8-K
FB Financial Corp (FBK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): January 17, 2023
FB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| Tennessee | 001-37875 | 62-1216058 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification Number) |
211 Commerce Street, Suite 300
Nashville, Tennessee 37201
(Address of principal executive offices) (Zip Code)
(615) 564-1212
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value | FBK | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 17, 2023, FB Financial Corporation (“FB Financial”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2022 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this current report on Form 8-K (this “Report”).
Item 7.01. Regulation FD Disclosure.
On January 17, 2023, FB Financial will host a conference call to discuss financial results for the quarter ended December 31, 2022.
On January 17, 2023, FB Financial made available on its website (investors.firstbankonline.com) supplemental financial information for the fourth quarter ended December 31, 2022 (the “Supplemental Financial Information”) and an earnings release presentation (the “Earnings Presentation”) containing additional information about FB Financial’s financial results for the quarter ended December 31, 2022.
Copies of the Supplemental Financial Information and the Earnings Presentation are furnished as Exhibit 99.2 and Exhibit 99.3, respectively, to this Report.
The information contained in this Report, including Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
| Exhibit Number | Description of Exhibit |
|---|---|
| 99.1 | Earnings Release issuedJanuary 17, 2023 |
| 99.2 | Supplemental Financial Information for the quarter endedDecember 31, 2022 |
| 99.3 | Earnings Presentation dated January 17, 2023 |
| 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 | ||
| (Principal Financial Officer) | ||
| Date: January 17, 2023 |
Document
FB Financial Corporation Reports Fourth Quarter 2022 and Annual Results
Reports Q4 Diluted EPS of $0.81, Adjusted Diluted EPS of $0.85,
Annualized Q4 Deposit Growth of 33.7%
NASHVILLE, TENNESSEE—January 17, 2023-- FB Financial Corporation (the “Company”) (NYSE: FBK), parent company of FirstBank, reported net income of $38.1 million, or $0.81 per diluted common share, for the fourth quarter of 2022, compared to $0.68 in the previous quarter and $1.02 in the fourth quarter of last year. Adjusted net income was $40.0 million, or $0.85 per diluted common share, compared to $0.68 in the previous quarter and $0.89 in the fourth quarter of last year.
For the year ended December 31, 2022, the Company reported net income of $124.6 million, or $2.64 per diluted common share, compared to $190.3 million, or $3.97 per diluted common share, for the year ended December 31, 2021. Adjusted diluted earnings per common share were $2.91 and $3.78 for the years ended December 31, 2022 and 2021, respectively. The Company's book value per common share as of December 31, 2022, was $28.36 and the tangible book value ("TBV") per common share was $22.90.
The Company grew deposits to $10.9 billion (33.7% annualized), loans held for investment to $9.30 billion (8.42% annualized), total assets to $12.8 billion (19.1% annualized) and adjusted tangible book value per common share to $26.53 (10.6% annualized) during the fourth quarter of 2022 from the previous quarter. Net interest margin ("NIM") was 3.78% for the fourth quarter and Mortgage contributed a pre-tax loss of $4.2 million for the quarter compared to a pre-tax loss of $3.7 million in the previous quarter.
President and Chief Executive Officer, Christopher T. Holmes stated, “The Company performed well in our priority areas of liquidity, credit and capital, with strong performance metrics in each of those areas. Beyond those priorities, we were able to grow the Company with robust increases in deposits, loans and total assets. Our deposit growth of 33.7% annualized was the highlight of the quarter. As we head into 2023, we have positioned the Company for a tightening money supply, slower economic growth and intensifying competition."
| 2021 | Annualized | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except per share data) | Third Quarter | Fourth Quarter | 4Q22 / 3Q22<br>% Change | 4Q22 / 4Q21<br>% Change | ||||||||
| Balance Sheet Highlights | ||||||||||||
| Investment securities, at fair value | 1,474,176 | $ | 1,485,133 | $ | 1,681,892 | (2.93) | % | (12.4) | % | |||
| Mortgage loans held for sale, at fair value | 97,011 | 672,924 | 48.9 | % | (83.8) | % | ||||||
| Commercial loans held for sale, at fair value | 33,722 | 79,299 | (38.0) | % | (61.6) | % | ||||||
| Loans held for investment (HFI) | 9,105,016 | 7,604,662 | 8.42 | % | 22.3 | % | ||||||
| Allowance for credit losses(a) | 134,476 | 125,559 | (0.84) | % | 6.88 | % | ||||||
| Total assets | 12,258,082 | 12,597,686 | 19.1 | % | 1.99 | % | ||||||
| Interest-bearing deposits | 7,039,568 | 8,096,683 | 64.2 | % | 1.02 | % | ||||||
| Noninterest-bearing deposits | 2,966,514 | 2,740,214 | (38.8) | % | (2.32) | % | ||||||
| Mortgage escrow deposits | 140,768 | 127,617 | (183.6) | % | (40.8) | % | ||||||
| Total deposits | 10,006,082 | 10,836,897 | 33.7 | % | 0.17 | % | ||||||
| Borrowings | 722,940 | 171,778 | (168.6) | % | 142.0 | % | ||||||
| Total common shareholders' equity | 1,281,161 | 1,432,602 | 13.7 | % | (7.48) | % | ||||||
| Book value per share | 28.36 | $ | 27.30 | $ | 30.13 | 15.4 | % | (5.87) | % | |||
| Total common shareholders' equity to total assets | % | 10.5 | % | 11.4 | % | |||||||
| Tangible book value per common share* | 22.90 | $ | 21.85 | $ | 24.67 | 19.1 | % | (7.17) | % | |||
| Adjusted tangible book value per common share* | 26.53 | $ | 25.84 | $ | 24.55 | 10.6 | % | 8.07 | % | |||
| Tangible common equity to tangible assets* | % | 8.54 | % | 9.51 | % | |||||||
| * Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 17, 2023. | ||||||||||||
| (a) Excludes reserve for credit losses on unfunded commitments of 22,969, 23,577, and 14,380 recorded in accrued expenses and other liabilities as of December 31, 2022, September 30, 2022, and December 31, 2021, respectively. |
All values are in US Dollars.
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Fourth Quarter 2022 Results
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| 2022 | 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except share and per share data) | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Results of operations | |||||||||
| Net interest income | $ | 110,498 | $ | 111,384 | $ | 89,755 | |||
| NIM | 3.78 | % | 3.93 | % | 3.19 | % | |||
| Provisions for credit losses | $ | (456) | $ | 11,367 | $ | (10,769) | |||
| Net charge-off ratio | 0.02 | % | 0.00 | % | 0.12 | % | |||
| Noninterest income | $ | 17,469 | $ | 22,592 | $ | 53,219 | |||
| Mortgage banking income | $ | 9,106 | $ | 12,384 | $ | 31,350 | |||
| Total revenue | $ | 127,967 | $ | 133,976 | $ | 142,974 | |||
| Noninterest expense | $ | 80,230 | $ | 81,847 | $ | 90,902 | |||
| Core noninterest expense* | $ | 80,230 | $ | 81,847 | $ | 89,480 | |||
| Efficiency ratio | 62.7 | % | 61.1 | % | 63.6 | % | |||
| Core efficiency ratio* | 61.0 | % | 60.7 | % | 67.0 | % | |||
| Adjusted pre-tax, pre-provision earnings* | $ | 50,299 | $ | 52,516 | $ | 43,573 | |||
| Adjusted Banking segment pre-tax, pre-provision earnings* | $ | 54,479 | $ | 56,178 | $ | 42,863 | |||
| Adjusted Mortgage segment pre-tax, pre-provision (loss) earnings* | $ | (4,180) | $ | (3,662) | $ | 710 | |||
| Net income applicable to FB Financial Corporation(1) | $ | 38,143 | $ | 31,831 | $ | 48,827 | |||
| Diluted earnings per common share | $ | 0.81 | $ | 0.68 | $ | 1.02 | |||
| Effective tax rate | 20.8 | % | 21.9 | % | 22.3 | % | |||
| Adjusted net income* | $ | 40,045 | $ | 32,117 | $ | 42,551 | |||
| Adjusted diluted earnings per common share* | $ | 0.85 | $ | 0.68 | $ | 0.89 | |||
| Weighted average number of shares outstanding - fully diluted | 47,036,742 | 47,024,611 | 47,896,715 | ||||||
| Actual shares outstanding - period end | 46,737,912 | 46,926,377 | 47,549,241 | ||||||
| Returns on average: | |||||||||
| Assets ("ROAA") | 1.22 | % | 1.05 | % | 1.60 | % | |||
| Equity ("ROAE") | 11.7 | % | 9.45 | % | 13.7 | % | |||
| Tangible common equity ("ROATCE")* | 14.6 | % | 11.7 | % | 16.8 | % | |||
| * Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 17, 2023. | |||||||||
| (1) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth quarters of 2022 and 2021. |
Balance Sheet and Net Interest Margin
The Company reported loan balances (HFI) of $9.30 billion at the end of the fourth quarter, an increase of $193.2 million, or 8.42% annualized, from the end of the previous quarter. This loan growth during the quarter of $193.2 million was after the Company sold $125.7 million in participations to other banks as part of its balance sheet management strategy. The contractual yield on loans increased to 5.45% in the fourth quarter of 2022 from 4.79% in the previous quarter.
Total deposits increased by $849.8 million in the fourth quarter to $10.9 billion. The increase in total deposits was driven by a focused initiative to increase deposits from new and existing customers. The Company's total cost of deposits increased during the quarter from the prior quarter by 68 basis points to 1.20%, and the cost of interest-bearing deposits increased to 1.67%. Noninterest-bearing deposits decreased to $2.68 billion during the quarter. The Company paid down higher cost Federal Home Loan Bank advances by $365.0 million at an average interest rate of 3.89% during the quarter.
The Company’s net interest income decreased on a tax equivalent basis to $111.3 million in the fourth quarter from $112.1 million in the prior quarter. The decrease was related to higher interest expense on deposits and a $2.42 million decrease in loan fees from the prior quarter. The Company's NIM was 3.78% for the fourth quarter, compared to 3.93% for the third quarter. The NIM decreased due to lower loan fees, higher cost of funds, and a lower ratio of loans to deposits as the Company shifted to an enhanced balance sheet liquidity profile.
Holmes continued, "Maintaining optionality in the Company's liquidity profile positions us well for additional balance sheet growth and maximizing profitability in future quarters."
Noninterest Income
Noninterest income was $17.5 million for the fourth quarter of 2022, compared to $22.6 million for the prior quarter and $53.2 million for the fourth quarter of 2021. Banking noninterest income was $8.3 million for the fourth quarter of 2022, compared to $10.3 million for the prior quarter and $21.9 million for the fourth quarter of 2021. Net changes in fair value in commercial loans
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FB Financial Corporation
Fourth Quarter 2022 Results
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held for sale during the fourth quarter of 2022 resulted in a loss, related to a single national syndicated credit, included in noninterest income of $2.6 million compared to a loss of $0.4 million in the prior quarter and a gain of $9.9 million in the fourth quarter of 2021.
Mortgage banking income decreased to $9.1 million in the fourth quarter, compared to $12.4 million in the third quarter of 2022 and $31.4 million in the fourth quarter of 2021. The Mortgage segment had a pre-tax net loss of $4.2 million for the fourth quarter of 2022 compared to a pre-tax net loss of $3.7 million during the previous quarter and a pre-tax contribution of $0.7 million for the fourth quarter of last year. Interest rate lock commitment volume totaled $281.7 million in the fourth quarter compared to $408.9 million in the third quarter of 2022 and $1.48 billion in the fourth quarter of 2021.
Chief Financial Officer, Michael Mettee noted, “Mortgage originations were expected to slow during the quarter due to normal seasonality, and results continue to be negatively impacted by volatile interest rates and the challenging housing market. The Mortgage segment continues to make adjustments to achieve sustainable operational profitability."
Expense Management
Noninterest expenses were $80.2 million for the fourth quarter of 2022, compared to $81.8 million for the prior quarter and $90.9 million for the fourth quarter of 2021. Banking segment noninterest expense was $66.9 million for the fourth quarter of 2022, compared to $65.9 million for the third quarter of 2022 and $60.1 million for the fourth quarter of 2021.
Mortgage segment noninterest expense was $13.3 million for the fourth quarter of 2022, compared to $16.0 million for the previous quarter and $30.8 million for the fourth quarter of 2021.
During the fourth quarter of 2022, the Company's core efficiency ratio was 61.0%, compared to 60.7% in the previous quarter and 67.0% for the fourth quarter of the prior year. The Banking segment core efficiency ratio for the fourth quarter was 54.7% versus the previous quarter of 53.8% and 57.5% in the fourth quarter of the previous year.
Mettee noted, “The Company's overall efficiency ratio was relatively stable for the quarter and the Banking segment moved slightly higher due to a modestly higher expense load and lower loan fees impacting top line revenue.”
Credit Quality
The Company recorded a net reversal in provisions for credit losses of $0.5 million in the fourth quarter of 2022. The negative provision expense was the net of a provision expense of $0.2 million related to loans held for investment and a negative provision expense of $0.6 million related to unfunded loan commitments. Unfunded construction loan commitments reduced by $57.7 million during the fourth quarter leading to the smaller allowance for credit losses ("ACL") and negative provision expense related to these unfunded commitments. The Company maintains an ACL of $134.2 million as of December 31, 2022, representing 1.44% of loans HFI.
The Company experienced net charge offs of $0.4 million in the fourth quarter of 2022, or 0.02% of average loans HFI, compared to net charge-offs to average loans HFI of 0.00% in the prior quarter. For the year-ended December 31, 2022, the Company experienced net charge-offs of $1.8 million, or 0.02% of average loans HFI, compared to 0.08% for the year-ended December 31, 2021.
The Company's nonperforming loans as a percent of loans HFI were 0.49% at the end of the fourth quarter of 2022 compared to 0.47% at the end of the previous quarter and 0.62% at the end of the fourth quarter of the previous year. Nonperforming assets as a percentage of total assets at the end of the fourth quarter were 0.68% compared to 0.62% as of the prior quarter-end. A single relationship from the commercial loans HFS portfolio from a previous acquisition contributed 7 bps of the increase in nonperforming assets in the fourth quarter.
Holmes commented, “Our loan portfolio continues to exhibit strong credit quality metrics. We had minimal charge-offs in the quarter, which is consistent with our results for the year, and our balance sheet is positioned for potential economic headwinds in 2023.”
Capital Strength
“We remain in a position of capital strength with a Common Equity Tier 1 ratio of 11.0% and tangible common equity to tangible assets of 8.50%. The Company is well positioned to deploy capital as opportunities arise,” commented Holmes.
Summary
Holmes summarized, "The fourth quarter results demonstrated our ability to raise customer deposits in a challenging environment. The growth resulted in net interest margin contraction, but positions the Company well as we move into 2023. We remain positioned for a range of economic outcomes by concentrating on liquidity, credit and capital in the near term. A focused discipline on these priorities will serve our customers, associates, communities, and shareholders well during the coming year."
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Fourth Quarter 2022 Results
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WEBCAST AND CONFERENCE CALL INFORMATION
FB Financial Corporation will host a conference call to discuss the Company's financial results on January 17, 2023, at 8:00 a.m. (Central Time). To listen to the call, participants should dial 1-877-883-0383 (confirmation code 9684791) approximately 10 minutes prior to the call. A telephonic replay will be available approximately two hours after the call through January 24, 2023, by dialing 1-877-344-7529 and entering confirmation code 3581055.
A live online broadcast of the Company’s quarterly conference call will be available online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=hqRQfmWF. An online replay will be available on the Company’s website approximately two hours after the conclusion of the call and will remain available for 12 months.
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 with 82 full-service bank branches across Tennessee, Kentucky, Alabama and North Georgia, and mortgage offices across the Southeast. FirstBank has approximately $12.8 billion in total assets.
| MEDIA CONTACT: | FINANCIAL CONTACT: |
|---|---|
| Jeanie M. Rittenberry | Michael Mettee |
| 615-313-8328 | 615-564-1212 |
| jrittenberry@firstbankonline.com | mmettee@firstbankonline.com |
| www.firstbankonline.com | investorrelations@firstbankonline.com |
SUPPLEMENTAL FINANCIAL INFORMATION AND EARNINGS PRESENTATION
Investors are encouraged to review this Earnings Release in conjunction with the Supplemental Financial Information and Earnings Presentation posted on the Company’s website, which can be found at https://investors.firstbankonline.com. This Earnings Release, the Supplemental Financial Information and the Earnings Presentation are also included with a Current Report on Form 8-K that the Company furnished to the U.S. Securities and Exchange Commission (“SEC”) on January 17, 2023.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part of the Supplemental Financial Information, which is available in connection with this Earnings Release. A detailed discussion of historical business segment results is included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2021.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Earnings Release that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s future plans, results, strategies, and expectations, including expectations around changing economic markets. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “project,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) changes in government interest rate policies and its impact on the Company’s business, net interest margin, and mortgage operations, (3) the Company’s ability to effectively manage problem credits, (4) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (5) difficulties and delays in integrating acquired businesses or fully realizing costs savings, revenue synergies and other benefits from future and prior acquisitions, (6) the Company’s ability to successfully execute its various business strategies, (7) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (8) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (9) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted intrusions, (10) the Company's dependence on information technology systems of third party service providers and the risk of
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Fourth Quarter 2022 Results
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systems failures, interruptions, or breaches of security, and (11) the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; (12) natural disasters or acts of war or terrorism, (13) international or political instability, including the impacts related to or resulting from Russia’s military action in Ukraine and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, and (14) general competitive, economic, political, and market conditions. Further information regarding the Company and factors which could affect the forward-looking statements contained herein can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in any of the Company’s subsequent filings with the SEC. Many of these factors are beyond the Company’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this Earnings Release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company.
The Company qualifies all forward-looking statements by these cautionary statements.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This Earnings Release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), adjusted Banking segment pre-tax, pre-provision earnings, Banking segment core noninterest income, Mortgage segment core noninterest income, Banking segment core noninterest expense, Mortgage segment core noninterest expense, Banking segment core revenue, Mortgage segment core revenue, Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), 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 refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, adjusted tangible common equity, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, adjusted return on average tangible common equity, and adjusted pre-tax pre-provision return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. Adjusted tangible common equity and adjusted tangible book value also exclude the impact of net accumulated other comprehensive (loss) income.
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 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 with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the corresponding non-GAAP reconciliation tables below in this Earnings Release for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.
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Fourth Quarter 2022 Results
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| Financial Summary and Key Metrics | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| 2022 | 2021 | ||||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | |||||||
| Statement of Income Data | |||||||||
| Total interest income | $ | 147,598 | $ | 128,483 | $ | 97,219 | |||
| Total interest expense | 37,100 | 17,099 | 7,464 | ||||||
| Net interest income | 110,498 | 111,384 | 89,755 | ||||||
| Total noninterest income | 17,469 | 22,592 | 53,219 | ||||||
| Total noninterest expense | 80,230 | 81,847 | 90,902 | ||||||
| Earnings before income taxes and provisions for credit losses | 47,737 | 52,129 | 52,072 | ||||||
| Provisions for credit losses | (456) | 11,367 | (10,769) | ||||||
| Income tax expense | 10,042 | 8,931 | 14,006 | ||||||
| Net income applicable to noncontrolling interest | 8 | — | 8 | ||||||
| Net income applicable to FB Financial Corporation(a) | $ | 38,143 | $ | 31,831 | $ | 48,827 | |||
| Net interest income (tax-equivalent basis) | $ | 111,279 | $ | 112,145 | $ | 90,537 | |||
| Adjusted net income* | $ | 40,045 | $ | 32,117 | $ | 42,551 | |||
| Adjusted pre-tax, pre-provision earnings* | $ | 50,299 | $ | 52,516 | $ | 43,573 | |||
| Per Common Share | |||||||||
| Diluted net income | $ | 0.81 | $ | 0.68 | $ | 1.02 | |||
| Adjusted diluted net income* | 0.85 | 0.68 | 0.89 | ||||||
| Book value | 28.36 | 27.30 | 30.13 | ||||||
| Tangible book value* | 22.90 | 21.85 | 24.67 | ||||||
| Adjusted tangible book value* | 26.53 | 25.84 | 24.55 | ||||||
| Weighted average number of shares outstanding - fully diluted | 47,036,742 | 47,024,611 | 47,896,715 | ||||||
| Period-end number of shares | 46,737,912 | 46,926,377 | 47,549,241 | ||||||
| Selected Balance Sheet Data | |||||||||
| Cash and cash equivalents | $ | 1,027,052 | $ | 618,290 | $ | 1,797,740 | |||
| Loans held for investment (HFI) | 9,298,212 | 9,105,016 | 7,604,662 | ||||||
| Allowance for credit losses(b) | (134,192) | (134,476) | (125,559) | ||||||
| Mortgage loans held for sale, at fair value(c) | 108,961 | 97,011 | 672,924 | ||||||
| Commercial loans held for sale, at fair value | 30,490 | 33,722 | 79,299 | ||||||
| Investment securities, at fair value | 1,474,176 | 1,485,133 | 1,681,892 | ||||||
| Other real estate owned, net | 5,794 | 5,919 | 9,777 | ||||||
| Total assets | 12,847,756 | 12,258,082 | 12,597,686 | ||||||
| Interest-bearing deposits | 8,179,203 | 7,039,568 | 8,096,683 | ||||||
| Noninterest-bearing deposits | 2,676,631 | 2,966,514 | 2,740,214 | ||||||
| Total deposits | 10,855,834 | 10,006,082 | 10,836,897 | ||||||
| Borrowings | 415,677 | 722,940 | 171,778 | ||||||
| Total common shareholders' equity | 1,325,425 | 1,281,161 | 1,432,602 | ||||||
| Selected Ratios | |||||||||
| Return on average: | |||||||||
| Assets | 1.22 | % | 1.05 | % | 1.60 | % | |||
| Shareholders' equity | 11.7 | % | 9.45 | % | 13.7 | % | |||
| Tangible common equity* | 14.6 | % | 11.7 | % | 16.8 | % | |||
| Average shareholders' equity to average assets | 10.4 | % | 11.1 | % | 11.7 | % | |||
| Net interest margin (tax-equivalent basis) | 3.78 | % | 3.93 | % | 3.19 | % | |||
| Efficiency ratio (GAAP) | 62.7 | % | 61.1 | % | 63.6 | % | |||
| Core efficiency ratio (tax-equivalent basis)* | 61.0 | % | 60.7 | % | 67.0 | % | |||
| Loans HFI to deposit ratio | 85.7 | % | 91.0 | % | 70.2 | % | |||
| Total loans to deposit ratio | 86.9 | % | 92.3 | % | 77.1 | % | |||
| Noninterest-bearing deposits to total deposits | 24.7 | % | 29.6 | % | 25.3 | % | |||
| Yield on interest-earning assets | 5.04 | % | 4.53 | % | 3.45 | % | |||
| Cost of interest-bearing liabilities | 1.84 | % | 0.90 | % | 0.38 | % | |||
| Cost of total deposits | 1.20 | % | 0.52 | % | 0.22 | % | |||
| Credit Quality Ratios | |||||||||
| Allowance for credit losses as a percentage of loans HFI(b) | 1.44 | % | 1.48 | % | 1.65 | % | |||
| Net charge-offs as a percentage of average loans HFI | 0.02 | % | 0.00 | % | 0.12 | % | |||
| Nonperforming loans HFI as a percentage of total loans HFI | 0.49 | % | 0.47 | % | 0.62 | % | |||
| Nonperforming assets as a percentage of total assets(c) | 0.68 | % | 0.62 | % | 0.50 | % | |||
| Preliminary capital ratios (Consolidated) | |||||||||
| Total common shareholders' equity to assets | 10.3 | % | 10.5 | % | 11.4 | % | |||
| Tangible common equity to tangible assets* | 8.50 | % | 8.54 | % | 9.51 | % | |||
| Tier 1 capital (to average assets) | 10.5 | % | 10.7 | % | 10.5 | % | |||
| Tier 1 capital (to risk-weighted assets)(d) | 11.3 | % | 11.2 | % | 12.6 | % | |||
| Total capital (to risk-weighted assets)(d) | 13.1 | % | 13.0 | % | 14.5 | % | |||
| Common equity Tier 1 (to risk-weighted assets) (CET1)(d) | 11.0 | % | 10.9 | % | 12.3 | % |
(a) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth quarter of 2022 and the fourth quarter of 2021.
(b) Excludes reserve for credit losses on unfunded commitments of $22,969, $23,577, and $14,380 recorded in accrued expenses and other liabilities at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(c) Includes optional right to repurchase seriously delinquent GNMA loans previously sold of $26,211 and $26,485 as of December 31, 2022 and September 30, 2022, respectively.
(d) Risk-weighted assets are calculated using the standardized method of the Basel III Framework.
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in this Earnings Release dated January 17, 2023.
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FB Financial Corporation
Fourth Quarter 2022 Results
Page 7
| Non-GAAP Reconciliation | |||||
|---|---|---|---|---|---|
| For the Periods Ended | |||||
| (Unaudited) | |||||
| (In Thousands, Except Share Data and %) | |||||
| 2021 | |||||
| Adjusted net income | Third Quarter | Fourth Quarter | |||
| Income before income taxes | 48,193 | $ | 40,762 | $ | 62,841 |
| Less other non-operating items(1) | (387) | 8,499 | |||
| Adjusted pre-tax net income | 41,149 | 54,342 | |||
| Adjusted income tax expense | 9,032 | 11,791 | |||
| Adjusted net income | 40,045 | $ | 32,117 | $ | 42,551 |
| Weighted average common shares outstanding - fully diluted | 47,024,611 | 47,896,715 | |||
| Adjusted diluted earnings per common share | |||||
| Diluted earnings per common share | 0.81 | $ | 0.68 | $ | 1.02 |
| Less other non-operating items | — | 0.18 | |||
| Less tax effect | — | (0.05) | |||
| Adjusted diluted earnings per common share | 0.85 | $ | 0.68 | $ | 0.89 |
| (1) 4Q22 includes a 2,562 loss from change in fair value of commercial loans held for sale acquired from Franklin; 3Q22 includes a 387 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q21 includes a 9,921 gain from change in fair value of commercial loans held for sale acquired from Franklin and 1,422 related to certain nonrecurring charitable contributions. | |||||
| Adjusted net income | 2021 | 2020 | |||
| Income before income taxes | 159,574 | $ | 243,051 | $ | 82,461 |
| Plus mortgage restructuring and offering expenses | 605 | 34,879 | |||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | 66,136 | |||
| Less other non-operating items(1) | 11,032 | (4,400) | |||
| Adjusted pre-tax net income | 232,624 | 187,876 | |||
| Adjusted income tax expense(2) | 51,553 | 45,944 | |||
| Adjusted net income | 137,578 | $ | 181,071 | $ | 141,932 |
| Weighted average common shares outstanding - fully diluted | 47,955,880 | 38,099,744 | |||
| Adjusted diluted earnings per share | |||||
| Diluted earnings per common share | 2.64 | $ | 3.97 | $ | 1.67 |
| Plus mortgage restructuring and offering expenses | 0.01 | 0.92 | |||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | 1.74 | |||
| Less other non-operating items | 0.22 | (0.11) | |||
| Less tax effect | (0.02) | 0.71 | |||
| Adjusted diluted earnings per common share | 2.91 | $ | 3.78 | $ | 3.73 |
| (1) 2022 includes a 5,133 loss from change in fair value of commercial loans held for sale acquired from Franklin; 2021 includes a 11,172 gain from change in fair value on commercial loans held for sale acquired from Franklin, a loss on swap cancellation of 1,510, a 2,005 gain on other real estate owned, a 787 gain from lease terminations and 1,422 related to certain nonrecurring charitable contributions. | |||||
| (2) 2021 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin. | |||||
| 2021 | |||||
| Adjusted pre-tax pre-provision earnings | Third Quarter | Fourth Quarter | |||
| Income before income taxes | 48,193 | $ | 40,762 | $ | 62,841 |
| Plus provisions for credit losses | 11,367 | (10,769) | |||
| Pre-tax pre-provision earnings | 52,129 | 52,072 | |||
| Less other non-operating items | (387) | 8,499 | |||
| Adjusted pre-tax pre-provision earnings | 50,299 | $ | 52,516 | $ | 43,573 |
All values are in US Dollars.
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FB Financial Corporation
Fourth Quarter 2022 Results
Page 8
| Non-GAAP Reconciliation | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the Periods Ended | |||||||||
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| 2022 | 2021 | ||||||||
| Core efficiency ratio (tax-equivalent basis) | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Total noninterest expense | $ | 80,230 | $ | 81,847 | $ | 90,902 | |||
| Less certain charitable contributions | — | — | 1,422 | ||||||
| Core noninterest expense | $ | 80,230 | $ | 81,847 | $ | 89,480 | |||
| Net interest income (tax-equivalent basis) | $ | 111,279 | $ | 112,145 | $ | 90,537 | |||
| Total noninterest income | 17,469 | 22,592 | 53,219 | ||||||
| Less (loss) gain on change in fair value on commercial loans held for sale | (2,562) | (387) | 9,921 | ||||||
| Less (loss) gain on sales or write-downs of other real estate owned and other <br>assets | (252) | 429 | 187 | ||||||
| Less gain (loss) from securities, net | 25 | (140) | 46 | ||||||
| Core noninterest income | 20,258 | 22,690 | 43,065 | ||||||
| Core revenue | $ | 131,537 | $ | 134,835 | $ | 133,602 | |||
| Efficiency ratio (GAAP)(a) | 62.7 | % | 61.1 | % | 63.6 | % | |||
| Core efficiency ratio (tax-equivalent basis) | 61.0 | % | 60.7 | % | 67.0 | % | |||
| (a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue | |||||||||
| 2022 | 2021 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Banking segment core efficiency ratio (tax equivalent) | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Core noninterest expense | $ | 80,230 | $ | 81,847 | $ | 89,480 | |||
| Less Mortgage segment noninterest expense | 13,304 | 15,961 | 30,798 | ||||||
| Banking segment core noninterest expense | $ | 66,926 | $ | 65,886 | $ | 58,682 | |||
| Banking segment net interest income (tax equivalent basis) | $ | 111,279 | $ | 112,145 | $ | 90,398 | |||
| Core noninterest income | 20,258 | 22,690 | 43,065 | ||||||
| Less Mortgage segment core noninterest income | 9,148 | 12,384 | 31,350 | ||||||
| Banking segment core noninterest income | 11,110 | 10,306 | 11,715 | ||||||
| Core revenue | 131,537 | 134,835 | 133,602 | ||||||
| Less Mortgage segment core total revenue | 9,148 | 12,384 | 31,489 | ||||||
| Banking segment core total revenue | $ | 122,389 | $ | 122,451 | $ | 102,113 | |||
| Banking segment core efficiency ratio (tax-equivalent basis) | 54.7 | % | 53.8 | % | 57.5 | % | |||
| Mortgage segment core efficiency ratio (tax equivalent) | |||||||||
| Mortgage segment noninterest expense | $ | 13,304 | $ | 15,961 | $ | 30,798 | |||
| Mortgage segment net interest income | — | — | 139 | ||||||
| Mortgage segment noninterest income | 9,124 | 12,299 | 31,369 | ||||||
| Less (loss) gain on sales or write-downs of other real estate owned | (24) | (85) | 19 | ||||||
| Mortgage segment core noninterest income | 9,148 | 12,384 | 31,350 | ||||||
| Mortgage segment core total revenue | $ | 9,148 | $ | 12,384 | $ | 31,489 | |||
| Mortgage segment core efficiency ratio (tax-equivalent basis) | 145.4 | % | 128.9 | % | 97.8 | % |
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FB Financial Corporation
Fourth Quarter 2022 Results
Page 9
| Non-GAAP Reconciliation | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the Periods Ended | |||||||||
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| 2022 | 2021 | ||||||||
| Adjusted Banking segment pre-tax pre-provision earnings | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Banking segment pre-tax net contribution | $ | 52,373 | $ | 44,424 | $ | 62,131 | |||
| Plus provisions for credit losses | (456) | 11,367 | (10,769) | ||||||
| Banking segment pre-tax pre-provision earnings | 51,917 | 55,791 | 51,362 | ||||||
| Less other non-operating items | (2,562) | (387) | 8,499 | ||||||
| Adjusted Banking segment pre-tax pre-provision earnings | $ | 54,479 | $ | 56,178 | $ | 42,863 | |||
| 2022 | 2021 | ||||||||
| Tangible assets and equity | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Tangible assets | |||||||||
| Total assets | $ | 12,847,756 | $ | 12,258,082 | $ | 12,597,686 | |||
| Less goodwill | 242,561 | 242,561 | 242,561 | ||||||
| Less intangibles, net | 12,368 | 13,407 | 16,953 | ||||||
| Tangible assets | $ | 12,592,827 | $ | 12,002,114 | $ | 12,338,172 | |||
| Tangible common equity | |||||||||
| Total common shareholders' equity | $ | 1,325,425 | $ | 1,281,161 | $ | 1,432,602 | |||
| Less goodwill | 242,561 | 242,561 | 242,561 | ||||||
| Less intangibles, net | 12,368 | 13,407 | 16,953 | ||||||
| Tangible common equity | $ | 1,070,496 | $ | 1,025,193 | $ | 1,173,088 | |||
| Less accumulated other comprehensive (loss) income, net | (169,433) | (187,440) | 5,858 | ||||||
| Adjusted tangible common equity | 1,239,929 | 1,212,633 | 1,167,230 | ||||||
| Common shares outstanding | 46,737,912 | 46,926,377 | 47,549,241 | ||||||
| Book value per common share | $ | 28.36 | $ | 27.30 | $ | 30.13 | |||
| Tangible book value per common share | $ | 22.90 | $ | 21.85 | $ | 24.67 | |||
| Adjusted tangible book value per common share | $ | 26.53 | $ | 25.84 | $ | 24.55 | |||
| Total common shareholders' equity to total assets | 10.3 | % | 10.5 | % | 11.4 | % | |||
| Tangible common equity to tangible assets | 8.50 | % | 8.54 | % | 9.51 | % | |||
| Non-GAAP Reconciliation | |||||||||
| For the Periods Ended | |||||||||
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| 2022 | 2021 | ||||||||
| Return on average tangible common equity | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
| Average common shareholders' equity | $ | 1,294,758 | $ | 1,336,143 | $ | 1,411,987 | |||
| Less average goodwill | 242,561 | 242,561 | 242,561 | ||||||
| Less average intangibles, net | 12,865 | 13,953 | 17,580 | ||||||
| Average tangible common equity | $ | 1,039,332 | $ | 1,079,629 | $ | 1,151,846 | |||
| Net income | $ | 38,143 | $ | 31,831 | $ | 48,827 | |||
| Return on average common equity | 11.7 | % | 9.45 | % | 13.7 | % | |||
| Return on average tangible common equity | 14.6 | % | 11.7 | % | 16.8 | % | |||
| Adjusted net income | $ | 40,045 | $ | 32,117 | $ | 42,551 | |||
| Adjusted return on average tangible common equity | 15.3 | % | 11.8 | % | 14.7 | % | |||
| Adjusted pre-tax pre-provision earnings | $ | 50,299 | $ | 52,516 | $ | 43,573 | |||
| Adjusted pre-tax pre-provision return on average tangible common equity | 19.2 | % | 19.3 | % | 15.0 | % | |||
| 2022 | 2021 |
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FB Financial Corporation
Fourth Quarter 2022 Results
Page 10
| Adjusted return on average assets and equity | Fourth Quarter | Third Quarter | Fourth Quarter | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net income | $ | 38,143 | $ | 31,831 | $ | 48,827 | |||
| Average assets | 12,446,027 | 12,038,115 | 12,085,817 | ||||||
| Average common equity | 1,294,758 | 1,336,143 | 1,411,987 | ||||||
| Return on average assets | 1.22 | % | 1.05 | % | 1.60 | % | |||
| Return on average common equity | 11.7 | % | 9.45 | % | 13.7 | % | |||
| Adjusted net income | $ | 40,045 | $ | 32,117 | $ | 42,551 | |||
| Adjusted return on average assets | 1.28 | % | 1.06 | % | 1.40 | % | |||
| Adjusted return on average common equity | 12.3 | % | 9.54 | % | 12.0 | % | |||
| Adjusted pre-tax pre-provision earnings | $ | 50,299 | $ | 52,516 | $ | 43,573 | |||
| Adjusted pre-tax pre-provision return on average assets | 1.60 | % | 1.73 | % | 1.43 | % | |||
| Adjusted pre-tax pre-provision return on average common equity | 15.4 | % | 15.6 | % | 12.2 | % |
-END-
Document
Fourth Quarter 2022
Financial Supplement
TABLE OF CONTENTS
| Page | |
|---|---|
| Financial Summary and Key Metrics | 4 |
| Consolidated Statements of Income | 5 |
| Consolidated Balance Sheets | 7 |
| Average Balance, Average Yield Earned and Average Rate Paid | 8 |
| Loans and Deposits by Market | 11 |
| Segment Data | 12 |
| Loan Portfolio | 13 |
| Asset Quality | 14 |
| Preliminary Capital Ratios | 15 |
| Investment Portfolio | 16 |
| Non-GAAP Reconciliation | 17 |
Use of non-GAAP Financial Measures
This Supplemental Financial Information contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), adjusted Banking segment pre-tax, pre-provision earnings, Banking segment core noninterest income, Mortgage segment core noninterest income, Banking segment core noninterest expense, Mortgage segment core noninterest expense, Banking segment core revenue, Mortgage segment core revenue, Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), 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 refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, adjusted tangible common equity, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, adjusted return on average tangible common equity, and adjusted pre-tax pre-provision return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. Adjusted tangible common equity and adjusted tangible book value also exclude the impact of net accumulated other comprehensive (loss) income.
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 the other items excluded 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 with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the corresponding non-GAAP reconciliation tables in this Supplemental Financial Information dated January 17, 2023, for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.
| Financial Summary and Key Metrics | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | |||||||||||||||
| (In Thousands, Except Share Data and %) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||
| Statement of Income Data | |||||||||||||||
| Total interest income | $ | 147,598 | $ | 128,483 | $ | 110,214 | $ | 95,127 | $ | 97,219 | |||||
| Total interest expense | 37,100 | 17,099 | 8,043 | 6,945 | 7,464 | ||||||||||
| Net interest income | 110,498 | 111,384 | 102,171 | 88,182 | 89,755 | ||||||||||
| Total noninterest income | 17,469 | 22,592 | 33,214 | 41,392 | 53,219 | ||||||||||
| Total noninterest expense | 80,230 | 81,847 | 96,997 | 89,272 | 90,902 | ||||||||||
| Earnings before income taxes and provisions for credit losses | 47,737 | 52,129 | 38,388 | 40,302 | 52,072 | ||||||||||
| Provisions for credit losses | (456) | 11,367 | 12,318 | (4,247) | (10,769) | ||||||||||
| Income tax expense | 10,042 | 8,931 | 6,717 | 9,313 | 14,006 | ||||||||||
| Net income applicable to noncontrolling interest | 8 | — | 8 | — | 8 | ||||||||||
| Net income applicable to FB Financial Corporation(a) | $ | 38,143 | $ | 31,831 | $ | 19,345 | $ | 35,236 | $ | 48,827 | |||||
| Net interest income (tax-equivalent basis) | $ | 111,279 | $ | 112,145 | $ | 102,926 | $ | 88,932 | $ | 90,537 | |||||
| Adjusted net income* | $ | 40,045 | $ | 32,117 | $ | 30,051 | $ | 35,365 | $ | 42,551 | |||||
| Adjusted pre-tax, pre-provision earnings* | $ | 50,299 | $ | 52,516 | $ | 52,856 | $ | 40,476 | $ | 43,573 | |||||
| Per Common Share | |||||||||||||||
| Diluted net income | $ | 0.81 | $ | 0.68 | $ | 0.41 | $ | 0.74 | $ | 1.02 | |||||
| Adjusted diluted net income* | 0.85 | 0.68 | 0.64 | 0.74 | 0.89 | ||||||||||
| Book value | 28.36 | 27.30 | 28.15 | 29.06 | 30.13 | ||||||||||
| Tangible book value* | 22.90 | 21.85 | 22.67 | 23.62 | 24.67 | ||||||||||
| Adjusted tangible book value* | 26.53 | 25.84 | 25.24 | 25.12 | 24.55 | ||||||||||
| Weighted average number of shares outstanding - fully diluted | 47,036,742 | 47,024,611 | 47,211,650 | 47,723,902 | 47,896,715 | ||||||||||
| Period-end number of shares | 46,737,912 | 46,926,377 | 46,881,896 | 47,487,874 | 47,549,241 | ||||||||||
| Selected Balance Sheet Data | |||||||||||||||
| Cash and cash equivalents | $ | 1,027,052 | $ | 618,290 | $ | 872,861 | $ | 1,743,311 | $ | 1,797,740 | |||||
| Loans held for investment (HFI) | 9,298,212 | 9,105,016 | 8,624,337 | 8,004,976 | 7,604,662 | ||||||||||
| Allowance for credit losses(b) | (134,192) | (134,476) | (126,272) | (120,049) | (125,559) | ||||||||||
| Mortgage loans held for sale(c) | 108,961 | 97,011 | 222,400 | 318,549 | 672,924 | ||||||||||
| Commercial loans held for sale | 30,490 | 33,722 | 37,815 | 78,179 | 79,299 | ||||||||||
| Investment securities, at fair value | 1,474,176 | 1,485,133 | 1,621,344 | 1,686,738 | 1,681,892 | ||||||||||
| Other real estate owned, net | 5,794 | 5,919 | 9,398 | 9,721 | 9,777 | ||||||||||
| Total assets | 12,847,756 | 12,258,082 | 12,193,862 | 12,674,191 | 12,597,686 | ||||||||||
| Interest-bearing deposits | 8,179,203 | 7,039,568 | 7,647,782 | 8,208,580 | 8,096,683 | ||||||||||
| Noninterest-bearing deposits | 2,676,631 | 2,966,514 | 2,895,520 | 2,787,698 | 2,740,214 | ||||||||||
| Total deposits | 10,855,834 | 10,006,082 | 10,543,302 | 10,996,278 | 10,836,897 | ||||||||||
| Borrowings | 415,677 | 722,940 | 160,400 | 155,733 | 171,778 | ||||||||||
| Total common shareholders' equity | 1,325,425 | 1,281,161 | 1,319,852 | 1,379,776 | 1,432,602 | ||||||||||
| Selected Ratios | |||||||||||||||
| Return on average: | |||||||||||||||
| Assets | 1.22 | % | 1.05 | % | 0.62 | % | 1.13 | % | 1.60 | % | |||||
| Shareholders' equity | 11.7 | % | 9.45 | % | 5.74 | % | 10.1 | % | 13.7 | % | |||||
| Tangible common equity* | 14.6 | % | 11.7 | % | 7.09 | % | 12.4 | % | 16.8 | % | |||||
| Average shareholders' equity to average assets | 10.4 | % | 11.1 | % | 10.9 | % | 11.2 | % | 11.7 | % | |||||
| Net interest margin (NIM) (tax-equivalent basis) | 3.78 | % | 3.93 | % | 3.52 | % | 3.04 | % | 3.19 | % | |||||
| Efficiency ratio (GAAP) | 62.7 | % | 61.1 | % | 71.6 | % | 68.9 | % | 63.6 | % | |||||
| Core efficiency ratio (tax-equivalent basis)* | 61.0 | % | 60.7 | % | 61.1 | % | 68.1 | % | 67.0 | % | |||||
| Loans HFI to deposit ratio | 85.7 | % | 91.0 | % | 81.8 | % | 72.8 | % | 70.2 | % | |||||
| Total loans to deposit ratio | 86.9 | % | 92.3 | % | 84.3 | % | 76.4 | % | 77.1 | % | |||||
| Noninterest-bearing deposits to total deposits | 24.7 | % | 29.6 | % | 27.5 | % | 25.4 | % | 25.3 | % | |||||
| Yield on interest-earning assets | 5.04 | % | 4.53 | % | 3.80 | % | 3.28 | % | 3.45 | % | |||||
| Cost of interest-bearing liabilities | 1.84 | % | 0.90 | % | 0.40 | % | 0.34 | % | 0.38 | % | |||||
| Cost of total deposits | 1.20 | % | 0.52 | % | 0.25 | % | 0.20 | % | 0.22 | % | |||||
| Credit Quality Ratios | |||||||||||||||
| Allowance for credit losses as a percentage of loans HFI(b) | 1.44 | % | 1.48 | % | 1.46 | % | 1.50 | % | 1.65 | % | |||||
| Net charge-offs (recoveries) as a percentage of average loans HFI | 0.02 | % | 0.00 | % | 0.09 | % | (0.03) | % | 0.12 | % | |||||
| Nonperforming loans HFI as a percentage of total loans HFI | 0.49 | % | 0.47 | % | 0.51 | % | 0.51 | % | 0.62 | % | |||||
| Nonperforming assets as a percentage of total assets(c) | 0.68 | % | 0.62 | % | 0.46 | % | 0.44 | % | 0.50 | % | |||||
| Preliminary capital ratios (Consolidated) | |||||||||||||||
| Total common shareholders' equity to assets | 10.3 | % | 10.5 | % | 10.8 | % | 10.9 | % | 11.4 | % | |||||
| Tangible common equity to tangible assets* | 8.50 | % | 8.54 | % | 8.90 | % | 9.03 | % | 9.51 | % | |||||
| Tier 1 capital (to average assets) | 10.5 | % | 10.7 | % | 10.2 | % | 10.2 | % | 10.5 | % | |||||
| Tier 1 capital (to risk-weighted assets)(d) | 11.3 | % | 11.2 | % | 11.8 | % | 12.3 | % | 12.6 | % | |||||
| Total capital (to risk-weighted assets)(d) | 13.1 | % | 13.0 | % | 13.6 | % | 14.2 | % | 14.5 | % | |||||
| Common equity Tier 1 (to risk-weighted assets) (CET1)(d) | 11.0 | % | 10.9 | % | 11.5 | % | 12.0 | % | 12.3 | % |
(a) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth and second quarters of 2022 and the fourth quarter of 2021.
(b) Excludes reserve for credit losses on unfunded commitments of $22,969, $23,577, $20,399, $16,262, and $14,380 recorded in accrued expenses and other liabilities as of December 31, 2022, September 30, 2022, June 30, 2022 March 31, 2022, and December 31, 2021, respectively.
(c) Includes optional right to repurchase seriously delinquent GNMA loans previously sold as of December 31, 2022 and September 30, 2022. See nonperforming assets summary on page 14 of earnings release supplement.
(d) Risk-weighted assets are calculated using the standardized method of the Basel III Framework.
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.
| FB Financial Corporation | 4 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| For the Quarter Ended | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||
| Q4 2022 | Q4 2022 | |||||||||||||||
| vs. | vs. | |||||||||||||||
| 2022 | 2021 | Q3 2022 | Q4 2021 | |||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Percent variance | Percent variance | ||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 133,180 | $ | 116,664 | $ | 99,655 | $ | 86,864 | $ | 89,996 | 14.2 | % | 48.0 | % | ||
| Interest on securities | ||||||||||||||||
| Taxable | 6,707 | 6,843 | 6,499 | 5,420 | 4,534 | (1.99) | % | 47.9 | % | |||||||
| Tax-exempt | 1,806 | 1,818 | 1,842 | 1,866 | 1,885 | (0.66) | % | (4.19) | % | |||||||
| Other | 5,905 | 3,158 | 2,218 | 977 | 804 | 87.0 | % | 634.5 | % | |||||||
| Total interest income | 147,598 | 128,483 | 110,214 | 95,127 | 97,219 | 14.9 | % | 51.8 | % | |||||||
| Interest expense: | ||||||||||||||||
| Deposits | 31,456 | 13,133 | 6,591 | 5,462 | 5,848 | 139.5 | % | 437.9 | % | |||||||
| Borrowings | 5,644 | 3,966 | 1,452 | 1,483 | 1,616 | 42.3 | % | 249.3 | % | |||||||
| Total interest expense | 37,100 | 17,099 | 8,043 | 6,945 | 7,464 | 117.0 | % | 397.1 | % | |||||||
| Net interest income | 110,498 | 111,384 | 102,171 | 88,182 | 89,755 | (0.80) | % | 23.1 | % | |||||||
| Provision for credit losses | 152 | 8,189 | 8,181 | (6,129) | (11,646) | (98.1) | % | (101.3) | % | |||||||
| Provision for credit losses on unfunded commitments | (608) | 3,178 | 4,137 | 1,882 | 877 | (119.1) | % | (169.3) | % | |||||||
| Net interest income after provisions for credit <br> losses | 110,954 | 100,017 | 89,853 | 92,429 | 100,524 | 10.9 | % | 10.4 | % | |||||||
| Noninterest income: | ||||||||||||||||
| Mortgage banking income | 9,106 | 12,384 | 22,559 | 29,531 | 31,350 | (26.5) | % | (71.0) | % | |||||||
| Service charges on deposit accounts | 3,019 | 3,208 | 2,908 | 2,914 | 2,817 | (5.89) | % | 7.17 | % | |||||||
| ATM and interchange fees | 2,546 | 2,614 | 5,353 | 5,087 | 5,310 | (2.60) | % | (52.1) | % | |||||||
| Investment services and trust income | 2,232 | 2,227 | 2,275 | 2,132 | 1,040 | 0.22 | % | 114.6 | % | |||||||
| Gain (loss) from securities, net | 25 | (140) | (109) | (152) | 46 | (117.9) | % | (45.7) | % | |||||||
| (Loss) gain on sales or write-downs of other real estate <br>owned | (25) | 435 | (26) | (498) | 26 | (105.7) | % | (196.2) | % | |||||||
| (Loss) gain from other assets | (227) | (6) | 18 | 64 | 161 | 3,683.3 | % | (241.0) | % | |||||||
| Other income | 793 | 1,870 | 236 | 2,314 | 12,469 | (57.6) | % | (93.6) | % | |||||||
| Total noninterest income | 17,469 | 22,592 | 33,214 | 41,392 | 53,219 | (22.7) | % | (67.2) | % | |||||||
| Total revenue | 127,967 | 133,976 | 135,385 | 129,574 | 142,974 | (4.49) | % | (10.5) | % | |||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries, commissions and employee benefits | 45,839 | 51,028 | 55,181 | 59,443 | 58,562 | (10.2) | % | (21.7) | % | |||||||
| Occupancy and equipment expense | 6,295 | 6,011 | 5,853 | 5,403 | 5,549 | 4.72 | % | 13.4 | % | |||||||
| Legal and professional fees | 4,857 | 4,448 | 3,116 | 2,607 | 2,460 | 9.20 | % | 97.4 | % | |||||||
| Data processing | 2,096 | 2,334 | 2,404 | 2,481 | 2,531 | (10.2) | % | (17.2) | % | |||||||
| Amortization of core deposits and other intangibles | 1,039 | 1,108 | 1,194 | 1,244 | 1,295 | (6.23) | % | (19.8) | % | |||||||
| Advertising | 3,094 | 2,050 | 2,031 | 4,033 | 3,909 | 50.9 | % | (20.8) | % | |||||||
| Mortgage restructuring expense | — | — | 12,458 | — | — | — | % | — | % | |||||||
| Other expense | 17,010 | 14,868 | 14,760 | 14,061 | 16,596 | 14.4 | % | 2.49 | % | |||||||
| Total noninterest expense | 80,230 | 81,847 | 96,997 | 89,272 | 90,902 | (1.98) | % | (11.7) | % | |||||||
| Income before income taxes | 48,193 | 40,762 | 26,070 | 44,549 | 62,841 | 18.2 | % | (23.3) | % | |||||||
| Income tax expense | 10,042 | 8,931 | 6,717 | 9,313 | 14,006 | 12.4 | % | (28.3) | % | |||||||
| Net income applicable to FB Financial<br><br>Corporation and noncontrolling interest | 38,151 | 31,831 | 19,353 | 35,236 | 48,835 | 19.9 | % | (21.9) | % | |||||||
| Net income applicable to noncontrolling interest | 8 | — | 8 | — | 8 | 100.0 | % | — | % | |||||||
| Net income applicable to FB Financial<br><br>Corporation | $ | 38,143 | $ | 31,831 | $ | 19,345 | $ | 35,236 | $ | 48,827 | 19.8 | % | (21.9) | % | ||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 46,909,389 | 46,908,520 | 47,111,055 | 47,530,520 | 47,683,682 | — | % | (1.62) | % | |||||||
| Fully diluted | 47,036,742 | 47,024,611 | 47,211,650 | 47,723,902 | 47,896,715 | 0.03 | % | (1.80) | % | |||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.81 | $ | 0.68 | $ | 0.41 | $ | 0.74 | $ | 1.02 | 19.1 | % | (20.6) | % | ||
| Fully diluted | 0.81 | 0.68 | 0.41 | 0.74 | 1.02 | 19.1 | % | (20.6) | % | |||||||
| Fully diluted - adjusted* | 0.85 | 0.68 | 0.64 | 0.74 | 0.89 | 25.0 | % | (4.49) | % |
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.
| FB Financial Corporation | 5 | |||||
|---|---|---|---|---|---|---|
| Consolidated Statements of Income | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||
| (In Thousands, Except Share Data and %) | ||||||
| 2022 | ||||||
| For the Year Ended | vs. | |||||
| December 31, | 2021 | |||||
| 2022 | 2021 | Percent variance | ||||
| Interest income: | ||||||
| Interest and fees on loans | $ | 436,363 | $ | 359,262 | 21.5 | % |
| Interest on securities | ||||||
| Taxable | 25,469 | 15,186 | 67.7 | % | ||
| Tax-exempt | 7,332 | 7,657 | (4.24) | % | ||
| Other | 12,258 | 2,893 | 323.7 | % | ||
| Total interest income | 481,422 | 384,998 | 25.0 | % | ||
| Interest expense: | ||||||
| Deposits | 56,642 | 30,189 | 87.6 | % | ||
| Borrowings | 12,545 | 7,439 | 68.6 | % | ||
| Total interest expense | 69,187 | 37,628 | 83.9 | % | ||
| Net interest income | 412,235 | 347,370 | 18.7 | % | ||
| Provision for credit losses | 10,393 | (38,995) | (126.7) | % | ||
| Provision for credit losses on unfunded commitments | 8,589 | (1,998) | (529.9) | % | ||
| Net interest income after provisions for credit losses | 393,253 | 388,363 | 1.26 | % | ||
| Noninterest income: | ||||||
| Mortgage banking income | 73,580 | 167,565 | (56.1) | % | ||
| Service charges on deposit accounts | 12,049 | 10,034 | 20.1 | % | ||
| ATM and interchange fees | 15,600 | 19,900 | (21.6) | % | ||
| Investment services and trust income | 8,866 | 8,558 | 3.60 | % | ||
| (Loss) gain from securities, net | (376) | 324 | (216.0) | % | ||
| (Loss) gain on sales or write-downs of other real estate owned | (114) | 2,504 | (104.6) | % | ||
| (Loss) gain from other assets | (151) | 323 | (146.7) | % | ||
| Other income | 5,213 | 19,047 | (72.6) | % | ||
| Total noninterest income | 114,667 | 228,255 | (49.8) | % | ||
| Total revenue | 526,902 | 575,625 | (8.46) | % | ||
| Noninterest expenses: | ||||||
| Salaries, commissions and employee benefits | 211,491 | 248,318 | (14.8) | % | ||
| Occupancy and equipment expense | 23,562 | 22,733 | 3.65 | % | ||
| Legal and professional fees | 15,028 | 9,161 | 64.0 | % | ||
| Data processing | 9,315 | 9,987 | (6.73) | % | ||
| Amortization of core deposit and other intangibles | 4,585 | 5,473 | (16.2) | % | ||
| Advertising | 11,208 | 13,921 | (19.5) | % | ||
| Mortgage restructuring expense | 12,458 | — | 100.0 | % | ||
| Other expense | 60,699 | 63,974 | (5.12) | % | ||
| Total noninterest expense | 348,346 | 373,567 | (6.75) | % | ||
| Income before income taxes | 159,574 | 243,051 | (34.3) | % | ||
| Income tax expense | 35,003 | 52,750 | (33.6) | % | ||
| Net income applicable to noncontrolling interest and FB Financial Corporation | 124,571 | 190,301 | (34.5) | % | ||
| Net income applicable to noncontrolling interests | 16 | 16 | — | % | ||
| Net income applicable to FB Financial Corporation | $ | 124,555 | $ | 190,285 | (34.5) | % |
| Weighted average common shares outstanding: | ||||||
| Basic | 47,113,470 | 47,431,102 | (0.67) | % | ||
| Fully diluted | 47,239,791 | 47,955,880 | (1.49) | % | ||
| Earnings per common share: | ||||||
| Basic | $ | 2.64 | $ | 4.01 | (34.2) | % |
| Fully diluted | 2.64 | 3.97 | (33.5) | % | ||
| Fully diluted - adjusted* | 2.91 | 3.78 | (23.0) | % |
*This measure is considered a non-GAAP financial measure. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.
| FB Financial Corporation | 6 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| (Unaudited) | ||||||||||||||||
| (In Thousands, Except %) | ||||||||||||||||
| Annualized | ||||||||||||||||
| Q4 2022 | Q4 2022 | |||||||||||||||
| vs. | vs. | |||||||||||||||
| 2022 | 2021 | Q3 2022 | Q4 2021 | |||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Percent variance | Percent variance | ||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 259,872 | $ | 193,301 | $ | 79,402 | $ | 61,637 | $ | 91,333 | 136.6 | % | 184.5 | % | ||
| Federal funds sold and reverse repurchase agreements | 210,536 | 115,140 | 233,588 | 134,763 | 128,087 | 328.7 | % | 64.4 | % | |||||||
| Interest-bearing deposits in financial institutions | 556,644 | 309,849 | 559,871 | 1,546,911 | 1,578,320 | 316.0 | % | (64.7) | % | |||||||
| Cash and cash equivalents | 1,027,052 | 618,290 | 872,861 | 1,743,311 | 1,797,740 | 262.3 | % | (42.9) | % | |||||||
| Investments: | ||||||||||||||||
| Available-for-sale debt securities, at fair value | 1,471,186 | 1,482,171 | 1,618,241 | 1,683,525 | 1,678,525 | (2.94) | % | (12.4) | % | |||||||
| Equity securities, at fair value | 2,990 | 2,962 | 3,103 | 3,213 | 3,367 | 3.75 | % | (11.2) | % | |||||||
| Federal Home Loan Bank stock, at cost | 58,641 | 58,587 | 34,581 | 34,433 | 32,217 | 0.37 | % | 82.0 | % | |||||||
| Mortgage loans held for sale, at fair value | 108,961 | 97,011 | 222,400 | 318,549 | 672,924 | 48.9 | % | (83.8) | % | |||||||
| Commercial loans held for sale, at fair value | 30,490 | 33,722 | 37,815 | 78,179 | 79,299 | (38.0) | % | (61.6) | % | |||||||
| Loans held for investment | 9,298,212 | 9,105,016 | 8,624,337 | 8,004,976 | 7,604,662 | 8.42 | % | 22.3 | % | |||||||
| Less: allowance for credit losses | 134,192 | 134,476 | 126,272 | 120,049 | 125,559 | (0.84) | % | 6.88 | % | |||||||
| Net loans | 9,164,020 | 8,970,540 | 8,498,065 | 7,884,927 | 7,479,103 | 8.56 | % | 22.5 | % | |||||||
| Premises and equipment, net | 146,316 | 143,277 | 142,474 | 142,550 | 143,739 | 8.42 | % | 1.79 | % | |||||||
| Other real estate owned, net | 5,794 | 5,919 | 9,398 | 9,721 | 9,777 | (8.38) | % | (40.7) | % | |||||||
| Operating lease right-of-use assets | 60,043 | 61,444 | 41,070 | 41,037 | 41,686 | (9.05) | % | 44.0 | % | |||||||
| Interest receivable | 45,684 | 39,034 | 40,393 | 39,069 | 38,528 | 67.6 | % | 18.6 | % | |||||||
| Mortgage servicing rights, at fair value | 168,365 | 171,427 | 158,678 | 144,675 | 115,512 | (7.09) | % | 45.8 | % | |||||||
| Goodwill | 242,561 | 242,561 | 242,561 | 242,561 | 242,561 | — | % | — | % | |||||||
| Core deposit and other intangibles, net | 12,368 | 13,407 | 14,515 | 15,709 | 16,953 | (30.7) | % | (27.0) | % | |||||||
| Bank-owned life insurance | 75,329 | 74,976 | 74,605 | 74,232 | 73,519 | 1.87 | % | 2.46 | % | |||||||
| Other assets | 227,956 | 242,754 | 183,102 | 218,500 | 172,236 | (24.2) | % | 32.4 | % | |||||||
| Total assets | $ | 12,847,756 | $ | 12,258,082 | $ | 12,193,862 | $ | 12,674,191 | $ | 12,597,686 | 19.1 | % | 1.99 | % | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Deposits | ||||||||||||||||
| Noninterest-bearing | $ | 2,676,631 | $ | 2,966,514 | $ | 2,895,520 | $ | 2,787,698 | $ | 2,740,214 | (38.8) | % | (2.32) | % | ||
| Interest-bearing checking | 3,059,984 | 2,648,161 | 3,338,561 | 3,639,779 | 3,418,666 | 61.7 | % | (10.5) | % | |||||||
| Money market and savings | 3,697,245 | 3,228,337 | 3,131,463 | 3,513,485 | 3,546,936 | 57.6 | % | 4.24 | % | |||||||
| Customer time deposits | 1,420,131 | 1,160,726 | 1,171,941 | 1,046,899 | 1,103,594 | 88.7 | % | 28.7 | % | |||||||
| Brokered and internet time deposits | 1,843 | 2,344 | 5,817 | 8,417 | 27,487 | (84.8) | % | (93.3) | % | |||||||
| Total deposits | 10,855,834 | 10,006,082 | 10,543,302 | 10,996,278 | 10,836,897 | 33.7 | % | 0.17 | % | |||||||
| Borrowings | 415,677 | 722,940 | 160,400 | 155,733 | 171,778 | (168.6) | % | 142.0 | % | |||||||
| Operating lease liabilities | 69,754 | 70,610 | 45,917 | 45,528 | 46,367 | (4.81) | % | 50.4 | % | |||||||
| Accrued expenses and other liabilities | 180,973 | 177,196 | 124,298 | 96,783 | 109,949 | 8.46 | % | 64.6 | % | |||||||
| Total liabilities | 11,522,238 | 10,976,828 | 10,873,917 | 11,294,322 | 11,164,991 | 19.7 | % | 3.20 | % | |||||||
| Shareholders' equity: | ||||||||||||||||
| Common stock, $1 par value | 46,738 | 46,926 | 46,882 | 47,488 | 47,549 | (1.59) | % | (1.71) | % | |||||||
| Additional paid-in capital | 861,588 | 867,139 | 864,614 | 888,168 | 892,529 | (2.54) | % | (3.47) | % | |||||||
| Retained earnings | 586,532 | 554,536 | 528,851 | 515,664 | 486,666 | 22.9 | % | 20.5 | % | |||||||
| Accumulated other comprehensive (loss) income, net | (169,433) | (187,440) | (120,495) | (71,544) | 5,858 | (38.1) | % | (2,992.3) | % | |||||||
| Total common shareholders' equity | 1,325,425 | 1,281,161 | 1,319,852 | 1,379,776 | 1,432,602 | 13.7 | % | (7.48) | % | |||||||
| Noncontrolling interest | 93 | 93 | 93 | 93 | 93 | — | % | — | % | |||||||
| Total equity | 1,325,518 | 1,281,254 | 1,319,945 | 1,379,869 | 1,432,695 | 13.7 | % | (7.48) | % | |||||||
| Total liabilities and shareholders' equity | $ | 12,847,756 | $ | 12,258,082 | $ | 12,193,862 | $ | 12,674,191 | $ | 12,597,686 | 19.1 | % | 1.99 | % | ||
| FB Financial Corporation | 7 | |||||||||||||||
| --- | --- | |||||||||||||||
| Average Balance, Average Yield Earned and Average Rate Paid | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| (Unaudited) | ||||||||||||||||
| (In Thousands, Except %) | ||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||
| December 31, 2022 | September 30, 2022 | |||||||||||||||
| Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | |||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans HFI(a) | $ | 9,250,859 | $ | 132,171 | 5.67 | % | $ | 8,810,094 | $ | 114,488 | 5.16 | % | ||||
| Mortgage loans held for sale(b) | 56,180 | 843 | 5.95 | % | 124,358 | 1,626 | 5.19 | % | ||||||||
| Commercial loans held for sale | 33,640 | 311 | 3.67 | % | 36,291 | 670 | 7.32 | % | ||||||||
| Securities:(b) | ||||||||||||||||
| Taxable | 1,431,776 | 6,707 | 1.86 | % | 1,469,934 | 6,843 | 1.85 | % | ||||||||
| Tax-exempt(a) | 295,698 | 2,442 | 3.28 | % | 298,905 | 2,459 | 3.26 | % | ||||||||
| Total securities(a) | 1,727,474 | 9,149 | 2.10 | % | 1,768,839 | 9,302 | 2.09 | % | ||||||||
| Federal funds sold and reverse repurchase agreements | 200,062 | 1,924 | 3.82 | % | 160,597 | 877 | 2.17 | % | ||||||||
| Interest-bearing deposits with other financial institutions | 364,543 | 3,236 | 3.52 | % | 361,684 | 1,850 | 2.03 | % | ||||||||
| FHLB stock | 58,623 | 745 | 5.04 | % | 49,478 | 431 | 3.46 | % | ||||||||
| Total interest-earning assets(a) | 11,691,381 | 148,379 | 5.04 | % | 11,311,341 | 129,244 | 4.53 | % | ||||||||
| Noninterest-earning assets: | ||||||||||||||||
| Cash and due from banks | 136,334 | 109,681 | ||||||||||||||
| Allowance for credit losses | (135,998) | (127,710) | ||||||||||||||
| Other assets | 754,310 | 744,803 | ||||||||||||||
| Total noninterest-earning assets | 754,646 | 726,774 | ||||||||||||||
| Total assets | $ | 12,446,027 | $ | 12,038,115 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||
| Interest-bearing checking | $ | 2,702,960 | $ | 10,284 | 1.51 | % | $ | 2,821,415 | $ | 5,831 | 0.82 | % | ||||
| Money market(c) | 2,976,759 | 15,196 | 2.03 | % | 2,551,521 | 4,684 | 0.73 | % | ||||||||
| Savings deposits | 488,243 | 66 | 0.05 | % | 515,882 | 70 | 0.05 | % | ||||||||
| Customer time deposits(c) | 1,310,505 | 5,902 | 1.79 | % | 1,151,843 | 2,535 | 0.87 | % | ||||||||
| Brokered and internet time deposits(c) | 1,980 | 8 | 1.60 | % | 3,501 | 13 | 1.47 | % | ||||||||
| Time deposits | 1,312,485 | 5,910 | 1.79 | % | 1,155,344 | 2,548 | 0.87 | % | ||||||||
| Total interest-bearing deposits | 7,480,447 | 31,456 | 1.67 | % | 7,044,162 | 13,133 | 0.74 | % | ||||||||
| Other interest-bearing liabilities: | ||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 27,140 | 28 | 0.41 | % | 29,580 | 12 | 0.16 | % | ||||||||
| Federal Home Loan Bank advances | 349,859 | 3,428 | 3.89 | % | 329,130 | 2,155 | 2.60 | % | ||||||||
| Subordinated debt | 126,054 | 2,182 | 6.87 | % | 127,263 | 1,792 | 5.59 | % | ||||||||
| Other borrowings | 1,434 | 6 | 1.66 | % | 1,457 | 7 | 1.91 | % | ||||||||
| Total other interest-bearing liabilities | 504,487 | 5,644 | 4.44 | % | 487,430 | 3,966 | 3.23 | % | ||||||||
| Total interest-bearing liabilities | 7,984,934 | 37,100 | 1.84 | % | 7,531,592 | 17,099 | 0.90 | % | ||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||
| Demand deposits | 2,886,297 | 2,973,650 | ||||||||||||||
| Other liabilities | 279,945 | 196,637 | ||||||||||||||
| Total noninterest-bearing liabilities | 3,166,242 | 3,170,287 | ||||||||||||||
| Total liabilities | 11,151,176 | 10,701,879 | ||||||||||||||
| Total common shareholders' equity | 1,294,758 | 1,336,143 | ||||||||||||||
| Noncontrolling interest | 93 | 93 | ||||||||||||||
| Total equity | 1,294,851 | 1,336,236 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 12,446,027 | $ | 12,038,115 | ||||||||||||
| Net interest income(a) | $ | 111,279 | $ | 112,145 | ||||||||||||
| Interest rate spread(a) | 3.20 | % | 3.63 | % | ||||||||||||
| Net interest margin(a) | 3.78 | % | 3.93 | % | ||||||||||||
| Cost of total deposits | 1.20 | % | 0.52 | % | ||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 146.4 | % | 150.2 | % | ||||||||||||
| Tax-equivalent adjustment | $ | 781 | $ | 761 | ||||||||||||
| Loans HFI yield components: | ||||||||||||||||
| Contractual interest rate(a) | $ | 126,955 | 5.45 | % | $ | 106,405 | 4.79 | % | ||||||||
| Origination and other loan fee income | 4,244 | 0.18 | % | 6,665 | 0.30 | % | ||||||||||
| Accretion on purchased loans | 319 | 0.01 | % | 949 | 0.05 | % | ||||||||||
| Nonaccrual interest | 653 | 0.03 | % | 469 | 0.02 | % | ||||||||||
| Total loans HFI yield | $ | 132,171 | 5.67 | % | $ | 114,488 | 5.16 | % |
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.
(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.
(c) Includes $932 and $931 of interest rate premium accretion on money market deposits, $156 and $180 of interest rate premium accretion on customer time deposits and $4 and $5 of interest rate premium accretion on brokered and internet time deposits for the three months ended December 31, 2022 and September 30, 2022, respectively.
| FB Financial Corporation | 8 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balance, Average Yield Earned and Average Rate Paid (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||||||||||||||
| (In Thousands, Except %) | ||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||
| June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||||||||
| Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | ||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans HFI(a) | $ | 8,323,778 | $ | 96,692 | 4.66 | % | $ | 7,762,566 | $ | 82,463 | 4.31 | % | $ | 7,452,342 | $ | 84,315 | 4.49 | % |
| Mortgage loans held for sale(b) | 215,779 | 2,350 | 4.37 | % | 470,005 | 3,566 | 3.08 | % | 700,044 | 4,765 | 2.70 | % | ||||||
| Commercial loans held for sale | 56,460 | 718 | 5.10 | % | 78,567 | 928 | 4.79 | % | 87,568 | 1,033 | 4.68 | % | ||||||
| Securities:(b) | ||||||||||||||||||
| Taxable | 1,474,999 | 6,499 | 1.77 | % | 1,380,897 | 5,420 | 1.59 | % | 1,270,749 | 4,534 | 1.42 | % | ||||||
| Tax-exempt(a) | 307,719 | 2,492 | 3.25 | % | 318,849 | 2,523 | 3.21 | % | 318,579 | 2,550 | 3.18 | % | ||||||
| Total securities(a) | 1,782,718 | 8,991 | 2.02 | % | 1,699,746 | 7,943 | 1.90 | % | 1,589,328 | 7,084 | 1.77 | % | ||||||
| Federal funds sold | 221,929 | 421 | 0.76 | % | 206,829 | 192 | 0.38 | % | 129,379 | 183 | 0.56 | % | ||||||
| Interest-bearing deposits with other financial institutions | 1,081,474 | 1,551 | 0.58 | % | 1,599,991 | 638 | 0.16 | % | 1,280,183 | 479 | 0.15 | % | ||||||
| FHLB stock | 34,536 | 246 | 2.86 | % | 32,894 | 147 | 1.81 | % | 28,525 | 142 | 1.98 | % | ||||||
| Total interest-earning assets(a) | 11,716,674 | 110,969 | 3.80 | % | 11,850,598 | 95,877 | 3.28 | % | 11,267,369 | 98,001 | 3.45 | % | ||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 91,230 | 93,419 | 102,398 | |||||||||||||||
| Allowance for credit losses | (120,297) | (125,980) | (139,684) | |||||||||||||||
| Other assets | 739,872 | 823,452 | 855,734 | |||||||||||||||
| Total noninterest-earning assets | 710,805 | 790,891 | 818,448 | |||||||||||||||
| Total assets | $ | 12,427,479 | $ | 12,641,489 | $ | 12,085,817 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||
| Interest-bearing checking | $ | 3,415,135 | $ | 3,285 | 0.39 | % | $ | 3,559,755 | $ | 2,457 | 0.28 | % | $ | 2,983,741 | $ | 2,169 | 0.29 | % |
| Money market(c) | 2,842,026 | 1,416 | 0.20 | % | 3,017,746 | 1,572 | 0.21 | % | 3,017,574 | 2,053 | 0.27 | % | ||||||
| Savings deposits | 508,511 | 68 | 0.05 | % | 487,945 | 64 | 0.05 | % | 463,002 | 63 | 0.05 | % | ||||||
| Customer time deposits(c) | 1,129,668 | 1,798 | 0.64 | % | 1,077,386 | 1,320 | 0.50 | % | 1,123,955 | 1,492 | 0.53 | % | ||||||
| Brokered and internet time deposits(c) | 6,387 | 24 | 1.51 | % | 16,065 | 49 | 1.24 | % | 27,812 | 71 | 1.01 | % | ||||||
| Time deposits | 1,136,055 | 1,822 | 0.64 | % | 1,093,451 | 1,369 | 0.51 | % | 1,151,767 | 1,563 | 0.54 | % | ||||||
| Total interest-bearing deposits | 7,901,727 | 6,591 | 0.33 | % | 8,158,897 | 5,462 | 0.27 | % | 7,616,084 | 5,848 | 0.30 | % | ||||||
| Other interest-bearing liabilities: | ||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 27,233 | 12 | 0.18 | % | 30,056 | 14 | 0.19 | % | 41,338 | 21 | 0.20 | % | ||||||
| Subordinated debt | 129,691 | 1,434 | 4.43 | % | 129,578 | 1,460 | 4.57 | % | 129,493 | 1,591 | 4.87 | % | ||||||
| Other borrowings | 1,480 | 6 | 1.63 | % | 1,502 | 9 | 2.43 | % | 1,525 | 4 | 1.04 | % | ||||||
| Total other interest-bearing liabilities | 158,404 | 1,452 | 3.68 | % | 161,136 | 1,483 | 3.73 | % | 172,356 | 1,616 | 3.72 | % | ||||||
| Total interest-bearing liabilities | 8,060,131 | 8,043 | 0.40 | % | 8,320,033 | 6,945 | 0.34 | % | 7,788,440 | 7,464 | 0.38 | % | ||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 2,879,662 | 2,767,087 | 2,747,394 | |||||||||||||||
| Other liabilities | 134,892 | 138,291 | 137,903 | |||||||||||||||
| Total noninterest-bearing liabilities | 3,014,554 | 2,905,378 | 2,885,297 | |||||||||||||||
| Total liabilities | 11,074,685 | 11,225,411 | 10,673,737 | |||||||||||||||
| Total common shareholders' equity | 1,352,701 | 1,415,985 | 1,411,987 | |||||||||||||||
| Noncontrolling interest | 93 | 93 | 93 | |||||||||||||||
| Total equity | 1,352,794 | 1,416,078 | 1,412,080 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 12,427,479 | $ | 12,641,489 | $ | 12,085,817 | ||||||||||||
| Net interest income(a) | $ | 102,926 | $ | 88,932 | $ | 90,537 | ||||||||||||
| Interest rate spread(a) | 3.40 | % | 2.94 | % | 3.07 | % | ||||||||||||
| Net interest margin(a) | 3.52 | % | 3.04 | % | 3.19 | % | ||||||||||||
| Cost of total deposits | 0.25 | % | 0.20 | % | 0.22 | % | ||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 145.4 | % | 142.4 | % | 144.7 | % | ||||||||||||
| Tax-equivalent adjustment | $ | 755 | $ | 750 | $ | 782 | ||||||||||||
| Loans HFI yield components: | ||||||||||||||||||
| Contractual interest rate(a) | $ | 88,005 | 4.24 | % | $ | 79,789 | 4.12 | % | $ | 78,324 | 4.17 | % | ||||||
| Origination and other loan fee income | 6,927 | 0.33 | % | 4,982 | 0.26 | % | 6,084 | 0.33 | % | |||||||||
| Accretion (amortization) on purchased loans | 64 | — | % | (2,352) | (0.12) | % | (726) | (0.04) | % | |||||||||
| Nonaccrual interest | 546 | 0.03 | % | 1,044 | 0.05 | % | 633 | 0.03 | % | |||||||||
| Syndication fee income | 1,150 | 0.06 | % | — | — | % | — | — | % | |||||||||
| Total loans HFI yield | $ | 96,692 | 4.66 | % | $ | 82,463 | 4.31 | % | $ | 84,315 | 4.49 | % |
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.
(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.
(c) Includes $932, $932, and $932 of interest rate premium accretion on money market deposits, $207, $248, and $316 of interest rate premium accretion on customer time deposits, and $11, $42, and $83 of interest rate premium accretion on brokered and internet deposits for the three months ended June 30, 2022, March 31, 2022, and, December 31, 2021, respectively.
| FB Financial Corporation | 9 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balance, Average Yield Earned and Average Rate Paid (continued) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||||||||
| (In Thousands, Except %) | ||||||||||||
| Year Ended | Year Ended | |||||||||||
| December 31, 2022 | December 31, 2021 | |||||||||||
| Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | Average<br>balances | Interest<br>income/<br>expense | Average<br>yield/<br>rate | |||||||
| Interest-earning assets: | ||||||||||||
| Loans HFI(a)(d) | $ | 8,541,650 | $ | 425,814 | 4.99 | % | $ | 7,197,213 | $ | 334,861 | 4.65 | % |
| Mortgage loans held for sale(b) | 215,952 | 8,385 | 3.88 | % | 696,313 | 18,690 | 2.68 | % | ||||
| Commercial loans held for sale | 51,075 | 2,627 | 5.14 | % | 136,359 | 6,098 | 4.47 | % | ||||
| Securities:(b) | ||||||||||||
| Taxable | 1,439,745 | 25,469 | 1.77 | % | 1,050,207 | 15,186 | 1.45 | % | ||||
| Tax-exempt(a) | 305,212 | 9,916 | 3.25 | % | 321,911 | 10,356 | 3.22 | % | ||||
| Total securities(a) | 1,744,957 | 35,385 | 2.03 | % | 1,372,118 | 25,542 | 1.86 | % | ||||
| Federal funds sold and reverse repurchase agreements | 197,235 | 3,414 | 1.73 | % | 128,724 | 379 | 0.29 | % | ||||
| Interest-bearing deposits with other financial institutions | 843,779 | 7,275 | 0.86 | % | 1,427,332 | 1,902 | 0.13 | % | ||||
| FHLB stock | 43,969 | 1,569 | 3.57 | % | 30,022 | 612 | 2.04 | % | ||||
| Total interest-earning assets(a) | 11,638,617 | 484,469 | 4.16 | % | 10,988,081 | 388,084 | 3.53 | % | ||||
| Noninterest-earning assets: | ||||||||||||
| Cash and due from banks | 107,814 | 128,977 | ||||||||||
| Allowance for loan losses | (127,499) | (153,301) | ||||||||||
| Other assets | 758,918 | 884,703 | ||||||||||
| Total noninterest-earning assets | 739,233 | 860,379 | ||||||||||
| Total assets | $ | 12,377,850 | $ | 11,848,460 | ||||||||
| Interest-bearing liabilities: | ||||||||||||
| Interest-bearing deposits: | ||||||||||||
| Interest-bearing checking | $ | 3,121,638 | $ | 21,857 | 0.70 | % | $ | 2,924,388 | $ | 10,174 | 0.35 | % |
| Money market(e) | 2,846,101 | 22,868 | 0.80 | % | 2,973,662 | 10,806 | 0.36 | % | ||||
| Savings deposits | 500,189 | 268 | 0.05 | % | 421,252 | 233 | 0.06 | % | ||||
| Customer time deposits(e) | 1,167,947 | 11,555 | 0.99 | % | 1,246,912 | 8,384 | 0.67 | % | ||||
| Brokered and internet time deposits(e) | 6,935 | 94 | 1.36 | % | 34,943 | 592 | 1.69 | % | ||||
| Time deposits | 1,174,882 | 11,649 | 0.99 | % | 1,281,855 | 8,976 | 0.70 | % | ||||
| Total interest-bearing deposits | 7,642,810 | 56,642 | 0.74 | % | 7,601,157 | 30,189 | 0.40 | % | ||||
| Other interest-bearing liabilities: | ||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 28,497 | 66 | 0.23 | % | 36,453 | 98 | 0.27 | % | ||||
| Federal Home Loan Bank advances(g) | 171,142 | 5,583 | 3.26 | % | — | — | — | % | ||||
| Subordinated debt(f) | 127,799 | 6,868 | 5.37 | % | 149,097 | 7,316 | 4.91 | % | ||||
| Other borrowings | 1,468 | 28 | 1.91 | % | 2,626 | 25 | 0.95 | % | ||||
| Total other interest-bearing liabilities | 328,906 | 12,545 | 3.81 | % | 188,176 | 7,439 | 3.95 | % | ||||
| Total interest-bearing liabilities | 7,971,716 | 69,187 | 0.87 | % | 7,789,333 | 37,628 | 0.48 | % | ||||
| Noninterest-bearing liabilities: | ||||||||||||
| Demand deposits | 2,877,266 | 2,545,494 | ||||||||||
| Other liabilities | 179,192 | 151,903 | ||||||||||
| Total noninterest-bearing liabilities | 3,056,458 | 2,697,397 | ||||||||||
| Total liabilities | 11,028,174 | 10,486,730 | ||||||||||
| Total common shareholders' equity | 1,349,583 | 1,361,637 | ||||||||||
| Noncontrolling interest | 93 | 93 | ||||||||||
| Total equity | 1,349,676 | 1,361,730 | ||||||||||
| Total liabilities and shareholders' equity | $ | 12,377,850 | $ | 11,848,460 | ||||||||
| Net interest income(a) | $ | 415,282 | $ | 350,456 | ||||||||
| Interest rate spread(a) | 3.29 | % | 3.05 | % | ||||||||
| Net interest margin(a) | 3.57 | % | 3.19 | % | ||||||||
| Cost of total deposits | 0.54 | % | 0.30 | % | ||||||||
| Average interest-earning assets to average interest-bearing liabilities | 146.0 | % | 141.1 | % | ||||||||
| Tax equivalent adjustment | $ | 3,047 | $ | 3,086 | ||||||||
| Loans HFI yield components: | ||||||||||||
| Contractual interest rate(a)(c) | $ | 400,154 | 4.69 | % | $ | 307,429 | 4.27 | % | ||||
| Origination and other loan fee income(c) | 22,818 | 0.27 | % | 26,029 | 0.36 | % | ||||||
| Amortization on purchased loans | (1,020) | (0.01) | % | (853) | (0.01) | % | ||||||
| Nonaccrual interest | 2,712 | 0.03 | % | 2,256 | 0.03 | % | ||||||
| Syndication fee income | 1,150 | 0.01 | % | — | — | % | ||||||
| Total loans HFI yield | $ | 425,814 | 4.99 | % | $ | 334,861 | 4.65 | % |
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.
(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.
(c) Includes $814 of loan contractual interest and $3,274 of loan fees related to PPP loans for the year ended December 31, 2021. There was no meaningful interest income recognized from PPP loans during the year ended December 31, 2022.
(d) Includes $1,570 and $81,753 of average PPP loan balances during the years ended December 31, 2022 and 2021.
(e) Includes $3,727 and $3,727 of interest rate premium accretion on money market deposits, $791 and 2,177 of interest rate mark accretion on customer time deposits and $62 and $462 of interest rate mark accretion on brokered and internet deposits for the years ended December 31, 2022 and 2021, respectively.
(f) Includes $369 interest rate premium accretion on subordinated debt for the year ended December 31, 2021.
| FB Financial Corporation | 10 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Loans and Deposits by Market | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||||||
| (In Thousands) | ||||||||||
| 2022 | 2021 | |||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||
| Loans by market | ||||||||||
| Metropolitan | $ | 7,710,999 | $ | 7,496,090 | $ | 7,005,014 | $ | 6,470,116 | $ | 6,127,930 |
| Community | 670,043 | 669,810 | 682,134 | 704,254 | 738,249 | |||||
| Specialty lending and other | 917,170 | 939,116 | 937,189 | 830,606 | 738,483 | |||||
| Total | $ | 9,298,212 | $ | 9,105,016 | $ | 8,624,337 | $ | 8,004,976 | $ | 7,604,662 |
| Deposits by market | ||||||||||
| Metropolitan | $ | 6,944,678 | $ | 6,140,632 | $ | 6,670,308 | $ | 7,007,149 | $ | 6,981,639 |
| Community | 2,671,326 | 2,584,629 | 2,624,380 | 2,580,610 | 2,436,548 | |||||
| Mortgage and other(a) | 1,239,830 | 1,280,821 | 1,248,614 | 1,408,519 | 1,418,710 | |||||
| Total | $ | 10,855,834 | $ | 10,006,082 | $ | 10,543,302 | $ | 10,996,278 | $ | 10,836,897 |
(a) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale/other deposits.
| FB Financial Corporation | 11 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Segment Data | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| For the Quarters Ended | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In Thousands, Except %) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||
| Banking segment | |||||||||||||||
| Net interest income | $ | 110,498 | $ | 111,384 | $ | 102,171 | $ | 88,184 | $ | 89,616 | |||||
| Provisions for credit losses | (456) | 11,367 | 12,318 | (4,247) | (10,769) | ||||||||||
| Noninterest income | 8,345 | 10,293 | 10,699 | 11,983 | 21,850 | ||||||||||
| Other noninterest expense | 66,926 | 65,886 | 59,320 | 59,584 | 60,104 | ||||||||||
| Pre-tax income after allocations | $ | 52,373 | $ | 44,424 | $ | 41,232 | $ | 44,830 | $ | 62,131 | |||||
| Total assets | $ | 12,228,451 | $ | 11,648,610 | $ | 11,469,762 | $ | 11,890,847 | $ | 11,540,560 | |||||
| Intracompany funding income included in net interest income | 4,247 | 4,143 | 4,850 | 5,666 | 6,325 | ||||||||||
| Core efficiency ratio* | 54.7 | % | 53.8 | % | 51.3 | % | 58.7 | % | 57.5 | % | |||||
| Mortgage segment | |||||||||||||||
| Net interest income | $ | — | $ | — | $ | — | $ | (2) | $ | 139 | |||||
| Mortgage banking income | 9,106 | 12,384 | 22,559 | 29,531 | 31,350 | ||||||||||
| Other noninterest income | 18 | (85) | (44) | (122) | 19 | ||||||||||
| Mortgage restructuring expense | — | — | 12,458 | — | — | ||||||||||
| Other noninterest expense | 13,304 | 15,961 | 25,219 | 29,688 | 30,798 | ||||||||||
| Direct (loss) contribution | $ | (4,180) | $ | (3,662) | $ | (15,162) | $ | (281) | $ | 710 | |||||
| Total assets | $ | 619,305 | $ | 609,472 | $ | 724,100 | $ | 783,344 | $ | 1,057,126 | |||||
| Intracompany funding expense included in net interest income | 4,247 | 4,143 | 4,850 | 5,666 | 6,325 | ||||||||||
| Core efficiency ratio* | 145.4 | % | 128.9 | % | 111.8 | % | 100.5 | % | 97.8 | % | |||||
| Interest rate lock commitments volume | |||||||||||||||
| Direct-to-consumer | |||||||||||||||
| Purchase | $ | — | $ | — | $ | 74,704 | $ | 248,723 | $ | 182,037 | |||||
| Refinance | — | — | 21,052 | 319,369 | 614,863 | ||||||||||
| Total direct-to-consumer | $ | — | $ | — | $ | 95,756 | $ | 568,092 | $ | 796,900 | |||||
| Retail: | |||||||||||||||
| Purchase | $ | 238,896 | $ | 350,909 | $ | 513,309 | $ | 497,937 | $ | 450,878 | |||||
| Refinance | 42,754 | 57,970 | 91,805 | 243,078 | 236,804 | ||||||||||
| Total retail | $ | 281,650 | $ | 408,879 | $ | 605,114 | $ | 741,015 | $ | 687,682 | |||||
| Total interest rate lock commitments volume | $ | 281,650 | $ | 408,879 | $ | 700,870 | $ | 1,309,107 | $ | 1,484,582 | |||||
| Interest rate lock commitments pipeline (period end) | |||||||||||||||
| Direct-to-consumer | $ | — | $ | — | $ | 11,249 | $ | 210,167 | $ | 272,401 | |||||
| Retail | 118,313 | 188,430 | 281,467 | 331,393 | 214,995 | ||||||||||
| Total | $ | 118,313 | $ | 188,430 | $ | 292,716 | $ | 541,560 | $ | 487,396 | |||||
| Mortgage loan sales | |||||||||||||||
| Direct-to-consumer | $ | 6,972 | $ | 48,490 | $ | 325,608 | $ | 650,740 | $ | 765,535 | |||||
| Retail | 259,862 | 521,165 | 544,080 | 633,742 | 647,066 | ||||||||||
| Total | $ | 266,834 | $ | 569,655 | $ | 869,688 | $ | 1,284,482 | $ | 1,412,601 | |||||
| Gains and fees from origination and sale of mortgage loans held for sale | $ | 8,967 | $ | 11,085 | $ | 21,099 | $ | 29,397 | $ | 37,538 | |||||
| Net change in fair value of loans held for sale, derivatives, and other | (2,270) | (2,460) | (5,354) | (7,548) | (12,478) | ||||||||||
| Mortgage servicing income | 7,264 | 8,104 | 7,966 | 7,429 | 7,632 | ||||||||||
| Change in fair value of mortgage servicing rights, net of hedging | (4,855) | (4,345) | (1,152) | 253 | (1,342) | ||||||||||
| Total mortgage banking income | $ | 9,106 | $ | 12,384 | $ | 22,559 | $ | 29,531 | $ | 31,350 | |||||
| Mortgage sale margin(a) | 3.36 | % | 1.95 | % | 2.43 | % | 2.29 | % | 2.66 | % |
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.
(a) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.
| FB Financial Corporation | 12 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loan Portfolio | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As of the Quarter Ended | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (In Thousands, Except %) | |||||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| Fourth Quarter | % of Total | Third Quarter | % of Total | Second Quarter | % of Total | First Quarter | % of Total | Fourth Quarter | % of Total | ||||||||
| Loan portfolio | |||||||||||||||||
| Commercial and Industrial (a) | $ | 1,645,783 | 18 | % | $ | 1,534,159 | 17% | $ | 1,479,424 | 17% | $ | 1,380,600 | 17% | $ | 1,290,565 | 17 | % |
| Construction | 1,657,488 | 18 | % | 1,679,497 | 18% | 1,575,331 | 18% | 1,468,811 | 19% | 1,327,659 | 17 | % | |||||
| Residential real estate: | |||||||||||||||||
| 1-to-4 family mortgage | 1,573,121 | 17 | % | 1,545,252 | 17% | 1,457,452 | 17% | 1,346,349 | 17% | 1,270,467 | 17 | % | |||||
| Residential line of credit | 496,660 | 5 | % | 460,774 | 5% | 425,485 | 5% | 392,740 | 5% | 383,039 | 5 | % | |||||
| Multi-family mortgage | 479,572 | 5 | % | 394,366 | 4% | 391,970 | 5% | 400,501 | 5% | 326,551 | 4 | % | |||||
| Commercial real estate: | |||||||||||||||||
| Owner occupied | 1,114,580 | 12 | % | 1,158,343 | 13% | 1,053,872 | 12% | 978,436 | 12% | 951,582 | 13 | % | |||||
| Non-owner occupied | 1,964,010 | 21 | % | 1,954,219 | 22% | 1,885,122 | 22% | 1,706,546 | 21% | 1,730,165 | 23 | % | |||||
| Consumer and other | 366,998 | 4 | % | 378,406 | 4% | 355,681 | 4% | 330,993 | 4% | 324,634 | 4 | % | |||||
| Total loans HFI | $ | 9,298,212 | 100 | % | $ | 9,105,016 | 100% | $ | 8,624,337 | 100% | $ | 8,004,976 | 100% | $ | 7,604,662 | 100 | % |
| Variable interest rate portfolio percentage | 47% | 47% | 48% | 49% | 49% | ||||||||||||
| Variable interest rate portfolio percentage<br> with maturity dates due after one year | 40% | 42% | 42% | 44% | 44% | ||||||||||||
| Unfunded loan commitments | |||||||||||||||||
| Commercial and Industrial | $ | 1,026,078 | 29 | % | $ | 1,062,657 | 29% | $ | 1,003,189 | 30% | $ | 819,924 | 26% | $ | 769,463 | 25 | % |
| Construction | 1,639,015 | 46 | % | 1,696,733 | 45% | 1,522,155 | 47% | 1,599,738 | 50% | 1,558,429 | 50 | % | |||||
| Residential real estate: | |||||||||||||||||
| 1-to-4 family mortgage | 829 | — | % | 868 | —% | 949 | —% | 1,118 | —% | 2,010 | — | % | |||||
| Residential line of credit | 655,090 | 18 | % | 640,834 | 18% | 596,236 | 18% | 579,098 | 18% | 552,532 | 18 | % | |||||
| Multi-family mortgage | 17,092 | 1 | % | 28,407 | 1% | 11,742 | —% | 13,742 | —% | 13,331 | — | % | |||||
| Commercial real estate: | |||||||||||||||||
| Owner occupied | 41,954 | 1 | % | 63,457 | 2% | 49,924 | 1% | 48,769 | 2% | 53,952 | 2 | % | |||||
| Non-owner occupied | 145,208 | 4 | % | 136,163 | 4% | 96,462 | 3% | 101,335 | 3% | 109,825 | 4 | % | |||||
| Consumer and other | 26,634 | 1 | % | 30,358 | 1% | 48,349 | 1% | 32,261 | 1% | 26,519 | 1 | % | |||||
| Total unfunded loans HFI | $ | 3,551,900 | 100 | % | $ | 3,659,477 | 100% | $ | 3,329,006 | 100% | $ | 3,195,985 | 100% | $ | 3,086,061 | 100 | % |
(a) Includes PPP loan balances of $767, $851, $1,289, $2,062, and $3,990 as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
| FB Financial Corporation | 13 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Quality | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As of or for the Quarter Ended | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In Thousands, Except %) | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||
| Allowance for credit losses roll forward summary | |||||||||||||||
| Allowance for credit losses at the beginning of the period | $ | 134,476 | $ | 126,272 | $ | 120,049 | $ | 125,559 | $ | 139,446 | |||||
| Charge-offs | (1,273) | (461) | (2,388) | (579) | (3,225) | ||||||||||
| Recoveries | 837 | 476 | 430 | 1,198 | 984 | ||||||||||
| Provision for credit losses | 152 | 8,189 | 8,181 | (6,129) | (11,646) | ||||||||||
| Allowance for credit losses at the end of the period | $ | 134,192 | $ | 134,476 | $ | 126,272 | $ | 120,049 | $ | 125,559 | |||||
| Allowance for credit losses as a percentage of total loans HFI | 1.44 | % | 1.48 | % | 1.46 | % | 1.50 | % | 1.65 | % | |||||
| Allowance for credit losses on unfunded commitments | $ | 22,969 | $ | 23,577 | $ | 20,399 | $ | 16,262 | $ | 14,380 | |||||
| Charge-offs | |||||||||||||||
| Commercial and Industrial | $ | (332) | $ | — | $ | (1,751) | $ | (4) | $ | (1,224) | |||||
| Residential real estate: | |||||||||||||||
| 1-to-4 family mortgage | (34) | (20) | (23) | — | (5) | ||||||||||
| Multi-family mortgage | — | — | — | — | (1) | ||||||||||
| Commercial real estate: | |||||||||||||||
| Owner occupied | (15) | — | — | — | — | ||||||||||
| Non-owner occupied | (268) | — | — | — | (1,566) | ||||||||||
| Consumer and other | (624) | (441) | (614) | (575) | (429) | ||||||||||
| Total charge-offs | (1,273) | (461) | (2,388) | (579) | (3,225) | ||||||||||
| Recoveries | |||||||||||||||
| Commercial and Industrial | 679 | 342 | 26 | 958 | 626 | ||||||||||
| Construction | — | — | 11 | — | — | ||||||||||
| Residential real estate: | |||||||||||||||
| 1-to-4 family mortgage | 15 | 13 | 14 | 12 | 27 | ||||||||||
| Residential line of credit | — | — | 16 | 1 | 99 | ||||||||||
| Commercial real estate: | |||||||||||||||
| Owner occupied | 12 | 51 | 15 | 10 | 13 | ||||||||||
| Consumer and other | 131 | 70 | 348 | 217 | 219 | ||||||||||
| Total recoveries | 837 | 476 | 430 | 1,198 | 984 | ||||||||||
| Net (charge-offs) recoveries | $ | (436) | $ | 15 | $ | (1,958) | $ | 619 | $ | (2,241) | |||||
| Net charge-offs (recoveries) as a percentage of average total loans | 0.02 | % | 0.00 | % | 0.09 | % | (0.03) | % | 0.12 | % | |||||
| Nonperforming assets(a) | |||||||||||||||
| Past due 90 days or more and accruing interest | $ | 18,415 | $ | 16,002 | $ | 14,585 | $ | 12,873 | $ | 11,735 | |||||
| Nonaccrual | 27,431 | 26,625 | 29,535 | 27,826 | 35,568 | ||||||||||
| Total nonperforming loans held for investment | 45,846 | 42,627 | 44,120 | 40,699 | 47,303 | ||||||||||
| Commercial loans held for sale | 9,289 | — | 1,459 | 5,087 | 5,217 | ||||||||||
| Mortgage loans held for sale(b) | 26,211 | 26,485 | — | — | — | ||||||||||
| Other real estate owned: | |||||||||||||||
| Foreclosed | 3,678 | 3,452 | 6,418 | 6,692 | 6,429 | ||||||||||
| Excess land and facilities | 2,116 | 2,467 | 2,980 | 3,029 | 3,348 | ||||||||||
| Other assets | 351 | 639 | 527 | 453 | 686 | ||||||||||
| Total nonperforming assets | $ | 87,491 | $ | 75,670 | $ | 55,504 | $ | 55,960 | $ | 62,983 | |||||
| Total nonperforming loans as a percentage of loans held for investment | 0.49 | % | 0.47 | % | 0.51 | % | 0.51 | % | 0.62 | % | |||||
| Total nonperforming assets as a percentage of total assets(b) | 0.68 | % | 0.62 | % | 0.46 | % | 0.44 | % | 0.50 | % | |||||
| Total nonaccrual loans as a percentage of total loans HFI | 0.30 | % | 0.29 | % | 0.34 | % | 0.35 | % | 0.47 | % | |||||
| Loans restructured as troubled debt restructurings | $ | 13,854 | $ | 14,959 | $ | 17,054 | $ | 20,601 | $ | 32,435 | |||||
| Troubled debt restructurings as a percentage of loans held for investment | 0.15 | % | 0.16 | % | 0.20 | % | 0.26 | % | 0.43 | % |
(a) Nonperforming assets include guaranteed repurchased loans previously sold of $5,189, $4,122, $4,003, $5,741, and $4,000 as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
(b) Includes optional right to repurchase seriously delinquent government guaranteed GNMA mortgage loans previously sold as of September 30, 2022 and December 31, 2022 as a result of a prospective change in accounting estimate during the third quarter of 2022.
| FB Financial Corporation | 14 | |||||
|---|---|---|---|---|---|---|
| Preliminary Capital Ratios | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||
| (In Thousands, Except %) | ||||||
| Computation of Tangible Common Equity to Tangible Assets: | December 31, 2022 | December 31, 2021 | ||||
| Total Common Shareholders' Equity | $ | 1,325,425 | $ | 1,432,602 | ||
| Less: | ||||||
| Goodwill | 242,561 | 242,561 | ||||
| Other intangibles | 12,368 | 16,953 | ||||
| Tangible Common Equity | $ | 1,070,496 | $ | 1,173,088 | ||
| Total Assets | $ | 12,847,756 | $ | 12,597,686 | ||
| Less: | ||||||
| Goodwill | 242,561 | 242,561 | ||||
| Other intangibles | 12,368 | 16,953 | ||||
| Tangible Assets | $ | 12,592,827 | $ | 12,338,172 | ||
| Preliminary Total Risk-Weighted Assets | $ | 11,648,904 | $ | 9,904,606 | ||
| Total Common Equity to Total Assets | 10.3 | % | 11.4 | % | ||
| Tangible Common Equity to Tangible Assets* | 8.50 | % | 9.51 | % | ||
| December 31, 2022 | December 31, 2021 | |||||
| Preliminary Regulatory Capital(a): | ||||||
| Common Equity Tier 1 Capital | $ | 1,285,386 | $ | 1,221,874 | ||
| Tier 1 Capital | 1,315,386 | 1,251,874 | ||||
| Total Capital | 1,528,344 | 1,434,581 | ||||
| Preliminary Regulatory Capital Ratios: | ||||||
| Common Equity Tier 1 | 11.0 | % | 12.3 | % | ||
| Tier 1 Risk-Based | 11.3 | % | 12.6 | % | ||
| Total Risk-Based | 13.1 | % | 14.5 | % | ||
| Tier 1 Leverage | 10.5 | % | 10.5 | % |
(a) Reflects CECL transition relief of $30,676 and $40,901 add-back for the period ending December 31, 2022 and 2021 , respectively, and $35,078 and $46,771 disallowed from add-back to Tier 2 capital for the period ended December 31, 2022 and 2021, respectively.
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "Use of non-GAAP Financial Measures" and the corresponding financial tables in this Supplemental Financial Information.
| FB Financial Corporation | 15 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Investment Portfolio | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | |||||||||||||||||||
| (In Thousands, Except %) | |||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||
| Securities (at fair value) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | ||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||
| U.S. government agency securities | 3 | % | 3 | % | 3 | % | 2% | 2 | % | ||||||||||
| Mortgage-backed securities - residential | 1,034,193 | 71 | % | 1,057,763 | 72 | % | 1,164,932 | 72 | % | 1,232,256 | 73% | 1,269,372 | 76 | % | |||||
| Mortgage-backed securities -<br><br>commercial | 17,644 | 1 | % | 17,847 | 1 | % | 20,668 | 1 | % | 14,307 | 1% | 15,250 | 1 | % | |||||
| Municipals, tax exempt | 264,420 | 18 | % | 252,143 | 17 | % | 273,164 | 17 | % | 310,138 | 18% | 338,610 | 20 | % | |||||
| Treasury securities | 107,680 | 7 | % | 107,297 | 7 | % | 109,793 | 7 | % | 80,173 | 5% | 14,908 | 1 | % | |||||
| Corporate securities | 7,187 | — | % | 7,290 | — | % | 7,625 | — | % | 7,769 | 1% | 6,515 | — | % | |||||
| Total available-for-sale debt securities | 1,471,186 | 100 | % | 1,482,171 | 100 | % | 1,618,241 | 100 | % | 1,683,525 | 100% | 1,678,525 | 100 | % | |||||
| Equity securities | 2,990 | — | % | 2,962 | —% | 3,103 | —% | 3,213 | —% | 3,367 | — | % | |||||||
| Total securities | 1,474,176 | 100% | 1,485,133 | 100% | 1,621,344 | 100% | 1,686,738 | 100% | 1,681,892 | 100% | |||||||||
| Securities to total assets | 11.5 | % | 12.1 | % | 13.3 | % | 13.3 | % | 13.4 | % | |||||||||
| Unrealized (loss) gain on available-for-sale debt securities |
All values are in US Dollars.
| FB Financial Corporation | 16 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Reconciliation | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| For the Periods Ended | |||||||||
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| 2021 | |||||||||
| Adjusted net income | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||
| Income before income taxes | 48,193 | $ | 40,762 | $ | 26,070 | $ | 44,549 | $ | 62,841 |
| Plus mortgage restructuring expenses | — | 12,458 | — | — | |||||
| Less other non-operating items(1) | (387) | (2,010) | (174) | 8,499 | |||||
| Adjusted pre-tax net income | 41,149 | 40,538 | 44,723 | 54,342 | |||||
| Adjusted income tax expense | 9,032 | 10,487 | 9,358 | 11,791 | |||||
| Adjusted net income | 40,045 | $ | 32,117 | $ | 30,051 | $ | 35,365 | $ | 42,551 |
| Weighted average common shares outstanding - fully diluted | 47,024,611 | 47,211,650 | 47,723,902 | 47,896,715 | |||||
| Adjusted diluted earnings per common share | |||||||||
| Diluted earnings per common share | 0.81 | $ | 0.68 | $ | 0.41 | $ | 0.74 | $ | 1.02 |
| Plus mortgage restructuring expenses | — | 0.27 | — | — | |||||
| Less other non-operating items | — | (0.04) | — | 0.18 | |||||
| Less tax effect | — | 0.08 | — | (0.05) | |||||
| Adjusted diluted earnings per common share | 0.85 | $ | 0.68 | $ | 0.64 | $ | 0.74 | $ | 0.89 |
| (1) 4Q22 includes a 2,562 loss from change in fair value of commercial loans held for sale acquired from Franklin; 3Q22 includes a 387 loss from change in fair value of commercial loans held for sale acquired from Franklin; 2Q22 includes a 2,010 loss from change in fair value of commercial loans held for sale acquired from Franklin; 1Q22 includes a 174 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q21 includes 9,921 gain from change in fair value of commercial loans held for sale acquired from Franklin and 1,422 related to certain nonrecurring charitable contributions; | |||||||||
| 2021 | |||||||||
| Adjusted pre-tax pre-provision earnings | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||
| Income before income taxes | 48,193 | $ | 40,762 | $ | 26,070 | $ | 44,549 | $ | 62,841 |
| Plus provisions for credit losses | 11,367 | 12,318 | (4,247) | (10,769) | |||||
| Pre-tax pre-provision earnings | 52,129 | 38,388 | 40,302 | 52,072 | |||||
| Plus mortgage restructuring expenses | — | 12,458 | — | — | |||||
| Less other non-operating items | (387) | (2,010) | (174) | 8,499 | |||||
| Adjusted pre-tax pre-provision earnings | 50,299 | $ | 52,516 | $ | 52,856 | $ | 40,476 | $ | 43,573 |
All values are in US Dollars.
| FB Financial Corporation | 17 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Reconciliation (continued) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| For the Periods Ended | |||||||||
| (Unaudited) | |||||||||
| (In Thousands, Except Share Data and %) | |||||||||
| Adjusted net income | 2021 | 2020 | 2019 | 2018 | |||||
| Income before income taxes | 159,574 | $ | 243,051 | $ | 82,461 | $ | 109,539 | $ | 105,854 |
| Plus mortgage restructuring, offering, and merger and conversion expenses | 605 | 34,879 | 7,380 | 2,265 | |||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | 66,136 | — | — | |||||
| Less other non-operating items(1) | 11,032 | (4,400) | — | — | |||||
| Adjusted pre-tax net income | 232,624 | 187,876 | 116,919 | 108,119 | |||||
| Adjusted income tax expense(2) | 51,553 | 45,944 | 27,648 | 26,034 | |||||
| Adjusted net income | 137,578 | $ | 181,071 | $ | 141,932 | $ | 89,271 | $ | 82,085 |
| Weighted average common shares outstanding - fully diluted | 47,955,880 | 38,099,744 | 31,402,897 | 31,314,981 | |||||
| Adjusted diluted earnings per common share | |||||||||
| Diluted earnings per common share | 2.64 | $ | 3.97 | $ | 1.67 | $ | 2.65 | $ | 2.55 |
| Plus mortgage restructuring, offering, and merger and conversion expenses | 0.01 | 0.92 | 0.24 | 0.07 | |||||
| Plus initial provision for credit losses on acquired loans and unfunded commitments | — | 1.74 | — | — | |||||
| Less other non-operating items | 0.22 | (0.11) | — | — | |||||
| Less tax effect | (0.02) | 0.71 | 0.06 | 0.01 | |||||
| Adjusted diluted earnings per common share | 2.91 | $ | 3.78 | $ | 3.73 | $ | 2.83 | $ | 2.61 |
| (1) 2022 includes a 5,133 loss from change in fair value of commercial loans held for sale acquired from Franklin; 2021 includes a 11,172 gain from change in fair value on commercial loans held for sale acquired from Franklin, a loss on swap cancellation of 1,510, a 2,005 gain on other real estate owned, a 787 gain from lease terminations and 1,422 related to certain nonrecurring charitable contributions; 2020 includes 6,838 FHLB prepayment penalties, 1,505 losses on other real estate owned offset by 715 cash life insurance benefit and 3,228 gain from change in fair value on commercial loans held for sale acquired from Franklin. | |||||||||
| (2) 2021 includes a 1,678 tax benefit related to a change in the value of a net operating loss tax asset related to Franklin. | |||||||||
| Adjusted pre-tax pre-provision earnings | 2021 | 2020 | 2019 | 2018 | |||||
| Income before income taxes | 159,574 | $ | 243,051 | $ | 82,461 | $ | 109,539 | $ | 105,854 |
| Plus provisions for credit losses | (40,993) | 107,967 | 7,053 | 5,398 | |||||
| Pre-tax pre-provision earnings | 202,058 | 190,428 | 116,592 | 111,252 | |||||
| Plus mortgage restructuring, offering, and merger and conversion expenses | 605 | 34,879 | 7,380 | 2,265 | |||||
| Less other non-operating items | 11,032 | (4,400) | — | — | |||||
| Adjusted pre-tax pre-provision earnings | 196,147 | $ | 191,631 | $ | 229,707 | $ | 123,972 | $ | 113,517 |
All values are in US Dollars.
| FB Financial Corporation | 18 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| For the Periods Ended | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Core efficiency ratio (tax-equivalent basis) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Total noninterest expense | $ | 80,230 | $ | 81,847 | $ | 96,997 | $ | 89,272 | $ | 90,902 | ||||||||
| Less mortgage restructuring expenses | — | — | 12,458 | — | — | |||||||||||||
| Less certain charitable contributions | — | — | — | — | 1,422 | |||||||||||||
| Core noninterest expense | $ | 80,230 | $ | 81,847 | $ | 84,539 | $ | 89,272 | $ | 89,480 | ||||||||
| Net interest income (tax-equivalent basis) | $ | 111,279 | $ | 112,145 | $ | 102,926 | $ | 88,932 | $ | 90,537 | ||||||||
| Total noninterest income | 17,469 | 22,592 | 33,214 | 41,392 | 53,219 | |||||||||||||
| Less (loss) gain on change in fair value on commercial loans held for sale | (2,562) | (387) | (2,010) | (174) | 9,921 | |||||||||||||
| Less (loss) gain on sales or write-downs of other real estate owned and other assets | (252) | 429 | (8) | (434) | 187 | |||||||||||||
| Less gain (loss) from securities, net | 25 | (140) | (109) | (152) | 46 | |||||||||||||
| Core noninterest income | 20,258 | 22,690 | 35,341 | 42,152 | 43,065 | |||||||||||||
| Core revenue | $ | 131,537 | $ | 134,835 | $ | 138,267 | $ | 131,084 | $ | 133,602 | ||||||||
| Efficiency ratio (GAAP)(a) | 62.7 | % | 61.1 | % | 71.6 | % | 68.9 | % | 63.6 | % | ||||||||
| Core efficiency ratio (tax-equivalent basis) | 61.0 | % | 60.7 | % | 61.1 | % | 68.1 | % | 67.0 | % | ||||||||
| (a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue. | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Banking segment core efficiency ratio <br> (tax equivalent) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Core noninterest expense | $ | 80,230 | $ | 81,847 | $ | 84,539 | $ | 89,272 | $ | 89,480 | ||||||||
| Less Mortgage segment core noninterest expense | 13,304 | 15,961 | 25,219 | 29,688 | 30,798 | |||||||||||||
| Banking segment core noninterest expense | $ | 66,926 | $ | 65,886 | $ | 59,320 | $ | 59,584 | $ | 58,682 | ||||||||
| Banking segment net interest income (tax-equivalent <br> basis) | $ | 111,279 | $ | 112,145 | $ | 102,926 | $ | 88,934 | $ | 90,398 | ||||||||
| Core noninterest income | 20,258 | 22,690 | 35,341 | 42,152 | 43,065 | |||||||||||||
| Less Mortgage segment core noninterest income | 9,148 | 12,384 | 22,559 | 29,531 | 31,350 | |||||||||||||
| Banking segment core noninterest income | 11,110 | 10,306 | 12,782 | 12,621 | 11,715 | |||||||||||||
| Core revenue | 131,537 | 134,835 | 138,267 | 131,084 | 133,602 | |||||||||||||
| Less Mortgage segment core total revenue | 9,148 | 12,384 | 22,559 | 29,529 | 31,489 | |||||||||||||
| Banking segment core total revenue | $ | 122,389 | $ | 122,451 | $ | 115,708 | $ | 101,555 | $ | 102,113 | ||||||||
| Banking segment core efficiency ratio<br><br>(tax-equivalent basis) | 54.7 | % | 53.8 | % | 51.3 | % | 58.7 | % | 57.5 | % | ||||||||
| Mortgage segment core efficiency ratio<br><br>(tax-equivalent) | ||||||||||||||||||
| Mortgage segment noninterest expense | $ | 13,304 | $ | 15,961 | $ | 37,677 | $ | 29,688 | $ | 30,798 | ||||||||
| Less mortgage restructuring expense | — | — | 12,458 | — | — | |||||||||||||
| Mortgage segment core noninterest expense | $ | 13,304 | $ | 15,961 | $ | 25,219 | $ | 29,688 | $ | 30,798 | ||||||||
| Mortgage segment net interest income | — | — | — | (2) | 139 | |||||||||||||
| Mortgage segment noninterest income | 9,124 | 12,299 | 22,515 | 29,409 | 31,369 | |||||||||||||
| Less (loss) gain on sales or write-downs of other <br> real estate owned | (24) | (85) | (44) | (122) | 19 | |||||||||||||
| Mortgage segment core noninterest income | 9,148 | 12,384 | 22,559 | 29,531 | 31,350 | |||||||||||||
| Mortgage segment core total revenue | $ | 9,148 | $ | 12,384 | $ | 22,559 | $ | 29,529 | $ | 31,489 | ||||||||
| Mortgage segment core efficiency ratio<br><br>(tax-equivalent basis) | 145.4 | % | 128.9 | % | 111.8 | % | 100.5 | % | 97.8 | % | FB Financial Corporation | 19 | ||||||
| --- | --- | |||||||||||||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| As of or for the Periods Ended | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Adjusted Banking segment pre-tax pre-provision <br> earnings | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Banking segment pre-tax net contribution | $ | 52,373 | $ | 44,424 | $ | 41,232 | $ | 44,830 | $ | 62,131 | ||||||||
| Plus provisions for credit losses | (456) | 11,367 | 12,318 | (4,247) | (10,769) | |||||||||||||
| Banking segment pre-tax pre-provision earnings | 51,917 | 55,791 | 53,550 | 40,583 | 51,362 | |||||||||||||
| Less other non-operating items | (2,562) | (387) | (2,010) | (174) | 8,499 | |||||||||||||
| Adjusted Banking segment pre-tax pre-provision<br> earnings | $ | 54,479 | $ | 56,178 | $ | 55,560 | $ | 40,757 | $ | 42,863 | ||||||||
| 2022 | 2021 | |||||||||||||||||
| Adjusted Mortgage segment (loss) contribution | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Mortgage segment pre-tax net (loss) contribution | $ | (4,180) | $ | (3,662) | $ | (15,162) | $ | (281) | $ | 710 | ||||||||
| Plus mortgage restructuring expense | — | — | 12,458 | — | — | |||||||||||||
| Adjusted Mortgage segment pre-tax net (loss) contribution | $ | (4,180) | $ | (3,662) | $ | (2,704) | $ | (281) | $ | 710 | ||||||||
| 2022 | 2021 | |||||||||||||||||
| Tangible assets and equity | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Tangible assets | ||||||||||||||||||
| Total assets | $ | 12,847,756 | $ | 12,258,082 | $ | 12,193,862 | $ | 12,674,191 | $ | 12,597,686 | ||||||||
| Less goodwill | 242,561 | 242,561 | 242,561 | 242,561 | 242,561 | |||||||||||||
| Less intangibles, net | 12,368 | 13,407 | 14,515 | 15,709 | 16,953 | |||||||||||||
| Tangible assets | $ | 12,592,827 | $ | 12,002,114 | $ | 11,936,786 | $ | 12,415,921 | $ | 12,338,172 | ||||||||
| Tangible common equity | ||||||||||||||||||
| Total common shareholders' equity | $ | 1,325,425 | $ | 1,281,161 | $ | 1,319,852 | $ | 1,379,776 | $ | 1,432,602 | ||||||||
| Less goodwill | 242,561 | 242,561 | 242,561 | 242,561 | 242,561 | |||||||||||||
| Less intangibles, net | 12,368 | 13,407 | 14,515 | 15,709 | 16,953 | |||||||||||||
| Tangible common equity | $ | 1,070,496 | $ | 1,025,193 | $ | 1,062,776 | $ | 1,121,506 | $ | 1,173,088 | ||||||||
| Less accumulated other comprehensive (loss)<br> income, net | (169,433) | (187,440) | (120,495) | (71,544) | 5,858 | |||||||||||||
| Adjusted tangible common equity | $ | 1,239,929 | $ | 1,212,633 | $ | 1,183,271 | $ | 1,193,050 | $ | 1,167,230 | ||||||||
| Common shares outstanding | 46,737,912 | 46,926,377 | 46,881,896 | 47,487,874 | 47,549,241 | |||||||||||||
| Book value per common share | $ | 28.36 | $ | 27.30 | $ | 28.15 | $ | 29.06 | $ | 30.13 | ||||||||
| Tangible book value per common share | $ | 22.90 | $ | 21.85 | $ | 22.67 | $ | 23.62 | $ | 24.67 | ||||||||
| Adjusted tangible book value per common share | $ | 26.53 | $ | 25.84 | $ | 25.24 | $ | 25.12 | $ | 24.55 | ||||||||
| Total common shareholders' equity to total assets | 10.3 | % | 10.5 | % | 10.8 | % | 10.9 | % | 11.4 | % | ||||||||
| Tangible common equity to tangible assets | 8.50 | % | 8.54 | % | 8.90 | % | 9.03 | % | 9.51 | % | FB Financial Corporation | 20 | ||||||
| --- | --- | |||||||||||||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| For the Periods Ended | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Return on average tangible common equity | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Average common shareholders' equity | $ | 1,294,758 | $ | 1,336,143 | $ | 1,352,701 | $ | 1,415,985 | $ | 1,411,987 | ||||||||
| Less average goodwill | 242,561 | 242,561 | 242,561 | 242,561 | 242,561 | |||||||||||||
| Less average intangibles, net | 12,865 | 13,953 | 15,144 | 16,376 | 17,580 | |||||||||||||
| Average tangible common equity | $ | 1,039,332 | $ | 1,079,629 | $ | 1,094,996 | $ | 1,157,048 | $ | 1,151,846 | ||||||||
| Net income | $ | 38,143 | $ | 31,831 | $ | 19,345 | $ | 35,236 | $ | 48,827 | ||||||||
| Return on average common equity | 11.7 | % | 9.45 | % | 5.74 | % | 10.1 | % | 13.7 | % | ||||||||
| Return on average tangible common equity | 14.6 | % | 11.7 | % | 7.09 | % | 12.4 | % | 16.8 | % | ||||||||
| Adjusted net income | $ | 40,045 | $ | 32,117 | $ | 30,051 | $ | 35,365 | $ | 42,551 | ||||||||
| Adjusted return on average tangible common equity | 15.3 | % | 11.8 | % | 11.0 | % | 12.4 | % | 14.7 | % | ||||||||
| Adjusted pre-tax pre-provision earnings | $ | 50,299 | $ | 52,516 | $ | 52,856 | $ | 40,476 | $ | 43,573 | ||||||||
| Adjusted pre-tax pre-provision return on average <br> tangible common equity | 19.2 | % | 19.3 | % | 19.4 | % | 14.2 | % | 15.0 | % | ||||||||
| Return on average tangible common equity | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||
| Average common shareholders' equity | $ | 1,349,583 | $ | 1,361,637 | $ | 966,336 | $ | 723,494 | $ | 629,922 | ||||||||
| Less average goodwill | 242,561 | 242,561 | 199,104 | 160,587 | 137,190 | |||||||||||||
| Less average intangibles, net | 14,573 | 19,606 | 22,659 | 17,236 | 12,815 | |||||||||||||
| Average tangible common equity | $ | 1,092,449 | $ | 1,099,470 | $ | 744,573 | $ | 545,671 | $ | 479,917 | ||||||||
| Net income | $ | 124,555 | $ | 190,285 | $ | 63,621 | $ | 83,814 | $ | 80,236 | ||||||||
| Return on average common equity | 9.23 | % | 14.0 | % | 6.58 | % | 11.6 | % | 12.7 | % | ||||||||
| Return on average tangible common equity | 11.4 | % | 17.3 | % | 8.54 | % | 15.4 | % | 16.7 | % | ||||||||
| Adjusted net income | $ | 137,578 | $ | 181,071 | $ | 141,932 | $ | 89,271 | $ | 82,085 | ||||||||
| Adjusted return on average tangible common equity | 12.6 | % | 16.5 | % | 19.1 | % | 16.4 | % | 17.1 | % | ||||||||
| Adjusted pre-tax pre-provision earnings | $ | 196,147 | $ | 191,631 | $ | 229,707 | $ | 123,972 | $ | 113,517 | ||||||||
| Adjusted pre-tax pre-provision return on average tangible common equity | 18.0 | % | 17.4 | % | 30.9 | % | 22.7 | % | 23.7 | % | ||||||||
| 2022 | 2021 | |||||||||||||||||
| Adjusted return on average assets and equity | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | |||||||||||||
| Net income | $ | 38,143 | $ | 31,831 | $ | 19,345 | $ | 35,236 | $ | 48,827 | ||||||||
| Average assets | 12,446,027 | 12,038,115 | 12,427,479 | 12,641,489 | 12,085,817 | |||||||||||||
| Average common equity | 1,294,758 | 1,336,143 | 1,352,701 | 1,415,985 | 1,411,987 | |||||||||||||
| Return on average assets | 1.22 | % | 1.05 | % | 0.62 | % | 1.13 | % | 1.60 | % | ||||||||
| Return on average common equity | 11.7 | % | 9.45 | % | 5.74 | % | 10.1 | % | 13.7 | % | ||||||||
| Adjusted net income | $ | 40,045 | $ | 32,117 | $ | 30,051 | $ | 35,365 | $ | 42,551 | ||||||||
| Adjusted return on average assets | 1.28 | % | 1.06 | % | 0.97 | % | 1.13 | % | 1.40 | % | ||||||||
| Adjusted return on average common equity | 12.3 | % | 9.54 | % | 8.91 | % | 10.1 | % | 12.0 | % | ||||||||
| Adjusted pre-tax pre-provision earnings | $ | 50,299 | $ | 52,516 | $ | 52,856 | $ | 40,476 | $ | 43,573 | ||||||||
| Adjusted pre-tax pre-provision return on <br> average assets | 1.60 | % | 1.73 | % | 1.71 | % | 1.30 | % | 1.43 | % | ||||||||
| Adjusted pre-tax pre-provision return on <br> average common equity | 15.4 | % | 15.6 | % | 15.7 | % | 11.6 | % | 12.2 | % | FB Financial Corporation | 21 | ||||||
| --- | --- | |||||||||||||||||
| Non-GAAP Reconciliation (continued) | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| For the Periods Ended | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In Thousands, Except Share Data and %) | ||||||||||||||||||
| Adjusted return on average assets and equity | 2022 | 2021 | 2020 | 2019 | 2018 | |||||||||||||
| Net income | $ | 124,555 | $ | 190,285 | $ | 63,621 | $ | 83,814 | $ | 80,236 | ||||||||
| Average assets | 12,377,850 | 11,848,460 | 8,438,100 | 5,777,672 | 4,844,865 | |||||||||||||
| Average common equity | 1,349,583 | 1,361,637 | 966,336 | 723,494 | 629,922 | |||||||||||||
| Return on average assets | 1.01 | % | 1.61 | % | 0.75 | % | 1.45 | % | 1.66 | % | ||||||||
| Return on average common equity | 9.23 | % | 14.0 | % | 6.58 | % | 11.6 | % | 12.7 | % | ||||||||
| Adjusted net income | $ | 137,578 | $ | 181,071 | $ | 141,932 | $ | 89,271 | $ | 82,085 | ||||||||
| Adjusted return on average assets | 1.11 | % | 1.53 | % | 1.68 | % | 1.55 | % | 1.69 | % | ||||||||
| Adjusted return on average common equity | 10.2 | % | 13.3 | % | 14.7 | % | 12.3 | % | 13.0 | % | ||||||||
| Adjusted pre-tax pre-provision earnings | $ | 196,147 | $ | 191,631 | $ | 229,707 | $ | 123,972 | $ | 113,517 | ||||||||
| Adjusted pre-tax pre-provision return on average assets | 1.58 | % | 1.62 | % | 2.72 | % | 2.15 | % | 2.34 | % | ||||||||
| Adjusted pre-tax pre-provision return on average common equity | 14.5 | % | 14.1 | % | 23.8 | % | 17.1 | % | 18.0 | % | FB Financial Corporation | 22 | ||||||
| --- | --- |
fbk4q2022earningsdeck
January 17, 2023 2022 Fourth Quarter Earnings Presentation
1 Forward–Looking Statements Certain statements contained in this Presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s future plans, results, strategies, and expectations, including expectations around changing economic markets. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “project,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) changes in government interest rate policies and its impact on the Company’s business, net interest margin, and mortgage operations, (3) the Company’s ability to effectively manage problem credits, (4) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (5) difficulties and delays in integrating acquired businesses or fully realizing costs savings, revenue synergies and other benefits from future and prior acquisitions, (6) the Company’s ability to successfully execute its various business strategies, (7) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (8) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (9) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted intrusions, (10) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, (11) the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; (12) natural disasters or acts of war or terrorism, (13) international or political instability, including the impacts related to or resulting from Russia’s military action in Ukraine and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, and (14) general competitive, economic, political, and market conditions. Further information regarding the Company and factors which could affect the forward-looking statements contained herein can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in any of the Company’s subsequent filings with the SEC. Many of these factors are beyond the Company’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward- looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
2 Use of non-GAAP financial measures This Presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures may include, without limitation, adjusted net income, adjusted diluted earnings per common share, adjusted and unadjusted pre-tax pre-provision earnings, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), adjusted Banking segment pre-tax, pre-provision earnings, Banking segment core noninterest income, Mortgage segment core noninterest income, Banking segment core noninterest expense, Mortgage segment core noninterest expense, Banking segment core revenue, Mortgage segment core revenue, Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), 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 refers to these non-GAAP measures as adjusted (or core) measures. Also, the Company presents tangible assets, tangible common equity, adjusted tangible common equity, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, adjusted return on average tangible common equity, and adjusted pre-tax pre-provision return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. Adjusted tangible common equity and adjusted tangible book value also exclude the impact of net accumulated other comprehensive (loss) income. 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 the other items excluded 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 with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the corresponding non- GAAP reconciliation tables in this Presentation dated October 18, 2022, for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.
3 4Q 2022 and Annual highlights Key highlights Total deposits grew 33.7% annualized in 4Q 2022 (36.8% annualized or $914.9 million excluding mortgage escrow related deposits); FY 2022 growth of $70.9 million (excluding mortgage escrow deposits) Loans HFI grew 8.42% annualized in 4Q 2022, or $193.2 million. Company originated $125.7 million in participations sold during the quarter, which if not sold would have equated to 13.9% annualized loan growth. FY 2022 loan growth of 22.3%. Paid down wholesale borrowings by $365.0 million in 4Q 2022. Strong liquidity profile with limited wholesale borrowings. Maintained a strong ACL/loans HFI to 1.44% and recorded a net reversal in provisions for credit losses of $0.5 million including provision expense related to loans held for investment of $0.2 million and a reduction of $0.6 million in the unfunded loan commitment reserve. Adjusted Banking segment 4Q 2022 PTPP earnings1 of $54.5 million compared to $42.9 million in 4Q 2021. FY 2022 increase of 27.1%. Contractual yield on loans HFI increased by 66 basis points from 3Q 2022 to 5.45%. Mortgage segment pre-tax net loss of $4.2 million negatively impacted 4Q 2022 results. Continuing to reduce scale of mortgage operations for industry headwinds. Net charge-offs of .02% in 4Q 2022 and .02% FY 2022 Commercial Loans HFS portfolio assumed with 2020 Franklin acquisition has been reduced to $30.5 million consisting of 3 relationships. Maintaining strong capital ratios: CET1 of 11.0%, Tier 1 of 11.3%, Total Capital of 13.1% and Leverage ratio of 10.5% Financial results 1 Results are non-GAAP financial measures that adjust GAAP reported net income, total assets, equity and other metrics for certain intangibles, income and expense items as outlined in the non-GAAP reconciliation calculations, using a combined marginal income tax rate of 26.06% excluding one-time items. See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. 4Q 2022 FY 2022 Diluted earnings per share Adjusted diluted earnings per share1 $0.81 $0.85 $2.64 $2.91 Net income ($mm) Adjusted net income1 ($mm) $38.1 $40.0 $124.6 $137.6 Return on average assets Adjusted return on average assets1 1.22% 1.28% 1.01% 1.11% Return on average common equity Adjusted return on average common equity1 11.7% 12.3% 9.23% 10.2% Return on average tangible common equity1 Adjusted return on average tangible common equity1 14.6% 15.3% 11.4% 12.6% Adjusted pre-tax, pre-provision earnings1 ($mm) $50.3 $196.1 Net interest margin Positive impact of accretion and nonaccrual interest (bps) 3.78% 3 3.57% 1 Total common equity / total assets Tangible common equity / tangible assets1 10.3% 8.50% 10.3% 8.50%
4 17% 21% 31% 22% 8% 4Q21 1Q22 2Q22 3Q22 4Q22 Driving shareholder value 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. 2 Core Banking segment noninterest expense was impacted by tax credits that reduced noninterest expense by $1.4 million and $0.7 million in the second and third quarters of 2022, respectively. Adjusted Earnings per Share1 $2.61 $2.83 $3.73 $3.78 $2.91 2018 2019 2020 2021 2022 Short Term Performance Dashboard Adjusted Banking Segment PTPP1,2 Total Deposits ($bn) Annualized Loans (HFI) Growth Tangible Book Value per Share1 $17.02 $18.55 $21.73 $24.67 $22.90 $17.16 $18.16 $21.15 $24.55 $26.53 2018 2019 2020 2021 2022 TBVPS Adj. TBVPS (Ex. AOCI) Adjusted ROATCE1 22.3% FY 2022 Loans (HFI) growth 15% 12% 11% 12% 15% 4Q21 1Q22 2Q22 3Q22 4Q22 $42.9 $40.8 $55.6 $56.2 $54.5 4Q21 1Q22 2Q22 3Q22 4Q22 $10.8 $11.0 $10.5 $10.0 $10.9 4Q21 1Q22 2Q22 3Q22 4Q22
5 Strong net interest margin Historical yield and costs ¹ Includes tax-equivalent adjustment. 2 Excess liquidity defined as interest-bearing deposits with other financial institutions in excess of 5% of average tangible assets. Assumes funded from all interest bearing liabilities. $5,000 $7,000 $9,000 $11,000 $13,000 -- 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 4Q21 1Q22 2Q22 3Q22 4Q22 Av g. in te re st e ar ni ng as se ts ($ m m ) Yi el ds a nd C os ts (% ) Average interest earning assets Yield on loans Cost of deposits NIM NIM1 3.19% 3.04% 3.52% 3.93% 3.78% Impact of accretion and nonaccrual interest (bps) 0 (7) 2 5 3 Impact of excess liquidity2 (bps) (22) (29) (14) 0 0 Deposit Cost: Cost of MMDA 0.27% 0.21% 0.20% 0.73% 2.03% Cost of customer time 0.53% 0.50% 0.64% 0.87% 1.79% Cost of interest-bearing 0.30% 0.27% 0.33% 0.74% 1.67% Total deposit cost 0.22% 0.20% 0.25% 0.52% 1.20% Loans HFI Yield: Contractual interest 4.17% 4.12% 4.24% 4.79% 5.45% Origination and other loan fee income 0.33% 0.26% 0.33% 0.30% 0.18% Nonaccrual interest 0.03% 0.05% 0.03% 0.02% 0.03% (Amortization) accretion on purchased loans (0.04%) (0.12%) 0.00% 0.05% 0.01% Syndication fee income 0.00% 0.00% 0.06% 0.00% 0.00% Total loan (HFI) yield 4.49% 4.31% 4.66% 5.16% 5.67%
6 Mortgage performance in 4Q 2022 Highlights Mortgage segment pre-tax net loss of $4.2 million in 4Q 2022 Interest rate lock commitment volume declined 31% in 4Q resulting in negative fair value change Interest rate volatility led to MSR fair value changes, net of hedging losses of $4.9 million in 4Q A positive contribution to earnings is not expected in 1Q 2023 due to seasonal impact on volume; annual operating profitability is expected in 2023 Mortgage banking income ($mm) 4Q21 3Q22 4Q22 Gain on Sale $37.5 $11.1 $9.0 Fair value changes ($12.5) ($2.5) ($2.3) Servicing Revenue $7.7 $8.1 $7.3 Fair value MSR changes ($1.3) ($4.3) ($4.9) Total Income $31.4 $12.4 $9.1 2.66% 2.29% 2.43% 1.95% 3.36% 4Q21 1Q22 2Q22 3Q22 4Q22 Retail channel interest rate lock commitments ($mm) Mortgage segment gain on sale margin $451 $498 $513 $351 $239 $237 $243 $92 $58 $43 $688 $741 $605 $409 $282 4Q21 1Q22 2Q22 3Q22 4Q22 Purchase Refinance .
7 Managing expenses Highlights Consolidated 4Q 2022 core efficiency ratio¹ of 61.0% Banking segment is realizing the benefit of an asset sensitive balance sheet; however, Q4 also saw an acceleration of increasing deposit cost resulting in NIM compression Mortgage efficiency ratio remains negative due to operating losses; segment has adjusted and continues adjusting for realities of the current origination environment 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. Core efficiency ratio (tax-equivalent basis)¹ 57.5% 58.7% 51.3% 53.8% 54.7% 67.0% 68.1% 61.1% 60.7% 61.0% 97.8% 100.5% 111.8% 128.9% 145.4% 4Q21 1Q22 2Q22 3Q22 4Q22 Banking segment Consolidated Mortgage segment
8 Well-capitalized for future opportunities Tangible book value per share3 Simple capital structure Common Equity Tier 1 Capital 84% Trust Preferred 2% Subordinated Notes 6% Tier 2 ACL 8% Total regulatory capital: $1,5282 mm $11.56 $11.58 $14.56 $17.02 $18.55 $21.73 $24.67 $22.90 3Q16 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q211 3Q221 4Q221,2 Shareholder’s equity/Assets 11.4% 10.5% 10.3% TCE/TA3 9.5% 8.5% 8.5% Common equity tier 1/Risk-weighted assets 12.3% 10.9% 11.0% Tier 1 capital/Risk-weighted assets 12.6% 11.2% 11.3% Total capital/Risk-weighted assets 14.5% 13.0% 13.1% Tier 1 capital /Average assets 10.5% 10.7% 10.5% C&D loans subject to 100% tier 1 capital plus ACL4 103% 124% 119% CRE loans subject to 300% tier 1 capital plus ACL4 264% 299 % 297% Capital position 1 For regulatory capital purposes, the CECL impact over 2021 and 2022 is gradually phased-in from Common Equity Tier 1 Capital to Tier 2 capital. As of 4Q21, 3Q22 and 4Q22, respectively, $40.9 million, $30.7 million and $30.7 million are being added back to CET 1 and Tier 1 Capital, and $46.8 million, $35.1 million and $35.1 million are being taken out of Tier 2 capital. 2 Total regulatory capital, FB Financial Corporation. 4Q22 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. As of 4Q21, 3Q22 and 4Q22, respectively, $46.8 million, $35.1 million and $35.1 million are being disallowed from Tier 1 Capital for purposes of the calculation.
9 Noninterest- bearing checking 25% Interest-bearing checking 28% Money market 30% Savings 4% Time 13% 53% Checking accounts Valuable core deposit base ¹ Noninterest bearing deposits includes mortgage servicing-related deposits of $127.6 million, $131.1 million, $133.2 million, $140.8 million, and $75.6 million for the quarters ended December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022, and December 31, 2022, respectively. 2 Brokered and internet deposits made up less than 0.50% of total interest-bearing deposits for all periods shown. Total deposits1 ($mm) Cost of deposits Deposit composition $2,740 $2,788 $2,896 $2,997 $2,677 $8,097 $8,208 $7,647 $7,009 $8,179 $10,837 $10,996 $10,543 $10,006 $10,856 4Q21 1Q22 2Q22 3Q22 4Q22 Noninterest-bearing Deposits Interest-bearing Deposits 25.3% 25.4% 27.5% 29.6% 24.7% 0.22% 0.20% 0.25% 0.52% 1.20% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 4Q21 1Q22 2Q22 3Q22 4Q22 Noninterest-bearing (%) Cost of total deposits (%) 2
10 Office 23% Retail 22% Hotel 16% Warehouse / Industrial 14% Land-Manufactured Home Communities 6% Self Storage 5% Healthcare Facility 2% Other 12% 1-4 Family to be sold 47% Commercial Land 24% 1-4 Consumer Construction 8% Multifamily 7% Retail 3% Warehouse 2% Office 2% Other 7% 1-4 family 17% 1-4 family HELOC 5% Multifamily 5% C&D 18% CRE 21% C&I 30% Other 4% Balanced loan portfolio CRE2 exposure by type Portfolio mix Note: Data as of December 31, 2022 1 C&I includes owner-occupied CRE. 2 Excludes owner-occupied CRE. C&I1 exposure by industry 1 2 C&D exposure by type
11 0.46% 0.40% 0.45% 0.40% 0.41% 0.22% 0.20%0.04% 0.04% 0.01% 0.07% 0.50% 0.44% 0.46% 0.62% 0.68% 4Q21 1Q22 2Q22 3Q22 4Q22 Total NPA/Assets Commercial Loans HFS Optional GNMA repurchase Other NPAs 1.65% 1.50% 1.46% 1.48% 1.44% 4Q21 1Q22 2Q22 3Q22 4Q22 0.12% (0.03%) 0.09% 0.00% 0.02% 4Q21 1Q22 2Q22 3Q22 4Q22 Asset quality remains solid Nonperforming Assets1 / Assets Nonperforming Loans (HFI) / Loans (HFI) LLR/loans HFI Net charge-offs (recoveries) / average loans 1 Includes outstanding commercial loans held for sale acquired from Franklin. 2 Includes acquired excess land and facilities held for sale–see page 14 of the Quarterly Financial Supplement. 0.62% 0.51% 0.51% 0.47% 0.49% 4Q21 1Q22 2Q22 3Q22 4Q22 2 1
12 1.65% 1.22% 1.49% 1.32% 2.15% 2.14% 1.50% 1.54% 3.35% 1.48% 0.69% 1.17% 0.70% 2.47% 1.49% 1.64% 1.51% 3.56% 1.44% 0.67% 1.12% 0.70% 2.40% 1.35% 1.66% 1.51% 3.67% Gross Loans HFI Commercial & Industrial Non-Owner Occ CRE Owner Occ CRE Construction Multifamily 1-4 Family Mortgage 1-4 Family HELOC Consumer & Other 4Q21 3Q22 4Q22 Allowance for credit losses overview ACL / Loans HFI by Category Current Expected Credit Loss (CECL) Allowance for Credit Losses (ACL) model utilizes Moody’s model with key economic data summarized below: 1Source: Moody’s “November 2022 U.S. Macroeconomic Outlook Baseline and Alternative Scenarios”.
13 Appendix
14 GAAP reconciliation and use of non-GAAP financial measures Adjusted net income and diluted earnings per share
15 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
16 GAAP reconciliation and use of non-GAAP financial measures Adjusted earnings and diluted earnings per share
17 GAAP reconciliation and use of non-GAAP financial measures Adjusted pre-tax, pre-provision earnings
18 GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis)
19 GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis)
20 GAAP reconciliation and use of non-GAAP financial measures Adjusted Banking segment pre-tax pre-provision earnings Adjusted Mortgage segment pre-tax net (loss) contribution
21 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets
22 GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity, tangible book value per common share and tangible common equity to tangible assets
23 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
24 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity
25 GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity
26 GAAP reconciliation and use of non-GAAP financial measures Adjusted return on average assets and common equity