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 21, 2020
 
FB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Tennessee
 
001-37875
 
62-1216058
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
☐ 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common stock, $1.00 par value
FBK
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).   Emerging growth company ý
 
 
 
If  an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ý
 






Item 2.02 Results of Operations and Financial Condition.

On January 21, 2020, FB Financial Corporation (the “FB Financial”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2019 (the “Earnings Release”). In addition, the Company made available on its website (investors.firstbankonline.com) supplemental financial information for the fourth quarter ended December 31, 2019 (the “Supplemental Financial Information”) and an earnings release presentation (the “Earnings Presentation”) for use in connection with the Earnings Release. Copies of the Earnings Release, the Supplemental Financial Information and the Earnings Presentation are furnished as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3, respectively, to this current report on Form 8-K (this “Report”).

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

Item 7.01. Regulation FD Disclosure.

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

Item 9.01. Financial Statements and Exhibits.

Exhibit Number                                          Description of Exhibit






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/ James R. Gordon
 
 
James R. Gordon
 
 
Chief Financial Officer
 
 
 
Date: January 21, 2020
 
 





fb_supp.jpg
FB Financial Corporation Reports Solid 2019 Fourth Quarter Results
Reported diluted EPS of $0.68 with ROAA of 1.39% and ROATCE of 14.9%
Adjusted diluted EPS of $0.70, up 27.3% over Q4 2018, with ROAA of 1.42% and ROATCE of 15.2%

Separately Announced Strategic Merger with Franklin Financial Network, Inc.
NASHVILLE, TENNESSEE--(BUSINESS WIRE)--January 21, 2020--FB Financial Corporation (the “Company”) (NYSE: FBK), parent company of FirstBank, reported net income of $21.6 million, or $0.68 per diluted common share, for the fourth quarter of 2019, compared to net income of $17.0 million, or $0.54 per diluted common share, for the fourth quarter of 2018. On an adjusted basis, excluding merger expenses, net income per diluted common share was $0.70 for the fourth quarter of 2019 compared to $0.55 for the fourth quarter of 2018.
The Company reported net income of $83.8 million, or $2.65 per diluted common share, for the year ended December 31, 2019, compared to net income of $80.2 million, or $2.55 per diluted common share, for the year ended December 31, 2018. On an adjusted basis, excluding merger and mortgage restructuring expenses, net income per diluted common share was $2.83 for the year ended December 31, 2019, compared to $2.61 in 2018, representing an 8.43% increase.
President and Chief Executive Officer, Christopher T. Holmes stated, “Our fourth quarter results reflect the continued execution by our team and the strength of our markets. Our growth is a direct result of our continued focus on our customers across all of our markets. In addition to the solid 5.87% loan growth, the team produced strong adjusted returns on average assets of 1.42% and average tangible common equity of 15.2% for the quarter.”

Holmes further commented, “During the year, we completed the mortgage restructuring, completed the Atlantic Capital branch acquisition, and announced the merger with Farmers National Bank of Scottsville (KY). In addition to these milestone accomplishments, we had impressive organic growth, top tier profitability, good growth in tangible book value and energized associates. We are extremely excited about the future and have strong momentum as we head into 2020, including our announcement today of our proposed merger with Franklin Financial Network, Inc.”

Performance Summary
 
 
2019
 
2018
 
Annualized
 
 
(dollars in thousands, expect per share data)
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
 
4Q19 / 3Q19
% Change
 
4Q19 / 4Q18
% Change
Balance Sheet Highlights
 
 
 
 
 
 
 
 
 
 
     Investment securities
 
$
691,676

 
$
671,781

 
$
658,805

 
11.7
 %
 
4.99
 %
     Loans - held for sale
 
262,518

 
305,493

 
278,815

 
(55.8
)%
 
(5.85
)%
     Loans - held for investment (HFI)
 
4,409,642

 
4,345,344

 
3,667,511

 
5.87
 %
 
20.2
 %
     Allowance for loan losses
 
31,139

 
31,464

 
28,932

 
(4.10
)%
 
7.63
 %
     Total assets
 
6,124,921

 
6,088,895

 
5,136,764

 
2.35
 %
 
19.2
 %
     Customer deposits
 
4,914,587

 
4,896,327

 
4,068,610

 
1.48
 %
 
20.8
 %
     Brokered and internet time deposits
 
20,351

 
25,436

 
103,107

 
(79.3
)%
 
(80.3
)%
     Total deposits
 
4,934,938

 
4,921,763

 
4,171,717

 
1.06
 %
 
18.3
 %
     Borrowings
 
304,675

 
307,129

 
227,776

 
(3.17
)%
 
33.8
 %
     Total shareholders' equity
 
762,329

 
744,835

 
671,857

 
9.32
 %
 
13.5
 %
Tangible book value per
share*
 
$
18.55

 
$
18.03

 
$
17.02

 
 
 
 
Tangible common equity to
tangible assets*
 
9.69
%
 
9.45
%
 
10.5
%
 
 
 
 
* Certain measures are considered non-GAAP financial measures. See “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the
      Supplemental Financial Information, which accompanies this Earnings Release, as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release
      Presentation issued January 21, 2020 for a reconciliation and discussion of this non-GAAP measure.



FB Financial Corporation
2019 Fourth Quarter Results
Page 2

 
 
2019
 
2018
(dollars in thousands, except share data)
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Results of operations
 
 
 
 
 
 
Net interest income
 
$
57,692

 
$
58,305

 
$
51,367

      NIM
 
4.12
%
 
4.28
%
 
4.50
%
Provision for loan losses
 
$
2,950

 
$
1,831

 
$
2,200

     Net charge-off ratio
 
0.30
%
 
0.05
%
 
0.06
%
Noninterest income
 
$
35,234

 
$
38,145

 
$
27,249

     Mortgage banking income
 
$
26,176

 
$
29,193

 
$
18,997

Total revenue
 
$
92,926

 
$
96,450

 
$
78,616

Noninterest expenses
 
$
62,686

 
$
62,935

 
$
53,736

     Merger and mortgage restructuring expenses
 
$
686

 
$
407

 
$
401

     Efficiency ratio
 
67.5
%
 
65.3
%
 
68.4
%
     Core efficiency ratio*
 
66.5
%
 
64.5
%
 
67.5
%
Pre-tax income
 
$
27,290

 
$
31,684

 
$
22,680

    Total mortgage banking pre-tax contribution (loss), adjusted*
 
$
3,010

 
$
5,375

 
$
(1,784
)
Net income
 
$
21,572

 
$
23,966

 
$
17,040

Diluted earnings per share
 
$
0.68

 
$
0.76

 
$
0.54

     Effective tax rate
 
21.0
%
 
24.4
%
 
24.9
%
Net income, adjusted*
 
$
22,079

 
$
24,267

 
$
17,336

Diluted earnings per share, adjusted*
 
$
0.70

 
$
0.77

 
$
0.55

Weighted average number of shares outstanding- fully diluted
 
31,470,565

 
31,425,573

 
31,344,949

Actual shares outstanding - period end
 
31,034,315

 
30,927,664

 
30,724,532

Returns on average:
 
 
 
 
 
 
     Assets ("ROAA")
 
1.39
%
 
1.59
%
 
1.35
%
         Adjusted*
 
1.42
%
 
1.61
%
 
1.37
%
     Equity ("ROAE")
 
11.2
%
 
13.0
%
 
10.3
%
     Tangible common equity ("ROATCE")*
 
14.9
%
 
17.5
%
 
13.3
%
         Adjusted*
 
15.2
%
 
17.7
%
 
13.5
%
* Certain measures are considered non-GAAP financial measures. See "Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information, which accompanies this Earnings Release, as well as "Use of non-GAAP Financial Measures" and the Appendix in the Earnings Release Presentation issued January 21, 2020, for a reconciliation and discussion of this non-GAAP measure.

Balanced Growth
The Company grew loans (HFI) by $64.3 million to $4.41 billion during the fourth quarter of 2019, or 5.87% annualized, while average loans (HFI) increased 7.14% annualized from last quarter. Year over year loan growth was 20.2%, or 10.0% organically. Contractual loan yields decreased from 5.50% in the third quarter to 5.27% in the fourth quarter, reflecting the impact of the lower interest rate environment.
During the fourth quarter of 2019, the Company grew deposits to $4.93 billion, despite a $104.1 million decrease in mortgage escrow and wholesale/other deposits. The Company reduced its cost of deposits to 1.02% from 1.11% in the third quarter of 2019. Loans (HFI) to deposits increased to 89.4% this quarter from 88.3% last quarter.
The Company’s net interest income for the quarter was $57.7 million, representing a decrease from $58.3 million last quarter and an increase from $51.4 million for the fourth quarter of 2018. The Company’s net interest margin (“NIM”) was 4.12% for the fourth quarter of 2019, compared to 4.28% and 4.50% for the third quarter of 2019 and the fourth quarter of 2018, respectively. Accretion related to purchased loans and nonaccrual interest contributed 21 basis points to the NIM in the fourth quarter of 2019 compared to 16 and 17 basis points for the third quarter of 2019 and the fourth quarter of 2018, respectively. Overall, the NIM for the fourth quarter of 2019 was impacted by a 26 basis point decline in the yield on interest-earning assets offset by a 12 basis point decline in the rate on interest-bearing liabilities over last quarter.
James R. Gordon, Chief Financial Officer, commented, “Our margin declined as expected given the rate cuts in the third and fourth quarters. We believe the margin will stabilize over the first half of 2020 and are optimistic that we could see the margin begin to expand in the second half of 2020 as we opportunistically reprice deposits.”
Noninterest Income Benefits from Interest Rate Environment
During the quarter, the Company produced unseasonably strong results from the mortgage business driven by the lower interest rate environment. Noninterest income was $35.2 million for the fourth quarter of 2019, compared to $38.1 million for the third quarter of 2019 and $27.2 million for the fourth quarter of 2018. Mortgage banking income was $26.2 million for the fourth quarter of 2019, compared to $29.2 million for the third quarter of 2019 and $19.0 million for the fourth quarter of 2018.


FB Financial Corporation
2019 Fourth Quarter Results
Page 3

Interest rate lock commitment volume totaled $1.08 billion in the fourth quarter of 2019 compared to $1.64 billion in the third quarter of 2019 and $1.31 billion in the fourth quarter of 2018.
During the fourth quarter of 2019, the Company’s total mortgage pre-tax direct contribution was $3.0 million. This compares to the $5.4 million contribution, excluding mortgage restructuring expense of $0.1 million, in the third quarter of 2019 and a loss of $1.8 million in the fourth quarter of 2018.
Holmes commented, “Our mortgage operations are benefiting from the current interest rate environment and the strategic restructuring of the origination channels in the first half of 2019. We are comfortable with the operations at these levels and look forward to 2020.”
Noninterest Expenses
Noninterest expense was $62.7 million for the fourth quarter of 2019, compared to $62.9 million for the third quarter of 2019 and $53.7 million for the fourth quarter of 2018. On an adjusted basis, noninterest expense was $62.0 million for the fourth quarter of 2019 and $62.5 million for the third quarter of 2019.
Gordon noted, “Noninterest expenses reflect our disciplined and thoughtful approach as we continue balancing profitability with investing in our teams and infrastructure.”
Asset Quality
During the fourth quarter of 2019, the Company recognized a provision for loan losses of $3.0 million, reflecting loan growth, renewals of previously acquired loans, and net charge-offs of 0.30% of average loans. The Company's nonperforming assets increased at December 31, 2019 to 0.77% of total assets compared to 0.62% at September 30, 2019. Nonperforming loans were 0.60% of loans held for investment at December 31, 2019, compared to 0.47% at September 30, 2019.
Holmes commented, “During the quarter we experienced charge-offs of $3.6 million, largely related to a single credit that accounted for $2.6 million of the total. The remaining balance of the credit of $1.6 million was placed on nonaccrual, contributing to an increase in the balance of nonaccrual loans. The credit referenced is an isolated occurrence related to specific events with a single borrower. The underlying credit trends of our loan portfolio remain strong and we continue to see overall strengths in our markets.”
Capital Well Positioned
“Our earnings continue to provide capital for growth and the capability to continue our dividend strategy. Our current level of tangible common equity at 9.7% of tangible assets and our simple capital structure of common equity and minimal trust preferred securities, positions us well and gives us multiple capital options to take advantage of future opportunities. We remain focused on delivering strong equity returns with a 15.4% adjusted return on average tangible common equity this year, driving a 8.99% increase in tangible book value per share from last year to $18.55 at year end,” commented Gordon.
Summary
Holmes further commented, “Our results reflect the hard work of our team in balancing growth and profitability during a quarter that saw interest rates decrease. We are proud of our team and our results and look forward to a prosperous 2020.”
WEBCAST AND CONFERENCE CALL INFORMATION
FB Financial Corporation will host a conference call to discuss the company’s financial results, and the announced merger with Franklin Financial Network, Inc. at 5:00 p.m. CT on Tuesday, January 21, 2020, and the conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1631/32670. An online replay will be available approximately an hour following the conclusion of the live broadcast.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a bank holding company headquartered in Nashville, Tennessee. FB Financial Corporation operates through its wholly owned banking subsidiary, FirstBank, the third largest Tennessee-headquartered community bank, with 68 full-service bank branches across Tennessee, North Alabama and North Georgia, and mortgage offices across the Southeast. FirstBank serves five of the largest metropolitan markets in Tennessee and has approximately $6.1 billion in total assets.


FB Financial Corporation
2019 Fourth Quarter Results
Page 4

MEDIA CONTACT:
 
FINANCIAL CONTACT:
 
 
 
Jeanie M. Rittenberry
 
James R. Gordon
615-313-8328
 
615-564-1212
 
www.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 21, 2020.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part of this Earnings Release. A detailed discussion of our business segments is included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2018, and investors are encouraged to review that discussion in conjunction with this Earnings Release.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements relating to the timing, benefits, costs, and synergies of the proposed merger with Franklin Financial Network, Inc. (“Franklin”) (the “Franklin merger”) and of the proposed merger with FNB Financial Corp. (“FNB”) (together with the Franklin merger, the “mergers”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) the risk that the cost savings and any revenue synergies from the mergers or another acquisition may not be realized or may take longer than anticipated to be realized, (2) disruption from the mergers with customer, supplier, or employee relationships, (3) the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement with Franklin, (4) the failure to obtain necessary regulatory approvals for the Franklin merger, (5) the failure to obtain the approval of FB Financial and Franklin’s shareholders in connection with the Franklin merger, (6) the possibility that the costs, fees, expenses, and charges related to the mergers may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (7) the failure of the conditions to the Franklin merger to be satisfied, (8) the risks related to the integrations of the combined businesses following the mergers, including the risk that the integrations will be materially delayed or will be more costly or difficult than expected, (9) the diversion of management time on issues related to the mergers, (10) the ability of FB Financial to effectively manage the larger and more complex operations of the combined company following the mergers, (11) the risks associated with FB Financial’s pursuit of future acquisitions, (12) the risk of expansion into new geographic or product markets, (13) reputational risk and the reaction of the parties’ respective customers to the mergers, (14) FB Financial’s ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, (15) the risk of potential litigation or regulatory action related to the Franklin merger, and (16) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, its Quarterly Reports on Form 10-Q for the three-month periods ended March 31, 2019, June 30, 2019 and September 30, 2019, and its other filings with the Securities and Exchange Commission (the “SEC”).


FB Financial Corporation
2019 Fourth Quarter Results
Page 5

Many of these factors are beyond FB Financial’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this press release, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the company.

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

IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORS
In connection with the proposed merger with Franklin, FB Financial will file a registration statement on Form S-4 with the SEC. The registration statement will contain the joint proxy statement of Franklin and FB Financial to be sent to the FB Financial and Franklin shareholders seeking their approvals in connection with the merger and the issuance of FB Financial common stock in the merger. The registration statement will also contain the prospectus of FB Financial to register the shares of FB Financial common stock to be issued in connection with the merger. A definitive joint proxy statement/prospectus will also be provided to FB Financial and Franklin shareholders as required by applicable law. Investors and shareholders are encouraged to read the registration statement, including the joint proxy statement/prospectus that will be part of the registration statement, as well as any other relevant documents filed by FB Financial and Franklin with the SEC, including any amendments or supplements to the registration statement and other documents filed with the SEC, because they will contain important information about the Franklin merger, Franklin, and FB Financial. The registration statement and other documents filed with the SEC may be obtained for free on the SEC’s website (www.sec.gov). The definitive proxy statement/prospectus will also be made available for free by contacting FB Financial Corporation Investor Relations at (615) 564-1212 or [email protected], or by contacting Franklin Investor Relations at (615) 236-8327 or [email protected]. This press release does not constitute an offer to sell, the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
PARTICIPANTS IN THE SOLICITATION
FB Financial, Franklin, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from FB Financial and Franklin shareholders in connection with the proposed Franklin merger under the rules of the SEC. Information about the directors and executive officers of FB Financial may be found in the definitive proxy statement for FB Financial’s 2019 annual meeting of shareholders, filed with the SEC by FB Financial on April 16, 2019, and other documents subsequently filed by FB Financial with the SEC. Information about the directors and executive officers of Franklin may be found in the definitive proxy statement for Franklin’s 2019 annual meeting of shareholders, filed with the SEC by Franklin on April 12, 2019, and other documents subsequently filed by Franklin with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus when it becomes available. Free copies of these documents may be obtained as described in the paragraph above.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This Earnings Release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures include, without limitation, adjusted net income, adjusted diluted earnings per share, core revenue, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted mortgage contribution, adjusted return on average assets and equity and core total revenue.  Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted measures. The corresponding Supplemental Financial Information and Earnings Release Presentation also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity and adjusted return on average tangible common equity.  Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.


FB Financial Corporation
2019 Fourth Quarter Results
Page 6

The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrate the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. Investors should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the “Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in the Supplemental Financial Information as well as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings Release Presentation issued January 21, 2020, for a discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.


FB Financial Corporation
2019 Fourth Quarter Results
Page 7

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
2019
 
2018
 
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Statement of Income Data
 
 
 
 
 
 
Total interest income
 
$
71,643

 
$
73,242

 
$
63,068

Total interest expense
 
13,951

 
14,937

 
11,701

Net interest income
 
57,692

 
58,305

 
51,367

Provision for loan losses
 
2,950

 
1,831

 
2,200

Total noninterest income
 
35,234

 
38,145

 
27,249

Total noninterest expense
 
62,686

 
62,935

 
53,736

Net income before income taxes
 
27,290

 
31,684

 
22,680

Income tax expense
 
5,718

 
7,718

 
5,640

Net income
 
$
21,572

 
$
23,966

 
$
17,040

Net interest income (tax—equivalent basis)
 
$
58,212

 
$
58,769

 
$
51,799

Net income, adjusted*
 
$
22,079

 
$
24,267

 
$
17,336

Per Common Share
 
 
 

 

Diluted net income
 
$
0.68

 
$
0.76

 
$
0.54

Diluted net income, adjusted*
 
0.70

 
0.77

 
0.55

Book value
 
24.56

 
24.08

 
21.87

Tangible book value*
 
18.55

 
18.03

 
17.02

Weighted average number of shares outstanding- fully diluted
 
31,470,565

 
31,425,573

 
31,344,949

Period-end number of shares
 
31,034,315

 
30,927,664

 
30,724,532

Selected Balance Sheet Data
 
 
 
 
 
 
Cash and cash equivalents
 
$
232,681

 
$
242,997

 
$
125,356

Loans held for investment (HFI)
 
4,409,642

 
4,345,344

 
3,667,511

Allowance for loan losses
 
(31,139
)
 
(31,464
)
 
(28,932
)
Loans held for sale
 
262,518

 
305,493

 
278,815

Investment securities, at fair value
 
691,676

 
671,781

 
658,805

Other real estate owned, net
 
18,939

 
16,076

 
12,643

Total assets
 
6,124,921

 
6,088,895

 
5,136,764

Customer deposits
 
4,914,587

 
4,896,327

 
4,068,610

Brokered and internet time deposits
 
20,351

 
25,436

 
103,107

Total deposits
 
4,934,938

 
4,921,763

 
4,171,717

Borrowings
 
304,675

 
307,129

 
227,776

Total shareholders' equity
 
762,329

 
744,835

 
671,857

Selected Ratios
 
 
 
 
 
 
Return on average:
 
 
 
 
 
 
Assets
 
1.39
%
 
1.59
%
 
1.35
%
Shareholders' equity
 
11.2
%
 
13.0
%
 
10.3
%
Tangible common equity*
 
14.9
%
 
17.5
%
 
13.3
%
Average shareholders' equity to average assets
 
12.4
%
 
12.2
%
 
13.2
%
Net interest margin (NIM) (tax-equivalent basis)
 
4.12
%
 
4.28
%
 
4.50
%
Efficiency ratio (GAAP)
 
67.5
%
 
65.3
%
 
68.4
%
Core efficiency ratio (tax-equivalent basis)*
 
66.5
%
 
64.5
%
 
67.5
%
Loans HFI to deposit ratio
 
89.4
%
 
88.3
%
 
87.9
%
Total loans to deposit ratio
 
94.7
%
 
94.5
%
 
94.6
%
Yield on interest-earning assets
 
5.11
%
 
5.37
%
 
5.52
%
Cost of interest-bearing liabilities
 
1.38
%
 
1.50
%
 
1.40
%
Cost of total deposits
 
1.02
%
 
1.11
%
 
1.03
%
Credit Quality Ratios
 
 
 
 
 
 
Allowance for loan losses as a percentage of loans HFI
 
0.71
%
 
0.72
%
 
0.79
%
Net charge-offs as a percentage of average loans HFI
 
0.30
%
 
0.05
%
 
0.06
%
Nonperforming loans HFI as a percentage of total loans HFI
 
0.60
%
 
0.47
%
 
0.46
%
Nonperforming assets as a percentage of total assets
 
0.77
%
 
0.62
%
 
0.61
%
Preliminary capital ratios (Consolidated)
 
 
 
 
 
 
Shareholders' equity to assets
 
12.4
%
 
12.2
%
 
13.1
%
Tangible common equity to tangible assets*
 
9.69
%
 
9.45
%
 
10.5
%
Tier 1 capital (to average assets)
 
10.1
%
 
10.1
%
 
11.4
%
Tier 1 capital (to risk-weighted assets)
 
11.6
%
 
11.3
%
 
12.4
%
Total capital (to risk-weighted assets)
 
12.2
%
 
12.0
%
 
13.0
%
Common Equity Tier 1 (to risk-weighted assets) (CET1)
 
11.1
%
 
10.8
%
 
11.7
%
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP Financial Measures" and the corresponding financial tables
below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.


FB Financial Corporation
2019 Fourth Quarter Results
Page 8

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
2019
 
2018
Net income, adjusted
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Pre-tax net income
 
$
27,290

 
$
31,684

 
$
22,680

Plus merger and mortgage restructuring expenses
 
686

 
407

 
401

Pre-tax net income, adjusted
 
$
27,976

 
$
32,091

 
$
23,081

Income tax expense, adjusted
 
5,897

 
7,824

 
5,745

Net income, adjusted
 
$
22,079

 
$
24,267

 
$
17,336

Weighted average common shares outstanding- fully diluted
 
31,470,565
 
31,425,573
 
31,344,949
Diluted earnings per share, adjusted
 
 
 
 
 
 
Diluted earnings per common share
 
$
0.68

 
$
0.76

 
$
0.54

Plus merger and mortgage restructuring expenses
 
0.02

 
0.01

 
0.01

Less tax effect
 
—

 
—

 
—

Diluted earnings per share, adjusted
 
$
0.70

 
$
0.77

 
$
0.55

 
 
 
 
 
 
 
Net income, adjusted
 
2019
 
2018
 
2017
Pre-tax net income
 
$
109,539

 
$
105,854

 
$
73,485

Plus merger, offering, and mortgage restructuring expenses
 
7,380

 
2,265

 
19,034

Pre tax net income, adjusted
 
116,919

 
108,119

 
92,519

Income tax expense, adjusted
 
27,648

 
26,034

 
34,749

Net income, adjusted
 
$
89,271

 
$
82,085

 
$
57,770

Weighted average common shares outstanding- fully diluted
 
31,402,897

 
31,314,981

 
28,207,602

 
 
 
 
 
 
 
Diluted earnings per share, adjusted
 
 
 
 
 
 
Diluted earning per share
 
$
2.65

 
$
2.55

 
$
1.86

Plus merger, offering, and mortgage
restructuring expenses
 
0.24

 
0.07

 
0.67

Less tax effect and benefit of enacted tax laws
 
0.06

 
0.01

 
0.48

Diluted earnings per share, adjusted
 
$
2.83

 
$
2.61

 
$
2.05

 
 
 
 
 
 
 
 
 
2019
 
2018
Core efficiency ratio (tax-equivalent basis)
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Total noninterest expense
 
$
62,686

 
$
62,935

 
$
53,736

Less merger and mortgage restructuring expenses
 
686

 
407

 
401

Core noninterest expense
 
$
62,000

 
$
62,528

 
$
53,335

Net interest income (tax-equivalent basis)
 
$
58,212

 
$
58,769

 
$
51,799

Total noninterest income
 
35,234

 
38,145

 
27,249

Less gain (loss) on sales or write-downs of other
real estate owned and other assets
 
277

 
(82)
 
33
Less loss from securities, net
 
(18
)
 
(20)
 
—

Core noninterest income
 
34,975

 
38,247

 
27,216

Core revenue
 
$
93,187

 
$
97,016

 
$
79,015

Efficiency ratio (GAAP)(a)
 
67.5
%
 
65.3
%
 
68.4
%
Core efficiency ratio (tax-equivalent basis)
 
66.5
%
 
64.5
%
 
67.5
%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.


FB Financial Corporation
2019 Fourth Quarter Results
Page 9

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
2019
 
2018
Banking segment core efficiency ratio
(tax equivalent)
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Core consolidated noninterest expense
 
$
62,000

 
$
62,528

 
$
53,335

Less Mortgage segment core noninterest expense
 
14,956

 
15,686

 
16,262

Core Banking segment noninterest expense
 
$
47,044

 
$
46,842

 
$
37,073

Core revenue
 
$
93,187

 
$
97,016

 
$
79,015

Less Mortgage segment total revenue
 
16,193

 
18,455

 
13,979

Core Banking segment total revenue
 
$
76,994

 
$
78,561

 
$
65,036

Banking segment core efficiency ratio
(tax-equivalent basis)
 
61.1
%
 
59.6
%
 
57.0
%
 
 
 
 
 
 
 
Mortgage segment core efficiency ratio
(tax equivalent)
 
 
 
 
 
 
Mortgage segment noninterest expense
 
$
14,956

 
$
15,798

 
$
16,262

Less mortgage restructuring expense
 
—

 
112

 
—

Core Mortgage segment noninterest expense
 
$
14,956

 
15,686

 
16,262

Mortgage segment total revenue
 
$
16,193

 
18,455

 
13,979

Mortgage segment core efficiency ratio
(tax-equivalent basis)
 
92.4
%
 
85.0
%
 
N/A

 
 
 
 
 
 
 
 
 
 
2019
 
2018
Mortgage contribution, adjusted
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Mortgage segment pre-tax net contribution
 
$
1,237

 
$
2,657

 
$
(2,283
)
Retail footprint:
 
 
 
 
 
 
   Mortgage banking income
 
9,899

 
10,693

 
5,041

   Mortgage banking expenses
 
8,126

 
8,087

 
4,542

       Retail footprint pre-tax net contribution
 
1,773

 
2,606

 
499

Total mortgage banking pre-tax net contribution
 
$
3,010

 
$
5,263

 
$
(1,784
)
Plus mortgage restructuring expense
 
—

 
112

 
—

Total mortgage banking pre-tax net contribution, adjusted
 
$
3,010

 
$
5,375

 
$
(1,784
)
Pre-tax net income
 
$
27,290

 
$
31,684

 
$
22,680

% total mortgage banking pre-tax net contribution
 
11.0
%
 
16.6
%
 
NM

Pre-tax net income, adjusted
 
$
27,976

 
$
32,091

 
$
23,081

% total mortgage banking pre-tax net contribution,
adjusted
 
10.8
%
 
16.7
%
 
NM

 
 
 
 
 
 
 
 
 
2019
 
2018
Tangible assets and equity
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Tangible Assets
 
 
 
 
 
 
Total assets
 
$
6,124,921

 
$
6,088,895

 
$
5,136,764

Less goodwill
 
169,051

 
168,486

 
137,190

Less intangibles, net
 
17,589

 
18,748

 
11,628

Tangible assets
 
$
5,938,281

 
$
5,901,661

 
$
4,987,946

Tangible Common Equity
 
 
 
 
 
 
Total shareholders' equity
 
$
762,329

 
$
744,835

 
$
671,857

Less goodwill
 
169,051

 
168,486

 
137,190

Less intangibles, net
 
17,589

 
18,748

 
11,628

Tangible common equity
 
$
575,689

 
$
557,601

 
$
523,039

Common shares outstanding
 
31,034,315

 
30,927,664

 
30,724,532

Book value per common share
 
$
24.56

 
$
24.08

 
$
21.87

Tangible book value per common share
 
$
18.55

 
$
18.03

 
$
17.02

Total shareholders' equity to total assets
 
12.4
%
 
12.2
%
 
13.1
%
Tangible common equity to tangible assets
 
9.69
%
 
9.45
%
 
10.5
%


FB Financial Corporation
2019 Fourth Quarter Results
Page 10

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
2019
 
2018
Return on average tangible common equity
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Total average shareholders' equity
 
$
761,949

 
$
731,701

 
$
659,050

Less average goodwill
 
168,492

 
168,486

 
137,190

Less average intangibles, net
 
18,242

 
19,523

 
12,016

Average tangible common equity
 
$
575,215

 
$
543,692

 
$
509,845

Net income
 
$
21,572

 
$
23,966

 
$
17,040

Return on average tangible common equity
 
14.9
%
 
17.5
%
 
13.3
%
 
 
 
 
 
 
 
2019
 
2018
Return on average tangible common equity, adjusted
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Average tangible common equity
 
$
575,215

 
$
543,692

 
$
509,845

Net income, adjusted
 
22,079

 
24,267

 
17,336

Return on average tangible common equity, adjusted
 
15.2
%
 
17.7
%
 
13.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average tangible common equity
 
2019
 
2018
 
2017
Total average shareholders' equity
 
$
723,494

 
$
629,922

 
$
466,219

Less average goodwill
 
160,587

 
137,190

 
84,997

Less average intangibles, net
 
17,236

 
12,815

 
8,047

Average tangible common equity
 
$
545,671

 
$
479,917

 
$
373,175

Net income
 
83,814

 
80,236

 
52,398

Return on average tangible common equity
 
15.4
%
 
16.7
%
 
14.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average tangible common equity, adjusted
 
2019
 
2018
 
2017
Average tangible common equity
 
$
545,671

 
$
479,917

 
$
373,175

Net income, adjusted
 
89,271

 
82,085

 
57,770

Return on average tangible common equity, adjusted
 
16.4
%
 
17.1
%
 
15.5
%
 
 
 
 
 
 
 
 
 
2019
 
2018
Return on average assets and equity, adjusted
 
Fourth Quarter
 
Third Quarter
 
Fourth Quarter
Net income
 
$
21,572

 
$
23,966

 
$
17,040

Average assets
 
6,157,931

 
5,988,572

 
5,005,158

Average equity
 
761,949

 
731,701

 
659,050

Return on average assets
 
1.39
%
 
1.59
%
 
1.35
%
Return on average equity
 
11.2
%
 
13.0
%
 
10.3
%
Net income, adjusted
 
$
22,079

 
$
24,267

 
$
17,336

Return on average assets, adjusted
 
1.42
%
 
1.61
%
 
1.37
%
Return on average equity, adjusted
 
11.5
%
 
13.2
%
 
10.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets and equity, adjusted
 
2019
 
2018
 
2017
Net income
 
$
83,814

 
$
80,236

 
$
52,398

Average assets
 
5,777,672

 
4,844,865

 
3,811,158

Average equity
 
723,494

 
629,922

 
466,219

Return on average assets
 
1.45
%
 
1.66
%
 
1.37
%
Return on average equity
 
11.6
%
 
12.7
%
 
11.2
%
Net income, adjusted
 
$
89,271

 
$
82,085

 
$
57,770

Return on average assets, adjusted
 
1.55
%
 
1.69
%
 
1.52
%
Return on average equity, adjusted
 
12.3
%
 
13.0
%
 
12.4
%























logoa05.jpg

 
 
Fourth Quarter 2019
Financial Supplement




TABLE OF CONTENTS
 
 
Page
 
 
Financial Summary and Key Metrics
 
 
Consolidated Statements of Income
 
 
Consolidated Balance Sheets
 
 
Average Balance, Average Yield Earned and Average Rate Paid
 
 
Loans and Deposits by Market
 
 
Segment Data
 
 
Loan Portfolio and Asset Quality
 
 
Preliminary Capital Ratios
 
 
Investment Portfolio
 
 
Non-GAAP Reconciliation




Use of non-GAAP Financial Measures
 
This Supplemental Financial Information contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures include, without limitation, adjusted net income, adjusted diluted earnings per share, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted mortgage contribution, adjusted return on average assets and equity, pro forma return on average assets and equity, adjusted pro forma return on average assets and equity and core total revenue.  Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted measures. The corresponding Earnings Release and Earnings Release Presentation also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, pro forma return on average tangible common equity, adjusted return on average tangible common equity and pro forma adjusted return on average tangible common equity.  Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.
The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends.  In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies.  However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures.  The Company includes tables under the Non-GAAP reconciliation section of this document to provide a reconciliation of these measures to the most directly comparable GAAP financial measures.





Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
2019
 
2018
 
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Statement of Income Data
 
 
 
 
 
 
 
 
 
 
Total interest income
 
$
71,643

 
$
73,242

 
$
71,719

 
$
65,933

 
$
63,068

Total interest expense
 
13,951

 
14,937

 
14,696

 
12,917

 
11,701

Net interest income
 
57,692

 
58,305

 
57,023

 
53,016

 
51,367

Provision for loan losses
 
2,950

 
1,831

 
881

 
1,391

 
2,200

Total noninterest income
 
35,234

 
38,145

 
32,979

 
29,039

 
27,249

Total noninterest expense
 
62,686

 
62,935

 
64,119

 
55,101

 
53,736

Net income before income taxes
 
27,290

 
31,684

 
25,002

 
25,563

 
22,680

Income tax expense
 
5,718

 
7,718

 
6,314

 
5,975

 
5,640

Net income
 
$
21,572

 
$
23,966

 
$
18,688

 
$
19,588

 
$
17,040

Net interest income (tax—equivalent basis)
 
$
58,212

 
$
58,769

 
$
57,488

 
$
53,461

 
$
51,799

Net income, adjusted*
 
$
22,079

 
$
24,267

 
$
22,098

 
$
20,826

 
$
17,336

Per Common Share
 
 
 
 
 
 
 
 
 
 
Diluted net income
 
$
0.68

 
$
0.76

 
$
0.59

 
$
0.62

 
$
0.54

Diluted net income, adjusted*
 
0.70

 
0.77

 
0.70

 
0.66

 
0.55

Book value
 
24.56

 
24.08

 
23.29

 
22.51

 
21.87

Tangible book value*
 
18.55

 
18.03

 
17.18

 
17.73

 
17.02

Weighted average number of shares outstanding- fully diluted
 
31,470,565

 
31,425,573

 
31,378,018

 
31,349,198

 
31,344,949

Period-end number of shares
 
31,034,315

 
30,927,664

 
30,865,636

 
30,852,665

 
30,724,532

Selected Balance Sheet Data
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
232,681

 
$
242,997

 
$
164,336

 
$
195,414

 
$
125,356

Loans held for investment (HFI)
 
4,409,642

 
4,345,344

 
4,289,516

 
3,786,791

 
3,667,511

Allowance for loan losses
 
(31,139
)
 
(31,464
)
 
(30,138
)
 
(29,814
)
 
(28,932
)
Loans held for sale
 
262,518

 
305,493

 
294,699

 
248,054

 
278,815

Investment securities, at fair value
 
691,676

 
671,781

 
678,457

 
670,835

 
658,805

Other real estate owned, net
 
18,939

 
16,076

 
15,521

 
12,828

 
12,643

Total assets
 
6,124,921

 
6,088,895

 
5,940,402

 
5,335,156

 
5,136,764

Customer deposits
 
4,914,587

 
4,896,327

 
4,812,962

 
4,242,349

 
4,068,610

Brokered and internet time deposits
 
20,351

 
25,436

 
29,864

 
60,842

 
103,107

Total deposits
 
4,934,938

 
4,921,763

 
4,842,826

 
4,303,191

 
4,171,717

Borrowings
 
304,675

 
307,129

 
257,299

 
229,178

 
227,776

Total shareholders' equity
 
762,329

 
744,835

 
718,759

 
694,577

 
671,857

Selected Ratios
 
 
 
 
 
 
 
 
 
 
Return on average:
 
 
 
 
 
 
 
 
 
 
Assets
 
1.39
%
 
1.59
%
 
1.30
%
 
1.54
%
 
1.35
%
Shareholders' equity
 
11.2
%
 
13.0
%
 
10.6
%
 
11.6
%
 
10.3
%
Tangible common equity*
 
14.9
%
 
17.5
%
 
14.4
%
 
14.8
%
 
13.3
%
Average shareholders' equity to average assets
 
12.4
%
 
12.2
%
 
12.3
%
 
13.2
%
 
13.2
%
Net interest margin (NIM) (tax-equivalent basis)
 
4.12
%
 
4.28
%
 
4.39
%
 
4.61
%
 
4.50
%
Efficiency ratio (GAAP)
 
67.5
%
 
65.3
%
 
71.2
%
 
67.2
%
 
68.4
%
Core efficiency ratio (tax-equivalent basis)*
 
66.5
%
 
64.5
%
 
65.9
%
 
64.9
%
 
67.5
%
Loans HFI to deposit ratio
 
89.4
%
 
88.3
%
 
88.6
%
 
88.0
%
 
87.9
%
Total loans to deposit ratio
 
94.7
%
 
94.5
%
 
94.7
%
 
93.8
%
 
94.6
%
Yield on interest-earning assets
 
5.11
%
 
5.37
%
 
5.52
%
 
5.73
%
 
5.52
%
Cost of interest-bearing liabilities
 
1.38
%
 
1.50
%
 
1.54
%
 
1.52
%
 
1.40
%
Cost of total deposits
 
1.02
%
 
1.11
%
 
1.14
%
 
1.14
%
 
1.03
%
Credit Quality Ratios
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses as a percentage of loans HFI
 
0.71
%
 
0.72
%
 
0.70
%
 
0.79
%
 
0.79
%
Net charge-offs as a percentage of average loans HFI
 
0.30
%
 
0.05
%
 
0.05
%
 
0.06
%
 
0.06
%
Nonperforming loans HFI as a percentage of total loans HFI
 
0.60
%
 
0.47
%
 
0.43
%
 
0.41
%
 
0.46
%
Nonperforming assets as a percentage of total assets
 
0.77
%
 
0.62
%
 
0.59
%
 
0.57
%
 
0.61
%
Preliminary capital ratios (Consolidated)
 
 
 
 
 
 
 
 
 
 
Shareholders' equity to assets
 
12.4
%
 
12.2
%
 
12.1
%
 
13.0
%
 
13.1
%
Tangible common equity to tangible assets*
 
9.69
%
 
9.45
%
 
9.22
%
 
10.5
%
 
10.5
%
Tier 1 capital (to average assets)
 
10.1
%
 
10.1
%
 
10.0
%
 
11.5
%
 
11.4
%
Tier 1 capital (to risk-weighted assets)
 
11.6
%
 
11.3
%
 
11.0
%
 
12.7
%
 
12.4
%
Total capital (to risk-weighted assets)
 
12.2
%
 
12.0
%
 
11.6
%
 
13.4
%
 
13.0
%
Common Equity Tier 1 (to risk-weighted assets) (CET1)
 
11.1
%
 
10.8
%
 
10.4
%
 
12.0
%
 
11.7
%
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation
 
4



Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2019
 
Q4 2019
 
 
 
 
 
 
 
 
 
 
 
 
vs.
 
vs.
 
 
2019
 
2018
 
Q3 2019
 
Q4 2018
 
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
Percent variance
 
Percent variance
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
 
$
66,095

 
$
67,639

 
$
66,276

 
$
60,448

 
$
57,875

 
(2.28
)%
 
14.2
 %
Interest on securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
2,969
 
3,137
 
3,548
 
3,569
 
3,260

 
(5.36
)%
 
(8.93
)%
Tax-exempt
 
1,327
 
1,174
 
1,160
 
1,144
 
1,110

 
13.0
 %
 
19.5
 %
Other
 
1,252
 
1,292
 
735
 
772
 
823

 
(3.10
)%
 
52.1
 %
Total interest income
 
71,643
 
73,242
 
71,719
 
65,933
 
63,068

 
(2.18
)%
 
13.6
 %
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
12,703
 
13,522

 
13,488
 
11,855
 
10,703

 
(6.06
)%
 
18.7
 %
Borrowings
 
1,248
 
1,415

 
1,208
 
1,062
 
998

 
(11.8
)%
 
25.1
 %
Total interest expense
 
13,951
 
14,937

 
14,696
 
12,917
 
11,701

 
(6.60
)%
 
19.2
 %
Net interest income
 
57,692
 
58,305

 
57,023
 
53,016
 
51,367

 
(1.05
)%
 
12.3
 %
Provision for loan losses
 
2,950
 
1,831

 
881
 
1,391
 
2,200

 
61.1
 %
 
34.09
 %
Net interest income after
provision for loan losses
 
54,742
 
56,474

 
56,142
 
51,625
 
49,167

 
(3.07
)%
 
11.3
 %
Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
26,176
 
29,193
 
24,526
 
21,021
 
18,997

 
(10.3
)%
 
37.79
 %
Service charges on deposit accounts
 
2,657
 
2,416
 
2,327
 
2,079
 
2,286

 
9.98
 %
 
16.23
 %
ATM and interchange fees
 
3,315
 
3,188
 
3,002
 
2,656
 
2,660

 
3.98
 %
 
24.6
 %
Investment services and trust income
 
1,326
 
1,336
 
1,287
 
1,295
 
1,384

 
(0.75
)%
 
(4.19
)%
(Loss) gain from securities, net
 
(18)
 
(20)
 
52
 
43
 
—

 
(10.0
)%
 
100.0
 %
Gain (loss) on sales or write-downs of
other real estate owned
 
433
 
(126)
 
277
 
(39)
 
(56
)
 
(443.7
)%
 
(873.2
)%
(Loss) gain from other assets
 
(156)
 
44
 
(183)
 
191
 
89

 
(454.5
)%
 
(275.3
)%
Other income
 
1,501
 
2,114
 
1,691
 
1,793
 
1,889

 
(29.00
)%
 
(20.54
)%
Total noninterest income
 
35,234
 
38,145
 
32,979
 
29,039
 
27,249

 
(7.63
)%
 
29.3
 %
Total revenue
 
92,926
 
96,450
 
90,002
 
82,055
 
78,616

 
(3.65
)%
 
18.2
 %
Noninterest expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries, commissions and employee benefits
 
39,589
 
40,880
 
37,918
 
33,697
 
33,286

 
(3.16
)%
 
18.9
 %
Occupancy and equipment expense
 
3,534
 
4,058
 
4,319
 
3,730
 
3,493

 
(12.9
)%
 
1.17
 %
Legal and professional fees
 
2,074
 
1,993
 
1,694
 
1,725
 
1,978

 
4.06
 %
 
4.85
 %
Data processing
 
2,746
 
2,816
 
2,643
 
2,384
 
2,365

 
(2.49
)%
 
16.1
 %
Merger costs
 
686
 
295
 
3,783
 
621
 
401

 
132.5
 %
 
71.1
 %
Amortization of core deposits and other
intangibles
 
1,159
 
1,197
 
1,254
 
729
 
753

 
(3.17
)%
 
53.9
 %
Advertising
 
2,072
 
1,895
 
2,434
 
2,737
 
2,639

 
9.34
 %
 
(21.5
)%
Mortgage restructuring expense
 
—

 
112
 
829
 
1,054
 
—

 
(100.0
)%
 
—
 %
Other expense
 
10,826
 
9,689
 
9,245
 
8,424
 
8,821

 
11.7
 %
 
22.7
 %
Total noninterest expense
 
62,686
 
62,935
 
64,119
 
55,101
 
53,736

 
(0.40
)%
 
16.7
 %
Income before income taxes
 
27,290
 
31,684
 
25,002
 
25,563
 
22,680

 
(13.9
)%
 
20.3
 %
Income tax expense
 
5,718
 
7,718
 
6,314
 
5,975
 
5,640

 
(25.9
)%
 
1.38
 %
Net income
 
$
21,572

 
$
23,966

 
$
18,688

 
$
19,588

 
$
17,040

 
(10.0
)%
 
26.6
 %
Earnings available to common shareholders
 
$
21,458

 
$
23,838

 
$
18,588

 
$
19,483

 
$
16,949

 
 

 
 

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Basic
 
30,934,092

 
30,899,583

 
30,859,596

 
30,786,684

 
30,717,008

 
0.11
 %
 
0.71
 %
Fully diluted
 
31,470,565

 
31,425,573

 
31,378,018

 
31,349,198

 
31,344,949

 
0.14
 %
 
0.40
 %
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.69

 
$
0.77

 
$
0.60

 
$
0.63

 
$
0.55

 
(10.4
)%
 
25.5
 %
Fully diluted
 
0.68

 
0.76

 
0.59

 
0.62

 
0.54

 
(10.5
)%
 
25.9
 %
Fully diluted- adjusted*
 
0.70

 
0.77

 
0.70

 
0.66

 
0.55

 
(9.09
)%
 
27.3
 %
*These measures are considered non-GAAP financial measures. See “GAAP Reconciliation and Use of Non-GAAP Financial Measures” and the corresponding financial tables below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.



FB Financial Corporation
 
5



Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2019
 
 
For the year ended
 
vs.
 
 
December 31,
 
YTD 2018
 
 
2019
 
2018
 
Percent variance
Interest income:
 
 
 
 
 
 
Interest and fees on loans
 
$
260,458

 
$
221,001

 
17.9
 %
Interest on securities
 
 
 
 
 
 
Taxable
 
13,223

 
12,397

 
6.66
 %
Tax-exempt
 
4,805

 
4,047

 
18.7
 %
Other
 
4,051

 
2,126

 
90.5
 %
Total interest income
 
282,537

 
239,571

 
17.9
 %
Interest expense:
 
 
 
 
 
 
Deposits
 
51,568

 
29,536

 
74.6
 %
Borrowings
 
4,933

 
5,967

 
(17.3
)%
Total interest expense
 
56,501

 
35,503

 
59.1
 %
Net interest income
 
226,036

 
204,068

 
10.8
 %
Provision for loan losses
 
7,053

 
5,398

 
30.7
 %
Net interest income after provision for loan losses
 
218,983

 
198,670

 
10.2
 %
Noninterest income:
 
 
 
 
 
 
Mortgage banking income
 
100,916

 
100,661

 
0.25
 %
Service charges on deposit accounts
 
9,479

 
8,502

 
11.5
 %
ATM and interchange fees
 
12,161

 
10,013

 
21.5
 %
Investment services and trust income
 
5,244

 
5,181

 
1.22
 %
Gain (loss) from securities, net
 
57

 
(116
)
 
149.1
 %
Gain (loss) on sales or write-downs of other real estate
owned
 
545

 
(99
)
 
650.5
 %
(Loss) gain on other assets
 
(104
)
 
328

 
(131.7
)%
Other income
 
7,099

 
6,172

 
15.0
 %
Total noninterest income
 
135,397

 
130,642

 
3.64
 %
Total revenue
 
361,433

 
334,710

 
7.98
 %
Noninterest expenses:
 
 
 
 
 
 
Salaries, commissions and employee benefits
 
152,084

 
136,892

 
11.10
 %
Occupancy and equipment expense
 
15,641

 
13,976

 
11.9
 %
Legal and professional fees
 
7,486

 
7,903

 
(5.28
)%
Data processing
 
10,589

 
9,100

 
16.4
 %
Merger expense
 
5,385

 
1,594

 
237.8
 %
Amortization of core deposit and other intangibles
 
4,339

 
3,185

 
36.2
 %
Advertising
 
9,138

 
13,139

 
(30.5
)%
Mortgage restructuring expense
 
1,995

 
—

 
100.0
 %
Other expense
 
38,184

 
37,669

 
1.37
 %
Total noninterest expense
 
244,841

 
223,458

 
9.57
 %
Net income before income taxes
 
109,539

 
105,854

 
3.48
 %
Income tax expense
 
25,725

 
25,618

 
0.42
 %
Net income
 
$
83,814

 
$
80,236

 
4.46
 %
Earnings available to common shareholders
 
$
83,367

 
$
79,808

 
 

Weighted average common shares outstanding:
 
 
 
 
 
 

Basic
 
30,870,474

 
30,675,755

 
0.63
 %
Fully diluted
 
31,402,897

 
31,314,981

 
0.28
 %
Earnings per common share:
 
 
 
 
 
 
Basic
 
$
2.70

 
$
2.60

 
3.85
 %
Fully diluted
 
2.65

 
2.55

 
3.92
 %
Fully diluted- adjusted*
 
2.83

 
2.61

 
8.43
 %
*These measures are considered non-GAAP financial measures. See “GAAP Reconciliation and Use of Non-GAAP Financial Measures” and the corresponding financial tables below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation
 
6



Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except %)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2019
 
Q4 2019
 
 
 
 
 
 
 
 
 
 
 
 
vs.
 
vs.
 
 
2019
 
2018
 
Q3 2019
 
Q4 2018
 
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
 
Percent variance
 
Percent variance
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
48,806

 
$
31,594

 
$
64,458

 
$
60,253

 
$
38,381

 
216.1
 %
 
27.2
 %
Federal funds sold
 
131,119

 
50,532

 
9,781

 
6,600

 
31,364

 
632.7
 %
 
318.1
 %
Interest bearing deposits in financial institutions
 
52,756

 
160,871

 
90,097

 
128,561

 
55,611

 
(266.6
)%
 
(5.13
)%
Cash and cash equivalents
 
232,681

 
242,997

 
164,336
 
195,414
 
125,356

 
(16.8
)%
 
85.6
 %
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities, at fair value
 
688,381

 
668,531

 
675,215

 
667,654

 
655,698

 
11.8
 %
 
4.98
 %
Equity securities, at fair value
 
3,295

 
3,250

 
3,242

 
3,181

 
3,107

 
5.49
 %
 
6.05
 %
Federal Home Loan Bank stock, at cost
 
15,976

 
15,976

 
15,976

 
13,432

 
13,432

 
—
 %
 
18.9
 %
Loans held for sale, at fair value
 
262,518

 
305,493

 
294,699

 
248,054

 
278,815

 
(55.8
)%
 
(5.85
)%
Loans
 
4,409,642

 
4,345,344

 
4,289,516

 
3,786,791

 
3,667,511

 
5.87
 %
 
20.2
 %
Less: allowance for loan losses
 
31,139

 
31,464

 
30,138

 
29,814

 
28,932

 
(4.10
)%
 
7.63
 %
Net loans
 
4,378,503

 
4,313,880

 
4,259,378
 
3,756,977
 
3,638,579

 
5.94
 %
 
20.3
 %
Premises and equipment, net
 
90,131

 
91,815

 
92,407

 
87,013

 
86,882

 
(7.28
)%
 
3.74
 %
Other real estate owned, net
 
18,939

 
16,076

 
15,521

 
12,828

 
12,643

 
70.7
 %
 
49.8
 %
Operating lease right-of-use assets
 
32,539

 
34,812

 
35,872

 
32,694

 
—

 
(25.9
)%
 
100.0
 %
Interest receivable
 
17,083

 
17,729

 
17,952

 
16,611

 
14,503

 
(14.5
)%
 
17.8
 %
Mortgage servicing rights, at fair value
 
75,521

 
66,156

 
66,380

 
64,031

 
88,829

 
56.2
 %
 
(15.0
)%
Goodwill(a)
 
169,051

 
168,486

 
168,486

 
137,190

 
137,190

 
1.33
 %
 
23.2
 %
Core deposit and other intangibles, net
 
17,589

 
18,748

 
19,945

 
10,439

 
11,628

 
(24.5
)%
 
51.3
 %
Other assets
 
122,714

 
124,946

 
110,993

 
89,638

 
70,102

 
(7.09
)%
 
75.1
 %
Total assets
 
$
6,124,921

 
$
6,088,895

 
$
5,940,402

 
$
5,335,156

 
$
5,136,764

 
2.35
 %
 
19.2
 %
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
 
$
1,208,175

 
$
1,214,373

 
$
1,111,921

 
$
964,745

 
$
949,135

 
(2.02
)%
 
27.3
 %
Interest-bearing checking
 
1,014,875

 
1,029,430

 
984,847

 
937,323

 
863,706

 
(5.61
)%
 
17.5
 %
Money market and savings
 
1,520,035

 
1,481,697

 
1,468,867

 
1,257,863

 
1,239,131

 
10.3
 %
 
22.7
 %
Customer time deposits
 
1,171,502

 
1,170,827

 
1,247,327

 
1,082,418

 
1,016,638

 
0.23
 %
 
15.2
 %
Brokered and internet time deposits
 
20,351

 
25,436

 
29,864

 
60,842

 
103,107

 
(79.3
)%
 
(80.3
)%
Total deposits
 
4,934,938

 
4,921,763

 
4,842,826
 
4,303,191
 
4,171,717

 
1.06
 %
 
18.3
 %
Borrowings
 
304,675

 
307,129

 
257,299

 
229,178

 
227,776

 
(3.17
)%
 
33.8
 %
Operating lease liabilities
 
35,525

 
37,760

 
38,722

 
35,093

 
—

 
(23.5
)%
 
100.0
 %
Accrued expenses and other liabilities
 
87,454

 
77,408

 
82,796

 
73,117

 
65,414

 
51.5
 %
 
33.7
 %
Total liabilities
 
5,362,592

 
5,344,060

 
5,221,643
 
4,640,579
 
4,464,907

 
1.38
 %
 
20.1
 %
Shareholders' equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, $1 par value
 
31,034

 
30,928

 
30,866

 
30,853

 
30,725

 
1.36
 %
 
1.01
 %
Additional paid-in capital
 
425,633

 
426,816

 
425,644

 
423,647

 
424,146

 
(1.10
)%
 
0.35
 %
Retained earnings
 
293,524

 
274,491

 
253,080

 
236,947

 
221,213

 
27.5
 %
 
32.7
 %
Accumulated other comprehensive income (loss), net
 
12,138

 
12,600

 
9,169

 
3,130

 
(4,227
)
 
(14.5
)%
 
(387.2
)%
Total shareholders' equity
 
762,329

 
744,835

 
718,759
 
694,577
 
671,857

 
9.32
 %
 
13.5
 %
Total liabilities and shareholders' equity
 
$
6,124,921

 
$
6,088,895

 
$
5,940,402

 
$
5,335,156

 
$
5,136,764

 
2.35
 %
 
19.2
 %
(a) Increase of $565 attributable to finalization of purchase accounting on the Atlantic Capital branch acquisition during the fourth quarter of 2019.


FB Financial Corporation
 
7



Average Balance, Average Yield Earned and Average Rate Paid
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
 
Three Months Ended
 
Three Months Ended
 
 
December 31, 2019
 
September 30, 2019
 
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans HFI(a)
 
$
4,384,180

 
$
64,053

 
5.80
%
 
$
4,306,725

 
$
65,241

 
6.01
%
Loans held for sale
 
257,833

 
2,095

 
3.22
%
 
262,896

 
2,448

 
3.69
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
505,299

 
2,969

 
2.33
%
 
508,924

 
3,137

 
2.45
%
Tax-exempt(a)
 
181,922

 
1,794

 
3.91
%
 
153,633

 
1,588

 
4.10
%
Total securities(a)
 
687,221

 
4,763

 
2.75
%
 
662,557

 
4,725

 
2.83
%
Federal funds sold
 
69,749

 
301

 
1.71
%
 
24,388

 
166

 
2.70
%
Interest-bearing deposits with other financial institutions
 
185,319

 
790

 
1.69
%
 
176,708

 
950

 
2.13
%
FHLB stock
 
15,976

 
161

 
4.00
%
 
15,976

 
176

 
4.37
%
Total interest-earning assets(a)
 
5,600,278

 
72,163

 
5.11
%
 
5,449,250

 
73,706

 
5.37
%
Noninterest-earning assets:
 
 

 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
49,318

 
 
 
 
 
51,433

 
 
 
 
Allowance for loan losses
 
(31,631
)
 
 
 
 
 
(30,484
)
 
 
 
 
Other assets
 
539,966

 
 
 
 
 
518,373

 
 
 
 
Total noninterest-earning assets
 
557,653

 
 
 
 
 
539,322

 
 
 
 
Total assets
 
$
6,157,931

 
 
 
 
 
$
5,988,572

 
 
 
 
Interest-bearing liabilities:
 
 

 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 

 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
 
$
981,572

 
$
2,068

 
0.84
%
 
$
971,686

 
$
2,338

 
0.95
%
Money market
 
1,320,268

 
4,309

 
1.29
%
 
1,260,555

 
4,607

 
1.45
%
Savings deposits
 
210,550

 
79

 
0.15
%
 
207,221

 
78

 
0.15
%
Customer time deposits
 
1,175,467

 
6,133

 
2.07
%
 
1,184,737

 
6,362

 
2.13
%
Brokered and internet time deposits
 
23,219

 
114

 
1.95
%
 
28,273

 
137

 
1.92
%
       Time deposits
 
1,198,686

 
6,247

 
2.07
%
 
1,213,010

 
6,499

 
2.13
%
Total interest-bearing deposits
 
3,711,076

 
12,703

 
1.36
%
 
3,652,472

 
13,522

 
1.47
%
Other interest-bearing liabilities:
 
 

 
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase and
federal funds purchased
 
27,610

 
59

 
0.85
%
 
30,585

 
80

 
1.04
%
Federal Home Loan Bank advances
 
250,000

 
788

 
1.25
%
 
248,315

 
918

 
1.47
%
Subordinated debt
 
30,930

 
401

 
5.14
%
 
30,930

 
417

 
5.35
%
Total other interest-bearing liabilities
 
308,540

 
1,248

 
1.60
%
 
309,830

 
1,415

 
1.81
%
Total interest-bearing liabilities
 
4,019,616

 
13,951

 
1.38
%
 
3,962,302

 
14,937

 
1.50
%
Noninterest-bearing liabilities:
 
 

 
 
 
 
 
 
 
 
 
 
Demand deposits
 
1,253,311

 
 
 
 
 
1,180,685

 
 
 
 
Other liabilities
 
123,055

 
 
 
 
 
113,884

 
 
 
 
Total noninterest-bearing liabilities
 
1,376,366

 
 
 
 
 
1,294,569

 
 
 
 
Total liabilities
 
5,395,982

 
 
 
 
 
5,256,871

 
 
 
 
Shareholders' equity
 
761,949

 
 
 
 
 
731,701

 
 
 
 
Total liabilities and shareholders' equity
 
$
6,157,931

 
 
 
 
 
$
5,988,572

 
 
 
 
Net interest income(a)
 
 

 
$
58,212

 
 
 
 
 
$
58,769

 
 
Interest rate spread(a)
 
 

 
 

 
3.74
%
 
 
 
 
 
3.87
%
Net interest margin(a)
 
 

 
 

 
4.12
%
 
 
 
 
 
4.28
%
Cost of total deposits
 
 

 
 

 
1.02
%
 
 
 
 
 
1.11
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
 
139.3
%
 
 
 
 
 
137.5
%
Tax-equivalent adjustment
 
 

 
$
520

 
 
 
 
 
$
464

 
 
Loans HFI yield components:
 
 

 
 

 
 
 
 
 
 
 
 
    Contractual interest rate(a)
 
 

 
$
58,219

 
5.27
%
 
 
 
$
59,645

 
5.50
%
    Origination and other loan fee income
 
 
 
2,863

 
0.26
%
 
 
 
3,293

 
0.30
%
    Accretion on purchased loans
 
 

 
2,526

 
0.23
%
 
 
 
2,102

 
0.19
%
    Nonaccrual interest
 
 

 
439

 
0.04
%
 
 
 
201

 
0.02
%
    Syndication fee income
 
 

 
6

 
—
%
 
 
 
—

 
—
%
          Total loans HFI yield
 
 

 
$
64,053

 
5.80
%
 
 
 
$
65,241

 
6.01
%
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.







FB Financial Corporation
 
8



Average Balance, Average Yield Earned and Average Rate Paid
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans HFI(a)
 
4,177,701

 
63,262

 
6.07
%
 
$
3,720,739

 
$
58,137

 
6.34
%
 
$
3,559,587

 
$
54,858

 
6.11
%
Loans held for sale
 
281,252

 
3,070

 
4.38
%
 
216,227

 
2,353

 
4.41
%
 
260,763

 
3,058

 
4.65
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
532,500

 
3,548

 
2.67
%
 
518,504

 
3,569

 
2.79
%
 
487,843

 
3,260

 
2.65
%
Tax-exempt(a)
 
146,282

 
1,569

 
4.30
%
 
138,847

 
1,547

 
4.52
%
 
130,465

 
1,501

 
4.56
%
Total securities(a)
 
678,782
 
5,117
 
3.02
%
 
657,351

 
5,116

 
3.16
%
 
618,308

 
4,761

 
3.05
%
Federal funds sold
 
12,219

 
88

 
2.89
%
 
18,392

 
123

 
2.71
%
 
27,835

 
160

 
2.28
%
Interest-bearing deposits with other financial
institutions
 
81,540

 
465

 
2.29
%
 
75,291

 
446

 
2.40
%
 
86,421

 
464

 
2.13
%
FHLB stock
 
15,165

 
182

 
4.81
%
 
13,432

 
203

 
6.13
%
 
13,432

 
199

 
5.88
%
Total interest-earning assets(a)
 
5,246,659
 
72,184
 
5.52
%
 
4,701,432

 
66,378

 
5.73
%
 
4,566,346

 
63,500

 
5.52
%
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
54,659

 
 
 
 
 
50,218

 
 
 
 
 
53,067

 
 
 
 
Allowance for loan losses
 
(30,092
)
 
 
 
 
 
(29,537
)
 
 
 
 
 
(27,369
)
 
 
 
 
Other assets
 
500,145

 
 
 
 
 
452,805

 
 
 
 
 
413,114

 
 
 
 
Total noninterest-earning assets
 
524,712
 
 
 
 
 
473,486

 
 
 
 
 
438,812

 
 
 
 
Total assets
 
5,771,371

 
 
 
 
 
$
5,174,918

 
 
 
 
 
$
5,005,158

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Interest-bearing checking
 
968,081

 
2,295

 
0.95
%
 
$
878,167

 
$
2,054

 
0.95
%
 
$
828,507

 
$
1,870

 
0.90
%
    Money market
 
1,221,450

 
4,508

 
1.48
%
 
1,073,170

 
3,956

 
1.49
%
 
1,058,172

 
3,568

 
1.34
%
    Savings deposits
 
203,602

 
76

 
0.15
%
 
176,305

 
68

 
0.16
%
 
174,199

 
67

 
0.15
%
    Customer time deposits
 
1,185,451

 
6,299

 
2.13
%
 
1,053,958

 
5,309

 
2.04
%
 
983,204

 
4,649

 
1.88
%
    Brokered and internet time deposits
 
56,242

 
310

 
2.21
%
 
93,434

 
468

 
2.03
%
 
107,129

 
549

 
2.03
%
       Time deposits
 
1,241,693
 
6,609
 
2.13
%
 
1,147,392

 
5,777

 
2.04
%
 
1,090,333

 
5,198

 
1.89
%
Total interest-bearing deposits
 
3,634,826
 
13,488
 
1.49
%
 
3,275,034

 
11,855

 
1.47
%
 
3,151,211

 
10,703

 
1.35
%
Other interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Securities sold under agreements to
   repurchase and federal funds purchased
 
31,905

 
117

 
1.47
%
 
15,319

 
35

 
0.93
%
 
18,378

 
29

 
0.63
%
    Federal Home Loan Bank advances
 
131,726

 
664

 
2.02
%
 
117,875

 
634

 
2.18
%
 
106,468

 
554

 
2.06
%
    Subordinated debt
 
30,930

 
427

 
5.54
%
 
30,930

 
393

 
5.15
%
 
30,930

 
415

 
5.32
%
Total other interest-bearing liabilities
 
194,561
 
1,208
 
2.49
%
 
164,124

 
1,062

 
2.62
%
 
155,776

 
998

 
2.54
%
Total interest-bearing liabilities
 
3,829,387
 
14,696
 
1.54
%
 
3,439,158

 
12,917

 
1.52
%
 
3,306,987

 
11,701

 
1.40
%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
 
1,128,311

 
 
 
 
 
955,156

 
 
 
 
 
987,127

 
 
 
 
Other liabilities
 
105,116

 
 
 
 
 
96,059

 
 
 
 
 
51,994

 
 
 
 
Total noninterest-bearing liabilities
 
1,233,427
 
 
 
 
 
1,051,215

 
 
 
 
 
1,039,121

 
 
 
 
Total liabilities
 
5,062,814
 
 
 
 
 
4,490,373

 
 
 
 
 
4,346,108

 
 
 
 
Shareholders' equity
 
708,557

 
 
 
 
 
684,545

 
 
 
 
 
659,050

 
 
 
 
Total liabilities and shareholders' equity
 
5,771,371

 
 
 
 
 
$
5,174,918

 
 
 
 
 
$
5,005,158

 
 
 
 
Net interest income(a)
 
 
 
57,488

 
 
 
 
 
$
53,461

 
 
 
 
 
$
51,799

 
 
Interest rate spread(a)
 
 
 
 
 
3.98
%
 
 
 
 
 
4.21
%
 
 
 
 
 
4.11
%
Net interest margin(a)
 
 
 
 
 
4.39
%
 
 
 
 
 
4.61
%
 
 
 
 
 
4.50
%
Cost of total deposits
 
 
 
 
 
1.14
%
 
 
 
 
 
1.14
%
 
 
 
 
 
1.03
%
Average interest-earning assets to average
interest-bearing liabilities
 
 
 
 
 
137.0
%
 
 
 
 
 
136.7
%
 
 
 
 
 
138.1
%
Tax-equivalent adjustment
 
 
 
465

 
 
 
 
 
$
445

 
 
 
 
 
$
432

 
 
Loans HFI yield components:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Contractual interest rate(a)
 
 
 
58,028
 
5.57
%
 
 
 
$
52,177

 
5.69
%
 
 
 
$
49,873

 
5.56
%
    Origination and other loan fee income
 
 
 
2,981
 
0.29
%
 
 
 
3,840

 
0.42
%
 
 
 
2,998

 
0.33
%
    Accretion on purchased loans
 
 
 
2,097
 
0.20
%
 
 
 
1,831

 
0.20
%
 
 
 
1,863

 
0.21
%
    Nonaccrual interest
 
 
 
156
 
0.01
%
 
 
 
89

 
0.01
%
 
 
 
96

 
0.01
%
    Syndication fee income
 
 
 
—

 
—
%
 
 
 
200

 
0.02
%
 
 
 
28

 
—
%
          Total loans HFI yield
 
 
 
63,262
 
6.07
%
 
 
 
$
58,137

 
6.34
%
 
 
 
$
54,858

 
6.11
%
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.



FB Financial Corporation
 
9



Average Balance, Average Yield Earned and Average Rate Paid
For the Years Ended
(Unaudited)
(In Thousands, Except %)
 
 

 

 
 
December 31, 2019
 
December 31, 2018
 
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
 
Average
balances
 
Interest
income/
expense
 
Average
yield/
rate
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans HFI(a)
 
$
4,149,590

 
$
250,693

 
6.04
%
 
$
3,376,203

 
$
205,543

 
6.09
%
Loans held for sale
 
254,689

 
9,966

 
3.91
%
 
352,370

 
15,632

 
4.44
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
516,250

 
13,223

 
2.56
%
 
478,034

 
12,397

 
2.59
%
Tax-exempt(a)
 
155,306

 
6,498

 
4.18
%
 
119,295

 
5,473

 
4.59
%
Total securities(a)
 
671,556

 
19,721

 
2.94
%
 
597,329

 
17,870

 
2.99
%
Federal funds sold
 
31,309

 
678

 
2.17
%
 
21,466

 
412

 
1.92
%
Interest-bearing deposits with other financial
institutions
 
130,145

 
2,651

 
2.04
%
 
49,549

 
998

 
2.01
%
FHLB stock
 
15,146

 
722

 
4.77
%
 
12,742

 
716

 
5.62
%
Total interest-earning assets(a)
 
5,252,435

 
284,431

 
5.42
%
 
4,409,659

 
241,171

 
5.47
%
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
51,194

 
 
 
 
 
49,410

 
 
 
 
Allowance for loan losses
 
(30,442
)
 
 
 
 
 
(25,747
)
 
 
 
 
Other assets
 
504,485

 
 
 
 
 
411,543

 
 
 
 
Total noninterest-earning assets
 
525,237

 
 
 
 
 
435,206

 
 
 
 
Total assets
 
$
5,777,672

 
 
 
 
 
$
4,844,865

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
    Interest-bearing checking
 
$
950,219

 
$
8,755

 
0.92
%
 
$
894,252

 
$
6,488

 
0.73
%
    Money market
 
1,219,652

 
17,380

 
1.42
%
 
1,027,047

 
10,895

 
1.06
%
    Savings deposits
 
199,535

 
301

 
0.15
%
 
178,303

 
272

 
0.15
%
    Customer time deposits
 
1,155,058

 
24,103

 
2.09
%
 
744,834

 
10,409

 
1.40
%
    Brokered and internet time deposits
 
45,313

 
1,029

 
2.27
%
 
82,113

 
1,472

 
1.79
%
       Time deposits
 
1,200,371

 
25,132

 
2.09
%
 
826,947

 
11,881

 
1.44
%
Total interest-bearing deposits
 
3,569,777

 
51,568

 
1.44
%
 
2,926,549

 
29,536

 
1.01
%
Other interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
    Securities sold under agreements to repurchase and
federal funds purchased
 
26,400

 
291

 
1.10
%
 
19,528

 
150

 
0.77
%
    Federal Home Loan Bank advances
 
187,509

 
3,004

 
1.60
%
 
216,011

 
4,166

 
1.93
%
    Subordinated debt
 
30,930

 
1,638

 
5.30
%
 
30,930

 
1,651

 
5.34
%
Total other interest-bearing liabilities
 
244,839

 
4,933

 
2.01
%
 
266,469

 
5,967

 
2.24
%
Total interest-bearing liabilities
 
3,814,616

 
56,501

 
1.48
%
 
3,193,018

 
35,503

 
1.11
%
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
 
1,130,113

 
 
 
 
 
967,663

 
 
 
 
Other liabilities
 
109,449

 
 
 
 
 
54,262

 
 
 
 
Total noninterest-bearing liabilities
 
1,239,562

 
 
 
 
 
1,021,925

 
 
 
 
Total liabilities
 
5,054,178

 
 
 
 
 
4,214,943

 
 
 
 
Shareholders' equity
 
723,494

 
 
 
 
 
629,922

 
 
 
 
Total liabilities and shareholders' equity
 
$
5,777,672

 
 
 
 
 
$
4,844,865

 
 
 
 
Net interest income(a)
 
 
 
$
227,930

 
 
 
 
 
$
205,668

 
 
Interest rate spread(a)
 
 
 
 
 
3.94
%
 
 
 
 
 
4.36
%
Net interest margin(a)
 
 
 
 
 
4.34
%
 
 
 
 
 
4.66
%
Cost of total deposits
 
 
 
 
 
1.10
%
 
 
 
 
 
0.76
%
Average interest-earning assets to average interest-
bearing liabilities
 
 
 
 
 
137.7
%
 
 
 
 
 
138.1
%
Tax equivalent adjustment
 
 

 
$
1,894

 
 

 
 
 
$
1,600

 
 
Loans HFI yield components:
 
 

 
 

 
 

 
 
 
 
 
 
    Contractual interest rate(a)
 
 

 
$
228,069

 
5.50
%
 
 
 
$
183,116

 
5.42
%
    Origination and other loan fee income
 
 
 
12,977

 
0.31
%
 
 
 
13,093

 
0.39
%
    Accretion on purchased loans
 
 

 
8,556

 
0.21
%
 
 
 
7,608

 
0.23
%
    Nonaccrual interest
 
 

 
885

 
0.02
%
 
 
 
1,375

 
0.04
%
    Syndication fee income
 
 

 
206

 
—
%
 
 
 
351

 
0.01
%
          Total loans HFI yield
 
 

 
$
250,693

 
6.04
%
 
 
 
$
205,543

 
6.09
%
(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060% .

FB Financial Corporation
 
10



Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands)
 
 
 
 
 
 
 
 
 
2019
 
2018
 
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Loans by market
 
 
 
 
 
 
 
 
 
 
Metropolitan
 
$
3,061,183

 
$
3,011,118

 
$
2,970,794

 
$
2,516,582

 
$
2,413,674

Community
 
817,380

 
802,923

 
803,306

 
784,671

 
788,619

Specialty lending and other
 
531,079

 
531,303

 
515,416

 
485,538

 
465,218

Total
 
$
4,409,642

 
$
4,345,344

 
$
4,289,516

 
$
3,786,791

 
$
3,667,511

Deposits by market
 
 
 
 
 
 
 
 
 
 
Metropolitan
 
$
2,963,524

 
$
2,869,049

 
$
2,794,977

 
$
2,350,421

 
$
2,283,983

Community
 
1,642,949

 
1,620,153

 
1,612,885

 
1,482,877

 
1,451,494

Mortgage and other(a)
 
328,465

 
432,561

 
434,964

 
469,893

 
436,240

Total
 
$
4,934,938

 
$
4,921,763

 
$
4,842,826

 
$
4,303,191

 
$
4,171,717

(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 %)
 
 
 
 
 
 
 
 
 
2019
 
2018
 
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Banking segment
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
57,776

 
$
58,350

 
$
56,979

 
$
52,993

 
$
51,344

Provision for loan losses
 
2,950

 
1,831

 
881

 
1,391

 
2,200

Mortgage banking income retail footprint
 
9,899

 
10,693

 
5,451

 
4,386

 
5,041

Other noninterest income
 
9,058

 
8,952

 
8,453

 
8,018

 
8,252

Other noninterest mortgage banking expenses
 
8,126

 
8,087

 
4,172

 
2,831

 
4,542

Merger expense
 
686

 
295

 
3,783

 
621

 
401

Other noninterest expense
 
38,918

 
38,755

 
37,500

 
33,109

 
32,531

Pre-tax income after allocations
 
$
26,053

 
$
29,027

 
$
24,547

 
$
27,445

 
$
24,963

Total assets
 
$
5,795,888

 
$
5,730,492

 
$
5,552,893

 
$
4,987,744

 
$
4,752,111

Intracompany funding income included in net interest income
 
2,460

 
2,875

 
3,290
 
2,558
 
3,035

Core efficiency ratio*
 
61.1
%
 
59.6
%
 
58.5
%
 
54.7
%
 
57.0
%
Mortgage segment
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
(84
)
 
$
(45
)
 
$
44

 
$
23

 
$
23

Noninterest income
 
16,277

 
18,500

 
19,075

 
16,635

 
13,956

Mortgage restructuring expense
 
—

 
112

 
829

 
1,054

 
—

Noninterest expense
 
14,956

 
15,686

 
17,835

 
17,486

 
16,262

Direct (loss) contribution
 
$
1,237

 
$
2,657

 
$
455

 
$
(1,882
)
 
$
(2,283
)
Total assets
 
$
329,033

 
$
358,403

 
$
387,509

 
$
347,412

 
$
384,653

Intracompany funding expense included in net interest income
 
2,460

 
2,875

 
3,290

 
2,558

 
3,035

Core efficiency ratio*
 
92.4
%
 
85.0
%
 
93.3
%
 
N/A

 
N/A

Interest rate lock commitments volume during the period
 
 
 
 
 
 
 
 
 
 
Consumer direct
 
$
679,096

 
$
973,142

 
$
805,970

 
$
521,603

 
$
463,669

Third party origination (TPO)
 
—

 
—

 
156,844

 
170,529

 
168,139

Retail
 
402,490

 
503,861

 
407,007

 
291,800

 
242,059

Correspondent
 
—

 
159,263

 
450,529

 
380,854

 
437,482

Total
 
$
1,081,586

 
$
1,636,266

 
$
1,820,350

 
$
1,364,786

 
$
1,311,349

Interest rate lock commitments pipeline (period end)
 
 
 
 
 
 
 
 
 
 
Consumer direct
 
$
348,389

 
$
519,698

 
$
397,150

 
$
235,505

 
$
147,297

Third party origination (TPO)
 
—

 
—

 
—

 
73,218

 
53,080

Retail
 
104,809

 
159,826

 
135,655

 
110,480

 
70,389

Correspondent
 
—

 
—

 
75,925

 
73,304

 
47,940

Total
 
$
453,198

 
$
679,524

 
$
608,730

 
$
492,507

 
$
318,706

Mortgage sales
 
 
 
 
 
 
 
 
 
 
Consumer direct
 
$
718,624

 
$
588,535

 
$
428,886

 
$
287,720

 
$
421,897

Third party origination (TPO)
 
—

 
31,015

 
129,511

 
118,563

 
145,385

Retail
 
120,487

 
94,735

 
81,849

 
59,084

 
63,261

Retail footprint
 
266,328

 
256,060

 
205,698

 
146,312

 
168,554

Reverse
 
—

 
—

 
704

 
4,111

 
7,262

Correspondent
 
652

 
253,640

 
412,014

 
350,435

 
424,717

Total
 
$
1,106,091

 
$
1,223,985

 
$
1,258,662

 
$
966,225

 
$
1,231,076

Gains and fees from origination and sale of mortgage
loans held for sale
 
$
31,807

 
$
28,020

 
$
20,976

 
$
15,907

 
$
21,483

Net change in fair value of loans
held for sale, derivatives, and other
 
(4,328
)
 
2,304

 
3,298

 
2,244

 
(4,623
)
Mortgage servicing income
 
4,914

 
3,960

 
4,052

 
4,751

 
4,618

Change in fair value of mortgage
servicing rights, net of hedging
 
(6,217
)
 
(5,091
)
 
(3,800)
 
(1,881)
 
(2,481
)
Total mortgage banking income
 
$
26,176

 
$
29,193

 
$
24,526

 
$
21,021

 
$
18,997

Mortgage sale margin(a)
 
2.88
%
 
2.29
%
 
1.67
%
 
1.65
%
 
1.75
%
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures for a reconciliation and discussion of this non-GAAP measure.
(a) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.

FB Financial Corporation
 
12



Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
 
2019
 
2018
 
 
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
 
$
1,034,036

 
23
%
 
$
997,921

 
23
%
 
$
989,288

 
23
%
 
$
888,345

 
23
%
 
$
867,083

 
24
%
Construction
 
551,101

 
13
%
 
537,784

 
12
%
 
525,954

 
12
%
 
539,065

 
14
%
 
556,051

 
15
%
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1-to-4 family mortgage
 
710,724

 
16
%
 
710,077

 
17
%
 
688,984

 
16
%
 
552,239

 
15
%
 
555,815

 
16
%
Residential line of credit
 
221,530

 
5
%
 
215,493

 
5
%
 
218,006

 
5
%
 
187,415

 
5
%
 
190,480

 
5
%
Multi-family mortgage
 
69,429

 
2
%
 
80,352

 
2
%
 
82,945

 
2
%
 
71,532

 
2
%
 
75,457

 
2
%
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
630,270

 
14
%
 
620,635

 
14
%
 
602,723

 
14
%
 
499,123

 
13
%
 
493,524

 
13
%
Non-owner occupied
 
920,744

 
21
%
 
914,502

 
21
%
 
922,150

 
22
%
 
816,880

 
22
%
 
700,248

 
19
%
Consumer and other
 
271,808

 
6
%
 
268,580

 
6
%
 
259,466

 
6
%
 
232,192

 
6
%
 
228,853

 
6
%
Total loans HFI
 
$
4,409,642

 
100
%
 
$
4,345,344

 
100
%
 
$
4,289,516

 
100
%
 
$
3,786,791

 
100
%
 
$
3,667,511

 
100
%
Allowance for loan losses rollforward summary
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Allowance for loan losses at the
beginning of the period
 
$
31,464

 
 

 
$
30,138

 
 
 
$
29,814

 
 
 
$
28,932

 
 
 
$
27,608

 
 

Charge-offs
 
(3,594
)
 
 

 
(717
)
 
 
 
(770
)
 
 
 
(871
)
 
 
 
(806
)
 
 

Recoveries
 
319

 
 

 
212

 
 
 
213

 
 
 
362

 
 
 
279

 
 

Provision for loan losses
 
2,950

 
 

 
1,831

 
 
 
881

 
 
 
1,391

 
 
 
2,200

 
 

Adjustment for transfers to loans HFS
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
 
(349
)
 
 
Allowance for loan losses at the end of
the period
 
$
31,139

 
 

 
$
31,464

 
 
 
$
30,138

 
 
 
$
29,814

 
 
 
$
28,932

 
 

Allowance for loan losses as a
percentage of total loans HFI
 
0.71
%
 
 

 
0.72
%
 
 
 
0.70
%
 
 
 
0.79
%
 
 
 
0.79
%
 
 

Charge-offs
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Commercial and Industrial
 
$
(2,669
)
 
 

 
$
(3
)
 
 
 
$
(79
)
 
 
 
$
(179
)
 
 
 
$
(340
)
 
 

Construction
 
—

 
 

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 

Residential real estate:
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1-to-4 family mortgage
 
(138
)
 
 

 
—

 
 
 
(1
)
 
 
 
(81
)
 
 
 
(69
)
 
 

Residential line of credit
 
(4
)
 
 

 
(170
)
 
 
 
(103
)
 
 
 
(32
)
 
 
 
(3
)
 
 

Multi-family mortgage
 
—

 
 

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 

Commercial real estate:
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Owner occupied
 
—

 
 

 
—

 
 
 
—

 
 
 
—

 
 
 
(36
)
 
 

Non-owner occupied
 
—

 
 

 
(12
)
 
 
 
—

 
 
 
—

 
 
 
—

 
 

Consumer and other
 
(783
)
 
 

 
(532
)
 
 
 
(587
)
 
 
 
(579
)
 
 
 
(358
)
 
 

Total charge-offs
 
(3,594
)
 
 

 
(717
)
 
 
 
(770
)
 
 
 
(871
)
 
 
 
(806
)
 
 

Recoveries
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Commercial and Industrial
 
70

 
 

 
16

 
 
 
38

 
 
 
12

 
 
 
16

 
 

Construction
 
3

 
 

 
1

 
 
 
6

 
 
 
1

 
 
 
37

 
 

Residential real estate:
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1-to-4 family mortgage
 
17

 
 

 
25

 
 
 
24

 
 
 
13

 
 
 
14

 
 

Residential line of credit
 
17

 
 

 
75

 
 
 
21

 
 
 
25

 
 
 
76

 
 

Multi-family mortgage
 
—

 
 

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 

Commercial real estate:
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Owner occupied
 
13

 
 

 
3

 
 
 
5

 
 
 
87

 
 
 
2

 
 

Non-owner occupied
 
—

 
 

 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 

Consumer and other
 
199

 
 

 
92

 
 
 
119

 
 
 
224

 
 
 
134

 
 

Total recoveries
 
319

 
 

 
212

 
 
 
213

 
 
 
362

 
 
 
279

 
 

Net charge-offs
 
$
(3,275
)
 
 

 
$
(505
)
 
 
 
$
(557
)
 
 
 
$
(509
)
 
 
 
$
(527
)
 
 

Net charge-offs as a percentage of
average total loans
 
0.30
%
 
 

 
0.05
%
 
 
 
0.05
%
 
 
 
0.06
%
 
 
 
0.06
%
 
 

Loans classified as substandard
 
$
80,346

 
 

 
$
78,881

 
 
 
$
68,828

 
 
 
$
60,746

 
 
 
$
66,487

 
 

Purchased credit impaired loans
 
57,152

 
 

 
63,069

 
 
 
67,450

 
 
 
62,564

 
 
 
68,999

 
 


FB Financial Corporation
 
13



Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
2018
 
 
Fourth Quarter
 
 
 
Third Quarter
 
 
 
Second Quarter
 
 
 
First Quarter
 
 
 
Fourth Quarter
 
 
Nonperforming assets(a)(b)
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Past due 90 days or more and accruing
interest
 
$
5,543

 
 

 
$
2,452

 
 
 
$
2,100

 
 
 
$
1,885

 
 
 
$
3,041

 
 

Nonaccrual
 
21,062

 
 

 
17,911

 
 
 
16,135

 
 
 
13,721

 
 
 
13,685

 
 

Total nonperforming loans held for
investment
 
26,605

 
 

 
20,363

 
 
 
18,235

 
 
 
15,606

 
 
 
16,726

 
 

Loans held for sale
 
—

 
 

 
—

 
 
 
—

 
 
 
196

 
 
 
397

 
 

Other real estate owned:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreclosed
 
9,983

 
 

 
8,771

 
 
 
7,830

 
 
 
7,447

 
 
 
7,262

 
 

Excess land and facilities
 
8,956

 
 

 
7,305

 
 
 
7,691

 
 
 
5,381

 
 
 
5,381

 
 

Other assets
 
1,580

 
 

 
1,519

 
 
 
1,499

 
 
 
1,779

 
 
 
1,637

 
 

Total nonperforming assets
 
$
47,124

 
 

 
$
37,958

 
 
 
$
35,255

 
 
 
$
30,409

 
 
 
$
31,403

 
 

Total nonperforming loans as a
percentage of loans held for
investment
 
0.60
%
 
 

 
0.47
%
 
 
 
0.43
%
 
 
 
0.41
%
 
 
 
0.46
%
 
 

Total nonperforming assets as a
percentage of total assets
 
0.77
%
 
 

 
0.62
%
 
 
 
0.59
%
 
 
 
0.57
%
 
 
 
0.61
%
 
 

Total accruing loans over 90 days
delinquent as a percentage
of total assets
 
0.09
%
 
 

 
0.04
%
 
 
 
0.04
%
 
 
 
0.04
%
 
 
 
0.06
%
 
 

Loans restructured as troubled debt
restructurings
 
$
12,206

 
 

 
$
11,460

 
 
 
$
8,714

 
 
 
$
8,953

 
 
 
$
6,794

 
 

Troubled debt restructurings as a
percentage of loans held for
investment
 
0.28
%
 
 

 
0.26
%
 
 
 
0.20
%
 
 
 
0.24
%
 
 
 
0.19
%
 
 

(a) Nonperforming assets excludes purchase credit impaired loans.
(b) Nonperforming assets includes guaranteed repurchased loans previously sold of $2.7 million, $2.6 million, $1.5 million, $3.4 million, and $1.3 million for the quarters ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.


FB Financial Corporation
 
14



Preliminary Capital Ratios
(Unaudited)
(In Thousands, Except %)
 
 
 
 
 
Computation of Tangible Common Equity to Tangible Assets:
 
December 31, 2019
 
December 31, 2018
 
 
 
 
 
Total Equity
 
$
762,329

 
$
671,857

Less:
 
 
 
 
    Goodwill
 
169,051

 
137,190

    Other intangibles
 
17,589

 
11,628

Tangible Common Equity
 
$
575,689

 
$
523,039

 
 
 
 
 
Total Assets
 
$
6,124,921

 
$
5,136,764

Less:
 
 
 
 
    Goodwill
 
169,051

 
137,190

    Other intangibles
 
17,589

 
11,628

Tangible Assets
 
$
5,938,281

 
$
4,987,946

 
 
 
 
 
Preliminary Total Risk-Weighted Assets
 
$
5,172,450

 
$
4,480,921

 
 
 
 
 
Total Common Equity to Total Assets
 
12.4
%
 
13.1
%
Tangible Common Equity to Tangible Assets*
 
9.69
%
 
10.5
%
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
December 31, 2018
Preliminary Regulatory Capital:
 
 

 
 
    Common Equity Tier 1 Capital
 
$
572,410

 
$
524,013

    Tier 1 Capital
 
602,410

 
554,013

    Total Capital
 
633,549

 
582,945

 
 
 
 
 
Preliminary Regulatory Capital Ratios:
 
 
 
 
    Common Equity Tier 1
 
11.1
%
 
11.7
%
    Tier 1 Risk-Based
 
11.6
%
 
12.4
%
    Total Risk-Based
 
12.2
%
 
13.0
%
    Tier 1 Leverage
 
10.1
%
 
11.4
%
*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP financial measures" and the corresponding financial tables below for a reconciliation and discussion of these non-GAAP measures.


FB Financial Corporation
 
15



Investment Portfolio
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
 
 
 
 
2019
 
2018
Securities (at fair value)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Available-for-sale debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency securities
 
$
—

 
—
%
 
$
999

 
—
%
 
$
996

 
—
%
 
$
993

 
—
%
 
$
989

 
—
%
Mortgage-backed securities -
residential
 
490,676

 
71
%
 
485,300

 
72
%
 
517,505

 
77
%
 
511,716

 
77
%
 
508,580

 
78
%
Municipals, tax exempt
 
189,235

 
27
%
 
173,785

 
26
%
 
149,305

 
22
%
 
147,640

 
22
%
 
138,887

 
21
%
Treasury securities
 
7,448

 
1
%
 
7,432

 
1
%
 
7,409

 
1
%
 
7,305

 
1
%
 
7,242

 
1
%
Corporate securities
 
1,022

 
—
%
 
1,015

 
—
%
 
—

 
—
%
 
—

 
—
%
 
—

 
—
%
Total available-for-sale debt
securities
 
688,381

 
99
%
 
668,531

 
99
%
 
675,215
 
100
%
 
667,654
 
100
%
 
655,698

 
100
%
Equity securities
 
3,295

 
1
%
 
3,250

 
1
%
 
3,242

 
—
%
 
3,181

 
—
%
 
3,107

 
—
%
Total securities
 
$
691,676

 
100
%
 
$
671,781

 
100
%
 
$
678,457

 
100
%
 
$
670,835

 
100
%
 
$
658,805

 
100
%
Securities to total assets
 
11.3
%
 
 

 
11.0
%
 
 
 
11.4
%
 
 
 
12.6
%
 
 
 
12.8
%
 
 


FB Financial Corporation
 
16



Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
2019
 
2018
Net income, adjusted
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
First Quarter
 
Fourth Quarter
Pre-tax net income
 
$
27,290

 
$
31,684

 
$
25,002

25,563
 
$
22,680

Plus merger and mortgage restructuring expenses
 
686

 
407

 
4,612

1,675
 
401

Pre-tax net income, adjusted
 
27,976

 
32,091

 
29,614

27,238

 
23,081

Income tax expense, adjusted
 
5,897

 
7,824

 
7,516

6,412
 
5,745

Net income, adjusted
 
$
22,079

 
24,267

 
$
22,098

20,826
 
$
17,336

Weighted average common shares outstanding-
fully diluted
 
31,470,565
 
31,425,573

 
31,378,018
31,349,198
 
31,344,949
Diluted earnings per share, adjusted
 
 
 
 
 
 
 
 
 
Diluted earnings per common share
 
$
0.68

 
$
0.76

 
$
0.59

0.62

 
$
0.54

Plus merger and mortgage restructuring expenses
 
0.02

 
0.01

 
0.15

0.05
 
0.01

Less tax effect
 
—

 
—

 
0.04

0.01

 
—

Diluted earnings per share, adjusted
 
$
0.70

 
0.77

 
$
0.70

$
0.66

 
$
0.55

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma net income, adjusted*
 
2019
 
2018
 
2017
2016
 
2015
Pre-tax net income
 
$
109,539

 
$
105,854

 
$
73,485

$
62,324

 
$
50,824

Plus merger, conversion, offering, and mortgage
restructuring expenses
 
7,380

 
2,265

 
19,034

3,268

 
3,543

Less significant (losses) gains on securities, other
   real estate owned and other items
 
—

 
—

 
—

(3,539
)
 
4,638

Pre tax net income, adjusted
 
116,919

 
108,119

 
92,519

69,131

 
49,729

Pro forma income tax expense, adjusted
 
27,648

 
26,034

 
34,749

25,404

 
18,425

Pro forma net income, adjusted
 
$
89,271

 
$
82,085

 
$
57,770

$
43,727

 
$
31,304

Weighted average common shares outstanding-
    fully diluted
 
31,402,897

 
31,314,981

 
28,207,602

19,312,174

 
17,180,000

 
 
 
 
 
 
 
 
 
 
Pro forma diluted earnings per share, adjusted*
 
 
 
 
 
 
 
 
 
Diluted earning per share
 
$
2.65

 
$
2.55

 
$
1.86

$
2.10

 
$
2.79

Plus merger, conversion, offering, and mortgage
restructuring expenses
 
0.24

 
0.07

 
0.67

0.17

 
0.21

Less significant (losses) gains on securities, other
   real estate owned and other items
 
—

 
—

 
—

(0.18
)
 
0.27

Less tax effect and benefit of enacted tax laws
 
0.06

 
0.01

 
0.48

0.19

 
0.91

Pro forma diluted earnings per share, adjusted
 
$
2.83

 
$
2.61

 
$
2.05

$
2.26

 
1.82

 *Prior to the IPO in the third quarter of 2016, the Company was an S corporation and did not incur federal income taxes. In conjunction with the IPO, the Company converted to a C corporation. These results are on a pro forma basis to reflect the results of the Company on a C corporation basis and combined effective tax rates of 35.08% and 36.75% for the years ended December 31, 2015 and 2016, respectively.

FB Financial Corporation
 
17



Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
2019
 
2018
Core efficiency ratio (tax-equivalent basis)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Total noninterest expense
 
$
62,686

 
$
62,935

 
$
64,119

 
$
55,101

 
$
53,736

Less merger and mortgage restructuring expenses
 
686

 
407

 
4,612

 
1,675

 
401

Core noninterest expense
 
$
62,000

 
$
62,528

 
$
59,507

 
$
53,426

 
$
53,335

Net interest income (tax-equivalent basis)
 
$
58,212

 
$
58,769

 
$
57,488

 
$
53,461

 
$
51,799

Total noninterest income
 
35,234

 
38,145

 
32,979

 
29,039

 
27,249

Less gain (loss) on sales or write-downs of other
real estate owned and other assets
 
277

 
(82
)
 
94

 
152

 
33

Less (loss) gain from securities, net
 
(18
)
 
(20
)
 
52

 
43

 
—

Core noninterest income
 
34,975

 
38,247

 
32,833

 
28,844

 
27,216

Core revenue
 
$
93,187

 
$
97,016

 
$
90,321

 
$
82,305

 
$
79,015

Efficiency ratio (GAAP)(a)
 
67.5
%
 
65.3
%
 
71.2
%
 
67.2
%
 
68.4
%
Core efficiency ratio (tax-equivalent basis)
 
66.5
%
 
64.5
%
 
65.9
%
 
64.9
%
 
67.5
%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
 
 
 
 
 
2019
 
2018
Banking segment core efficiency ratio
(tax equivalent)
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Core consolidated noninterest expense
 
$
62,000

 
$
62,528

 
$
59,507

 
$
53,426

 
$
53,335

Less Mortgage segment core noninterest expense
 
14,956

 
15,686

 
17,835

 
17,486

 
16,262

Core Banking segment noninterest expense
 
$
47,044

 
$
46,842

 
$
41,672

 
$
35,940

 
$
37,073

Core revenue
 
$
93,187

 
$
97,016

 
$
90,321

 
$
82,305

 
$
79,015

Less Mortgage segment total revenue
 
16,193

 
18,455

 
19,119

 
16,658

 
13,979

Core Banking segment total revenue
 
$
76,994

 
$
78,561

 
$
71,202

 
$
65,647

 
$
65,036

Banking segment core efficiency ratio
(tax-equivalent basis)
 
61.1
%
 
59.6
%
 
58.5
%
 
54.7
%
 
57.0
%
 
 
 
 
 
 
 
 
 
 
 
Mortgage segment core efficiency ratio
(tax equivalent)
 
 
 
 
 
 
 
 
 
 
Mortgage segment noninterest expense
 
$
14,956

 
$
15,798

 
$
18,664

 
$
18,540

 
$
16,262

Less mortgage restructuring expense
 
—

 
112

 
829

 
1,054

 
—

Core Mortgage segment noninterest expense
 
$
14,956

 
$
15,686

 
$
17,835

 
$
17,486

 
$
16,262

Mortgage segment total revenue
 
$
16,193

 
$
18,455

 
$
19,119

 
$
16,658

 
$
13,979

Mortgage segment core efficiency ratio
(tax-equivalent basis)
 
92.4
%
 
85.0
%
 
93.3
%
 
N/A

 
N/A


FB Financial Corporation
 
18



Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
Mortgage contribution, adjusted
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Mortgage segment pre-tax net contribution
 
$
1,237

 
$
2,657

 
$
455

 
$
(1,882
)
 
$
(2,283
)
Retail footprint:
 
 
 
 
 
 
 
 
 
 
   Mortgage banking income
 
9,899

 
10,693

 
5,451

 
4,386

 
5,041

   Mortgage banking expenses
 
8,126

 
8,087

 
4,172

 
2,831

 
4,542

       Retail footprint pre-tax net contribution
 
1,773

 
2,606

 
1,279

 
1,555

 
499

Total mortgage banking pre-tax net (loss)
   contribution
 
$
3,010

 
$
5,263

 
$
1,734

 
$
(327
)
 
$
(1,784
)
Plus mortgage restructuring expense
 
—

 
112

 
829

 
1,054

 
—

Total mortgage banking pre-tax net contribution
   (loss), adjusted
 
$
3,010

 
$
5,375

 
$
2,563

 
$
727

 
$
(1,784
)
Pre-tax net income
 
$
27,290

 
$
31,684

 
$
25,002

 
$
25,563

 
$
22,680

% total mortgage banking pre-tax net contribution
 
11.0
%
 
16.6
%
 
6.94
%
 
NM

 
NM

Pre-tax net income, adjusted
 
$
27,976

 
$
32,091

 
$
29,614

 
$
27,238

 
$
23,081

% total mortgage banking pre-tax net
   contribution, adjusted
 
10.8
%
 
16.7
%
 
8.65
%
 
2.67
%
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
Tangible assets and equity
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Tangible Assets
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
6,124,921

 
$
6,088,895

 
$
5,940,402

 
$
5,335,156

 
$
5,136,764

Less goodwill
 
169,051

 
168,486

 
168,486

 
137,190

 
137,190

Less intangibles, net
 
17,589

 
18,748

 
19,945

 
10,439

 
11,628

Tangible assets
 
$
5,938,281

 
$
5,901,661

 
$
5,751,971

 
$
5,187,527

 
$
4,987,946

Tangible Common Equity
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
 
$
762,329

 
$
744,835

 
$
718,759

 
$
694,577

 
$
671,857

Less goodwill
 
169,051

 
168,486

 
168,486

 
137,190

 
137,190

Less intangibles, net
 
17,589

 
18,748

 
19,945

 
10,439

 
11,628

Tangible common equity
 
$
575,689

 
$
557,601

 
$
530,328

 
$
546,948

 
$
523,039

Common shares outstanding
 
31,034,315

 
30,927,664

 
30,865,636

 
30,852,665

 
30,724,532

Book value per common share
 
$
24.56

 
$
24.08

 
$
23.29

 
$
22.51

 
$
21.87

Tangible book value per common share
 
$
18.55

 
$
18.03

 
$
17.18

 
$
17.73

 
$
17.02

Total shareholders' equity to total assets
 
12.4
%
 
12.2
%
 
12.1
%
 
13.0
%
 
13.1
%
Tangible common equity to tangible assets
 
9.69
%
 
9.45
%
 
9.22
%
 
10.5
%
 
10.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
Return on average tangible common equity
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Total average shareholders' equity
 
$
761,949

 
$
731,701

 
$
708,557

 
$
684,545

 
$
659,050

Less average goodwill
 
168,492

 
168,486

 
167,781

 
137,190

 
137,190

Less average intangibles, net
 
18,242

 
19,523

 
20,214

 
10,856

 
12,016

Average tangible common equity
 
$
575,215

 
$
543,692

 
$
520,562

 
$
536,499

 
$
509,845

Net income
 
$
21,572

 
$
23,966

 
$
18,688

 
$
19,588

 
$
17,040

Return on average tangible common equity
 
14.9
%
 
17.5
%
 
14.4
%
 
14.8
%
 
13.3
%


FB Financial Corporation
 
19



Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
 
2019
 
2018
Return on average tangible common equity,
   adjusted
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Average tangible common equity
 
$
575,215

 
$
543,692

 
$
520,562

 
$
536,499

 
$
509,845

Net income, adjusted
 
22,079

 
24,267

 
22,098

 
20,826

 
17,336

Return on average tangible common equity,
   adjusted
 
15.2
%
 
17.7
%
 
17.0
%
 
15.7
%
 
13.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma return on average tangible common
   equity
 
2019
 
2018
 
2017
 
2016
 
2015
Total average shareholders' equity
 
$
723,494

 
$
629,922

 
$
466,219

 
$
276,587

 
$
228,844

Less average goodwill
 
160,587

 
137,190

 
84,997

 
46,867

 
46,904

Less average intangibles, net
 
17,236

 
12,815

 
8,047

 
5,353

 
5,095

Average tangible common equity
 
$
545,671

 
$
479,917

 
$
373,175

 
$
224,367

 
$
176,845

Pro forma net income
 
$
83,814

 
$
80,236

 
$
52,398

 
$
39,422

 
$
32,995

Pro forma return on average tangible common
   equity
 
15.4
%
 
16.7
%
 
14.0
%
 
17.6
%
 
18.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma return on average tangible common
   equity, adjusted
 
2019
 
2018
 
2017
 
2016
 
2015
Average tangible common equity
 
$
545,671

 
$
479,917

 
$
373,175

 
$
224,367

 
$
176,845

Pro forma net income, adjusted
 
89,271

 
82,085

 
57,770

 
43,727

 
31,304

Pro forma return on average tangible common
   equity, adjusted
 
16.4
%
 
17.1
%
 
15.5
%
 
19.5
%
 
17.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
Return on average assets and equity, adjusted
 
Fourth Quarter
 
Third Quarter
 
Second Quarter
 
First Quarter
 
Fourth Quarter
Net income
 
$
21,572

 
$
23,966

 
$
18,688

 
$
19,588

 
$
17,040

Average assets
 
6,157,931

 
5,988,572

 
5,771,371

 
5,174,918

 
5,005,158

Average equity
 
761,949

 
731,701

 
708,557

 
684,545

 
659,050

Return on average assets
 
1.39
%
 
1.59
%
 
1.30
%
 
1.54
%
 
1.35
%
Return on average equity
 
11.2
%
 
13.0
%
 
10.6
%
 
11.6
%
 
10.3
%
Net income, adjusted
 
$
22,079

 
$
24,267

 
$
22,098

 
$
20,826

 
$
17,336

Return on average assets, adjusted
 
1.42
%
 
1.61
%
 
1.54
%
 
1.63
%
 
1.37
%
Return on average equity, adjusted
 
11.5
%
 
13.2
%
 
12.5
%
 
12.3
%
 
10.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma return on average assets and equity,
   adjusted
 
2019
 
2018
 
2017
 
2016
 
2015
Pro forma net income
 
$
83,814

 
$
80,236

 
$
52,398

 
$
39,422

 
$
32,995

Average assets
 
5,777,672

 
4,844,865

 
3,811,158

 
3,001,275

 
2,577,895

Average equity
 
723,494

 
629,922

 
466,219

 
276,587

 
228,844

Pro forma return on average assets
 
1.45
%
 
1.66
%
 
1.37
%
 
1.31
%
 
1.28
%
Pro forma return on average equity
 
11.6
%
 
12.7
%
 
11.2
%
 
14.3
%
 
14.4
%
Pro forma net income, adjusted
 
$
89,271

 
$
82,085

 
$
57,770

 
$
43,727

 
$
31,304

Pro forma return on average assets, adjusted
 
1.55
%
 
1.69
%
 
1.52
%
 
1.46
%
 
1.21
%
Pro forma return on average equity, adjusted
 
12.3
%
 
13.0
%
 
12.4
%
 
15.8
%
 
13.7
%

FB Financial Corporation
 
20
2019 Fourth Quarter and Annual Earnings Presentation January 21, 2020

 
IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORS In connection with the proposed merger with Franklin, FB Financial will file a registration statement on Form S-4 with the SEC. The registration statement will contain the joint proxy statement of Franklin and FB Financial to be sent to the FB Financial and Franklin shareholders seeking their approvals in connection with the merger and the issuance of FB Financial common stock in the merger. The registration statement will also contain the prospectus of FB Financial to register the shares of FB Financial common stock to be issued in connection with the merger. A definitive joint proxy statement/prospectus will also be provided to FB Financial and Franklin shareholders as required by applicable law. Investors and shareholders are encouraged to read the registration statement, including the joint proxy statement/prospectus that will be part of the registration statement, as well as any other relevant documents filed by FB Financial and Franklin with the SEC, including any amendments or supplements to the registration statement and other documents filed with the SEC, because they will contain important information about the Franklin merger, Franklin, and FB Financial. The registration statement and other documents filed with the SEC may be obtained for free on the SEC’s website (www.sec.gov). The definitive proxy statement/prospectus will also be made available for free by contacting FB Financial Corporation Investor Relations at (615) 564-1212 or [email protected], or by contacting Franklin Investor Relations at (615) 236-8327 or [email protected]. This press release does not constitute an offer to sell, the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. PARTICIPANTS IN THE SOLICITATION FB Financial, Franklin, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from FB Financial and Franklin shareholders in connection with the proposed Franklin merger under the rules of the SEC. Information about the directors and executive officers of FB Financial may be found in the definitive proxy statement for FB Financial’s 2019 annual meeting of shareholders, filed with the SEC by FB Financial on April 16, 2019, and other documents subsequently filed by FB Financial with the SEC. Information about the directors and executive officers of Franklin may be found in the definitive proxy statement for Franklin’s 2019 annual meeting of shareholders, filed with the SEC by Franklin on April 12, 2019, and other documents subsequently filed by Franklin with the SEC. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus when it becomes available. Free copies of these documents may be obtained as described in the paragraph above. 1

 
Forward–Looking Statements Certain statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements relating to the timing, benefits, costs, and synergies of the proposed merger with Franklin Financial Network, Inc. (“Franklin”) (the “Franklin merger”) and of the proposed merger with FNB Financial Corp. (“FNB”) (together with the Franklin merger, the “mergers”), and FB Financial’s future plans, results, strategies, and expectations. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” “projection,” and other variations of such words and phrases and similar expressions. These forward- looking statements are not historical facts, and are based upon current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond FB Financial’s control. The inclusion of these forward-looking statements should not be regarded as a representation by FB Financial or any other person that such expectations, estimates, and projections will be achieved. Accordingly, FB Financial cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) the risk that the cost savings and any revenue synergies from the mergers or another acquisition may not be realized or may take longer than anticipated to be realized, (2) disruption from the mergers with customer, supplier, or employee relationships, (3) the occurrence of any event, change, or other circumstances that could give rise to the termination of the merger agreement with Franklin, (4) the failure to obtain necessary regulatory approvals for the Franklin merger, (5) the failure to obtain the approval of FB Financial and Franklin’s shareholders in connection with the Franklin merger, (6) the possibility that the costs, fees, expenses, and charges related to the mergers may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities, (7) the failure of the conditions to the Franklin merger to be satisfied, (8) the risks related to the integrations of the combined businesses following the mergers, including the risk that the integrations will be materially delayed or will be more costly or difficult than expected, (9) the diversion of management time on issues related to the mergers, (10) the ability of FB Financial to effectively manage the larger and more complex operations of the combined company following the mergers, (11) the risks associated with FB Financial’s pursuit of future acquisitions, (12) the risk of expansion into new geographic or product markets, (13) reputational risk and the reaction of the parties’ respective customers to the mergers, (14) FB Financial’s ability to successful execute its various business strategies, including its ability to execute on potential acquisition opportunities, (15) the risk of potential litigation or regulatory action related to the Franklin merger, and (16) general competitive, economic, political, and market conditions. Further information regarding FB Financial and factors which could affect the forward-looking statements contained herein can be found in FB Financial's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, its Quarterly Reports on Form 10-Q for the three-month periods ended March 31, 2019, June 30, 2019 and September 30, 2019, and its other filings with the Securities and Exchange Commission (the “SEC”). Many of these factors are beyond FB Financial’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this press release, and FB Financial undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for FB Financial to predict their occurrence or how they will affect the company. FB Financial qualifies all forward-looking statements by these cautionary statements. 2

 
Use of non-GAAP financial measures This presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non‐GAAP financial measures include, without limitation, adjusted net income, adjusted diluted earnings per share, adjusted pro forma net income, adjusted pro forma diluted earnings per share, core noninterest expense, core revenue, core noninterest income, core efficiency ratio (tax-equivalent basis), banking segment core efficiency ratio (tax-equivalent basis), mortgage segment core efficiency ratio (tax- efficiency basis), adjusted mortgage contribution, adjusted return on average assets and equity, pro forma return on average assets and equity, and pro form adjusted 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. The corresponding Earnings Release also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, and adjusted return on average tangible common equity. Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends. In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. The following tables provide a reconciliation of these measures to the most directly comparable GAAP financial measures. 3

 
4Q 2019 and annual highlights Key highlights Financial results 1 ◼ Adjusted diluted EPS of $0.70 and $2.83 for 4Q 2019 and 2019, 4Q19 FY 2019 respectively, resulting in – Adjusted ROAA1 of 1.42% for 4Q 2019 and 1.55% for 2019 Diluted earnings per share $0.68 $2.65 Adjusted diluted earnings per share¹ $0.70 $2.83 – Adjusted ROATCE1 of 15.2% for 4Q 2019 and 16.4% for 2019 ◼ Loans (HFI) grew to $4.41 bn, a 20.2% increase from 4Q 2018 Net income ($mm) $21.6 $83.8 – Year-over-year organic growth of 10.0% Adjusted net income¹ ($mm) $22.1 $89.3 – 4Q 2019 annualized growth of 5.9% Net interest margin 4.12% 4.34% ◼ Customer deposits grew to $4.91 bn, a 20.8% increase from Impact of accretion and nonaccrual 21 18 4Q 2018 interest (bps) – Year-over-year organic growth of 6.3% – 4Q 2019 annualized growth of 1.5% Return on average assets 1.39% 1.45% Adjusted return on average assets¹ 1.42% 1.55% ◼ Continued customer-focused balance sheet growth resulting in a net interest margin of 4.12% for 4Q 2019 Return on average tangible 14.9% 15.4% – Contractual yield on loans of 5.27%, down 23 bps from 3Q common equity¹ 2019 Adjusted return on average tangible 15.2% 16.4% – Cost of total deposits of 1.02%, down 9 bps from 3Q 2019 common equity¹ 1 ◼ Total pre-tax mortgage contribution, adjusted of $3.0 mm in 4Q Efficiency ratio 67.5% 67.7% 2019 and $11.7 mm for 2019; completed mortgage restructuring Core efficiency ratio¹ 66.5% 65.4% in 3Q 2019 ◼ Completed acquisition of Atlantic Capital branches in April 2019; Tangible common equity / tangible 9.7% 9.7% announced acquisition of FNB Financial Corporation in assets¹ Scottsville, KY on September 17, 2019; announced acquisition of Franklin Financial Network, Inc. on January 21, 2020 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 4

 
Delivering balanced profitability and growth Pro forma return on average assets, adjusted¹ 1.69% 1.55% 1.46% 1.52% 1.21% 2015 2016 2017 2018 2019 Drivers of profitability Loans/deposits Net interest margin Noninterest income ($mm) NPLs (HFI) / loans (HFI) (%) Loans excluding HFS Loans HFS 101% 95% $145 $142 95% $135 88% 15% $131 81% 7% 6% 4.66% 11% 19% 4.46% 4.34% $92 0.68% 0.60% 4.10% 0.54% 0.46% 86% 88% 89% 3.97% 70% 69% 0.32% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ¹ Our pro forma net income includes a pro forma provision for federal income taxes using a combined effective income tax rate of 35.08% and 36.75% for the years ended December 31, 2015 and 2016, respectively, and also includes the exclusion of a one-time tax charge from C Corp conversion in 3Q 2016 and the 4Q 2017 benefit from the 2017 Tax Cuts and Jobs Act. The years ended December 31, 2015, 2016, 2017 and 2018 are annual percentages. See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures 5

 
Net interest margin remains strong Historical yield and costs Average interest earning assets Yield on loans Cost of deposits NIM 7.0% $6,000 6.0% $5,000 5.0% $4,000 4.0% $3,000 3.0% $2,000 2.0% assets($mm) $1,000 1.0% earninginterestAvg. Yields and Costsand(%)Yields -- $0 4Q18 1Q19 2Q19 3Q19 4Q19 NIM (%) 4.50% 4.61% 4.39% 4.28% 4.12% Impact of accretion and nonaccrual 17 17 17 16 21 interest (bps) Total deposit cost (%) 1.03% 1.14% 1.14% 1.11% 1.02% 4Q18 3Q19 4Q19 Contractual interest rate on loans HFI¹ 5.56% 5.50% 5.27% Origination and other loan fee income 0.33% 0.30% 0.26% 5.89% 5.80% 5.53% Nonaccrual interest 0.01% 0.02% 0.04% Accretion on purchased loans 0.21% 0.19% 0.23% Syndication fee income 0.00% 0.00% 0.00% Total loan (HFI) yield 6.11% 6.01% 5.80% ¹ Includes tax-equivalent adjustment 6

 
Consistent loan growth and balanced portfolio Total loan growth1 ($million) and commercial real estate concentration % of Risk-Based Capital Commercial real estate (CRE) 2 4Q19 concentrations 3Q19 (preliminary) C&D loans subject to 100% risk- 89% 88% based capital threshold $4,290 $4,345 $4,410 $3,787 $3,668 Total CRE loans subject to 300% 255% 247% risk-based capital threshold3 4Q18 1Q19 2Q19 3Q19 4Q19 Loan portfolio breakdown1 4Q18 4Q19 Other Other 6% 1-4 family 6% 1-4 family 15% 16% 1-4 family 1-4 family HELOC HELOC 5% 5% Multifamily Multifamily C&I 2% C&I 38% 37% 2% C&D C&D 15% 13% CRE CRE³ 19% 21% Total HFI loans: $3,668 million Total HFI loans: $4,410 million ¹ Exclude HFS loans, C&I includes owner-occupied CRE. ² Risk-based capital at FirstBank as defined in Call Report. 4Q 2019 calculation is preliminary and subject to change. ³ Excludes owner- occupied CRE. 7

 
Stable core deposit franchise Total deposits ($mm) Cost of deposits Customer deposits Brokered and internet time deposits Noninterest bearing (%) Cost of total deposits (%) 30.0% 24.5% $4,922 $4,935 24.7% $4,843 25.0% 22.8% 22.4% 23.0% $30 $25 $20 $4,303 20.0% $4,172 1.14% 1.14% 1.11% $61 1.03% 1.02% $103 15.0% $4,813 $4,897 $4,915 10.0% $4,069 $4,242 5.0% 0.0% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Noninterest bearing deposits ($mm Deposit composition Time 24% Noninterest- bearing checking 25% Savings $1,214 $1,208 4% $1,112 Interest-bearing $949 $965 Money market checking 26% 21% 4Q19 1Q19 2Q19 3Q19 4Q19 46% Checking accounts ¹ Includes mortgage servicing-related escrow deposits of $53.5mm, $70.1mm, $70.4mm, $121.4mm and $92.6mm for the quarters ended December 31, 2018, March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019, respectively. 8

 
Mortgage operations overview Highlights Quarterly mortgage production ◼ Total Mortgage pre-tax contribution of $3.0mm for 4Q 2019; Consumer Direct adjusted contribution of $11.7mm for 2019; adjusted for Retail 4Q18 3Q19 4Q19 $2.0mm of restructuring related expenses Wholesale ◼ Mortgage banking income $26.2 mm, up 37.8% from 4Q 2018 and down 10.3% from 3Q 2019 ◼ Deployed new Consumer Direct digital platform which should assist in decreasing cost per loan IRLC volume: $1,311mm $1,636mm $1,082mm ◼ Exit of wholesale origination channels allows additional focus IRLC pipeline2: $319mm $679mm $453mm on enhancing retail channels and improving operating Refinance %: 34% 69% 67% efficiency moving forward Purchase %: 66% 31% 33% Mortgage banking income ($mm) Total pre-tax contribution, adjusted¹ (%) 4Q18 3Q19 4Q19 Banking (excluding retail footprint) Total Mortgage (including retail footprint) Gain on Sale $21.5 $28.0 $31.8 2016 2019 10.0% Fair value ($4.6) $2.3 ($4.3) changes 36.4% Servicing $4.6 $4.0 $4.9 Revenue Fair value ($2.5) $(5.1) ($6.2) 63.6% MSR changes Total $19.0 $29.2 $26.2 Income 90.0% ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP financial measures ² As of the respective period-end 9

 
Managing operating leverage Highlights Core efficiency ratio (tax-equivalent basis)¹ ◼ Consolidated 4Q 2019 core efficiency ratio¹ Banking segment of 66.5% Consolidated Mortgage segment 93.3% 92.4% 85.0% ◼ Integration of Atlantic Capital branch acquisition completed and in line with expectations 67.5% 64.9% 65.9% 66.5% 64.5% 61.1% 58.5% 59.6% 57.0% ◼ Mortgage contribution remains strong with 54.7% lower rate environment ◼ Core bank operating expense growth in mid- single digits as company builds the foundation to cross $10 billion in asset size ◼ Continued investment in revenue producers, technology and operational capabilities to improve on current platforms and provide NM NM scalability 4Q18 1Q19 2Q19 3Q19 4Q19 ¹ See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 10

 
Asset quality remains solid Nonperforming ratios Classified & PCI loans ($mm) NPLs (HFI)/loans (HFI) NPAs/assets 1 Classified Purchased credit impaired 0.77% $79 $80 $66 $69 $69 $67 0.61% 0.59% 0.62% 0.60% $61 $63 $63 0.57% $57 0.46% 0.47% 0.41% 0.43% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 LLR/loans Net charge-offs/average loans 0.79% 0.79% 0.30% 0.72% 0.71% 0.70% 0.06% 0.06% 0.05% 0.05% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 ¹ Includes acquired excess land and facilities held for sale–see page 14 of the Quarterly Financial Supplement. 11

 
Strong capital position for future growth Capital position Tangible book value per share2 4Q18 3Q19 4Q191 $18.03 $18.55 Shareholder’s 13.1% 12.2% 12.4% equity/Assets $11.56 $11.58 TCE/TA² 10.5% 9.4% 9.7% Common equity 11.7% 10.8% 11.1% tier 1/Risk-weighted 3Q16 4Q16 3Q19 4Q19 assets Simple capital structure Tier 1 capital/Risk- 12.4% 11.3% 11.6% weighted assets Tier 2 ALLL Trust Preferred 5% 5% Total capital/Risk- 13.0% 12.0% 12.2% weighted assets Common Equity Tier 1 Tier 1 capital 11.4% 10.1% 10.1% Capital /Average assets 90% Total regulatory capital: $633.51 mm ¹ Total regulatory capital, FB Financial Corporation. 4Q 2019 calculation is preliminary and subject to change. ² See “Use of non-GAAP financial measures” and the Appendix hereto for a discussion and reconciliation of non-GAAP measures. 12

 
Appendix 13

 
GAAP reconciliation and use of non-GAAP financial measures Net income and diluted earnings per share, adjusted 14

 
GAAP reconciliation and use of non-GAAP financial measures Pro forma net income and diluted earnings per share, adjusted* 15

 
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 16

 
GAAP reconciliation and use of non-GAAP financial measures Core efficiency ratio (tax-equivalent basis) 17

 
GAAP reconciliation and use of non-GAAP financial measures Segment core efficiency ratios (tax-equivalent basis) 18

 
GAAP reconciliation and use of non-GAAP financial measures Mortgage contribution, adjusted 19

 
GAAP reconciliation and use of non-GAAP financial measures Tangible assets and equity 20

 
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity 21

 
GAAP reconciliation and use of non-GAAP financial measures Return on average tangible common equity, adjusted Return on average assets and equity, adjusted 22

 
GAAP reconciliation and use of non-GAAP financial measures Pro forma return on average assets and equity, adjusted 23