FB Financial Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 23, 2017

Attached files

file filename
8-K - FB FINANCIAL CORP. 8-K - FB Financial Corpa50713595.htm
EX-99.3 - EXHIBIT 99.3 - FB Financial Corpa50713595ex99_3.htm
EX-99.1 - EXHIBIT 99.1 - FB Financial Corpa50713595ex99_1.htm
Exhibit 99.2
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 1
Financial Summary and Key Metrics
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                               
   
2017
    
2016
  
   
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Statement of Income Data
                              
Total interest income
  
$
48,415
    
$
33,278
    
$
32,889
    
$
31,567
    
$
30,005
  
Total interest expense
    
4,805
      
2,851
      
2,638
      
2,535
      
2,388
  
Net interest income
    
43,610
      
30,427
      
30,251
      
29,032
      
27,617
  
Provision for loan losses
    
(784
)
    
(865
)
    
(257
)
    
(752
)
    
71
  
Total noninterest income
    
37,820
      
35,657
      
31,087
      
31,332
      
43,962
  
Total noninterest expense
    
69,224
      
49,136
      
46,417
      
47,319
      
55,529
  
Net income before income taxes
    
12,990
      
17,813
      
15,178
      
13,797
      
15,979
  
Income tax expense
    
4,602
      
6,574
      
5,425
      
4,787
      
14,772
  
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
1,207
  
Net interest income (tax—equivalent basis)
  
$
44,281
    
$
31,158
    
$
30,963
    
$
29,686
    
$
28,213
  
Pro forma net income (C-Corp basis)
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
10,033
  
Pro forma core net income*
  
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
    
$
12,935
  
Per Common Share
                                        
Diluted net income
  
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
    
$
0.07
  
Pro forma net income- diluted (C Corp basis)
  
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
    
$
0.55
  
Pro forma core net income - diluted*
  
$
0.60
    
$
0.49
    
$
0.42
    
$
0.43
    
$
0.71
  
Book value
    
18.76
      
17.59
      
14.16
      
13.71
      
13.73
  
Tangible book value*
    
13.79
      
15.83
      
12.05
      
11.58
      
11.56
  
Weighted average number of shares-diluted
    
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
      
18,332,192
  
Period-end number of shares (a)
    
30,526,592
      
28,968,160
      
24,154,323
      
24,107,660
      
23,975,122
  
Selected Balance Sheet Data
                                        
Cash and due from banks
  
$
67,070
    
$
59,112
    
$
53,748
    
$
50,157
    
$
51,292
  
Loans held for investment
    
3,114,562
      
1,970,974
      
1,900,995
      
1,848,784
      
1,793,343
  
Allowance for loan losses
    
(23,482
)
    
(23,247
)
    
(22,898
)
    
(21,747
)
    
(23,290
)
Loans held for sale
    
466,369
      
427,416
      
365,173
      
507,442
      
486,601
  
Available-for-sale securities, fair value
    
543,282
      
553,357
      
567,886
      
582,183
      
553,357
  
Other real estate owned, net
    
13,812
      
6,370
      
6,811
      
7,403
      
8,964
  
Total assets
    
4,581,943
      
3,346,570
      
3,166,459
      
3,276,881
      
3,187,180
  
Customer deposits
    
3,614,220
      
2,726,060
      
2,699,868
      
2,670,031
      
2,638,540
  
Brokered and internet time deposits
    
104,318
      
1,533
      
1,331
      
1,531
      
1,532
  
Total deposits
    
3,718,538
      
2,727,593
      
2,701,199
      
2,671,562
      
2,640,072
  
Borrowings
    
196,299
      
43,790
      
44,552
      
194,892
      
125,291
  
Total shareholders' equity
    
572,528
      
509,517
      
342,142
      
330,498
      
329,108
  
Selected Ratios
                                        
Return on average:
                                        
Assets
    
0.80
%
    
1.40
%
    
1.25
%
    
1.12
%
    
0.16
%
Shareholders' equity
    
6.05
%
    
11.30
%
    
11.87
%
    
11.24
%
    
1.74
%
Tangible common equity*
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
    
2.14
%
Pro forma return on average (C-Corp basis):
                                        
Assets
    
0.80
%
    
1.40
%
    
1.25
%
    
1.12
%
    
1.32
%
Shareholders' equity
    
6.05
%
    
11.30
%
    
11.87
%
    
11.24
%
    
14.43
%
Tangible common equity*
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
    
17.79
%
Average shareholders' equity to average assets
    
13.22
%
    
12.37
%
    
10.50
%
    
9.95
%
    
9.17
%
Net interest margin (NIM) (tax-equivalent basis)
    
4.61
%
    
4.19
%
    
4.28
%
    
3.99
%
    
4.05
%
Net interest margin excluding accretion and nonaccrual interest collections (tax-equivalent basis) (b)
    
4.33
%
    
4.03
%
    
4.04
%
    
3.90
%
    
3.88
%
Efficiency ratio (GAAP)
    
85.01
%
    
74.35
%
    
75.67
%
    
78.39
%
    
77.58
%
Core efficiency ratio (tax-equivalent basis)*
    
64.43
%
    
70.18
%
    
73.29
%
    
73.72
%
    
69.65
%
Loans held for investment to deposit ratio
    
83.76
%
    
72.26
%
    
70.38
%
    
69.20
%
    
67.93
%
Total loans to deposit ratio
    
96.30
%
    
87.93
%
    
83.89
%
    
88.20
%
    
86.36
%
Yield on interest-earning assets
    
5.10
%
    
4.57
%
    
4.65
%
    
4.33
%
    
4.40
%
Cost of interest-bearing liabilities
    
0.71
%
    
0.55
%
    
0.51
%
    
0.49
%
    
0.48
%
Cost of total deposits
    
0.46
%
    
0.34
%
    
0.32
%
    
0.29
%
    
0.30
%
Credit Quality Ratios
                                        
Allowance for loan losses as a percentage of loans held for investment
    
0.75
%
    
1.18
%
    
1.20
%
    
1.18
%
    
1.30
%
Net recoveries (charge-off's) as a percentage of average total loans held for investment
    
0.15
%
    
0.25
%
    
0.31
%
    
(0.17
)%
    
(0.12
)%
Nonperforming loans held for investment as a percentage of total loans held for investments
    
0.29
%
    
0.50
%
    
0.49
%
    
0.57
%
    
0.61
%
Nonperforming assets as a percentage of total assets (a)
    
0.88
%
    
0.58
%
    
0.56
%
    
0.58
%
    
0.68
%
Preliminary capital ratios (Consolidated)
                                        
Shareholders' equity to assets
    
12.50
%
    
15.23
%
    
10.81
%
    
10.09
%
    
10.33
%
Tangible common equity to tangible assets*
    
9.50
%
    
13.92
%
    
9.34
%
    
8.65
%
    
8.84
%
Tier 1 capital (to average assets)
    
11.35
%
    
15.54
%
    
10.46
%
    
10.05
%
    
10.32
%
Tier 1 capital (to risk-weighted assets)
    
11.59
%
    
18.28
%
    
12.87
%
    
12.19
%
    
12.37
%
Total capital (to risk-weighted assets)
    
12.19
%
    
19.14
%
    
13.76
%
    
13.03
%
    
13.32
%
Common Equity Tier 1 (to risk-weighted assets) (CET1)
    
10.83
%
    
17.16
%
    
11.69
%
    
11.04
%
    
11.16
%
                                         
*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 discussion of non-GAAP measures included in the corresponding earnings release.
  
                                         
(a) Includes marketable equity securities received in satisfaction of previously charged-off loan during the second quarter of 2017, excess land and facilities held for sale, and GNMA loans subject to ability to repurchase.  
(b) Excludes accretion from acquired/purchased loans and collection of intererest income on nonaccrual loans.
  
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 2
Consolidated Statements of Income
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                                           
                                  Q3 2017     Q3 2017  
                                 
vs.
    
vs.
  
   
2017
    
2016
     Q2 2017     Q3 2016  
   
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Percent
variance
    
Percent
variance
  
Interest income:
                                              
Interest and fees on loans
  
$
44,367
    
$
29,350
    
$
29,006
    
$
28,125
    
$
26,550
      
51.17
%
    
67.11
%
Interest on securities
                                                        
Taxable
    
2,399
      
2,589
      
2,567
      
2,350
      
2,402
      
-7.34
%
    
-0.12
%
Tax-exempt
    
988
      
1,068
      
1,040
      
947
      
875
      
-7.49
%
    
12.91
%
Other
    
661
      
271
      
276
      
145
      
178
      
143.91
%
    
271.35
%
Total interest income
    
48,415
      
33,278
      
32,889
      
31,567
      
30,005
      
45.49
%
    
61.36
%
Interest expense:
                                                        
Deposits
                                                        
Demand and savings accounts
            
1,703
      
1,531
      
1,387
      
1,340
      
66.12
%
    
111.12
%
Time deposits
    
1,125
      
604
      
583
      
551
      
575
      
86.26
%
    
95.65
%
Short-term borrowings
    
9
      
12
      
10
      
20
      
13
      
-25.00
%
    
-30.77
%
Long-term debt
    
842
      
532
      
514
      
577
      
460
      
58.27
%
    
83.04
%
Total interest expense
    
4,805
      
2,851
      
2,638
      
2,535
      
2,388
      
68.54
%
    
101.21
%
Net interest income
    
43,610
      
30,427
      
30,251
      
29,032
      
27,617
      
43.33
%
    
57.91
%
Provision for loan losses
    
(784
)
    
(865
)
    
(257
)
    
(752
)
    
71
      
-9.36
%
    
-1204.23
%
Net interest income after provision for loan losses
            
31,292
      
30,508
      
29,784
      
27,546
      
41.87
%
    
61.16
%
Noninterest income:
                                                        
Mortgage banking income
    
31,334
      
30,239
      
25,080
      
26,177
      
36,938
      
3.62
%
    
-15.17
%
Service charges on deposit accounts
            
1,796
      
1,766
      
1,880
      
1,870
      
13.81
%
    
9.30
%
ATM and interchange fees
    
2,222
      
2,085
      
2,047
      
2,035
      
1,814
      
6.57
%
    
22.49
%
Investment services and trust income
            
903
      
814
      
829
      
857
      
19.38
%
    
25.79
%
Gain from securities, net
    
254
      
29
      
1
      
-
      
416
      
775.86
%
    
-38.94
%
(Loss) gain on sales or write-downs of other real estate owned
            
23
      
748
      
(222
)
    
1,646
      
-1700.00
%
    
-122.36
%
Gain (loss) from other assets
    
54
      
39
      
-
      
(127
)
    
7
      
38.46
%
    
671.43
%
Other income
    
1,202
      
543
      
631
      
760
      
414
      
121.36
%
    
190.34
%
Total noninterest income
    
37,820
      
35,657
      
31,087
      
31,332
      
43,962
      
6.07
%
    
-13.97
%
Total revenue
    
81,430
      
66,084
      
61,338
      
60,364
      
71,579
      
23.22
%
    
13.76
%
Noninterest expenses:
                                                        
Salaries, commissions and employee benefits
            
30,783
      
29,006
      
29,506
      
34,010
      
13.03
%
    
2.31
%
Occupancy and equipment expense
            
3,307
      
3,109
      
3,044
      
3,171
      
7.02
%
    
11.61
%
Legal and professional fees
    
1,512
      
1,033
      
1,428
      
810
      
816
      
46.37
%
    
85.29
%
Data processing
    
1,761
      
1,460
      
1,501
      
1,490
      
1,294
      
20.62
%
    
36.09
%
Merger and conversion
    
15,711
      
767
      
487
      
-
      
1,122
      
1948.37
%
    
1300.27
%
Amortization of core deposit intangibles
            
123
      
392
      
527
      
526
      
353.66
%
    
6.08
%
Amortization of mortgage servicing rights
            
-
      
-
      
2,100
      
2,796
      
0.00
%
    
-100.00
%
(Recovery of) impairment of mortgage servicing rights
            
-
      
-
      
(3,411
)
    
2,402
      
0.00
%
    
-100.00
%
Loss on sale of mortgage servicing rights
            
249
      
-
      
4,447
      
-
      
-100.00
%
    
0.00
%
Regulatory fees and deposit insurance assessments
            
494
      
435
      
471
      
465
      
11.13
%
    
18.06
%
Software license and maintenance fees
            
364
      
457
      
513
      
503
      
43.68
%
    
3.98
%
Advertising
    
3,493
      
3,343
      
2,932
      
2,537
      
2,220
      
4.49
%
    
57.34
%
Other expense
    
6,783
      
7,213
      
6,670
      
5,285
      
6,204
      
-5.96
%
    
9.33
%
Total noninterest expense
    
69,224
      
49,136
      
46,417
      
47,319
      
55,529
      
40.88
%
    
24.66
%
Net income before income taxes
            
17,813
      
15,178
      
13,797
      
15,979
      
-27.08
%
    
-18.71
%
Income tax expense
    
4,602
      
6,574
      
5,425
      
4,787
      
14,772
      
-30.00
%
    
-68.85
%
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
1,207
      
-25.37
%
    
594.95
%
Weighted average common shares outstanding:
                                                        
Basic
    
30,004,952
      
25,741,968
      
24,138,437
      
23,977,028
      
18,259,128
                  
Fully diluted
    
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
      
18,332,192
                  
Earnings per share
                                                        
Basic
  
$
0.28
    
$
0.44
    
$
0.40
    
$
0.38
    
$
0.07
                  
Fully diluted
  
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
    
$
0.07
                  
                                                         
Pro Forma (C Corp basis):
                                                        
Income tax expense
  
$
4,602
    
$
6,574
    
$
5,425
    
$
4,787
    
$
5,946
      
-30.00
%
    
-22.60
%
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
10,033
      
-25.37
%
    
-16.40
%
Earnings per share
                                                        
Basic
  
$
0.28
    
$
0.44
    
$
0.40
    
$
0.38
    
$
0.55
                  
Fully diluted
  
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
    
$
0.55
                  
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 3
 
Consolidated Statements of Income
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                                 
                            Q3 2017  
   
For the nine months ended
    
For the year ended
    
vs.
  
   
September 30,
    
December 31,
     Q3 2016  
   
2017
    
2016
    
2016
    
2015
    
Percent
variance
  
Interest income:
                                
Interest and fees on loans
  
$
102,723
    
$
77,740
    
$
105,865
    
$
87,723
      
32.14
%
Interest on securities
                                        
Taxable
    
7,555
      
8,296
      
10,646
      
11,783
      
-8.93
%
Tax-exempt
    
3,096
      
2,425
      
3,372
      
2,808
      
27.67
%
Other
    
1,208
      
466
      
611
      
468
      
159.23
%
Total interest income
    
114,582
      
88,927
      
120,494
      
102,782
      
28.85
%
Interest expense:
                                        
Deposits
                                        
Demand and savings accounts
    
6,063
      
4,026
      
5,413
      
4,733
      
50.60
%
Time deposits
    
2,312
      
1,378
      
1,929
      
1,559
      
67.78
%
Short-term borrowings
    
31
      
101
      
121
      
712
      
-69.31
%
Long-term debt
    
1,888
      
1,504
      
2,081
      
1,906
      
25.53
%
Total interest expense
    
10,294
      
7,009
      
9,544
      
8,910
      
46.87
%
Net interest income
    
104,288
      
81,918
      
110,950
      
93,872
      
27.31
%
Provision for loan losses
    
(1,906
)
    
(727
)
    
(1,479
)
    
(3,064
)
    
162.17
%
Net interest income after provision for loan losses
    
106,194
      
82,645
      
112,429
      
96,936
      
28.49
%
Noninterest income:
                                        
Mortgage banking income
    
86,653
      
91,574
      
117,751
      
70,190
      
-5.37
%
Service charges on deposit accounts
    
5,606
      
6,129
      
8,009
      
7,389
      
-8.53
%
ATM and interchange fees
    
6,354
      
5,756
      
7,791
      
6,536
      
10.39
%
Investment services and trust income
    
2,795
      
2,508
      
3,337
      
3,260
      
11.44
%
Bargain purchase gain
    
-
      
-
      
-
      
2,794
      
0.00
%
Gain from securities, net
    
284
      
4,407
      
4,407
      
1,844
      
-93.56
%
Gain (loss) on sales or write-downs of other real estate owned
    
403
      
1,504
      
1,282
      
(317
)
    
-73.20
%
Gain (loss) from other assets
    
93
      
24
      
(103
)
    
(393
)
    
287.50
%
Other income
    
2,376
      
1,451
      
2,211
      
1,077
      
63.75
%
Total noninterest income
    
104,564
      
113,353
      
144,685
      
92,380
      
-7.75
%
Total revenue
    
208,852
      
195,271
      
255,635
      
186,252
      
6.95
%
Noninterest expenses:
                                        
Salaries, commissions and employee benefits
    
94,584
      
84,486
      
113,992
      
84,214
      
11.95
%
Occupancy and equipment expense
    
9,955
      
9,567
      
12,611
      
10,777
      
4.06
%
Legal and professional fees
    
3,973
      
2,704
      
3,514
      
3,355
      
46.93
%
Data processing
    
4,722
      
2,691
      
4,181
      
2,053
      
75.47
%
Merger and conversion
    
16,965
      
3,268
      
3,268
      
3,543
      
419.12
%
Amortization of core deposit intangibles
    
1,073
      
1,605
      
2,132
      
1,731
      
-33.15
%
Amortization of mortgage servicing rights
    
-
      
6,221
      
8,321
      
2,601
      
-100.00
%
Impairment of mortgage servicing rights
    
-
      
8,089
      
4,678
      
194
      
-100.00
%
Loss on sale of mortgage servicing rights
    
249
      
-
      
4,447
      
-
      
100.00
%
Regulatory fees and deposit insurance assessments
    
1,478
      
1,481
      
1,952
      
2,190
      
-0.20
%
Software license and maintenance fees
    
1,344
      
2,361
      
2,874
      
1,986
      
-43.07
%
Advertising
    
9,768
      
8,071
      
10,608
      
7,866
      
21.03
%
Other expense
    
20,666
      
16,927
      
22,212
      
17,982
      
22.09
%
Total noninterest expense
    
164,777
      
147,471
      
194,790
      
138,492
      
11.74
%
Net income before income taxes
    
45,981
      
48,527
      
62,324
      
50,824
      
-5.25
%
Income tax expense
    
16,601
      
16,946
      
21,733
      
2,968
      
-2.04
%
Net income
  
$
29,380
    
$
31,581
    
$
40,591
    
$
47,856
      
-6.97
%
Weighted average common shares outstanding:
                                  
Basic
    
26,649,942
      
17,542,335
      
19,165,182
      
17,180,000
          
Fully diluted
    
27,198,373
      
17,566,867
      
19,312,174
      
17,180,000
          
Earnings per share
                                        
Basic
  
$
1.10
    
$
1.80
    
$
2.12
    
$
2.79
          
Fully diluted
  
$
1.08
    
$
1.80
    
$
2.10
    
$
2.79
          
                                         
Pro Forma:
                                        
Income tax expense
  
$
16,601
    
$
18,115
    
$
22,902
    
$
17,829
      
-8.36
%
Net income
  
$
29,380
    
$
30,412
    
$
39,422
    
$
32,995
      
-3.39
%
Earnings per share
                                        
Basic
  
$
1.10
    
$
1.73
    
$
2.06
    
$
1.92
          
Fully diluted
  
$
1.08
    
$
1.73
    
$
2.04
    
$
1.92
          
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 4
 
Consolidated Balance Sheets
  
(Unaudited)
  
(In Thousands, %)
  
 
                                          
                                 
Annualized
          
                                  Q3 2017     Q3 2017  
                                 
vs.
    
vs.
  
   
2017
    
2016
     Q2 2017     Q3 2016  
   
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Percent
variance
    
Percent
variance
  
ASSETS
                                              
Cash and due from banks
  
$
67,070
    
$
59,112
    
$
53,748
    
$
50,157
    
$
51,292
      
53.41
%
    
30.76
%
Federal funds sold
    
4,470
      
16,238
      
18,512
      
13,037
      
8,848
      
-287.52
%
    
-49.48
%
Interest bearing deposits in financial institutions
    
25,625
      
110,928
      
57,292
      
73,133
      
57,157
      
-305.09
%
    
-55.17
%
Cash and cash equivalents
    
97,165
      
186,278
      
129,552
      
136,327
      
117,297
      
-189.79
%
    
-17.16
%
Investments:
                                                        
Available-for-sale securities, at fair value
    
543,282
      
553,357
      
567,886
      
582,183
      
553,357
      
-7.22
%
    
-1.82
%
Federal Home Loan Bank stock, at cost
    
11,152
      
7,743
      
7,743
      
7,743
      
6,528
      
174.67
%
    
70.83
%
Loans held for sale, at fair value
    
466,369
      
427,416
      
365,173
      
507,442
      
486,601
      
36.16
%
    
-4.16
%
Loans
    
3,114,562
      
1,970,974
      
1,900,995
      
1,848,784
      
1,793,343
      
230.19
%
    
73.67
%
Less: allowance for loan losses
    
23,482
      
23,247
      
22,898
      
21,747
      
23,290
      
4.01
%
    
0.82
%
Net loans
    
3,091,080
      
1,947,727
      
1,878,097
      
1,827,037
      
1,770,053
      
232.89
%
    
74.63
%
Premises and equipment, net
    
85,550
      
66,392
      
66,108
      
66,651
      
65,882
      
114.48
%
    
29.85
%
Other real estate owned, net
    
13,812
      
6,370
      
6,811
      
7,403
      
8,964
      
463.51
%
    
54.08
%
Interest receivable
    
11,218
      
7,012
      
7,247
      
7,241
      
7,040
      
237.98
%
    
59.35
%
Mortgage servicing rights, net
    
63,046
      
48,464
      
47,593
      
32,070
      
46,291
      
119.37
%
    
36.19
%
Goodwill
    
138,910
      
46,867
      
46,867
      
46,867
      
46,867
      
779.16
%
    
196.39
%
Core deposit intangible, net
    
12,550
      
4,048
      
4,171
      
4,563
      
5,090
      
833.27
%
    
146.56
%
Other assets
    
47,809
      
44,896
      
39,211
      
51,354
      
73,210
      
25.74
%
    
-34.70
%
Total assets
  
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
    
$
3,187,180
      
146.45
%
    
43.76
%
LIABILITIES AND SHAREHOLDERS' EQUITY
                                                  
Liabilities:
                                                        
Demand deposits
                                                        
Noninterest-bearing
  
$
924,773
    
$
715,391
    
$
696,112
    
$
697,072
    
$
726,248
      
116.12
%
    
27.34
%
Interest-bearing
    
1,948,600
      
1,471,650
      
1,473,535
      
1,449,382
      
1,382,981
      
128.58
%
    
40.90
%
Savings deposits
    
177,949
      
143,951
      
142,019
      
134,077
      
131,819
      
93.70
%
    
34.99
%
Customer time deposits
    
562,898
      
395,068
      
388,202
      
389,500
      
397,492
      
168.54
%
    
41.61
%
Brokered and internet time deposits
    
104,318
      
1,533
      
1,331
      
1,531
      
1,532
      
26600.67
%
    
6709.27
%
    Total time deposits
    
667,216
      
396,601
      
389,533
      
391,031
      
399,024
      
270.71
%
    
67.21
%
Total deposits
    
3,718,538
      
2,727,593
      
2,701,199
      
2,671,562
      
2,640,072
      
144.14
%
    
40.85
%
Securities sold under agreements to repurchase
    
14,556
      
16,343
      
18,130
      
21,561
      
29,137
      
-43.38
%
    
-50.04
%
Short-term borrowings
    
52,766
      
—
      
—
      
150,000
      
80,000
      
100.00
%
    
0.00
%
Long-term debt
    
143,533
      
43,790
      
44,552
      
44,892
      
45,291
      
903.68
%
    
216.91
%
Accrued expenses and other liabilities
    
80,022
      
49,327
      
60,436
      
58,368
      
63,572
      
246.88
%
    
25.88
%
Total liabilities
    
4,009,415
      
2,837,053
      
2,824,317
      
2,946,383
      
2,858,072
      
163.95
%
    
40.28
%
Shareholders' equity:
                                                        
Common stock, $1 par value
    
30,527
      
28,968
      
24,155
      
24,108
      
23,975
      
21.35
%
    
27.33
%
Additional paid-in capital
    
416,651
      
363,870
      
214,160
      
213,480
      
211,765
      
57.55
%
    
96.75
%
Retained earnings
    
123,779
      
115,391
      
104,152
      
93,784
      
84,774
      
28.84
%
    
46.01
%
Accumulated other comprehensive income (loss), net
    
1,571
      
1,288
      
(325
)
    
(874
)
    
8,594
      
87.17
%
    
-81.72
%
Total shareholders' equity
    
572,528
      
509,517
      
342,142
      
330,498
      
329,108
      
49.06
%
    
73.96
%
Total liabilities and shareholders' equity
  
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
    
$
3,187,180
      
146.45
%
    
43.76
%
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 5
 
Net Assets Acquired from the Clayton Banks
  
As of July 31, 2017
  
(Unaudited)
  
(In Thousands)
  
                   
    July 31, 2017  
    Historical Cost Basis    
Fair Value
    
As Recorded by
  
   
Combined Clayton Banks
    
Adjustments
    
FB Financial Corporation
  
Assets
                  
Cash and cash equivalents
  
$
49,059
    
$
-
    
$
49,059
  
Investment securities (a)
    
59,108
      
385
      
59,493
  (a)
FHLB stock
    
3,408
      
-
      
3,408
  
Loans
    
1,075,441
      
(14,933
)
 (b)   
1,060,508
  
Allowance for loan losses
    
(19,985
)
    
19,985
      
-
  
Premises and Equipment
    
15,011
      
4,469
      
19,480
  
Other real estate owned
    
5,880
      
644
      
6,524
  
Goodwill
    
8,425
      
(8,425
)
    
-
  
Core deposit intangible
    
-
      
9,060
      
9,060
  
Other assets (c)
    
7,263
      
(759
)
    
6,504
 (c)
Total Assets
  
$
1,203,610
    
$
10,426
    
$
1,214,036
  
                         
Liabilities
                        
Interest-bearing deposits
    
669,745
      
309
      
670,054
  
Non-interest bearing deposits
    
309,464
      
-
      
309,464
  
Borrowings (d)
    
84,110
      
721
      
84,831
 (d)
Accrued expenses and other liabilities
                    
5,246
  
Total Liabilities
  
$
1,067,897
    
$
1,698
    
$
1,069,595
  
Net assets acquired
  
$
135,713
    
$
8,728
    
$
144,441
  
                         
Purchase Price:
                        
Common shares issued
    
1,521,200
                  
Price per share as of July 31, 2017
   $ 34.37                  
Common stock consideration
            
52,284
          
Cash consideration
            
184,200
          
Total consideration paid
          
$
236,484
          
                         
Allocation of purchase price:
                        
Fair value of net assets assumed including identifiable intangible assets
             144,441          
Goodwill
            
92,043
          
Total consideration paid
          
$
236,484
          
Note: the above purchase price allocation and purchase accounting adjustments are preliminary and subject to change during the measurement period as allowed under ASC 805- Business Combinations.
  
                       
(a) Liquidated prior to September 30, 2017.                        
(b) Includes credit and liquidity mark of $26.4 million and reversal of existing loan discount and other yield adjustments of $11.5 million.                        
(c) Includes lease intangible of $0.6 million.                        
(d) Paid off prior to September 30, 2017.
                        
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 6
 
Average Balance, Average Yield Earned and Average Rate Paid
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                     
                                     
   
Three Months Ended
    
Three Months Ended
  
   
September 30, 2017
    
June 30, 2017
  
   
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
    
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
  
Interest-earning assets:
                                    
Loans(1)
  
$
2,705,265
    
$
40,242
      
5.90
%
  
$
1,942,667
    
$
25,115
      
5.19
%
Loans held for sale
    
410,434
      
4,167
      
4.03
%
    
390,596
      
4,276
      
4.39
%
Securities:
                                                
Taxable
    
425,281
      
2,399
      
2.24
%
    
442,309
      
2,589
      
2.35
%
Tax-exempt(1)
    
117,429
      
1,617
      
5.46
%
    
122,553
      
1,758
      
5.75
%
Total Securities(1)
    
542,710
      
4,016
      
2.94
%
    
564,862
      
4,347
      
3.09
%
Federal funds sold
    
39,363
      
76
      
0.77
%
    
8,456
      
23
      
1.09
%
Interest-bearing deposits with other financial institutions
    
108,185
      
448
      
1.64
%
    
68,460
      
158
      
0.93
%
FHLB stock
    
8,892
      
137
      
6.11
%
    
7,743
      
90
      
4.66
%
Total interest earning assets(1)
    
3,814,849
      
49,086
      
5.10
%
    
2,982,784
      
34,009
      
4.57
%
Noninterest Earning Assets:
                                                
Cash and due from banks
    
55,485
                      
50,004
                  
Allowance for loan losses
    
(23,875
)
                    
(22,813
)
                
Other assets
    
316,019
                      
214,808
                  
Total noninterest earning assets
    
347,629
                      
241,999
                  
Total assets
  
$
4,162,478
                    
$
3,224,783
                  
Interest-bearing liabilities:
                                                
Interest bearing deposits:
                                                
Customer time deposits
  
$
493,992
    
$
825
      
0.66
%
  
$
389,390
    
$
602
      
0.62
%
Broker and internet time deposits
    
95,207
      
300
      
1.25
%
    
1,522
      
2
      
0.53
%
Time deposits
  
$
589,199
    
$
1,125
      
0.76
%
  
$
390,912
    
$
604
      
0.62
%
Money market
    
1,023,612
      
1,722
      
0.67
%
    
723,020
      
889
      
0.49
%
Negotiable order of withdrawals
    
788,238
      
1,040
      
0.52
%
    
711,099
      
759
      
0.43
%
Savings deposits
    
166,184
      
67
      
0.16
%
    
143,357
      
55
      
0.15
%
Total interest bearing deposits
    
2,567,233
      
3,954
      
0.61
%
    
1,968,388
      
2,307
      
0.47
%
Other interest-bearing liabilities:
                                                
FHLB advances
    
86,795
      
428
      
1.96
%
    
52,569
      
192
      
1.46
%
Other borrowings
    
15,828
      
9
      
0.23
%
    
17,315
      
12
      
0.28
%
Long-term debt
    
31,520
      
414
      
5.21
%
    
30,930
      
340
      
4.41
%
Total other interest-bearing liabilities
    
134,143
      
851
      
2.52
%
    
100,814
      
544
      
2.16
%
Total Interest-bearing liabilities
    
2,701,376
      
4,805
      
0.71
%
    
2,069,202
      
2,851
      
0.55
%
Noninterest bearing liabilities:
                                                
Demand deposits
    
871,973
                      
724,419
                  
Other liabilities
    
38,720
                      
32,357
                  
Total noninterest-bearing liabilities
    
910,693
                      
756,776
                  
Total liabilities
    
3,612,069
                      
2,825,978
                  
Shareholders' equity
    
550,409
                      
398,805
                  
Total liabilities and shareholders' equity
  
$
4,162,478
                    
$
3,224,783
                  
Net interest income  (1)
          
$
44,281
                    
$
31,158
          
Interest rate spread (1)
                    
4.49
%
                    
4.10
%
Net interest margin (1)
                    
4.61
%
                    
4.19
%
Net interest margin (excluding accretion and nonaccrual interest collections) (1)
                    
4.33
%
                    
4.03
%
Average interest-earning assets to average interest-bearing liabilities
                    
141.2
%
                    
144.2
%
Tax equivalent adjustment
          
$
671
                    
$
731
          
Loan yield components:
                                                
Contractual interest rate on loans held for investment (1)
          
$
34,634
      
5.08
%
          
$
22,418
      
4.63
%
Origination and other loan fee income
            
2,610
      
0.38
%
            
1,447
      
0.30
%
Accretion on purchased loans
            
1,554
      
0.23
%
            
848
      
0.17
%
Nonaccrual interest collections
            
1,116
      
0.16
%
            
315
      
0.07
%
Syndication fee income
            
328
      
0.05
%
            
87
      
0.02
%
Total loan yield
          
$
40,242
      
5.90
%
          
$
25,115
      
5.19
%
                                                 
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%
          
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 7
 
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
  
   
March 31, 2017
    
December 31, 2016
    
September 30, 2016
  
   
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(1)
  
$
1,869,951
    
$
25,090
      
5.44
%
  
$
1,811,136
    
$
24,001
      
5.27
%
  
$
1,750,300
    
$
23,633
      
5.37
%
Loans held for sale
    
381,932
      
3,957
      
4.20
%
    
510,219
      
4,167
      
3.25
%
    
409,736
      
2,948
      
2.86
%
Securities:
                                                                        
Taxable
    
456,634
      
2,567
      
2.28
%
    
455,275
      
2,350
      
2.05
%
    
454,601
      
2,426
      
2.12
%
Tax-exempt(1)
    
117,615
      
1,711
      
5.90
%
    
108,230
      
1,558
      
5.73
%
    
100,947
      
1,440
      
5.67
%
Total Securities(1)
    
574,249
      
4,278
      
3.02
%
    
563,505
      
3,908
      
2.76
%
    
555,548
      
3,866
      
2.77
%
Federal funds sold
    
14,327
      
27
      
0.76
%
    
10,192
      
15
      
0.59
%
    
14,748
      
18
      
0.49
%
Interest-bearing deposits with other financial institutions
    
82,981
      
171
      
0.84
%
    
60,438
      
65
      
0.43
%
    
32,262
      
71
      
0.88
%
FHLB stock
    
7,743
      
78
      
4.09
%
    
6,931
      
65
      
3.73
%
    
6,528
      
65
      
3.96
%
Total interest earning assets(1)
    
2,931,183
      
33,601
      
4.65
%
    
2,962,421
      
32,221
      
4.33
%
    
2,769,122
      
30,601
      
4.40
%
Noninterest Earning Assets:
                                                                        
Cash and due from banks
    
51,614
                      
43,883
                      
46,440
                  
Allowance for loan losses
    
(21,955
)
                    
(23,283
)
                    
(23,493
)
                
Other assets
    
211,307
                      
223,377
                      
223,601
                  
Total noninterest earning assets
    
240,966
                      
243,977
                      
246,548
                  
Total assets
  
$
3,172,149
                    
$
3,206,398
                    
$
3,015,670
                  
Interest-bearing liabilities:
                                                                        
Interest bearing deposits:
                                                                        
Customer time deposits
  
$
388,744
    
$
582
      
0.61
%
  
$
393,205
    
$
551
      
0.56
%
  
$
397,669
    
$
574
      
0.57
%
Broker and internet time deposits
    
1,468
      
1
      
0.28
%
    
1,534
      
—
      
0.00
%
    
2,419
      
1
      
0.16
%
Time deposits
  
$
390,212
    
$
583
      
0.61
%
  
$
394,739
    
$
551
      
0.56
%
  
$
400,088
    
$
575
      
0.57
%
Money market
    
729,934
      
785
      
0.44
%
    
693,790
      
662
      
0.38
%
    
622,430
      
650
      
0.42
%
Negotiable order of withdrawals
    
718,957
      
695
      
0.39
%
    
679,100
      
674
      
0.39
%
    
683,527
      
639
      
0.37
%
Savings deposits
    
136,627
      
51
      
0.15
%
    
132,016
      
51
      
0.15
%
    
130,864
      
51
      
0.16
%
Total interest bearing deposits
    
1,975,730
      
2,114
      
0.43
%
    
1,899,645
      
1,938
      
0.41
%
    
1,836,909
      
1,915
      
0.41
%
Other interest-bearing liabilities:
                                                                        
FHLB advances
    
60,569
      
191
      
1.28
%
    
117,825
      
258
      
0.87
%
    
58,803
      
171
      
1.16
%
Other borrowings
    
18,884
      
10
      
0.21
%
    
25,545
      
22
      
0.31
%
    
30,515
      
13
      
0.17
%
Long-term debt
    
30,930
      
323
      
4.24
%
    
32,609
      
317
      
3.89
%
    
39,910
      
289
      
2.88
%
Total other interest-bearing liabilities
    
110,383
      
524
      
1.93
%
    
175,979
      
597
      
1.35
%
    
129,228
      
473
      
1.46
%
Total Interest-bearing liabilities
    
2,086,113
      
2,638
      
0.51
%
    
2,075,624
      
2,535
      
0.49
%
    
1,966,137
      
2,388
      
0.48
%
Noninterest bearing liabilities:
                                                                        
Demand deposits
    
708,612
                      
768,018
                      
738,328
                  
Other liabilities
    
44,246
                      
43,770
                      
34,656
                  
Total noninterest-bearing liabilities
    
752,858
                      
811,788
                      
772,984
                  
Total liabilities
    
2,838,971
                      
2,887,412
                      
2,739,121
                  
Shareholders' equity
    
333,178
                      
318,986
                      
276,549
                  
Total liabilities and shareholders' equity
  
$
3,172,149
                    
$
3,206,398
                    
$
3,015,670
                  
Net interest income (1)
          
$
30,963
                    
$
29,686
                    
$
28,213
          
Interest rate spread (1)
                    
4.22
%
                    
3.92
%
                    
3.98
%
Net interest margin (1)
                    
4.28
%
                    
3.99
%
                    
4.05
%
Net interest margin (excluding accretion and
nonaccrual interest recoveries) (1)
                    
4.04
%
                    
3.90
%
                    
3.88
%
Average interest-earning assets to average
interest-bearing liabilities
                    
140.5
%
                    
142.7
%
                    
140.8
%
Tax equivalent adjustment
          
$
712
                    
$
654
                    
$
596
          
Loan yield components:
                                                                        
Contractual interest rate on loans held for
investment (1)
          
$
21,461
      
4.65
%
          
$
21,456
      
4.71
%
          
$
20,106
      
4.57
%
Origination and other loan fee income
            
1,497
      
0.32
%
            
1,868
      
0.41
%
            
2,306
      
0.52
%
Accretion on purchased loans
            
1,160
      
0.25
%
            
343
      
0.08
%
            
814
      
0.19
%
Nonaccrual interest collections
            
619
      
0.13
%
            
334
      
0.07
%
            
407
      
0.09
%
Syndication fee income
            
353
      
0.08
%
            
—
      
—
              
—
      
—
  
Total loan yield
          
$
25,090
      
5.44
%
          
$
24,001
      
5.27
%
          
$
23,633
      
5.37
%
                                                                         
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%
          
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 8
 
Average Balance, Average Yield Earned and Average Rate Paid
  
For the Periods Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                     
                                     
   
For the Nine Months Ended
    
For the Nine Months Ended
  
   
September 30, 2017
    
September 30, 2016
  
   
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
    
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
  
Interest-earning assets:
                                    
Loans(1)
  
$
2,095,419
    
$
90,447
      
5.77
%
  
$
1,730,535
    
$
70,781
      
5.46
%
Loans held for sale
    
394,425
      
12,400
      
4.20
%
    
313,044
      
7,101
      
3.03
%
Securities:
                                                
Taxable
    
441,063
      
7,555
      
2.29
%
    
495,092
      
8,296
      
2.24
%
Tax-exempt(1)
    
118,982
      
5,086
      
5.72
%
    
86,368
      
3,990
      
6.17
%
Total Securities(1)
    
560,045
      
12,641
      
3.02
%
    
581,460
      
12,286
      
2.82
%
Federal funds sold
    
18,127
      
126
      
0.93
%
    
13,524
      
49
      
0.48
%
Interest-bearing deposits with other financial institutions
    
85,398
      
777
      
1.22
%
    
48,980
      
220
      
0.60
%
FHLB stock
    
8,130
      
305
      
5.02
%
    
6,528
      
197
      
4.03
%
Total interest earning assets(1)
    
3,161,544
      
116,696
      
4.93
%
    
2,694,071
      
90,634
      
4.49
%
Noninterest Earning Assets:
                                                
Cash and due from banks
    
51,695
                      
47,409
                  
Allowance for loan losses
    
(22,953
)
                    
(24,222
)
                
Other assets
    
260,517
                      
213,948
                  
Total noninterest earning assets
    
289,259
                      
237,135
                  
Total assets
  
$
3,450,803
                    
$
2,931,206
                  
Interest-bearing liabilities:
                                                
Interest bearing deposits:
                                                
Money market
  
$
806,036
    
$
3,396
      
0.56
%
  
$
588,283
    
$
1,630
      
0.52
%
Negotiable order of withdrawals
    
726,667
      
2,494
      
0.46
%
    
706,894
      
1,969
      
0.37
%
Savings deposits
    
146,291
      
173
      
0.16
%
    
178,817
      
427
      
0.37
%
Customer time deposits
    
413,739
      
2,010
      
0.65
%
    
351,120
      
1,375
      
0.52
%
Broker and internet time deposits
    
22,400
      
302
      
1.80
%
    
2,525
      
3
      
0.16
%
Time deposits
    
436,139
      
2,312
      
0.71
%
    
353,645
      
1,378
      
0.32
%
Total interest bearing deposits
    
2,115,133
      
8,375
      
0.53
%
    
1,827,639
      
5,404
      
0.39
%
Other interest-bearing liabilities:
                                                
FHLB advances
    
66,101
      
811
      
1.64
%
    
14,957
      
430
      
3.84
%
Other borrowings
    
17,296
      
31
      
0.24
%
    
88,838
      
48
      
0.07
%
Long-term debt
    
31,129
      
1,077
      
4.63
%
    
40,638
      
1,127
      
3.70
%
Total other interest-bearing liabilities
    
114,526
      
1,919
      
2.24
%
    
139,433
      
1,605
      
1.54
%
Total Interest-bearing liabilities
  
$
2,229,659
    
$
10,294
      
0.62
%
  
$
1,967,072
    
$
7,009
      
0.48
%
Noninterest bearing liabilities:
                                                
Demand deposits
  
$
754,819
                    
$
672,670
                  
Other liabilities
    
38,065
                      
31,980
                  
Total noninterest-bearing liabilities
    
792,884
                      
704,650
                  
Total liabilities
    
3,022,543
                      
2,671,722
                  
Shareholders' equity
    
428,260
                      
259,484
                  
Total liabilities and shareholders' equity
  
$
3,450,803
                    
$
2,931,206
                  
Net interest income (1)
          
$
106,402
                    
$
83,625
          
Interest rate spread (1)
                    
4.41
%
                    
4.10
%
Net interest margin (1)
                    
4.50
%
                    
4.15
%
Net interest margin (excluding accretion and nonaccrual interest recoveries) (1)
                    
0.00
%
                    
3.99
%
Average interest-earning assets to average interesting-bearing liabilities
                    
141.8
%
                    
137.0
%
Tax equivalent adjustment
          
$
2,114
                    
$
1,707
          
Loan yield components:
                                                
Contractual interest rate on loans held for investment (1)
          
$
78,513
      
5.01
%
          
$
60,640
      
4.68
%
Origination and other loan fee income
            
5,554
      
0.35
%
            
5,380
      
0.42
%
Accretion on purchased loans
            
3,562
      
0.23
%
            
3,195
      
0.25
%
Nonaccrual interest collections
            
2,050
      
0.13
%
            
741
      
0.06
%
Syndicated fee income
            
768
      
0.05
%
            
825
      
0.06
%
Total loan yield
          
$
90,447
      
5.77
%
          
$
70,781
      
5.46
%
                                                 
(1) Includes tax equivalent adjustment using combined rate of 39.225%
                          
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 9
 
Loans and Deposits by Market
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands)
  
                               
                               
   
2017
    
2016
  
   
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Loans by market
                              
Metropolitan
  
$
1,932,934
    
$
1,461,129
    
$
1,402,189
    
$
1,352,181
    
$
1,296,673
  
Community
    
779,810
      
476,320
      
473,453
      
468,245
      
465,946
  
Specialty lending and other
    
401,818
      
33,525
      
25,353
      
28,358
      
30,724
  
Total
  
$
3,114,562
    
$
1,970,974
    
$
1,900,995
    
$
1,848,784
    
$
1,793,343
  
Deposits by market
                                        
Metropolitan
    
2,180,673
      
1,598,574
      
1,553,931
      
1,554,929
    
$
1,496,718
  
Community
    
1,363,701
      
1,085,345
      
1,109,043
      
1,072,242
      
1,085,126
  
Mortgage and other (1)
    
174,164
      
43,674
      
38,225
      
44,391
      
58,228
  
Total
  
$
3,718,538
    
$
2,727,593
    
$
2,701,199
    
$
2,671,562
    
$
2,640,072
  
                                         
(1) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale deposits
  
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 10
 
Segment Data
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
 
                               
   
2017
    
2016
  
   
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Banking segment
                              
Net interest income
  
$
43,741
    
$
29,999
    
$
29,856
    
$
28,959
    
$
28,142
  
Provision for loan losses
    
(784
)
    
(865
)
    
(257
)
    
(752
)
    
71
  
Mortgage banking income- retail footprint
    
7,498
      
7,118
      
5,666
      
3,202
      
8,981
  
Other noninterest income
    
6,486
      
5,418
      
6,007
      
5,155
      
7,024
  
Other noninterest mortgage banking expenses
    
6,216
      
5,368
      
4,836
      
1,950
      
6,215
  
Merger and conversion expense
    
15,711
      
767
      
487
      
-
      
1,122
  
Other noninterest expense
    
27,540
      
23,199
      
23,424
      
23,080
      
24,448
  
Pre-tax income after allocations
  
$
9,042
    
$
14,066
    
$
13,039
    
$
13,038
    
$
12,291
  
Total assets
    
4,056,901
      
2,878,437
      
2,705,118
      
2,752,773
      
2,661,116
  
Intracompany funding income  included in net interest income
    
4,274
      
3,831
      
3,551
      
4,081
      
3,473
  
Core efficiency ratio*
    
56.16
%
    
60.42
%
    
64.41
%
    
62.57
%
    
65.22
%
Mortgage segment
                                        
Net interest income
  
$
(131
)
  
$
428
    
$
395
    
$
40
    
$
(525
)
Provision for loan losses
    
-
      
-
      
-
      
-
      
-
  
Noninterest income
    
23,836
      
23,121
      
19,414
      
22,975
      
27,957
  
Noninterest expense
    
19,757
      
19,802
      
17,670
      
22,256
      
23,744
  
Direct contribution
  
$
3,948
    
$
3,747
    
$
2,139
    
$
759
    
$
3,688
  
Total assets
    
525,042
      
468,133
      
461,341
      
524,108
      
526,064
  
Intracompany funding expense included in net interest income
    
4,274
      
3,831
      
3,551
      
4,081
      
3,473
  
Core efficiency ratio*
    
79.89
%
    
78.33
%
    
88.73
%
    
92.50
%
    
76.34
%
Interest rate lock commitments volume during the period
                                        
Consumer direct
  
$
786,034
    
$
780,179
    
$
616,330
    
$
645,896
    
$
1,019,557
  
Third party origination (TPO)
    
269,473
      
296,034
      
258,996
      
228,982
      
248,092
  
Retail
    
325,295
      
379,530
      
282,698
      
256,812
      
329,527
  
Correspondent
    
619,953
      
701,846
      
440,206
      
331,622
      
221,562
  
Total
  
$
2,000,755
    
$
2,157,589
    
$
1,598,230
    
$
1,463,312
    
$
1,818,738
  
Interest rate lock commitments pipeline (period end)
                                        
Consumer direct
  
$
261,617
    
$
222,504
    
$
158,393
    
$
307,699
    
$
573,636
  
Third party origination (TPO)
    
93,353
      
88,938
      
101,509
      
79,967
      
97,353
  
Retail
    
101,196
      
119,158
      
93,184
      
77,033
      
107,419
  
Correspondent
    
84,506
      
115,919
      
95,923
      
68,221
      
72,092
  
Total
  
$
540,672
    
$
546,519
    
$
449,009
    
$
532,920
    
$
850,500
  
Mortgage sales
                                        
Consumer direct
  
$
485,931
    
$
498,997
    
$
647,535
    
$
777,169
    
$
607,905
  
Third party origination (TPO)
    
194,164
      
209,185
      
199,160
      
191,420
      
194,440
  
Retail
    
71,358
      
66,640
      
61,425
      
66,967
      
65,970
  
Retail footprint
    
222,786
      
200,157
      
186,988
      
195,280
      
191,195
  
Reverse
    
17,520
      
17,870
      
22,337
      
24,422
      
18,946
  
Correspondent
    
646,003
      
542,410
      
373,822
      
291,651
      
91,306
  
Total
  
$
1,637,762
    
$
1,535,259
    
$
1,491,267
    
$
1,546,909
    
$
1,169,762
  
Gains and fees from origination and sale of mortgage loans held for sale
  
$
29,570
    
$
23,920
    
$
27,577
    
$
29,518
    
$
25,477
  
Net change in fair value of loans held for sale and derivatives
    
(806
)
    
5,412
      
(4,744
)
    
(7,092
)
    
7,800
  
Change in fair value of mortgage servicing rights
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Mortgage servicing income
    
3,463
      
2,747
      
2,748
      
3,751
      
3,661
  
Total mortgage banking income
  
$
31,334
    
$
30,239
    
$
25,080
    
$
26,177
    
$
36,938
  
Mortgage sale margin (a)
    
1.81
%
    
1.56
%
    
1.85
%
    
1.91
%
    
2.18
%
                                         
*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.
  
                                         
(a) Calculated by dividing gains from sale of mortgage loans held for sale by total mortgage sales
  
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 11
 
Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %) 
                                                             
   
2017
    
2016
  
   
September 30,
2017
    
% of
Total
    
June 30,
2017
    
% of
Total
    
March 31,
2017
    
% of
Total
    
December
31,
2016
    
% of
Total
    
September 30,
2016
    
% of
Total
  
Loan portfolio
                                                            
Commercial and industrial
  
$
731,588
      
23
%
  
$
423,704
      
21
%
  
$
399,333
      
21
%
  
$
386,233
      
21
%
  
$
360,816
      
20
%
Construction
    
435,414
      
14
%
    
282,727
      
14
%
    
267,998
      
14
%
    
245,905
      
13
%
    
234,486
      
13
%
Residential real estate:
                                                                                
1-to-4 family mortgage
    
459,467
      
15
%
    
307,152
      
16
%
    
302,166
      
16
%
    
294,924
      
16
%
    
286,605
      
16
%
Residential line of credit
    
188,392
      
6
%
    
177,783
      
9
%
    
177,928
      
9
%
    
177,190
      
10
%
    
173,898
      
10
%
Multi-family mortgage
    
74,004
      
2
%
    
52,810
      
3
%
    
45,244
      
2
%
    
44,977
      
2
%
    
54,129
      
3
%
Commercial real estate:
                                                                                
Owner occupied
    
473,395
      
15
%
    
371,462
      
19
%
    
359,120
      
19
%
    
357,346
      
19
%
    
370,326
      
21
%
Non-owner occupied
    
521,416
      
17
%
    
273,285
      
14
%
    
273,716
      
15
%
    
267,902
      
15
%
    
237,550
      
13
%
Consumer and other
    
230,886
      
7
%
    
82,051
      
4
%
    
75,490
      
4
%
    
74,307
      
4
%
    
75,533
      
4
%
Total loans held for investment
  
$
3,114,562
      
100
%
  
$
1,970,974
      
100
%
  
$
1,900,995
      
100
%
  
$
1,848,784
      
100
%
  
$
1,793,343
      
100
%
                                                                                 
Allowance for loan losses rollforward summary
                                                                  
Allowance for loan losses at the beginning of the period
  
$
23,247
            
$
22,898
            
$
21,747
            
$
23,290
            
$
23,734
          
Charge-off's
    
(575
)
            
(791
)
            
(442
)
            
(1,230
)
            
(714
)
        
Recoveries
    
1,594
              
2,005
              
1,850
              
439
              
199
          
Provision for loan losses
    
(784
)
            
(865
)
            
(257
)
            
(752
)
            
71
          
Allowance for loan losses at the end of the period
  
$
23,482
            
$
23,247
            
$
22,898
            
$
21,747
            
$
23,290
          
                                                                                 
Allowance for loan losses as a percentage of total loans held for investment
    
0.75
%
            
1.18
%
            
1.20
%
            
1.18
%
            
1.30
%
        
                                                                                 
Charge-offs
                                                                                
Commercial and Industrial
  
$
(221
)
          
$
(131
)
          
$
(169
)
          
$
(6
)
          
$
(358
)
        
Construction
    
-
              
-
              
(6
)
            
-
              
-
          
Residential real estate:
                                                                                
1-to-4 family mortgage
    
(32
)
            
(35
)
            
(88
)
            
(5
)
            
(166
)
        
Residential line of credit
    
(9
)
            
(195
)
            
-
              
(28
)
            
(29
)
        
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
(64
)
            
-
              
-
              
(156
)
            
-
          
Non-owner occupied
    
-
              
-
              
-
              
(527
)
            
-
          
Consumer and other
    
(249
)
            
(430
)
            
(179
)
            
(508
)
            
(161
)
        
Total Charge Offs:
    
(575
)
            
(791
)
            
(442
)
            
(1,230
)
            
(714
)
        
Recoveries
                                                                                
Commercial and Industrial
    
200
              
1,511
              
83
              
44
              
8
          
Construction
    
1,022
              
29
              
29
              
79
              
32
          
Residential real estate:
                                                                                
1-to-4 family mortgage
    
86
              
14
              
26
              
18
              
2
          
Residential line of credit
    
157
              
155
              
56
              
31
              
36
          
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
24
              
11
              
4
              
125
              
4
          
Non-owner occupied
    
1
              
2
              
1,639
              
168
              
22
          
Consumer and other
    
104
              
283
              
13
              
(26
)
            
95
          
Total Recoveries:
    
1,594
              
2,005
              
1,850
              
439
              
199
          
Net recoveries (charge-off's)
  
$
1,019
            
$
1,214
            
$
1,408
            
$
(791
)
          
$
(515
)
        
                                                                                 
Net recoveries (charge-off's) as a percentage of average total loans
    
0.15
%
            
0.25
%
            
0.31
%
            
(0.17
%)
            
(0.12
%)
        
                                                                                 
Loans classified as substandard
  
$
59,588
            
$
37,858
            
$
37,556
            
$
38,585
            
$
40,056
          
Purchased credit impaired loans
  
$
92,455
            
$
15,733
            
$
16,099
            
$
16,058
            
$
16,639
          
                                                                                 
Nonperforming assets (b)
                                                                                
Past due 90 days or more and accruing interest
  
$
1,238
            
$
1,619
            
$
1,590
            
$
1,329
            
$
1,342
          
Nonaccrual
    
7,749
              
8,327
              
7,706
              
8,729
              
9,622
          
Total nonperforming loans held for investment
  
$
8,987
            
$
9,946
            
$
9,296
            
$
10,058
            
$
10,964
          
Loans held for sale (a)
    
13,575
              
-
              
-
              
-
              
-
          
Other real estate owned- foreclosed
    
10,205
              
6,370
              
6,811
              
7,403
              
8,964
          
Other real estate owned- acquired excess facilities
    
3,607
              
-
              
-
              
-
              
-
          
Other assets
    
3,967
              
3,154
              
1,654
              
1,654
              
1,654
          
Total nonperforming assets
  
$
40,341
            
$
19,470
            
$
17,761
            
$
19,115
            
$
21,582
          
Total nonperforming loans as a percentage of loans held for investment
    
0.29
%
            
0.50
%
            
0.49
%
            
0.57
%
            
0.61
%
        
Total nonperforming assets as a percentage of total assets
    
0.88
%
            
0.58
%
            
0.56
%
            
0.58
%
            
0.68
%
        
Total accruing loans over 90 days delinquent as a percentage of total assets
    
0.03
%
            
0.05
%
            
0.05
%
            
0.04
%
            
0.04
%
        
Loans restructured as troubled debt restructurings
  
$
8,095
            
$
8,488
            
$
8,681
            
$
8,802
            
$
10,125
          
Troubled debt restructurings as a percentage of loans held for investment
    
0.26
%
            
0.43
%
            
0.46
%
            
0.48
%
            
0.56
%
        
                                                                                 
(a) Represents right to repurchase government guaranteed GNMA mortgage loans previously sold and internally serviced. The Bank has not exercised and does not expect to exercise the repurchase option.
  
(b) Nonperforming assets excludes purchased credit impaired loans 
  
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 12
 
Capital Ratios
  
(Unaudited)
  
(In Thousands, Except %)
  
             
             
Computation of Tangible Common Equity to Tangible Assets:
  
September 30, 2017
    
December 31, 2016
  
             
Total Equity
  
$
572,528
    
$
330,498
  
Less:                
Goodwill
    
138,910
      
46,867
  
Other intangibles
    
13,122
      
4,563
  
Tangible Common Equity
  
$
420,496
    
$
279,068
  
                 
Total Assets
  
$
4,581,943
    
$
3,276,881
  
Less:                
Goodwill
    
138,910
      
46,867
  
Other intangibles
    
13,122
      
4,563
  
Tangible Assets
  
$
4,429,911
    
$
3,225,451
  
                 
Total Common Equity to Total Assets
    
12.50
%
    
10.09
%
Tangible Common Equity to Tangible Assets*
    
9.49
%
    
8.65
%
                 
                 
   
September 30, 2017
    
December 31, 2016
  
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1 Capital
  
$
427,878
    
$
287,146
  
Tier 1 Capital
  
$
457,878
    
$
317,146
  
Total Capital
  
$
481,360
    
$
338,893
  
                 
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1
    
10.83
%
    
11.04
%
Tier 1 Risk-Based
    
11.59
%
    
12.19
%
Total Risk-Based
    
12.19
%
    
13.03
%
Tier 1 Leverage
    
11.35
%
    
10.05
%
                 
*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
Third Quarter 2017
Supplemental Financial Information
Page 13
 
Investment Portfolio
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                                             
                                                             
   
2017
    
2016
  
Securities available for sale (at fair value)
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Debt securities
                                                            
U.S. government agency securities
  
$
992
      
0
%
  
$
990
      
0
%
  
$
987
      
0
%
  
$
985
      
0
%
  
$
2,501
      
0
%
Mortgage-backed securities - residential
    
418,794
      
77
%
    
410,708
      
74
%
    
425,943
      
75
%
    
443,908
      
76
%
    
433,564
      
78
%
Municipals, tax exempt
    
106,950
      
20
%
    
122,698
      
22
%
    
120,560
      
21
%
    
116,923
      
20
%
    
104,112
      
19
%
Treasury securities
    
8,819
      
2
%
    
10,310
      
2
%
    
11,773
      
2
%
    
11,757
      
2
%
    
4,506
      
1
%
Total debt securities
    
535,555
      
99
%
    
544,706
      
98
%
    
559,263
      
98
%
    
573,573
      
98
%
    
544,683
      
98
%
Equity securities
    
7,727
      
1
%
    
8,651
      
2
%
    
8,623
      
2
%
    
8,610
      
2
%
    
8,674
      
2
%
Total securities available-for-sale
  
$
543,282
      
100
%
  
$
553,357
      
100
%
  
$
567,886
      
100
%
  
$
582,183
      
100
%
  
$
553,357
      
100
%
                                                                                 
Securities available for sale to total assets
    
11.86
%
            
16.54
%
            
17.93
%
            
17.77
%
            
17.36
%
        
 
 
FB Financial Corporation
Third Quarter 2017
Supplemental Financial Information
Page 14
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)  
                               
   
2017
    
2016
  
Pro forma core net income
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Pre-tax net income
  
$
12,990
    
$
17,813
    
$
15,178
    
$
13,797
    
$
15,979
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights, net
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Less gain from securities, net
    
254
      
29
      
1
      
-
      
416
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(314
)
    
62
      
748
      
(349
)
    
1,653
  
Noninterest expenses
                                        
Plus one-time equity grants
    
-
      
-
      
-
      
-
      
2,960
  
Plus variable compensation charge related to cash settled equity awards
    
-
      
-
      
635
      
1,041
      
213
  
Plus merger and conversion
    
15,711
      
767
      
487
      
-
      
1,122
  
Plus (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
(3,411
)
    
2,402
  
Plus loss on sale of mortgage servicing rights
    
-
      
249
      
-
      
4,447
      
-
  
Pre tax core net income
  
$
29,654
    
$
20,578
    
$
16,052
    
$
16,223
    
$
20,607
  
Pro forma core income tax expense
    
11,138
      
7,659
      
5,768
      
5,739
      
7,672
  
Pro forma core net income
  
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
    
$
12,935
  
Weighted average common shares outstanding fully diluted
    
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
      
18,332,192
  
                                         
Pro forma core diluted earnings per share
                                        
Diluted earning per share
  
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
    
$
0.07
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights
    
(0.03
)
    
(0.07
)
    
(0.02
)
    
-
      
-
  
Less gain from securities, net
    
0.01
      
0.00
      
0.00
      
0.00
      
0.02
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(0.01
)
    
0.00
      
0.03
      
(0.01
)
    
0.09
  
                                         
Noninterest expenses
                                        
Plus one-time equity grants
    
-
      
-
      
-
      
-
      
0.16
  
Plus variable compensation charge related to cash settled equity awards
    
-
      
-
      
0.03
      
0.04
      
0.01
  
Plus merger and conversion
    
0.51
      
0.03
      
0.02
      
-
      
0.06
  
Plus (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
(0.14
)
    
0.13
  
Plus loss on sale of mortgage servicing rights
    
-
      
0.01
      
-
      
0.18
      
-
  
Tax effect
    
(0.2
)
    
(0.0
)
    
(0.0
)
    
(0.04
)
    
0.39
  
Pro forma core diluted earnings per share
  
$
0.60
    
$
0.49
    
$
0.42
    
$
0.43
    
$
0.71
  
                                         
                                         
                                         
     
2017
      
2016
  
Core efficiency ratio (tax-equivalent basis)
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Total noninterest expense
  
$
69,224
    
$
49,136
    
$
46,417
    
$
47,319
    
$
55,249
  
Less one-time equity grants
    
-
      
-
      
-
      
-
      
2,960
  
Less variable compensation charge related to cash settled equity awards
    
-
      
-
      
635
      
1,041
      
213
  
Less merger and conversion expenses
    
15,711
      
767
      
487
      
-
      
1,122
  
Less (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
(3,411
)
    
2,402
  
Less loss on sale of mortgage servicing rights
    
-
      
249
      
-
      
4,447
      
-
  
Core noninterest expense
  
$
53,513
    
$
48,120
    
$
45,295
    
$
45,242
    
$
48,832
  
Net interest income (tax-equivalent basis)
    
44,281
      
31,158
      
30,963
      
29,686
      
28,213
  
Total noninterest income
    
37,820
      
35,657
      
31,087
      
31,332
      
43,962
  
Less change in fair value on mortgage servicing rights
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(314
)
    
62
      
748
      
(349
)
    
1,653
  
 Less gain from securities, net
    
254
      
29
      
1
      
-
      
416
  
Core noninterest income
    
38,773
      
37,406
      
30,839
      
31,681
      
41,893
  
Core revenue
  
$
83,054
    
$
68,564
    
$
61,802
    
$
61,367
    
$
70,106
  
Efficiency ratio (GAAP)(1)
    
85.01
%
    
74.35
%
    
75.67
%
    
78.39
%
    
77.58
%
Core efficiency ratio (tax-equivalent basis)
    
64.43
%
    
70.18
%
    
73.29
%
    
73.72
%
    
69.65
%
                                         
(1) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue
  
 
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                               
   
2017
    
2016
  
Banking segment core efficiency ratio (tax equivalent)
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Core consolidated noninterest expense
  
$
53,513
    
$
48,120
    
$
45,295
    
$
45,242
    
$
48,832
  
Less Mortgage segment noninterest expense
    
19,757
      
19,802
      
17,670
      
22,256
      
23,744
  
Add (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
(3,411
)
    
2,402
  
Add loss on sale of mortgage servicing rights
    
-
      
249
      
-
      
4,447
      
-
  
Adjusted Banking segment noninterest expense
    
33,756
      
28,567
      
27,625
      
24,022
      
27,490
  
Adjusted core revenue
    
83,054
      
68,564
      
61,802
      
61,367
      
70,106
  
Less Mortgage segment noninterest income
    
23,836
      
23,121
      
19,414
      
22,975
      
27,957
  
Less change in fair value on mortgage servicing rights
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Adjusted Banking segment total revenue
  
$
60,111
    
$
47,283
    
$
42,889
    
$
38,392
    
$
42,149
  
Banking segment core efficiency ratio (tax-equivalent basis)
    
56.16
%
    
60.42
%
    
64.41
%
    
62.57
%
    
65.22
%
                                         
Mortgage segment core efficiency ratio (tax equivalent)
                                        
Consolidated Noninterest expense
  
$
69,224
    
$
49,136
    
$
46,417
    
$
47,319
    
$
55,529
  
Less impairment of mortgage servicing rights
    
-
      
-
      
-
      
(3,411
)
    
2,402
  
Less loss on sale of mortgage servicing rights
    
-
      
249
      
-
      
4,447
      
-
  
Less Banking segment noninterest expense
    
49,467
      
29,334
      
28,747
      
25,030
      
31,785
  
Adjusted Mortgage segment noninterest expense
  
$
19,757
    
$
19,553
    
$
17,670
    
$
21,253
    
$
21,342
  
Total noninterest income
    
37,820
      
35,657
      
31,087
      
31,332
      
43,962
  
Less Banking segment noninterest income
    
13,984
      
12,536
      
11,673
      
8,357
      
16,005
  
Less change in fair value on mortgage servicing rights
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Adjusted Mortgage segment total revenue
  
$
24,729
    
$
24,961
    
$
19,915
    
$
22,975
    
$
27,957
  
Mortgage segment core efficiency ratio (tax-equivalent basis)
    
79.89
%
    
78.33
%
    
88.73
%
    
92.50
%
    
76.34
%
                                         
                                         
     
2017
      
2016
  
Tangible assets and equity
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Tangible Assets
                                        
Total assets
  
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
    
$
3,187,180
  
Less goodwill
    
138,910
      
46,867
      
46,867
      
46,867
      
46,867
  
Less core deposit intangibles
    
12,550
      
4,048
      
4,171
      
4,563
      
5,090
  
Tangible assets
  
$
4,430,483
    
$
3,295,655
    
$
3,115,421
    
$
3,255,451
    
$
3,135,223
  
Tangible Common Equity
                                        
Total shareholders' equity
  
$
572,528
    
$
509,517
    
$
342,142
    
$
330,498
    
$
329,108
  
Less goodwill
    
138,910
      
46,867
      
46,867
      
46,867
      
46,867
  
Less core deposit intangibles
    
12,550
      
4,048
      
4,171
      
4,563
      
5,090
  
Tangible common equity
  
$
421,068
    
$
458,602
    
$
291,104
    
$
279,068
    
$
277,151
  
Common shares outstanding
    
30,526,592
      
28,968,160
      
24,154,323
      
24,107,660
      
23,975,122
  
Book value per common share
  
$
18.76
    
$
17.59
    
$
14.16
    
$
13.71
    
$
13.73
  
Tangible book value per common share
  
$
13.79
    
$
15.83
    
$
12.05
    
$
11.58
    
$
11.56
  
Total shareholders' equity to total assets
    
12.50
%
    
15.23
%
    
10.81
%
    
10.09
%
    
10.33
%
Tangible common equity to tangible assets
    
9.50
%
    
13.92
%
    
9.34
%
    
8.65
%
    
8.84
%
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
1,207
  
Return on tangible common equity
    
7.90
%
    
9.83
%
    
13.59
%
    
12.84
%
    
1.73
%
                                         
                                         
     
2017
      
2016
  
Return on average tangible common equity
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Total average shareholders' equity
  
$
550,409
    
$
398,805
    
$
333,178
    
$
318,986
    
$
276,549
  
Less average goodwill
    
108,220
      
46,839
      
46,839
      
46,839
      
46,839
  
Less average core deposit intangibles
    
9,983
      
4,124
      
4,353
      
4,694
      
5,402
  
Average tangible common equity
  
$
432,206
    
$
347,842
    
$
281,986
    
$
267,453
    
$
224,308
  
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
1,207
  
Return on average tangible common equity
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
    
2.14
%
                                         
                                         
     
2017
      
2016
  
Pro forma return on average tangible common equity
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Average tangible common equity
  
$
432,206
    
$
347,842
    
$
281,986
    
$
267,453
    
$
224,308
  
Pro forma net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
10,033
  
Pro forma return on average tangible common equity
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
    
17.79
%
 
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                               
   
2017
    
2016
  
Pro forma core return on average tangible equity
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Pre-tax pro forma net income
  
$
12,990
    
$
17,813
    
$
15,178
    
$
13,797
    
$
15,979
  
Adjustments:
                                        
Add non-core items
    
16,664
      
2,765
      
874
      
2,426
      
4,628
  
Less pro forma core income tax expense
    
11,138
      
7,659
      
5,768
      
5,739
      
7,672
  
Pro forma core net income
  
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
    
$
12,935
  
Pro forma core return on average tangible common equity
    
17.00
%
    
14.90
%
    
14.79
%
    
15.60
%
    
22.94
%
                                         
     
2017
      
2016
  
Pro forma core return on average assets and equity
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Net income
  
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
$
1,207
  
Average assets
    
4,162,478
      
3,224,783
      
3,172,149
      
3,206,398
      
3,015,670
  
Average equity
    
550,409
      
398,805
      
333,178
      
318,986
      
276,549
  
Return on average assets
    
0.80
%
    
1.40
%
    
1.25
%
    
1.12
%
    
0.16
%
Return on average equity
    
6.05
%
    
11.30
%
    
11.87
%
    
11.24
%
    
1.74
%
Pro forma core net income
    
18,516
      
12,919
      
10,284
      
10,484
      
12,935
  
Pro forma core return on average assets
    
1.76
%
    
1.61
%
    
1.31
%
    
1.30
%
    
1.71
%
Pro forma core return on average equity
    
13.35
%
    
12.99
%
    
12.52
%
    
13.08
%
    
18.61
%
                                         
                                         
     
2017
      
2016
  
Pro forma core total revenue
  
Third Quarter
    
Second Quarter
    
First Quarter
    
Fourth Quarter
    
Third Quarter
  
Net interest income
  
$
43,610
    
$
30,427
    
$
30,251
    
$
29,032
    
$
27,617
  
Noninterest income
    
37,820
      
35,657
      
31,087
      
31,332
      
43,962
  
Less adjustments:
                                        
Change in fair value of mortgage servicing rights
    
(893
)
    
(1,840
)
    
(501
)
    
-
      
-
  
Gain from securities, net
    
254
      
29
      
1
      
-
      
416
  
(Loss) gain on sales or write-downs of other real estate owned and other assets
    
(314
)
    
62
      
748
      
(349
)
    
1,653
  
Pro forma core total revenue
  
$
82,383
    
$
67,833
    
$
61,090
    
$
60,713
    
$
69,510