FB Financial Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 23, 2018

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EX-99.1 - EXHIBIT 99.1 - FB Financial Corpa51793370ex99_1.htm
Exhibit 99.2
FB Financial Corporation
First Quarter 2018
Supplemental Financial Information
Page 1
 
Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
                               
   
2018
    
2017
  
   
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Statement of Income Data
                              
Total interest income
  
$
54,848
    
$
55,031
    
$
48,415
    
$
33,278
    
$
32,889
  
Total interest expense
    
6,419
      
6,048
      
4,805
      
2,851
      
2,638
  
Net interest income
    
48,429
      
48,983
      
43,610
      
30,427
      
30,251
  
Provision for loan losses
    
317
      
956
      
(784
)
    
(865
)
    
(257
)
Total noninterest income
    
33,275
      
37,017
      
37,820
      
35,657
      
31,087
  
Total noninterest expense
    
56,151
      
57,540
      
69,224
      
49,136
      
46,417
  
Net income before income taxes
    
25,236
      
27,504
      
12,990
      
17,813
      
15,178
  
Income tax expense
    
5,482
      
4,486
      
4,602
      
6,574
      
5,425
  
Net income
  
$
19,754
    
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
  
Net interest income (tax—equivalent basis)
  
$
48,799
    
$
49,692
    
$
44,281
    
$
31,158
    
$
30,963
  
Net income, adjusted*
  
$
20,636
    
$
18,265
    
$
15,964
    
$
12,854
    
$
10,232
  
Per Common Share
                                        
Diluted net income
  
$
0.63
    
$
0.74
    
$
0.27
    
$
0.43
    
$
0.40
  
Net income, adjusted- diluted*
  
$
0.66
    
$
0.59
    
$
0.52
    
$
0.49
    
$
0.42
  
Book value
    
19.92
      
19.54
      
18.76
      
17.59
      
14.16
  
Tangible book value*
    
14.99
      
14.56
      
13.79
      
15.83
      
12.05
  
Weighted average number of shares-diluted
    
31,421,830
      
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
  
Period-end number of shares
    
30,671,763
      
30,535,517
      
30,526,592
      
28,968,160
      
24,154,323
  
Selected Balance Sheet Data
                                        
Cash and due from banks
  
$
53,060
    
$
29,831
    
$
67,070
    
$
59,112
    
$
53,748
  
Loans held for investment
    
3,244,663
      
3,166,911
      
3,114,562
      
1,970,974
      
1,900,995
  
Allowance for loan losses
    
(24,406
)
    
(24,041
)
    
(23,482
)
    
(23,247
)
    
(22,898
)
Loans held for sale
    
414,518
      
526,185
      
466,369
      
427,416
      
365,173
  
Investment securities, at fair value
    
597,347
      
543,992
      
543,282
      
553,357
      
567,886
  
Other real estate owned, net
    
15,334
      
16,442
      
13,812
      
6,370
      
6,811
  
Total assets
    
4,725,416
      
4,727,713
      
4,581,943
      
3,346,570
      
3,166,459
  
Customer deposits
    
3,684,758
      
3,578,694
      
3,614,220
      
2,726,060
      
2,699,868
  
Brokered and internet time deposits
    
81,393
      
85,701
      
104,318
      
1,533
      
1,331
  
Total deposits
    
3,766,151
      
3,664,395
      
3,718,538
      
2,727,593
      
2,701,199
  
Borrowings
    
278,293
      
333,302
      
196,299
      
43,790
      
44,552
  
Total shareholders' equity
    
611,036
      
596,729
      
572,528
      
509,517
      
342,142
  
Selected Ratios
                                        
Return on average:
                                        
Assets
    
1.71
%
    
1.96
%
    
0.80
%
    
1.40
%
    
1.25
%
Shareholders' equity
    
13.37
%
    
15.78
%
    
6.05
%
    
11.30
%
    
11.87
%
Tangible common equity*
    
17.90
%
    
21.34
%
    
7.70
%
    
12.96
%
    
14.03
%
Average shareholders' equity to average assets
    
12.81
%
    
12.41
%
    
13.22
%
    
12.37
%
    
10.50
%
Net interest margin (NIM) (tax-equivalent basis)
    
4.64
%
    
4.63
%
    
4.61
%
    
4.19
%
    
4.28
%
Efficiency ratio (GAAP)
    
68.72
%
    
66.91
%
    
85.01
%
    
74.35
%
    
75.67
%
Core efficiency ratio (tax-equivalent basis)*
    
65.46
%
    
63.55
%
    
64.43
%
    
70.18
%
    
73.29
%
Loans held for investment to deposit ratio
    
86.15
%
    
86.42
%
    
83.76
%
    
72.26
%
    
70.38
%
Total loans to deposit ratio
    
97.16
%
    
100.78
%
    
96.30
%
    
87.93
%
    
83.89
%
Yield on interest-earning assets
    
5.25
%
    
5.20
%
    
5.10
%
    
4.57
%
    
4.65
%
Cost of interest-bearing liabilities
    
0.85
%
    
0.79
%
    
0.71
%
    
0.55
%
    
0.51
%
Cost of total deposits
    
0.55
%
    
0.50
%
    
0.46
%
    
0.34
%
    
0.32
%
Credit Quality Ratios
                                        
Allowance for loan losses as a percentage of loans held for investment
    
0.75
%
    
0.76
%
    
0.75
%
    
1.18
%
    
1.20
%
Net (charge-off's) recoveries as a percentage of average loans
                                        
      held for investment
    
0.01
%
    
(0.05
)%
    
0.15
%
    
0.25
%
    
0.31
%
Nonperforming loans held for investment as a percentage of total loans
                                        
      held for investments
    
0.30
%
    
0.32
%
    
0.29
%
    
0.50
%
    
0.49
%
Nonperforming assets as a percentage of total assets (a)
    
0.59
%
    
1.52
%
    
0.88
%
    
0.58
%
    
0.56
%
Preliminary capital ratios (Consolidated)
                                        
Shareholders' equity to assets
    
12.93
%
    
12.62
%
    
12.50
%
    
15.23
%
    
10.81
%
Tangible common equity to tangible assets*
    
10.05
%
    
9.72
%
    
9.50
%
    
13.92
%
    
9.34
%
Tier 1 capital (to average assets)
    
10.67
%
    
10.46
%
    
11.35
%
    
15.54
%
    
10.46
%
Tier 1 capital (to risk-weighted assets)
    
11.73
%
    
11.43
%
    
11.58
%
    
18.28
%
    
12.87
%
Total capital (to risk-weighted assets)
    
12.33
%
    
12.01
%
    
12.18
%
    
19.14
%
    
13.76
%
Common Equity Tier 1 (to risk-weighted assets) (CET1)
    
11.00
%
    
10.71
%
    
10.82
%
    
17.16
%
    
11.69
%
 
*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.
  
                                         
                                         
(a) Includes marketable equity securities received in satisfaction of a previously charged-off loan and excess land and facilities held for sale. Additionally, for the three months ended December 31 and September 30, 2017, GNMA loans subject to ability to repurchase were included. In the current quarter the Company has discontinued this practice as the perceived benefit has decreased with rising rates.
  
 
FB Financial Corporation
First Quarter 2018
Supplemental Financial Information
Page 2
 
Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
 
 
                                           
   
 
 
2018
    
2017      
      
Q1 2018
vs.
Q4 2017
      
Q1 2018
vs.
Q1 2017
  
 
 
First Quarter
    
 
Fourth Quarter
    
 
Third Quarter
    
 
Second Quarter
    
 
First Quarter
    
    Percent
    variance
    
    Percent
    variance
  
Interest income:
                                              
    Interest and fees on loans
  
$
50,693
    
$
51,246
    
$
44,367
    
$
29,350
    
$
29,006
      
-1.08
%
    
74.77
%
    Interest on securities
                                                        
      Taxable
    
2,852
      
2,529
      
2,399
      
2,589
      
2,567
      
12.77
%
    
11.10
%
      Tax-exempt
    
925
      
910
      
988
      
1,068
      
1,040
      
1.65
%
    
-11.06
%
    Other
    
378
      
346
      
661
      
271
      
276
      
9.25
%
    
36.96
%
     Total interest income
    
54,848
      
55,031
      
48,415
      
33,278
      
32,889
      
-0.33
%
    
66.77
%
Interest expense:
                                                        
    Deposits
                                                        
       Demand and savings accounts
    
3,315
      
3,209
      
2,829
      
1,703
      
1,531
      
3.30
%
    
116.53
%
       Time deposits
    
1,756
      
1,447
      
1,125
      
604
      
583
      
21.35
%
    
201.20
%
    Short-term borrowings
    
25
      
11
      
9
      
12
      
10
      
127.27
%
    
150.00
%
    Long-term debt
    
1,323
      
1,381
      
842
      
532
      
514
      
-4.20
%
    
157.39
%
 Total interest expense
    
6,419
      
6,048
      
4,805
      
2,851
      
2,638
      
6.13
%
    
143.33
%
Net interest income
    
48,429
      
48,983
      
43,610
      
30,427
      
30,251
      
-1.13
%
    
60.09
%
Provision for loan losses
    
317
      
956
      
(784
)
    
(865
)
    
(257
)
    
-66.84
%
    
-223.35
%
Net interest income after provision for loan losses
    
48,112
      
48,027
      
44,394
      
31,292
      
30,508
      
0.18
%
    
57.70
%
Noninterest income:
                                                        
Mortgage banking income
    
26,471
      
30,280
      
31,334
      
30,239
      
25,080
      
-12.58
%
    
5.55
%
Service charges on deposit accounts
    
2,097
      
2,181
      
2,044
      
1,796
      
1,766
      
-3.85
%
    
18.74
%
ATM and interchange fees
    
2,361
      
2,430
      
2,222
      
2,085
      
2,047
      
-2.84
%
    
15.34
%
Investment services and trust income
    
1,206
      
1,154
      
1,078
      
903
      
814
      
4.51
%
    
48.16
%
(Loss) gain from securities, net
    
(47
)
    
1
      
254
      
29
      
1
      
-4800.00
%
    
-4800.00
%
(Loss) gain on sales or write-downs of other real estate owned
    
(186
)
    
(72
)
    
(368
)
    
23
      
748
      
158.33
%
    
-124.87
%
Gain (loss) from other assets
    
68
      
(314
)
    
54
      
39
      
-
      
-121.66
%
    
100.00
%
Other income
    
1,305
      
1,357
      
1,202
      
543
      
631
      
-3.83
%
    
106.81
%
Total noninterest income
    
33,275
      
37,017
      
37,820
      
35,657
      
31,087
      
-10.11
%
    
7.04
%
Total revenue
    
81,704
      
86,000
      
81,430
      
66,084
      
61,338
      
-5.00
%
    
33.20
%
Noninterest expenses:
                                                        
Salaries, commissions and employee benefits
    
34,149
      
35,771
      
34,795
      
30,783
      
29,006
      
-4.53
%
    
17.73
%
Occupancy and equipment expense
    
3,605
      
3,881
      
3,539
      
3,307
      
3,109
      
-7.11
%
    
15.95
%
Legal and professional fees
    
2,043
      
1,764
      
1,512
      
1,033
      
1,428
      
15.82
%
    
43.07
%
Data processing
    
2,035
      
1,766
      
1,761
      
1,460
      
1,501
      
15.23
%
    
35.58
%
Merger and conversion
    
1,193
      
2,069
      
15,711
      
767
      
487
      
-42.34
%
    
144.97
%
Amortization of core deposits and other intangibles
    
853
      
922
      
558
      
123
      
392
      
-7.48
%
    
117.60
%
Loss on sale of mortgage servicing rights
    
-
      
-
      
-
      
249
      
-
      
0.00
%
    
0.00
%
Regulatory fees and deposit insurance assessments
    
562
      
571
      
549
      
494
      
435
      
-1.58
%
    
29.20
%
Software license and maintenance fees
    
467
      
529
      
523
      
364
      
457
      
-11.72
%
    
2.19
%
Advertising
    
3,282
      
3,189
      
3,493
      
3,343
      
2,932
      
2.92
%
    
11.94
%
Other expense
    
7,962
      
7,078
      
6,783
      
7,213
      
6,670
      
12.49
%
    
19.37
%
Total noninterest expense
    
56,151
      
57,540
      
69,224
      
49,136
      
46,417
      
-2.41
%
    
20.97
%
    Income before income taxes
    
25,236
      
27,504
      
12,990
      
17,813
      
15,178
      
-8.25
%
    
66.27
%
Income tax expense
    
5,482
      
4,486
      
4,602
      
6,574
      
5,425
      
22.20
%
    
1.05
%
    Net income
  
$
19,754
    
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
      
-14.18
%
    
102.54
%
Weighted average common shares outstanding:
                                                        
Basic
    
30,613,284
      
30,527,234
      
30,004,952
      
25,741,968
      
24,138,437
                  
Fully diluted
    
31,421,830
      
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
                  
Earnings per share
                                                        
Basic
  
$
0.65
    
$
0.75
    
$
0.28
    
$
0.44
    
$
0.40
                  
Fully diluted
    
0.63
      
0.74
      
0.27
      
0.43
      
0.40
                  
 
FB Financial Corporation
First Quarter 2018
Supplemental Financial Information
Page 3
 
Consolidated Balance Sheets
(Unaudited)
(In Thousands, %)
 
 
                                           
                                 
Annualized
         
                                  Q1 2018     Q1 2018  
                                 
vs.
    
vs.
  
   
2018
    
2017
   Q4 2017     Q1 2017  
   
 
First Quarter
    
 
Fourth Quarter
    
 
Third Quarter
    
 
Second Quarter
    
 
First Quarter
    
Percent
variance
    
  Percent
  variance
  
ASSETS
                                              
Cash and due from banks
  
$
53,060
    
$
29,831
    
$
67,070
    
$
59,112
    
$
53,748
      
315.80
%
    
-1.28
%
Federal funds sold
    
7,171
      
66,127
      
4,470
      
16,238
      
18,512
      
-361.58
%
    
-61.26
%
Interest bearing deposits in financial institutions
    
13,469
      
23,793
      
25,625
      
110,928
      
57,292
      
-175.97
%
    
-76.49
%
Cash and cash equivalents
    
73,700
      
119,751
      
97,165
      
186,278
      
129,552
      
-155.96
%
    
-43.11
%
Investments:
                                                        
Available-for-sale debt securities, at fair value
    
594,248
      
536,270
      
535,555
      
544,706
      
559,263
      
43.85
%
    
6.26
%
Equity securities, at fair value
    
3,099
      
7,722
      
7,727
      
8,651
      
8,623
      
-242.80
%
    
-64.06
%
Federal Home Loan Bank stock, at cost
    
11,810
      
11,412
      
11,152
      
7,743
      
7,743
      
14.14
%
    
52.52
%
Loans held for sale, at fair value
    
414,518
      
526,185
      
466,369
      
427,416
      
365,173
      
-86.07
%
    
13.51
%
Loans
    
3,244,663
      
3,166,911
      
3,114,562
      
1,970,974
      
1,900,995
      
9.96
%
    
70.68
%
Less: allowance for loan losses
    
24,406
      
24,041
      
23,482
      
23,247
      
22,898
      
6.16
%
    
6.59
%
Net loans
    
3,220,257
      
3,142,870
      
3,091,080
      
1,947,727
      
1,878,097
      
9.99
%
    
71.46
%
Premises and equipment, net
    
81,175
      
81,577
      
85,550
      
66,392
      
66,108
      
-2.00
%
    
22.79
%
Other real estate owned, net
    
15,334
      
16,442
      
13,812
      
6,370
      
6,811
      
-27.33
%
    
125.14
%
Interest receivable
    
13,920
      
13,069
      
11,218
      
7,012
      
7,247
      
26.41
%
    
92.08
%
Mortgage servicing rights, net
    
93,160
      
76,107
      
63,046
      
48,464
      
47,593
      
90.87
%
    
95.74
%
Goodwill
    
137,190
      
137,190
      
138,910
      
46,867
      
46,867
      
0.00
%
    
192.72
%
Core deposit and other intangibles, net
    
14,027
      
14,902
      
12,550
      
4,048
      
4,171
      
-23.81
%
    
236.30
%
Other assets
    
52,978
      
44,216
      
47,809
      
44,896
      
39,211
      
80.37
%
    
35.11
%
Total assets
  
$
4,725,416
    
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
      
-0.20
%
    
49.23
%
LIABILITIES AND SHAREHOLDERS' EQUITY
                                                        
Liabilities:
                                                      
 
Demand deposits
                                                        
Noninterest-bearing
  
$
930,991
    
$
888,200
    
$
924,773
    
$
715,391
    
$
696,112
      
19.54
%
    
33.74
%
Interest-bearing
    
1,945,886
      
1,909,546
      
1,948,600
      
1,471,650
      
1,473,535
      
7.72
%
    
32.06
%
Savings deposits
    
182,265
      
178,320
      
177,949
      
143,951
      
142,019
      
8.97
%
    
28.34
%
Customer time deposits
    
625,616
      
602,628
      
562,898
      
395,068
      
388,202
      
15.47
%
    
61.16
%
Brokered and internet time deposits
    
81,393
      
85,701
      
104,318
      
1,533
      
1,331
      
-20.39
%
    
6015.18
%
Total time deposits
    
707,009
      
688,329
      
667,216
      
396,601
      
389,533
      
11.01
%
    
81.50
%
Total deposits
    
3,766,151
      
3,664,395
      
3,718,538
      
2,727,593
      
2,701,199
      
11.26
%
    
39.43
%
Securities sold under agreements to repurchase
    
14,724
      
14,293
      
14,556
      
16,343
      
18,130
      
12.23
%
    
-18.79
%
Short-term borrowings
    
138,707
      
190,000
      
52,766
      
—
      
—
      
-109.49
%
    
100.00
%
Long-term debt
    
139,586
      
143,302
      
143,533
      
43,790
      
44,552
      
-10.52
%
    
213.31
%
Accrued expenses and other liabilities
    
55,212
      
118,994
      
80,022
      
49,327
      
60,436
      
-217.38
%
    
-8.64
%
Total liabilities
    
4,114,380
      
4,130,984
      
4,009,415
      
2,837,053
      
2,824,317
      
-1.63
%
    
45.68
%
Shareholders' equity:
                                                        
Common stock, $1 par value
    
30,672
      
30,536
      
30,527
      
28,968
      
24,155
      
1.81
%
    
26.98
%
Additional paid-in capital
    
418,810
      
418,596
      
416,651
      
363,870
      
214,160
      
0.21
%
    
95.56
%
Retained earnings
    
167,055
      
146,797
      
123,779
      
115,391
      
104,152
      
55.97
%
    
60.40
%
Accumulated other comprehensive (loss) income, net
    
(5,501
)
    
800
      
1,571
      
1,288
      
(325
)
    
-3194.26
%
    
1592.62
%
Total shareholders' equity
    
611,036
      
596,729
      
572,528
      
509,517
      
342,142
      
9.72
%
    
78.59
%
Total liabilities and shareholders' equity
  
$
4,725,416
    
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
      
-0.20
%
    
49.23
%
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 4

Average Balance, Average Yield Earned and Average Rate Paid
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                     
                                     
                                     
   
Three Months Ended
    
Three Months Ended
  
   
March 31, 2018
    
December 31, 2017
  
   
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
    
Average
balances
    
Interest
income/
expense
    
Average
yield/
rate
  
Interest-earning assets:
                                    
Loans(1)
  
$
3,192,490
    
$
46,564
      
5.92
%
  
$
3,138,245
    
$
46,503
      
5.88
%
Loans held for sale
    
434,573
      
4,173
      
3.89
%
    
493,073
      
4,856
      
3.91
%
Securities:
                                                
Taxable
    
457,826
      
2,852
      
2.53
%
    
442,351
      
2,529
      
2.27
%
Tax-exempt(1)
    
109,116
      
1,251
      
4.65
%
    
108,000
      
1,506
      
5.53
%
Total Securities(1)
    
566,942
      
4,103
      
2.94
%
    
550,351
      
4,035
      
2.91
%
Federal funds sold
    
20,325
      
73
      
1.46
%
    
18,227
      
14
      
0.30
%
Interest-bearing deposits with other financial institutions
    
35,463
      
165
      
1.89
%
    
42,693
      
177
      
1.64
%
FHLB stock
    
11,806
      
140
      
4.81
%
    
11,160
      
155
      
5.51
%
Total interest earning assets(1)
    
4,261,599
      
55,218
      
5.25
%
    
4,253,749
      
55,740
      
5.20
%
Noninterest Earning Assets:
                                                
Cash and due from banks
    
43,261
                      
57,406
                  
Allowance for loan losses
    
(24,311
)
                    
(23,470
)
                
Other assets
    
397,945
                      
376,984
                  
Total noninterest earning assets
    
416,895
                      
410,920
                  
Total assets
  
$
4,678,494
                    
$
4,664,669
                  
Interest-bearing liabilities:
                                                
Interest bearing deposits:
                                                
Customer time deposits
  
$
617,784
    
$
1,423
      
0.93
%
  
$
577,003
    
$
1,067
      
0.73
%
Broker and internet time deposits
    
84,125
      
333
      
1.61
%
    
95,480
      
380
      
1.58
%
Time deposits
    
701,909
      
1,756
      
1.01
%
    
672,483
      
1,447
      
0.85
%
Money market
    
975,831
      
1,890
      
0.79
%
    
1,071,194
      
1,991
      
0.74
%
Negotiable order of withdrawals
    
943,707
      
1,357
      
0.58
%
    
832,030
      
1,146
      
0.55
%
Savings deposits
    
179,925
      
68
      
0.15
%
    
178,574
      
72
      
0.16
%
Total interest bearing deposits
    
2,801,372
      
5,071
      
0.73
%
    
2,754,281
      
4,656
      
0.67
%
Other interest-bearing liabilities:
                                                
FHLB advances
    
211,735
      
917
      
1.76
%
    
241,307
      
967
      
1.59
%
Other borrowings
    
15,160
      
25
      
0.67
%
    
15,883
      
11
      
0.27
%
Long-term debt
    
30,930
      
406
      
5.32
%
    
30,930
      
414
      
5.31
%
Total other interest-bearing liabilities
    
257,825
      
1,348
      
2.12
%
    
288,120
      
1,392
      
1.92
%
Total Interest-bearing liabilities
    
3,059,197
      
6,419
      
0.85
%
    
3,042,401
      
6,048
      
0.79
%
Noninterest bearing liabilities:
                                                
Demand deposits
    
927,213
                      
964,030
                  
Other liabilities
    
92,886
                      
79,382
                  
Total noninterest-bearing liabilities
    
1,020,099
                      
1,043,412
                  
Total liabilities
    
4,079,296
                      
4,085,813
                  
Shareholders' equity
    
599,198
                      
578,856
                  
Total liabilities and shareholders' equity
  
$
4,678,494
                    
$
4,664,669
                  
Net interest income  (1)
          
$
48,799
                    
$
49,692
          
Interest rate spread (1)
                    
4.40
%
                    
4.41
%
Net interest margin (1)
                    
4.64
%
                    
4.63
%
Average interest-earning assets to average interest-bearing liabilities
                    
139.3
%
                    
139.8
%
Tax equivalent adjustment
          
$
370
                    
$
709
          
Loan yield components:
                                                
Contractual interest rate on loans held for investment (1)
          
$
41,536
      
5.28
%
          
$
41,026
      
5.20
%
Origination and other loan fee income
            
2,867
      
0.37
%
            
2,084
      
0.26
%
Accretion on purchased loans
            
1,687
      
0.21
%
            
1,935
      
0.24
%
Nonaccrual interest collections
            
399
      
0.05
%
            
1,216
      
0.15
%
Syndication fee income
            
75
      
0.01
%
            
242
      
0.03
%
Total loan yield
          
$
46,564
      
5.92
%
          
$
46,503
      
5.88
%
                                                 
(1) Includes tax equivalent adjustment using combined marginal tax rate of 26.060% for 2018 and 39.225% for 2017
  
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 5
 
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
  
   
September 30, 2017
    
June 30, 2017
    
March 31, 2017
  
   
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)
  
$
2,705,265
    
$
40,242
      
5.90
%
  
$
1,942,667
    
$
25,115
      
5.19
%
  
$
1,869,951
    
$
25,090
      
5.44
%
Loans held for sale
    
410,434
      
4,167
      
4.03
%
    
390,596
      
4,276
      
4.39
%
    
381,932
      
3,957
      
4.20
%
Securities:
                                                                        
Taxable
    
425,281
      
2,399
      
2.24
%
    
442,309
      
2,589
      
2.35
%
    
456,634
      
2,567
      
2.28
%
Tax-exempt(1)
    
117,429
      
1,617
      
5.46
%
    
122,553
      
1,758
      
5.75
%
    
117,615
      
1,711
      
5.90
%
Total Securities(1)
    
542,710
      
4,016
      
2.94
%
    
564,862
      
4,347
      
3.09
%
    
574,249
      
4,278
      
3.02
%
Federal funds sold
    
39,363
      
76
      
0.77
%
    
8,456
      
23
      
1.09
%
    
14,327
      
27
      
0.76
%
Interest-bearing deposits with other financial institutions
    
108,185
      
448
      
1.64
%
    
68,460
      
158
      
0.93
%
    
82,981
      
171
      
0.84
%
FHLB stock
    
8,892
      
137
      
6.11
%
    
7,743
      
90
      
4.66
%
    
7,743
      
78
      
4.09
%
Total interest earning assets(1)
    
3,814,849
      
49,086
      
5.10
%
    
2,982,784
      
34,009
      
4.57
%
    
2,931,183
      
33,601
      
4.65
%
Noninterest Earning Assets:
                                                                        
Cash and due from banks
    
55,485
                      
50,004
                      
51,614
                  
Allowance for loan losses
    
(23,875
)
                    
(22,813
)
                    
(21,955
)
                
Other assets
    
316,019
                      
214,808
                      
211,307
                  
Total noninterest earning assets
    
347,629
                      
241,999
                      
240,966
                  
Total assets
  
$
4,162,478
                    
$
3,224,783
                    
$
3,172,149
                  
Interest-bearing liabilities:
                                                                        
Interest bearing deposits:
                                                                        
Customer time deposits
  
$
493,992
    
$
825
      
0.66
%
  
$
389,390
    
$
602
      
0.62
%
  
$
388,744
    
$
582
      
0.61
%
Broker and internet time deposits
    
95,207
      
300
      
1.25
%
    
1,522
      
2
      
0.53
%
    
1,468
      
1
      
0.28
%
Time deposits
    
589,199
      
1,125
      
0.76
%
    
390,912
      
604
      
0.62
%
    
390,212
      
583
      
0.61
%
Money market
    
1,023,612
      
1,722
      
0.67
%
    
723,020
      
889
      
0.49
%
    
729,934
      
785
      
0.44
%
Negotiable order of withdrawals
    
788,238
      
1,040
      
0.52
%
    
711,099
      
759
      
0.43
%
    
718,957
      
695
      
0.39
%
Savings deposits
    
166,184
      
67
      
0.16
%
    
143,357
      
55
      
0.15
%
    
136,627
      
51
      
0.15
%
Total interest bearing deposits
    
2,567,233
      
3,954
      
0.61
%
    
1,968,388
      
2,307
      
0.47
%
    
1,975,730
      
2,114
      
0.43
%
Other interest-bearing liabilities:
                                                                        
FHLB advances
    
86,795
      
428
      
1.96
%
    
52,569
      
192
      
1.46
%
    
60,569
      
191
      
1.28
%
Other borrowings
    
15,828
      
9
      
0.23
%
    
17,315
      
12
      
0.28
%
    
18,884
      
10
      
0.21
%
Long-term debt
    
30,930
      
414
      
5.31
%
    
30,930
      
340
      
4.41
%
    
30,930
      
323
      
4.24
%
Total other interest-bearing liabilities
    
133,553
      
851
      
2.52
%
    
100,814
      
544
      
2.16
%
    
110,383
      
524
      
1.93
%
Total Interest-bearing liabilities
    
2,700,786
      
4,805
      
0.71
%
    
2,069,202
      
2,851
      
0.55
%
    
2,086,113
      
2,638
      
0.51
%
Noninterest bearing liabilities:
                                                                        
Demand deposits
    
871,973
                      
724,419
                      
708,612
                  
Other liabilities
    
39,310
                      
32,357
                      
44,246
                  
Total noninterest-bearing liabilities
    
911,283
                      
756,776
                      
752,858
                  
Total liabilities
    
3,612,069
                      
2,825,978
                      
2,838,971
                  
Shareholders' equity
    
550,409
                      
398,805
                      
333,178
                  
Total liabilities and shareholders' equity
  
$
4,162,478
                    
$
3,224,783
                    
$
3,172,149
                  
Net interest income (1)
          
$
44,281
                    
$
31,158
                    
$
30,963
          
Interest rate spread (1)
                    
4.40
%
                    
4.02
%
                    
4.14
%
Net interest margin (1)
                    
4.61
%
                    
4.19
%
                    
4.28
%
Average interest-earning assets to average interest-bearing liabilities
                    
141.2
%
                    
144.2
%
                    
140.5
%
Tax equivalent adjustment
          
$
671
                    
$
731
                    
$
712
          
Loan yield components:
                                                                        
Contractual interest rate on loans held for investment (1)
          
$
34,634
      
5.08
%
          
$
22,418
      
4.63
%
          
$
21,461
      
4.65
%
Origination and other loan fee income
            
2,610
      
0.38
%
            
1,447
      
0.30
%
            
1,497
      
0.32
%
Accretion on purchased loans
            
1,554
      
0.23
%
            
848
      
0.17
%
            
1,160
      
0.25
%
Nonaccrual interest collections
            
1,116
      
0.16
%
            
315
      
0.07
%
            
619
      
0.13
%
Syndication fee income
            
328
      
0.05
%
            
87
      
0.02
%
            
353
      
0.08
%
Total loan yield
          
$
40,242
      
5.90
%
          
$
25,115
      
5.19
%
          
$
25,090
      
5.44
%
                                                                         
(1) Includes tax equivalent adjustment using combined marginal tax rate of 26.060% for 2018 and 39.225% for 2017
  
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 6
 
Loans and Deposits by Market
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands)
  
 
                              
                               
                               
   
2018
    
2017
  
   
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Loans by market
                              
Metropolitan
  
$
2,076,465
    
$
1,984,826
    
$
1,932,934
    
$
1,461,129
    
$
1,402,189
  
Community
    
764,198
      
780,079
      
779,810
      
476,320
      
473,453
  
Specialty lending and other
    
404,000
      
402,006
      
401,818
      
33,525
      
25,353
  
Total
  
$
3,244,663
    
$
3,166,911
    
$
3,114,562
    
$
1,970,974
    
$
1,900,995
  
Deposits by market
                                        
Metropolitan
    
2,079,983
      
2,091,927
      
2,059,401
      
1,598,574
      
1,553,931
  
Community
    
1,409,612
      
1,291,922
      
1,311,120
      
1,085,345
      
1,109,043
  
Mortgage and other (1)
    
276,556
      
280,546
      
348,017
      
43,674
      
38,225
  
Total
  
$
3,766,151
    
$
3,664,395
    
$
3,718,538
    
$
2,727,593
    
$
2,701,199
  
                                         
(1) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale and other deposits
  
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 7
 
Segment Data
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                               
                               
                               
   
2018
    
2017
  
   
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Banking segment
                              
Net interest income
  
$
48,771
    
$
49,422
    
$
43,741
    
$
29,999
    
$
29,856
  
Provision for loan losses
    
317
      
956
      
(784
)
    
(865
)
    
(257
)
Mortgage banking income- retail footprint
    
6,108
      
6,455
      
7,498
      
7,118
      
5,666
  
Other noninterest income
    
6,804
      
6,737
      
6,486
      
5,418
      
6,007
  
Other noninterest mortgage banking expenses
    
5,097
      
5,294
      
6,216
      
5,368
      
4,836
  
Merger and conversion expense
    
1,193
      
2,069
      
15,711
      
767
      
487
  
Other noninterest expense
    
30,951
      
30,060
      
27,540
      
23,199
      
23,424
  
Pre-tax income after allocations
  
$
24,125
    
$
24,235
    
$
9,042
    
$
14,066
    
$
13,039
  
Total assets
    
4,220,543
      
4,130,349
      
4,056,901
      
2,878,437
      
2,705,118
  
Intracompany funding income included in net interest income
    
4,508
      
5,276
      
4,274
      
3,831
      
3,551
  
Core efficiency ratio*
    
55.20
%
    
55.55
%
    
56.16
%
    
60.42
%
    
64.41
%
Mortgage segment
                                        
Net interest income
  
$
(342
)
  
$
(439
)
  
$
(131
)
  
$
428
    
$
395
  
Provision for loan losses
    
-
      
-
      
-
      
-
      
-
  
Noninterest income
    
20,363
      
23,825
      
23,836
      
23,121
      
19,414
  
Noninterest expense
    
18,910
      
20,117
      
19,757
      
19,802
      
17,670
  
Direct contribution
  
$
1,111
    
$
3,269
    
$
3,948
    
$
3,747
    
$
2,139
  
Total assets
    
504,873
      
597,364
      
525,042
      
468,133
      
461,341
  
Intracompany funding expense included in net interest income
    
4,508
      
5,276
      
4,274
      
3,831
      
3,551
  
Core efficiency ratio*
    
85.66
%
    
83.77
%
    
79.89
%
    
78.33
%
    
88.73
%
Interest rate lock commitments volume during the period
                                        
Consumer direct
  
$
719,730
    
$
677,449
    
$
786,034
    
$
780,179
    
$
616,330
  
Third party origination (TPO)
    
245,679
      
189,299
      
269,473
      
296,034
      
258,996
  
Retail
    
329,720
      
268,720
      
325,295
      
379,530
      
282,698
  
Correspondent
    
833,857
      
678,346
      
619,953
      
701,846
      
440,206
  
Total
  
$
2,128,986
    
$
1,813,814
    
$
2,000,755
    
$
2,157,589
    
$
1,598,230
  
Interest rate lock commitments pipeline (period end)
                                        
Consumer direct
  
$
246,650
    
$
246,982
    
$
261,617
    
$
222,504
    
$
158,393
  
Third party origination (TPO)
    
107,365
      
63,034
      
93,353
      
88,938
      
101,509
  
Retail
    
124,538
      
72,939
      
101,196
      
119,158
      
93,184
  
Correspondent
    
214,424
      
121,201
      
84,506
      
115,919
      
95,923
  
Total
  
$
692,977
    
$
504,156
    
$
540,672
    
$
546,519
    
$
449,009
  
Mortgage sales
                                        
Consumer direct
  
$
592,873
    
$
567,529
    
$
485,931
    
$
498,997
    
$
647,535
  
Third party origination (TPO)
    
160,903
      
216,866
      
194,164
      
209,185
      
199,160
  
Retail
    
64,925
      
68,695
      
71,358
      
66,640
      
61,425
  
Retail footprint
    
169,778
      
205,228
      
222,786
      
200,157
      
186,988
  
Reverse
    
14,779
      
20,587
      
17,520
      
17,870
      
22,337
  
Correspondent
    
679,561
      
606,526
      
646,003
      
542,410
      
373,822
  
Total
  
$
1,682,819
    
$
1,685,431
    
$
1,637,762
    
$
1,535,259
    
$
1,491,267
  
Gains and fees from origination and sale of mortgage loans held for sale
  
$
23,481
    
$
29,577
    
$
29,570
    
$
23,920
    
$
27,577
  
Net change in fair value of loans held for sale, derivatives, and other
    
(90
)
    
(3,317
)
    
(806
)
    
5,412
      
(4,744
)
Change in fair value of mortgage servicing rights
    
(1,713
)
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
Mortgage servicing income
    
4,793
      
4,210
      
3,463
      
2,747
      
2,748
  
Total mortgage banking income
  
$
26,471
    
$
30,280
    
$
31,334
    
$
30,239
    
$
25,080
  
Mortgage sale margin (a)
    
1.40
%
    
1.75
%
    
1.81
%
    
1.56
%
    
1.85
%
                                         
*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
Fourth Quarter 2017
Supplemental Financial Information
Page 8
 
Loan Portfolio and Asset Quality
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                                             
 
                                                            
                                                             
   
2018
    
2017
  
   
March 31,
2018
    
% of
Total
    
December
30, 2017
    
% of
Total
    
September
30, 2017
    
% of
Total
    
June 30,
2017
    
% of
Total
    
March 31,
2017
    
% of
Total
  
Loan portfolio
                                                            
Commercial and industrial
  
$
765,115
      
24
%
  
$
715,075
      
23
%
  
$
731,588
      
23
%
  
$
423,704
      
21
%
  
$
399,333
      
21
%
Construction
    
466,495
      
14
%
    
448,326
      
14
%
    
435,414
      
14
%
    
282,727
      
14
%
    
267,998
      
14
%
Residential real estate:
                                                                                
1-to-4 family mortgage
    
491,725
      
15
%
    
480,989
      
15
%
    
459,467
      
15
%
    
307,152
      
16
%
    
302,166
      
16
%
Residential line of credit
    
197,740
      
6
%
    
194,986
      
6
%
    
188,392
      
6
%
    
177,783
      
9
%
    
177,928
      
9
%
Multi-family mortgage
    
63,295
      
2
%
    
62,374
      
2
%
    
74,004
      
2
%
    
52,810
      
3
%
    
45,244
      
2
%
Commercial real estate:
                                                                                
Owner occupied
    
499,331
      
16
%
    
495,872
      
16
%
    
473,395
      
15
%
    
371,462
      
19
%
    
359,120
      
19
%
Non-owner occupied
    
562,128
      
17
%
    
551,588
      
17
%
    
521,416
      
17
%
    
273,285
      
14
%
    
273,716
      
15
%
Consumer and other
    
198,834
      
6
%
    
217,701
      
7
%
    
230,886
      
7
%
    
82,051
      
4
%
    
75,490
      
4
%
Total loans held for investment
  
$
3,244,663
      
100
%
  
$
3,166,911
      
100
%
  
$
3,114,562
      
100
%
  
$
1,970,974
      
100
%
  
$
1,900,995
      
100
%
                                                                                 
Allowance for loan losses rollforward summary
                                                                                
Allowance for loan losses at the beginning of the period
  
$
24,041
            
$
23,482
            
$
23,247
            
$
22,898
            
$
21,747
          
Charge-off's
    
(661
)
            
(719
)
            
(575
)
            
(791
)
            
(442
)
        
Recoveries
    
709
              
322
              
1,594
              
2,005
              
1,850
          
Provision for loan losses
    
317
              
956
              
(784
)
            
(865
)
            
(257
)
        
Allowance for loan losses at the end of the period
  
$
24,406
            
$
24,041
            
$
23,482
            
$
23,247
            
$
22,898
          
                                                                                 
Allowance for loan losses as a percentage of total loans held for investment
    
0.75
%
            
0.76
%
            
0.75
%
            
1.18
%
            
1.20
%
        
                                                                                 
Charge-offs
                                                                                
Commercial and Industrial
  
$
(220
)
          
$
(63
)
          
$
(221
)
          
$
(131
)
          
$
(169
)
        
Construction
    
-
              
(21
)
            
-
              
-
              
(6
)
        
Residential real estate:
                                                                                
1-to-4 family mortgage
    
(60
)
            
(45
)
            
(32
)
            
(35
)
            
(88
)
        
Residential line of credit
    
(20
)
            
(72
)
            
(9
)
            
(195
)
            
-
          
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
-
              
(224
)
            
(64
)
            
-
              
-
          
Non-owner occupied
    
-
              
-
              
-
              
-
              
-
          
Consumer and other
    
(361
)
            
(294
)
            
(249
)
            
(430
)
            
(179
)
        
Total Charge Offs:
    
(661
)
            
(719
)
            
(575
)
            
(791
)
            
(442
)
        
Recoveries
                                                                                
Commercial and Industrial
    
135
              
100
              
200
              
1,511
              
83
          
Construction
    
252
              
4
              
1,022
              
29
              
29
          
Residential real estate:
                                                                                
1-to-4 family mortgage
    
15
              
33
              
86
              
14
              
26
          
Residential line of credit
    
27
              
27
              
157
              
155
              
56
          
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
23
              
22
              
24
              
11
              
4
          
Non-owner occupied
    
51
              
4
              
1
              
2
              
1,639
          
Consumer and other
    
206
              
132
              
104
              
283
              
13
          
Total Recoveries:
    
709
              
322
              
1,594
              
2,005
              
1,850
          
Net (charge-off's) recoveries
  
$
48
            
$
(397
)
          
$
1,019
            
$
1,214
            
$
1,408
          
                                                                                 
Net (charge-off's) recoveries as a percentage of average total loans
    
0.01
%
            
(0.05
%)
            
0.15
%
            
0.25
%
            
0.31
%
        
                                                                                 
Loans classified as substandard
  
$
52,803
            
$
55,488
            
$
59,588
            
$
37,858
            
$
37,556
          
Purchased credit impaired loans
  
$
85,750
            
$
88,835
            
$
92,455
            
$
15,733
            
$
16,099
          
                                                                                 
Nonperforming assets (b)
                                                                                
Past due 90 days or more and accruing interest
  
$
2,689
            
$
1,996
            
$
1,238
            
$
1,619
            
$
1,590
          
Nonaccrual
    
6,954
              
8,101
              
7,749
              
8,327
              
7,706
          
Total nonperforming loans held for investment
  
$
9,643
            
$
10,097
            
$
8,987
            
$
9,946
            
$
9,296
          
Loans held for sale (a)
    
501
              
43,035
              
13,575
              
-
              
-
          
Other real estate owned- foreclosed
    
9,755
              
10,547
              
10,205
              
6,370
              
6,811
          
Other real estate owned- acquired excess facilities
    
5,579
              
5,895
              
3,607
              
-
              
-
          
Other assets
    
2,342
              
2,369
              
3,967
              
3,154
              
1,654
          
Total nonperforming assets
  
$
27,820
            
$
71,943
            
$
40,341
            
$
19,470
            
$
17,761
          
Total nonperforming loans as a percentage of loans held for investment
    
0.30
%
            
0.32
%
            
0.29
%
            
0.50
%
            
0.49
%
        
Total nonperforming assets as a percentage of total assets
    
0.59
%
            
1.52
%
            
0.88
%
            
0.58
%
            
0.56
%
        
Total accruing loans over 90 days delinquent as a percentage of total assets
    
0.06
%
            
0.04
%
            
0.03
%
            
0.05
%
            
0.05
%
        
Loans restructured as troubled debt restructurings
  
$
8,509
            
$
8,604
            
$
8,095
            
$
8,488
            
$
8,681
          
Troubled debt restructurings as a percentage of loans held for investment
    
0.26
%
            
0.27
%
            
0.26
%
            
0.43
%
            
0.46
%
        
                                                                                 
(a) Includes right to repurchase government guaranteed GNMA mortgage loans previously sold and internally serviced for the fourth and third quarters of 2017. The Bank has not exercised and does not expect to exercise the repurchase option. In the current quarter the Bank has discontinued this practice as the perceived benefit has decreased with rising rates.
  
(b) Nonperforming assets excludes purchase credit impaired loans
                                          
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 9
 
Capital Ratios
(Unaudited)
(In Thousands, Except %)
 
 
             
Computation of Tangible Common Equity to Tangible Assets:
  
March 31, 2018
    
December 31, 2017
  
             
Total Equity
  
$
611,036
    
$
596,729
  
Less:
                
Goodwill
    
137,190
      
137,190
  
Other intangibles
    
14,027
      
14,902
  
Tangible Common Equity
  
$
459,819
    
$
444,637
  
                 
Total Assets
  
$
4,725,416
    
$
4,727,713
  
Less:
                
Goodwill
    
137,190
      
137,190
  
Other intangibles
    
14,027
      
14,902
  
Tangible Assets
  
$
4,574,199
    
$
4,575,621
  
                 
Total Common Equity to Total Assets
    
12.93
%
    
12.62
%
Tangible Common Equity to Tangible Assets*
    
10.05
%
    
9.72
%
                 
                 
   
March 31, 2018
    
December 31, 2017
  
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1 Capital
  
$
452,515
    
$
442,381
  
Tier 1 Capital
    
482,515
      
472,381
  
Total Capital
    
506,921
      
496,422
  
                 
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1
    
11.00
%
    
10.70
%
Tier 1 Risk-Based
    
11.73
%
    
11.43
%
Total Risk-Based
    
12.33
%
    
12.01
%
Tier 1 Leverage
    
10.67
%
    
10.46
%
                 
                 
*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
Fourth Quarter 2017
Supplemental Financial Information
Page 10
 
Investment Portfolio
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
                                                             
                                                             
                                                             
   
2018
    
2017
  
Securities (at fair value)
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Available for sale debt securities
                                                              
U.S. government agency securities
  
$
982
      
0
%
  
$
986
      
0
%
  
$
992
      
0
%
  
$
990
      
0
%
  
$
987
      
0
%
Mortgage-backed securities - residential
    
472,931
      
79
%
    
418,781
      
77
%
    
418,794
      
77
%
    
410,708
      
74
%
    
425,943
      
75
%
Municipals, tax exempt
    
113,158
      
19
%
    
109,251
      
20
%
    
106,950
      
20
%
    
122,698
      
22
%
    
120,560
      
21
%
Treasury securities
    
7,177
      
1
%
    
7,252
      
1
%
    
8,819
      
2
%
    
10,310
      
2
%
    
11,773
      
2
%
Total available for sale debt securities
    
594,248
      
99
%
    
536,270
      
99
%
    
535,555
      
99
%
    
544,706
      
98
%
    
559,263
      
98
%
Equity securities
    
3,099
      
1
%
    
7,722
      
1
%
    
7,727
      
1
%
    
8,651
      
2
%
    
8,623
      
2
%
Total securities
  
$
597,347
      
100
%
  
$
543,992
      
100
%
  
$
543,282
      
100
%
  
$
553,357
      
100
%
  
$
567,886
      
100
%
                                                                                 
Securities to total assets
    
12.64
%
            
11.51
%
            
11.86
%
            
16.54
%
            
17.93
%
        
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 11
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
 
                              
                               
   
2018
    
2017
  
Net income, adjusted (a)
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Pre-tax net income
  
$
25,236
    
$
27,504
    
$
12,990
    
$
17,813
    
$
15,178
  
Plus merger and conversion costs
    
1,193
      
2,069
      
15,711
      
767
      
487
  
Less significant gains (losses) on securities, other real estate owned and other items
    
-
      
-
      
-
      
-
      
748
  
Pre-tax net income, adjusted
  
$
26,429
    
$
29,573
    
$
28,701
    
$
18,580
    
$
14,917
  
Income tax expense, adjusted
    
5,793
      
11,308
      
12,737
      
5,726
      
4,685
  
Net income, adjusted
  
$
20,636
    
$
18,265
    
$
15,964
    
$
12,854
    
$
10,232
  
Weighted average common shares outstanding fully diluted
    
31,421,830
      
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
  
                                         
Earnings per share, adjusted
                                        
Diluted earning per share
  
$
0.63
    
$
0.74
    
$
0.27
    
$
0.43
    
$
0.40
  
Plus merger and conversion costs
    
0.04
      
0.07
      
0.51
      
0.03
      
0.02
  
Less significant gains (losses) on securities, other real estate owned and other items
    
-
      
-
      
-
      
-
      
0.03
  
Tax effect
    
(0.01
)
    
(0.22
)
    
(0.27
)
    
0.03
      
0.03
  
Diluted earnings per share, adjusted
  
$
0.66
    
$
0.59
    
$
0.52
    
$
0.49
    
$
0.42
  
                                         
(a) Previously, the Company adjusted reported net income for the following items: (i) change in fair value in MSRs, net, and (ii) Gains (losses) from securities, OREO, MSRs, other assets, and other items. Beginning with the first quarter of 2018, the Company is only adjusting reported earnings for (i) merger and conversion costs, (ii) impact of tax reform (fourth quarter 2017); and (iii) other significant items impacting comparability between quarterly and annual periods. Prior periods have been adjusted to conform to this presentation, see below for previously reported amounts:
  
                                         
                                         
            2017  
Previously reported core results*
          
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Core net income
          
$
18,677
    
$
18,516
    
$
12,919
    
$
10,284
  
Core diluted earnings per share
          
$
0.60
    
$
0.60
    
$
0.49
    
$
0.42
  
                                         
* Non-GAAP reconciliations of previously reported core results are included in previously issued earnings release supplements.
  
 
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                               
                               
   
2018
    
2017
  
Core efficiency ratio (tax-equivalent basis)
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Total noninterest expense
  
$
56,151
    
$
57,540
    
$
69,224
    
$
49,136
    
$
46,417
  
Less variable compensation charge related to cash settled equity awards
    
-
      
-
      
-
      
-
      
635
  
Less merger and conversion expenses
    
1,193
      
2,069
      
15,711
      
767
      
487
  
Less loss on sale of mortgage servicing rights
    
-
      
-
      
-
      
249
      
-
  
Core noninterest expense
  
$
54,958
    
$
55,471
    
$
53,513
    
$
48,120
    
$
45,295
  
Net interest income (tax-equivalent basis)
    
48,799
      
49,692
      
44,281
      
31,158
      
30,963
  
Total noninterest income
    
33,275
      
37,017
      
37,820
      
35,657
      
31,087
  
Less change in fair value on mortgage servicing rights
    
(1,713
)
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(118
)
    
(386
)
    
(314
)
    
62
      
748
  
 Less (loss) gain from securities, net
    
(47
)
    
1
      
254
      
29
      
1
  
Core noninterest income
    
35,153
      
37,592
      
38,773
      
37,406
      
30,839
  
Core revenue
  
$
83,952
    
$
87,284
    
$
83,054
    
$
68,564
    
$
61,802
  
Efficiency ratio (GAAP)(1)
    
68.72
%
    
66.91
%
    
85.01
%
    
74.35
%
    
75.67
%
Core efficiency ratio (tax-equivalent basis)
    
65.46
%
    
63.55
%
    
64.43
%
    
70.18
%
    
73.29
%
                                         
(1) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
  
                                         
     
2018
     2017  
Banking segment core efficiency ratio (tax equivalent)
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Core consolidated noninterest expense
  
$
54,958
    
$
55,471
    
$
53,513
    
$
48,120
    
$
45,295
  
Less Mortgage segment noninterest expense
    
18,910
      
20,117
      
19,757
      
19,802
      
17,670
  
Add loss on sale of mortgage servicing rights
    
-
      
-
      
-
      
249
      
-
  
Adjusted Banking segment noninterest expense
    
36,048
      
35,354
      
33,756
      
28,567
      
27,625
  
Adjusted core revenue
    
83,952
      
87,284
      
83,054
      
68,564
      
61,802
  
Less Mortgage segment noninterest income
    
20,363
      
23,825
      
23,836
      
23,121
      
19,414
  
Less change in fair value on mortgage servicing rights
    
(1,713
)
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
Adjusted Banking segment total revenue
  
$
65,302
    
$
63,649
    
$
60,111
    
$
47,283
    
$
42,889
  
Banking segment core efficiency ratio (tax-equivalent basis)
    
55.20
%
    
55.55
%
    
56.16
%
    
60.42
%
    
64.41
%
                                         
Mortgage segment core efficiency ratio (tax equivalent)
                                        
Consolidated Noninterest expense
  
$
56,151
    
$
57,540
    
$
69,224
    
$
49,136
    
$
46,417
  
Less loss on sale of mortgage servicing rights
    
-
      
-
      
-
      
249
      
-
  
Less Banking segment noninterest expense
    
37,241
      
37,423
      
49,467
      
29,334
      
28,747
  
Adjusted Mortgage segment noninterest expense
  
$
18,910
    
$
20,117
    
$
19,757
    
$
19,553
    
$
17,670
  
Total noninterest income
    
33,275
      
37,017
      
37,820
      
35,657
      
31,087
  
Less Banking segment noninterest income
    
12,912
      
13,192
      
13,984
      
12,536
      
11,673
  
Less change in fair value on mortgage servicing rights
    
(1,713
)
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
Adjusted Mortgage segment total revenue
  
$
22,076
    
$
24,015
    
$
24,729
    
$
24,961
    
$
19,915
  
Mortgage segment core efficiency ratio (tax-equivalent basis)
    
85.66
%
    
83.77
%
    
79.89
%
    
78.33
%
    
88.73
%
                                         
                                         
     
2018
     2017  
Tangible assets and equity
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Tangible Assets
                                        
Total assets
  
$
4,725,416
    
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
  
Less goodwill
    
137,190
      
137,190
      
138,910
      
46,867
      
46,867
  
Less intangibles, net
    
14,027
      
14,902
      
12,550
      
4,048
      
4,171
  
Tangible assets
  
$
4,574,199
    
$
4,575,621
    
$
4,430,483
    
$
3,295,655
    
$
3,115,421
  
Tangible Common Equity
                                        
Total shareholders' equity
  
$
611,036
    
$
596,729
    
$
572,528
    
$
509,517
    
$
342,142
  
Less goodwill
    
137,190
      
137,190
      
138,910
      
46,867
      
46,867
  
Less intangibles, net
    
14,027
      
14,902
      
12,550
      
4,048
      
4,171
  
Tangible common equity
  
$
459,819
    
$
444,637
    
$
421,068
    
$
458,602
    
$
291,104
  
Common shares outstanding
    
30,671,763
      
30,535,517
      
30,526,592
      
28,968,160
      
24,154,323
  
Book value per common share
  
$
19.92
    
$
19.54
    
$
18.76
    
$
17.59
    
$
14.16
  
Tangible book value per common share
  
$
14.99
    
$
14.56
    
$
13.79
    
$
15.83
    
$
12.05
  
Total shareholders' equity to total assets
    
12.93
%
    
12.62
%
    
12.50
%
    
15.23
%
    
10.81
%
Tangible common equity to tangible assets
    
10.05
%
    
9.72
%
    
9.50
%
    
13.92
%
    
9.34
%
Net income
  
$
19,754
    
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
  
Return on tangible common equity
    
17.42
%
    
20.54
%
    
7.90
%
    
9.83
%
    
13.59
%
                                         
                                         
     
2018
     2017  
Return on average tangible common equity
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Total average shareholders' equity
  
$
599,198
    
$
578,856
    
$
550,409
    
$
398,805
    
$
333,178
  
Less average goodwill
    
137,190
      
137,190
      
108,220
      
46,839
      
46,839
  
Less average intangibles, net
    
14,465
      
13,726
      
9,983
      
4,124
      
4,353
  
Average tangible common equity
  
$
447,544
    
$
427,940
    
$
432,206
    
$
347,842
    
$
281,986
  
Net income
  
$
19,754
    
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
  
Return on average tangible common equity
    
17.90
%
    
21.34
%
    
7.70
%
    
12.96
%
    
14.03
%
 
 
Non-GAAP Reconciliation
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
                               
                               
   
2018
    
2017
  
Return on average tangible equity, adjusted
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Pre-tax net income
  
$
25,236
    
$
27,504
    
$
12,990
    
$
17,813
    
$
15,178
  
Adjustments:
                                        
Add merger and conversion costs
    
1,193
      
2,069
      
15,711
      
767
      
487
  
Less significant gains (losses) on securities, other real estate owned and other items
    
-
      
-
      
-
      
-
      
748
  
Less income tax expense, adjusted
    
5,793
      
11,308
      
12,737
      
5,726
      
4,685
  
Net income, adjusted
  
$
20,636
    
$
18,265
    
$
15,964
    
$
12,854
    
$
10,232
  
Return on average tangible equity, adjusted
    
18.70
%
    
16.93
%
    
14.65
%
    
14.82
%
    
14.72
%
                                         
     
2018
     2017  
Return on average assets and equity, adjusted
  
First Quarter
    
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Net income
  
$
19,754
    
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
  
Average assets
    
4,678,494
      
4,664,669
      
4,162,478
      
3,224,783
      
3,172,149
  
Average equity
    
599,198
      
578,856
      
550,409
      
398,805
      
333,178
  
Return on average assets
    
1.71
%
    
1.96
%
    
0.80
%
    
1.40
%
    
1.25
%
Return on average equity
    
13.37
%
    
15.78
%
    
6.05
%
    
11.30
%
    
11.87
%
Net income, adjusted
    
20,636
      
18,265
      
15,964
      
12,854
      
10,232
  
Return on average assets, adjusted
    
1.79
%
    
1.55
%
    
1.52
%
    
1.60
%
    
1.31
%
Return on average equity, adjusted
    
13.97
%
    
12.52
%
    
11.51
%
    
12.93
%
    
12.45
%
                                         
            2017  
Previously reported core metrics*
          
Fourth Quarter
    
Third Quarter
    
Second Quarter
    
First Quarter
  
Core return on average tangible common equity
            
17.35
%
    
17.00
%
    
14.90
%
    
14.79
%
Core return on average assets
            
1.59
%
    
1.76
%
    
1.61
%
    
1.31
%
Core return on average equity
            
12.80
%
    
13.35
%
    
12.99
%
    
12.52
%
Core total revenue
          
$
86,575
    
$
82,383
    
$
67,833
    
$
61,090
  
* Non-GAAP reconciliations of previously reported core results are included in previously issued earnings release supplements.