EX-99.2 3 fbk-ex99_2.htm EXHIBIT 99.2 Exhibit



















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