FB Financial Corp 8-K, filed Apr 26, 2021
FB Financial Corp (FBK)
8-K
2021-04-26
For: 2021-04-26
View Original
Added on
April 09, 2026
About this 8-K
FB Financial Corp filed this 8-K on April 26, 2021.
Items reported
- Item 2.01: Completed an acquisition or sale of assets
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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): April 26, 2021
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
(Address of principal executive offices) (Zip Code)
(615 ) 564-1212
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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 April 26, 2021, FB Financial Corporation (“FB Financial”) issued a press release announcing its financial results for the first quarter ended March 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 April 27, 2021, FB Financial will host a conference call to discuss financial results for the quarter ended March 31, 2021.
On April 26, 2021, FB Financial made available on its website (investors.firstbankonline.com) supplemental financial information for the first quarter ended March 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 ended March 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 | |||||||
| 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: April 26, 2021 | ||||||||
FB Financial Corporation Reports First Quarter 2021 Results
Reports Q1 net income of $52.9 million, diluted EPS of $1.10, ROAA of 1.86%, and ROAE of 16.5%
Adjusted Q1 net income* of $53.5 million, diluted EPS* of $1.12, ROAA* of 1.89%, and ROAE* of 16.6%
NASHVILLE, TENNESSEE— April 26, 2021--FB Financial Corporation (the “Company”) (NYSE: FBK), parent company of FirstBank, reported net income of $52.9 million, or $1.10 per diluted common share, for the first quarter of 2021, compared to net income of $0.7 million, or $0.02 per diluted common share, for the first quarter of 2020. Adjusting net income to exclude non-operating activity, net income was $53.5 million, or $1.12 per diluted common share for the three months ended March 31, 2021, compared to $5.3 million, or $0.17 per diluted common share, for the three months ended March 31, 2020.
For the three months ended March 31, 2021, the company reported net income of $52.9 million, or $1.10 per diluted common share, compared to net income of $45.6 million, or $0.95 per diluted common share, for the three months ended December 31, 2020. Adjusting net income to exclude non-operating items, net income was $53.5 million, or $1.12 per diluted common share, for the three months ended March 31, 2021, compared to adjusted net income of $54.5 million, or $1.14 per diluted common share, for the three months ended December 31, 2020. The Company’s book value per share increased at quarter end over the comparable value at December 31, 2020, by $0.73, or 10.9% annualized, to $28.08. The Company's tangible book value per share increased by $0.78, or 14.6% annualized, over the prior quarter, and the return on tangible common equity was 20.6% for the current quarter.
President and Chief Executive Officer, Christopher T. Holmes stated, “Our team has spent the first part of 2021 focusing on deepening and expanding customer relationships. Our efforts were rewarded as we delivered adjusted ROAA of 1.89% and adjusted ROATCE of 20.9% for the quarter. These strong financial results demonstrate the strength of our franchise as well as the ongoing recovery of our markets.”
Holmes commented further, “We also added value for our shareholders by increasing our tangible book value per share by $0.78 during the quarter to $22.51. Our credit metrics remained strong, resulting in a release from our allowance for credit losses and unfunded commitments of $13.9 million during the quarter. The allowance for credit losses to loans held for investment ratio was a healthy 2.24% at quarter end after the release.”
Performance Summary
| 2021 | 2020 | Annualized | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands, expect per share data) | First Quarter | Fourth Quarter | First Quarter | 1Q21 / 4Q20 % Change | 1Q21 / 1Q20 % Change | |||||||||||||||||||||||||||||||||
| Balance Sheet Highlights | ||||||||||||||||||||||||||||||||||||||
| Investment securities | $ | 1,229,845 | $ | 1,176,991 | $ | 767,575 | 18.2 | % | 60.2 | % | ||||||||||||||||||||||||||||
| Mortgage loans held for sale, at fair value | 834,779 | 683,770 | 325,304 | 89.6 | % | 156.6 | % | |||||||||||||||||||||||||||||||
| Commercial loans held for sale, at fair value | 174,983 | 215,403 | — | (76.1) | % | 100.0 | % | |||||||||||||||||||||||||||||||
| Loans held for investment (HFI) | 7,047,342 | 7,082,959 | 4,568,038 | (2.04) | % | 54.3 | % | |||||||||||||||||||||||||||||||
| Adjusted loans held for investment* | 6,901,645 | 6,870,314 | 4,568,038 | 1.85 | % | 51.1 | % | |||||||||||||||||||||||||||||||
| Allowance for credit losses | 157,954 | 170,389 | 89,141 | (29.6) | % | 77.2 | % | |||||||||||||||||||||||||||||||
| Total assets | 11,935,826 | 11,207,330 | 6,655,687 | 26.4 | % | 79.3 | % | |||||||||||||||||||||||||||||||
| Customer deposits | 10,219,173 | 9,396,478 | 5,356,569 | 35.5 | % | 90.8 | % | |||||||||||||||||||||||||||||||
| Brokered and internet time deposits | 37,713 | 61,559 | 20,363 | (157.1) | % | 85.2 | % | |||||||||||||||||||||||||||||||
| Total deposits | 10,256,886 | 9,458,037 | 5,376,932 | 34.3 | % | 90.8 | % | |||||||||||||||||||||||||||||||
| Borrowings | 180,179 | 238,324 | 327,822 | (98.9) | % | (45.0) | % | |||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,329,103 | 1,291,289 | 782,330 | 11.9 | % | 69.9 | % | |||||||||||||||||||||||||||||||
| Book value per share | $ | 28.08 | $ | 27.35 | $ | 24.40 | 10.8 | % | 15.1 | % | ||||||||||||||||||||||||||||
Total common shareholders' equity to total assets | 11.1 | % | 11.5 | % | 11.8 | % | ||||||||||||||||||||||||||||||||
| Tangible book value per share* | $ | 22.51 | $ | 21.73 | $ | 18.35 | 14.6 | % | 22.7 | % | ||||||||||||||||||||||||||||
| Tangible common equity to tangible assets* | 9.13 | % | 9.38 | % | 9.11 | % | ||||||||||||||||||||||||||||||||
* Certain measures are considered non-GAAP financial measures. See “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information, which accompanies this Earnings Release, as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release Presentation dated April 27, 2021, for a reconciliation and discussion of this non-GAAP measure. | ||||||||||||||||||||||||||||||||||||||
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FB Financial Corporation
First Quarter 2021 Results
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| 2021 | 2020 | |||||||||||||||||||||||||
| (dollars in thousands, except share data) | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||
| Results of operations | ||||||||||||||||||||||||||
| Net interest income | $ | 82,576 | $ | 85,244 | $ | 56,249 | ||||||||||||||||||||
| NIM | 3.19 | % | 3.32 | % | 3.92 | % | ||||||||||||||||||||
| Provisions for credit losses | $ | (13,854) | $ | (2,920) | $ | 29,565 | ||||||||||||||||||||
| Net charge-off (recovery) ratio | 0.05 | % | 0.58 | % | 0.19 | % | ||||||||||||||||||||
| Noninterest income | $ | 66,730 | $ | 80,638 | $ | 42,700 | ||||||||||||||||||||
| Mortgage banking income | $ | 55,332 | $ | 65,729 | $ | 32,745 | ||||||||||||||||||||
| Total revenue | $ | 149,306 | $ | 165,882 | $ | 98,949 | ||||||||||||||||||||
| Noninterest expense | $ | 94,698 | $ | 109,855 | $ | 68,559 | ||||||||||||||||||||
| Merger expenses | $ | — | $ | 9,513 | $ | 3,050 | ||||||||||||||||||||
| Efficiency ratio | 63.4 | % | 66.2 | % | 69.3 | % | ||||||||||||||||||||
| Core efficiency ratio* | 63.0 | % | 58.5 | % | 65.7 | % | ||||||||||||||||||||
| Adjusted pre-tax, pre-provision earnings* | $ | 55,461 | $ | 67,988 | $ | 33,440 | ||||||||||||||||||||
Total adjusted mortgage banking pre-tax net contribution* | $ | 16,348 | $ | 22,882 | $ | 8,019 | ||||||||||||||||||||
Net income applicable to FB Financial Corporation(1) | $ | 52,874 | $ | 45,602 | $ | 745 | ||||||||||||||||||||
| Diluted earnings per common share | $ | 1.10 | $ | 0.95 | $ | 0.02 | ||||||||||||||||||||
| Effective tax rate | 22.8 | % | 22.6 | % | 9.70 | % | ||||||||||||||||||||
| Weighted average number of shares outstanding - fully diluted | 47,969,106 | 47,791,659 | 31,734,112 | |||||||||||||||||||||||
| Actual shares outstanding - period end | 47,331,680 | 47,220,743 | 32,067,356 | |||||||||||||||||||||||
| Returns on average: | ||||||||||||||||||||||||||
| As reported | ||||||||||||||||||||||||||
| Assets ("ROAA") | 1.86 | % | 1.63 | % | 0.05 | % | ||||||||||||||||||||
| Equity ("ROAE") | 16.5 | % | 14.4 | % | 0.39 | % | ||||||||||||||||||||
Tangible common equity ("ROATCE")* | 20.6 | % | 18.2 | % | 0.52 | % | ||||||||||||||||||||
* Certain measures are considered non-GAAP financial measures. See "Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information, which accompanies this Earnings Release, as well as "Use of non-GAAP Financial Measures" and the Appendix in the Earnings Release Presentation dated April 27, 2021, for a reconciliation and discussion of this non-GAAP measure. (1) Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in fourth quarter of 2020. | ||||||||||||||||||||||||||
Balance Sheet Growth
The Company reported loan balances (HFI) of $7.05 billion, a decrease of $35.6 million, or 2.0% annualized, from the three months ended December 31, 2020. Excluding Paycheck Protection Program ("PPP") loans, adjusted loans (HFI) were $6.90 billion, an increase of $31.3 million, or 1.85% annualized, from the three months ended December 31, 2020. The contractual yield on loans remained consistent at 4.39% in both the first quarter of 2021 and the fourth quarter of 2020. Excluding PPP loans, the contractual yield was 4.48% in the first quarter of 2021, compared to 4.53% in the fourth quarter of 2020.
During the first quarter of 2021, the Company grew customer deposits by $822.7 million to $10.22 billion, reflecting annualized linked quarter growth of 35.5%. Included in this growth is an increase of $22.9 million in mortgage servicing related deposits. The Company's total cost of deposits declined by five basis points to 0.41% and the cost of interest-bearing deposits decreased on a linked quarter basis to 0.53% from 0.63%.
Additionally, during the quarter, on balance sheet liquidity increased to $2.26 billion, or 19.3% of tangible assets, from $1.69 billion, or 15.4% of tangible assets at the end of the fourth quarter of 2020. During the first quarter of 2021, investment securities increased by $52.9 million from the previous quarter to $1.23 billion, or 10.3% of total assets, while cash and cash equivalents increased by $577.2 million compared with the end of the fourth quarter of 2020 to $1.90 billion.
The Company's net interest income for the first quarter of 2021 was $82.6 million, a decrease from $85.2 million from the previous quarter and an increase from $56.2 million in the first quarter of 2020. The Company's net interest margin (“NIM”) was 3.19% for the first quarter, compared to 3.32% and 3.92% for the fourth quarter of 2020 and the first quarter of 2020, respectively. Accretion related to purchased loans contributed 0 basis points to the NIM in the first quarter of 2021 compared to 3 and 11 basis points for the fourth quarter of 2020 and the first quarter of 2020, respectively. The NIM for the first quarter of 2021 was impacted by a 16 basis point decline in the yield on interest-earning assets and an 8 basis point decline in the cost of interest-bearing liabilities on a linked quarter basis. As of March 31, 2021, $164.2 million in PPP loans had been forgiven, which accounts for 52.2% of originated PPP loans. For the first quarter of 2021, the average yield on PPP loans was 4.77%, inclusive of $1.6 million in loan fees recognized during the quarter.
Holmes commented, “We had adjusted annualized loan growth of 1.85% during the quarter as we started to see some momentum in March in our markets. We also saw a robust increase in our deposits driven by our public fund relationships.”
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FB Financial Corporation
First Quarter 2021 Results
Page 3
Seasonal Impact of Noninterest Income
Noninterest income was $66.7 million for the first quarter of 2021, compared to $80.6 million for the fourth quarter of 2020 and $42.7 million for the first quarter of 2020. Mortgage banking income was $55.3 million for the first quarter of 2021, compared to $65.7 million for the fourth quarter of 2020 and $32.7 million for the first quarter of 2020.
During the quarter, the Company achieved strong first quarter results from its mortgage business, capitalizing on the early quarter rate environment. Interest rate lock commitment volume totaled $1.89 billion in the first quarter of 2021 compared to $2.19 billion in the fourth quarter of 2020 and $2.09 billion in the first quarter of 2020.
During the first quarter of 2021, the Company's total mortgage banking pre-tax direct contribution was $16.3 million, compared to $22.2 million in the fourth quarter of 2020 and $8.0 million in the first quarter of 2020.
Chief Financial Officer Michael Mettee stated, “The mortgage market and originations held up nicely through most of the first quarter, leading to a strong first quarter contribution. The swift rise in mortgage interest rates slowed refinance volume later in the quarter.”
Noninterest Expenses Seasonably High
Noninterest expenses were $94.7 million for the first quarter of 2021, compared to $109.9 million for the fourth quarter of 2020 and $68.6 million for the first quarter of 2020. Core noninterest expense was $94.7 million for the first quarter of 2021, $95.8 million for the fourth quarter of 2020, and $65.5 million for the first quarter of 2020.
During the first quarter of 2021, the Company achieved a core efficiency ratio of 63.0%, compared to 58.5% in the fourth quarter of 2020 and 65.7% for the first quarter of 2020. The banking segment experienced a core efficiency ratio of 58.6% for the first quarter of 2021, compared to 54.0% in the fourth quarter of 2020 and 60.9% in the first quarter of 2020. The mortgage segment experienced a core efficiency ratio of 70.4% for the first quarter of 2021, compared to 65.2% in the fourth quarter of 2020 and 75.6% in the first quarter of 2020.
Mettee noted, “The mortgage efficiency ratio the past two quarters has been moving back towards the 80% range as the historic margins of the second and third quarters of 2020 are quickly returning to pre-pandemic levels. In the banking segment, expenses were seasonally elevated during the quarter as a result of payroll taxes and 401(k) contributions related to annual incentive compensation. We are focused on growing earning assets, bringing down funding costs and managing expenses to improve our efficiency. We strive to balance the current expense levels with our long term vision and investments that will yield results in the future.”
Improving Credit Outlook
During the first quarter of 2021, the Company recognized a reversal in total provision for credit losses of $13.9 million, including a provision for unfunded commitments of $2.2 million. The Company continues to maintain a strong balance sheet with an ACL of $158.0 million, or 2.24% of loans HFI, or 2.29% when adjusted to exclude PPP loans.
The Company's net charge-offs to average loans was 0.05% for the first quarter of 2021 compared to net charge-offs to average loans of 0.58% in the fourth quarter of 2020. The Company's nonperforming assets increased to 0.77% of total assets as of March 31, 2021, compared to 0.75% at December 31, 2020. Nonperforming loans were 0.94% of loans (HFI) at March 31, 2021, compared to 0.91% at December 31, 2020. Deferrals resulting from the COVID-19 pandemic decreased to $152.2 million, or 2.16% of loans HFI as of March 31, 2021, compared to the aggregate balance deferred throughout the crisis of $1.64 billion. Of the $152.2 million in remaining deferrals, $20.7 million, or 0.29% of loans HFI, as of March 31, 2021, are receiving a full deferral of principal and interest, while $131.4 million, or 1.86% of loans HFI, as of March 31, 2021, are making interest payments and deferring principal payments.
Holmes commented, “I am optimistic that the economy and the markets we serve are poised for a strong 2021. Some uncertainty still exists with regards to how recent stimulus will be distributed and implemented, however, the economy continues to gain momentum which will likely result in future reserve releases from our ACL. At this point in the cycle given our outlook and economic indicators, we are pleased with our position.”
Strength in Capital Position
“We remain in a position of strength with regard to capital and are positioned to take opportunities to deploy capital as they arise. Total capital to risk weighted assets was 14.8% at quarter end and our current level of tangible common equity to tangible assets is 9.13%,” commented Holmes.
Summary
Holmes further commented, “The first quarter of 2021 was a good start to the year for us. We delivered adjusted ROATCE of greater than 20%, grew tangible book value per share by 14.6% annualized and saw growth trends begin to emerge. We remain comfortable and confident in our credit portfolio, and we have seen positive economic trends in our markets. With those considerations, we are optimistic about the year.”
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FB Financial Corporation
First Quarter 2021 Results
Page 4
WEBCAST AND CONFERENCE CALL INFORMATION
FB Financial Corporation will host a conference call to discuss the Company's financial results at 8:00 a.m. CT on April 27, 2021, and the conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1631/40699. An online replay will be available approximately an hour following the conclusion of the live broadcast.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a 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 81 full-service bank branches across Tennessee, Kentucky, North Alabama and North Georgia, and mortgage offices across the Southeast. FirstBank serves five of the largest metropolitan markets in Tennessee and has approximately $11.9 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 April 26, 2021.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part of 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 will be included in the Company's 10-Q filed with the SEC for the three months 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 projected impact of the COVID-19 global pandemic on our business operations, statements relating to the benefits, costs, and synergies of the merger with Franklin Financial Network, Inc. (“Franklin”) (the “merger”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which we operate and/or the US economy generally, (2) the effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business and our customers' business, results of operations, asset quality and financial condition, as well as the efficacy, distribution, and public adoption of vaccines, (3) changes in government interest rate policies and its impact on our business, net interest margin, and mortgage operations, (4) our ability to effectively manage problem credits, (5) the risk that the cost savings and any revenue synergies from the merger or another acquisition may not be realized or may take longer than anticipated to be realized, (6) the ability of FB Financial to effectively integrate and manage the larger and more complex operations of the combined company following the merger, (7) FB Financial’s ability to successfully execute its various business strategies, (8) the impact of the recent change in the U.S. presidential administration and Congress and any resulting impact on economic policy, capital markets, federal regulation, and the response to the COVD-19 pandemic, (9) the potential impact of the proposed phase-out of the London
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FB Financial Corporation
First Quarter 2021 Results
Page 5
Interbank Offered Rate ("LIBOR") or other changes involving LIBOR (10) the effectiveness of our cyber security controls and procedures to prevent and mitigate attempted intrusions, (11) 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 (12) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any of FB Financial's subsequent filings with the Securities and Exchange Commission (the “SEC”). Many of these factors are beyond FB Financial’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this release, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the company.
FB Financial qualifies all forward-looking statements by these cautionary statements.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This Earnings Release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures include, without limitation, adjusted earnings, adjusted diluted earnings per 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 return on average tangible common equity, adjusted pre-tax pre-provision return on average tangible common equity, 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 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 and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.
The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrate the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. Investors should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release Presentation dated April 27, 2021, for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.
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FB Financial Corporation
First Quarter 2021 Results
Page 6
| Financial Summary and Key Metrics | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||
| Statement of Income Data | ||||||||||||||||||||||||||||||||||||||
| Total interest income | $ | 94,785 | $ | 98,236 | $ | 69,674 | ||||||||||||||||||||||||||||||||
| Total interest expense | 12,209 | 12,992 | 13,425 | |||||||||||||||||||||||||||||||||||
| Net interest income | 82,576 | 85,244 | 56,249 | |||||||||||||||||||||||||||||||||||
| Total noninterest income | 66,730 | 80,638 | 42,700 | |||||||||||||||||||||||||||||||||||
| Total noninterest expense | 94,698 | 109,855 | 68,559 | |||||||||||||||||||||||||||||||||||
| Earnings before income taxes and provisions for credit losses | 54,608 | 56,027 | 30,390 | |||||||||||||||||||||||||||||||||||
| Provisions for credit losses | (13,854) | (2,920) | 29,565 | |||||||||||||||||||||||||||||||||||
| Income tax expense | 15,588 | 13,337 | 80 | |||||||||||||||||||||||||||||||||||
| Net income applicable to noncontrolling interest | — | 8 | — | |||||||||||||||||||||||||||||||||||
Net income applicable to FB Financial Corporation(c) | $ | 52,874 | $ | 45,602 | $ | 745 | ||||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 83,368 | $ | 86,111 | $ | 56,784 | ||||||||||||||||||||||||||||||||
| Adjusted net income* | $ | 53,505 | $ | 54,454 | $ | 5,296 | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax, pre-provision earnings* | $ | 55,461 | $ | 67,988 | $ | 33,440 | ||||||||||||||||||||||||||||||||
| Per Common Share | ||||||||||||||||||||||||||||||||||||||
| Diluted net income | $ | 1.10 | $ | 0.95 | $ | 0.02 | ||||||||||||||||||||||||||||||||
| Adjusted diluted net income* | 1.12 | 1.14 | 0.17 | |||||||||||||||||||||||||||||||||||
| Book value | 28.08 | 27.35 | 24.40 | |||||||||||||||||||||||||||||||||||
| Tangible book value* | 22.51 | 21.73 | 18.35 | |||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding - fully diluted | 47,969,106 | 47,791,659 | 31,734,112 | |||||||||||||||||||||||||||||||||||
| Period-end number of shares | 47,331,680 | 47,220,743 | 32,067,356 | |||||||||||||||||||||||||||||||||||
| Selected Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,895,133 | $ | 1,317,898 | $ | 425,094 | ||||||||||||||||||||||||||||||||
| Loans held for investment (HFI) | 7,047,342 | 7,082,959 | 4,568,038 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses(a) | (157,954) | (170,389) | (89,141) | |||||||||||||||||||||||||||||||||||
| Mortgage loans held for sale, at fair value | 834,779 | 683,770 | 325,304 | |||||||||||||||||||||||||||||||||||
| Commercial loans held for sale, at fair value | 174,983 | 215,403 | — | |||||||||||||||||||||||||||||||||||
| Investment securities, at fair value | 1,229,845 | 1,176,991 | 767,575 | |||||||||||||||||||||||||||||||||||
| Other real estate owned, net | 11,177 | 12,111 | 17,072 | |||||||||||||||||||||||||||||||||||
| Total assets | 11,935,826 | 11,207,330 | 6,655,687 | |||||||||||||||||||||||||||||||||||
| Customer deposits | 10,219,173 | 9,396,478 | 5,356,569 | |||||||||||||||||||||||||||||||||||
| Brokered and internet time deposits | 37,713 | 61,559 | 20,363 | |||||||||||||||||||||||||||||||||||
| Total deposits | 10,256,886 | 9,458,037 | 5,376,932 | |||||||||||||||||||||||||||||||||||
| Borrowings | 180,179 | 238,324 | 327,822 | |||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,329,103 | 1,291,289 | 782,330 | |||||||||||||||||||||||||||||||||||
| Selected Ratios | ||||||||||||||||||||||||||||||||||||||
| Return on average: | ||||||||||||||||||||||||||||||||||||||
| Assets | 1.86 | % | 1.63 | % | 0.05 | % | ||||||||||||||||||||||||||||||||
| Shareholders' equity | 16.5 | % | 14.4 | % | 0.39 | % | ||||||||||||||||||||||||||||||||
| Tangible common equity* | 20.6 | % | 18.2 | % | 0.52 | % | ||||||||||||||||||||||||||||||||
| Average shareholders' equity to average assets | 11.3 | % | 11.3 | % | 12.0 | % | ||||||||||||||||||||||||||||||||
| Net interest margin (NIM) (tax-equivalent basis) | 3.19 | % | 3.32 | % | 3.92 | % | ||||||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 63.4 | % | 66.2 | % | 69.3 | % | ||||||||||||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis)* | 63.0 | % | 58.5 | % | 65.7 | % | ||||||||||||||||||||||||||||||||
| Loans HFI to deposit ratio | 68.7 | % | 74.9 | % | 85.0 | % | ||||||||||||||||||||||||||||||||
| Total loans to deposit ratio | 78.6 | % | 84.4 | % | 91.0 | % | ||||||||||||||||||||||||||||||||
| Yield on interest-earning assets | 3.66 | % | 3.82 | % | 4.84 | % | ||||||||||||||||||||||||||||||||
| Cost of interest-bearing liabilities | 0.65 | % | 0.73 | % | 1.27 | % | ||||||||||||||||||||||||||||||||
| Cost of total deposits | 0.41 | % | 0.46 | % | 0.94 | % | ||||||||||||||||||||||||||||||||
| Credit Quality Ratios | ||||||||||||||||||||||||||||||||||||||
Allowance for credit losses as a percentage of loans HFI(a) | 2.24 | % | 2.41 | % | 1.95 | % | ||||||||||||||||||||||||||||||||
Adjusted allowance for credit losses as a percentage of loans HFI*(a) | 2.29 | % | 2.48 | % | 1.95 | % | ||||||||||||||||||||||||||||||||
| Net charge-offs (recoveries) as a percentage of average loans HFI | 0.05 | % | 0.58 | % | 0.19 | % | ||||||||||||||||||||||||||||||||
| Nonperforming loans HFI as a percentage of total loans HFI | 0.94 | % | 0.91 | % | 0.68 | % | ||||||||||||||||||||||||||||||||
| Nonperforming assets as a percentage of total assets | 0.77 | % | 0.75 | % | 0.74 | % | ||||||||||||||||||||||||||||||||
| Preliminary capital ratios (Consolidated) | ||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity to assets | 11.1 | % | 11.5 | % | 11.8 | % | ||||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets* | 9.13 | % | 9.38 | % | 9.11 | % | ||||||||||||||||||||||||||||||||
| Tier 1 capital (to average assets) | 10.1 | % | 10.0 | % | 10.3 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets)(b) | 12.5 | % | 12.0 | % | 11.6 | % | ||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets)(b) | 14.8 | % | 15.0 | % | 12.5 | % | ||||||||||||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets) (CET1)(b) | 12.1 | % | 11.7 | % | 11.0 | % | ||||||||||||||||||||||||||||||||
(a) Excludes reserve for credit losses on unfunded commitments of $14.2 million, $16.4 million, and $4.6 million recorded in accrued expenses and other liabilities at March 31, 2021, December 31, 2020, and March 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 2020.
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.
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FB Financial Corporation
First Quarter 2021 Results
Page 7
| Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
| For the Periods Ended | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | |||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||
| Adjusted earnings | First Quarter | Fourth Quarter | First Quarter | ||||||||||||||||||||||||||
| Income before income taxes | $ | 68,462 | $ | 58,947 | $ | 825 | |||||||||||||||||||||||
| Plus merger expenses | — | 9,513 | 3,050 | ||||||||||||||||||||||||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | — | 2,885 | ||||||||||||||||||||||||||
Less other non-operating items(1) | (853) | (2,448) | — | ||||||||||||||||||||||||||
| Adjusted pre-tax earnings | $ | 69,315 | $ | 70,908 | $ | 6,760 | |||||||||||||||||||||||
| Income tax expense, adjusted | 15,810 | 16,454 | 1,464 | ||||||||||||||||||||||||||
| Adjusted earnings | $ | 53,505 | $ | 54,454 | $ | 5,296 | |||||||||||||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,969,106 | 47,791,659 | 31,734,112 | ||||||||||||||||||||||||||
| Adjusted diluted earnings per share | |||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 1.10 | $ | 0.95 | $ | 0.02 | |||||||||||||||||||||||
| Plus merger expenses | — | 0.20 | 0.10 | ||||||||||||||||||||||||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | — | 0.09 | ||||||||||||||||||||||||||
| Less other non-operating items | (0.02) | (0.05) | — | ||||||||||||||||||||||||||
| Less tax effect | — | 0.06 | 0.04 | ||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.12 | $ | 1.14 | $ | 0.17 | |||||||||||||||||||||||
(1)1Q2021 includes $853 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q2020 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. | |||||||||||||||||||||||||||||
| Adjusted earnings | YTD 2021 | 2020 | 2019 | ||||||||||||||||||||||||||
| Income before income taxes | $ | 68,462 | $ | 82,461 | $ | 109,539 | |||||||||||||||||||||||
| Plus merger 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) | (853) | (4,400) | — | ||||||||||||||||||||||||||
| Adjusted pre-tax earnings | $ | 69,315 | $ | 187,876 | $ | 116,919 | |||||||||||||||||||||||
| Income tax expense, adjusted | 15,810 | 45,944 | 27,648 | ||||||||||||||||||||||||||
| Adjusted earnings | $ | 53,505 | $ | 141,932 | $ | 89,271 | |||||||||||||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,969,106 | 38,099,744 | 31,402,897 | ||||||||||||||||||||||||||
| Adjusted diluted earnings per share | |||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 1.10 | $ | 1.67 | $ | 2.65 | |||||||||||||||||||||||
| Plus merger expenses | — | 0.92 | 0.24 | ||||||||||||||||||||||||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | 1.74 | — | ||||||||||||||||||||||||||
| Less other non-operating items | (0.02) | (0.11) | — | ||||||||||||||||||||||||||
| Less tax effect | — | 0.71 | 0.06 | ||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.12 | $ | 3.73 | $ | 2.83 | |||||||||||||||||||||||
(1) 2021 includes $853 loss from change in fair value on commercial loans held for sale acquired from Franklin; 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. | |||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | First Quarter | Fourth Quarter | First Quarter | ||||||||||||||||||||||||||
| Income before income taxes | $ | 68,462 | $ | 58,947 | $ | 825 | |||||||||||||||||||||||
| Plus provisions for credit losses | (13,854) | (2,920) | 29,565 | ||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | 54,608 | 56,027 | 30,390 | ||||||||||||||||||||||||||
| Plus merger expenses | — | 9,513 | 3,050 | ||||||||||||||||||||||||||
| Less other non-operating items | (853) | (2,448) | — | ||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 33,440 | |||||||||||||||||||||||
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FB Financial Corporation
First Quarter 2021 Results
Page 8
| Non-GAAP Reconciliation | |||||||||||||||||||||||||||||
| For the Periods Ended | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | |||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis) | First Quarter | Fourth Quarter | First Quarter | ||||||||||||||||||||||||||
| Total noninterest expense | $ | 94,698 | $ | 109,855 | $ | 68,559 | |||||||||||||||||||||||
| Less merger expenses | — | 9,513 | 3,050 | ||||||||||||||||||||||||||
| Less FHLB prepayment penalties | — | $ | 4,533 | — | |||||||||||||||||||||||||
| Core noninterest expense | $ | 94,698 | $ | 95,809 | $ | 65,509 | |||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 83,368 | $ | 86,111 | $ | 56,784 | |||||||||||||||||||||||
| Total noninterest income | 66,730 | 80,638 | 42,700 | ||||||||||||||||||||||||||
| Less (loss) gain on change in fair value on commercial loans held for sale and cash life insurance benefit | (853) | 2,085 | — | ||||||||||||||||||||||||||
| Less gain (loss) on sales or write-downs of other real estate owned and other assets | 485 | (57) | (277) | ||||||||||||||||||||||||||
| Less gain from securities, net | 83 | 1,013 | 63 | ||||||||||||||||||||||||||
| Core noninterest income | 67,015 | 77,597 | 42,914 | ||||||||||||||||||||||||||
| Core revenue | $ | 150,383 | $ | 163,708 | $ | 99,698 | |||||||||||||||||||||||
Efficiency ratio (GAAP)(a) | 63.4 | % | 66.2 | % | 69.3 | % | |||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis) | 63.0 | % | 58.5 | % | 65.7 | % | |||||||||||||||||||||||
| (a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue | |||||||||||||||||||||||||||||
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FB Financial Corporation
First 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. 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. | ||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Banking segment core efficiency ratio (tax equivalent) | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Core noninterest expense | $ | 94,698 | $ | 95,809 | $ | 65,509 | ||||||||||||||||||||||||||||||||
| Less Mortgage segment core noninterest expense | 38,963 | 42,884 | 24,742 | |||||||||||||||||||||||||||||||||||
| Core Banking segment noninterest expense | $ | 55,735 | $ | 52,925 | 40,767 | |||||||||||||||||||||||||||||||||
| Core revenue | $ | 150,383 | $ | 163,708 | 99,698 | |||||||||||||||||||||||||||||||||
| Less Mortgage segment total revenue | 55,311 | 65,729 | 32,745 | |||||||||||||||||||||||||||||||||||
| Core Banking segment total revenue | $ | 95,072 | $ | 97,979 | $ | 66,953 | ||||||||||||||||||||||||||||||||
| Banking segment core efficiency ratio (tax-equivalent basis) | 58.6 | % | 54.0 | % | 60.9 | % | ||||||||||||||||||||||||||||||||
| Mortgage segment core efficiency ratio (tax equivalent) | ||||||||||||||||||||||||||||||||||||||
| Mortgage segment noninterest expense | $ | 38,963 | $ | 43,609 | $ | 24,742 | ||||||||||||||||||||||||||||||||
| Less mortgage segment merger expense | — | 725 | — | |||||||||||||||||||||||||||||||||||
| Core Mortgage segment noninterest expense | $ | 38,963 | $ | 42,884 | $ | 24,742 | ||||||||||||||||||||||||||||||||
| Mortgage segment total revenue | $ | 55,311 | $ | 65,729 | $ | 32,745 | ||||||||||||||||||||||||||||||||
| Mortgage segment core efficiency ratio (tax-equivalent basis) | 70.4 | % | 65.2 | % | 75.6 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Adjusted mortgage contribution | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Total mortgage banking pre-tax net contribution | $ | 16,348 | $ | 22,157 | $ | 8,019 | ||||||||||||||||||||||||||||||||
| Plus mortgage merger expense | — | 725 | — | |||||||||||||||||||||||||||||||||||
| Total adjusted mortgage banking pre-tax net contribution | $ | 16,348 | $ | 22,882 | $ | 8,019 | ||||||||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | $ | 54,608 | $ | 56,027 | $ | 30,390 | ||||||||||||||||||||||||||||||||
| % total mortgage banking pre-tax pre-provision net contribution | 29.9 | % | 39.5 | % | 26.4 | % | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 33,440 | ||||||||||||||||||||||||||||||||
| % total adjusted mortgage banking pre-tax pre-provision net contribution | 29.5 | % | 33.7 | % | 24.0 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Tangible assets and equity | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Tangible assets | ||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 11,935,826 | $ | 11,207,330 | $ | 6,655,687 | ||||||||||||||||||||||||||||||||
| Less goodwill | 242,561 | 242,561 | 174,859 | |||||||||||||||||||||||||||||||||||
| Less intangibles, net | 20,986 | 22,426 | 18,876 | |||||||||||||||||||||||||||||||||||
| Tangible assets | $ | 11,672,279 | $ | 10,942,343 | $ | 6,461,952 | ||||||||||||||||||||||||||||||||
| Tangible common equity | ||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | $ | 1,329,103 | $ | 1,291,289 | $ | 782,330 | ||||||||||||||||||||||||||||||||
| Less goodwill | 242,561 | 242,561 | 174,859 | |||||||||||||||||||||||||||||||||||
| Less intangibles, net | 20,986 | 22,426 | 18,876 | |||||||||||||||||||||||||||||||||||
| Tangible common equity | $ | 1,065,556 | $ | 1,026,302 | $ | 588,595 | ||||||||||||||||||||||||||||||||
| Common shares outstanding | 47,331,680 | 47,220,743 | 32,067,356 | |||||||||||||||||||||||||||||||||||
| Book value per common share | $ | 28.08 | $ | 27.35 | $ | 24.40 | ||||||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 22.51 | $ | 21.73 | $ | 18.35 | ||||||||||||||||||||||||||||||||
| Total common shareholders' equity to total assets | 11.1 | % | 11.5 | % | 11.8 | % | ||||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets | 9.13 | % | 9.38 | % | 9.11 | % | ||||||||||||||||||||||||||||||||
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FB Financial Corporation
First 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 | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Total average shareholders' equity | $ | 1,303,493 | $ | 1,261,101 | $ | 768,929 | ||||||||||||||||||||||||||||||||
| Less average goodwill | 242,561 | 242,983 | 171,532 | |||||||||||||||||||||||||||||||||||
| Less average intangibles, net | 21,695 | 23,178 | 18,152 | |||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 579,245 | ||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 45,602 | $ | 745 | ||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 20.6 | % | 18.2 | % | 0.52 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 579,245 | ||||||||||||||||||||||||||||||||
| Adjusted net income | 53,505 | 54,454 | 5,296 | |||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | 20.9 | % | 21.8 | % | 3.68 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average tangible common equity | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 579,245 | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | 55,461 | 67,988 | 33,440 | |||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average tangible common equity | 21.6 | % | 27.2 | % | 23.2 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Adjusted return on average assets and equity | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 45,602 | $ | 745 | ||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 11,111,163 | 6,409,417 | |||||||||||||||||||||||||||||||||||
| Average equity | 1,303,493 | 1,261,101 | 768,929 | |||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 1.63 | % | 0.05 | % | ||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 14.4 | % | 0.39 | % | ||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 53,505 | $ | 54,454 | $ | 5,296 | ||||||||||||||||||||||||||||||||
| Adjusted return on average assets | 1.89 | % | 1.95 | % | 0.33 | % | ||||||||||||||||||||||||||||||||
| Adjusted return on average equity | 16.6 | % | 17.2 | % | 2.77 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets and equity | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 45,602 | $ | 745 | ||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 11,111,163 | 6,409,417 | |||||||||||||||||||||||||||||||||||
| Average equity | 1,303,493 | 1,261,101 | 768,929 | |||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 1.63 | % | 0.05 | % | ||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 14.4 | % | 0.39 | % | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 33,440 | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets | 1.95 | % | 2.43 | % | 2.10 | % | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average equity | 17.3 | % | 21.4 | % | 17.5 | % | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||
| Adjusted allowance for credit losses to loans held for investment | First Quarter | Fourth Quarter | First Quarter | |||||||||||||||||||||||
| Allowance for credit losses | $ | 157,954 | $ | 170,389 | $ | 89,141 | ||||||||||||||||||||
| Less allowance for credit losses attributed to PPP loans | 23 | 34 | — | |||||||||||||||||||||||
| Adjusted allowance for credit losses | $ | 157,931 | $ | 170,355 | $ | 89,141 | ||||||||||||||||||||
| Loans held for investment | $ | 7,047,342 | $ | 7,082,959 | $ | 4,568,038 | ||||||||||||||||||||
| Less PPP loans | 145,697 | 212,645 | — | |||||||||||||||||||||||
| Adjusted loans held for investment | $ | 6,901,645 | $ | 6,870,314 | $ | 4,568,038 | ||||||||||||||||||||
| Allowance for credit losses to loans held for investment | 2.24 | % | 2.41 | % | 1.95 | % | ||||||||||||||||||||
| Adjusted allowance for credit losses to loans held for investment | 2.29 | % | 2.48 | % | 1.95 | % | ||||||||||||||||||||
-END-
First Quarter 2021
Financial Supplement
TABLE OF CONTENTS
| Page | |||||
| Financial Summary and Key Metrics | |||||
| Consolidated Statements of Income | |||||
| Consolidated Balance Sheets | |||||
| Average Balance, Average Yield Earned and Average Rate Paid | |||||
| Loans and Deposits by Market | |||||
| Segment Data | |||||
| Loan Portfolio and Asset Quality | |||||
| Preliminary Capital Ratios | |||||
| Investment Portfolio | |||||
| Non-GAAP Reconciliation | |||||
Use of non-GAAP Financial Measures
This Supplemental Financial Information contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures include, without limitation, adjusted earnings, adjusted diluted earnings per 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 return on average tangible common equity, adjusted pre-tax pre-provision return on average tangible common equity, 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 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 and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.
The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. The Company includes tables under the Non-GAAP Reconciliation section of this document to provide a reconciliation of these measures to the most directly comparable GAAP financial measures.
| Financial Summary and Key Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||
| Statement of Income Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | $ | 94,785 | $ | 98,236 | $ | 81,127 | $ | 65,607 | $ | 69,674 | ||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 12,209 | 12,992 | 12,299 | 10,270 | 13,425 | |||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 82,576 | 85,244 | 68,828 | 55,337 | 56,249 | |||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 66,730 | 80,638 | 97,026 | 81,491 | 42,700 | |||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 94,698 | 109,855 | 118,092 | 80,579 | 68,559 | |||||||||||||||||||||||||||||||||||||||||||||
| Earnings before income taxes and provisions for credit losses | 54,608 | 56,027 | 47,762 | 56,249 | 30,390 | |||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | (13,854) | (2,920) | 55,401 | 25,921 | 29,565 | |||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 15,588 | 13,337 | (2,040) | 7,455 | 80 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income applicable to noncontrolling interest | — | 8 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) applicable to FB Financial Corporation(d) | $ | 52,874 | $ | 45,602 | $ | (5,599) | $ | 22,873 | $ | 745 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 83,368 | $ | 86,111 | $ | 69,625 | $ | 55,977 | $ | 56,784 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net income* | $ | 53,505 | $ | 54,454 | $ | 58,096 | $ | 24,086 | $ | 5,296 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax, pre-provision earnings* | $ | 55,461 | $ | 67,988 | $ | 70,444 | $ | 57,835 | $ | 33,440 | ||||||||||||||||||||||||||||||||||||||||
| Per Common Share | ||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net income (loss)(a) | $ | 1.10 | $ | 0.95 | $ | (0.14) | $ | 0.70 | $ | 0.02 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted net income* | 1.12 | 1.14 | 1.43 | 0.74 | 0.17 | |||||||||||||||||||||||||||||||||||||||||||||
| Book value | 28.08 | 27.35 | 26.38 | 25.08 | 24.40 | |||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value* | 22.51 | 21.73 | 20.87 | 19.07 | 18.35 | |||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding - fully diluted(a) | 47,969,106 | 47,791,659 | 40,637,745 | 32,506,417 | 31,734,112 | |||||||||||||||||||||||||||||||||||||||||||||
| Period-end number of shares | 47,331,680 | 47,220,743 | 47,191,677 | 32,101,108 | 32,067,356 | |||||||||||||||||||||||||||||||||||||||||||||
| Selected Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,895,133 | $ | 1,317,898 | $ | 1,062,391 | $ | 717,592 | $ | 425,094 | ||||||||||||||||||||||||||||||||||||||||
| Loans held for investment (HFI) | 7,047,342 | 7,082,959 | 7,213,538 | 4,827,023 | 4,568,038 | |||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses(b) | (157,954) | (170,389) | (183,973) | (113,129) | (89,141) | |||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held for sale | 834,779 | 683,770 | 610,695 | 435,479 | 325,304 | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial loans held for sale | 174,983 | 215,403 | 241,256 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Investment securities, at fair value | 1,229,845 | 1,176,991 | 1,164,910 | 751,767 | 767,575 | |||||||||||||||||||||||||||||||||||||||||||||
| Other real estate owned, net | 11,177 | 12,111 | 12,748 | 15,091 | 17,072 | |||||||||||||||||||||||||||||||||||||||||||||
| Total assets | 11,935,826 | 11,207,330 | 11,010,438 | 7,255,536 | 6,655,687 | |||||||||||||||||||||||||||||||||||||||||||||
| Customer deposits | 10,219,173 | 9,396,478 | 9,001,673 | 5,937,373 | 5,356,569 | |||||||||||||||||||||||||||||||||||||||||||||
| Brokered and internet time deposits | 37,713 | 61,559 | 92,074 | 15,428 | 20,363 | |||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 10,256,886 | 9,458,037 | 9,093,747 | 5,952,801 | 5,376,932 | |||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | 180,179 | 238,324 | 438,838 | 328,662 | 327,822 | |||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,329,103 | 1,291,289 | 1,244,998 | 805,216 | 782,330 | |||||||||||||||||||||||||||||||||||||||||||||
| Selected Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | 1.86 | % | 1.63 | % | (0.24) | % | 1.30 | % | 0.05 | % | ||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 16.5 | % | 14.4 | % | (2.13) | % | 11.6 | % | 0.39 | % | ||||||||||||||||||||||||||||||||||||||||
| Tangible common equity* | 20.6 | % | 18.2 | % | (2.72) | % | 15.3 | % | 0.52 | % | ||||||||||||||||||||||||||||||||||||||||
| Average shareholders' equity to average assets | 11.3 | % | 11.3 | % | 11.4 | % | 11.2 | % | 12.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Net interest margin (NIM) (tax-equivalent basis) | 3.19 | % | 3.32 | % | 3.28 | % | 3.50 | % | 3.92 | % | ||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 63.4 | % | 66.2 | % | 71.2 | % | 58.9 | % | 69.3 | % | ||||||||||||||||||||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis)* | 63.0 | % | 58.5 | % | 57.4 | % | 57.5 | % | 65.7 | % | ||||||||||||||||||||||||||||||||||||||||
| Loans HFI to deposit ratio | 68.7 | % | 74.9 | % | 79.3 | % | 81.1 | % | 85.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Total loans to deposit ratio | 78.6 | % | 84.4 | % | 88.7 | % | 88.4 | % | 91.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Yield on interest-earning assets | 3.66 | % | 3.82 | % | 3.86 | % | 4.14 | % | 4.84 | % | ||||||||||||||||||||||||||||||||||||||||
| Cost of interest-bearing liabilities | 0.65 | % | 0.73 | % | 0.83 | % | 0.94 | % | 1.27 | % | ||||||||||||||||||||||||||||||||||||||||
| Cost of total deposits | 0.41 | % | 0.46 | % | 0.56 | % | 0.65 | % | 0.94 | % | ||||||||||||||||||||||||||||||||||||||||
| Credit Quality Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses as a percentage of loans HFI(b) | 2.24 | % | 2.41 | % | 2.55 | % | 2.34 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||
Adjusted allowance for credit losses as a percentage of loans HFI*(b) | 2.29 | % | 2.48 | % | 2.66 | % | 2.51 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||
| Net charge-offs (recoveries) as a percentage of average loans HFI | 0.05 | % | 0.58 | % | (0.01) | % | — | % | 0.19 | % | ||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans HFI as a percentage of total loans HFI | 0.94 | % | 0.91 | % | 0.61 | % | 0.72 | % | 0.68 | % | ||||||||||||||||||||||||||||||||||||||||
| Nonperforming assets as a percentage of total assets | 0.77 | % | 0.75 | % | 0.64 | % | 0.71 | % | 0.74 | % | ||||||||||||||||||||||||||||||||||||||||
| Preliminary capital ratios (Consolidated) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity to assets | 11.1 | % | 11.5 | % | 11.3 | % | 11.1 | % | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets* | 9.13 | % | 9.38 | % | 9.16 | % | 8.67 | % | 9.11 | % | ||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital (to average assets) | 10.1 | % | 10.0 | % | 11.8 | % | 9.70 | % | 10.3 | % | ||||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets)(c) | 12.5 | % | 12.0 | % | 12.1 | % | 11.9 | % | 11.6 | % | ||||||||||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets)(c) | 14.8 | % | 15.0 | % | 15.3 | % | 13.2 | % | 12.5 | % | ||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets) (CET1)(c) | 12.1 | % | 11.7 | % | 11.8 | % | 11.4 | % | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||
(a) Diluted earnings per share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred.
(b) Excludes reserve for credit losses on unfunded commitments of $14.2 million, $16.4 million, $16.1 million, $6.5 million, and $4.6 million recorded in accrued expenses and other liabilities at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.
(c) We calculate our risk-weighted assets using the standardized method of the Basel III Framework.
(d) Includes a dividend declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in fourth quarter of 2020.
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.
| FB Financial Corporation | 4 | |||||||
| Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2021 | Q1 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| vs. | vs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | Q4 2020 | Q1 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Percent variance | Percent variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 89,412 | $ | 93,246 | $ | 76,504 | $ | 61,092 | $ | 63,754 | (4.11) | % | 40.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 2,819 | 2,306 | 2,286 | 2,619 | 3,056 | 22.2 | % | (7.76) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-exempt | 1,956 | 2,120 | 1,933 | 1,590 | 1,433 | (7.74) | % | 36.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 598 | 564 | 404 | 306 | 1,431 | 6.03 | % | (58.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 94,785 | 98,236 | 81,127 | 65,607 | 69,674 | (3.51) | % | 36.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 9,826 | 10,809 | 10,573 | 9,309 | 12,168 | (9.09) | % | (19.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | 2,383 | 2,183 | 1,726 | 961 | 1,257 | 9.16 | % | 89.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 12,209 | 12,992 | 12,299 | 10,270 | 13,425 | (6.03) | % | (9.06) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 82,576 | 85,244 | 68,828 | 55,337 | 56,249 | (3.13) | % | 46.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (11,632) | (3,231) | 45,834 | 24,039 | 27,964 | 260.0 | % | (141.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses on unfunded commitments | (2,222) | 311 | 9,567 | 1,882 | 1,601 | (814.5) | % | (238.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income after provisions for credit losses | 96,430 | 88,164 | 13,427 | 29,416 | 26,684 | 9.38 | % | 261.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage banking income | 55,332 | 65,729 | 84,686 | 72,168 | 32,745 | (15.8) | % | 69.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 2,339 | 2,577 | 2,162 | 1,858 | 2,563 | (9.24) | % | (8.74) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ATM and interchange fees | 4,341 | 4,262 | 3,913 | 3,606 | 3,134 | 1.85 | % | 38.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment services and trust income | 2,008 | 2,187 | 1,828 | 1,368 | 1,697 | (8.18) | % | 18.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from securities, net | 83 | 1,013 | 583 | (28) | 63 | (91.8) | % | 31.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) on sales or write-downs of other real estate owned | 496 | (123) | (1,505) | 86 | 51 | (503.3) | % | 872.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Loss) gain from other assets | (11) | 66 | 226 | (54) | (328) | (116.7) | % | (96.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income | 2,142 | 4,927 | 5,133 | 2,487 | 2,775 | (56.5) | % | (22.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 66,730 | 80,638 | 97,026 | 81,491 | 42,700 | (17.2) | % | 56.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 149,306 | 165,882 | 165,854 | 136,828 | 98,949 | (10.0) | % | 50.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries, commissions and employee benefits | 64,571 | 67,212 | 67,676 | 55,258 | 43,622 | (3.93) | % | 48.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy and equipment expense | 5,849 | 5,813 | 4,892 | 4,096 | 4,178 | 0.62 | % | 40.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Legal and professional fees | 2,434 | 2,227 | 1,917 | 1,952 | 1,558 | 9.30 | % | 56.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Data processing | 2,319 | 3,161 | 2,994 | 2,782 | 2,453 | (26.6) | % | (5.46) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merger costs | — | 9,513 | 20,730 | 1,586 | 3,050 | (100.0) | % | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of core deposits and other intangibles | 1,440 | 1,498 | 1,417 | 1,205 | 1,203 | (3.87) | % | 19.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advertising | 2,253 | 2,826 | 2,256 | 2,591 | 2,389 | (20.3) | % | (5.69) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | 15,832 | 17,605 | 16,210 | 11,109 | 10,106 | (10.1) | % | 56.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 94,698 | 109,855 | 118,092 | 80,579 | 68,559 | (13.8) | % | 38.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 68,462 | 58,947 | (7,639) | 30,328 | 825 | 16.1 | % | 8,198.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 15,588 | 13,337 | (2,040) | 7,455 | 80 | 16.9 | % | 19,385.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to FB Financial Corporation and noncontrolling interest | 52,874 | 45,610 | (5,599) | 22,873 | 745 | 15.9 | % | 6,997.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income applicable to noncontrolling interest | — | 8 | — | — | — | (100.0) | % | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) applicable to FB Financial Corporation | $ | 52,874 | $ | 45,602 | $ | (5,599) | $ | 22,873 | $ | 745 | 15.9 | % | 146.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 47,278,865 | 47,204,738 | 40,154,841 | 32,094,274 | 31,257,739 | 0.16 | % | 51.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fully diluted | 47,969,106 | 47,791,659 | 40,637,745 | 32,506,417 | 31,734,112 | 0.37 | % | 51.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings (loss) per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.12 | $ | 0.97 | $ | (0.14) | $ | 0.71 | $ | 0.02 | 15.5 | % | 5,500.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fully diluted | 1.10 | 0.95 | (0.14) | 0.70 | 0.02 | 15.8 | % | 5,400.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fully diluted - adjusted* | 1.12 | 1.14 | 1.43 | 0.74 | 0.17 | (1.75) | % | 573.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
*These measures are considered non-GAAP financial measures. See “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.
| FB Financial Corporation | 5 | |||||||
| Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annualized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2021 | Q1 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| vs. | vs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | Q4 2020 | Q1 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Percent variance | Percent variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 206,250 | $ | 110,991 | $ | 69,798 | $ | 33,710 | $ | 26,841 | 348.1 | % | 668.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds sold | 104,153 | 121,153 | 118,588 | 34,638 | 59,199 | (56.9) | % | 75.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in financial institutions | 1,584,730 | 1,085,754 | 874,005 | 649,244 | 339,054 | 186.4 | % | 367.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,895,133 | 1,317,898 | 1,062,391 | 717,592 | 425,094 | 177.6 | % | 345.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale debt securities, at fair value | 1,225,178 | 1,172,400 | 1,160,521 | 747,438 | 764,217 | 18.3 | % | 60.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities, at fair value | 4,667 | 4,591 | 4,389 | 4,329 | 3,358 | 6.71 | % | 39.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 31,757 | 31,232 | 31,232 | 17,621 | 16,445 | 6.82 | % | 93.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held for sale, at fair value | 834,779 | 683,770 | 610,695 | 435,479 | 325,304 | 89.6 | % | 156.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial loans held for sale, at fair value | 174,983 | 215,403 | 241,256 | — | — | (76.1) | % | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans held for investment | 7,047,342 | 7,082,959 | 7,213,538 | 4,827,023 | 4,568,038 | (2.04) | % | 54.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: allowance for credit losses | 157,954 | 170,389 | 183,973 | 113,129 | 89,141 | (29.6) | % | 77.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loans | 6,889,388 | 6,912,570 | 7,029,565 | 4,713,894 | 4,478,897 | (1.36) | % | 53.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and equipment, net | 143,467 | 145,115 | 136,774 | 100,638 | 100,406 | (4.61) | % | 42.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other real estate owned, net | 11,177 | 12,111 | 12,748 | 15,091 | 17,072 | (31.3) | % | (34.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease right-of-use assets | 48,453 | 49,537 | 52,410 | 30,447 | 31,628 | (8.87) | % | 53.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest receivable | 44,393 | 43,603 | 47,120 | 26,587 | 19,644 | 7.35 | % | 126.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage servicing rights, at fair value | 104,192 | 79,997 | 71,535 | 60,508 | 62,581 | 122.7 | % | 66.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 242,561 | 242,561 | 236,086 | 175,441 | 174,859 | — | % | 38.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core deposit and other intangibles, net | 20,986 | 22,426 | 23,924 | 17,671 | 18,876 | (26.0) | % | 11.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 264,712 | 274,116 | 289,792 | 192,800 | 217,306 | (13.9) | % | 21.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 11,935,826 | $ | 11,207,330 | $ | 11,010,438 | $ | 7,255,536 | $ | 6,655,687 | 26.4 | % | 79.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing | $ | 2,431,077 | $ | 2,274,103 | $ | 2,287,911 | $ | 1,775,323 | $ | 1,335,799 | 28.0 | % | 82.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | 3,097,648 | 2,491,765 | 2,005,536 | 1,236,094 | 1,139,462 | 98.6 | % | 171.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market and savings | 3,347,731 | 3,254,915 | 3,236,670 | 1,749,889 | 1,667,374 | 11.6 | % | 100.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Customer time deposits | 1,342,717 | 1,375,695 | 1,471,556 | 1,176,067 | 1,213,934 | (9.72) | % | 10.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brokered and internet time deposits | 37,713 | 61,559 | 92,074 | 15,428 | 20,363 | (157.1) | % | 85.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 10,256,886 | 9,458,037 | 9,093,747 | 5,952,801 | 5,376,932 | 34.3 | % | 90.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | 180,179 | 238,324 | 438,838 | 328,662 | 327,822 | (98.9) | % | (45.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease liabilities | 54,232 | 55,187 | 56,705 | 33,803 | 34,572 | (7.02) | % | 56.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 115,333 | 164,400 | 176,057 | 135,054 | 134,031 | (121.0) | % | (14.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 10,606,630 | 9,915,948 | 9,765,347 | 6,450,320 | 5,873,357 | 28.2 | % | 80.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock, $1 par value | 47,332 | 47,222 | 47,192 | 32,101 | 32,067 | 0.94 | % | 47.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional paid-in capital | 900,521 | 898,847 | 896,158 | 462,930 | 460,938 | 0.76 | % | 95.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained earnings | 365,192 | 317,625 | 276,361 | 286,296 | 266,385 | 60.7 | % | 37.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income, net | 16,058 | 27,595 | 25,287 | 23,889 | 22,940 | (169.6) | % | (30.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,329,103 | 1,291,289 | 1,244,998 | 805,216 | 782,330 | 11.9 | % | 69.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interest | 93 | 93 | 93 | — | — | — | % | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 1,329,196 | 1,291,382 | 1,245,091 | 805,216 | 782,330 | 11.9 | % | 69.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 11,935,826 | $ | 11,207,330 | $ | 11,010,438 | $ | 7,255,536 | $ | 6,655,687 | 26.4 | % | 79.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 6 | |||||||
| Average Balance, Average Yield Earned and Average Rate Paid | ||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
| Average balances | Interest income/ expense | Average yield/ rate | Average balances | Interest income/ expense | Average yield/ rate | |||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans HFI(a)(d) | $ | 7,000,416 | $ | 83,067 | 4.81 | % | $ | 7,139,870 | $ | 86,398 | 4.81 | % | ||||||||||||||||||||||||||
Mortgage loans held for sale(b) | 648,054 | 4,290 | 2.68 | % | 621,076 | 4,138 | 2.65 | % | ||||||||||||||||||||||||||||||
| Commercial loans held for sale | 197,820 | 2,157 | 4.42 | % | 236,676 | 2,830 | 4.76 | % | ||||||||||||||||||||||||||||||
Securities:(b) | ||||||||||||||||||||||||||||||||||||||
| Taxable | 830,686 | 2,819 | 1.38 | % | 744,161 | 2,306 | 1.23 | % | ||||||||||||||||||||||||||||||
Tax-exempt(a) | 334,303 | 2,646 | 3.21 | % | 359,509 | 2,867 | 3.17 | % | ||||||||||||||||||||||||||||||
Total securities(a) | 1,164,989 | 5,465 | 1.90 | % | 1,103,670 | 5,173 | 1.86 | % | ||||||||||||||||||||||||||||||
| Federal funds sold | 133,813 | 20 | 0.06 | % | 95,266 | 30 | 0.13 | % | ||||||||||||||||||||||||||||||
| Interest-bearing deposits with other financial institutions | 1,427,184 | 421 | 0.12 | % | 1,082,004 | 375 | 0.14 | % | ||||||||||||||||||||||||||||||
| FHLB stock | 31,461 | 157 | 2.02 | % | 31,232 | 159 | 2.03 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets(a) | 10,603,737 | 95,577 | 3.66 | % | 10,309,794 | 99,103 | 3.82 | % | ||||||||||||||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 172,756 | 73,279 | ||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (171,380) | (183,932) | ||||||||||||||||||||||||||||||||||||
| Other assets | 903,670 | 912,022 | ||||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 905,046 | 801,369 | ||||||||||||||||||||||||||||||||||||
| Total assets | $ | 11,508,783 | $ | 11,111,163 | ||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 2,746,355 | $ | 3,018 | 0.45 | % | $ | 2,178,039 | $ | 2,785 | 0.51 | % | ||||||||||||||||||||||||||
Money market(e) | 2,917,856 | 3,615 | 0.50 | % | 2,769,421 | 3,968 | 0.57 | % | ||||||||||||||||||||||||||||||
| Savings deposits | 369,600 | 53 | 0.06 | % | 338,260 | 54 | 0.06 | % | ||||||||||||||||||||||||||||||
Customer time deposits(e) | 1,365,570 | 3,036 | 0.90 | % | 1,410,108 | 3,704 | 1.04 | % | ||||||||||||||||||||||||||||||
Brokered and internet time deposits(e) | 49,764 | 104 | 0.85 | % | 87,035 | 298 | 1.36 | % | ||||||||||||||||||||||||||||||
| Time deposits | 1,415,334 | 3,140 | 0.90 | % | 1,497,143 | 4,002 | 1.06 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 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 | 31,342 | 36 | 0.47 | % | 34,986 | 43 | 0.49 | % | ||||||||||||||||||||||||||||||
Federal Home Loan Bank advances(f) | — | — | — | % | 102,174 | (432) | (1.68) | % | ||||||||||||||||||||||||||||||
| Subordinated debt | 188,996 | 2,341 | 5.02 | % | 189,649 | 2,433 | 5.10 | % | ||||||||||||||||||||||||||||||
| Other borrowings | 5,924 | 6 | 0.41 | % | 16,612 | 139 | 3.33 | % | ||||||||||||||||||||||||||||||
| Total other interest-bearing liabilities | 226,262 | 2,383 | 4.27 | % | 343,421 | 2,183 | 2.53 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 7,675,407 | 12,209 | 0.65 | % | 7,126,284 | 12,992 | 0.73 | % | ||||||||||||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
| Demand deposits | 2,348,814 | 2,513,202 | ||||||||||||||||||||||||||||||||||||
| Other liabilities | 180,976 | 210,483 | ||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 2,529,790 | 2,723,685 | ||||||||||||||||||||||||||||||||||||
| Total liabilities | 10,205,197 | 9,849,969 | ||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,303,493 | 1,261,101 | ||||||||||||||||||||||||||||||||||||
| Noncontrolling interest | 93 | 93 | ||||||||||||||||||||||||||||||||||||
| Total equity | 1,303,586 | 1,261,194 | ||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 11,508,783 | $ | 11,111,163 | ||||||||||||||||||||||||||||||||||
Net interest income(a) | $ | 83,368 | $ | 86,111 | ||||||||||||||||||||||||||||||||||
Interest rate spread(a) | 3.01 | % | 3.09 | % | ||||||||||||||||||||||||||||||||||
Net interest margin(a) | 3.19 | % | 3.32 | % | ||||||||||||||||||||||||||||||||||
| Cost of total deposits | 0.41 | % | 0.46 | % | ||||||||||||||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 138.2 | % | 144.7 | % | ||||||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 792 | $ | 867 | ||||||||||||||||||||||||||||||||||
| Loans HFI yield components: | ||||||||||||||||||||||||||||||||||||||
Contractual interest rate(a)(c) | $ | 75,828 | 4.39 | % | $ | 78,873 | 4.39 | % | ||||||||||||||||||||||||||||||
Origination and other loan fee income(c) | 6,640 | 0.38 | % | 6,537 | 0.36 | % | ||||||||||||||||||||||||||||||||
| Accretion on purchased loans | (58) | — | % | 708 | 0.04 | % | ||||||||||||||||||||||||||||||||
| Nonaccrual interest | 657 | 0.04 | % | 280 | 0.02 | % | ||||||||||||||||||||||||||||||||
| Total loans HFI yield | $ | 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 loans held for sale and investments carried at fair value.
(c) Includes $426 and $699 of loan contractual interest and $1,598 and $2,448 of loan fees related to PPP loans for the three months ended March 31, 2021 and December 31, 2020 respectively.
(d) Includes $172,136 and $279,757 of average PPP loan balances for the three months ended March 31, 2021 and December 31, 2020, respectively.
(e) Includes $932 and $932 of interest rate mark accretion on money market deposits, $810 and $1,101 of interest rate mark accretion on customer time deposits and $153 and $127 of interest rate mark accretion on brokered and internet deposits for the three months ended March 31, 2021 and December 31, 2020, respectively.
(f) Includes $0 and $545 of gain accreted from OCI with cancelled cash flow hedge for the three months ended March 31, 2021 and December 31, 2020, respectively.
| FB Financial Corporation | 7 | |||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2020 | June 30, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average balances | Interest income/ expense | Average yield/ rate | Average balances | Interest income/ expense | Average yield/ rate | Average balances | Interest income/ expense | Average yield/ rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans HFI(a)(d) | $ | 6,062,785 | $ | 71,660 | 4.70 | % | $ | 4,775,229 | $ | 58,201 | 4.90 | % | $ | 4,495,069 | $ | 61,817 | 5.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held for sale(b) | 486,899 | 3,624 | 2.96 | % | 358,108 | 2,947 | 3.31 | % | 214,150 | 1,990 | 3.74 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial loans held for sale | 99,745 | 1,336 | 5.33 | % | — | — | — | % | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities:(b) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 604,557 | 2,286 | 1.50 | % | 494,987 | 2,619 | 2.13 | % | 512,774 | 3,056 | 2.40 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt(a) | 309,352 | 2,614 | 3.36 | % | 236,161 | 2,174 | 3.70 | % | 197,961 | 1,915 | 3.89 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities(a) | 913,909 | 4,900 | 2.13 | % | 731,148 | 4,793 | 2.64 | % | 710,735 | 4,971 | 2.81 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds sold | 88,626 | 19 | 0.09 | % | 50,402 | 10 | 0.08 | % | 107,489 | 245 | 0.92 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other financial institutions | 763,251 | 309 | 0.16 | % | 509,283 | 194 | 0.15 | % | 287,499 | 1,082 | 1.51 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FHLB stock | 22,517 | 76 | 1.34 | % | 16,871 | 102 | 2.43 | % | 16,226 | 104 | 2.58 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets(a) | 8,437,732 | 81,924 | 3.86 | % | 6,441,041 | 66,247 | 4.14 | % | 5,831,168 | 70,209 | 4.84 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 69,788 | 58,304 | 64,438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (144,991) | (91,196) | (63,034) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 816,759 | 666,463 | 576,845 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 741,556 | 633,571 | 578,249 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 9,179,288 | $ | 7,074,612 | $ | 6,409,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 1,626,067 | $ | 2,194 | 0.54 | % | $ | 1,161,593 | $ | 1,717 | 0.59 | % | $ | 1,085,849 | $ | 2,179 | 0.81 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market | 2,179,128 | 3,589 | 0.66 | % | 1,422,344 | 2,179 | 0.62 | % | 1,383,229 | 3,971 | 1.15 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings deposits | 309,689 | 58 | 0.07 | % | 254,357 | 41 | 0.06 | % | 233,807 | 79 | 0.14 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer time deposits(e) | 1,334,829 | 4,817 | 1.44 | % | 1,197,960 | 5,292 | 1.78 | % | 1,205,385 | 5,843 | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokered and internet time deposits(e) | 60,327 | (85) | (0.56) | % | 16,844 | 80 | 1.91 | % | 20,355 | 96 | 1.90 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 1,395,156 | 4,732 | 1.35 | % | 1,214,804 | 5,372 | 1.78 | % | 1,225,740 | 5,939 | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,510,040 | 10,573 | 0.76 | % | 4,053,098 | 9,309 | 0.92 | % | 3,928,625 | 12,168 | 1.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 37,309 | 51 | 0.54 | % | 32,451 | 50 | 0.62 | % | 26,961 | 57 | 0.85 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank advances | 249,457 | 406 | 0.65 | % | 250,000 | 405 | 0.65 | % | 250,000 | 714 | 1.15 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated debt | 95,048 | 1,222 | 5.11 | % | 30,930 | 399 | 5.19 | % | 30,930 | 421 | 5.47 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other borrowings | 15,015 | 47 | 1.25 | % | 15,000 | 107 | 2.87 | % | 7,747 | 65 | 3.37 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other interest-bearing liabilities | 396,829 | 1,726 | 1.73 | % | 328,381 | 961 | 1.18 | % | 315,638 | 1,257 | 1.60 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,906,869 | 12,299 | 0.83 | % | 4,381,479 | 10,270 | 0.94 | % | 4,244,263 | 13,425 | 1.27 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Demand deposits | 2,050,084 | 1,728,343 | 1,284,331 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 177,329 | 169,085 | 111,894 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 2,227,413 | 1,897,428 | 1,396,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 8,134,282 | 6,278,907 | 5,640,488 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | 1,044,913 | 795,705 | 768,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interest | 93 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 1,045,006 | 795,705 | 768,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 9,179,288 | $ | 7,074,612 | $ | 6,409,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income(a) | $ | 69,625 | $ | 55,977 | $ | 56,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread(a) | 3.03 | % | 3.20 | % | 3.57 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(a) | 3.28 | % | 3.50 | % | 3.92 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of total deposits | 0.56 | % | 0.65 | % | 0.94 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 142.8 | % | 147.0 | % | 137.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 797 | $ | 640 | $ | 535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans HFI yield components: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual interest rate(a)(c) | $ | 66,441 | 4.36 | % | $ | 54,233 | 4.57 | % | $ | 57,382 | 5.14 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination and other loan fee income(c) | 4,029 | 0.26 | % | 2,823 | 0.24 | % | 2,589 | 0.23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accretion on purchased loans | 526 | 0.04 | % | 976 | 0.08 | % | 1,578 | 0.14 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual interest | 664 | 0.04 | % | 169 | 0.01 | % | 268 | 0.02 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans HFI yield | $ | 71,660 | 4.70 | % | $ | 58,201 | 4.90 | % | $ | 61,817 | 5.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.
(b) Excludes the average balance for unrealized gains (losses) prospectively for 2020 for loans held for sale and investments carried at fair value.
(c) Includes $797 and $596 of loan contractual interest and $850 and $624 of loan fees related to PPP loans for the three months ended September 30, 2020 and June 30, 2020, respectively.
(d) Includes $311,025 and $234,304 of average PPP loan balances for the three months ended September 30, 2020 and June 30, 2020, respectively.
(e) Includes $653 and $228 of interest rate mark accretion on customer time deposits for the three months ended September 30, 2020 and June 30, 2020, respectively, and $342, $10, and $12 of interest rate mark accretion on brokered and internet deposits for the three months ended September 30, 2020, June 30, 2020 and March 31, 2020, respectively.
(f) Includes $115, $148, and $147 of gain accreted from OCI with cancelled cash flow hedge for the three months ended September 30, 2020, June 30, 2020, and March 31, 2020, respectively.
| FB Financial Corporation | 8 | |||||||
| Loans and Deposits by Market | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans by market | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Metropolitan | $ | 5,550,927 | $ | 5,580,822 | $ | 5,699,082 | $ | 3,387,279 | $ | 3,217,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community | 835,444 | 867,575 | 892,229 | 875,347 | 820,180 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty lending and other | 660,971 | 634,562 | 622,227 | 564,397 | 530,260 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 7,047,342 | $ | 7,082,959 | $ | 7,213,538 | $ | 4,827,023 | $ | 4,568,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits by market | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Metropolitan | $ | 6,389,373 | $ | 5,812,719 | $ | 5,574,001 | $ | 3,651,146 | $ | 3,272,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Community | 2,192,116 | 2,001,802 | 1,928,006 | 1,915,996 | 1,731,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and other(a) | 1,675,397 | 1,643,516 | 1,591,740 | 385,659 | 373,142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 10,256,886 | $ | 9,458,037 | $ | 9,093,747 | $ | 5,952,801 | $ | 5,376,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale/other deposits.
| FB Financial Corporation | 9 | |||||||
| Segment Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking segment(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 82,597 | $ | 85,207 | $ | 68,791 | $ | 55,350 | $ | 56,233 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | (13,854) | (2,920) | 55,401 | 25,921 | 29,565 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 11,398 | 14,909 | 12,340 | 9,323 | 9,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merger expense | — | 8,788 | 20,400 | 1,586 | 3,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest expense | 55,735 | 57,458 | 52,135 | 40,454 | 40,767 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax income (loss) after allocations | $ | 52,114 | $ | 36,790 | $ | (46,805) | $ | (3,288) | $ | (7,194) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 10,787,955 | $ | 10,254,324 | $ | 10,143,956 | $ | 6,632,506 | $ | 6,122,217 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intracompany funding income included in net interest income | 5,400 | 5,160 | 3,940 | 3,335 | 2,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core efficiency ratio* | 58.6 | % | 54.0 | % | 61.7 | % | 62.0 | % | 60.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage segment(a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | (21) | $ | 37 | $ | 37 | $ | (13) | $ | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 55,332 | 65,729 | 84,686 | 72,168 | 32,745 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merger expense | — | 725 | 330 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest expense | 38,963 | 42,884 | 45,227 | 38,539 | 24,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct contribution | $ | 16,348 | $ | 22,157 | $ | 39,166 | $ | 33,616 | $ | 8,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,147,871 | $ | 953,006 | $ | 866,482 | $ | 623,030 | $ | 533,470 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intracompany funding expense included in net interest income | 5,400 | 5,160 | 3,940 | 3,335 | 2,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core efficiency ratio* | 70.4 | % | 65.2 | % | 53.4 | % | 53.4 | % | 75.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate lock commitments volume during the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer direct | $ | 949,187 | $ | 1,291,121 | $ | 1,453,238 | $ | 1,480,878 | $ | 1,314,625 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 939,863 | 896,357 | 965,434 | 758,228 | 779,155 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,889,050 | $ | 2,187,478 | $ | 2,418,672 | $ | 2,239,106 | $ | 2,093,780 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate lock commitments pipeline (period end) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer direct | $ | 643,624 | $ | 833,569 | $ | 912,349 | $ | 848,732 | $ | 653,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 415,155 | 358,052 | 451,872 | 357,200 | 430,940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,058,779 | $ | 1,191,621 | $ | 1,364,221 | $ | 1,205,932 | $ | 1,084,533 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer direct | $ | 829,883 | $ | 1,070,909 | $ | 1,034,278 | $ | 962,417 | $ | 684,209 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 742,187 | 757,308 | 735,765 | 632,996 | 357,267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,572,070 | $ | 1,828,217 | $ | 1,770,043 | $ | 1,595,413 | $ | 1,041,476 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains and fees from origination and sale of mortgage loans held for sale | $ | 57,893 | $ | 83,971 | $ | 76,506 | $ | 45,515 | $ | 30,390 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in fair value of loans held for sale, derivatives, and other | (4,229) | (16,875) | 10,084 | 34,778 | 3,205 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage servicing income | 6,931 | 6,461 | 5,536 | 5,113 | 5,018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of mortgage servicing rights, net of hedging | (5,263) | (7,828) | (7,440) | (13,238) | (5,868) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total mortgage banking income | $ | 55,332 | $ | 65,729 | $ | 84,686 | $ | 72,168 | $ | 32,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage sale margin(b) | 3.68 | % | 4.59 | % | 4.32 | % | 2.85 | % | 2.92 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures for a reconciliation and discussion of this non-GAAP measure.
(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. Previously, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking Segment. Mortgage retail footprint has been assigned to the Mortgage segment for all periods presented.
(b) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.
| FB Financial Corporation | 10 | |||||||
| Loan Portfolio and Asset Quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | % of Total | Fourth Quarter | % of Total | Third Quarter | % of Total | Second Quarter | % of Total | First Quarter | % of Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial (a) | $ | 1,292,530 | 18 | % | $ | 1,346,122 | 19% | $ | 1,417,671 | 20 | % | $ | 1,289,646 | 27 | % | $ | 1,020,484 | 23 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | 1,120,585 | 16 | % | 1,222,220 | 17% | 1,190,878 | 16 | % | 553,619 | 12 | % | 599,479 | 13 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1-to-4 family mortgage | 1,078,618 | 15 | % | 1,089,270 | 15% | 1,140,611 | 16 | % | 741,936 | 15 | % | 743,336 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential line of credit | 394,510 | 6 | % | 408,211 | 6% | 420,318 | 6 | % | 236,974 | 5 | % | 246,527 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family mortgage | 271,839 | 4 | % | 175,676 | 2% | 165,937 | 2 | % | 115,149 | 2 | % | 94,638 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Owner occupied | 936,473 | 13 | % | 924,841 | 13% | 924,987 | 13 | % | 683,245 | 14 | % | 686,543 | 15 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-owner occupied | 1,652,638 | 24 | % | 1,598,979 | 23% | 1,644,400 | 23 | % | 923,192 | 19 | % | 910,822 | 20 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other | 300,149 | 4 | % | 317,640 | 5% | 308,736 | 4 | % | 283,262 | 6 | % | 266,209 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans HFI | $ | 7,047,342 | 100 | % | $ | 7,082,959 | 100% | $ | 7,213,538 | 100 | % | $ | 4,827,023 | 100 | % | $ | 4,568,038 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses rollforward summary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses at the beginning of the period | $ | 170,389 | $ | 183,973 | $ | 113,129 | $ | 89,141 | $ | 31,139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of adopting ASC 326 (CECL) on non-purchased credit deteriorated loans | — | — | — | — | 30,888 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of adopting ASC 326 (CECL) on purchased credit deteriorated loans | — | — | — | — | 558 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | (1,170) | (10,736) | (993) | (1,165) | (2,411) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | 367 | 383 | 1,172 | 1,114 | 334 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (11,632) | (3,231) | 45,834 | 24,039 | 27,964 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Initial allowance on acquired loans with credit deterioration | — | — | 24,831 | — | 669 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses at the end of the period | $ | 157,954 | $ | 170,389 | $ | 183,973 | $ | 113,129 | $ | 89,141 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses as a percentage of total loans HFI | 2.24 | % | 2.41 | % | 2.55 | % | 2.34 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted allowance for credit losses as a percentage of loans HFI* | 2.29 | % | 2.48 | % | 2.66 | % | 2.51 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses on unfunded commitments | $ | 14,156 | $ | 16,378 | $ | 16,067 | $ | 6,500 | $ | 4,618 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and Industrial | $ | (277) | $ | (10,105) | $ | (249) | $ | (147) | $ | (1,234) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | (29) | — | — | (18) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1-to-4 family mortgage | (133) | (30) | (8) | (123) | (242) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential line of credit | (15) | (1) | — | (21) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family mortgage | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Owner occupied | — | — | (95) | — | (209) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-owner occupied | — | — | (166) | (545) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other | (716) | (600) | (475) | (311) | (726) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total charge-offs | (1,170) | (10,736) | (993) | (1,165) | (2,411) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and Industrial | 129 | 60 | 757 | 807 | 88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | — | 3 | 51 | 151 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1-to-4 family mortgage | 24 | (44) | 116 | 26 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential line of credit | 6 | 64 | 22 | 24 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family mortgage | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Owner occupied | 13 | 15 | 51 | 3 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-owner occupied | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other | 195 | 285 | 175 | 103 | 193 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total recoveries | 367 | 383 | 1,172 | 1,114 | 334 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries | $ | (803) | $ | (10,353) | $ | 179 | $ | (51) | $ | (2,077) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs (recoveries) as a percentage of average total loans | 0.05 | % | 0.58 | % | (0.01) | % | — | % | 0.19 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans classified as substandard and doubtful | $ | 156,588 | $ | 132,223 | $ | 126,986 | $ | 88,416 | $ | 74,364 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 11 | |||||||
| Loan Portfolio and Asset Quality (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming assets(b) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Past due 90 days or more and accruing interest | $ | 10,698 | $ | 13,696 | $ | 9,064 | $ | 6,412 | $ | 6,459 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual | 55,538 | 50,760 | 34,585 | 28,413 | 24,547 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total nonperforming loans held for investment | 66,236 | 64,456 | 43,649 | 34,825 | 31,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial loans held for sale | 12,779 | 6,489 | 12,812 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other real estate owned: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreclosed | 4,735 | 6,408 | 6,570 | 7,340 | 9,332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excess land and facilities | 6,442 | 5,703 | 6,178 | 7,751 | 7,740 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 1,230 | 1,170 | 1,184 | 1,306 | 1,188 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 91,422 | $ | 84,226 | $ | 70,393 | $ | 51,222 | $ | 49,266 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming loans as a percentage of loans held for investment | 0.94 | % | 0.91 | % | 0.61 | % | 0.72 | % | 0.68 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets as a percentage of total assets | 0.77 | % | 0.75 | % | 0.64 | % | 0.71 | % | 0.74 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total accruing loans over 90 days delinquent as a percentage of total assets | 0.09 | % | 0.12 | % | 0.08 | % | 0.09 | % | 0.10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans restructured as troubled debt restructurings | $ | 14,098 | $ | 15,988 | $ | 16,681 | $ | 13,277 | $ | 11,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Troubled debt restructurings as a percentage of loans held for investment | 0.20 | % | 0.23 | % | 0.23 | % | 0.28 | % | 0.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Includes PPP loan balances of $145,697, $212,645, $310,719, and $314,678 as of March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.
(b) Nonperforming assets include guaranteed repurchased loans previously sold of $4.1 million, $3.7 million, $4.4 million, $4.2 million, and $3.1 million, for the quarters ended March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.
| FB Financial Corporation | 12 | |||||||
| Preliminary Capital Ratios | ||||||||||||||
| (Unaudited) | ||||||||||||||
(In Thousands, Except %) | ||||||||||||||
| Computation of Tangible Common Equity to Tangible Assets: | March 31, 2021 | December 31, 2020 | ||||||||||||
| Total Common Shareholders' Equity | $ | 1,329,103 | $ | 1,291,289 | ||||||||||
| Less: | ||||||||||||||
| Goodwill | 242,561 | 242,561 | ||||||||||||
| Other intangibles | 20,986 | 22,426 | ||||||||||||
| Tangible Common Equity | $ | 1,065,556 | $ | 1,026,302 | ||||||||||
| Total Assets | $ | 11,935,826 | $ | 11,207,330 | ||||||||||
| Less: | ||||||||||||||
| Goodwill | 242,561 | 242,561 | ||||||||||||
| Other intangibles | 20,986 | 22,426 | ||||||||||||
| Tangible Assets | $ | 11,672,279 | $ | 10,942,343 | ||||||||||
| Preliminary Total Risk-Weighted Assets | $ | 9,131,468 | $ | 9,073,675 | ||||||||||
| Total Common Equity to Total Assets | 11.1 | % | 11.5 | % | ||||||||||
| Tangible Common Equity to Tangible Assets* | 9.13 | % | 9.38 | % | ||||||||||
| March 31, 2021 | December 31, 2020 | |||||||||||||
Preliminary Regulatory Capital(a): | ||||||||||||||
| Common Equity Tier 1 Capital | $ | 1,108,657 | $ | 1,060,364 | ||||||||||
| Tier 1 Capital | 1,138,657 | 1,090,364 | ||||||||||||
| Total Capital | 1,353,195 | 1,358,897 | ||||||||||||
| Preliminary Regulatory Capital Ratios: | ||||||||||||||
| Common Equity Tier 1 | 12.1 | % | 11.7 | % | ||||||||||
| Tier 1 Risk-Based | 12.5 | % | 12.0 | % | ||||||||||
| Total Risk-Based | 14.8 | % | 15.0 | % | ||||||||||
| Tier 1 Leverage | 10.1 | % | 10.0 | % | ||||||||||
(a) Reflects CECL transition relief of $49,000 and $52,109 add-back for the period ending March 31, 2021 and December 31, 2020, respectively, and $54,870 and $57,979 disallowed from add-back to Tier 2 capital for the period ended March 31, 2021 and December 31, 2020, respectively.
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures.
| FB Financial Corporation | 13 | |||||||
| Investment Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities (at fair value) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. government agency securities | $ | — | — | % | $ | 2,003 | —% | $ | 1,994 | — | % | $ | 3,024 | — | % | $ | 3,037 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities - residential | 838,708 | 68 | % | 773,336 | 66% | 738,106 | 63 | % | 440,778 | 59 | % | 485,671 | 63 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - commercial | 20,635 | 2 | % | 21,588 | 2% | 21,854 | 2 | % | 13,828 | 2 | % | 13,987 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Municipals, tax exempt | 348,776 | 28 | % | 356,329 | 30% | 374,880 | 32 | % | 266,052 | 35 | % | 235,677 | 31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury securities | 14,576 | 1 | % | 16,628 | 1% | 21,700 | 2 | % | 22,771 | 3 | % | 24,860 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate securities | 2,483 | — | % | 2,516 | —% | 1,987 | — | % | 985 | — | % | 985 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total available-for-sale debt securities | 1,225,178 | 99 | % | 1,172,400 | 99% | 1,160,521 | 99 | % | 747,438 | 99 | % | 764,217 | 99 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | 4,667 | 1 | % | 4,591 | 1% | 4,389 | 1 | % | 4,329 | 1 | % | 3,358 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total securities | $ | 1,229,845 | 100 | % | $ | 1,176,991 | 100% | $ | 1,164,910 | 100 | % | $ | 751,767 | 100 | % | $ | 767,575 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities to total assets | 10.3 | % | 10.5 | % | 10.6 | % | 10.4 | % | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain on available-for-sale debt securities | $ | 19,245 | $ | 34,552 | $ | 31,468 | $ | 29,683 | $ | 28,045 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 14 | |||||||
| Non-GAAP Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Periods Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted earnings | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 68,462 | $ | 58,947 | $ | (7,639) | $ | 30,328 | $ | 825 | |||||||||||||||||||||||||||||||||||||||||||
| Plus merger expenses | — | 9,513 | 20,730 | 1,586 | 3,050 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | — | 63,251 | — | 2,885 | ||||||||||||||||||||||||||||||||||||||||||||||||
Less other non-operating items(1) | (853) | (2,448) | (1,952) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax earnings | 69,315 | 70,908 | 78,294 | 31,914 | 6,760 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense, adjusted | 15,810 | 16,454 | 20,198 | 7,828 | 1,464 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted earnings | $ | 53,505 | $ | 54,454 | $ | 58,096 | $ | 24,086 | $ | 5,296 | |||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,969,106 | 47,791,659 | 40,637,745 | 32,506,417 | 31,734,112 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share | $ | 1.10 | $ | 0.95 | $ | (0.14) | $ | 0.70 | $ | 0.02 | |||||||||||||||||||||||||||||||||||||||||||
| Plus merger expenses | — | 0.20 | 0.51 | 0.05 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | — | 1.56 | — | 0.09 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Less other non-operating items | (0.02) | (0.05) | (0.05) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Less tax effect | — | 0.06 | 0.55 | 0.01 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.12 | $ | 1.14 | $ | 1.43 | $ | 0.74 | $ | 0.17 | |||||||||||||||||||||||||||||||||||||||||||
(1) 1Q21 includes a $853 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q2020 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; 3Q2020 includes $2,305 FHLB prepayment penalty, $1,505 losses on other real estate owned, and $1,858 gain from change in fair value of commercial loans held for sale acquired from Franklin. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 68,462 | $ | 58,947 | $ | (7,639) | $ | 30,328 | $ | 825 | |||||||||||||||||||||||||||||||||||||||||||
| Plus provisions for credit losses | (13,854) | (2,920) | 55,401 | 25,921 | 29,565 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | 54,608 | 56,027 | 47,762 | 56,249 | 30,390 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Plus merger expenses | — | 9,513 | 20,730 | 1,586 | 3,050 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Less other non-operating items | (853) | (2,448) | (1,952) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 70,444 | $ | 57,835 | $ | 33,440 | |||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 15 | |||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||||||||||||||||
| For the Periods Ended | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||
| Adjusted earnings | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
| Income before income taxes | $ | 68,462 | $ | 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) | (853) | (4,400) | — | — | — | |||||||||||||||||||||||||||
| Adjusted pre-tax earnings | 69,315 | 187,876 | 116,919 | 108,119 | 92,519 | |||||||||||||||||||||||||||
| Adjusted income tax expense | 15,810 | 45,944 | 27,648 | 26,034 | 34,749 | |||||||||||||||||||||||||||
| Adjusted earnings | $ | 53,505 | $ | 141,932 | $ | 89,271 | $ | 82,085 | $ | 57,770 | ||||||||||||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,969,106 | 38,099,744 | 31,402,897 | 31,314,981 | 28,207,602 | |||||||||||||||||||||||||||
| Adjusted diluted earnings per share | ||||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 1.10 | $ | 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 | (0.02) | (0.11) | — | — | — | |||||||||||||||||||||||||||
| Less tax effect and benefit of enacted tax laws | — | 0.71 | 0.06 | 0.01 | 0.48 | |||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.12 | $ | 3.73 | $ | 2.83 | $ | 2.61 | $ | 2.05 | ||||||||||||||||||||||
(1) 2021 includes a $853 loss from change in fair value on commercial loans held for sale acquired from Franklin. 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. | ||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
| Income before income taxes | $ | 68,462 | $ | 82,461 | $ | 109,539 | $ | 105,854 | $ | 73,485 | ||||||||||||||||||||||
| Plus provisions for credit losses | (13,854) | 107,967 | 7,053 | 5,398 | (950) | |||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | 54,608 | 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 | (853) | (4,400) | — | — | — | |||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 229,707 | $ | 123,972 | $ | 113,517 | $ | 91,569 | ||||||||||||||||||||||
| FB Financial Corporation | 16 | |||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Periods Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | $ | 94,698 | $ | 109,855 | $ | 118,092 | $ | 80,579 | $ | 68,559 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less merger expenses | — | 9,513 | 20,730 | 1,586 | 3,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less FHLB prepayment penalties | — | 4,533 | 2,305 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core noninterest expense | $ | 94,698 | $ | 95,809 | $ | 95,057 | $ | 78,993 | $ | 65,509 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 83,368 | $ | 86,111 | $ | 69,625 | $ | 55,977 | $ | 56,784 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 66,730 | 80,638 | 97,026 | 81,491 | 42,700 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less (loss) gain on change in fair value on commercial loans held for sale and cash life insurance benefit | (853) | 2,085 | 1,858 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less gain (loss) on sales or write-downs of other real estate owned and other assets | 485 | (57) | (1,279) | 32 | (277) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less gain (loss) from securities, net | 83 | 1,013 | 583 | (28) | 63 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core noninterest income | 67,015 | 77,597 | 95,864 | 81,487 | 42,914 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core revenue | $ | 150,383 | $ | 163,708 | $ | 165,489 | $ | 137,464 | $ | 99,698 | ||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (GAAP)(a) | 63.4 | % | 66.2 | % | 71.2 | % | 58.9 | % | 69.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Core efficiency ratio (tax-equivalent basis) | 63.0 | % | 58.5 | % | 57.4 | % | 57.5 | % | 65.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| (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. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banking segment core efficiency ratio (tax equivalent) | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core noninterest expense | $ | 94,698 | $ | 95,809 | $ | 95,057 | $ | 78,993 | $ | 65,509 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less Mortgage segment core noninterest expense | 38,963 | 42,884 | 45,227 | 38,539 | 24,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Banking segment noninterest expense | $ | 55,735 | $ | 52,925 | $ | 49,830 | $ | 40,454 | $ | 40,767 | ||||||||||||||||||||||||||||||||||||||||||||||
| Core revenue | $ | 150,383 | $ | 163,708 | $ | 165,489 | $ | 137,464 | $ | 99,698 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less Mortgage segment total revenue | 55,311 | 65,729 | 84,686 | 72,168 | 32,745 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Banking segment total revenue | $ | 95,072 | $ | 97,979 | $ | 80,803 | $ | 65,296 | $ | 66,953 | ||||||||||||||||||||||||||||||||||||||||||||||
Banking segment core efficiency ratio (tax-equivalent basis) | 58.6 | % | 54.0 | % | 61.7 | % | 62.0 | % | 60.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage segment core efficiency ratio (tax equivalent) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage segment noninterest expense | $ | 38,963 | $ | 43,609 | $ | 45,557 | $ | 38,539 | $ | 24,742 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less mortgage merger expense | — | 725 | 330 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Mortgage segment noninterest expense | $ | 38,963 | $ | 42,884 | $ | 45,227 | $ | 38,539 | $ | 24,742 | ||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage segment total revenue | $ | 55,311 | $ | 65,729 | $ | 84,686 | $ | 72,168 | $ | 32,745 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage segment core efficiency ratio (tax-equivalent basis) | 70.4 | % | 65.2 | % | 53.4 | % | 53.4 | % | 75.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 17 | |||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Periods Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted mortgage contribution | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage banking pre-tax net contribution | $ | 16,348 | $ | 22,157 | $ | 39,166 | $ | 33,616 | $ | 8,019 | ||||||||||||||||||||||||||||||||||||||||||||||
| Plus mortgage merger expense | — | 725 | 330 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total adjusted mortgage banking pre-tax net contribution | $ | 16,348 | $ | 22,882 | $ | 39,496 | $ | 33,616 | $ | 8,019 | ||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax pre-provision earnings | $ | 54,608 | $ | 56,027 | $ | 47,762 | $ | 56,249 | $ | 30,390 | ||||||||||||||||||||||||||||||||||||||||||||||
% total mortgage banking pre-tax pre-provision net contribution | 29.9 | % | 39.5 | % | 82.0 | % | 59.8 | % | 26.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 70,444 | $ | 57,835 | $ | 33,440 | ||||||||||||||||||||||||||||||||||||||||||||||
% total adjusted mortgage banking pre-tax pre-provision net contribution | 29.5 | % | 33.7 | % | 56.1 | % | 58.1 | % | 24.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible assets and equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 11,935,826 | $ | 11,207,330 | $ | 11,010,438 | $ | 7,255,536 | $ | 6,655,687 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less goodwill | 242,561 | 242,561 | 236,086 | 175,441 | 174,859 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less intangibles, net | 20,986 | 22,426 | 23,924 | 17,671 | 18,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible assets | $ | 11,672,279 | $ | 10,942,343 | $ | 10,750,428 | $ | 7,062,424 | $ | 6,461,952 | ||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity | $ | 1,329,103 | $ | 1,291,289 | $ | 1,244,998 | $ | 805,216 | $ | 782,330 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less goodwill | 242,561 | 242,561 | 236,086 | 175,441 | 174,859 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less intangibles, net | 20,986 | 22,426 | 23,924 | 17,671 | 18,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity | $ | 1,065,556 | $ | 1,026,302 | $ | 984,988 | $ | 612,104 | $ | 588,595 | ||||||||||||||||||||||||||||||||||||||||||||||
| Common shares outstanding | 47,331,680 | 47,220,743 | 47,191,677 | 32,101,108 | 32,067,356 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Book value per common share | $ | 28.08 | $ | 27.35 | $ | 26.38 | $ | 25.08 | $ | 24.40 | ||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 22.51 | $ | 21.73 | $ | 20.87 | $ | 19.07 | $ | 18.35 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total common shareholders' equity to total assets | 11.1 | % | 11.5 | % | 11.3 | % | 11.1 | % | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity to tangible assets | 9.13 | % | 9.38 | % | 9.16 | % | 8.67 | % | 9.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common shareholders' equity | $ | 1,303,493 | $ | 1,261,101 | $ | 1,044,913 | $ | 795,705 | $ | 768,929 | ||||||||||||||||||||||||||||||||||||||||||||||
| Less average goodwill | 242,561 | 242,983 | 205,473 | 175,150 | 171,532 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less average intangibles, net | 21,695 | 23,178 | 20,973 | 18,209 | 18,152 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 818,467 | $ | 602,346 | $ | 579,245 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 52,874 | $ | 45,602 | $ | (5,599) | $ | 22,873 | $ | 745 | ||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 20.6 | % | 18.2 | % | (2.72 | %) | 15.3 | % | 0.52 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 18 | |||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Periods Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 818,467 | $ | 602,346 | $ | 579,245 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net income | 53,505 | 54,454 | 58,096 | 24,086 | 5,296 | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | 20.9 | % | 21.8 | % | 28.2 | % | 16.1 | % | 3.68 | % | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average tangible common equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 994,940 | $ | 818,467 | $ | 602,346 | $ | 579,245 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | 55,461 | 67,988 | 70,444 | 57,835 | 33,440 | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average tangible common equity | 21.6 | % | 27.2 | % | 34.2 | % | 38.6 | % | 23.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Average common shareholders' equity | $ | 1,303,493 | $ | 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 | 21,695 | 22,659 | 17,236 | 12,815 | 8,047 | |||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 744,573 | $ | 545,671 | $ | 479,917 | $ | 373,175 | ||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 63,621 | $ | 83,814 | $ | 80,236 | $ | 52,398 | ||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 20.6 | % | 8.54 | % | 15.4 | % | 16.7 | % | 14.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,039,237 | $ | 774,573 | $ | 545,671 | $ | 479,917 | $ | 373,175 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net income | 53,505 | 141,932 | 89,271 | 82,085 | 57,770 | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average tangible common equity | 20.9 | % | 18.3 | % | 16.4 | % | 17.1 | % | 15.5 | % | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average assets and equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 52,874 | $ | 45,602 | $ | (5,599) | $ | 22,873 | $ | 745 | ||||||||||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 11,111,163 | 9,179,288 | 7,074,612 | 6,409,417 | |||||||||||||||||||||||||||||||||||||||||||||
| Average common equity | 1,303,493 | 1,261,101 | 1,044,913 | 795,705 | 768,929 | |||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 1.63 | % | (0.24 | %) | 1.30 | % | 0.05 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 14.4 | % | (2.13 | %) | 11.6 | % | 0.39 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 53,505 | $ | 54,454 | $ | 58,096 | $ | 24,086 | $ | 5,296 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average assets | 1.89 | % | 1.95 | % | 2.52 | % | 1.37 | % | 0.33 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average equity | 16.6 | % | 17.2 | % | 22.1 | % | 12.2 | % | 2.77 | % | ||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 19 | |||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Periods Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets and equity | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 52,874 | $ | 45,602 | $ | (5,599) | $ | 22,873 | $ | 745 | ||||||||||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 11,111,163 | 9,179,288 | 7,074,612 | 6,409,417 | |||||||||||||||||||||||||||||||||||||||||||||
| Average common equity | 1,303,493 | 1,261,101 | 1,044,913 | 797,705 | 768,929 | |||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 1.63 | % | (0.24 | %) | 1.30 | % | 0.05 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 14.4 | % | (2.13 | %) | 11.6 | % | 0.39 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 67,988 | $ | 70,444 | $ | 57,835 | $ | 33,440 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets | 1.95 | % | 2.43 | % | 3.05 | % | 3.29 | % | 2.10 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average equity | 17.3 | % | 21.4 | % | 26.8 | % | 29.2 | % | 17.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average assets and equity | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 63,621 | $ | 83,814 | $ | 80,236 | $ | 52,398 | ||||||||||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 8,438,100 | 5,777,672 | 4,844,865 | 3,811,158 | |||||||||||||||||||||||||||||||||||||||||||||
| Average common equity | 1,303,493 | 966,336 | 723,494 | 629,922 | 466,219 | |||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 0.75 | % | 1.45 | % | 1.66 | % | 1.37 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 6.58 | % | 11.6 | % | 12.7 | % | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 53,505 | $ | 141,932 | $ | 89,271 | $ | 82,085 | $ | 57,770 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average assets | 1.89 | % | 1.68 | % | 1.55 | % | 1.69 | % | 1.52 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted return on average equity | 16.6 | % | 14.7 | % | 12.3 | % | 13.0 | % | 12.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets and equity | YTD 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 52,874 | $ | 63,621 | $ | 83,814 | $ | 80,236 | $ | 52,398 | ||||||||||||||||||||||||||||||||||||||||
| Average assets | 11,508,783 | 8,438,100 | 5,777,672 | 4,844,865 | 3,811,158 | |||||||||||||||||||||||||||||||||||||||||||||
| Average common equity | 1,303,493 | 966,336 | 723,494 | 629,922 | 466,219 | |||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.86 | % | 0.75 | % | 1.45 | % | 1.66 | % | 1.37 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average equity | 16.5 | % | 6.58 | % | 11.6 | % | 12.7 | % | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision earnings | $ | 55,461 | $ | 229,707 | $ | 123,972 | $ | 113,517 | $ | 91,569 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average assets | 1.95 | % | 2.72 | % | 2.15 | % | 2.34 | % | 2.40 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted pre-tax pre-provision return on average equity | 17.3 | % | 23.8 | % | 17.1 | % | 18.0 | % | 19.6 | % | ||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted allowance for credit losses to loans held for investment | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 157,954 | $ | 170,389 | $ | 183,973 | $ | 113,129 | $ | 89,141 | ||||||||||||||||||||||||||||||||||||||||
| Less allowance for credit losses attributed to PPP loans | 23 | 34 | 49 | 51 | — | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted allowance for credit losses | $ | 157,931 | $ | 170,355 | $ | 183,924 | $ | 113,078 | $ | 89,141 | ||||||||||||||||||||||||||||||||||||||||
| Loans held for investment | 7,047,342 | 7,082,959 | 7,213,538 | 4,827,023 | 4,568,038 | |||||||||||||||||||||||||||||||||||||||||||||
| Less PPP loans | 145,697 | 212,645 | 310,719 | 314,678 | — | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted loans held for investment | $ | 6,901,645 | $ | 6,870,314 | $ | 6,902,819 | $ | 4,512,345 | $ | 4,568,038 | ||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to loans held for investment | 2.24 | % | 2.41 | % | 2.55 | % | 2.34 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted allowance for credit losses to loans held for investment | 2.29 | % | 2.48 | % | 2.66 | % | 2.51 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||
| FB Financial Corporation | 20 | |||||||
April 27, 2021 2021 First 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 the projected impact of the COVID-19 global pandemic on our business operations, statements relating to the benefits, costs, and synergies of the merger with Franklin Financial Network, Inc. (“Franklin”) (the “merger”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which we operate and/or the US economy generally, (2) the effects of the COVID-19 pandemic, including the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business and our customers' business, results of operations, asset quality and financial condition, as well as the efficacy, distribution, and public adoption of vaccines, (3) changes in government interest rate policies and its impact on our business, net interest margin, and mortgage operations, (4) our ability to effectively manage problem credits, (5) the risk that the cost savings and any revenue synergies from the merger or another acquisition may not be realized or may take longer than anticipated to be realized, (6) the ability of FB Financial to effectively integrate and manage the larger and more complex operations of the combined company following the merger, (7) FB Financial’s ability to successfully execute its various business strategies, (8) the impact of the recent change in the U.S. presidential administration and Congress and any resulting impact on economic policy, capital markets, federal regulation, and the response to the COVD-19 pandemic; (9) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR (10) the effectiveness of our cyber security controls and procedures to prevent and mitigate attempted intrusions; (11) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, (12) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in any of FB Financial's subsequent filings with the Securities and Exchange Commission (the “SEC”). Many of these factors are beyond FB Financial’s ability to control or pre-dict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward- looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this presentation, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the company. FB Financial qualifies all forward-looking statements by these cautionary statements.
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 include, without limitation, adjusted earnings, adjusted diluted earnings per 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 return on average tangible common equity, adjusted pretax pre-provision return on average tangible common equity, 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 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 and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. The following tables provide a reconciliation of these measures to the most directly comparable GAAP financial measures.
3 1Q 2021 highlights Key highlights ◼ Hired two experienced senior bankers and opened a loan production office in Birmingham, AL in existing FirstBank mortgage facilities with plans to open a full service branch later in 2021 ◼ Authorized $100 million share repurchase program in February 2021 that expires March 31, 2022; no shares repurchased to date ◼ Redeemed $40 million in subordinated notes on March 30, 2021; additional $20 million in subordinated notes become callable on July 1, 2021 ◼ $146 million of originally funded $315 million in PPP loans remaining as of 1Q 2021, $1.4 million in expected fees from the program remaining ◼ Total mortgage contribution of $16.4 million, 71% of 4Q 2020’s adjusted contribution1 and in line with guidance from prior quarter’s earnings call ◼ Improving economic conditions dictated reserve release of $13.9 million in 1Q 2021; ACL to loans HFI declined to 2.24% as of 1Q 2021 from 2.41% as of 4Q 2020 ◼ Deposit growth of $0.8 billion, up 34.3% annualized from 4Q 2020 ◼ Excluding PPP loans, loans grew 1.8% annualized in 1Q 2021 as economic conditions and customer demand for new loans continues to improve. Mid-to-high single digit percentage annual growth expected in 2021 ◼ Continued progress on Commercial Held For Sale portfolio, with exposure down to $175 million as of 1Q 2021 compared to $430 million at announcement of transaction 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. 1Q 2021 Diluted earnings per share Adjusted diluted earnings per share1 $1.10 $1.12 Net income ($mm) Adjusted net income1 ($mm) $52.9 $53.5 Return on average assets Adjusted return on average assets1 1.86% 1.89% Return on average equity Adjusted return on average equity1 16.5% 16.6% Return on average tangible common equity Adjusted return on average tangible common equity1 20.6% 20.9% Adjusted pre-tax, pre-provision earnings1 ($mm) $55.5 Adjusted pre-tax, pre-provision return on average assets1 1.95% Adjusted pre-tax, pre-provision return on average tangible common equity1 21.6% Net interest margin Impact of accretion and nonaccrual interest (bps) 3.19% 2 Efficiency ratio Core efficiency ratio1 63.4% 63.0% Tangible common equity / tangible assets1 9.1%
4 Core earnings power remains intact ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. Adjusted return on average assets¹ 1.52% 1.69% 1.55% 1.68% 1.89% 2017 2018 2019 2020 1Q21 Drivers of profitability Net interest margin Noninterest income ($mm)Loans/deposits Core efficiency ratio1 4.46% 4.66% 4.34% 3.46% 3.19% 2017 2018 2019 2020 1Q21 68.1% 65.8% 65.4% 59.2% 63.0% 2017 2018 2019 2020 1Q21 $142 $131 $135 $302 $67 2017 2018 2019 2020 1Q21 101% 95% 95% 85% 79% 86% 88% 89% 75% 69% 15% 7% 6% 10% 10% 2017 2018 2019 2020 1Q21 Loans excluding HFS Loans HFS
5 Stabilizing 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. $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 1Q20 2Q20 3Q20 4Q20 1Q21 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 3.92% 3.50% 3.28% 3.32% 3.19% Impact of accretion and nonaccrual interest (bps) 13 7 5 4 3 Impact of excess liquidity2 (bps) 0 (7) (10) (15) (24) Deposit Cost: Cost of MMDA 1.15% 0.62% 0.66% 0.57% 0.50% Cost of customer time 1.95% 1.78% 1.44% 1.04% 0.90% Cost of interest-bearing 1.25% 0.92% 0.76% 0.63% 0.53% Total deposit cost 0.94% 0.65% 0.56% 0.46% 0.41% Loans HFI Yield: Contractual interest 5.14% 4.57% 4.36% 4.39% 4.39% Origination and other loan fee income 0.23% 0.24% 0.26% 0.36% 0.38% Nonaccrual interest 0.02% 0.01% 0.04% 0.05% 0.04% Accretion on purchased loans 0.14% 0.08% 0.04% 0.02% 0.00% Total loan (HFI) yield 5.53% 4.90% 4.70% 4.81% 4.81%
6 4Q20 Mortgage continues to capitalize on rate environment Highlights ◼ Strong total mortgage pre-tax contribution of $16.3 million, or 71% of 4Q 2020’s adjusted contribution1 ◼ Refinance volumes have slowed considerably as a result of rising rates; outlook for purchase volume remains strong ◼ Margins continue to compress as capacity has returned and rates have moved higher ◼ Mortgage pipeline at the end of 1Q 2021 remains robust at $1.1 billion, as compared to $1.1 billion at the end of 1Q 2020 ◼ Mortgage banking income $55.3 million, down 15.8% from 4Q 2020 and up 69.0% from 1Q 2020 Mortgage banking income ($mm) 1Q20 4Q20 1Q21 Gain on Sale $30.4 $84.0 $57.9 Fair value changes $3.2 ($16.9) ($4.2) Servicing Revenue $5.0 $6.4 $6.9 Fair value MSR changes ($5.9) ($7.8) ($5.3) Total Income $32.7 $65.7 $55.3 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 As of the respective period-end 3 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 1Q20 1Q21 IRLC volume: IRLC pipeline2: Refinance %: Purchase %: $2,094mm $2,187mm $1,889mm $1,085mm $1,192mm $1,059mm 78% 76% 66% 22% 24% 34% Consumer Direct Retail 1.41% 3.84% 3.99% 3.42% 2.91%2.92% 2.85% 4.32% 4.59% 3.68% 1Q20 2Q20 3Q20 4Q20 1Q21 Mark to Market Value Gain on Sale Margin3
7 Realizing operating leverage through cost savings Highlights ◼Consolidated 1Q 2021 core efficiency ratio¹ of 63.0% ◼Change in segment definitions this quarter as mortgage retail footprint no longer included in the banking segment ◼Banking segment efficiency ratio elevated due to elevated seasonal expenses ◼Mortgage efficiency normalizing in the 80% range as historic margins and volumes return to pre-pandemic levels 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 60.9% 62.0% 61.7% 54.0% 58.6% 65.7% 57.5% 57.4% 58.5% 63.0% 75.6% 53.4% 53.4% 65.2% 70.4% 1Q20 2Q20 3Q20 4Q20 1Q21 Banking segment Consolidated Mortgage segment
8 Well-capitalized for future opportunities Tangible book value per share3 Simple capital structure Common Equity Tier 1 Capital 82% Trust Preferred 2% Subordinated Notes 9% Tier 2 ACL 7% Total regulatory capital: $1,3531 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $22.51 3Q16 4Q16 4Q17 4Q18 4Q19 4Q20 1Q21 1Q201 4Q201 1Q211,2 Shareholder’s equity/Assets 11.8% 11.5% 11.1% TCE/TA3 9.1% 9.4% 9.1% Common equity tier 1/Risk-weighted assets 11.0% 11.7% 12.1% Tier 1 capital/Risk-weighted assets 11.6% 12.0% 12.5% Total capital/Risk-weighted assets 12.5% 15.0% 14.8% Tier 1 capital /Average assets 10.3% 10.0% 10.1% C&D loans subject to 100% tier 1 capital plus ACL4 82% 93% 88% CRE loans subject to 300% tier 1 capital plus ACL4 219% 228% 238% 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 1Q20, 4Q20 and 1Q21, respectively, $31.8 million, $52.1 million and $49.0 million are being added back to CET 1 and Tier 1 Capital, and $37.7 million, $58.0 million and $54.9 million are being taken out of Tier 2 capital. 2 Total regulatory capital, FB Financial Corporation. 1Q21 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 24% Interest-bearing checking 30% Money market 29% Savings 4% Time 13% 54% Checking accounts Cost of core deposit base continues to decline ¹ Includes mortgage servicing-related deposits of $110.1 million, $149.1 million, $194.3 million, $147.9 million, and $170.9 million for the quarters ended March 31, 2020, June 30, 2020, September 30, 2020, December 31, 2020 and March 31, 2021 respectively. Total deposits ($mm) Cost of deposits Noninterest bearing deposits1 ($mm) Deposit composition $5,357 $5,938 $9,002 $9,395 $10,219 $20 $15 $92 $62 $38 $5,377 $5,953 $9,094 $9,457 $10,257 1Q20 2Q20 3Q20 4Q20 1Q21 Customer deposits Brokered and internet time deposits $1,336 $1,775 $2,288 $2,274 $2,431 1Q20 2Q20 3Q20 4Q20 1Q21 24.8% 29.8% 25.2% 24.0% 23.7% 0.94% 0.65% 0.56% 0.46% 0.41% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 1Q20 2Q20 3Q20 4Q20 1Q21 Noninterest bearing (%) Cost of total deposits (%)
10 Retail 20% Hotel 19% Office 19% Warehouse / Industrial 9% Land-Mobile Home Park 4% Self Storage 3% Healthcare Facility 3% Other 23% Balance Ex. PPP PPP C&I CRE-OO Total % of Total Loans Real Estate Rental and Leasing 351.9$ 163.5$ 515.3$ 24.7% 3.1$ Retail Trade 67.6 133.5 201.1 9.7% 7.8 Finance and Insurance 152.4 12.8 165.2 7.9% 1.8 Wholesale Trade 103.2 56.0 159.2 7.6% 12.4 Health Care and Social Assistance 59.0 94.5 153.5 7.4% 24.4 Manufacturing 90.2 55.0 145.2 7.0% 23.4 Other Services (except Public Administration) 21.5 108.8 130.3 6.3% 8.3 Accomodation and Food Services 24.8 87.0 111.8 5.4% 7.2 Construction 55.2 46.5 101.7 4.9% 16.4 Professional, Scientific and Technical Services 32.7 30.5 63.2 3.0% 14.0 Transportation and Warehousing 43.5 16.7 60.2 2.9% 7.2 Arts, Entertainment and Recreation 18.7 33.9 52.6 2.5% 4.3 Information 22.0 18.5 40.4 1.9% 1.2 Other 104.1 79.3 183.4 8.8% 14.2 Total 1,146.8$ 936.5$ 2,083.3$ 100.0% 145.7$ 1-4 Family to be sold 43% Commercial Land 31% 1-4 Consumer Construction 9% Retail 3% Self Storage 3% Healthcare 2% Other 9% 1-4 family 15% 1-4 family HELOC 6% Multifamily 4% C&D 16% CRE 23% C&I 31% Other 4% Balanced loan portfolio CRE2 exposure by type Portfolio mix 1 C&I includes owner-occupied CRE. PPP Loans comprise 6.5% of C&I loans, or 2.1% of gross loans (HFI). 2 Excludes owner-occupied CRE. C&I1 exposure by industry 1 2 C&D exposure by type
11 Minimal remaining deferrals Deferral programs Principal and Interest Deferrals ($21 million) ▪Of the $1.6 billion in loans given a deferral, $152 million, or 2.16% of total loans HFI, remain in some sort of deferral as of March 31, 2021 – $21 million are full principal and interest deferrals, or 0.29% of the portfolio – $131 million are on interest only payment schedules, or 1.86% of the portfolio ▪Hotel loans are $76 million of the $152 million remaining in deferral, or 50% of the remaining deferrals – There are no remaining hotels with full principal and interest deferrals – The $76 million of hotels that are on interest only payment schedules comprise 58% of remaining interest only deferrals ▪Other industries of concern make up $52 million of the $152 million remaining in deferral, or 34% of the remaining deferrals – $10 million are full principal and interest deferrals, or 51% of remaining full P&I deferrals – $42 million are on interest only payment schedules, or 32% of remaining interest only deferrals 1 Includes owner-occupied CRE. $3.9 $8.9 $2.2 $0.3 $4.9 $0.5 C&I CRE C&D Multifamily 1-4 Family HELOC 1-4 Family Consumer & Other Interest Only Payment Schedule ($131 million) $5.4 $108.1 $2.2 $6.1 $9.6 C&I CRE C&D Multifamily 1-4 Family HELOC 1-4 Family Consumer & Other 1 1
12 ◼ Industries initially considered to be the most susceptible to issues associated with the pandemic ◼ Significant level of initial deferrals but steady improvement and return to pre-COVID payment plans ◼ Credit quality remains satisfactory overall ◼ Retail, transportation and other leisure not showing signs of deterioration ◼ Healthcare overall is satisfactory, with the noted exception of 2 assisted living facilities negatively affected by COVID this quarter, resulting in the increase in substandards ◼ Hotels and restaurants continue to face challenges, but positive trends are emerging with reopenings and vaccinations Industries of concern Industries of concern deferral overview Industry exposures / gross loans (HFI) 8.9% 4.8% 4.5% 2.3% 1.7% 1.6% Retail Hotel Healthcare Restaurant Other Leisure Transportation Industries of concern credit quality 1.5% 3.8% 12.3% 0.0% 1.6% 0.0% 1.6% 1.9% 22.3 5.4% 3 7 13.9% 1.3% Retail Hotel Healthcare Restaurant Other Leisure Transportation Interest Only / Total Loans Full P&I Deferral / Total Loans 1.5% 1.4% 5.3% 1.6% 5.4% 9.5% 1.5% 2.2% 0.4% Retail Hotel Healthcare Restaurant Other Leisure Transportation Special Mention Substandard
13 Hotel portfolio – 4.8% of gross loans HFI Outstanding by location Deferral ProgressionRisk Rating Progression ◼ Portfolio representative of seasoned operators, good flags and good locations (73% Hilton / Hyatt / IHG / Marriott / Wyndham) ◼ Portfolio is largely limited and full service properties, which are better models to sustain operations at lower occupancy rates, as opposed to luxury properties ◼ Cautiously optimistic about economic and travel trends, especially for our larger, seasoned operators ◼ Concerns remain for our smaller operators with smaller capital bases; credits typically under $2.5 million (16.2% of hotel portfolio are credits under $2.5 million as of March 31, 2021) ◼ Summary: overall credit quality remains satisfactory; ongoing review of the portfolio Nashville MSA 62% Memphis MSA 9% Atlanta MSA 6% Bowling Green MSA 6% Other MSA 9% Other Community 3% Out of Market 5% Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 10 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. 63.9% 75.6% 55.2% 25.5% 22.3% 36.1% 24.4% 44.8% 74.5% 77.7% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Deferral (Interest Only or Full P&I) Not Deferred 2.2% 0.5% 0.9% 1.3% 1.4% 3.6% 6.5% 3.5% 4.0% 5.4% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Special Mention Substandard
14 Healthcare portfolio – 4.5% of loans HFI Portfolio overview Deferral participantsCredit quality Assisted Living / Nursing Care / Continuing Care 38% Offices of Physicians 27% Mental Health and Substance Abuse 12% Other Healthcare and Social Assistance 23% Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 10 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. ◼ Continue to report satisfactory results with the exception of assisted living segment ◼ Increase in substandards this quarter related to two credits in the assisted living segment ◼ Operators continue to manage through COVID related protocols ◼ Physician’s offices appear to be generally back to normal after reopening 15.2% 17.7% 11.1% 5.1% 5.3% 84.8% 82.3% 88.9% 94.9% 94.7% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Deferral (Interest Only or Full P&I) Not Deferred 0.7% 0.7% 3.0% 3.0% 2.2% 1.3% 9.5% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Special Mention Substandard
15 Restaurant – 2.3% of gross loans HFI Portfolio overview C&I 58% Non-Owner Occ CRE 38% C&D 1% Other 3% ◼ Majority are owner operators ◼ Portfolio split roughly evenly between limited service and full service outlets ◼ Limited service has seen an ability to change their model, leading to improvement ◼ Full service continues to be challenged with limits imposed on capacity ◼ Positive deferral trends continue, with no remaining on full deferral of principal and interest Note: Exposures included will differ from “C&I Exposure by Industry” table on slide 10 due to inclusion of non-owner occupied and other balances as well as additional tangential exposures. Deferral ProgressionRisk Rating Progression 63.8% 71.3% 13.5% 4.2% 3.7% 36.2% 28.7% 86.5% 95.8% 96.3% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Deferral (Interest Only or Full P&I) Not Deferred 10.4% 10.6% 5.2% 5.9% 5.3% 1.7% 1.1% 1.8% 1.7% 1.5% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Special Mention Substandard
16 0.68% 0.72% 0.61% 0.91% 0.94% 0.74% 0.71% 0.64% 0.75% 0.77% 1Q20 2Q20 3Q20 4Q20 1Q21 NPLs (HFI)/loans (HFI) NPAs/assets 1.95% 2.51% 2.66% 2.48% 2.29% 1Q20 2Q20 3Q20 4Q20 1Q21 0.19% 0.00% (0.01%) 0.58% 0.05% 1Q20 2Q20 3Q20 4Q20 1Q21 Asset quality remains solid Nonperforming ratios Classified loans / loans HFI LLR/loans HFI (excluding PPP loans)3 Net charge-offs (recoveries) / average loans ¹ Adoption of CECL resulted in approximately $5.5 million of former PCI loans being reportable as nonperforming loans in 1Q 2020. 2 Includes acquired excess land and facilities held for sale–see page 14 of the Quarterly Financial Supplement. 3 See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures. 1.63% 1.83% 1.76% 1.87% 2.22% 1Q20 2Q20 3Q20 4Q20 1Q21 1,21
17 FQE, FYE 12/31, 2Q 2021 3Q 2021 2021 2022 2023 2024 2025 GDP (bcw$) 19,068.1$ 19,215.5$ 19,147.9$ 19,943.6$ 20,575.9$ 21,112.0$ 21,588.5$ Annualized % Change 2.9% 3.1% 3.9% 4.2% 3.2% 2.6% 2.3% Total Employment (millions) 142.9 143.0 143.1 145.8 147.8 150.0 151.6 Unemployment Rate 6.7% 7.0% 6.7% 5.6% 5.3% 4.8% 4.3% CRE Price Index 273.1 263.5 256.7 262.4 282.1 313.2 331.9 NCREIF Property Index: Rate of Return 0.8% 0.0% 0.6% 2.3% 2.5% 3.2% 2.7% 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 “February 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 excludes $145.7 million in PPP loans and $212.6 million for March 31, 2021 and December 31, 2020, respectively. 32 1.95% 1.17% 1.98% 3.81% 2.46% 1.75% 2.52% 2.56%2.48% 0.86% 2.76% 4.78% 4.08% 1.76% 2.58% 3.54% 2.29% 0.88% 3.04% 3.45% 4.29% 1.82% 2.35% 3.47% Gross Loans HFI (Ex. PPP) Commercial & Industrial Non-Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC Consumer & Other 1Q 2020 4Q 2020 1Q 2021
18 Appendix
19 GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
20 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
21 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share*
22 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
23 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
24 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
25 GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis)
26 GAAP reconciliation and use of non-GAAP financial measures Adjusted mortgage contribution
27 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity
28 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
29 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average tangible common equity Adjusted return on average assets and equity
30 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision return on average tangible common equity Adjusted pre-tax, pre-provision return on average assets and equity
31 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and equity Adjusted pre-tax, pre-provision return on average assets and equity
32 GAAP reconciliation and use of non-GAAP financial measures Adjusted Allowance for Credit Losses to Loans Held for Investment