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8-K

FB Financial Corp (FBK)

8-K 2022-01-18 For: 2022-01-18
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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): January 18, 2022

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

Nashville, Tennessee 37201

(Address of principal executive offices) (Zip Code)

(615) 564-1212

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

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 ☐

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. ☐

Item 2.02. Results of Operations and Financial Condition.

On January 18, 2022, FB Financial Corporation (“FB Financial”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this current report on Form 8-K (this “Report”).

Item 7.01. Regulation FD Disclosure.

On January 18, 2022, FB Financial will host a conference call to discuss financial results for the quarter ended December 31, 2021.

On January 18, 2022, FB Financial made available on its website (investors.firstbankonline.com) supplemental financial information for the fourth quarter and year ended December 31, 2021 (the “Supplemental Financial Information”) and an earnings release presentation (the “Earnings Presentation”) that contain additional information about FB Financial’s financial results for the quarter and year ended December 31, 2021.

Copies of the Supplemental Financial Information and the Earnings Presentation are furnished as Exhibit 99.2 and Exhibit 99.3, respectively, to 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 9.01. Financial Statements and Exhibits.

Exhibit Number Description of Exhibit
99.1 Earnings Release issuedJanuary 18, 2022
99.2 Supplemental Financial Information for the quarter endedDecember 31, 2021
99.3 Earnings Presentation dated January 18, 2022
104 Cover Page Interactive Data File (formatted as inline XBRL document)

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
Chief Financial Officer
Date: January 18, 2022

Document

fb_suppa01.jpg

FB Financial Corporation Reports Annual and Fourth Quarter 2021 Results

Reports Q4 diluted EPS of $1.02, ROAA of 1.60%, and annualized Loan Growth (HFI) of 16.9%

NASHVILLE, TENNESSEE—January 18, 2022-- FB Financial Corporation (the “Company”) (NYSE: FBK), parent company of FirstBank, reported net income of $48.8 million, or $1.02 per diluted common share, compared to $0.95 per diluted common share in the same quarter last year and $0.94 in the previous quarter. Adjusted net income was $42.6 million, or $0.89 per diluted common share, compared to $1.14 per diluted common share in the same quarter last year and $0.89 in the previous quarter. The Company's return on average assets for the fourth quarter was 1.60% (1.40% adjusted), return on average common equity was 13.7% (12.0% adjusted) and return on tangible common equity was 16.8% (14.7% adjusted). The Company recorded growth in loans held for investment ("HFI") of $310.0 million in the fourth quarter, or 16.9% annualized. Excluding Paycheck Protection Program ("PPP") loans, the Company recorded HFI loan growth of $315.4 million, or 17.2% annualized.

For the year ended December 31, 2021, the Company reported net income of $190.3 million, or $3.97 per diluted common share, compared to $63.6 million, or $1.67 per diluted common share, for the year ended December 31, 2020. Adjusting for non-operating items, diluted EPS was $3.78 and $3.73 for the years ended December 31, 2021 and 2020, respectively. The Company’s book value per common share at quarter-end was $30.13 and the tangible book value ("TBV") per common share was $24.67.

President and Chief Executive Officer, Christopher T. Holmes stated, “We are pleased with our fourth quarter and full year results. Adjusted loan growth (HFI) of 17% for the quarter and over 10% for the year are both outstanding achievements. I am also proud of our team for their results in 2021 in deposit gathering, credit management and mortgage production, as we grew noninterest bearing deposits over 20%, we experienced net charge-offs of only 8 basis points and we delivered a mortgage contribution of $26.5 million. Our tangible book value, another core metric for us, ended the year at $24.67, which represents an annualized compounded growth rate of 15.5% since becoming a publicly traded company in September of 2016.”

2021 2020 Annualized
(dollars in thousands, except per share data) Fourth Quarter Third Quarter Fourth Quarter 4Q21 / 3Q21<br>% Change 4Q21 / 4Q20<br>% Change
Balance Sheet Highlights
Investment securities $ 1,681,892 $ 1,577,337 $ 1,176,991 26.3 % 42.9 %
Mortgage loans held for sale, at fair value 672,924 755,210 683,770 (43.2) % (1.59) %
Commercial loans held for sale, at fair value 79,299 100,496 215,403 (83.7) % (63.2) %
Loans held for investment (HFI) 7,604,662 7,294,674 7,082,959 16.9 % 7.37 %
Adjusted loans held for investment* 7,600,672 7,285,259 6,870,314 17.2 % 10.6 %
Allowance for credit losses 125,559 139,446 170,389 (39.5) % (26.3) %
Total assets 12,597,686 11,810,290 11,207,330 26.5 % 12.4 %
Customer deposits 10,809,410 10,043,901 9,396,478 30.2 % 15.0 %
Brokered and internet time deposits 27,487 28,017 61,559 (7.51) % (55.3) %
Total deposits 10,836,897 10,071,918 9,458,037 30.1 % 14.6 %
Borrowings 171,778 172,710 238,324 (2.14) % (27.9) %
Total common shareholders' equity 1,432,602 1,400,913 1,291,289 8.97 % 10.9 %
Book value per share $ 30.13 $ 29.36 $ 27.35 10.4 % 10.2 %
Total common shareholders' equity to total<br><br>assets 11.4 % 11.9 % 11.5 %
Tangible book value per common share* $ 24.67 $ 23.90 $ 21.73 12.8 % 13.5 %
Tangible common equity to tangible assets* 9.51 % 9.87 % 9.38 %
* Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 18, 2022.

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FB Financial Corporation

Fourth Quarter 2021 Results

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2021 2020
(dollars in thousands, except share data) Fourth Quarter Third Quarter Fourth Quarter
Results of operations
Net interest income $ 89,755 $ 88,476 $ 85,244
NIM 3.19 % 3.20 % 3.32 %
Provisions for credit losses $ (10,769) $ (2,531) $ (2,920)
Net charge-off ratio 0.12 % 0.13 % 0.58 %
Noninterest income $ 53,219 $ 59,006 $ 80,638
Mortgage banking income $ 31,350 $ 45,384 $ 65,729
Total revenue $ 142,974 $ 147,482 $ 165,882
Noninterest expense $ 90,902 $ 95,007 $ 109,855
Merger expenses $ — $ — $ 9,513
Efficiency ratio 63.6 % 64.4 % 66.2 %
Core efficiency ratio* 67.0 % 64.7 % 58.5 %
Adjusted pre-tax, pre-provision earnings* $ 43,573 $ 51,240 $ 67,988
Total adjusted mortgage banking pre-tax net contribution* $ 710 $ 8,853 $ 22,882
Net income applicable to FB Financial Corporation(1) $ 48,827 $ 45,290 $ 45,602
Diluted earnings per common share $ 1.02 $ 0.94 $ 0.95
Effective tax rate 22.3 % 17.7 % 22.6 %
Adjusted net income* $ 42,551 $ 42,699 $ 54,454
Adjusted diluted earnings per common share* $ 0.89 $ 0.89 $ 1.14
Weighted average number of shares outstanding - fully diluted 47,896,715 48,007,147 47,791,659
Actual shares outstanding - period end 47,549,241 47,707,634 47,220,743
Returns on average:
Assets ("ROAA") 1.60 % 1.51 % 1.63 %
Equity ("ROAE") 13.7 % 12.9 % 14.4 %
Tangible common equity ("ROATCE")* 16.8 % 15.9 % 18.2 %
* Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 18, 2022.
(1) Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth quarters of 2021 and 2020.

Balance Sheet and Net Interest Margin

The Company reported loan balances (HFI) of $7.60 billion, an increase of $310.0 million, or 16.9% annualized, from September 30, 2021. Excluding PPP loans, adjusted loans (HFI) increased $315.4 million, or 17.2% annualized, on a linked quarter basis. The contractual yield on loans decreased to 4.17% in the fourth quarter of 2021 from 4.23% in the third quarter of 2021.

The Company's net interest income on a tax-equivalent basis for the fourth quarter of 2021 was $90.5 million, an increase from $89.2 million in the previous quarter. The Company's net interest margin (“NIM”) was 3.19% for the fourth quarter, compared to 3.20% for the third quarter of 2021. The NIM for the fourth quarter of 2021 was impacted by a 4 basis point decline in the yield on interest-earning assets, offset by a 4 basis point decline in the cost of interest-bearing liabilities on a linked quarter basis. During the quarter, on balance sheet liquidity increased to $2.22 billion, or 18.0% of tangible assets, from $1.75 billion, or 15.1% of tangible assets as of September 30, 2021. As of December 31, 2021, our PPP loan balance decreased to $4.0 million from $9.4 million at September 30, 2021.

During the fourth quarter of 2021, total deposits increased by $765.0 million to $10.84 billion on a linked quarter basis, primarily related to seasonal inflows of public funds. Noninterest bearing deposits increased by $130.6 million, or 19.9% annualized, during the fourth quarter. Excluding mortgage-escrow related deposits, noninterest bearing deposits increased by $193.7 million during the fourth quarter, or 31.8% annualized. The Company's total cost of deposits declined by 4 basis points to 0.22% and the cost of interest-bearing deposits decreased to 0.30% from 0.34% in the previous quarter.

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FB Financial Corporation

Fourth Quarter 2021 Results

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Noninterest Income

Noninterest income was $53.2 million for the fourth quarter of 2021, compared to $59.0 million for the third quarter of 2021 and $80.6 million for the fourth quarter of 2020. Mortgage banking income decreased to $31.4 million in the fourth quarter of 2021, compared to $45.4 million for the third quarter of 2021 and $65.7 million for the fourth quarter of 2020.

Noninterest income increased from a $9.4 million realized gain from two relationships in our commercial loans held for sale portfolio that were resolved during the fourth quarter. The remaining portfolio also had $0.5 million of positive fair value changes compared to the previous quarter. The $9.9 million gain on the commercial loans held for sale portfolio compares to a gain of $0.7 million in the third quarter of 2021.

The Company's total mortgage banking pre-tax net contribution for the fourth quarter of 2021 was $0.7 million, compared to $8.9 million for the third quarter of 2021 and $22.2 million for the fourth quarter of 2020. Interest rate lock commitment volume totaled $1.48 billion in the fourth quarter of 2021 compared to $2.01 billion in the third quarter of 2021 and $2.19 billion in the fourth quarter of 2020.

Chief Financial Officer, Michael Mettee noted, “Our mortgage business had a good year with a pre-tax net contribution of $26.5 million. As anticipated the fourth quarter contribution was down due to seasonality in our purchase business, less refinance volume and lower margins." Mettee continued, “We continue to liquidate the commercial loans held for sale portfolio primarily through pay downs and payoffs, with favorable results. We have been confident in our understanding and management of the portfolio since our merger and continue to have confidence in the valuation of the remaining $79.3 million."

Expense Management

Noninterest expenses were $90.9 million for the fourth quarter of 2021, compared to $95.0 million for the third quarter of 2021 and $109.9 million for the fourth quarter of 2020. Core noninterest expense was $89.5 million for the fourth quarter of 2021, $95.0 million for the third quarter of 2021, and $95.8 million for the fourth quarter of 2020.

During the fourth quarter of 2021, the Company's core efficiency ratio was 67.0%, compared to 64.7% in the third quarter of 2021 and 58.5% for the fourth quarter of 2020. The Banking segment core efficiency ratio was 57.5% versus the previous quarter of 57.9% while the Mortgage segment core efficiency ratio increased to 97.8% for the fourth quarter of 2021 from 80.0% in the previous quarter.

Mettee noted, “The increase in our efficiency ratio was driven by expected seasonality in mortgage revenue. Core expenses in the Banking segment met expectations and total noninterest expenses were slightly elevated due to two charitable contributions totaling $1.4 million that are not run rate expenses but are important investments in the communities we serve.”

Credit Quality

The Company recorded a total net reversal in provisions for credit losses of $10.8 million in the fourth quarter of 2021, including an increase in provision for credit losses on unfunded commitments of $0.9 million. The Company continues to maintain a fortified balance sheet with an allowance for credit losses ("ACL") of $125.6 million as of December 31, 2021, representing 1.65% of loans HFI.

The Company's net charge-offs to average loans was 0.12% for the fourth quarter of 2021 compared to net charge-offs to average loans of 0.13% in the third quarter of 2021. The Company's nonperforming assets as a percentage of total assets remained constant at 0.50% as of December 31, 2021 and September 30, 2021. Nonperforming loans were 0.62% of loans HFI at December 31, 2021, compared to 0.59% at September 30, 2021. There were no deferrals resulting from the COVID-19 pandemic outstanding as of December 31, 2021, compared to $18.0 million outstanding at the end of the third quarter 2021.

Summary

Holmes summarized, "The Company has continued to deliver strong results and capitalize on the economic strength of our markets. As we close the books on a successful 2021, we look ahead into 2022, excited about the opportunities in front of us."

WEBCAST AND CONFERENCE CALL INFORMATION

FB Financial Corporation will host a conference call to discuss the Company's financial results today, January 18, 2022, at 8:00 a.m. (Central Time). To listen to the call, participants should dial 1-888-317-6003 (confirmation code 7100213) approximately 10 minutes prior to the call. A telephonic replay will be available approximately two hours after the call on January 18, 2022, through January 25, 2022, by dialing 1-877-344-7529, confirmation code 5998304.

A live online broadcast of the Company’s quarterly conference call will be available online at https://services.choruscall.com/mediaframe/webcast.html?webcastid=0upLTSIz. The online replay will be available approximately an hour following the conclusion of the live broadcast.

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FB Financial Corporation

Fourth Quarter 2021 Results

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ABOUT FB FINANCIAL CORPORATION

FB Financial Corporation (NYSE: FBK) is a financial 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 82 full-service bank branches across Tennessee, Kentucky, Alabama and North Georgia, and mortgage offices across the Southeast. FirstBank serves five of the largest metropolitan markets in Tennessee and has approximately $12.6 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 January 18, 2022.

BUSINESS SEGMENT RESULTS

The Company has included its business segment financial tables as part of the Supplemental Financial Information, which is available in connection with this Earnings Release. A detailed discussion of our historical business segments is included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2020. Further discussion on the revisions to segment reporting made in the first quarter of 2021 is included in the Company's Form 10-Q filed with the SEC for the period ended March 31, 2021, and investors are encouraged to review that discussion in conjunction with this Earnings Release.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’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,” “project,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company 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 inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) the ongoing effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and the emergence of new variants, and its impact on general economic and financial market conditions and on the Company’s business and the Company’s customers' business, results of operations, asset quality and financial condition, (3) ongoing public response to the vaccines that were developed against the virus as well as the decisions of governmental agencies with respect to vaccines, including recommendations related to booster shots and requirements that seek to mandate that individuals receive or employers require that their employees receive the vaccine, (4) those vaccines' efficacy against the virus, including new variants, (5) changes in government interest rate policies and its impact on the Company’s business, net interest margin, and mortgage operations, (6) the Company’s ability to effectively manage problem credits, (7) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (8) difficulties and delays in integrating acquired businesses or fully realizing costs savings, revenue synergies and other benefits from future and prior acquisitions, (9) the Company’s ability to successfully execute its various business strategies, (10) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (11) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (12) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted

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FB Financial Corporation

Fourth Quarter 2021 Results

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intrusions, (13) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, and (14) general competitive, economic, political, and market conditions. Further information regarding the Company and factors which could affect the forward-looking statements contained herein can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any of the Company’s subsequent filings with the SEC. Many of these factors are beyond the Company’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 Earnings Release, and the Company 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 the Company to predict their occurrence or how they will affect the company.

The Company 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 may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, 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 mortgage pre-tax net contribution, adjusted mortgage pre-tax pre-provision net contribution, adjusted return on average assets and equity, and adjusted pre-tax pre-provision return on average assets and equity. 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 also includes an adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses to loans held for investment, which all exclude the impact of PPP loans. The Company refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, 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 demonstrate 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. 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 corresponding non-GAAP reconciliation tables below in this Earnings Release for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.

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FB Financial Corporation

Fourth Quarter 2021 Results

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Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Fourth Quarter Third Quarter Fourth Quarter
Statement of Income Data
Total interest income $ 97,219 $ 96,665 $ 98,236
Total interest expense 7,464 8,189 12,992
Net interest income 89,755 88,476 85,244
Total noninterest income 53,219 59,006 80,638
Total noninterest expense 90,902 95,007 109,855
Earnings before income taxes and provisions for credit losses 52,072 52,475 56,027
Provisions for credit losses (10,769) (2,531) (2,920)
Income tax expense 14,006 9,716 13,337
Net income applicable to noncontrolling interest 8 — 8
Net income applicable to FB Financial Corporation(c) $ 48,827 $ 45,290 $ 45,602
Net interest income (tax-equivalent basis) $ 90,537 $ 89,230 $ 86,111
Adjusted net income* $ 42,551 $ 42,699 $ 54,454
Adjusted pre-tax, pre-provision earnings* $ 43,573 $ 51,240 $ 67,988
Per Common Share
Diluted net income $ 1.02 $ 0.94 $ 0.95
Adjusted diluted net income* 0.89 0.89 1.14
Book value 30.13 29.36 27.35
Tangible book value* 24.67 23.90 21.73
Weighted average number of shares outstanding - fully diluted 47,896,715 48,007,147 47,791,659
Period-end number of shares 47,549,241 47,707,634 47,220,743
Selected Balance Sheet Data
Cash and cash equivalents $ 1,797,740 $ 1,324,564 $ 1,317,898
Loans held for investment (HFI) 7,604,662 7,294,674 7,082,959
Allowance for credit losses(a) (125,559) (139,446) (170,389)
Mortgage loans held for sale, at fair value 672,924 755,210 683,770
Commercial loans held for sale, at fair value 79,299 100,496 215,403
Investment securities, at fair value 1,681,892 1,577,337 1,176,991
Other real estate owned, net 9,777 10,015 12,111
Total assets 12,597,686 11,810,290 11,207,330
Customer deposits 10,809,410 10,043,901 9,396,478
Brokered and internet time deposits 27,487 28,017 61,559
Total deposits 10,836,897 10,071,918 9,458,037
Borrowings 171,778 172,710 238,324
Total common shareholders' equity 1,432,602 1,400,913 1,291,289
Selected Ratios
Return on average:
Assets 1.60 % 1.51 % 1.63 %
Shareholders' equity 13.7 % 12.9 % 14.4 %
Tangible common equity* 16.8 % 15.9 % 18.2 %
Average shareholders' equity to average assets 11.7 % 11.7 % 11.3 %
Net interest margin (NIM) (tax-equivalent basis) 3.19 % 3.20 % 3.32 %
Efficiency ratio (GAAP) 63.6 % 64.4 % 66.2 %
Core efficiency ratio (tax-equivalent basis)* 67.0 % 64.7 % 58.5 %
Loans HFI to deposit ratio 70.2 % 72.4 % 74.9 %
Total loans to deposit ratio 77.1 % 80.9 % 84.4 %
Yield on interest-earning assets 3.45 % 3.49 % 3.82 %
Cost of interest-bearing liabilities 0.38 % 0.42 % 0.73 %
Cost of total deposits 0.22 % 0.26 % 0.46 %
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI(a) 1.65 % 1.91 % 2.41 %
Adjusted allowance for credit losses as a percentage of loans HFI*(a) 1.65 % 1.91 % 2.48 %
Net charge-offs as a percentage of average loans HFI 0.12 % 0.13 % 0.58 %
Nonperforming loans HFI as a percentage of total loans HFI 0.62 % 0.59 % 0.91 %
Nonperforming assets as a percentage of total assets 0.50 % 0.50 % 0.75 %
Preliminary capital ratios (Consolidated)
Total common shareholders' equity to assets 11.4 % 11.9 % 11.5 %
Tangible common equity to tangible assets* 9.51 % 9.87 % 9.38 %
Tier 1 capital (to average assets) 10.5 % 10.4 % 10.0 %
Tier 1 capital (to risk-weighted assets)(b) 12.6 % 12.7 % 12.0 %
Total capital (to risk-weighted assets)(b) 14.4 % 14.6 % 15.0 %
Common equity Tier 1 (to risk-weighted assets) (CET1)(b) 12.3 % 12.4 % 11.7 %

(a) Excludes reserve for credit losses on unfunded commitments of $14,380, $13,503, and $16,378 recorded in accrued expenses and other liabilities at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

(b) We calculate our risk-weighted assets using the standardized method of the Basel III Framework.

(c) Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in fourth quarter of 2021 and fourth quarter of 2020.

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 18, 2022.

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FB Financial Corporation

Fourth Quarter 2021 Results

Page 7

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020
Adjusted net income Third Quarter Fourth Quarter
Income before income taxes 62,841 $ 55,006 $ 58,947
Plus merger and conversion expenses — 9,513
Less other non-operating items(1) 1,235 (2,448)
Adjusted pre-tax net income 53,771 70,908
Income tax expense, adjusted(2) 11,072 16,454
Adjusted net income 42,551 $ 42,699 $ 54,454
Weighted average common shares outstanding - fully diluted 48,007,147 47,791,659
Adjusted diluted earnings per common share
Diluted earnings per common share 1.02 $ 0.94 $ 0.95
Plus merger and conversion expenses — 0.20
Less other non-operating items 0.02 (0.05)
Less tax effect 0.03 0.06
Adjusted diluted earnings per common share 0.89 $ 0.89 $ 1.14
(1) 4Q21 includes 9,921 gain from change in fair value of commercial loans held for sale acquired from Franklin and 1,422 related to certain nonrecurring charitable contributions; 3Q21 includes a 740 gain from change in fair value of commercial loans held for sale acquired from Franklin, a 1,510 loss on swap cancellation, and a gain of 2,005 from sales other real estate owned; 4Q20 includes 4,533 FHLB prepayment penalty offset by 715 cash life insurance benefit and 1,370 gain from change in fair value of commercial loans held for sale acquired from Franklin.
(2) 3Q21 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin.
Adjusted net income 2020 2019
Income before income taxes 243,051 $ 82,461 $ 109,539
Plus merger, conversion and offering expenses 34,879 7,380
Plus initial provision for credit losses on acquired loans and unfunded commitments 66,136 —
Less other non-operating items(1) (4,400) —
Adjusted pre-tax net income 187,876 116,919
Income tax expense, adjusted(2) 45,944 27,648
Adjusted net income 181,071 $ 141,932 $ 89,271
Weighted average common shares outstanding - fully diluted 38,099,744 31,402,897
Adjusted diluted earnings per share
Diluted earnings per common share 3.97 $ 1.67 $ 2.65
Plus merger, conversion and offering expenses 0.92 0.24
Plus initial provision for credit losses on acquired loans and unfunded commitments 1.74 —
Less other non-operating items (0.11) —
Less tax effect 0.71 0.06
Adjusted diluted earnings per common share 3.78 $ 3.73 $ 2.83
(1) 2021 includes a 11,172 gain from change in fair value on commercial loans held for sale acquired from Franklin, a loss on swap cancellation of 1,510, a 2,005 gain on other real estate owned, a 787 gain from lease terminations and 1,422 related to certain charitable contributions; 2020 includes 6,838 FHLB prepayment penalties, 1,505 losses on other real estate owned offset by 715 cash life insurance benefit and 3,228 gain from change in fair value on commercial loans held for sale acquired from Franklin.
(2) 2021 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin.

All values are in US Dollars.

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FB Financial Corporation

Fourth Quarter 2021 Results

Page 8

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Adjusted pre-tax pre-provision earnings Fourth Quarter Third Quarter Fourth Quarter
Income before income taxes $ 62,841 $ 55,006 $ 58,947
Plus provisions for credit losses (10,769) (2,531) (2,920)
Pre-tax pre-provision earnings 52,072 52,475 56,027
Plus merger and conversion expenses — — 9,513
Less other non-operating items 8,499 1,235 (2,448)
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 67,988
2021 2020
Core efficiency ratio (tax-equivalent basis) Fourth Quarter Third Quarter Fourth Quarter
Total noninterest expense $ 90,902 $ 95,007 $ 109,855
Less merger and conversion expenses — — 9,513
Less FHLB prepayment penalties — — 4,533
Less certain charitable contributions 1,422 — —
Core noninterest expense $ 89,480 $ 95,007 $ 95,809
Net interest income (tax-equivalent basis) $ 90,537 $ 89,230 $ 86,111
Total noninterest income 53,219 59,006 80,638
Less gain on change in fair value on commercial loans held for sale 9,921 740 1,370
Less cash life insurance benefit — — 715
Less loss on swap cancellation — (1,510) —
Less gain (loss) on sales or write-downs of other real estate owned and other <br>assets 187 2,182 (57)
Less gain from securities, net 46 51 1,013
Core noninterest income 43,065 57,543 77,597
Core revenue $ 133,602 $ 146,773 $ 163,708
Efficiency ratio (GAAP)(a) 63.6 % 64.4 % 66.2 %
Core efficiency ratio (tax-equivalent basis) 67.0 % 64.7 % 58.5 %
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue

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FB Financial Corporation

Fourth Quarter 2021 Results

Page 9

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
During the first quarter of 2021, the Company re-evaluated its reportable business segments to align all retail mortgage activities with the Mortgage segment. Prior to 2021, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking segment. The results of mortgage retail footprint have been assigned to the Mortgage segment for all periods presented. As such, 4Q20 historical segment efficiency ratios and mortgage contribution have been recast for consistency with these changes.
2021 2020
Banking segment core efficiency ratio (tax equivalent) Fourth Quarter Third Quarter Fourth Quarter
Core noninterest expense $ 89,480 $ 95,007 $ 95,809
Less Mortgage segment noninterest expense 30,798 36,230 42,884
Core Banking segment noninterest expense $ 58,682 $ 58,777 $ 52,925
Core revenue $ 133,602 $ 146,773 $ 163,708
Less Core Mortgage segment total revenue 31,489 45,284 65,766
Core Banking segment total revenue $ 102,113 $ 101,489 $ 97,942
Banking segment core efficiency ratio (tax-equivalent basis) 57.5 % 57.9 % 54.0 %
Mortgage segment core efficiency ratio (tax equivalent)
Mortgage segment noninterest expense $ 30,798 $ 36,230 $ 43,609
Less mortgage segment merger expense — — 725
Core Mortgage segment noninterest expense $ 30,798 $ 36,230 $ 42,884
Mortgage segment total revenue 31,508 45,083 65,766
Less gain (loss) on sales or write-downs of other real estate<br>       owned 19 (201) —
Core Mortgage segment total revenue $ 31,489 $ 45,284 $ 65,766
Mortgage segment core efficiency ratio (tax-equivalent basis) 97.8 % 80.0 % 65.2 %
2021 2020
Adjusted Mortgage contribution Fourth Quarter Third Quarter Fourth Quarter
Mortgage pre-tax net contribution $ 710 $ 8,853 $ 22,157
Plus Mortgage merger expense — — 725
Adjusted Mortgage pre-tax net contribution $ 710 $ 8,853 $ 22,882
Pre-tax pre-provision earnings 52,072 52,475 56,027
% total Mortgage pre-tax pre-provision net contribution 1.36 % 16.9 % 39.5 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 67,988
% total adjusted Mortgage pre-tax pre-provision net contribution 1.63 % 17.3 % 33.7 %
2021 2020
Tangible assets and equity Fourth Quarter Third Quarter Fourth Quarter
Tangible assets
Total assets $ 12,597,686 $ 11,810,290 $ 11,207,330
Less goodwill 242,561 242,561 242,561
Less intangibles, net 16,953 18,248 22,426
Tangible assets $ 12,338,172 $ 11,549,481 $ 10,942,343
Tangible common equity
Total common shareholders' equity $ 1,432,602 $ 1,400,913 $ 1,291,289
Less goodwill 242,561 242,561 242,561
Less intangibles, net 16,953 18,248 22,426
Tangible common equity $ 1,173,088 $ 1,140,104 $ 1,026,302
Common shares outstanding 47,549,241 47,707,634 47,220,743
Book value per common share $ 30.13 $ 29.36 $ 27.35
Tangible book value per common share $ 24.67 $ 23.90 $ 21.73
Total common shareholders' equity to total assets 11.4 % 11.9 % 11.5 %
Tangible common equity to tangible assets 9.51 % 9.87 % 9.38 %

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FB Financial Corporation

Fourth Quarter 2021 Results

Page 10

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Return on average tangible common equity Fourth Quarter Third Quarter Fourth Quarter
Average common shareholders' equity $ 1,411,987 $ 1,389,201 $ 1,261,101
Less average goodwill 242,561 242,561 242,983
Less average intangibles, net 17,580 18,950 23,178
Average tangible common equity $ 1,151,846 $ 1,127,690 $ 994,940
Net income $ 48,827 $ 45,290 $ 45,602
Return on average common equity 13.7 % 12.9 % 14.4 %
Return on average tangible common equity 16.8 % 15.9 % 18.2 %
Adjusted net income $ 42,551 $ 42,699 $ 54,454
Adjusted return on average tangible common equity 14.7 % 15.0 % 21.8 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 67,988
Adjusted pre-tax pre-provision return on average tangible common equity 15.0 % 18.0 % 27.2 %
2021 2020
Adjusted return on average assets and equity Fourth Quarter Third Quarter Fourth Quarter
Net income $ 48,827 $ 45,290 $ 45,602
Average assets 12,085,817 11,915,062 11,111,163
Average equity 1,411,987 1,389,201 1,261,101
Return on average assets 1.60 % 1.51 % 1.63 %
Return on average equity 13.7 % 12.9 % 14.4 %
Adjusted net income $ 42,551 $ 42,699 $ 54,454
Adjusted return on average assets 1.40 % 1.42 % 1.95 %
Adjusted return on average equity 12.0 % 12.2 % 17.2 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 67,988
Adjusted pre-tax pre-provision return on average assets 1.43 % 1.71 % 2.43 %
Adjusted pre-tax pre-provision return on average equity 12.2 % 14.6 % 21.4 % 2021 2020
--- --- --- --- --- --- --- --- --- ---
Adjusted allowance for credit losses to loans held for investment Fourth Quarter Third Quarter Fourth Quarter
Allowance for credit losses $ 125,559 $ 139,446 $ 170,389
Less allowance for credit losses attributed to PPP loans — 2 34
Adjusted allowance for credit losses $ 125,559 $ 139,444 $ 170,355
Loans held for investment $ 7,604,662 $ 7,294,674 $ 7,082,959
Less PPP loans 3,990 9,415 212,645
Adjusted loans held for investment $ 7,600,672 $ 7,285,259 $ 6,870,314
Allowance for credit losses to loans held for investment 1.65 % 1.91 % 2.41 %
Adjusted allowance for credit losses to loans held for investment 1.65 % 1.91 % 2.48 %

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Document

logoa07.jpg

Fourth Quarter 2021

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 may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, 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 mortgage pre-tax net contribution, adjusted mortgage pre-tax pre-provision net contribution, adjusted return on average assets and equity, and adjusted pre-tax pre-provision return on average assets and equity. 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 also includes an adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses to loans held for investment, which all exclude the impact of PPP loans. The Company refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, 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 demonstrate 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. 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 corresponding non-GAAP reconciliation tables in this Supplemental Financial Information dated January 18, 2022, for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Statement of Income Data
Total interest income $ 97,219 $ 96,665 $ 96,329 $ 94,785 $ 98,236
Total interest expense 7,464 8,189 9,766 12,209 12,992
Net interest income 89,755 88,476 86,563 82,576 85,244
Total noninterest income 53,219 59,006 49,300 66,730 80,638
Total noninterest expense 90,902 95,007 92,960 94,698 109,855
Earnings before income taxes and provisions for credit losses 52,072 52,475 42,903 54,608 56,027
Provisions for credit losses (10,769) (2,531) (13,839) (13,854) (2,920)
Income tax expense 14,006 9,716 13,440 15,588 13,337
Net income applicable to noncontrolling interest 8 — 8 — 8
Net income applicable to FB Financial Corporation(c) $ 48,827 $ 45,290 $ 43,294 $ 52,874 $ 45,602
Net interest income (tax-equivalent basis) $ 90,537 $ 89,230 $ 87,321 $ 83,368 $ 86,111
Adjusted net income* $ 42,551 $ 42,699 $ 42,317 $ 53,505 $ 54,454
Adjusted pre-tax, pre-provision earnings* $ 43,573 $ 51,240 $ 41,357 $ 55,461 $ 67,988
Per Common Share
Diluted net income $ 1.02 $ 0.94 $ 0.90 $ 1.10 $ 0.95
Adjusted diluted net income* 0.89 0.89 0.88 1.12 1.14
Book value 30.13 29.36 28.96 28.08 27.35
Tangible book value* 24.67 23.90 23.43 22.51 21.73
Weighted average number of shares outstanding - fully diluted 47,896,715 48,007,147 47,993,773 47,969,106 47,791,659
Period-end number of shares 47,549,241 47,707,634 47,360,950 47,331,680 47,220,743
Selected Balance Sheet Data
Cash and cash equivalents $ 1,797,740 $ 1,324,564 $ 1,717,097 $ 1,895,133 $ 1,317,898
Loans held for investment (HFI) 7,604,662 7,294,674 7,198,954 7,047,342 7,082,959
Allowance for credit losses(a) (125,559) (139,446) (144,663) (157,954) (170,389)
Mortgage loans held for sale 672,924 755,210 697,407 834,779 683,770
Commercial loans held for sale 79,299 100,496 124,122 174,983 215,403
Investment securities, at fair value 1,681,892 1,577,337 1,409,175 1,229,845 1,176,991
Other real estate owned, net 9,777 10,015 11,986 11,177 12,111
Total assets 12,597,686 11,810,290 11,918,367 11,935,826 11,207,330
Customer deposits 10,809,410 10,043,901 10,163,056 10,219,173 9,396,478
Brokered and internet time deposits 27,487 28,017 40,900 37,713 61,559
Total deposits 10,836,897 10,071,918 10,203,956 10,256,886 9,458,037
Borrowings 171,778 172,710 183,962 180,179 238,324
Total common shareholders' equity 1,432,602 1,400,913 1,371,721 1,329,103 1,291,289
Selected Ratios
Return on average:
Assets 1.60 % 1.51 % 1.46 % 1.86 % 1.63 %
Shareholders' equity 13.7 % 12.9 % 13.0 % 16.5 % 14.4 %
Tangible common equity* 16.8 % 15.9 % 16.1 % 20.6 % 18.2 %
Average shareholders' equity to average assets 11.7 % 11.7 % 11.3 % 11.3 % 11.3 %
Net interest margin (NIM) (tax-equivalent basis) 3.19 % 3.20 % 3.18 % 3.19 % 3.32 %
Efficiency ratio (GAAP) 63.6 % 64.4 % 68.4 % 63.4 % 66.2 %
Core efficiency ratio (tax-equivalent basis)* 67.0 % 64.7 % 68.9 % 63.0 % 58.5 %
Loans HFI to deposit ratio 70.2 % 72.4 % 70.6 % 68.7 % 74.9 %
Total loans to deposit ratio 77.1 % 80.9 % 78.6 % 78.6 % 84.4 %
Yield on interest-earning assets 3.45 % 3.49 % 3.53 % 3.66 % 3.82 %
Cost of interest-bearing liabilities 0.38 % 0.42 % 0.49 % 0.65 % 0.73 %
Cost of total deposits 0.22 % 0.26 % 0.31 % 0.41 % 0.46 %
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI(a) 1.65 % 1.91 % 2.01 % 2.24 % 2.41 %
Adjusted allowance for credit losses as a percentage of loans HFI*(a) 1.65 % 1.91 % 2.03 % 2.29 % 2.48 %
Net charge-offs as a percentage of average loans HFI 0.12 % 0.13 % 0.02 % 0.05 % 0.58 %
Nonperforming loans HFI as a percentage of total loans HFI 0.62 % 0.59 % 0.83 % 0.94 % 0.91 %
Nonperforming assets as a percentage of total assets 0.50 % 0.50 % 0.66 % 0.77 % 0.75 %
Preliminary capital ratios (Consolidated)
Total common shareholders' equity to assets 11.4 % 11.9 % 11.5 % 11.1 % 11.5 %
Tangible common equity to tangible assets* 9.51 % 9.87 % 9.52 % 9.13 % 9.38 %
Tier 1 capital (to average assets) 10.5 % 10.4 % 10.1 % 10.1 % 10.0 %
Tier 1 capital (to risk-weighted assets)(b) 12.6 % 12.7 % 12.7 % 12.3 % 12.0 %
Total capital (to risk-weighted assets)(b) 14.4 % 14.6 % 14.9 % 14.6 % 15.0 %
Common equity Tier 1 (to risk-weighted assets) (CET1)(b) 12.3 % 12.4 % 12.4 % 12.0 % 11.7 %

(a) Excludes reserve for credit losses on unfunded commitments of $14,380, $13,503, $13,202, $14,156, and $16,378 recorded in accrued expenses and other liabilities as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(b) We calculate our risk-weighted assets using the standardized method of the Basel III Framework.

(c) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth and second quarter of 2021 and fourth quarter of 2020.

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information. Investors are encouraged to refer to the discussion and reconciliation of non-GAAP measures included in the Earnings Release and Earnings Release Presentation dated January 18, 2022.

FB Financial Corporation 4
Consolidated Statements of Income
--- --- --- --- --- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except Share Data and %)
Q4 2021 Q4 2021
vs. vs.
2021 2020 Q3 2021 Q4 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Percent variance Percent variance
Interest income:
Interest and fees on loans $ 89,996 $ 89,993 $ 89,861 $ 89,412 $ 93,246 — % (3.49) %
Interest on securities
Taxable 4,534 3,989 3,844 2,819 2,306 13.7 % 96.6 %
Tax-exempt 1,885 1,883 1,933 1,956 2,120 0.11 % (11.1) %
Other 804 800 691 598 564 0.50 % 42.6 %
Total interest income 97,219 96,665 96,329 94,785 98,236 0.57 % (1.04) %
Interest expense:
Deposits 5,848 6,596 7,919 9,826 10,809 (11.3) % (45.9) %
Borrowings 1,616 1,593 1,847 2,383 2,183 1.44 % (26.0) %
Total interest expense 7,464 8,189 9,766 12,209 12,992 (8.85) % (42.5) %
Net interest income 89,755 88,476 86,563 82,576 85,244 1.45 % 5.29 %
Provision for credit losses (11,646) (2,832) (12,885) (11,632) (3,231) 311.2 % 260.4 %
Provision for credit losses on unfunded commitments 877 301 (954) (2,222) 311 191.4 % 182.0 %
Net interest income after provisions for credit <br>   losses 100,524 91,007 100,402 96,430 88,164 10.5 % 14.0 %
Noninterest income:
Mortgage banking income 31,350 45,384 35,499 55,332 65,729 (30.9) % (52.3) %
Service charges on deposit accounts 2,817 2,612 2,266 2,339 2,577 7.85 % 9.31 %
ATM and interchange fees 5,310 4,868 5,381 4,341 4,262 9.08 % 24.6 %
Investment services and trust income 1,040 2,511 2,999 2,008 2,187 (58.6) % (52.4) %
Gain from securities, net 46 51 144 83 1,013 (9.80) % (95.5) %
Gain (loss) on sales or write-downs of other real estate <br>owned 26 2,005 (23) 496 (123) (98.7) % (121.1) %
Gain (loss) from other assets 161 177 (4) (11) 66 (9.04) % 143.9 %
Other income 12,469 1,398 3,038 2,142 4,927 791.9 % 153.1 %
Total noninterest income 53,219 59,006 49,300 66,730 80,638 (9.81) % (34.0) %
Total revenue 142,974 147,482 135,863 149,306 165,882 (3.06) % (13.8) %
Noninterest expenses:
Salaries, commissions and employee benefits 58,562 62,818 62,367 64,571 67,212 (6.78) % (12.9) %
Occupancy and equipment expense 5,549 5,979 5,356 5,849 5,813 (7.19) % (4.54) %
Legal and professional fees 2,460 2,177 2,090 2,434 2,227 13.0 % 10.46 %
Data processing 2,531 2,595 2,542 2,319 3,161 (2.47) % (19.9) %
Merger costs — — — — 9,513 — % (100.0) %
Amortization of core deposits and other intangibles 1,299 1,344 1,394 1,440 1,498 (3.35) % (13.3) %
Advertising 3,909 4,200 3,559 2,253 2,826 (6.93) % 38.3 %
Other expense 16,592 15,894 15,652 15,832 17,605 4.39 % (5.75) %
Total noninterest expense 90,902 95,007 92,960 94,698 109,855 (4.32) % (17.3) %
Income before income taxes 62,841 55,006 56,742 68,462 58,947 14.2 % 6.61 %
Income tax expense 14,006 9,716 13,440 15,588 13,337 44.2 % 5.02 %
Net income applicable to FB Financial<br><br>Corporation and noncontrolling interest 48,835 45,290 43,302 52,874 45,610 7.83 % 7.07 %
Net income applicable to noncontrolling interest 8 — 8 — 8 100.0 % — %
Net income applicable to FB Financial<br><br>Corporation $ 48,827 $ 45,290 $ 43,294 $ 52,874 $ 45,602 7.81 % 7.07 %
Weighted average common shares outstanding:
Basic 47,683,682 47,412,214 47,351,969 47,278,865 47,204,738 0.57 % 1.01 %
Fully diluted 47,896,715 48,007,147 47,993,773 47,969,106 47,791,659 (0.23) % 0.22 %
Earnings per common share:
Basic $ 1.02 $ 0.96 $ 0.91 $ 1.12 $ 0.97 6.25 % 5.15 %
Fully diluted 1.02 0.94 0.90 1.10 0.95 8.51 % 7.37 %
Fully diluted - adjusted* 0.89 0.89 0.88 1.12 1.14 — % (21.9) %

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information. Investors are encouraged to refer to the discussion and reconciliation of non-GAAP measures included in the Earnings Release and Earnings Release Presentation dated January 18, 2022.

FB Financial Corporation 5
Consolidated Statements of Income
--- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except Share Data and %)
2021
For the Year Ended vs.
December 31, 2020
2021 2020 Percent variance
Interest income:
Interest and fees on loans $ 359,262 $ 294,596 22.0 %
Interest on securities
Taxable 15,186 10,267 47.9 %
Tax-exempt 7,657 7,076 8.21 %
Other 2,893 2,705 6.95 %
Total interest income 384,998 314,644 22.4 %
Interest expense:
Deposits 30,189 42,859 (29.6) %
Borrowings 7,439 6,127 21.4 %
Total interest expense 37,628 48,986 (23.2) %
Net interest income 347,370 265,658 30.8 %
Provision for credit losses (38,995) 94,606 (141.2) %
Provision for credit losses on unfunded commitments (1,998) 13,361 (115.0) %
Net interest income after provisions for credit losses 388,363 157,691 146.3 %
Noninterest income:
Mortgage banking income 167,565 255,328 (34.4) %
Service charges on deposit accounts 10,034 9,160 9.54 %
ATM and interchange fees 19,900 14,915 33.4 %
Investment services and trust income 8,558 7,080 20.9 %
Gain from securities, net 324 1,631 (80.1) %
Gain (loss) on sales or write-downs of other real estate owned 2,504 (1,491) 267.9 %
Gain (loss) from other assets 323 (90) 458.9 %
Other income 19,047 15,322 24.3 %
Total noninterest income 228,255 301,855 (24.4) %
Total revenue 575,625 567,513 1.43 %
Noninterest expenses:
Salaries, commissions and employee benefits 248,318 233,768 6.22 %
Occupancy and equipment expense 22,733 18,979 19.8 %
Legal and professional fees 9,161 7,654 19.7 %
Data processing 9,987 11,390 (12.3) %
Merger costs — 34,879 (100.0) %
Amortization of core deposit and other intangibles 5,477 5,323 2.89 %
Advertising 13,921 10,062 38.4 %
Other expense 63,970 55,030 16.2 %
Total noninterest expense 373,567 377,085 (0.93) %
Income before income taxes 243,051 82,461 194.7 %
Income tax expense 52,750 18,832 180.1 %
Net income applicable to noncontrolling interest and FB Financial Corporation 190,301 63,629 199.1 %
Net income applicable to noncontrolling interests 16 8 100.0 %
Net income applicable to FB Financial Corporation $ 190,285 $ 63,621 199.1 %
Weighted average common shares outstanding:
Basic 47,431,102 37,621,720 26.1 %
Fully diluted 47,955,880 38,099,744 25.9 %
Earnings per common share:
Basic $ 4.01 $ 1.69 137.3 %
Fully diluted 3.97 1.67 137.7 %
Fully diluted - adjusted* 3.78 3.73 1.34 %

*This measure is considered a non-GAAP financial measure. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.

FB Financial Corporation 6
Consolidated Balance Sheets
--- --- --- --- --- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except %)
Annualized
Q4 2021 Q4 2021
vs. vs.
2021 2020 Q3 2021 Q4 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Percent variance Percent variance
ASSETS
Cash and due from banks $ 91,333 $ 100,568 $ 60,908 $ 206,250 $ 110,991 (36.4) % (17.7) %
Federal funds sold and reverse repurchase agreements 128,087 145,333 59,321 104,153 121,153 (47.1) % 5.72 %
Interest-bearing deposits in financial institutions 1,578,320 1,078,663 1,596,868 1,584,730 1,085,754 183.8 % 45.4 %
Cash and cash equivalents 1,797,740 1,324,564 1,717,097 1,895,133 1,317,898 141.7 % 36.4 %
Investments:
Available-for-sale debt securities, at fair value 1,678,525 1,572,558 1,404,372 1,225,178 1,172,400 26.7 % 43.2 %
Equity securities, at fair value 3,367 4,779 4,803 4,667 4,591 (117.2) % (26.7) %
Federal Home Loan Bank stock, at cost 32,217 27,601 29,411 31,757 31,232 66.4 % 3.15 %
Mortgage loans held for sale, at fair value 672,924 755,210 697,407 834,779 683,770 (43.2) % (1.59) %
Commercial loans held for sale, at fair value 79,299 100,496 124,122 174,983 215,403 (83.7) % (63.2) %
Loans held for investment 7,604,662 7,294,674 7,198,954 7,047,342 7,082,959 16.9 % 7.37 %
Less: allowance for credit losses 125,559 139,446 144,663 157,954 170,389 (39.5) % (26.3) %
Net loans 7,479,103 7,155,228 7,054,291 6,889,388 6,912,570 18.0 % 8.20 %
Premises and equipment, net 143,739 144,737 142,596 143,467 145,115 (2.74) % (0.95) %
Other real estate owned, net 9,777 10,015 11,986 11,177 12,111 (9.43) % (19.3) %
Operating lease right-of-use assets 41,686 44,006 45,423 48,453 49,537 (20.9) % (15.8) %
Interest receivable 38,528 41,393 42,083 44,393 43,603 (27.5) % (11.6) %
Mortgage servicing rights, at fair value 115,512 110,591 101,615 104,192 79,997 17.7 % 44.4 %
Goodwill 242,561 242,561 242,561 242,561 242,561 — % — %
Core deposit and other intangibles, net 16,953 18,248 19,592 20,986 22,426 (28.2) % (24.4) %
Other assets 245,755 258,303 281,008 264,712 274,116 (19.3) % (10.3) %
Total assets $ 12,597,686 $ 11,810,290 $ 11,918,367 $ 11,935,826 $ 11,207,330 26.5 % 12.4 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing $ 2,740,214 $ 2,609,569 $ 2,484,982 $ 2,431,077 $ 2,274,103 19.9 % 20.5 %
Interest-bearing checking 3,418,666 2,850,795 3,015,253 3,097,648 2,491,765 79.0 % 37.2 %
Money market and savings 3,546,936 3,424,065 3,421,281 3,347,731 3,254,915 14.2 % 8.97 %
Customer time deposits 1,103,594 1,159,472 1,241,540 1,342,717 1,375,695 (19.1) % (19.8) %
Brokered and internet time deposits 27,487 28,017 40,900 37,713 61,559 (7.51) % (55.3) %
Total deposits 10,836,897 10,071,918 10,203,956 10,256,886 9,458,037 30.1 % 14.6 %
Borrowings 171,778 172,710 183,962 180,179 238,324 (2.14) % (27.9) %
Operating lease liabilities 46,367 48,875 50,396 54,232 55,187 (20.4) % (16.0) %
Accrued expenses and other liabilities 109,949 115,781 108,239 115,333 164,400 (20.0) % (33.1) %
Total liabilities 11,164,991 10,409,284 10,546,553 10,606,630 9,915,948 28.8 % 12.6 %
Shareholders' equity:
Common stock, $1 par value 47,549 47,708 47,361 47,332 47,222 (1.32) % 0.69 %
Additional paid-in capital 892,529 897,428 902,782 900,521 898,847 (2.17) % (0.70) %
Retained earnings 486,666 443,140 403,173 365,192 317,625 39.0 % 53.2 %
Accumulated other comprehensive income, net 5,858 12,637 18,405 16,058 27,595 (212.8) % (78.8) %
Total common shareholders' equity 1,432,602 1,400,913 1,371,721 1,329,103 1,291,289 8.97 % 10.9 %
Noncontrolling interest 93 93 93 93 93 — % — %
Total equity 1,432,695 1,401,006 1,371,814 1,329,196 1,291,382 8.97 % 10.9 %
Total liabilities and shareholders' equity $ 12,597,686 $ 11,810,290 $ 11,918,367 $ 11,935,826 $ 11,207,330 26.5 % 12.4 %
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
December 31, 2021 September 30, 2021
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) $ 7,452,342 $ 84,315 4.49 % $ 7,245,313 $ 84,115 4.61 %
Mortgage loans held for sale(b) 700,044 4,765 2.70 % 709,654 4,687 2.62 %
Commercial loans held for sale 87,568 1,033 4.68 % 108,863 1,282 4.67 %
Securities:(b)
Taxable 1,270,749 4,534 1.42 % 1,117,647 3,989 1.42 %
Tax-exempt(a) 318,579 2,550 3.18 % 311,151 2,546 3.25 %
Total securities(a) 1,589,328 7,084 1.77 % 1,428,798 6,535 1.81 %
Federal funds sold and reverse repurchase agreements 129,379 183 0.56 % 145,315 135 0.37 %
Interest-bearing deposits with other financial institutions 1,280,183 479 0.15 % 1,404,772 508 0.14 %
FHLB stock 28,525 142 1.98 % 28,422 157 2.19 %
Total interest-earning assets(a) 11,267,369 98,001 3.45 % 11,071,137 97,419 3.49 %
Noninterest-earning assets:
Cash and due from banks 102,398 107,263
Allowance for credit losses (139,684) (144,652)
Other assets 855,734 881,314
Total noninterest-earning assets 818,448 843,925
Total assets $ 12,085,817 $ 11,915,062
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 2,983,741 $ 2,169 0.29 % $ 2,937,273 $ 2,298 0.31 %
Money market(e) 3,017,574 2,053 0.27 % 2,997,595 2,322 0.31 %
Savings deposits 463,002 63 0.05 % 439,470 60 0.05 %
Customer time deposits(e) 1,123,955 1,492 0.53 % 1,200,760 1,840 0.61 %
Brokered and internet time deposits(e) 27,812 71 1.01 % 32,009 76 0.94 %
Time deposits 1,151,767 1,563 0.54 % 1,232,769 1,916 0.62 %
Total interest-bearing deposits 7,616,084 5,848 0.30 % 7,607,107 6,596 0.34 %
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased 41,338 21 0.20 % 40,437 20 0.20 %
Subordinated debt 129,493 1,591 4.87 % 129,395 1,565 4.80 %
Other borrowings 1,525 4 1.04 % 1,547 8 2.05 %
Total other interest-bearing liabilities 172,356 1,616 3.72 % 171,379 1,593 3.69 %
Total interest-bearing liabilities 7,788,440 7,464 0.38 % 7,778,486 8,189 0.42 %
Noninterest-bearing liabilities:
Demand deposits 2,747,394 2,596,650
Other liabilities 137,903 150,632
Total noninterest-bearing liabilities 2,885,297 2,747,282
Total liabilities 10,673,737 10,525,768
Total common shareholders' equity 1,411,987 1,389,201
Noncontrolling interest 93 93
Total equity 1,412,080 1,389,294
Total liabilities and shareholders' equity $ 12,085,817 $ 11,915,062
Net interest income(a) $ 90,537 $ 89,230
Interest rate spread(a) 3.07 % 3.07 %
Net interest margin(a) 3.19 % 3.20 %
Cost of total deposits 0.22 % 0.26 %
Average interest-earning assets to average interest-bearing liabilities 144.7 % 142.3 %
Tax-equivalent adjustment $ 782 $ 754
Loans HFI yield components:
Contractual interest rate(a)(c) $ 78,324 4.17 % $ 77,150 4.23 %
Origination and other loan fee income(c) 6,084 0.33 % 6,377 0.35 %
(Amortization) accretion on purchased loans (726) (0.04) % 157 0.01 %
Nonaccrual interest 633 0.03 % 431 0.02 %
Total loans HFI yield $ 84,315 4.49 % $ 84,115 4.61 %

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

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

(c) Includes $16 and $82 of loan contractual interest and $137 and $441 of loan fees related to PPP loans for the three months ended December 31, 2021 and September 30, 2021, respectively.

(d) Includes $6,829 and $33,002 of average PPP loan balances for the three months ended December 31, 2021 and September 30, 2021, respectively.

(e) Includes $932 and $931 of interest rate premium accretion on money market deposits, $316 and $426 of interest rate premium accretion on customer time deposits and $83 and $99 of interest rate premium accretion on brokered and internet deposits for the three months ended December 31, 2021 and September 30, 2021, respectively.

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
June 30, 2021 March 31, 2021 December 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 Average<br>balances Interest<br>income/<br>expense Average<br>yield/<br>rate
Interest-earning assets:
Loans HFI(a)(d) $ 7,085,300 $ 83,364 4.72 % $ 7,000,416 $ 83,067 4.81 % $ 7,139,870 $ 86,398 4.81 %
Mortgage loans held for sale(b) 726,782 4,948 2.73 % 648,054 4,290 2.68 % 621,076 4,138 2.65 %
Commercial loans held for sale 152,699 1,626 4.27 % 197,820 2,157 4.42 % 236,676 2,830 4.76 %
Securities:(b)
Taxable 976,170 3,844 1.58 % 830,686 2,819 1.38 % 744,161 2,306 1.23 %
Tax-exempt(a) 323,902 2,614 3.24 % 334,303 2,646 3.21 % 359,509 2,867 3.17 %
Total securities(a) 1,300,072 6,458 1.99 % 1,164,989 5,465 1.90 % 1,103,670 5,173 1.86 %
Federal funds sold 106,257 41 0.15 % 133,813 20 0.06 % 95,266 30 0.13 %
Interest-bearing deposits with other financial institutions 1,614,106 494 0.12 % 1,427,184 421 0.12 % 1,082,004 375 0.14 %
FHLB stock 31,731 156 1.97 % 31,461 157 2.02 % 31,232 159 2.03 %
Total interest-earning assets(a) 11,016,947 97,087 3.53 % 10,603,737 95,557 3.66 % 10,309,794 99,103 3.82 %
Noninterest-earning assets:
Cash and due from banks 134,501 172,756 73,279
Allowance for credit losses (157,990) (171,380) (183,932)
Other assets 906,992 903,670 912,022
Total noninterest-earning assets 883,503 905,046 801,369
Total assets $ 11,900,450 $ 11,508,783 $ 11,111,163
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 3,027,435 $ 2,689 0.36 % $ 2,746,355 $ 3,018 0.45 % $ 2,178,039 $ 2,785 0.51 %
Money market(e) 2,960,264 2,816 0.38 % 2,917,856 3,615 0.50 % 2,769,421 3,968 0.57 %
Savings deposits 411,711 57 0.06 % 369,600 53 0.06 % 338,260 54 0.06 %
Customer time deposits(e) 1,291,125 2,016 0.63 % 1,365,570 3,036 0.90 % 1,410,108 3,704 1.04 %
Brokered and internet time deposits(e) 39,860 341 3.43 % 49,764 104 0.85 % 87,035 298 1.36 %
Time deposits 1,330,985 2,357 0.71 % 1,415,334 3,140 0.90 % 1,497,143 4,002 1.06 %
Total interest-bearing deposits 7,730,395 7,919 0.41 % 7,449,145 9,826 0.53 % 6,782,863 10,809 0.63 %
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased 32,543 21 0.26 % 31,342 36 0.47 % 34,986 43 0.49 %
Federal Home Loan Bank advances(g) — — — % — — — % 102,174 (432) (1.68) %
Subordinated debt(f) 149,155 1,819 4.89 % 188,996 2,341 5.02 % 189,649 2,433 5.10 %
Other borrowings 1,569 7 1.79 % 5,924 6 0.41 % 16,612 139 3.33 %
Total other interest-bearing liabilities 183,267 1,847 4.04 % 226,262 2,383 4.27 % 343,421 2,183 2.53 %
Total interest-bearing liabilities 7,913,662 9,766 0.49 % 7,675,407 12,209 0.65 % 7,126,284 12,992 0.73 %
Noninterest-bearing liabilities:
Demand deposits 2,484,176 2,348,814 2,513,202
Other liabilities 162,581 180,976 210,483
Total noninterest-bearing liabilities 2,646,757 2,529,790 2,723,685
Total liabilities 10,560,419 10,205,197 9,849,969
Total common shareholders' equity 1,339,938 1,303,493 1,261,101
Noncontrolling interest 93 93 93
Total equity 1,340,031 1,303,586 1,261,194
Total liabilities and shareholders' equity $ 11,900,450 $ 11,508,783 $ 11,111,163
Net interest income(a) $ 87,321 $ 83,368 $ 86,111
Interest rate spread(a) 3.04 % 3.01 % 3.09 %
Net interest margin(a) 3.18 % 3.19 % 3.32 %
Cost of total deposits 0.31 % 0.41 % 0.46 %
Average interest-earning assets to average interest-bearing liabilities 139.2 % 138.2 % 144.7 %
Tax-equivalent adjustment $ 758 $ 792 $ 867
Loans HFI yield components:
Contractual interest rate(a)(c) $ 76,127 4.31 % $ 75,828 4.39 % $ 78,873 4.39 %
Origination and other loan fee income(c) 6,928 0.39 % 6,640 0.38 % 6,537 0.36 %
(Amortization) accretion on purchased loans (226) (0.01) % (58) — % 708 0.04 %
Nonaccrual interest 535 0.03 % 657 0.04 % 280 0.02 %
Total loans HFI yield $ 83,364 4.72 % $ 83,067 4.81 % $ 86,398 4.81 %

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

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

(c) Includes $290, $426, and $699 of loan contractual interest and $1,098, $1,598, and $2,448, of loan fees related to PPP loans for the three months ended June 30, 2021, March 31, 2021, and December 31, 2020 , respectively.

(d) Includes $117,397, $172,136, and $279,757 of average PPP loan balances for the three months ended June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(e) Includes $932, $932, and $932 of interest rate premium accretion on money market deposits, $625, $810, and $1,101 of interest rate premium accretion on customer time deposits, and $127, $153, and $127 of interest rate premium accretion on brokered and internet deposits for the three months ended June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(f) Includes $114, $255, and $262 of interest rate premium accretion on subordinated debt for the three months ended June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(g) Includes $545 of gain accreted from other comprehensive income with cancelled cash flow hedge for the three months ended December 31, 2020.

FB Financial Corporation 9
Average Balance, Average Yield Earned and Average Rate Paid (continued)
--- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except %)
Year ended Year ended
December 31, 2021 December 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) $ 7,197,213 $ 334,861 4.65 % $ 5,621,832 $ 278,076 4.95 %
Mortgage loans held for sale(b) 696,313 18,690 2.68 % 420,791 12,699 3.02 %
Commercial loans held for sale 136,359 6,098 4.47 % 84,580 4,166 4.93 %
Securities:(b)
Taxable 1,050,207 15,186 1.45 % 589,393 10,267 1.74 %
Tax-exempt(a) 321,911 10,356 3.22 % 275,786 9,570 3.47 %
Total securities(a) 1,372,118 25,542 1.86 % 865,179 19,837 2.29 %
Federal funds sold and reverse repurchase agreements 128,724 379 0.29 % 85,402 304 0.36 %
Interest-bearing deposits with other financial institutions 1,427,332 1,902 0.13 % 662,175 1,960 0.30 %
FHLB stock 30,022 612 2.04 % 21,735 441 2.03 %
Total interest-earning assets(a) 10,988,081 388,084 3.53 % 7,761,694 317,483 4.09 %
Noninterest-earning assets:
Cash and due from banks 128,977 66,177
Allowance for loan losses (153,301) (121,033)
Other assets 884,703 731,262
Total noninterest-earning assets 860,379 676,406
Total assets $ 11,848,460 $ 8,438,100
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking $ 2,924,388 $ 10,174 0.35 % $ 1,461,596 $ 8,875 0.61 %
Money market(e) 2,973,662 10,806 0.36 % 1,807,481 13,707 0.76 %
Savings deposits 421,252 233 0.06 % 274,489 232 0.08 %
Customer time deposits(e) 1,246,912 8,384 0.67 % 1,289,552 19,656 1.52 %
Brokered and internet time deposits(e) 34,943 592 1.69 % 43,372 389 0.90 %
Time deposits 1,281,855 8,976 0.70 % 1,332,924 20,045 1.50 %
Total interest-bearing deposits 7,601,157 30,189 0.40 % 4,876,490 42,859 0.88 %
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased 36,453 98 0.27 % 32,912 201 0.61 %
Federal Home Loan Bank advances(g) — — — % 212,705 1,093 0.51 %
Subordinated debt(f) 149,097 7,316 4.91 % 86,944 4,475 5.15 %
Other borrowings 2,626 25 0.95 % 12,939 358 2.77 %
Total other interest-bearing liabilities 188,176 7,439 3.95 % 345,500 6,127 1.77 %
Total interest-bearing liabilities 7,789,333 37,628 0.48 % 5,221,990 48,986 0.94 %
Noninterest-bearing liabilities:
Demand deposits 2,545,494 2,092,450
Other liabilities 151,903 157,289
Total noninterest-bearing liabilities 2,697,397 2,249,739
Total liabilities 10,486,730 7,471,729
Total common shareholders' equity 1,361,637 966,336
Noncontrolling interest 93 35
Total equity 1,361,730 966,371
Total liabilities and shareholders' equity $ 11,848,460 $ 8,438,100
Net interest income(a) $ 350,456 $ 268,497
Interest rate spread(a) 3.05 % 3.15 %
Net interest margin(a) 3.19 % 3.46 %
Cost of total deposits 0.30 % 0.62 %
Average interest-earning assets to average interest-bearing liabilities 141.1 % 148.6 %
Tax equivalent adjustment $ 3,086 $ 2,839
Loans HFI yield components:
Contractual interest rate(a)(c) $ 307,429 4.27 % $ 256,929 4.57 %
Origination and other loan fee income(c) 26,029 0.36 % 15,978 0.28 %
(Amortization) accretion on purchased loans (853) (0.01) % 3,788 0.07 %
Nonaccrual interest 2,256 0.03 % 1,381 0.03 %
Total loans HFI yield $ 334,861 4.65 % $ 278,076 4.95 %

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

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

(c) Includes $814 and $2,092 of loan contractual interest and $3,274 and $3,923 of loan fees related to PPP loans for the years ended December 31, 2021 and 2020 .

(d) Includes $81,753 and $206,758 of average PPP loan balances during the years ended December 31, 2021 and 2020.

(e) Includes $3,727 and $932 of interest rate premium accretion on money market deposits, $2,177 and $1,982 of interest rate mark accretion on customer time deposits and $462 and $447 of interest rate mark accretion on brokered and internet deposits for the years ended December 31, 2021 and 2020, respectively.

(f) Includes $369 and $436 interest rate premium accretion on subordinated debt for the years ended December 31, 2021 and 2020, respectively.

(g) Includes $0 and $955 of gain accretion from other comprehensive income with cancelled cash flow hedge for the years ended December 31, 2021 and 2020, respectively.

FB Financial Corporation 10
Loans and Deposits by Market
--- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands)
2021 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Loans by market
Metropolitan $ 6,127,930 $ 5,863,563 $ 5,752,482 $ 5,550,927 $ 5,580,822
Community 738,249 745,796 767,001 835,444 867,575
Specialty lending and other 738,483 685,315 679,471 660,971 634,562
Total $ 7,604,662 $ 7,294,674 $ 7,198,954 $ 7,047,342 $ 7,082,959
Deposits by market
Metropolitan $ 6,981,639 $ 5,918,924 $ 6,133,823 $ 6,389,373 $ 5,812,719
Community 2,436,548 2,269,511 2,246,922 2,192,116 2,001,802
Mortgage and other(a) 1,418,710 1,883,483 1,823,211 1,675,397 1,643,516
Total $ 10,836,897 $ 10,071,918 $ 10,203,956 $ 10,256,886 $ 9,458,037

(a) 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 %)
2021 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Banking segment(a)
Net interest income $ 89,616 $ 88,576 $ 86,553 $ 82,597 $ 85,207
Provisions for credit losses (10,769) (2,531) (13,839) (13,854) (2,920)
Noninterest income 21,850 13,823 14,002 11,398 14,909
Merger expense — — — — 8,788
Other noninterest expense 60,104 58,777 58,194 55,735 57,458
Pre-tax income after allocations $ 62,131 $ 46,153 $ 56,200 $ 52,114 $ 36,790
Total assets $ 11,540,560 $ 10,712,281 $ 10,908,107 $ 10,787,955 $ 10,254,324
Intracompany funding income included in net interest income 6,325 6,075 6,110 5,400 5,160
Core efficiency ratio* 57.5 % 57.9 % 58.6 % 58.6 % 54.0 %
Mortgage segment(a)
Net interest income $ 139 $ (100) $ 10 $ (21) $ 37
Mortgage banking income 31,350 45,384 35,499 55,332 65,729
Other noninterest income 19 (201) (201) — —
Merger expense — — — — 725
Other noninterest expense 30,798 36,230 34,766 38,963 42,884
Direct contribution $ 710 $ 8,853 $ 542 $ 16,348 $ 22,157
Total assets $ 1,057,126 $ 1,098,009 $ 1,010,260 $ 1,147,871 $ 953,006
Intracompany funding expense included in net interest income 6,325 6,075 6,110 5,400 5,160
Core efficiency ratio* 97.8 % 80.0 % 97.9 % 70.4 % 65.2 %
Interest rate lock commitments volume during the period
Consumer direct $ 796,900 $ 1,085,180 $ 914,163 $ 949,187 $ 1,291,121
Retail 687,682 926,723 860,370 939,863 896,357
Total $ 1,484,582 $ 2,011,903 $ 1,774,533 $ 1,889,050 $ 2,187,478
Interest rate lock commitments pipeline (period end)
Consumer direct $ 272,401 $ 396,965 $ 446,691 $ 643,624 $ 833,569
Retail 214,995 341,237 340,568 415,155 358,052
Total $ 487,396 $ 738,202 $ 787,259 $ 1,058,779 $ 1,191,621
Mortgage sales
Consumer direct $ 765,535 $ 809,888 $ 922,910 $ 829,883 $ 1,070,909
Retail 647,066 726,009 758,599 742,187 757,308
Total $ 1,412,601 $ 1,535,897 $ 1,681,509 $ 1,572,070 $ 1,828,217
Gains and fees from origination and sale of mortgage loans held for sale $ 37,538 $ 39,210 $ 49,435 $ 57,893 $ 83,971
Net change in fair value of loans held for sale, derivatives, and other (12,478) 1,002 (17,579) (4,229) (16,875)
Mortgage servicing income 7,632 7,539 6,788 6,931 6,461
Change in fair value of mortgage servicing rights, net of hedging (1,342) (2,367) (3,145) (5,263) (7,828)
Total mortgage banking income $ 31,350 $ 45,384 $ 35,499 $ 55,332 $ 65,729
Mortgage sale margin(b) 2.66 % 2.55 % 2.94 % 3.68 % 4.59 %

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information. Investors are encouraged to refer to the discussion and reconciliation of non-GAAP measures included in the Earnings Release and Earnings Release Presentation dated January 18, 2022.

(a) During the first quarter of 2021, the Company re-evaluated its reportable business segments to assign all retail mortgage activities to the Mortgage segment. Prior to 2021, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking Segment. As such, 4Q20 results of mortgage retail footprint has been assigned to the Mortgage segment to conform to current segment reporting methodology.

(b) 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 %)
2021 2020
Fourth Quarter % of Total Third Quarter % of Total Second Quarter % of Total First Quarter % of Total Fourth Quarter % of Total
Loan portfolio
Commercial and Industrial (a) $ 1,290,565 17 % $ 1,252,425 17% $ 1,238,940 17% $ 1,292,530 18% $ 1,346,122 19 %
Construction 1,327,659 17 % 1,190,623 16% 1,145,165 16% 1,120,585 16% 1,222,220 17 %
Residential real estate:
1-to-4 family mortgage 1,270,467 17 % 1,175,155 16% 1,126,623 16% 1,078,618 15% 1,089,270 15 %
Residential line of credit 383,039 5 % 392,440 5% 401,343 6% 394,510 6% 408,211 6 %
Multi-family mortgage 326,551 4 % 324,662 5% 363,600 5% 271,839 4% 175,676 2 %
Commercial real estate:
Owner occupied 951,582 13 % 938,241 13% 923,605 13% 936,473 13% 924,841 13 %
Non-owner occupied 1,730,165 23 % 1,695,573 23% 1,675,214 23% 1,652,638 24% 1,598,979 23 %
Consumer and other 324,634 4 % 325,555 5% 324,464 4% 300,149 4% 317,640 5 %
Total loans HFI $ 7,604,662 100 % $ 7,294,674 100% $ 7,198,954 100% $ 7,047,342 100% $ 7,082,959 100 %
Allowance for credit losses rollforward summary
Allowance for credit losses at the beginning of the period $ 139,446 $ 144,663 $ 157,954 $ 170,389 $ 183,973
Charge-offs (3,225) (2,614) (859) (1,170) (10,736)
Recoveries 984 229 453 367 383
Provision for credit losses (11,646) (2,832) (12,885) (11,632) (3,231)
Allowance for credit losses at the end of the period $ 125,559 $ 139,446 $ 144,663 $ 157,954 $ 170,389
Allowance for credit losses as a percentage of total loans HFI 1.65 % 1.91 % 2.01 % 2.24 % 2.41 %
Adjusted allowance for credit losses as a percentage of loans HFI* 1.65 % 1.91 % 2.03 % 2.29 % 2.48 %
Allowance for credit losses on unfunded commitments $ 14,380 $ 13,503 $ 13,202 $ 14,156 $ 16,378
Charge-offs
Commercial and Industrial $ (1,224) $ (2,175) $ (360) $ (277) $ (10,105)
Construction — (1) — (29) —
Residential real estate:
1-to-4 family mortgage (5) — (16) (133) (30)
Residential line of credit — — (3) (15) (1)
Multi-family mortgage (1) — — — —
Commercial real estate:
Owner occupied — — — — —
Non-owner occupied (1,566) — — — —
Consumer and other (429) (438) (480) (716) (600)
Total charge-offs (3,225) (2,614) (859) (1,170) (10,736)
Recoveries
Commercial and Industrial 626 19 87 129 60
Construction — 3 — — 3
Residential real estate:
1-to-4 family mortgage 27 33 41 24 (44)
Residential line of credit 99 1 9 6 64
Multi-family mortgage — — — — —
Commercial real estate:
Owner occupied 13 4 126 13 15
Non-owner occupied — — — — —
Consumer and other 219 169 190 195 285
Total recoveries 984 229 453 367 383
Net (charge-offs) recoveries $ (2,241) $ (2,385) $ (406) $ (803) $ (10,353)
Net charge-offs as a percentage of average total loans 0.12 % 0.13 % 0.02 % 0.05 % 0.58 %
Classified loans $ 126,441 $ 131,620 $ 150,658 $ 156,588 $ 132,223 FB Financial Corporation 13
--- ---
Loan Portfolio and Asset Quality (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2021 2020
Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Nonperforming assets(b)
Past due 90 days or more and accruing interest $ 11,735 $ 8,901 $ 9,098 $ 10,698 $ 13,696
Nonaccrual 35,568 34,126 50,429 55,538 50,760
Total nonperforming loans held for investment 47,303 43,027 59,527 66,236 64,456
Commercial loans held for sale 5,217 5,625 5,844 12,779 6,489
Other real estate owned:
Foreclosed 6,429 6,514 6,488 4,735 6,408
Excess land and facilities 3,348 3,501 5,498 6,442 5,703
Other assets 686 347 816 1,230 1,170
Total nonperforming assets $ 62,983 $ 59,014 $ 78,173 $ 91,422 $ 84,226
Total nonperforming loans as a percentage of loans held for investment 0.62 % 0.59 % 0.83 % 0.94 % 0.91 %
Total nonperforming assets as a percentage of total assets 0.50 % 0.50 % 0.66 % 0.77 % 0.75 %
Total accruing loans over 90 days delinquent as a percentage of total assets 0.09 % 0.08 % 0.08 % 0.09 % 0.12 %
Loans restructured as troubled debt restructurings $ 32,435 $ 29,645 $ 42,678 $ 26,095 $ 15,988
Troubled debt restructurings as a percentage of loans held for investment 0.43 % 0.41 % 0.59 % 0.37 % 0.23 %

(a) Includes PPP loan balances of $3,990, $9,415, $57,406, $145,697, and $212,645 as of December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(b) Nonperforming assets include guaranteed repurchased loans previously sold of $4,000, $3,000, $3,500, $4,100, and $3,700, for the quarters ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information. Investors are encouraged to refer to the discussion and reconciliation of non-GAAP measures included in the Earnings Release and Earnings Release Presentation dated January 18, 2022.

FB Financial Corporation 14
Preliminary Capital Ratios
--- --- --- --- --- --- ---
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets: December 31, 2021 December 31, 2020
Total Common Shareholders' Equity $ 1,432,602 $ 1,291,289
Less:
Goodwill 242,561 242,561
Other intangibles 16,953 22,426
Tangible Common Equity $ 1,173,088 $ 1,026,302
Total Assets $ 12,597,686 $ 11,207,330
Less:
Goodwill 242,561 242,561
Other intangibles 16,953 22,426
Tangible Assets $ 12,338,172 $ 10,942,343
Preliminary Total Risk-Weighted Assets $ 9,902,978 $ 9,073,675
Total Common Equity to Total Assets 11.4 % 11.5 %
Tangible Common Equity to Tangible Assets* 9.51 % 9.38 %
December 31, 2021 December 31, 2020
Preliminary Regulatory Capital(a):
Common Equity Tier 1 Capital $ 1,220,505 $ 1,060,364
Tier 1 Capital 1,250,505 1,090,364
Total Capital 1,429,740 1,358,897
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1 12.3 % 11.7 %
Tier 1 Risk-Based 12.6 % 12.0 %
Total Risk-Based 14.4 % 15.0 %
Tier 1 Leverage 10.5 % 10.0 %

(a) Reflects CECL transition relief of $40,901 and $52,109 add-back for the period ending December 31, 2021 and December 31, 2020, respectively, and $46,771 and $57,979 disallowed from add-back to Tier 2 capital for the period ended December 31, 2021 and December 31, 2020, respectively.

*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information. Investors are encouraged to refer to the discussion and reconciliation of non-GAAP measures included in the Earnings Release and Earnings Release Presentation dated January 18, 2022.

FB Financial Corporation 15
Investment Portfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
2021 2020
Securities (at fair value) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Available-for-sale debt securities
U.S. government agency securities 2 % 1 % 1 % —% — %
Mortgage-backed securities - residential 1,269,372 76 % 1,210,503 77 % 1,035,003 73 % 838,708 68% 773,336 66 %
Mortgage-backed securities -<br><br>commercial 15,250 1 % 15,712 1 % 15,161 1 % 20,635 2% 21,588 2 %
Municipals, tax exempt 338,610 20 % 327,239 21 % 332,883 24 % 348,776 28% 356,329 30 %
Treasury securities 14,908 1 % 6,006 — % 10,534 1 % 14,576 1% 16,628 1 %
Corporate securities 6,515 — % 2,527 — % 2,536 — % 2,483 —% 2,516 — %
Total available-for-sale debt securities 1,678,525 100 % 1,572,558 100 % 1,404,372 100 % 1,225,178 99% 1,172,400 99 %
Equity securities 3,367 — % 4,779 —% 4,803 —% 4,667 1% 4,591 1 %
Total securities 1,681,892 100% 1,577,337 100% 1,409,175 100% 1,229,845 100% 1,176,991 100%
Securities to total assets 13.4 % 13.4 % 11.8 % 10.3 % 10.5 %
Unrealized gain on available-for-sale debt securities

All values are in US Dollars.

FB Financial Corporation 16
Non-GAAP Reconciliation
--- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2020
Adjusted net income Third Quarter Second Quarter First Quarter Fourth Quarter
Income before income taxes 62,841 $ 55,006 $ 56,742 $ 68,462 $ 58,947
Plus merger, conversion and offering expenses — 605 — 9,513
Less other non-operating items(1) 1,235 2,151 (853) (2,448)
Adjusted pre-tax net income 53,771 55,196 69,315 70,908
Adjusted income tax expense(2) 11,072 12,879 15,810 16,454
Adjusted net income 42,551 $ 42,699 $ 42,317 $ 53,505 $ 54,454
Weighted average common shares outstanding - fully diluted 48,007,147 47,993,773 47,969,106 47,791,659
Adjusted diluted earnings per common share
Diluted earnings per common share 1.02 $ 0.94 $ 0.90 $ 1.10 $ 0.95
Plus merger, conversion and offering expenses — 0.01 — 0.20
Less other non-operating items 0.02 0.04 (0.02) (0.05)
Less tax effect 0.03 (0.01) — 0.06
Adjusted diluted earnings per common share 0.89 $ 0.89 $ 0.88 $ 1.12 $ 1.14
(1) 4Q21 includes 9,921 gain from change in fair value of commercial loans held for sale acquired from Franklin and 1,422 related to certain nonrecurring charitable contributions; 3Q21 includes a 740 gain from change in fair value of commercial loans held for sale acquired from Franklin, a 1,510 loss on swap, and a gain of 2,005 from sales other real estate owned; 2Q21 includes a 1,364 gain from change in fair value of commercial loans held for sale acquired from Franklin and a 787 gain from lease terminations; 1Q21 includes a 853 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q20 includes 4,533 FHLB prepayment penalty offset by 715 cash life insurance benefit and 1,370 gain from change in fair value of commercial loans held for sale acquired from Franklin.
(2) 3Q21 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin.
2020
Adjusted pre-tax pre-provision earnings Third Quarter Second Quarter First Quarter Fourth Quarter
Income before income taxes 62,841 $ 55,006 $ 56,742 $ 68,462 $ 58,947
Plus provisions for credit losses (2,531) (13,839) (13,854) (2,920)
Pre-tax pre-provision earnings 52,475 42,903 54,608 56,027
Plus merger, conversion and offering expenses — 605 — 9,513
Less other non-operating items 1,235 2,151 (853) (2,448)
Adjusted pre-tax pre-provision earnings 43,573 $ 51,240 $ 41,357 $ 55,461 $ 67,988

All values are in US Dollars.

FB Financial Corporation 17
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Adjusted net income 2020 2019 2018 2017
Income before income taxes 243,051 $ 82,461 $ 109,539 $ 105,854 $ 73,485
Plus merger, conversion, offering, and mortgage restructuring expenses 34,879 7,380 2,265 19,034
Plus initial provision for credit losses on acquired loans and unfunded commitments 66,136 — — —
Less other non-operating items(1) (4,400) — — —
Adjusted pre-tax net income 187,876 116,919 108,119 92,519
Adjusted income tax expense(2) 45,944 27,648 26,034 34,749
Adjusted net income 181,071 $ 141,932 $ 89,271 $ 82,085 $ 57,770
Weighted average common shares outstanding - fully diluted 38,099,744 31,402,897 31,314,981 28,207,602
Adjusted diluted earnings per common share
Diluted earnings per common share 3.97 $ 1.67 $ 2.65 $ 2.55 $ 1.86
Plus merger, conversion, offering, and mortgage restructuring expenses 0.92 0.24 0.07 0.67
Plus initial provision for credit losses on acquired loans and unfunded commitments 1.74 — — —
Less other non-operating items (0.11) — — —
Less tax effect 0.71 0.06 0.01 0.48
Adjusted diluted earnings per common share 3.78 $ 3.73 $ 2.83 $ 2.61 $ 2.05
(1) 2021 includes a 11,172 gain from change in fair value on commercial loans held for sale acquired from Franklin, a loss on swap cancellation of 1,510, a 2,005 gain on other real estate owned, a 787 gain from lease terminations and 1,422 related to certain charitable contributions; 2020 includes 6,838 FHLB prepayment penalties, 1,505 losses on other real estate owned offset by 715 cash life insurance benefit and 3,228 gain from change in fair value on commercial loans held for sale acquired from Franklin.
(2) 2021 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin.
Adjusted pre-tax pre-provision earnings 2020 2019 2018 2017
Income before income taxes 243,051 $ 82,461 $ 109,539 $ 105,854 $ 73,485
Plus provisions for credit losses 107,967 7,053 5,398 (950)
Pre-tax pre-provision earnings 190,428 116,592 111,252 72,535
Plus merger, conversion, offering, and mortgage restructuring expenses 34,879 7,380 2,265 19,034
Less other non-operating items (4,400) — — —
Adjusted pre-tax pre-provision earnings 191,631 $ 229,707 $ 123,972 $ 113,517 $ 91,569

All values are in US Dollars.

FB Financial Corporation 18
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Core efficiency ratio (tax-equivalent basis) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Total noninterest expense $ 90,902 $ 95,007 $ 92,960 $ 94,698 $ 109,855
Less merger, conversion and offering expenses — — 605 — 9,513
Less gain on lease terminations — — (787) — —
Less FHLB prepayment penalties — — — — 4,533
Less certain charitable contributions 1,422 — — — —
Core noninterest expense $ 89,480 $ 95,007 $ 93,142 $ 94,698 $ 95,809
Net interest income (tax-equivalent basis) $ 90,537 $ 89,230 $ 87,321 $ 83,368 $ 86,111
Total noninterest income 53,219 59,006 49,300 66,730 80,638
Less gain (loss) on change in fair value on commercial loans held for sale 9,921 740 1,364 (853) 1,370
Less loss on swap cancellation — (1,510) — — —
Less cash life insurance benefit — — — — 715
Less gain (loss) on sales or write-downs of other real estate owned and other assets 187 2,182 (27) 485 (57)
Less gain from securities, net 46 51 144 83 1,013
Core noninterest income 43,065 57,543 47,819 67,015 77,597
Core revenue $ 133,602 $ 146,773 $ 135,140 $ 150,383 $ 163,708
Efficiency ratio (GAAP)(a) 63.6 % 64.4 % 68.4 % 63.4 % 66.2 %
Core efficiency ratio (tax-equivalent basis) 67.0 % 64.7 % 68.9 % 63.0 % 58.5 %
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
During the first quarter of 2021, the Company re-evaluated its reportable business segments to align all retail mortgage activities with the Mortgage segment. Prior to 2021, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking Segment. The results of mortgage retail footprint have been assigned to the Mortgage segment for all periods presented. As such, 4Q20 historical segment efficiency ratios and mortgage contribution have been recast for consistency with these changes.
2021 2020
Banking segment core efficiency ratio <br>   (tax equivalent) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Core noninterest expense $ 89,480 $ 95,007 $ 93,142 $ 94,698 $ 95,809
Less Mortgage segment core noninterest expense 30,798 36,230 34,766 38,963 42,884
Core Banking segment noninterest expense $ 58,682 $ 58,777 $ 58,376 $ 55,735 $ 52,925
Core revenue $ 133,602 $ 146,773 $ 135,140 $ 150,383 $ 163,708
Less Core Mortgage segment total revenue 31,489 45,284 35,509 55,311 65,766
Core Banking segment total revenue $ 102,113 $ 101,489 $ 99,631 $ 95,072 $ 97,942
Banking segment core efficiency ratio<br><br>(tax-equivalent basis) 57.5 % 57.9 % 58.6 % 58.6 % 54.0 %
Mortgage segment core efficiency ratio<br><br>(tax equivalent)
Mortgage segment noninterest expense $ 30,798 $ 36,230 $ 34,766 $ 38,963 $ 43,609
Less Mortgage segment merger expense — — — — 725
Core Mortgage segment noninterest expense $ 30,798 $ 36,230 $ 34,766 $ 38,963 $ 42,884
Mortgage segment total revenue $ 31,508 $ 45,083 $ 35,308 $ 55,311 $ 65,766
Less gain (loss) on sales or write-downs of other real<br>     estate owned 19 (201) (201) — —
Core Mortgage segment total revenue $ 31,489 $ 45,284 $ 35,509 $ 55,311 $ 65,766
Mortgage segment core efficiency ratio<br><br>(tax-equivalent basis) 97.8 % 80.0 % 97.9 % 70.4 % 65.2 % FB Financial Corporation 19
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
2021 2020
Adjusted Mortgage contribution Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Mortgage pre-tax net contribution $ 710 $ 8,853 $ 542 $ 16,348 $ 22,157
Plus Mortgage segment merger expense — — — — 725
Adjusted Mortgage pre-tax net contribution $ 710 $ 8,853 $ 542 $ 16,348 $ 22,882
Pre-tax pre-provision earnings $ 52,072 $ 52,475 $ 42,903 $ 54,608 $ 56,027
% Mortgage pre-tax pre-provision<br><br>net contribution 1.36 % 16.9 % 1.26 % 29.9 % 39.5 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 41,357 $ 55,461 $ 67,988
% total adjusted Mortgage pre-tax<br><br>pre-provision net contribution 1.63 % 17.3 % 1.31 % 29.5 % 33.7 %
2021 2020
Tangible assets and equity Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Tangible assets
Total assets $ 12,597,686 $ 11,810,290 $ 11,918,367 $ 11,935,826 $ 11,207,330
Less goodwill 242,561 242,561 242,561 242,561 242,561
Less intangibles, net 16,953 18,248 19,592 20,986 22,426
Tangible assets $ 12,338,172 $ 11,549,481 $ 11,656,214 $ 11,672,279 $ 10,942,343
Tangible common equity
Total common shareholders' equity $ 1,432,602 $ 1,400,913 $ 1,371,721 $ 1,329,103 $ 1,291,289
Less goodwill 242,561 242,561 242,561 242,561 242,561
Less intangibles, net 16,953 18,248 19,592 20,986 22,426
Tangible common equity $ 1,173,088 $ 1,140,104 $ 1,109,568 $ 1,065,556 $ 1,026,302
Common shares outstanding 47,549,241 47,707,634 47,360,950 47,331,680 47,220,743
Book value per common share $ 30.13 $ 29.36 $ 28.96 $ 28.08 $ 27.35
Tangible book value per common share $ 24.67 $ 23.90 $ 23.43 $ 22.51 $ 21.73
Total common shareholders' equity to total assets 11.4 % 11.9 % 11.5 % 11.1 % 11.5 %
Tangible common equity to tangible assets 9.51 % 9.87 % 9.52 % 9.13 % 9.38 %
2021 2020
Return on average tangible common equity Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Average common shareholders' equity $ 1,411,987 $ 1,389,201 $ 1,339,938 $ 1,303,493 $ 1,261,101
Less average goodwill 242,561 242,561 242,561 242,561 242,983
Less average intangibles, net 17,580 18,950 20,253 21,695 23,178
Average tangible common equity $ 1,151,846 $ 1,127,690 $ 1,077,124 $ 1,039,237 $ 994,940
Net income $ 48,827 $ 45,290 $ 43,294 $ 52,874 $ 45,602
Return on average common equity 13.7 % 12.9 % 13.0 % 16.5 % 14.4 %
Return on average tangible common equity 16.8 % 15.9 % 16.1 % 20.6 % 18.2 %
Adjusted net income $ 42,551 $ 42,699 $ 42,317 $ 53,505 $ 54,454
Adjusted return on average tangible common equity 14.7 % 15.0 % 15.8 % 20.9 % 21.8 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 41,357 $ 55,461 $ 67,988
Adjusted pre-tax pre-provision return on average <br>   tangible common equity 15.0 % 18.0 % 15.4 % 21.6 % 27.2 % FB Financial Corporation 20
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Return on average tangible common equity 2021 2020 2019 2018 2017
Average common shareholders' equity $ 1,361,637 $ 966,336 $ 723,494 $ 629,922 $ 466,219
Less average goodwill 242,561 199,104 160,587 137,190 84,997
Less average intangibles, net 19,606 22,659 17,236 12,815 8,047
Average tangible common equity $ 1,099,470 $ 744,573 $ 545,671 $ 479,917 $ 373,175
Net income $ 190,285 $ 63,621 $ 83,814 $ 80,236 $ 52,398
Return on average common equity 14.0 % 6.58 % 11.6 % 12.7 % 11.2 %
Return on average tangible common equity 17.3 % 8.54 % 15.4 % 16.7 % 14.0 %
Adjusted net income $ 181,071 $ 141,932 $ 89,271 $ 82,085 $ 57,770
Adjusted return on average tangible common equity 16.5 % 19.1 % 16.4 % 17.1 % 15.5 %
Adjusted pre-tax pre-provision earnings $ 191,631 $ 229,707 $ 123,972 $ 113,517 $ 91,569
Adjusted pre-tax pre-provision return on average tangible common equity 17.4 % 30.9 % 22.7 % 23.7 % 24.5 %
2021 2020
Adjusted return on average assets and equity Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Net income $ 48,827 $ 45,290 $ 43,294 $ 52,874 $ 45,602
Average assets 12,085,817 11,915,062 11,900,450 11,508,783 11,111,163
Average common equity 1,411,987 1,389,201 1,339,938 1,303,493 1,261,101
Return on average assets 1.60 % 1.51 % 1.46 % 1.86 % 1.63 %
Return on average common equity 13.7 % 12.9 % 13.0 % 16.5 % 14.4 %
Adjusted net income $ 42,551 $ 42,699 $ 42,317 $ 53,505 $ 54,454
Adjusted return on average assets 1.40 % 1.42 % 1.43 % 1.89 % 1.95 %
Adjusted return on average common equity 12.0 % 12.2 % 12.7 % 16.6 % 17.2 %
Adjusted pre-tax pre-provision earnings $ 43,573 $ 51,240 $ 41,357 $ 55,461 $ 67,988
Adjusted pre-tax pre-provision return on <br>     average assets 1.43 % 1.71 % 1.39 % 1.95 % 2.43 %
Adjusted pre-tax pre-provision return on <br>     average common equity 12.2 % 14.6 % 12.4 % 17.3 % 21.4 % FB Financial Corporation 21
--- ---
Non-GAAP Reconciliation (continued)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Adjusted return on average assets and equity 2021 2020 2019 2018 2017
Net income $ 190,285 $ 63,621 $ 83,814 $ 80,236 $ 52,398
Average assets 11,848,460 8,438,100 5,777,672 4,844,865 3,811,158
Average common equity 1,361,637 966,336 723,494 629,922 466,219
Return on average assets 1.61 % 0.75 % 1.45 % 1.66 % 1.37 %
Return on average common equity 14.0 % 6.58 % 11.6 % 12.7 % 11.2 %
Adjusted net income $ 181,071 $ 141,932 $ 89,271 $ 82,085 $ 57,770
Adjusted return on average assets 1.53 % 1.68 % 1.55 % 1.69 % 1.52 %
Adjusted return on average common equity 13.3 % 14.7 % 12.3 % 13.0 % 12.4 %
Adjusted pre-tax pre-provision earnings $ 191,631 $ 229,707 $ 123,972 $ 113,517 $ 91,569
Adjusted pre-tax pre-provision return on average assets 1.62 % 2.72 % 2.15 % 2.34 % 2.40 %
Adjusted pre-tax pre-provision return on average common equity 14.1 % 23.8 % 17.1 % 18.0 % 19.6 %
2021 2020
Adjusted allowance for credit losses to loans held for investment Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
Allowance for credit losses $ 125,559 $ 139,446 $ 144,663 $ 157,954 $ 170,389
Less allowance for credit losses attributed to PPP loans — 2 9 23 34
Adjusted allowance for credit losses $ 125,559 $ 139,444 $ 144,654 $ 157,931 $ 170,355
Loans held for investment $ 7,604,662 $ 7,294,674 $ 7,198,954 $ 7,047,342 $ 7,082,959
Less PPP loans 3,990 9,415 57,406 145,697 212,645
Adjusted loans held for investment $ 7,600,672 $ 7,285,259 $ 7,141,548 $ 6,901,645 $ 6,870,314
Allowance for credit losses to loans held for investment 1.65 % 1.91 % 2.01 % 2.24 % 2.41 %
Adjusted allowance for credit losses to loans held for investment 1.65 % 1.91 % 2.03 % 2.29 % 2.48 % FB Financial Corporation 22
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fbk4q2021earningspresent

January 18, 2022 2021 Fourth Quarter Earnings Presentation

1 Forward–Looking Statements Certain statements contained in this presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding FB Financial Corporation’s (the “Company”) business operations and statements related to the Company’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,” “project,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company 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 inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) the ongoing effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and the emergence of new variants, and its impact on general economic and financial market conditions and on the Company’s business and the Company’s customers' business, results of operations, asset quality and financial condition, (3) ongoing public response to the vaccines that were developed against the virus as well as the decisions of governmental agencies with respect to vaccines, including recommendations related to booster shots and requirements that seek to mandate that individuals receive or employers require that their employees receive the vaccine, (4) those vaccines' efficacy against the virus, including new variants, (5) changes in government interest rate policies and its impact on the Company’s business, net interest margin, and mortgage operations, (6) the Company’s ability to effectively manage problem credits, (7) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (8) difficulties and delays in integrating acquired businesses or fully realizing costs savings, revenue synergies and other benefits from future and prior acquisitions, (9) the Company’s ability to successfully execute its various business strategies, (10) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (11) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (12) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted intrusions, (13) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, and (14) general competitive, economic, political, and market conditions. Further information regarding the Company and factors which could affect the forward- looking statements contained herein can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any of the Company’s subsequent filings with the Securities and Exchange Commission. Many of these factors are beyond the Company’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 the Company 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 the Company to predict their occurrence or how they will affect the company. The Company qualifies all forward-looking statements by these cautionary statements.

2 Use of non-GAAP financial measures This presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limitation, adjusted net income , adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, 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 mortgage pre-tax net contribution, adjusted mortgage pre-tax pre-provision net contribution, adjusted return on average assets and equity, and adjusted pre-tax pre-provision return on average assets and equity. 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 also includes an adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses to loans held for investment, which all exclude the impact of PPP loans. The Company refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, 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 demonstrate 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. 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. The following tables in this presentation provide a reconciliation of these measures to the most directly comparable GAAP financial measures.

3 4Q 2021 and annual highlights Key highlights ◼ Excluding PPP loans, loans HFI grew 17.2% annualized in 4Q 2021, or $315 million. 2021 annual growth, excluding PPP loans, of 10.6%, or $730 million ◼ Noninterest bearing deposits increased by $130.6 million in 4Q 2021 (19.9% annualized) and by $466 million, or 20.5%, in FY 2021. Excluding mortgage-escrow deposits, noninterest bearing deposits increased by $193.7 million in 4Q 2021 (31.8% annualized) and by $486 million, or 22.9%, in FY 2021. ◼ Cost of total deposits decreased by 4 basis points from 3Q 2021, while contractual yield on loans HFI declined by 6 basis points ◼ ACL to loans HFI declined from 1.91% as of 3Q 2021 to 1.65% as of 4Q 2021 as outlooks for the local economy and Covid-impacted industries continue to improve ◼ Commercial Loans Held For Sale portfolio balances down to $79.3 million as of 4Q 2021 compared to $430 million at announcement of Franklin Financial Network transaction and $100.5 million as of 3Q 2021. Experienced gain on the portfolio of $9.9 million in 4Q 2021 and $11.2 million in FY 2021. ◼ Total mortgage contribution of $0.7 million in 4Q 2021 and $26.5 million for FY 2021 ◼ Grew tangible book value per share1 to $24.67, or a 15.5% CAGR since the IPO in September of 2016 Financial results 1 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 to the most directly comparable GAAP financial measures. 4Q 2021 FY 2021 Diluted earnings per share Adjusted diluted earnings per share1 $1.02 $0.89 $3.97 $3.78 Net income ($mm) Adjusted net income1 ($mm) $48.8 $42.6 $190.3 $181.1 Return on average assets Adjusted return on average assets1 1.60% 1.40% 1.61% 1.53% Return on average equity Adjusted return on average equity1 13.7% 12.0% 14.0% 13.3% Return on average tangible common equity1 Adjusted return on average tangible common equity1 16.8% 14.7% 17.3% 16.5% Adjusted pre-tax, pre-provision earnings1 ($mm) $43.6 $191.6 Adjusted pre-tax, pre-provision return on average assets1 1.43% 1.62% Adjusted pre-tax, pre-provision return on average tangible common equity1 15.0% 17.4% Net interest margin Impact of accretion and nonaccrual interest (bps) 3.19% 0 3.19% 1 Tangible common equity / tangible assets1 9.5% 9.5%

4 68.1% 65.8% 65.4% 59.2% 65.8% 2017 2018 2019 2020 2021 4.46% 4.66% 4.34% 3.46% 3.19% 2017 2018 2019 2020 2021 Core earnings power ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. Adjusted return on average assets¹ 1.52% 1.69% 1.55% 1.68% 1.53% 2017 2018 2019 2020 2021 Drivers of profitability Net interest margin Noninterest income ($mm)Loans/deposits Core efficiency ratio1 $142 $131 $135 $302 $228 2017 2018 2019 2020 2021 101% 95% 95% 84% 77% 86% 88% 89% 75% 70% 15% 7% 6% 9% 7% 2017 2018 2019 2020 2021 Loans excluding HFS Loans HFS

5 Stable net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment. 2 Excess liquidity defined as interest-bearing deposits with other financial institutions in excess of 5% of average tangible assets. Assumes funded from all interest bearing liabilities. $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 4Q20 1Q21 2Q21 3Q21 4Q21 A v g . in te re s t e a rn in g a s s e ts ( $ m m ) Y ie ld s a n d C o s ts ( % ) Average interest earning assets Yield on loans Cost of deposits NIM NIM1 3.32% 3.19% 3.18% 3.20% 3.19% Impact of accretion and nonaccrual interest (bps) 4 3 1 2 0 Impact of excess liquidity2 (bps) (22) (33) (37) (28) (22) Deposit Cost: Cost of MMDA 0.57% 0.50% 0.38% 0.31% 0.27% Cost of customer time 1.04% 0.90% 0.63% 0.61% 0.53% Cost of interest-bearing 0.63% 0.53% 0.41% 0.34% 0.30% Total deposit cost 0.46% 0.41% 0.31% 0.26% 0.22% Loans HFI Yield: Contractual interest 4.39% 4.39% 4.31% 4.23% 4.17% Origination and other loan fee income 0.36% 0.38% 0.39% 0.35% 0.33% Nonaccrual interest 0.05% 0.04% 0.03% 0.02% 0.03% Accretion on purchased loans 0.02% 0.00% (0.01%) 0.01% (0.04%) Total loan (HFI) yield 4.81% 4.81% 4.72% 4.61% 4.49%

6 3Q21 Mortgage performance in 4Q 2021 Highlights ◼ Total mortgage pre-tax contribution1 of $0.7 million for the fourth quarter ◼ Rising rates are weighing on refinance volumes, which is expected to continue throughout 2022 ◼ The decline in refinance volumes has led to over capacity in the industry, putting pressure on margins ◼ Pipeline at the end of 4Q 2021 of $487 million, as compared to $738 million at the end of 3Q 2021 ◼ Mortgage banking income of $31.4 million in 4Q 2021 compared to $45.4 million in 3Q 2021 Mortgage banking income ($mm) 4Q20 3Q21 4Q21 Gain on Sale $84.0 $39.2 $37.5 Fair value changes ($16.9) $1.0 ($12.5) Servicing Revenue $6.4 $7.6 $7.7 Fair value MSR changes ($7.8) ($2.4) ($1.3) Total Income $65.7 $45.4 $31.4 ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. 2 Defined as the fair value plus related derivatives for mandatory and best efforts divided by their pull-through weighted volume. Quarterly mortgage production Mark to Market Value and Gain on Sale Margin 4Q20 4Q21 IRLC volume: IRLC pipeline2: Refinance %: Purchase %: $2,187mm $2,012mm $1,484mm $1,192mm $738mm $487mm 76% 66% 57% 24% 34% 43% Consumer Direct Retail 3.42% 2.91% 2.42% 2.44% 1.96% 4.59% 3.68% 2.94% 2.55% 2.66% 4Q20 1Q21 2Q21 3Q21 4Q21 Mark to Market Value Gain on Sale Margin2

7 Managing expenses and investing to support growth Highlights ◼Consolidated 4Q 2021 core efficiency ratio¹ of 67.0% ◼Banking segment improvement reflects relatively flat expense base paired with growth in revenue. Continue to balance managing expenses in a zero-rate environment while making prudent investments in people and technology ◼Mortgage efficiency declined as rising rates impacted both volumes and margin ◼Change in segment definitions 1Q 2021 as mortgage retail footprint no longer included in the banking segment ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. During the first quarter of 2021, the Company re-evaluated its reportable business segments to align all retail mortgage activities with the Mortgage segment. Previously, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking segment. The results of mortgage retail footprint have been assigned to the Mortgage segment for all periods presented. As such, historical segment efficiency ratios have been recast for consistency with these changes. Core efficiency ratio (tax-equivalent basis)¹ 54.0% 58.6% 58.6% 57.9% 57.5% 58.5% 63.0% 68.9% 64.7% 67.0% 65.2% 70.4% 97.9% 80.0% 97.8% 4Q20 1Q21 2Q21 3Q21 4Q21 Banking segment Consolidated Mortgage segment

8 Well-capitalized for future opportunities Tangible book value per share3 Simple capital structure Common Equity Tier 1 Capital 85% Trust Preferred 2% Subordinated Notes 7% Tier 2 ACL 6% Total regulatory capital: $1,4292 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 3Q16 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q201 3Q211 4Q211,2 Shareholder’s equity/Assets 11.5% 11.9% 11.4% TCE/TA3 9.4% 9.9% 9.5% Common equity tier 1/Risk-weighted assets 11.7% 12.4% 12.3% Tier 1 capital/Risk-weighted assets 12.0% 12.7% 12.6% Total capital/Risk-weighted assets 15.0% 14.6% 14.4% Tier 1 capital /Average assets 10.0% 10.4% 10.5% C&D loans subject to 100% tier 1 capital plus ACL4 93% 91% 99% CRE loans subject to 300% tier 1 capital plus ACL4 228% 247% 254% Capital position 1 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 4Q20, 3Q21 and 4Q21, respectively, $52.1 million, $44.4 million and $40.9 million are being added back to CET 1 and Tier 1 Capital, and $58.0 million, $50.2 million and $46.8 million are being taken out of Tier 2 capital. 2 Total regulatory capital, FB Financial Corporation. 4Q21 calculation is preliminary and subject to change. 3 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 4 Tier 1 capital at FirstBank as defined in Call Report.

9 Noninterest- bearing checking 25% Interest-bearing checking 32% Money market 28% Savings 4% Time 11% 57% Checking accounts Valuable core deposit base ¹ Includes mortgage servicing-related deposits of $147.9 million, $170.9 million, $166.1 million, $190.6 million and $127.6 million for the quarters ended December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021, respectively. Total deposits ($mm) Cost of deposits Noninterest bearing deposits1 ($mm) Deposit composition $9,396 $10,219 $10,163 $10,044 $10,809 $62 $38 $41 $28 $27 $9,458 $10,257 $10,204 $10,072 $10,837 4Q20 1Q21 2Q21 3Q21 4Q21 Customer deposits Brokered and internet time deposits $2,274 $2,431 $2,485 $2,610 $2,740 4Q20 1Q21 2Q21 3Q21 4Q21 24.0% 23.7% 24.4% 25.9% 25.3% 0.46% 0.41% 0.31% 0.26% 0.22% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 4Q20 1Q21 2Q21 3Q21 4Q21 Noninterest bearing (%) Cost of total deposits (%)

10 Retail 19% Office 18% Hotel 17% Warehouse / Industrial 12% Land-Manufacture Home Community 5% Self Storage 4% Healthcare Facility 3% Other 22% 1-4 Family to be sold 39% Commercial Land 30% 1-4 Consumer Construction 9% Multifamily 5% Retail 4% Warehouse 3% Office 2% Other 8% 1-4 family 17% 1-4 family HELOC 5% Multifamily 4% C&D 17% CRE 23% C&I 30% Other 4% Balanced loan portfolio CRE2 exposure by type Portfolio mix 1 C&I includes owner-occupied CRE. 2 Excludes owner-occupied CRE. C&I1 exposure by industry 1 2 C&D exposure by type Balance Ex. PPP PPP C&I CRE-OO Total % of Total Loans Real Estate Rental and Leasing 256.6$ 160.5$ 417.1$ 18.6% 0.1 Finance and Insurance 246.9 11.3 258.2 11.5% 0.4 Retail Trade 117.4 127.2 244.6 10.9% 0.2 Manufacturing 148.9 59.0 207.9 9.3% 0.2 Health Care and Social Assistance 55.5 118.9 174.4 7.8% 0.2 Wholesale Trade 100.6 55.2 155.8 7.0% - Other Services (except Public Administration) 20.4 132.1 152.5 6.8% 0.0 Construction 73.4 48.1 121.5 5.4% 0.1 Accomodation and Food Services 22.5 88.0 110.5 5.0% 0.4 Transportation and Warehousing 78.8 18.5 97.3 4.3% 1.1 Professional, Scientific and Technical Services 34.2 24.4 58.6 2.6% 0.0 Arts, Entertainment and Recreation 22.7 33.5 56.2 2.5% - Information 19.8 14.7 34.5 1.6% 0.0 Other 88.9 60.2 149.1 6.7% 1.3 Total 1,286.6$ 951.6$ 2,238.2$ 100.0% 4.0$

11 0.91% 0.94% 0.83% 0.59% 0.62% 0.75% 0.77% 0.66% 0.50% 0.50% 4Q20 1Q21 2Q21 3Q21 4Q21 NPLs (HFI)/loans (HFI) NPAs/assets 2.48% 2.29% 2.03% 1.91% 1.65% 4Q20 1Q21 2Q21 3Q21 4Q21 0.58% 0.05% 0.02% 0.13% 0.12% 4Q20 1Q21 2Q21 3Q21 4Q21 Asset quality remains solid Nonperforming ratios Classified loans / loans HFI LLR/loans HFI (excluding PPP loans)2 Net charge-offs / average loans 1 Includes acquired excess land and facilities held for sale–see page 14 of the Quarterly Financial Supplement. 2 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. 1.87% 2.22% 2.09% 1.80% 1.66% 4Q20 1Q21 2Q21 3Q21 4Q21 1

12 Allowance for credit losses overview ACL / Loans HFI by Category ◼ Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: 1Source: Moody’s “November 2021 U.S. Macroeconomic Outlook Baseline and Alternative Scenarios”. 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 Owner-Occupied CRE; excludes $4.0 million, $9.4 million and $212.6 million in PPP loans for December 31, 2021, September 30, 2021 and December 31, 2020, respectively. 32 2.48% 0.86% 2.76% 4.78% 4.08% 1.76% 2.58% 3.54% 1.91% 1.25% 2.15% 2.50% 3.70% 1.45% 1.47% 3.46% 1.65% 1.26% 1.49% 2.15% 2.14% 1.50% 1.54% 3.35% Gross Loans HFI (Ex. PPP) Commercial & Industrial Non-Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC Consumer & Other 4Q 2020 3Q 2021 4Q 2021 FQE, FYE 12/31, 1Q 2022 2Q 2022 2021 2022 2023 2024 2025 GDP (bcw$) 19,728.5$ 19,782.0$ 19,403.0$ 19,819.0$ 20,278.0$ 20,882.1$ 21,841.8$ Annualized % Change 1.4% 1.1% 5.5% 2.1% 2.3% 3.0% 2.9% Total Employment (millions) 146.4 147.1 145.7 147.8 150.6 151.9 153.4 Unemployment Rate 6.6% 6.1% 5.9% 5.6% 4.3% 4.5% 4.1% CRE Price Index 313.0 304.0 320.7 308.1 348.1 372.9 396.6 NCREIF Property Index: Rate of Return 1.3% 0.8% 1.8% 1.1% 2.2% 2.9% 2.9%

13 Appendix

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

15 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings

16 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share*

17 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings

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

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

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

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

22 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity and tangible book value per share

23 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity

24 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity and adjusted pre-tax pre-provision return on average tangible common equity

25 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity

26 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity and adjusted pre-tax pre-provision return on average assets and equity

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

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