Reported diluted EPS of $0.76 with ROAA of
1.59% and ROATCE of 17.5%
Adjusted diluted EPS of $0.77, up 13.2% from
Q3 2018, with ROAA of 1.61% and ROATCE of 17.7%
FB Financial Corporation (the “Company”) (NYSE:FBK), parent
company of FirstBank, reported net income of $24.0 million, or
$0.76 per diluted common share, for the third quarter of 2019,
compared to net income of $21.4 million, or $0.68 per diluted
common share, for the third quarter of 2018. On an adjusted basis,
excluding merger and mortgage restructuring expenses, net income
per diluted common share was $0.77 for the third quarter of 2019
compared to $0.70 for the second quarter of 2019 and $0.68 for the
third quarter of 2018.
President and Chief Executive Officer, Christopher T. Holmes
stated, “Our strong third quarter results reflect the continued
execution by our team and the strength of our markets. Our growth
in loans and deposits and our strong net interest margin reflect
our continued discipline and our focus on growing our bank with
great customers across all of our markets. While balancing growth
and profitability in a challenging rate environment, the team
produced strong adjusted returns on average assets of 1.61% and
average tangible equity of 17.7%. In addition, we completed the
restructure of our mortgage business and announced the acquisition
of a very high quality community bank. ”
Holmes further commented, “During the quarter, we announced the
acquisition of Farmers National Bank of Scottsville (KY) with total
assets of $252.5 million, loans of $178.4 million and deposits of
$203.9 million. Farmers National fits well with our strategy,
culture and geography while providing attractive returns for our
shareholders. We are excited to welcome their team and customers to
the FirstBank family.”
Performance Summary
2019
2018
Annualized
(dollars in thousands, expect per share
data)
Third Quarter
Second Quarter
Third Quarter
3Q19 / 2Q19 % Change
3Q19 / 3Q18 % Change
Balance Sheet
Highlights
Investment securities
$
671,781
$
678,457
$
609,568
(3.90
)%
10.2
%
Loans - held for sale
305,493
294,699
323,486
14.5
%
(5.56
)%
Loans - held for investment (HFI)
4,345,344
4,289,516
3,538,531
5.16
%
22.8
%
Allowance for loan losses
31,464
30,138
27,608
17.5
%
14.0
%
Total assets
6,088,895
5,940,402
5,058,167
9.92
%
20.4
%
Customer deposits
4,896,327
4,812,962
4,017,391
6.87
%
21.9
%
Brokered and internet time deposits
25,436
29,864
112,082
(58.8
)%
(77.3
)%
Total deposits
4,921,763
4,842,826
4,129,473
6.47
%
19.2
%
Borrowings
307,129
257,299
210,968
76.8
%
45.6
%
Total shareholders' equity
744,835
718,759
648,731
14.4
%
14.8
%
Tangible book value per share*
$
18.03
$
17.18
$
16.25
Tangible common equity to tangible
assets*
9.4
%
9.2
%
10.2
%
* Certain measures are considered non-GAAP
financial measures. See “Use of non-GAAP Financial Measures” and
the corresponding non-GAAP reconciliation tables in the
Supplemental Financial Information, which accompanies this Earnings
Release, as well as “Use of non-GAAP Financial Measures” and the
Appendix in the Earnings Release Presentation issued October 21,
2019, for a reconciliation and discussion of this non-GAAP
measure.
2019
2018
(dollars in thousands, except share
data)
Third Quarter
Second Quarter
Third Quarter
Results of
operations
Net interest income
$
58,305
$
57,023
$
52,755
NIM
4.28
%
4.39
%
4.71
%
Provision for loan losses
$
1,831
$
881
$
1,818
Net charge-off ratio
0.05
%
0.05
%
0.06
%
Noninterest income
$
38,145
$
32,979
$
34,355
Mortgage banking income
$
29,193
$
24,526
$
26,649
Total revenue
$
96,450
$
90,002
$
87,110
Noninterest expenses
$
62,935
$
64,119
$
57,213
Merger and mortgage restructuring
expenses
$
407
$
4,612
$
—
Efficiency ratio
65.3
%
71.2
%
65.7
%
Core efficiency ratio*
64.5
%
65.9
%
65.7
%
Pre-tax income
$
31,684
$
25,002
$
28,079
Total mortgage banking pre-tax
contribution, adjusted*
$
5,375
$
2,563
$
1,467
Net income
$
23,966
$
18,688
$
21,377
Diluted earnings per share
$
0.76
$
0.59
$
0.68
Effective tax rate
24.4
%
25.3
%
23.9
%
Net income, adjusted*
$
24,267
$
22,098
$
21,377
Diluted earnings per share, adjusted*
$
0.77
$
0.70
$
0.68
Weighted average number of shares
outstanding- fully diluted
31,425,573
31,378,018
31,339,628
Actual shares outstanding - period end
30,927,664
30,865,636
30,715,792
Returns on
average:
Assets ("ROAA")
1.59
%
1.30
%
1.72
%
Adjusted*
1.61
%
1.54
%
1.72
%
Equity ("ROAE")
13.0
%
10.6
%
13.3
%
Tangible common equity ("ROATCE")*
17.5
%
14.4
%
17.4
%
Adjusted*
17.7
%
17.0
%
17.4
%
* Certain measures are considered non-GAAP
financial measures. See "Use of non-GAAP Financial Measures" and
the corresponding non-GAAP reconciliation tables in the
Supplemental Financial Information, which accompanies this Earnings
Release, as well as "Use of non-GAAP Financial Measures" and the
Appendix in the Earnings Release Presentation issued October 21,
2019, for a reconciliation and discussion of this non-GAAP
measure.
Prudent and Balanced
Growth
The Company grew loans (HFI) by $55.8 million during the third
quarter of 2019, or 5.16% annualized while average loans (HFI)
increased 12.3% annualized from last quarter. Year over year
organic loan growth was 12.2%. Contractual loan yields decreased
from 5.57% in the second quarter to 5.50% in the third quarter,
related to the lower interest rate environment.
During the third quarter of 2019, the Company grew customer
deposits by $83.4 million, primarily driven by $102.5 million
increase in noninterest-bearing deposits, offset by a $76.5 million
decrease in time deposits. The Company reduced its cost of deposits
to 1.11% from 1.14% in the second quarter of 2019.
Noninterest-bearing deposits increased to 24.7% of total deposits
at September 30, 2019, from 23.0% at June 30, 2019. Loans (HFI) to
deposits slightly decreased from 88.6% last quarter to 88.3% this
quarter.
The Company’s net interest income increased $1.3 million to
$58.3 million from $57.0 million last quarter. The Company’s net
interest margin (“NIM”) was 4.28% for the third quarter of 2019,
compared to 4.39% and 4.71% for the second quarter of 2019 and the
third quarter of 2018, respectively. Accretion related to purchased
loans and nonaccrual interest contributed 16 basis points to the
NIM in the third quarter of 2019 compared to 17 and 25 basis points
for the second quarter of 2019 and the third quarter of 2018,
respectively. Overall, the NIM was impacted by a 15 basis point
decline in the yields on interest-earning assets offset by a 4
basis point decline in the rate on interest-bearing
liabilities.
Noninterest Income Improves with
Mortgage Results
During the quarter, the lower interest rate environment drove
increased results from our mortgage business. Noninterest income
was $38.1 million for the third quarter of 2019, compared to $33.0
million for the second quarter of 2019 and $34.4 million for the
third quarter of 2018. Mortgage banking income was $29.2 million
for the third quarter of 2019, compared to $24.5 million for the
second quarter of 2019 and $26.6 million for the third quarter of
2018. Interest rate lock commitment volume totaled $1.64 billion in
the third quarter of 2019 compared to $1.82 billion in the second
quarter of 2019 and $1.70 billion in the third quarter of 2018,
benefiting from the lower rate environment in the retail and
Consumer Direct channels.
During the third quarter of 2019, the Company’s total mortgage
pre-tax direct contribution was $5.4 million, excluding mortgage
restructuring expense of $0.1 million. This compares to the $2.6
million contribution, excluding mortgage restructuring expense of
$0.8 million, in the second quarter of 2019 and $1.5 million in the
third quarter of 2018.
Holmes commented, “We completed the restructuring of the
mortgage division allowing us to focus on our core business and
produce outstanding operating results, capitalizing on the lower
rate environment. Our smaller and more focused team is working to
grow their customer base and refine their operations and continues
to make impressive progress.”
Noninterest Expenses
Noninterest expense was $62.9 million for the third quarter of
2019, compared to $64.1 million for the second quarter of 2019 and
$57.2 million for the third quarter of 2018. Adjusted for merger
and mortgage restructuring expenses, noninterest expense was $62.5
million for the third quarter of 2019 and $59.5 million for the
second quarter of 2019. The increase from the second quarter was
primarily driven by higher mortgage expenses and increased
incentives and other expenses from banking operations.
Chief Financial Officer James R. Gordon noted, “Noninterest
expenses remained under control while continuously investing in our
teams and infrastructure this quarter along with increased mortgage
operating expenses driven by higher volumes in our retail channels.
Our core efficiency ratio was down slightly to 64.5% from last
quarter.”
Asset Quality Remains
Strong
During the third quarter of 2019, the Company recognized a
provision for loan losses of $1.8 million, reflecting loan growth,
renewals of previously acquired loans, stable credit metrics,
changing economic outlook and net charge-offs of 0.05% of average
loans. The Company's nonperforming assets slightly increased at
September 30, 2019 to 0.62% of total assets compared to 0.59% at
June 30, 2019. Nonperforming loans were 0.47% of loans held for
investment at September 30, 2019, compared to 0.43% at June 30,
2019.
Capital Positioned for
Growth
“Our earnings continue to provide capital for growth and the
opportunity to continue our previously announced quarterly cash
dividend of eight cents per share. With our tangible common equity
at 9.4% of tangible assets, we continue to manage our capital
levels with our dividend and maintain our repurchase authorization.
We remain focused on delivering strong equity returns with a 17.7%
adjusted return on average tangible equity this quarter driving a
10.9% increase in tangible book value per share to $18.03 from last
year," commented Gordon.
Summary
Holmes further commented, “Our results reflect the hard work of
our team in balancing growth and profitability during a quarter
with economic and interest rate challenges. In addition to the
operating results, we announced a high quality acquisition, and
momentum continues to build. We are proud of our team and our
results this quarter and look forward to a bright future.”
WEBCAST AND CONFERENCE CALL INFORMATION
The live broadcast of FB Financial Corporation’s earnings
conference call will begin at 8:00 a.m. CT on Tuesday, October 22,
2019, and the conference call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1631/31780. An
online replay will be available approximately an hour following the
conclusion of the live broadcast.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE:FBK) is a bank holding company
headquartered in Nashville, Tennessee. FB Financial Corporation
operates through its wholly owned banking subsidiary, FirstBank,
the third largest Tennessee-headquartered community bank, with 68
full-service bank branches across Tennessee, North Alabama and
North Georgia, and mortgage offices across the Southeast. FirstBank
serves five of the largest metropolitan markets in Tennessee and
has approximately $6.1 billion in total assets.
SUPPLEMENTAL FINANCIAL INFORMATION AND EARNINGS
PRESENTATION
Investors are encouraged to review this Earnings Release in
conjunction with the Supplemental Financial Information and
Earnings Presentation posted on the Company’s website, which can be
found at https://investors.firstbankonline.com. This Earnings
Release, the Supplemental Financial Information and the Earnings
Presentation are also included with a Current Report on Form 8-K
that the Company furnished to the U.S. Securities and Exchange
Commission (“SEC”) on October 21, 2019.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables
as part of this Earnings Release. A detailed discussion of our
business segments is included in the Company’s Annual Report on
Form 10-K filed with the SEC for the year ended December 31, 2018,
and investors are encouraged to review that discussion in
conjunction with this Earnings Release.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this earnings release may
constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, without limitation, statements
relating to the timing, benefits, costs, and synergies of the
proposed merger (the “FNB merger”) with Farmers National Bank of
Scottsville (“FNB”), and FB Financial’s future plans, results,
strategies, and expectations. These statements can generally be
identified by the use of the words and phrases “may,” “will,”
“should,” “could,” “would,” “goal,” “plan,” “potential,”
“estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,”
“target,” “aim,” “predict,” “continue,” “seek,” “projection,” and
other variations of such words and phrases and similar expressions.
These forward-looking statements are not historical facts, and are
based upon current expectations, estimates, and projections, many
of which, by their nature, are inherently uncertain and beyond FB
Financial’s control. The inclusion of these forward-looking
statements should not be regarded as a representation by the FB
Financial or any other person that such expectations, estimates,
and projections will be achieved. Accordingly, FB Financial
cautions shareholders and investors that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions, and uncertainties that are difficult to
predict and that are beyond FB Financial’s control. Although FB
Financial believes that the expectations reflected in these
forward-looking statements are reasonable as of the date of this
release, actual results may prove to be materially different from
the results expressed or implied by the forward-looking statements.
A number of factors could cause actual results to differ materially
from those contemplated by the forward-looking statements
including, without limitation, (1) the risk that the cost savings
and any revenue synergies from the proposed FNB merger or another
acquisition may not be realized or take longer than anticipated to
be realized, (2) disruption from the proposed FNB merger with
customer, supplier, or employee relationships, (3) the occurrence
of any event, change, or other circumstances that could give rise
to the termination of the merger agreement with FNB, (4) the
failure to obtain necessary regulatory approvals for the FNB
merger, (5) the failure to obtain the approval of FNB’s
shareholders for the FNB merger, (6) the possibility that the
costs, fees, expenses, and charges related to the FNB merger may be
greater than anticipated, including as a result of unexpected or
unknown factors, events, or liabilities, (7) the failure of the
conditions to the FNB merger to be satisfied, (8) the risks related
to the integration of acquired businesses (including the proposed
FNB merger, FB Financial’s recent acquisition of branches from
Atlantic Capital Bank, and any future acquisitions), including the
risk that the integration of the acquired operations with those of
FB Financial will be materially delayed or will be more costly or
difficult than expected, (9) the risks associated with FB
Financial’s pursuit of future acquisitions, (10) the risk of
expansion into new geographic or product markets, (11) reputational
risk and the reaction of the parties’ customers to the FNB merger,
(12) FB Financial’s ability to successful execute its various
business strategies, including its ability to execute on potential
acquisition opportunities, (13) the risk of potential litigation or
regulatory action related to the FNB merger, and (14) general
competitive, economic, political, and market conditions, as well as
the other risk factors set forth in our December 31, 2018 Form
10-K, filed with the Securities and Exchange Commission on March
12, 2019, under the captions “Cautionary note regarding
forward-looking statements” and “Risk factors.”
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL
MEASURES
This Earnings Release contains certain financial measures that
are not measures recognized under U.S. generally accepted
accounting principles (“GAAP”) and therefore are considered
non-GAAP financial measures. These non-GAAP financial measures
include, without limitation, adjusted net income, adjusted diluted
earnings per share, core revenue, core noninterest expense and core
noninterest income, core efficiency ratio (tax equivalent basis),
Banking segment core efficiency ratio (tax equivalent basis),
Mortgage segment core efficiency ratio (tax equivalent basis),
adjusted mortgage contribution, adjusted return on average assets
and equity and core total revenue. Each of these non-GAAP metrics
excludes certain income and expense items that the Company’s
management considers to be non-core/adjusted in nature. The Company
refers to these non-GAAP measures as adjusted measures. The
corresponding Supplemental Financial Information and Earnings
Release Presentation also presents tangible assets, tangible common
equity, tangible book value per common share, tangible common
equity to tangible assets, return on tangible common equity, return
on average tangible common equity and adjusted return on average
tangible common equity. Each of these non-GAAP metrics excludes the
impact of goodwill and other intangibles.
The Company’s management uses these non-GAAP financial measures
in their analysis of the Company’s performance, financial condition
and the efficiency of its operations as management believes such
measures facilitate period-to-period comparisons and provide
meaningful indications of its operating performance as they
eliminate both gains and charges that management views as
non-recurring or not indicative of operating performance.
Management believes that these non-GAAP financial measures provide
a greater understanding of ongoing operations and enhance
comparability of results with prior periods as well as demonstrate
the effects of significant non-core gains and charges in the
current and prior periods. The Company’s management also believes
that investors find these non-GAAP financial measures useful as
they assist investors in understanding the Company’s underlying
operating performance and in the analysis of ongoing operating
trends. In addition, because intangible assets such as goodwill and
other intangibles, and the other items excluded each vary
extensively from company to company, the Company believes that the
presentation of this information allows investors to more easily
compare the Company’s results to the results of other companies.
However, the non-GAAP financial measures discussed herein should
not be considered in isolation or as a substitute for the most
directly comparable or other financial measures calculated in
accordance with GAAP. Moreover, the manner in which the Company
calculates the non-GAAP financial measures discussed herein may
differ from that of other companies reporting measures with similar
names. Investors should understand how such other banking
organizations calculate their financial measures similar or with
names similar to the non-GAAP financial measures the Company has
discussed herein when comparing such non-GAAP financial measures.
See the “Use of non-GAAP Financial Measures” and the corresponding
non-GAAP reconciliation tables in the Supplemental Financial
Information as well as “Use of non-GAAP Financial Measures” and the
Appendix in the Earnings Release Presentation issued October 21,
2019, for a discussion and reconciliation of these measures to the
most directly comparable GAAP financial measures.
Financial Summary and Key
Metrics
(Unaudited)
(In Thousands, Except Share Data
and %)
2019
2018
Third Quarter
Second Quarter
Third Quarter
Statement of Income Data
Total interest income
$
73,242
$
71,719
$
62,612
Total interest expense
14,937
14,696
9,857
Net interest income
58,305
57,023
52,755
Provision for loan losses
1,831
881
1,818
Total noninterest income
38,145
32,979
34,355
Total noninterest expense
62,935
64,119
57,213
Net income before income taxes
31,684
25,002
28,079
Income tax expense
7,718
6,314
6,702
Net income
$
23,966
$
18,688
$
21,377
Net interest income (tax—equivalent
basis)
$
58,769
$
57,488
$
53,161
Net income, adjusted*
$
24,267
$
22,098
$
21,377
Per Common Share
Diluted net income
$
0.76
$
0.59
$
0.68
Diluted net income, adjusted*
0.77
0.70
0.68
Book value
24.08
23.29
21.12
Tangible book value*
18.03
17.18
16.25
Weighted average number of shares
outstanding- fully diluted
31,425,573
31,378,018
31,339,628
Period-end number of shares
30,927,664
30,865,636
30,715,792
Selected Balance Sheet Data
Cash and cash equivalents
$
242,997
$
164,336
$
181,630
Loans held for investment (HFI)
4,345,344
4,289,516
3,538,531
Allowance for loan losses
(31,464
)
(30,138
)
(27,608
)
Loans held for sale
305,493
294,699
323,486
Investment securities, at fair value
671,781
678,457
609,568
Other real estate owned, net
16,076
15,521
13,587
Total assets
6,088,895
5,940,402
5,058,167
Customer deposits
4,896,327
4,812,962
4,017,391
Brokered and internet time deposits
25,436
29,864
112,082
Total deposits
4,921,763
4,842,826
4,129,473
Borrowings
307,129
257,299
210,968
Total shareholders' equity
744,835
718,759
648,731
Selected Ratios
Return on average:
Assets
1.59
%
1.30
%
1.72
%
Shareholders' equity
13.0
%
10.6
%
13.3
%
Tangible common equity*
17.5
%
14.4
%
17.4
%
Average shareholders' equity to average
assets
12.2
%
12.3
%
12.9
%
Net interest margin (NIM) (tax-equivalent
basis)
4.28
%
4.39
%
4.71
%
Efficiency ratio (GAAP)
65.3
%
71.2
%
65.7
%
Core efficiency ratio (tax-equivalent
basis)*
64.5
%
65.9
%
65.7
%
Loans HFI to deposit ratio
88.3
%
88.6
%
85.7
%
Total loans to deposit ratio
94.5
%
94.7
%
93.5
%
Yield on interest-earning assets
5.37
%
5.52
%
5.58
%
Cost of interest-bearing liabilities
1.50
%
1.54
%
1.20
%
Cost of total deposits
1.11
%
1.14
%
0.80
%
Credit Quality Ratios
Allowance for loan losses as a percentage
of loans HFI
0.72
%
0.70
%
0.78
%
Net charge-off's as a percentage of
average loans HFI
0.05
%
0.05
%
0.06
%
Nonperforming loans HFI as a percentage of
total loans HFI
0.47
%
0.43
%
0.30
%
Nonperforming assets as a percentage of
total assets
0.62
%
0.59
%
0.51
%
Preliminary capital ratios
(Consolidated)
Shareholders' equity to assets
12.2
%
12.1
%
12.8
%
Tangible common equity to tangible
assets*
9.45
%
9.22
%
10.2
%
Tier 1 capital (to average assets)
10.1
%
10.0
%
11.3
%
Tier 1 capital (to risk-weighted
assets)
11.3
%
11.0
%
12.2
%
Total capital (to risk-weighted
assets)
12.0
%
11.6
%
12.8
%
Common Equity Tier 1 (to risk-weighted
assets) (CET1)
10.8
%
10.4
%
11.5
%
*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.
Non-GAAP
Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data
and %)
2019
2018
Net income, adjusted
Third Quarter
Second Quarter
Third Quarter
Pre-tax net income
$
31,684
$
25,002
$
28,079
Plus merger and mortgage restructuring
expenses
407
4,612
—
Pre-tax net income, adjusted
$
32,091
$
29,614
$
28,079
Income tax expense, adjusted
7,824
7,516
6,702
Net income, adjusted
$
24,267
$
22,098
$
21,377
Weighted average common shares
outstanding- fully diluted
31,425,573
31,378,018
31,339,628
Diluted earnings per share,
adjusted
Diluted earnings per common
share
$
0.76
$
0.59
$
0.68
Plus merger and mortgage restructuring
expenses
0.01
0.15
—
Less tax effect
—
0.04
—
Diluted earnings per share,
adjusted
$
0.77
$
0.70
$
0.68
Net income, adjusted
YTD 2019
2018
2017
Pre-tax net income
$
82,249
$
105,854
$
73,485
Plus merger, offering, and mortgage
restructuring expenses
6,694
2,265
19,034
Pre tax net income, adjusted
88,943
108,119
92,519
Income tax expense, adjusted
21,751
26,034
34,749
Net income, adjusted
$
67,192
$
82,085
$
57,770
Weighted average common shares
outstanding- fully diluted
31,378,786
31,314,981
28,207,602
Diluted earnings per share,
adjusted
Diluted earning per share
$
1.97
$
2.55
$
1.86
Plus merger, offering, and mortgage
restructuring expenses
0.21
0.07
0.67
Less tax effect and benefit of enacted tax
laws
0.05
0.01
0.48
Diluted earnings per share,
adjusted
$
2.13
$
2.61
$
2.05
2019
2018
Core efficiency ratio (tax-equivalent
basis)
Third Quarter
Second Quarter
Third Quarter
Total noninterest expense
$
62,935
$
64,119
$
57,213
Less merger and mortgage restructuring
expenses
407
4,612
—
Core noninterest expense
$
62,528
$
59,507
$
57,213
Net interest income (tax-equivalent
basis)
$
58,769
$
57,488
$
53,161
Total noninterest income
38,145
32,979
34,355
Less (loss) gain on sales or write-downs
of other real estate owned and other assets
(82
)
94
446
Less (loss) gain from securities, net
(20
)
52
(27
)
Core noninterest income
38,247
32,833
33,936
Core revenue
$
97,016
$
90,321
$
87,097
Efficiency ratio (GAAP)(a)
65.3
%
71.2
%
65.7
%
Core efficiency ratio (tax-equivalent
basis)
64.5
%
65.9
%
65.7
%
(a) Efficiency ratio (GAAP) is calculated
by dividing reported noninterest expense by reported total
revenue.
Non-GAAP
Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data
and %)
2019
2018
Banking segment core efficiency ratio
(tax equivalent)
Third Quarter
Second Quarter
Third Quarter
Core consolidated noninterest expense
$
62,528
$
59,507
$
57,213
Less Mortgage segment core noninterest
expense
15,686
17,835
18,821
Core Banking segment noninterest
expense
46,842
41,672
38,392
Core revenue
97,016
90,321
87,097
Less Mortgage segment total revenue
18,455
19,119
19,254
Core Banking segment total revenue
$
78,561
$
71,202
$
67,843
Banking segment core efficiency ratio
(tax-equivalent basis)
59.6
%
58.5
%
56.6
%
Mortgage segment core efficiency ratio
(tax equivalent)
Mortgage segment noninterest expense
$
15,798
$
18,664
$
18,821
Less mortgage restructuring expense
112
829
—
Core Mortgage segment noninterest
expense
$
15,686
$
17,835
$
18,821
Mortgage segment total revenue
$
18,455
$
19,119
19,254
Mortgage segment core efficiency ratio
(tax-equivalent basis)
85.0
%
93.3
%
97.8
%
2019
2018
Mortgage contribution, adjusted
Third Quarter
Second Quarter
Third Quarter
Mortgage segment pre-tax net
contribution
$
2,657
$
455
433
Retail footprint:
Mortgage banking income
10,693
5,451
7,417
Mortgage banking expenses
8,087
4,172
6,383
Retail footprint pre-tax net
contribution
2,606
1,279
1,034
Total mortgage banking pre-tax net
contribution
$
5,263
$
1,734
1,467
Plus mortgage restructuring expense
112
829
—
Total mortgage banking pre-tax net
contribution, adjusted
$
5,375
$
2,563
$
1,467
Pre-tax net income
$
31,684
$
25,002
$
28,079
% total mortgage banking pre-tax net
contribution
16.6
%
6.94
%
5.22
%
Pre-tax net income, adjusted
$
32,091
$
29,614
$
28,079
% total mortgage banking pre-tax net
contribution, adjusted
16.7
%
8.65
%
5.22
%
2019
2018
Tangible assets and equity
Third Quarter
Second Quarter
Third Quarter
Tangible Assets
Total assets
$
6,088,895
$
5,940,402
$
5,058,167
Less goodwill
168,486
168,486
137,190
Less intangibles, net
18,748
19,945
12,403
Tangible assets
$
5,901,661
$
5,751,971
$
4,908,574
Tangible Common Equity
Total shareholders' equity
$
744,835
$
718,759
$
648,731
Less goodwill
168,486
168,486
137,190
Less intangibles, net
18,748
19,945
12,403
Tangible common equity
$
557,601
$
530,328
$
499,138
Common shares outstanding
30,927,664
30,865,636
30,715,792
Book value per common share
$
24.08
$
23.29
$
21.12
Tangible book value per common
share
$
18.03
$
17.18
$
16.25
Total shareholders' equity to total
assets
12.2
%
12.1
%
12.8
%
Tangible common equity to tangible
assets
9.45
%
9.22
%
10.2
%
Non-GAAP
Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data
and %)
2019
2018
Return on average tangible common
equity
Third Quarter
Second Quarter
Third Quarter
Total average shareholders' equity
$
731,701
$
708,557
$
638,388
Less average goodwill
168,486
167,781
137,190
Less average intangibles, net
19,523
20,214
12,803
Average tangible common equity
$
543,692
$
520,562
$
488,395
Net income
$
23,966
$
18,688
$
21,377
Return on average tangible common
equity
17.5
%
14.4
%
17.4
%
2019
2018
Return on average tangible common
equity, adjusted
Third Quarter
Second Quarter
Third Quarter
Average tangible common equity
$
543,692
$
520,562
$
488,395
Net income, adjusted
24,267
22,098
21,377
Return on average tangible common
equity, adjusted
17.7
%
17.0
%
17.4
%
Return on average tangible common
equity
YTD 2019
2018
2017
Total average shareholders' equity
$
708,436
$
629,922
$
466,219
Less average goodwill
157,924
137,190
84,997
Less average intangibles, net
16,897
12,815
8,047
Average tangible common equity
$
533,615
$
479,917
$
373,175
Net income
62,242
80,236
52,398
Return on average tangible common
equity
15.6
%
16.7
%
14.0
%
Return on average tangible common
equity, adjusted
YTD 2019
2018
2017
Average tangible common equity
$
533,615
$
479,917
$
373,175
Net income, adjusted
67,192
82,085
57,770
Return on average tangible common
equity, adjusted
16.8
%
17.1
%
15.5
%
2019
2018
Return on average assets and equity,
adjusted
Third Quarter
Second Quarter
Third Quarter
Net income
$
23,966
$
18,688
$
21,377
Average assets
5,988,572
5,771,371
4,932,197
Average equity
731,701
708,557
638,388
Return on average assets
1.59
%
1.30
%
1.72
%
Return on average equity
13.0
%
10.6
%
13.3
%
Net income, adjusted
$
24,267
$
22,098
$
21,377
Return on average assets,
adjusted
1.61
%
1.54
%
1.72
%
Return on average equity,
adjusted
13.2
%
12.5
%
13.3
%
Return on average assets and equity,
adjusted
YTD 2019
2018
2017
Net income
$
62,242
$
80,236
$
52,398
Average assets
5,647,705
4,844,865
3,811,158
Average equity
708,436
629,922
466,219
Return on average assets
1.47
%
1.66
%
1.37
%
Return on average equity
11.7
%
12.7
%
11.2
%
Net income, adjusted
$
67,192
$
82,085
$
57,770
Return on average assets,
adjusted
1.59
%
1.69
%
1.52
%
Return on average equity,
adjusted
12.7
%
13.0
%
12.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191021005820/en/
MEDIA CONTACT: Jeanie M. Rittenberry 615-313-8328
jrittenberry@firstbankonline.com www.firstbankonline.com
FINANCIAL CONTACT: James R. Gordon 615-564-1212
jgordon@firstbankonline.com
investorrelations@firstbankonline.com
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