percent variance
ASSETS
Cash and due from banks $ 33,710 $ 26,841 $ 48,806 $ 31,594 $ 64,458 102.9 % (47.7) %
Federal funds sold 34,638 59,199 131,119 50,532 9,781 (166.9) % 254.1 %
Interest-bearing deposits in financial institutions 649,244 339,054 52,756 160,871 90,097 368.0 % 620.6 %
Cash and cash equivalents 717,592 425,094 232,681 242,997 164,336 276.7 % 336.7 %
Investments:
Available-for-sale debt securities, at fair value 747,438 764,217 688,381 668,531 675,215 (8.83) % 10.7 %
Equity securities, at fair value 4,329 3,358 3,295 3,250 3,242 116.3 % 33.5 %
Federal Home Loan Bank stock, at cost 17,621 16,445 15,976 15,976 15,976 28.8 % 10.3 %
Loans held for sale, at fair value 435,479 325,304 262,518 305,493 294,699 136.2 % 47.8 %
Loans held for investment 4,827,023 4,568,038 4,409,642 4,345,344 4,289,516 22.8 % 12.5 %
Less: allowance for credit losses 113,129 89,141 31,139 31,464 30,138 108.2 % 275.4 %
Net loans 4,713,894 4,478,897 4,378,503 4,313,880 4,259,378 21.1 % 10.7 %
Premises and equipment, net 100,638 100,406 90,131 91,815 92,407 0.93 % 8.91 %
Other real estate owned, net 15,091 17,072 18,939 16,076 15,521 (46.7) % (2.8) %
Operating lease right-of-use assets 30,447 31,628 32,539 34,812 35,872 (15.0) % (15.1) %
Interest receivable 26,587 19,644 17,083 17,729 17,952 142.2 % 48.1 %
Mortgage servicing rights, at fair value 60,508 62,581 75,521 66,156 66,380 (13.3) % (8.85) %
Goodwill 175,441 174,859 169,051 168,486 168,486 1.34 % 4.13 %
Core deposit and other intangibles, net 17,671 18,876 17,589 18,748 19,945 (25.7) % (11.4) %
Other assets 192,800 217,306 122,714 124,946 110,993 (45.4) % 73.7 %
Total assets $ 7,255,536 $ 6,655,687 $ 6,124,921 $ 6,088,895 $ 5,940,402 36.2 % 22.1 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing $ 1,775,323 $ 1,335,799 $ 1,208,175 $ 1,214,373 $ 1,111,921 132.3 % 59.7 %
Interest-bearing checking 1,236,094 1,139,462 1,014,875 1,029,430 984,847 34.1 % 25.5 %
Money market and savings 1,749,889 1,667,374 1,520,035 1,481,697 1,468,867 19.9 % 19.1 %
Customer time deposits 1,176,067 1,213,934 1,171,502 1,170,827 1,247,327 (12.5) % (5.71) %
Brokered and internet time deposits 15,428 20,363 20,351 25,436 29,864 (97.5) % (48.3) %
Total deposits 5,952,801 5,376,932 4,934,938 4,921,763 4,842,826 43.1 % 22.9 %
Borrowings 328,662 327,822 304,675 307,129 257,299 1.03 % 27.7 %
Operating lease liabilities 33,803 34,572 35,525 37,760 38,722 (8.95) % (12.7) %
Accrued expenses and other liabilities 135,054 134,031 87,454 77,408 82,796 3.07 % 63.1 %
Total liabilities 6,450,320 5,873,357 5,362,592 5,344,060 5,221,643 39.5 % 23.5 %
Shareholders' equity:
Common stock, $1 par value 32,101 32,067 31,034 30,928 30,866 0.43 % 4.00 %
Additional paid-in capital 462,930 460,938 425,633 426,816 425,644 1.74 % 8.76 %
Retained earnings 286,296 266,385 293,524 274,491 253,080 30.1 % 13.1 %
Accumulated other comprehensive income, net 23,889 22,940 12,138 12,600 9,169 16.6 % 160.5 %
Total shareholders' equity 805,216 782,330 762,329 744,835 718,759 11.8 % 12.0 %
Total liabilities and shareholders' equity $ 7,255,536 $ 6,655,687 $ 6,124,921 $ 6,088,895 $ 5,940,402 36.2 % 22.1 %
FB Financial Corporation 7
--- ---
Average Balance, Average Yield Earned and Average Rate Paid
--- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
Three Months Ended Three Months Ended
June 30, 2020 March 31, 2020
Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate
Interest-earning assets:
Loans HFI^(a)(d)^ $ 4,775,229 $ 58,201 4.90 % $ 4,495,069 $ 61,817 5.53 %
Loans held for sale^(b)^ 358,108 2,947 3.31 % 214,150 1,990 3.74 %
Securities:^(b)^
Taxable 494,987 2,619 2.13 % 512,774 3,056 2.40 %
Tax-exempt^(a)^ 236,161 2,174 3.70 % 197,961 1,915 3.89 %
Total securities^(a)^ 731,148 4,793 2.64 % 710,735 4,971 2.81 %
Federal funds sold 50,402 10 0.08 % 107,489 245 0.92 %
Interest-bearing deposits with other financial institutions 509,283 194 0.15 % 287,499 1,082 1.51 %
FHLB stock 16,871 102 2.43 % 16,226 104 2.58 %
Total interest-earning assets^(a)^ 6,441,041 66,247 4.14 % 5,831,168 70,209 4.84 %
Noninterest-earning assets:
Cash and due from banks 58,304 64,438
Allowance for credit losses (91,196) (63,034)
Other assets 666,463 576,845
Total noninterest-earning assets 633,571 578,249
Total assets $ 7,074,612 $ 6,409,417
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 1,161,593 $ 1,717 0.59 % $ 1,085,849 $ 2,179 0.81 %
Money market 1,422,344 2,179 0.62 % 1,383,229 3,971 1.15 %
Savings deposits 254,357 41 0.06 % 233,807 79 0.14 %
Customer time deposits 1,197,960 5,292 1.78 % 1,205,385 5,843 1.95 %
Brokered and internet time deposits 16,844 80 1.91 % 20,355 96 1.90 %
Time deposits 1,214,804 5,372 1.78 % 1,225,740 5,939 1.95 %
Total interest-bearing deposits 4,053,098 9,309 0.92 % 3,928,625 12,168 1.25 %
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and<br> federal funds purchased 32,451 50 0.62 % 26,961 57 0.85 %
Federal Home Loan Bank advances 250,000 405 0.65 % 250,000 714 1.15 %
Subordinated debt 30,930 399 5.19 % 30,930 421 5.47 %
Other borrowings 15,000 107 2.87 % 7,747 65 3.37 %
Total other interest-bearing liabilities 328,381 961 1.18 % 315,638 1,257 1.60 %
Total interest-bearing liabilities 4,381,479 10,270 0.94 % 4,244,263 13,425 1.27 %
Noninterest-bearing liabilities:
Demand deposits 1,728,343 1,284,331
Other liabilities 169,085 111,894
Total noninterest-bearing liabilities 1,897,428 1,396,225
Total liabilities 6,278,907 5,640,488
Shareholders' equity 795,705 768,929
Total liabilities and shareholders' equity $ 7,074,612 $ 6,409,417
Net interest income^(a)^ $ 55,977 $ 56,784
Interest rate spread^(a)^ 3.20 % 3.57 %
Net interest margin^(a)^ 3.50 % 3.92 %
Cost of total deposits 0.65 % 0.94 %
Average interest-earning assets to average interest-bearing liabilities 147.0 % 137.4 %
Tax-equivalent adjustment $ 640 $ 535
Loans HFI yield components:
Contractual interest rate^(a)(c)^ $ 54,233 4.57 % $ 57,382 5.14 %
Origination and other loan fee income^(c)^ 2,823 0.24 % 2,589 0.23 %
Accretion on purchased loans 976 0.08 % 1,578 0.14 %
Nonaccrual interest 169 0.01 % 268 0.02 %
Total loans HFI yield $ 58,201 4.90 % $ 61,817 5.53 %

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

(b) Excludes the average balance for unrealized gains (losses) prospectively from Q1 2020 for loans held for sale and investments carried at fair value.

(c) Includes $596 of loan contractual interest and $624 of loan fees related to PPP loans for the three months ended June 30, 2020.

(d) Includes $234,304 of average PPP loan balances in Q2 2020.

FB Financial Corporation 8
Average Balance, Average Yield Earned and Average Rate Paid (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
Three Months Ended Three Months Ended Three Months Ended
December 31, 2019 September 30, 2019 June 30, 2019
Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate
Interest-earning assets:
Loans HFI^(a)^ $ 4,384,180 $ 64,053 5.80 % $ 4,306,725 $ 65,241 6.01 % $ 4,177,701 $ 63,262 6.07 %
Loans held for sale 257,833 2,095 3.22 % 262,896 2,448 3.69 % 281,252 3,070 4.38 %
Securities:
Taxable 505,299 2,969 2.33 % 508,924 3,137 2.45 % 532,500 3,548 2.67 %
Tax-exempt^(a)^ 181,922 1,794 3.91 % 153,633 1,588 4.10 % 146,282 1,569 4.30 %
Total securities^(a)^ 687,221 4,763 2.75 % 662,557 4,725 2.83 % 678,782 5,117 3.02 %
Federal funds sold 69,749 301 1.71 % 24,388 166 2.70 % 12,219 88 2.89 %
Interest-bearing deposits with other<br> financial institutions 185,319 790 1.69 % 176,708 950 2.13 % 81,540 465 2.29 %
FHLB stock 15,976 161 4.00 % 15,976 176 4.37 % 15,165 182 4.81 %
Total interest-earning assets^(a)^ 5,600,278 72,163 5.11 % 5,449,250 73,706 5.37 % 5,246,659 72,184 5.52 %
Noninterest-earning assets:
Cash and due from banks 49,318 51,433 54,659
Allowance for credit losses (31,631) (30,484) (30,092)
Other assets 539,966 518,373 500,145
Total noninterest-earning assets 557,653 539,322 524,712
Total assets $ 6,157,931 $ 5,988,572 $ 5,771,371
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 981,572 $ 2,068 0.84 % $ 971,686 $ 2,338 0.95 % $ 968,081 $ 2,295 0.95 %
Money market 1,320,268 4,309 1.29 % 1,260,555 4,607 1.45 % 1,221,450 4,508 1.48 %
Savings deposits 210,550 79 0.15 % 207,221 78 0.15 % 203,602 76 0.15 %
Customer time deposits 1,175,467 6,133 2.07 % 1,184,737 6,362 2.13 % 1,185,451 6,299 2.13 %
Brokered and internet time deposits 23,219 114 1.95 % 28,273 137 1.92 % 56,242 310 2.21 %
Time deposits 1,198,686 6,247 2.07 % 1,213,010 6,499 2.13 % 1,241,693 6,609 2.13 %
Total interest-bearing deposits 3,711,076 12,703 1.36 % 3,652,472 13,522 1.47 % 3,634,826 13,488 1.49 %
Other interest-bearing liabilities:
Securities sold under agreements to <br> repurchase and federal funds <br> purchased 27,610 59 0.85 % 30,585 80 1.04 % 31,905 117 1.47 %
Federal Home Loan Bank advances 250,000 788 1.25 % 248,315 918 1.47 % 131,726 664 2.02 %
Subordinated debt 30,930 401 5.14 % 30,930 417 5.35 % 30,930 427 5.54 %
Total other interest-bearing liabilities 308,540 1,248 1.60 % 309,830 1,415 1.81 % 194,561 1,208 2.49 %
Total interest-bearing liabilities 4,019,616 13,951 1.38 % 3,962,302 14,937 1.50 % 3,829,387 14,696 1.54 %
Noninterest-bearing liabilities:
Demand deposits 1,253,311 1,180,685 1,128,311
Other liabilities 123,055 113,884 105,116
Total noninterest-bearing liabilities 1,376,366 1,294,569 1,233,427
Total liabilities 5,395,982 5,256,871 5,062,814
Shareholders' equity 761,949 731,701 708,557
Total liabilities and shareholders' equity $ 6,157,931 $ 5,988,572 $ 5,771,371
Net interest income^(a)^ $ 58,212 $ 58,769 $ 57,488
Interest rate spread^(a)^ 3.74 % 3.87 % 3.98 %
Net interest margin^(a)^ 4.12 % 4.28 % 4.39 %
Cost of total deposits 1.02 % 1.11 % 1.14 %
Average interest-earning assets to<br> average interest-bearing liabilities 139.3 % 137.5 % 137.0 %
Tax-equivalent adjustment $ 520 $ 464 $ 465
Loans HFI yield components:
Contractual interest rate^(a)^ $ 58,219 5.27 % $ 59,645 5.50 % $ 58,028 5.57 %
Origination and other loan fee income 2,863 0.26 % 3,293 0.30 % 2,981 0.29 %
Accretion on purchased loans 2,526 0.23 % 2,102 0.19 % 2,097 0.20 %
Nonaccrual interest 439 0.04 % 201 0.02 % 156 0.01 %
Syndication fee income 6 — % — — % — — %
Total loans HFI yield $ 64,053 5.80 % $ 65,241 6.01 % $ 63,262 6.07 %

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

FB Financial Corporation 9
Average Balance, Average Yield Earned and Average Rate Paid (continued)
--- --- --- --- --- --- --- --- --- --- --- --- ---
For the Six Months Ended
(Unaudited)
(In Thousands, Except %)
June 30, 2020 June 30, 2019
Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate
Interest-earning assets:
Loans HFI^(a)(d)^ $ 4,631,577 $ 120,018 5.21 % $ 3,950,483 $ 121,399 6.20 %
Loans held for sale^(b)^ 286,129 4,937 3.47 % 248,919 5,423 4.39 %
Securities:^(b)^
Taxable 503,493 5,675 2.27 % 525,541 7,117 2.73 %
Tax-exempt^(a)^ 216,496 4,089 3.80 % 142,627 3,116 4.41 %
Total securities^(a)^ 719,989 9,764 2.73 % 668,168 10,233 3.09 %
Federal funds sold 78,785 255 0.65 % 15,289 211 2.78 %
Interest-bearing deposits with other financial <br> institutions 398,330 1,276 0.64 % 78,433 911 2.34 %
FHLB stock 16,539 206 2.50 % 14,303 385 5.43 %
Total interest-earning assets^(a)^ 6,131,349 136,456 4.48 % 4,975,595 138,562 5.62 %
Noninterest-earning assets:
Cash and due from banks 61,303 52,451
Allowance for loan losses (77,128) (29,816)
Other assets 622,499 476,265
Total noninterest-earning assets 606,674 498,900
Total assets $ 6,738,023 $ 5,474,495
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 1,116,633 $ 3,896 0.70 % $ 923,372 $ 4,349 0.95 %
Money market 1,400,394 6,150 0.88 % 1,147,720 8,464 1.49 %
Savings deposits 236,475 120 0.10 % 190,029 144 0.15 %
Customer time deposits 1,200,080 11,135 1.87 % 1,120,897 11,608 2.09 %
Brokered and internet time deposits 18,600 176 1.90 % 73,907 778 2.12 %
Time deposits 1,218,680 11,311 1.87 % 1,194,804 12,386 2.09 %
Total interest-bearing deposits 3,972,182 21,477 1.09 % 3,455,925 25,343 1.48 %
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and <br> federal funds purchased 29,641 107 0.73 % 23,658 152 1.30 %
Federal Home Loan Bank advances 250,000 1,119 0.90 % 124,839 1,298 2.10 %
Subordinated debt 30,930 820 5.33 % 30,930 820 5.35 %
Other borrowings 11,374 172 3.04 % — — — %
Total other interest-bearing liabilities 321,945 2,218 1.39 % 179,427 2,270 2.55 %
Total interest-bearing liabilities 4,294,127 23,695 1.11 % 3,635,352 27,613 1.53 %
Noninterest-bearing liabilities:
Demand deposits 1,520,954 1,042,211
Other liabilities 140,467 100,311
Total noninterest-bearing liabilities 1,661,421 1,142,522
Total liabilities 5,955,548 4,777,874
Shareholders' equity 782,475 696,621
Total liabilities and shareholders' equity $ 6,738,023 $ 5,474,495
Net interest income^(a)^ $ 112,761 $ 110,949
Interest rate spread^(a)^ 3.37 % 4.09 %
Net interest margin^(a)^ 3.70 % 4.50 %
Cost of total deposits 0.79 % 1.14 %
Average interest-earning assets to average interest- <br> bearing liabilities 142.8 % 136.9 %
Tax equivalent adjustment $ 1,175 $ 910
Loans HFI yield components:
Contractual interest rate^(a)(c)^ $ 111,615 4.85 % $ 110,205 5.63 %
Origination and other loan fee income^(c)^ 5,412 0.23 % 6,821 0.35 %
Accretion on purchased loans 2,554 0.11 % 3,928 0.20 %
Nonaccrual interest 437 0.02 % 245 0.01 %
Syndication fee income — — % 200 0.01 %
Total loans HFI yield $ 120,018 5.21 % $ 121,399 6.20 %

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

(b) Excludes the average balance for unrealized gains (losses) prospectively from Q1 2020 for loans held for sale and investments carried at fair value.

(c) Includes $596 of loan contractual interest and $624 of loan fees related to PPP loans for the six months ended June 30, 2020.

(d) Includes $117,152 of average PPP loan balances during the six months ended June 30, 2020.

FB Financial Corporation 10
Loans and Deposits by Market
--- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands)
2020 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Loans by market
Metropolitan^(a)^ $ 3,387,279 $ 3,217,598 $ 3,061,183 $ 3,011,118 $ 2,970,794
Community 875,347 820,180 817,380 802,923 803,306
Specialty lending and other 564,397 530,260 531,079 531,303 515,416
Total $ 4,827,023 $ 4,568,038 $ 4,409,642 $ 4,345,344 $ 4,289,516
Deposits by market
Metropolitan^(a)^ $ 3,651,146 $ 3,272,740 $ 2,963,524 $ 2,869,049 $ 2,794,977
Community 1,915,996 1,731,050 1,642,949 1,620,153 1,612,885
Mortgage and other^(b)^ 385,659 373,142 328,465 432,561 434,964
Total $ 5,952,801 $ 5,376,932 $ 4,934,938 $ 4,921,763 $ 4,842,826

(a) Includes loans and deposits acquired from Farmers National Bank of Scottsville.

(b) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale/other deposits.

FB Financial Corporation 11
Segment Data
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2020 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Banking segment
Net interest income $ 55,350 $ 56,233 $ 57,776 $ 58,350 $ 56,979
Provisions for credit losses 25,921 29,565 2,950 1,831 881
Mortgage banking income retail footprint 16,940 10,651 9,899 10,693 5,451
Other noninterest income 9,323 9,955 9,058 8,952 8,453
Other noninterest mortgage banking expenses 11,542 7,175 8,126 8,087 4,172
Merger expense 1,586 3,050 686 295 3,783
Other noninterest expense 40,454 40,767 38,918 38,755 37,500
Pre-tax income (loss) after allocations $ 2,110 $ (3,718) $ 26,053 $ 29,027 $ 24,547
Total assets $ 6,751,881 $ 6,211,640 $ 5,795,888 $ 5,730,492 $ 5,552,893
Intracompany funding income included in net interest income 3,335 2,375 2,460 2,875 3,290
Core efficiency ratio* 63.2 % 61.8 % 61.1 % 59.6 % 58.5 %
Mortgage segment
Net interest income $ (13) $ 16 $ (84) $ (45) $ 44
Noninterest income 55,228 22,094 16,277 18,500 19,075
Mortgage restructuring expense — — — 112 829
Noninterest expense 26,997 17,567 14,956 15,686 17,835
Direct contribution $ 28,218 $ 4,543 $ 1,237 $ 2,657 $ 455
Total assets $ 503,655 $ 444,047 $ 329,033 $ 358,403 $ 387,509
Intracompany funding expense included in net interest income 3,335 2,375 2,460 2,875 3,290
Core efficiency ratio* 48.9 % 79.5 % 92.4 % 85.0 % 93.3 %
Interest rate lock commitments volume during the period
Consumer direct $ 1,480,878 $ 1,314,625 $ 679,096 $ 973,142 $ 805,970
Retail 758,228 779,155 402,490 503,861 407,007
Wholesale — — — 159,263 607,373
Total $ 2,239,106 $ 2,093,780 $ 1,081,586 $ 1,636,266 $ 1,820,350
Interest rate lock commitments pipeline (period end)
Consumer direct $ 848,732 $ 653,593 $ 348,389 $ 519,698 $ 397,150
Retail 357,200 430,940 104,809 159,826 135,655
Wholesale — — — — 75,925
Total $ 1,205,932 $ 1,084,533 $ 453,198 $ 679,524 $ 608,730
Mortgage sales
Consumer direct $ 962,417 $ 684,209 $ 718,624 $ 588,535 $ 428,886
Retail 220,436 158,224 120,487 94,735 81,849
Retail footprint 412,560 199,043 266,328 256,060 205,698
Wholesale — — 652 284,655 542,229
Total $ 1,595,413 $ 1,041,476 $ 1,106,091 $ 1,223,985 $ 1,258,662
Gains and fees from origination and sale of mortgage <br> loans held for sale $ 45,515 $ 30,390 $ 31,807 $ 28,020 $ 20,976
Net change in fair value of loans<br> held for sale, derivatives, and other 34,778 3,205 (4,328) 2,304 3,298
Mortgage servicing income 5,113 5,018 4,914 3,960 4,052
Change in fair value of mortgage <br> servicing rights, net of hedging (13,238) (5,868) (6,217) (5,091) (3,800)
Total mortgage banking income $ 72,168 $ 32,745 $ 26,176 $ 29,193 $ 24,526
Mortgage sale margin^(a)^ 2.85 % 2.92 % 2.88 % 2.29 % 1.67 %

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliaiton and Use of non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures for a reconciliation and discussion of this non-GAAP measure.

(a) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.

FB Financial Corporation 12
Loan Portfolio and Asset Quality
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2020 2019
Second Quarter % of Total First Quarter % of Total Fourth Quarter % of Total Third Quarter % of Total Second Quarter % of Total
Loan portfolio
Commercial and Industrial ^(a)^ $ 1,289,646 27 % $ 1,020,484 23 % $ 1,034,036 23 % $ 997,921 23 % $ 989,288 23 %
Construction 553,619 12 % 599,479 13 % 551,101 13 % 537,784 12 % 525,954 12 %
Residential real estate:
1-to-4 family mortgage 741,936 15 % 743,336 16 % 710,454 16 % 710,077 17 % 688,984 16 %
Residential line of credit 236,974 5 % 246,527 5 % 221,530 5 % 215,493 5 % 218,006 5 %
Multi-family mortgage 115,149 2 % 94,638 2 % 69,429 2 % 80,352 2 % 82,945 2 %
Commercial real estate:
Owner occupied 683,245 14 % 686,543 15 % 630,270 14 % 620,635 14 % 602,723 14 %
Non-owner occupied 923,192 19 % 910,822 20 % 920,744 21 % 914,502 21 % 922,150 22 %
Consumer and other 283,262 6 % 266,209 6 % 272,078 6 % 268,580 6 % 259,466 6 %
Total loans HFI $ 4,827,023 100 % $ 4,568,038 100 % $ 4,409,642 100 % $ 4,345,344 100 % $ 4,289,516 100 %
Allowance for credit losses <br> rollforward summary
Allowance for credit losses at the <br> beginning of the period $ 89,141 $ 31,139 $ 31,464 $ 30,138 $ 29,814
Impact of adopting ASC 326 <br> (CECL) on non-purchased credit<br> deteriorated loans — 30,888 — — —
Impact of adopting ASC 326 <br> (CECL) on purchased credit <br> deteriorated loans — 558 — — —
Charge-offs (1,165) (2,411) (3,594) (717) (770)
Recoveries 1,114 334 319 212 213
Provision for credit losses 24,039 27,964 2,950 1,831 881
Initial allowance on acquired loans<br> with credit deterioration — 669 — — —
Allowance for credit losses at the<br> end of the period $ 113,129 $ 89,141 $ 31,139 $ 31,464 $ 30,138
Allowance for credit losses as a <br> percentage of total loans HFI 2.34 % 1.95 % 0.71 % 0.72 % 0.70 %
Adjusted allowance for credit<br> losses as a percentage of loans<br> HFI* 2.51 % 1.95 % 0.71 % 0.72 % 0.70 %
Allowance for credit losses on <br> unfunded commitments $ 6,500 $ 4,618 $ — $ — $ —
Charge-offs
Commercial and Industrial $ (147) $ (1,234) $ (2,669) $ (3) $ (79)
Construction (18) — — — —
Residential real estate:
1-to-4 family mortgage (123) (242) (138) — (1)
Residential line of credit (21) — (4) (170) (103)
Multi-family mortgage — — — — —
Commercial real estate:
Owner occupied — (209) — — —
Non-owner occupied (545) — — (12) —
Consumer and other (311) (726) (783) (532) (587)
Total charge-offs (1,165) (2,411) (3,594) (717) (770)
Recoveries
Commercial and Industrial 807 88 70 16 38
Construction 151 — 3 1 6
Residential real estate:
1-to-4 family mortgage 26 24 17 25 24
Residential line of credit 24 15 17 75 21
Multi-family mortgage — — — — —
Commercial real estate:
Owner occupied 3 14 13 3 5
Non-owner occupied — — — — —
Consumer and other 103 193 199 92 119
Total recoveries 1,114 334 319 212 213
Net charge-offs $ (51) $ (2,077) $ (3,275) $ (505) $ (557)
Net charge-offs as a percentage of <br> average total loans 0.00 % 0.19 % 0.30 % 0.05 % 0.05 %
Loans classified as substandard $ 88,416 $ 74,237 $ 80,346 $ 78,881 $ 68,828 FB Financial Corporation 13
--- ---
Loan Portfolio and Asset Quality (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2020 2019
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Nonperforming assets^(b)(c)^
Past due 90 days or more and<br> accruing interest $ 6,412 $ 6,459 $ 5,543 $ 2,452 $ 2,100
Nonaccrual 28,413 24,547 21,062 17,911 16,135
Total nonperforming loans held for <br> investment 34,825 31,006 26,605 20,363 18,235
Loans held for sale — — — — —
Other real estate owned:
Foreclosed 7,340 9,332 9,983 8,771 7,830
Excess land and facilities 7,751 7,740 8,956 7,305 7,691
Other assets 1,306 1,188 1,580 1,519 1,499
Total nonperforming assets $ 51,222 $ 49,266 $ 47,124 $ 37,958 $ 35,255
Total nonperforming loans as a <br> percentage of loans held for <br> investment 0.72 % 0.68 % 0.60 % 0.47 % 0.43 %
Total nonperforming assets as a <br> percentage of total assets 0.71 % 0.74 % 0.77 % 0.62 % 0.59 %
Total accruing loans over 90 days <br> delinquent as a percentage<br> of total assets 0.09 % 0.10 % 0.09 % 0.04 % 0.04 %
Loans restructured as troubled<br> debt restructurings $ 13,277 $ 11,566 $ 12,206 $ 11,460 $ 8,714
Troubled debt restructurings as a <br> percentage of loans held for <br> investment 0.28 % 0.25 % 0.28 % 0.26 % 0.20 %

(a) Includes PPP loan balances of $314,678 as of June 30, 2020.

(b) Upon adoption of CECL on January 1, 2020, purchase credit deteriorated loans are included in nonperforming assets on a prospective basis.

(c) Nonperforming assets includes guaranteed repurchased loans previously sold of $4.2 million, $3.1 million, $2.7 million, $2.6 million, and $1.5 million for the quarters ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation 14
Preliminary Capital Ratios
--- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets: June 30, 2020 December 31, 2019
Total Equity $ 805,216 $ 762,329
Less:
Goodwill 175,441 169,051
Other intangibles 17,671 17,589
Tangible Common Equity $ 612,104 $ 575,689
Total Assets $ 7,255,536 $ 6,124,921
Less:
Goodwill 175,441 169,051
Other intangibles 17,671 17,589
Tangible Assets $ 7,062,424 $ 5,938,281
Preliminary Total Risk-Weighted Assets $ 5,592,771 $ 5,172,450
Total Common Equity to Total Assets 11.1 % 12.4 %
Tangible Common Equity to Tangible Assets* 8.7 % 9.7 %
June 30, 2020 December 31, 2019
Preliminary Regulatory Capital^(a)^:
Common Equity Tier 1 Capital $ 636,090 $ 572,410
Tier 1 Capital 666,090 602,410
Total Capital 735,555 633,549
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1 11.4 % 11.1 %
Tier 1 Risk-Based 11.9 % 11.6 %
Total Risk-Based 13.2 % 12.2 %
Tier 1 Leverage 9.7 % 10.1 %

(a) Reflects CECL transition relief of $37.8 million add-back and $43.7 million disallowed from add-back to Tier 2 capital.

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliaiton and Use of non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures.

FB Financial Corporation 15
Investment Portfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2020 2019
Securities (at fair value) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Available-for-sale debt securities
U.S. government agency securities $ 3,024 — % $ 3,037 — % $ — — % $ 999 — % $ 996 — %
Mortgage-backed securities - <br> residential 454,606 61 % 499,658 65 % 490,676 71 % 485,300 72 % 517,505 77 %
Municipals, tax exempt 266,052 35 % 235,677 31 % 189,235 27 % 173,785 26 % 149,305 22 %
Treasury securities 22,771 3 % 24,860 3 % 7,448 1 % 7,432 1 % 7,409 1 %
Corporate securities 985 — % 985 — % 1,022 — % 1,015 — % — — %
Total available-for-sale debt <br> securities 747,438 99 % 764,217 99 % 688,381 99 % 668,531 99 % 675,215 100 %
Equity securities 4,329 1 % 3,358 1 % 3,295 1 % 3,250 1 % 3,242 — %
Total securities $ 751,767 100 % $ 767,575 100 % $ 691,676 100 % $ 671,781 100 % $ 678,457 100 %
Securities to total assets 10.4 % 11.5 % 11.3 % 11.0 % 11.4 %
Unrealized gain on available-for<br> -sale debt securities $ 29,683 $ 28,045 $ 11,676 $ 12,436 $ 7,303
FB Financial Corporation 16
--- ---
Non-GAAP Reconciliation
--- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted earnings Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Pre-tax net income $ 30,328 $ 825 $ 27,290 $ 31,684 $ 25,002
Plus merger and mortgage restructuring expenses 1,586 3,050 686 407 4,612
Plus initial provision for credit losses on acquired loans — 2,885 — — —
Adjusted pre-tax earnings 31,914 6,760 27,976 32,091 29,614
Income tax expense, adjusted 7,828 1,464 5,897 7,824 7,516
Adjusted earnings $ 24,086 $ 5,296 $ 22,079 $ 24,267 $ 22,098
Weighted average common shares outstanding - fully diluted 32,506,417 31,734,112 31,470,565 31,425,573 31,378,018
Adjusted diluted earnings per share
Diluted earnings per common share $ 0.70 $ 0.02 $ 0.68 $ 0.76 $ 0.59
Plus merger and mortgage restructuring expenses 0.05 0.10 0.02 0.01 0.15
Plus initial provision for credit losses on acquired loans — 0.09 — — —
Less tax effect 0.01 0.04 — — 0.04
Adjusted diluted earnings per share $ 0.74 $ 0.17 $ 0.70 $ 0.77 $ 0.70
2020 2019
Adjusted pre-tax pre-provision earnings Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Pre-tax net income $ 30,328 $ 825 $ 27,290 $ 31,684 $ 25,002
Plus provisions for credit losses 25,921 29,565 2,950 1,831 881
Pre-tax pre-provision earnings 56,249 30,390 30,240 33,515 25,883
Plus merger and mortgage restructuring expenses 1,586 3,050 686 407 4,612
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,926 $ 33,922 $ 30,495
Weighted average common shares outstanding - fully diluted 32,506,417 31,734,112 31,470,565 31,425,573 31,378,018
Adjusted pre-tax pre-provision diluted earnings per share
Diluted earnings per common share $ 0.70 $ 0.02 $ 0.68 $ 0.76 $ 0.59
Plus income tax expense 0.23 — 0.18 0.25 0.20
Plus provisions for credit losses 0.80 0.93 0.10 0.06 0.03
Pre-tax pre-provision earnings per share 1.73 0.95 0.96 1.07 0.82
Plus merger and mortgage restructuring expenses 0.05 0.10 0.02 0.01 0.15
Adjusted pre-tax pre-provision earnings per share $ 1.78 $ 1.05 $ 0.98 $ 1.08 $ 0.97 FB Financial Corporation 17
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Adjusted pro forma earnings* YTD 2020 2019 2018 2017 2016
Pre-tax net income $ 31,153 $ 109,539 $ 105,854 $ 73,485 $ 62,324
Plus merger, conversion, offering, and mortgage <br> restructuring expenses 4,636 7,380 2,265 19,034 3,268
Plus initial provision for credit losses on acquired loans 2,885 — — — —
Less significant (losses) gains on securities, other real estate owned <br> and other items — — — — (3,539)
Adjusted pre-tax earnings 38,674 116,919 108,119 92,519 69,131
Adjusted pro forma income tax expense 9,292 27,648 26,034 34,749 25,404
Adjusted pro forma earnings $ 29,382 $ 89,271 $ 82,085 $ 57,770 $ 43,727
Weighted average common shares outstanding - fully diluted 32,109,194 31,402,897 31,314,981 28,207,602 19,312,174
Adjusted pro forma diluted earnings per share*
Diluted earnings per common share $ 0.74 $ 2.65 $ 2.55 $ 1.86 $ 2.10
Plus merger, conversion, offering, and mortgage <br> restructuring expenses 0.14 0.24 0.07 0.67 0.17
Plus initial provision for credit losses on acquired loans 0.09 — — — —
Less significant (losses) gains on securities, other real estate<br> owned and other items — — — — (0.18)
Less tax effect and benefit of enacted tax laws 0.05 0.06 0.01 0.48 0.19
Adjusted pro forma diluted earnings per share $ 0.92 $ 2.83 $ 2.61 $ 2.05 $ 2.26
*Prior to the IPO in the third quarter of 2016, the Company was an S corporation and did not incur federal income taxes. In conjunction with the IPO, the Company converted to a C corporation. These results are on a pro forma basis to reflect the results of the Company on a C corporation basis and combined effective tax rates of 35.08% for the year ended December 31, 2016.
Adjusted pre-tax pre-provision earnings YTD 2020 2019 2018 2017 2016
Pre-tax net income $ 31,153 $ 109,539 $ 105,854 $ 73,485 $ 62,324
Plus provisions for credit losses 55,486 7,053 5,398 (950) (1,479)
Pre-tax pre-provision earnings 86,639 116,592 111,252 72,535 60,845
Plus merger, conversion, offering, and mortgage <br> restructuring expenses 4,636 7,380 2,265 19,034 3,268
Less significant (losses) gains on securities, other real estate<br> owned and other items — — — — (3,539)
Adjusted pre-tax pre-provision earnings $ 91,275 $ 123,972 $ 113,517 $ 91,569 $ 67,652
Weighted average common shares outstanding - fully diluted 32,109,194 31,402,897 31,314,981 28,207,602 19,312,174
Adjusted pre-tax pre-provision diluted earnings per share
Diluted earnings per common share $ 0.74 $ 2.65 $ 2.55 $ 1.86 $ 2.10
Plus income tax expense 0.23 0.82 0.83 0.75 1.13
Plus provisions for credit losses 1.73 0.23 0.17 (0.03) (0.08)
Pre-tax pre-provision earnings per share 2.70 3.70 3.55 2.58 3.15
Plus merger, conversion, offering, and mortgage <br> restructuring expenses 0.14 0.24 0.07 0.67 0.17
Less significant (losses) gains on securities, other real estate <br> owned and other items — — — — (0.18)
Adjusted pre-tax pre-provision diluted earnings per share $ 2.84 $ 3.94 $ 3.62 $ 3.25 $ 3.50
FB Financial Corporation 18
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Core efficiency ratio (tax-equivalent basis) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Total noninterest expense $ 80,579 $ 68,559 $ 62,686 $ 62,935 $ 64,119
Less merger and mortgage restructuring expenses 1,586 3,050 686 407 4,612
Core noninterest expense $ 78,993 $ 65,509 $ 62,000 $ 62,528 $ 59,507
Net interest income (tax-equivalent basis) $ 55,977 $ 56,784 $ 58,212 $ 58,769 $ 57,488
Total noninterest income 81,491 42,700 35,234 38,145 32,979
Less gain (loss) on sales or write-downs of other <br> real estate owned and other assets 32 (277) 277 (82) 94
Less (loss) gain from securities, net (28) 63 (18) (20) 52
Core noninterest income 81,487 42,914 34,975 38,247 32,833
Core revenue $ 137,464 $ 99,698 $ 93,187 $ 97,016 $ 90,321
Efficiency ratio (GAAP)^(a)^ 58.9 % 69.3 % 67.5 % 65.3 % 71.2 %
Core efficiency ratio (tax-equivalent basis) 57.5 % 65.7 % 66.5 % 64.5 % 65.9 %
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
2020 2019
Banking segment core efficiency ratio <br> (tax equivalent) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Core consolidated noninterest expense $ 78,993 $ 65,509 $ 62,000 $ 62,528 $ 59,507
Less Mortgage segment core noninterest expense 26,997 17,567 14,956 15,686 17,835
Core Banking segment noninterest expense $ 51,996 $ 47,942 $ 47,044 $ 46,842 $ 41,672
Core revenue $ 137,464 $ 99,698 $ 93,187 $ 97,016 $ 90,321
Less Mortgage segment total revenue 55,215 22,110 16,193 18,455 19,119
Core Banking segment total revenue $ 82,249 $ 77,588 $ 76,994 $ 78,561 $ 71,202
Banking segment core efficiency ratio <br> (tax-equivalent basis) 63.2 % 61.8 % 61.1 % 59.6 % 58.5 %
Mortgage segment core efficiency ratio <br> (tax equivalent)
Mortgage segment noninterest expense $ 26,997 $ 17,567 $ 14,956 $ 15,798 $ 18,664
Less mortgage restructuring expense — — — 112 829
Core Mortgage segment noninterest expense $ 26,997 $ 17,567 $ 14,956 $ 15,686 $ 17,835
Mortgage segment total revenue $ 55,215 $ 22,110 $ 16,193 $ 18,455 $ 19,119
Mortgage segment core efficiency ratio <br> (tax-equivalent basis) 48.9 % 79.5 % 92.4 % 85.0 % 93.3 % FB Financial Corporation 19
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted mortgage contribution Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Mortgage segment pre-tax net contribution $ 28,218 $ 4,543 $ 1,237 $ 2,657 $ 455
Retail footprint:
Mortgage banking income 16,940 10,651 9,899 10,693 5,451
Mortgage banking expenses 11,542 7,175 8,126 8,087 4,172
Retail footprint pre-tax net contribution 5,398 3,476 1,773 2,606 1,279
Total mortgage banking pre-tax net contribution $ 33,616 $ 8,019 $ 3,010 $ 5,263 $ 1,734
Plus mortgage restructuring expense — — — 112 829
Total adjusted mortgage banking pre-tax net <br> contribution $ 33,616 $ 8,019 $ 3,010 $ 5,375 $ 2,563
Pre-tax pre-provision earnings $ 56,249 $ 30,390 $ 30,240 $ 33,515 $ 25,883
% total mortgage banking pre-tax pre-provision<br> net contribution 59.8 % 26.4 % 10.0 % 15.7 % 6.70 %
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,926 $ 33,922 $ 30,495
% total adjusted mortgage banking pre-tax <br> pre-provision net contribution 58.1 % 24.0 % 9.73 % 15.8 % 8.40 %
2020 2019
Tangible assets and equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Tangible assets
Total assets $ 7,255,536 $ 6,655,687 $ 6,124,921 $ 6,088,895 $ 5,940,402
Less goodwill 175,441 174,859 169,051 168,486 168,486
Less intangibles, net 17,671 18,876 17,589 18,748 19,945
Tangible assets $ 7,062,424 $ 6,461,952 $ 5,938,281 $ 5,901,661 $ 5,751,971
Tangible common equity
Total shareholders' equity $ 805,216 $ 782,330 $ 762,329 $ 744,835 $ 718,759
Less goodwill 175,441 174,859 169,051 168,486 168,486
Less intangibles, net 17,671 18,876 17,589 18,748 19,945
Tangible common equity $ 612,104 $ 588,595 $ 575,689 $ 557,601 $ 530,328
Common shares outstanding 32,101,108 32,067,356 31,034,315 30,927,664 30,865,636
Book value per common share $ 25.08 $ 24.40 $ 24.56 $ 24.08 $ 23.29
Tangible book value per common share $ 19.07 $ 18.35 $ 18.55 $ 18.03 $ 17.18
Total shareholders' equity to total assets 11.1 % 11.8 % 12.4 % 12.2 % 12.1 %
Tangible common equity to tangible assets 8.67 % 9.11 % 9.69 % 9.45 % 9.22 %
2020 2019
Return on average tangible common equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Total average shareholders' equity $ 795,705 $ 768,929 $ 761,949 $ 731,701 $ 708,557
Less average goodwill 175,150 171,532 168,492 168,486 167,781
Less average intangibles, net 18,209 18,152 18,242 19,523 20,214
Average tangible common equity $ 602,346 $ 579,245 $ 575,215 $ 543,692 $ 520,562
Net income $ 22,873 $ 745 $ 21,572 $ 23,966 $ 18,688
Return on average tangible common equity 15.3 % 0.52 % 14.9 % 17.5 % 14.4 % FB Financial Corporation 20
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted return on average tangible common <br> equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Average tangible common equity $ 602,346 $ 579,245 $ 575,215 $ 543,692 $ 520,562
Adjusted net income 24,086 5,296 22,079 24,267 22,098
Adjusted return on average tangible common <br> equity 16.1 % 3.68 % 15.2 % 17.7 % 17.0 %
2020 2019
Adjusted pre-tax pre-provision return on <br> average tangible common equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Average tangible common equity $ 602,346 $ 579,245 $ 575,215 $ 543,692 $ 520,562
Adjusted pre-tax pre-provision earnings 57,835 33,440 30,926 33,922 30,495
Adjusted pre-tax pre-provision return on <br> average tangible common equity 38.6 % 23.2 % 21.3 % 24.8 % 23.5 %
Pro forma return on average tangible common <br> equity YTD 2020 2019 2018 2017 2016
Total average shareholders' equity $ 782,475 $ 723,494 $ 629,922 $ 466,219 $ 276,587
Less average goodwill 173,294 160,587 137,190 84,997 46,867
Less average intangibles, net 18,223 17,236 12,815 8,047 5,353
Average tangible common equity $ 590,958 $ 545,671 $ 479,917 $ 373,175 $ 224,367
Pro forma net income $ 23,618 $ 83,814 $ 80,236 $ 52,398 $ 39,422
Pro forma return on average tangible common <br> equity 8.04 % 15.4 % 16.7 % 14.0 % 17.6 %
Adjusted pro forma return on average tangible <br> common equity YTD 2020 2019 2018 2017 2016
Average tangible common equity $ 590,958 $ 545,671 $ 479,917 $ 373,175 $ 224,367
Adjusted pro forma net income 29,382 89,271 82,085 57,770 43,727
Adjusted pro forma return on average tangible <br> common equity 10.0 % 16.4 % 17.1 % 15.5 % 19.5 %
Adjusted pre-tax pre-provision return on average <br> tangible common equity YTD 2020 2019 2018 2017 2016
Average tangible common equity $ 590,958 $ 545,671 $ 479,917 $ 373,175 $ 224,367
Adjusted pre-tax pre-provision earnings 91,275 123,972 113,517 91,569 67,652
Adjusted pre-tax pre-provision return on average <br> tangible common equity 31.1 % 22.7 % 23.7 % 24.5 % 30.2 %
2020 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Adjusted return on average assets and <br> equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Net income $ 22,873 $ 745 $ 21,572 $ 23,966 $ 18,688
Average assets 7,074,612 6,409,417 6,157,931 5,988,572 5,771,371
Average equity 795,705 768,929 761,949 731,701 708,557
Return on average assets 1.30 % 0.05 % 1.39 % 1.59 % 1.30 %
Return on average equity 11.6 % 0.39 % 11.2 % 13.0 % 10.6 %
Adjusted net income $ 24,086 $ 5,296 $ 22,079 $ 24,267 $ 22,098
Adjusted return on average assets 1.37 % 0.33 % 1.42 % 1.61 % 1.54 %
Adjusted return on average equity 12.2 % 2.77 % 11.5 % 13.2 % 12.5 % FB Financial Corporation 21
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020 2019
Adjusted pre-tax pre-provision return on <br> average assets and equity Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Net income $ 22,873 $ 745 $ 21,572 $ 23,966 $ 18,688
Average assets 7,074,612 6,409,417 6,157,931 5,988,572 5,771,371
Average equity 795,705 768,929 761,949 731,701 708,557
Return on average assets 1.30 % 0.05 % 1.39 % 1.59 % 1.30 %
Return on average equity 11.6 % 0.39 % 11.2 % 13.0 % 10.6 %
Adjusted pre-tax pre-provision earnings $ 57,835 $ 33,440 $ 30,926 $ 33,922 $ 30,495
Adjusted pre-tax pre-provision return on <br> average assets 3.29 % 2.10 % 1.99 % 2.25 % 2.12 %
Adjusted pre-tax pre-provision return on <br> average equity 29.2 % 17.5 % 16.1 % 18.4 % 17.3 %
Adjusted pro forma return on average <br> assets and equity YTD 2020 2019 2018 2017 2016
Pro forma net income $ 23,618 $ 83,814 $ 80,236 $ 52,398 $ 39,422
Average assets 6,738,023 5,777,672 4,844,865 3,811,158 3,001,275
Average equity 782,475 723,494 629,922 466,219 276,587
Pro forma return on average assets 0.70 % 1.45 % 1.66 % 1.37 % 1.31 %
Pro forma return on average equity 6.07 % 11.6 % 12.7 % 11.2 % 14.3 %
Adjusted pro forma net income $ 29,382 $ 89,271 $ 82,085 $ 57,770 $ 43,727
Adjusted pro forma return on average <br> assets 0.88 % 1.55 % 1.69 % 1.52 % 1.46 %
Adjusted pro forma return on average <br> equity 7.55 % 12.3 % 13.0 % 12.4 % 15.8 %
Adjusted pre-tax pre-provision return on <br> average assets and equity YTD 2020 2019 2018 2017 2016
Pro forma net income $ 23,618 $ 83,814 $ 80,236 $ 52,398 $ 39,422
Average assets 6,738,023 5,777,672 4,844,865 3,811,158 3,001,275
Average equity 782,475 723,494 629,922 466,219 276,587
Pro forma return on average assets 0.70 % 1.45 % 1.66 % 1.37 % 1.31 %
Pro forma return on average equity 6.07 % 11.6 % 12.7 % 11.2 % 14.3 %
Adjusted pre-tax pre-provision earnings $ 91,275 $ 123,972 $ 113,517 $ 91,569 $ 67,652
Adjusted pre-tax pre-provision return on <br> average assets 2.72 % 2.15 % 2.34 % 2.40 % 2.25 %
Adjusted pre-tax pre-provision return on <br> average equity 23.5 % 17.1 % 18.0 % 19.6 % 24.5 %
2020 2019
Adjusted allowance for credit losses to loans<br> held for investment Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
Allowance for credit losses $ 113,129 $ 89,141 $ 31,139 $ 31,464 $ 30,138
Less allowance for credit losses attributed to<br> PPP loans 51 — — — —
Adjusted allowance for credit losses $ 113,078 $ 89,141 $ 31,139 $ 31,464 $ 30,138
Loans held for investment 4,827,023 4,568,038 4,409,642 4,345,344 4,289,516
Less PPP loans 314,678 — — — —
Adjusted loans held for investment $ 4,512,345 $ 4,568,038 $ 4,409,642 $ 4,345,344 $ 4,289,516
Allowance for credit losses to loans held for <br> investment 2.34 % 1.95 % 0.71 % 0.72 % 0.70 %
Adjusted allowance for credit losses to loans<br> held for investment 2.51 % 1.95 % 0.71 % 0.72 % 0.70 % FB Financial Corporation 22
--- ---

fbk2q2020earningsdeckfin

Second Quarter 2020 Earnings Presentation July 21, 2020

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 include, without limitation, statements regarding the projected impact of the COVID-19 global pandemic on our business operations, statements relating to the timing, benefits, costs, and synergies of the proposed merger with Franklin Financial Network, Inc. (“Franklin”) (the “Franklin merger”) and of the recent merger with FNB Financial Corp. (“FNB”) (together with the Franklin merger, the “mergers”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, and a continued slowdown in economic growth in the local or regional economies in which we operate and/or the US economy generally, (2) the effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business and our customers' business, results of operations, asset quality and financial condition, (3) changes in government interest rate policies, (4) our ability to effectively manage problem credits, (5) the risk that the cost savings and any revenue synergies from the mergers or another acquisition may not be realized or may take longer than anticipated to be realized, (6) disruption from the mergers with customer, supplier, or employee relationships, (7) the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement with Franklin, (8) the failure to obtain necessary regulatory approvals for the Franklin merger, (9) the possibility that the costs, fees, expenses, and charges related to the Franklin merger may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (10) the failure of the conditions to the Franklin merger to be satisfied, (11) the risks related to the integrations of the combined businesses following the Franklin merger, including the risk that the integration will be materially delayed or will be more costly or difficult than expected, (12) the diversion of management time on issues related to the mergers, (13) the ability of FB Financial to effectively manage the larger and more complex operations of the combined company following the Franklin merger, (14) the risks associated with FB Financial’s pursuit of future acquisitions, (15) reputational risk and the reaction of the parties’ respective customers to the mergers, (16) FB Financial’s ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, (17) the risk of potential litigation or regulatory action related to the Franklin merger, and (18) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and its other filings with the Securities and Exchange Commission (the “SEC”). Many of these factors are beyond FB Financial’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this presentation, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the company. FB Financial qualifies all forward-looking statements by these cautionary statements 1

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 limitation, adjusted net income, adjusted diluted earnings per share, adjusted pro forma net income, adjusted pro forma diluted earnings per share, pre-tax, pre-provision earnings, adjusted pre-tax, pre- provision earnings, adjusted pre-tax, pre-provision earnings per share, core noninterest expense, core revenue, core noninterest income, core efficiency ratio (tax-equivalent basis), banking segment core efficiency ratio (tax-equivalent basis), mortgage segment core efficiency ratio (tax-efficiency basis), adjusted mortgage contribution, adjusted return on average assets, equity and tangible common equity, pre-tax, pre-provision return on average assets, equity and tangible common equity, pro forma return on average assets and equity, pro forma adjusted return on average assets, equity and tangible common equity and adjusted pre-tax, pre-provision return on average assets, equity and tangible common equity, adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses as a percentage of loans held for investment, which excludes the impact of PPP loans. Each of these non- GAAP metrics excludes certain income and expense items that the Company’s management considers to be non‐core/adjusted in nature. The Company refers to these non‐GAAP measures as adjusted or core measures. The corresponding Earnings Release also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. The following tables provide a reconciliation of these measures to the most directly comparable GAAP financial measures. 2

Aggressively managing for impact of COVID-19 ▪No pandemic related reductions in force, and remote work environment has been effective Health and ▪Branch lobby service had been reinstated across the footprint with sneeze guards and social distancing Safety methods in place ▪Re-suspending lobby access in selected facilities as case counts rise ▪Annualized deposit growth of 43.1% in 2Q 2020, resulting in Loans HFI / Deposits of 81.1% ▪On balance sheet and contingent liquidity increased to $4.7 billion, an increase of $0.4 billion from Liquidity March 31, 2020 ▪Monitoring movement of recent influx of deposits ▪Total Risk Based Capital ratio increased to 13.2% as of June 30, 2020 from 12.5% as of March 31, 2020 on the strength of $57.8 million in adjusted pre-tax, pre-provision earnings1 for the quarter Capital ▪Increased Allowance for Credit Losses to 2.34% of Loans HFI, or 2.51% adjusted to exclude PPP loans1 ▪Received investment grade rating from Kroll Bond Rating Agency ▪Mortgage continues to capitalize on low rate environment, delivered $33.6 million in total mortgage direct contribution in the second quarter Profitability ▪Cost of interest bearing deposits declined by 33 bps from 1Q 2020 to 2Q 2020 ▪$560.2 million in time deposits with a weighted average cost of 1.75% mature in 2H 2020 ▪Assessing growth opportunities while balancing capital preservation and asset quality ▪Continue to prioritize serving existing customer base Growth ▪Successful in converting select prospects into customers in various markets ▪Seeing anecdotal buoyancy in certain markets as re-opening efforts have been initiated ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures. 3

Markets have reopened for economic activity Government Guidance on Economic Activity Close Contact Entertainment Map Market Retail Restaurant Gyms Mask Orders Providers Venues Key County by county, Tennessee1 Open w/ Distancing Open w/ Distancing Open w/ Distancing 50% Capacity Open w/ Distancing no mandate Encourages, no Georgia2 50% Capacity Open w/ Distancing Open w/ Distancing Open w/ Distancing Open w/ Distancing mandate Yes, effective July Kentucky3 50% Capacity 50% Capacity Open w/ Distancing 50% Capacity 50% Capacity 9 Yes, effective July Alabama4 50% Capacity Open w/ Distancing Open w/ Distancing 50% Capacity 50% Capacity 7 Yes, effective June Davidson County5 75% Capacity 50% Capacity 50% Capacity Open w/ Distancing 50% Capacity 28 Open, 18 ft of Yes, effective July Shelby County6 50% Capacity Open w/ Distancing Open w/ Distancing 50% Capacity Distance 3 FBK County Footprint Reopening Map 1 Source: tn.gov/governor/covid-19. Tennessee Pledge 2 Source: georgia.org/covid19bizguide#other. Governor Kemp’s Statewide Executive Order: Guidelines for Businesses. 3 Source: govstatus.egov.com. Healthy at Work – Reopening Kentucky. 4 Source: alabamapublichealth.gov. Order of the State Health Officer Amended June 30, 2020. 5 Source: huschblackwell.com. Tennessee: State-by-State COVID-19 Guidance July 3, 2020 6 Source: shelbycountytn.gov. Public Health Directive Updated July 9, 2020. 4

And many customers are executing on the reopening Color from the field ▪ “On the whole, our market is performing well. We do a fair amount of business with trucking operators, which we view as a leading indicator of the economy. May was a down month for that group, but they have bounced back and are near full capacity in June and July. Homebuilders in our area are also having solid years. Our C&I clients are generally performing well and are cautiously optimistic, but they are continuing to build liquidity in the face of uncertainty. Our hospitality loans are still dealing with a lack of travel, but we’re not seeing any signs of permanent weakness there yet.” – Jim Mosby, Nashville Regional President ▪ “The East Region is doing well. We are seeing continued demand on real estate transactions that have had prior momentum, but less demand for new business as prospecting meetings have been hampered by work from home policies. On the credit side, we did a survey for all of our clients above $250 thousand in balances that received either stimulus money or a deferral. The strong majority of those customers thought that things would be fine, and many took the funding as a security blanket and they were facing uncertain times. As PPP and stimulus money starts to run out, we are increasingly monitoring those smaller credits that have had to rely on the government aid.” – Nathan Hunter, East Tennessee Regional President ▪ “The Region has performed well in the first half of 2020. Loan demand continues to be solid across the footprint, with real estate as the top area of demand in most markets, particularly the smaller markets. Deposit production has remained robust in all markets, in part due to some clients postponing planned expansions and equipment purchases because of the current state of economic uncertainty. Competition for stronger credits is fierce, and we are winning our share of these deals but remain unwilling to sacrifice prudent underwriting standards in the process. Reasonable competition on pricing is acceptable and necessary; however, losing our credit discipline is not an option.” – David Burden, West Tennessee Regional President ▪ “Our customers are optimistic and generally are having good years. Loan demand remains active and strong, but we’re not seeing many large deals. COVID has not impacted our area of Tennessee as much as some of the larger metropolitan markets. We are still waiting to see if we’ll be more impacted, but generally the portfolio is performing very well.” – Troy Martin, South Central Tennessee Area President ▪ “Loan demand is good for small to mid-size deals. Our customers are optimistic, and economic activity has remained robust in Huntsville and Northwest Alabama. Despite a good market backdrop, prospecting efforts have been somewhat impacted by the lack of ability to have face-to-face meetings, and we are getting a few regrettable payoffs as customers sell buildings / properties due to the lack of inventory in our footprint. I would expect a steady second half for us.” – Mike McCrary, North Alabama Area President 5

While we continue to work with impacted customers Deferral programs Total first deferrals by type ($918 million1) ▪ First deferral held no requirements; granting of second $354.8 deferrals are being decided on a case-by-case basis $321.7 ▪ Standard consumer loan received 2-payment relief; standard commercial loan received 90 day principal and interest forbearance; relationship managers had authority to offer plans that varied from the standard $82.5 $83.6 $45.3 ▪ Continuing to monitor as first deferral periods expire $14.2 $16.1 21.3% 34.8% 14.9% 39.4% 11.3% 6.0% 5.7% C&I 3 CRE C&D Multifamily 1-4 Family 1-4 Family Consumer & ▪ Working with customers in industries disproportionately HELOC Other affected by social distancing restrictions, including Second deferrals by type ($138 million2) hospitality and restaurants $76.9 ▪ Of $918 million loans given a first deferral, approximately 61% are still in the first deferral period $46.8 ▪ Approximately 15% of loans initially deferred have requested and been approved for a second deferral $7.4 ▪ Approximately 5.5% of loans held in our mortgage servicing $3.5 2.8% 8.3% $2.2 $0.5 1.0% $0.3 portfolio were in forbearance as of June 30, 2020 0.6% 1.9% C&I 3 CRE C&D Multifamily 1-4 Family 1-4 Family Consumer & HELOC Other ¹ Balances based on deferral participants’ loan balances outstanding as of June 30, 2020. %’s are deferrals as a percentage of total outstanding balances in each reporting category as of June 30, 2020. 2 Balances based on deferral participants’ as of July 15, 2020 and loan balances outstanding as of June 30, 2020. %’s are deferrals as a percentage of each reporting category as of June 30, 2020. 3 Includes owner-occupied CRE, excludes PPP loans. 6

2Q 2020 highlights Key highlights Financial results ◼ Originated and funded $314.7 million in Paycheck Protection Program 2Q 2020 loans, expected to create $5.5 million1 in fee income over the remaining life of the loans Diluted earnings per share $0.70 Adjusted diluted earnings per share2 $0.74 ◼ Increased on-balance sheet liquidity to 14.0% of tangible assets from 12.0% in 1Q 2020; lowered loans HFI / deposits to 81.1% Net income ($mm) $22.9 Adjusted net income2 ($mm) $24.1 ◼ Additional provisioning increased Adjusted ACL / Gross Loans HFI (excluding PPP loans) 2 of 2.51% Return on average assets 1.30% ◼ Adjusted pre-tax, pre-provision earnings2 of $57.8 million, up 73.0% over 1Q 2020, resulting in adjusted pre-tax, pre-provision ROAA2 of Return on average equity 11.6% 3.29% ◼ Continued customer-focused balance sheet growth resulting in a net Adjusted pre-tax, pre-provision earnings2 ($mm) $57.8 interest margin of 3.50% for 2Q 2020 – Contractual yield on loans of 4.57%, down 39 bps from 1Q 2020; Adjusted pre-tax, pre-provision return on average 3.29% PPP loans had an 18 bps impact on contractual yield assets2 – Cost of total deposits of 0.65%, down 29 bps from 1Q 2020 Adjusted pre-tax, pre-provision return on average 38.6% ◼ Total pre-tax mortgage contribution of $33.6 mm in 2Q 2020 tangible common equity2 ◼ Customer deposits grew to $5.94 bn, a 43.6% annualized increase Net interest margin 3.50% from 1Q 2020 Impact of accretion and nonaccrual interest (bps) 7 – 23.4% year-over-year growth Efficiency ratio 58.9% ◼ Loans (HFI) of $4.83 bn, a 22.8% annualized increase from 1Q 2020 Core efficiency ratio2 57.5% – 5.2% year-over-year growth, excluding impact of $314.7 million in Tangible common equity / tangible assets2 8.7% PPP loans ◼ Received shareholder approval on Franklin Financial Network acquisition on June 15, 2020 ¹ Fee income is net of 3rd party origination fees and allocated deferred salaries and incentives. 2 Results are non-GAAP financial measures that adjust GAAP reported net income, total assets, equity and other metrics for certain intangibles, income and expense items as outlined in the non-GAAP reconciliation calculations, using a combined marginal income tax rate of 26.06% excluding one-time items. See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures. 7

Strong liquidity position ◼ Customer deposit base has seen consistent growth in On Balance Sheet Liquidity balances over the past 12 months and remains a stable base of funding and liquidity On-Balance Sheet Liqudity On balance sheet liquidity / tangible assets $988.5 $1,000.0 ◼ $900.0 Monitoring liquidity in secondary mortgage markets and $773.5 impact of servicing requirements $800.0 $700.0 $581.4 $550.7 $600.0 $547.9 14.0% ◼ Isolated and limited draw downs on commercial lines and $500.0 12.0% $400.0 9.5% 9.9% 9.3% HELOC since mid-March, continue daily monitoring $300.0 $200.0 $100.0 ◼ Monitoring movement of recent influx of deposits $- 2Q19 3Q19 4Q19 1Q20 2Q20 Loans HFI / Customer Deposits Sources of Liquidity 2Q 2020 89.7% 89.1% 88.7% Current On-Balance Sheet: 85.3% Cash and Equivalents $717.6 81.3% Unpledged Securities 266.6 Equity Securities 4.3 Total On-Balance Sheet $988.5 Available Sources of Liquidity: Brokered CDs and Unsecured Lines $2,083.0 FHLB 524.7 Discount Window 1,055.3 Total Available Sources $3,663.0 2Q19 3Q19 4Q19 1Q20 2Q20 8

Core deposit franchise provides stable liquidity Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 35.0% 29.8% $5,953 30.0% 24.7% 24.5% 24.8% $5,377 $15 25.0% 23.0% $4,843 $4,922 $4,935 $20 20.0% $25 $20 $30 1.14% 1.11% 15.0% 1.02% $5,938 0.94% $5,357 $4,915 10.0% $4,813 $4,897 0.65% 5.0% 0.0% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Noninterest bearing deposits1 ($mm) Deposit composition Time 20% Noninterest- bearing checking Savings 30% 5% $1,775 $1,336 Money market Interest-bearing $1,214 $1,208 checking $1,112 24% 21% 2Q19 3Q19 4Q19 1Q20 2Q20 51% Checking accounts ¹ Includes mortgage servicing-related deposits of $70.4mm, $121.4mm, $92.6mm, $110.1mm and $149.1mm for the quarters ended June 30, 2019, September 30, 2019, December 31, 2019, March 31, 2020 and June 30, 2020, respectively. 9

Well-capitalized headed into recession Capital position Tangible book value per share3 2Q19 1Q202 2Q201,2 Shareholder’s equity/Assets 12.1% 11.8% 11.1% $19.07 $18.35 TCE/TA² 9.2% 9.1% 8.7% $11.56 $11.58 Common equity 10.4% 11.0% 11.4% tier 1/Risk-weighted assets 3Q16 4Q16 1Q20 2Q20 Tier 1 capital/Risk-weighted 11.0% 11.6% 11.9% Simple capital structure assets Total capital/Risk-weighted 11.6% 12.5% 13.2% Tier 2 ACL assets Trust Preferred 9% 4% Tier 1 capital /Average 10.0% 10.3% 9.7% assets Common C&D loans subject to 100% 92% 86% 75% Equity Tier 1 4 Capital risk-based capital threshold 87% CRE loans subject to 100% 267% 231% 215% risk-based capital threshold4 Total regulatory capital: $7361 mm ¹ Total regulatory capital, FB Financial Corporation. 2Q 2020 calculation is preliminary and subject to change. 2 For regulatory capital purposes, the CECL impact over 2020 and 2021 is gradually phased- in from Common Equity Tier 1 Capital to Tier 2 capital. As of March 31 2020 and June 30, 2020, respectively, $31.8 million and $37.8 million are being added back to CET 1 and Tier 1 Capital, and $37.7 million and $43.7 million are being taken out of Tier 2 capital. 3 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 4 Risk-based capital at FirstBank as defined in Call Report. 10

Balanced portfolio Portfolio mix C&I1 exposure by industry Other Balance Ex. PPP PPP 6% 1-4 family C&I CRE-OO Total % of Total Loans 15% Real Estate Rental and Leasing $ 278.7 $ 97.2 $ 375.9 22.7% $ 11.5 Retail Trade 65.3 101.1 166.4 10.0% 23.3 1-4 family HELOC Wholesale Trade 100.3 41.8 142.1 8.6% 24.6 Finance and Insurance 125.5 14.6 140.1 8.4% 7.0 C&I 1 5% Health Care and Social Assistance 52.8 76.8 129.6 7.8% 41.6 41% Multifamily Manufacturing 70.7 56.4 127.1 7.7% 44.6 2% Other Services (except Public Administration) 16.8 78.3 95.1 5.7% 17.0 Accomodation and Food Services 23.7 53.3 76.9 4.6% 15.3 C&D Transportation and Warehousing 51.2 13.3 64.5 3.9% 11.8 12% Arts, Entertainment and Recreation 27.4 35.2 62.7 3.8% 7.4 Construction 37.3 26.1 63.3 3.8% 39.0 Professional, Scientific and Technical Services 22.6 16.9 39.5 2.4% 29.8 Information 18.1 12.9 30.9 1.9% 3.9 CRE 2 Other 84.8 59.2 144.0 8.7% 37.9 19% Total $ 975.0 $ 683.2 $ 1,658.2 100.0% $ 314.7 CRE2 exposure by collateral C&D exposure by collateral Other Hotel 11% Other Office 3% 1-4 Family to be 24% 18% Owner Occ Land sold 3% 25% Multi Family 4% Owner Occ Business Real Hotel Estate Healthcare Facility 16% 4% 5% Self Storage 5% Warehouse / Industrial Land-Zoned 7% Commercial Land A&D Self Storage Retail 9% 23% 14% 8% Manufactured Owner Occ 1st Home Mortgage 9% 13% 1 C&I includes owner-occupied CRE. PPP Loans comprise 16% of C&I loans, or 7% of gross loans (HFI). 2 Excludes owner-occupied CRE. 11

Industries of concern ◼ Concentrations representative of community bankers Industry exposures / gross loans (HFI) serving customers across our communities 7.7% ◼ Focused on in-market relationship banking ◼ Trends better than expected to date as markets reopened 5.3% in late April / early May, continue monitoring in light of COVID case increases 4.0% ◼ Limited SNC exposure overall at 3 credits less than $100 2.3% million in aggregate, and none are in these industries of 2.1% concern 1.3% ◼ Summary: While satisfactory to date, continue to monitor closely Retail Healthcare Hotel Other Leisure Transportation Restaurant Industries of concern credit quality Deferral participants 91.5% First Deferrals Second Deferrals 6/30/20 6/30/20 7/15/20 6/30/20 Participants Balances Participants Balances Retail 117 $ 142.2 12 $ 20.8 Healthcare 85 41.4 4 3.7 Hotel 53 146.6 19 57.4 Other Leisure 36 39.0 5 9.9 Transportation 114 10.7 5 0.8 Restaurant 75 43.8 6 7.1 Total Industries of Concern 480 $ 423.7 51 $ 99.8 Other Loans HFI 1,472 494.6 43 37.8 4.6% 1.0% 2.8% Total Loans HFI 1,952 $ 918.3 94 $ 137.6 Industries of Concern / Total 24.6% 46.1% 54.3% 72.5% Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 12

Retail portfolio – 7.7% of gross loans HFI ◼ 53% C&I / CRE-OO and 47% CRE Non-OO and Other Portfolio overview ◼ CRE Non-owner occupied and Other – Generally smaller strip centers with backing of good Car, RV, Boat and guarantors; largest single loan <$8 million ATV Dealers 22% – High level of tenants paying as agreed; those not paying are working with our borrowers in developing payment Gas Stations and Non-Owner Occ / Other Convenience Stores plans as locales have reopened CRE 6% 47% – Summary: Continue to monitor for issues, so far Sporting goods continued satisfactory performance 3% Pharmacies and ◼ C&I / CRE-OO portfolio drug stores 2% – Auto dealerships are weathering the downturn; limited Other Retailers < 3% supply creating shortages in inventory 20% – Summary: Satisfactory performance, continue to monitor, especially regarding reopening trends Credit quality Deferral participants First Deferral Second Deferral 94.8% 6/30/20 6/30/20 7/15/20 6/30/20 Participants Balances Participants Balances CRE Non-OO and Other 55 $ 82,448 9 $ 17,605 C&I and CRE-OO: Car, RV, Boat & ATV Dealers 15 $ 43,285 - $ - Gas Stations and C-Stores 7 3,394 - - Pharmacies & Drug Stores 2 1,040 - - Sporting Goods 1 88 - - Other Miscellaneous Retailers 37 11,964 3 3,178 Total C&I and CRE-OO 62 $ 59,771 3 $ 3,178 2.2% 1.0% 1.9% Total Retail Exposure 117 $ 142,218 12 $ 20,783 Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 13

Healthcare portfolio – 5.3% of loans HFI ◼ Assisted Living / Nursing Care continues to perform well; no Portfolio overview known COVID-19 outbreaks at this time Other Healthcare and Social Assisted Living / Assistance Nursing Care / ◼ Offices of Physicians benefitted from the majority of our 25% Continuing Care markets reopening in late April / early May 37% ◼ Summary: Satisfactory performance to date, continue to monitor Mental Health and Substance Abuse 14% Offices of Physicians 24% Credit quality Deferral participants 95.5% First Deferral Second Deferral 6/30/20 6/30/20 7/15/20 6/30/20 Participants Balances Participants Balances Assisted Living / Nursing Care - $ - - $ - / Continuing Care Offices of Physicians 74 27,938 4 3,708 Mental Health and Substance 4 5,747 - - Abuse Other Healthcare and Social 7 7,713 - - Assistance Total Healthcare and Social 1.5% 3.0% 85 $ 41,398 4 $ 3,708 0.0% Assistance Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 14

Hotel portfolio – 4.0% of gross loans HFI ◼ Occupancy rates vary widely across footprint, with Nashville Outstanding by location hotels at approximately 30% - 40%, while other geographies are as high as 80% Out of Market ◼ Reports from operators reference leisure properties lead the way, 8% Thursday through Sunday business has picked up Other Community 7% ◼ Confident in the underwriting of our portfolio and the strength of Nashville MSA our borrowers 36% ◼ Two legacy credits acquired in prior acquisitions totalling $4.8 Other MSA million in outstanding balances accounted for the majority of the 13% increase in substandard loans between 1Q 2020 and 2Q 2020. One other legacy property, highlighted in prior earnings call, continues to be reflected within substandard category with Bowling Green MSA significant reserves recorded 10% ◼ 53 first deferral participants as of June 30th with $147 million Memphis MSA outstanding; 19 second deferral participants as of July 15th with Atlanta MSA 16% 10% $57 million in outstanding balances ◼ Summary: Continue to remain concerned about the space, with heavy attention from our teams Credit quality Outstanding by flag Other 85.8% 11% Best Western / Choice Hilton / IHG / Marriott / / Red Lion / Red Roof Wyndham 12% 77% 7.2% 6.5% 0.5% Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 15

Other Leisure – 2.3% of gross loans HFI ◼ Confidence in portfolio due to current performance and Portfolio overview strong guarantors Other <5% Marinas ◼ Certain categories, such as marinas, have actually 18% 19% benefitted from current backdrop as safe recreational activities are sought Theaters ◼ Exercise operators report improved results since re- 8% openings RV Parks and Campgrounds ◼ Discussions with clients associated with professional sports Sports Teams and 17% Clubs or theater operators indicate plans to perform as agreed 10% upon coming out of deferral periods, including specific identified capital calls Historical Sites Fitness and Rec Sports 13% Centers ◼ Summary: Satisfactory performance, continue to monitor 15% Credit quality Deferral participants First Deferral Second Deferral 96.3% 6/30/20 6/30/20 7/15/20 6/30/20 Participants Balances Participants Balances Marinas 4 $ 13,980 3 $ 8,005 RV Parks and Campgrounds 3 1,768 - - Fitness and Recreational 7 5,510 - - Sports Centers Historical Sites - - - - Sports Teams and Clubs - - - - Theaters 4 9,444 - - 18 8,277 2 1,902 2.0% 0.0% 1.7% Other Pass Watch Special Mention Substandard Total Other Leisure 36 $ 38,978 5 $ 9,908 Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 16

Transportation and warehousing – 2.1% of gross loans HFI ◼ Overall satisfactory performance Portfolio overview Other ◼ Larger operators are improving Transportation and Warehousing 16% ◼ One small trucking operator with <$1.5 million in outstandings filed for bankruptcy during the quarter Consumer Charter Transportation ◼ Summary: Overall acceptable results, monitoring for 11% Trucking potential impact to smaller operators 50% Air Travel and Support 23% Credit quality Deferral participants First Deferral Second Deferral 6/30/20 6/30/20 7/15/20 6/30/20 78.0% Participants Balances Participants Balances Trucking 97 $ 9,606 - $ - Air Travel and - - - - Support Consumer Charter 5 832 5 832 Transportation 21.0% Other 12 284 - - Total Transportation 0.0% 1.3% 114 $ 10,722 5 $ 832 and Warehousing Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 17

Restaurant – 1.3% of gross loans HFI (ex. PPP) ◼ Overall satisfactory performance Portfolio overview ◼ Quick service seeing satisfactory results with drive through model Other ◼ Full service impacted more heavily given costs to re-open Bars 4% and concerns regarding potential further shut-downs. 6% Portfolio in this category benefit from backing of guarantors ◼ Largest exposure ($3.9 million) is to an operator currently benefitting from their model, which is a combination of fast casual and bar service Limited Service ◼ Summary: Satisfactory performance to date; continue to be 30% concerned about this space as operators face re- Full Service engineering their models long-term 60% ◼ Not included in this exposure disclosure is a diversified food company which also has certain retail outlets, exposure ~$25M; relationship accepted first deferral and not currently performing to par Credit quality Deferral participants First Deferral Second Deferral 85.4% 6/30/20 6/30/20 7/15/20 6/30/20 Participants Balances Participants Balances Full Service Restaurants 40 $ 25,570 5 $ 6,326 Limited-Service 26 15,711 1 800 Restaurants Bars 6 2,122 - - 10.6% Other 3 379 - - 3.0% 1.1% Total Restaurants 75 $ 43,782 6 $ 7,126 Pass Watch Special Mention Substandard Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 11 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 18

Allowance for credit losses overview ◼ Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes a blend of Moody’s economic scenarios from June 20, 2020, with resulting key economic data summarized below: FQE, FYE 12/31, 3Q 2020 4Q 2020 1Q 2021 2020 2021 2022 2023 GDP (bcw$) $ 18,243.7 $ 18,387.1 $ 18,533.1 $ 18,260.8 $ 18,919.8 $ 20,040.0 $ 20,830.4 Annualized % Change 19.8% 3.2% 3.2% (4.3%) 3.6% 5.9% 4.0% Total Employment (millions) 142.2 143.0 143.6 143.2 145.2 149.7 153.9 Unemployment Rate 9.0% 8.9% 8.7% 8.8% 8.0% 6.0% 4.4% CRE Price Index 248.975 243.6 243.475 243.6 269.35 308.4 340.425 NCREIF Property Index: Rate of Return (14.4%) 5.9% 1.2% (3.7%) 3.2% 4.4% 3.2% ◼ Key changes to economic assumptions from the prior quarter include: – CRE Price Index declining: Current 2021 estimate of 269.4 compares to 284.7 in 1Q 2020 CECL model – Unemployment Rate increasing: Current 2021 estimate of 8.0% compares to 6.6% in 1Q 2020 CECL model ACL / Loans HFI by Category 4Q 2019 1Q 2020 2Q 2020 6.43% 3.81% 3.91% 3.30% 2.87% 2.51% 2.46% 2.52% 2.56%2.48% 1.95% 1.98% 1.85% 1.75%1.68% 1.17% 1.10% 0.71% 0.83% 0.78% 0.54% 0.50% 0.44% 0.34% Gross Loans HFI (Ex. Commercial & Non-Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC Consumer & Other PPP) 2 Industrial 3 1Source: Moody’s “June 2020 U.S. Macroeconomic Outlook Baseline and Alternative Scenarios Updated”. 2 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 3 Commercial and Industrial includes $314.7 million in PPP loans, which has a 15 bps impact on June 30, 2020 ACL / Loans HFI. 19

Asset quality remains solid Nonperforming ratios Classified loans ($mm) NPLs (HFI)/loans (HFI)1 NPAs/assets1,2 $88 0.77% $79 $80 0.74% 0.73% 0.71% $74 0.68% $69 0.59% 0.62% 0.60% 0.43% 0.47% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 LLR/loans HFI (excluding PPP loans)3 Net charge-offs/average loans 2.51% 0.30% 1.95% 0.19% 0.70% 0.72% 0.71% 0.05% 0.05% 0.00% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 ¹ Adoption of CECL resulted in approximately $5.5 million of former PCI loans being reportable as nonperforming loans in 1Q 2020. 2 Includes acquired excess land and facilities held for sale–see page 14 of the Quarterly Financial Supplement. 3 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 20

Core earnings power remains intact Adjusted pre-tax, pre-provision return on average assets¹ 2.72% 2.40% 2.34% 2.25% 2.15% 1.81% 2015 2016 2017 2018 2019 YTD 2020 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) Core efficiency ratio1 Loans excluding HFS Loans HFS 101% $145 $142 95% 95% $131 $135 88% 15% 88% $124 73.1% 81% 7% 6% 4.66% 7% 70.6% 11% 19% 4.46% $92 68.1% 4.34% 65.8% 65.4% 4.10% 89% 60.9% 86% 88% 81% 3.97% 70% 69% 3.70% 2015 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 YTD 2015 2016 2017 2018 2019 YTD 2015 2016 2017 2018 2019 YTD 2020 2020 2020 ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 21

Managing net interest margin through falling rates Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $7,000 6.0% $6,000 5.0% $5,000 4.0% $4,000 3.0% $3,000 2.0% $2,000 1.0% $1,000 ($mm) assets -- $0 earning interest Avg. Yields (%) Costs and Yields 2Q19 3Q19 4Q19 1Q20 2Q20 NIM 4.39% 4.28% 4.12% 3.92% 3.50% Impact of accretion and nonaccrual 17 16 21 13 7 interest (bps) Deposit Cost: Cost of MMDA 1.48% 1.45% 1.29% 1.15% 0.62% Cost of customer time 2.13% 2.13% 2.07% 1.95% 1.78% Cost of interest-bearing 1.49% 1.47% 1.36% 1.25% 0.92% Total deposit cost 1.14% 1.11% 1.02% 0.94% 0.65% Loans HFI Yield: Contractual interest 5.57% 5.50% 5.27% 5.14% 4.57% Origination and other 0.29% 0.30% 0.26% 0.23% 0.24% loan fee income Nonaccrual interest 0.01% 0.02% 0.04% 0.02% 0.01% Accretion on 0.20% 0.19% 0.23% 0.14% 0.08% purchased loans Total loan (HFI) yield 6.07% 6.01% 5.80% 5.53% 4.90% ¹ Includes tax-equivalent adjustment 22

Mortgage operations overview Highlights Quarterly mortgage production ◼ Record total Mortgage pre-tax contribution of $33.6mm for 2Q Consumer Direct 2020 Retail 2Q19 1Q20 2Q20 Wholesale ◼ Mortgage sale margins continue to be elevated due to industry capacity constraints and low interest rates ◼ Mortgage pipeline at the end of 2Q 2020 remains robust at $1.2 billion, as compared to $0.6 billion at the end of 2Q 2019 ◼ Mortgage banking income $72.2mm, up 194.3% from 2Q 2019 IRLC volume: $1,820mm $2,094mm $2,239mm and 120.4% from 1Q 2020 IRLC pipeline2: $609mm $1,085mm $1,206mm ◼ Mortgage structure allows team to capitalize on attractive rate Refinance %: 49% 78% 80% environments while weathering downturns Purchase %: 51% 22% 20% Mortgage banking income ($mm) Mark to Market Value and Gain on Sale Margin 2Q19 1Q20 2Q20 Mark to Market Value 3 Gain on Sale Margin Gain on Sale $21.0 $30.4 $45.5 3.84% Fair value $3.3 $3.2 $34.8 changes 2.88% 2.92% 2.85% Servicing $4.0 $5.0 $5.1 2.29% Revenue 2.22% 2.20% 2.27% 1.67% Fair value 1.41% ($3.8) ($5.9) ($13.2) MSR changes Total $24.5 $32.7 $72.2 Income 2Q19 3Q19 4Q19 1Q20 2Q20 ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures ² As of the respective period-end 3Defined as pipeline net of hedge plus best efforts divided by hedge weighted volume. 23

Managing operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ ◼ Consolidated 2Q 2020 core efficiency ratio¹ Banking segment of 57.5% driven by record mortgage Consolidated 93.3% contribution 92.4% Mortgage segment 85.0% 79.5% ◼ Converted FNB Financial Corp in May 2020; cost savings in line with expectations 66.5% 65.9% 65.7% 64.5% 63.2% 61.1% 61.8% 58.5% 59.6% 57.5% ◼ Anticipate Franklin Synergy Bank conversion 48.9% in 4Q 2020 ◼ Record quarterly mortgage contribution in low rate environment ◼ Expense control remains a focus for 2020 with margin headwinds 2Q19 3Q19 4Q19 1Q20 2Q20 ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 24

Appendix 25

GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share 26

GAAP reconciliation and use of non-GAAP financial measures Pre-tax, pre-provision earnings and diluted earnings per share 27

GAAP reconciliation and use of non-GAAP financial measures Adjusted pro forma net income and diluted earnings per share* 28

GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings and diluted earnings per share 29

GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 30

GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 31

GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 32

GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution 33

GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity 34

GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 35

GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average tangible common equity Adjusted return on average assets and equity 36

GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision return on average tangible common equity Adjusted pre-tax, pre-provision return on average assets and equity 37

GAAP reconciliation and use of non-GAAP financial measures Adjusted pro forma return on average assets and equity Adjusted pre-tax, pre-provision return on average assets and equity 38

GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment 39

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