FB Financial Corporation Reports First Quarter 2023 Results
FB Financial Corporation (NYSE: FBK) reported a Q1 2023 net income of $36.4 million, or $0.78 per diluted share, compared to $0.81 in Q4 2022 and $0.74 in Q1 2022. The adjusted diluted EPS was $0.76, down from $0.85 in the previous quarter. Deposits grew by 12.2% annualized to $11.18 billion, while loans held for investment increased by 2.96% annualized to $9.37 billion. However, the net interest margin decreased to 3.51% from 3.78% in Q4 2022, primarily due to rising deposit costs. The company maintained a healthy liquidity position and improved credit quality metrics. Furthermore, they raised their dividend by 15.4%, reflecting confidence in their capital strength amidst economic uncertainties.
- Deposits increased by 12.2% annualized to $11.18 billion.
- Loans held for investment rose 2.96% annualized to $9.37 billion.
- Adjusted tangible book value per share increased by 8.09% to $27.06.
- Improved liquidity position and credit quality metrics.
- Raised dividend by 15.4%, demonstrating financial strength.
- Net interest margin decreased to 3.51% from 3.78% in Q4 2022.
- Adjusted diluted EPS decreased to $0.76 from $0.85 in Q4 2022.
- Noninterest income fell to $23.5 million from $41.4 million in Q1 2022.
Reports Q1 Diluted EPS of
The Company grew deposits to
President and Chief Executive Officer,
|
|
2023 |
|
2022 |
|
Annualized |
|
|
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(dollars in thousands, except per share and % data) |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
|
1Q23 / 4Q22
|
|
1Q23 / 1Q22
|
||||||||
Balance Sheet Highlights |
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, at fair value |
|
$ |
1,474,064 |
|
|
$ |
1,474,176 |
|
|
$ |
1,686,738 |
|
|
(0.03 |
)% |
|
(12.6 |
)% |
Mortgage loans held for sale(a) |
|
|
73,005 |
|
|
|
108,961 |
|
|
|
318,549 |
|
|
(133.8 |
)% |
|
(77.1 |
)% |
Commercial loans held for sale, at fair value |
|
|
9,510 |
|
|
|
30,490 |
|
|
|
78,179 |
|
|
(279.1 |
)% |
|
(87.8 |
)% |
Loans held for investment (HFI) |
|
|
9,365,996 |
|
|
|
9,298,212 |
|
|
|
8,004,976 |
|
|
2.96 |
% |
|
17.0 |
% |
Allowance for credit losses(b) |
|
|
138,809 |
|
|
|
134,192 |
|
|
|
120,049 |
|
|
14.0 |
% |
|
15.6 |
% |
Total assets |
|
|
13,101,147 |
|
|
|
12,847,756 |
|
|
|
12,674,191 |
|
|
8.00 |
% |
|
3.37 |
% |
Interest-bearing deposits |
|
|
8,693,766 |
|
|
|
8,179,203 |
|
|
|
8,208,580 |
|
|
25.5 |
% |
|
5.91 |
% |
Noninterest-bearing deposits |
|
|
2,489,149 |
|
|
|
2,676,631 |
|
|
|
2,787,698 |
|
|
(28.4 |
)% |
|
(10.7 |
)% |
Mortgage escrow deposits |
|
|
92,947 |
|
|
|
75,612 |
|
|
|
131,147 |
|
|
93.0 |
% |
|
(29.1 |
)% |
Total deposits |
|
|
11,182,915 |
|
|
|
10,855,834 |
|
|
|
10,996,278 |
|
|
12.2 |
% |
|
1.70 |
% |
Estimated insured or collateralized deposits |
|
|
7,926,537 |
|
|
|
7,288,641 |
|
|
|
7,631,005 |
|
|
35.5 |
% |
|
3.9 |
% |
Borrowings |
|
|
312,131 |
|
|
|
415,677 |
|
|
|
155,733 |
|
|
(101.0 |
)% |
|
100.4 |
% |
Total common shareholders' equity |
|
|
1,369,696 |
|
|
|
1,325,425 |
|
|
|
1,379,776 |
|
|
13.5 |
% |
|
(0.73 |
)% |
Book value per common share |
|
$ |
29.29 |
|
|
$ |
28.36 |
|
|
$ |
29.06 |
|
|
13.3 |
% |
|
0.79 |
% |
Total common shareholders' equity to total assets |
|
|
10.5 |
% |
|
|
10.3 |
% |
|
|
10.9 |
% |
|
|
|
|
||
Tangible book value per common share* |
|
$ |
23.86 |
|
|
$ |
22.90 |
|
|
$ |
23.62 |
|
|
17.0 |
% |
|
1.02 |
% |
Adjusted tangible book value per common share* |
|
$ |
27.06 |
|
|
$ |
26.53 |
|
|
$ |
25.12 |
|
|
8.09 |
% |
|
7.70 |
% |
Tangible common equity to tangible assets* |
|
|
8.68 |
% |
|
|
8.50 |
% |
|
|
9.03 |
% |
|
|
|
|
||
Estimated uninsured and uncollateralized deposits as a percentage of total deposits |
|
|
29.1 |
% |
|
|
32.9 |
% |
|
|
30.6 |
% |
|
|
|
|
||
* Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated |
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(a) Includes optional right to repurchase government guaranteed GNMA mortgage loans previously sold that have become past due greater than 90 days amounting to |
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(b) Excludes reserve for credit losses on unfunded commitments of |
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|
|
2023 |
|
2022 |
||||||||
(dollars in thousands, except share, per share, and % data) |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Statement of Income Highlights |
|
|
|
|
|
|
||||||
Net interest income |
|
$ |
103,660 |
|
|
$ |
110,498 |
|
|
$ |
88,182 |
|
NIM |
|
|
3.51 |
% |
|
|
3.78 |
% |
|
|
3.04 |
% |
Provisions for credit losses |
|
$ |
491 |
|
|
$ |
(456 |
) |
|
$ |
(4,247 |
) |
Net charge-off (recovery) ratio |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
(0.03 |
)% |
Noninterest income |
|
$ |
23,545 |
|
|
$ |
17,469 |
|
|
$ |
41,392 |
|
Mortgage banking income |
|
$ |
12,086 |
|
|
$ |
9,106 |
|
|
$ |
29,531 |
|
Total revenue |
|
$ |
127,205 |
|
|
$ |
127,967 |
|
|
$ |
129,574 |
|
Noninterest expense |
|
$ |
80,636 |
|
|
$ |
80,230 |
|
|
$ |
89,272 |
|
Efficiency ratio |
|
|
63.4 |
% |
|
|
62.7 |
% |
|
|
68.9 |
% |
Core efficiency ratio* |
|
|
63.4 |
% |
|
|
61.0 |
% |
|
|
68.1 |
% |
Adjusted pre-tax, pre-provision earnings* |
|
$ |
45,659 |
|
|
$ |
50,299 |
|
|
$ |
40,476 |
|
Net income applicable to |
|
$ |
36,381 |
|
|
$ |
38,143 |
|
|
$ |
35,236 |
|
Diluted earnings per common share |
|
$ |
0.78 |
|
|
$ |
0.81 |
|
|
$ |
0.74 |
|
Effective tax rate |
|
|
21.0 |
% |
|
|
20.8 |
% |
|
|
20.9 |
% |
Adjusted net income* |
|
$ |
35,708 |
|
|
$ |
40,045 |
|
|
$ |
35,365 |
|
Adjusted diluted earnings per common share* |
|
$ |
0.76 |
|
|
$ |
0.85 |
|
|
$ |
0.74 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
46,765,154 |
|
|
|
47,036,742 |
|
|
|
47,723,902 |
|
Actual shares outstanding - period end |
|
|
46,762,626 |
|
|
|
46,737,912 |
|
|
|
47,487,874 |
|
Returns on average: |
|
|
|
|
|
|
||||||
Return on average total assets |
|
|
1.15 |
% |
|
|
1.22 |
% |
|
|
1.13 |
% |
Return on average shareholders' equity |
|
|
11.0 |
% |
|
|
11.7 |
% |
|
|
10.1 |
% |
Return on average tangible common equity* |
|
|
13.6 |
% |
|
|
14.6 |
% |
|
|
12.4 |
% |
* Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated |
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Balance Sheet and Net Interest Margin
The Company reported loan balances ("HFI") of
Total deposits increased by
The Company’s net interest income on a tax equivalent basis decreased to
Holmes continued, "Our focus on liquidity and balance sheet management has served us well in recent months. We have consistently increased our on-balance sheet liquidity, including cash and cash equivalents, and maintained dry powder including untapped contingency funding sources."
Noninterest Income
Noninterest income was
Mortgage banking income increased to
Chief Financial Officer,
Expense Management
Noninterest expenses were
Mettee noted, “The Company's core efficiency ratio* moved higher during the quarter driven by pressure on top line revenue. Expense management will continue to be a focus as we navigate through the uncertain economic forecast and recent banking industry turmoil.”
Credit Quality
The Company recorded net provisions for credit losses expense of
The Company experienced net charge-offs of
The Company's nonperforming loans as a percent of loans HFI as of the end of the first quarter held steady at
Holmes commented, “Credit metrics for the Company exhibited improvements during the quarter. Charge-offs were flat and our asset quality showed improvement across the board. We had an increase in our allowance for credit losses to loans held for investment ratio as the economic growth outlook remains subdued and downside risks have increased.”
Capital Strength
Holmes continued, “We built on an already strong capital base during the quarter, even as we increased our dividend
Summary
Holmes finalized, "The challenges in the first quarter for the banking industry validated our active management of liquidity, credit and capital over recent quarters. As always we are focused on delivering for our customers, associates, communities and shareholders during all market cycles and we are prepared for a range of economic outcomes as we move through the remainder of the year."
| ______________________________ |
* Certain measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see “GAAP Reconciliation and Use of non-GAAP Financial Measures” and the corresponding non-GAAP reconciliation tables in this Earnings Release dated |
WEBCAST AND CONFERENCE CALL INFORMATION
A live online broadcast of the Company’s quarterly conference call will be available online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=msOfFBMF. An online replay will be available on the Company’s website approximately two hours after the conclusion of the call and will remain available for 12 months.
ABOUT
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
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Earnings Release that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s future plans, results, strategies, and expectations, including expectations around changing economic markets. 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,” “project,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management's current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) changes in government interest rate policies and its impact on the Company’s business, net interest margin, and mortgage operations, (3) any continuation of the recent turmoil in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response, (4) increased competition for deposits, (5) the Company’s ability to effectively manage problem credits, (6) any deterioration in commercial real estate market fundamentals, (7) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (8) the Company’s ability to successfully execute its various business strategies, (9) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (10) the potential impact of the phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (11) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted intrusions, (12) the Company's dependence on information technology systems of third party service providers and the risk of systems failures, interruptions, or breaches of security, and (13) the impact of natural disasters, pandemics, and/or acts of war or terrorism, (14) international or political instability, including the impacts related to or resulting from Russia’s military action in
The Company qualifies all forward-looking statements by these cautionary statements.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This Earnings Release contains certain financial measures that are not measures recognized under
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 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 with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures. See the corresponding non-GAAP reconciliation tables below in this Earnings Release for additional discussion and reconciliation of these measures to the most directly comparable GAAP financial measures.
Financial Summary and Key Metrics |
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(Unaudited) |
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(In Thousands, Except Share Data and %) |
||||||||||||
|
|
2023 |
|
2022 |
||||||||
|
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Selected Statement of Income Data |
|
|
|
|
|
|
||||||
Total interest income |
|
$ |
159,480 |
|
|
$ |
147,598 |
|
|
$ |
95,127 |
|
Total interest expense |
|
|
55,820 |
|
|
|
37,100 |
|
|
|
6,945 |
|
Net interest income |
|
|
103,660 |
|
|
|
110,498 |
|
|
|
88,182 |
|
Total noninterest income |
|
|
23,545 |
|
|
|
17,469 |
|
|
|
41,392 |
|
Total noninterest expense |
|
|
80,636 |
|
|
|
80,230 |
|
|
|
89,272 |
|
Earnings before income taxes and provisions for credit losses |
|
$ |
46,569 |
|
|
$ |
47,737 |
|
|
$ |
40,302 |
|
Provisions for credit losses |
|
$ |
491 |
|
|
$ |
(456 |
) |
|
$ |
(4,247 |
) |
Income tax expense |
|
|
9,697 |
|
|
|
10,042 |
|
|
|
9,313 |
|
Net income applicable to |
|
|
36,381 |
|
|
|
38,143 |
|
|
|
35,236 |
|
Net interest income (tax-equivalent basis) |
|
|
104,493 |
|
|
|
111,279 |
|
|
|
88,932 |
|
Adjusted net income* |
|
|
35,708 |
|
|
|
40,045 |
|
|
|
35,365 |
|
Adjusted pre-tax, pre-provision earnings* |
|
|
45,659 |
|
|
|
50,299 |
|
|
|
40,476 |
|
Per Common Share |
|
|
|
|
|
|
||||||
Diluted net income |
|
$ |
0.78 |
|
|
$ |
0.81 |
|
|
$ |
0.74 |
|
Adjusted diluted net income* |
|
|
0.76 |
|
|
|
0.85 |
|
|
|
0.74 |
|
Book value |
|
|
29.29 |
|
|
|
28.36 |
|
|
|
29.06 |
|
Tangible book value* |
|
|
23.86 |
|
|
|
22.90 |
|
|
|
23.62 |
|
Adjusted tangible book value* |
|
|
27.06 |
|
|
|
26.53 |
|
|
|
25.12 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
46,765,154 |
|
|
|
47,036,742 |
|
|
|
47,723,902 |
|
Period-end number of shares |
|
|
46,762,626 |
|
|
|
46,737,912 |
|
|
|
47,487,874 |
|
Selected Balance Sheet Data |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,319,951 |
|
|
$ |
1,027,052 |
|
|
$ |
1,743,311 |
|
Loans held for investment (HFI) |
|
|
9,365,996 |
|
|
|
9,298,212 |
|
|
|
8,004,976 |
|
Allowance for credit losses(a) |
|
|
(138,809 |
) |
|
|
(134,192 |
) |
|
|
(120,049 |
) |
Mortgage loans held for sale(b) |
|
|
73,005 |
|
|
|
108,961 |
|
|
|
318,549 |
|
Commercial loans held for sale, at fair value |
|
|
9,510 |
|
|
|
30,490 |
|
|
|
78,179 |
|
Investment securities, at fair value |
|
|
1,474,064 |
|
|
|
1,474,176 |
|
|
|
1,686,738 |
|
Other real estate owned, net |
|
|
4,085 |
|
|
|
5,794 |
|
|
|
9,721 |
|
Total assets |
|
|
13,101,147 |
|
|
|
12,847,756 |
|
|
|
12,674,191 |
|
Interest-bearing deposits |
|
|
8,693,766 |
|
|
|
8,179,203 |
|
|
|
8,208,580 |
|
Noninterest-bearing deposits |
|
|
2,489,149 |
|
|
|
2,676,631 |
|
|
|
2,787,698 |
|
Total deposits |
|
|
11,182,915 |
|
|
|
10,855,834 |
|
|
|
10,996,278 |
|
Estimated insured or collateralized deposits |
|
|
7,926,537 |
|
|
|
7,288,641 |
|
|
|
7,631,005 |
|
Borrowings |
|
|
312,131 |
|
|
|
415,677 |
|
|
|
155,733 |
|
Total common shareholders' equity |
|
|
1,369,696 |
|
|
|
1,325,425 |
|
|
|
1,379,776 |
|
Selected Ratios |
|
|
|
|
|
|
||||||
Return on average: |
|
|
|
|
|
|
||||||
Assets |
|
|
1.15 |
% |
|
|
1.22 |
% |
|
|
1.13 |
% |
Shareholders' equity |
|
|
11.0 |
% |
|
|
11.7 |
% |
|
|
10.1 |
% |
Tangible common equity* |
|
|
13.6 |
% |
|
|
14.6 |
% |
|
|
12.4 |
% |
Average shareholders' equity to average assets |
|
|
10.4 |
% |
|
|
10.4 |
% |
|
|
11.2 |
% |
Net interest margin (tax-equivalent basis) |
|
|
3.51 |
% |
|
|
3.78 |
% |
|
|
3.04 |
% |
Efficiency ratio (GAAP) |
|
|
63.4 |
% |
|
|
62.7 |
% |
|
|
68.9 |
% |
Core efficiency ratio (tax-equivalent basis)* |
|
|
63.4 |
% |
|
|
61.0 |
% |
|
|
68.1 |
% |
Loans HFI to deposit ratio |
|
|
83.8 |
% |
|
|
85.7 |
% |
|
|
72.8 |
% |
Total loans to deposit ratio |
|
|
84.5 |
% |
|
|
86.9 |
% |
|
|
76.4 |
% |
Noninterest-bearing deposits to total deposits |
|
|
22.3 |
% |
|
|
24.7 |
% |
|
|
25.4 |
% |
Yield on interest-earning assets |
|
|
5.38 |
% |
|
|
5.04 |
% |
|
|
3.28 |
% |
Cost of interest-bearing liabilities |
|
|
2.61 |
% |
|
|
1.84 |
% |
|
|
0.34 |
% |
Cost of total deposits |
|
|
1.94 |
% |
|
|
1.20 |
% |
|
|
0.20 |
% |
Estimated uninsured and uncollateralized deposits as a percentage of total deposits |
|
|
29.1 |
% |
|
|
32.9 |
% |
|
|
30.6 |
% |
Credit Quality Ratios |
|
|
|
|
|
|
||||||
Allowance for credit losses as a percentage of loans HFI(a) |
|
|
1.48 |
% |
|
|
1.44 |
% |
|
|
1.50 |
% |
Net charge-offs as a percentage of average loans HFI |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
(0.03 |
)% |
Nonperforming loans HFI as a percentage of total loans HFI |
|
|
0.49 |
% |
|
|
0.49 |
% |
|
|
0.51 |
% |
Nonperforming assets as a percentage of total assets(b) |
|
|
0.61 |
% |
|
|
0.68 |
% |
|
|
0.44 |
% |
Preliminary Capital Ratios (consolidated) |
|
|
|
|
|
|
||||||
Total common shareholders' equity to assets |
|
|
10.5 |
% |
|
|
10.3 |
% |
|
|
10.9 |
% |
Tangible common equity to tangible assets* |
|
|
8.68 |
% |
|
|
8.50 |
% |
|
|
9.03 |
% |
Tier 1 capital (to average assets) |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
10.2 |
% |
Tier 1 capital (to risk-weighted assets)(c) |
|
|
11.6 |
% |
|
|
11.3 |
% |
|
|
12.3 |
% |
Total capital (to risk-weighted assets)(c) |
|
|
13.5 |
% |
|
|
13.1 |
% |
|
|
14.2 |
% |
Common equity Tier 1 (to risk-weighted assets) (CET1)(c) |
|
|
11.3 |
% |
|
|
11.0 |
% |
|
|
12.0 |
% |
(a) Excludes reserve for credit losses on unfunded commitments of |
||||||||||||
(b) Includes optional right to repurchase seriously delinquent GNMA loans previously sold of |
||||||||||||
(c) Risk-weighted assets are calculated using the standardized method of the Basel III Framework. |
||||||||||||
*These measures are considered non-GAAP financial measures. For a reconciliation and discussion of this non-GAAP measure, see "GAAP Reconciliation and Use of non-GAAP Financial Measures" and the corresponding non-GAAP reconciliation tables in this Earnings Release dated |
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
|
|
|||||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted net income |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Income before income taxes |
|
$ |
46,078 |
|
|
$ |
48,193 |
|
|
$ |
44,549 |
|
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
910 |
|
|
|
(2,562 |
) |
|
|
(174 |
) |
Adjusted pre-tax net income |
|
|
45,168 |
|
|
|
50,755 |
|
|
|
44,723 |
|
Adjusted income tax expense |
|
|
9,460 |
|
|
|
10,710 |
|
|
|
9,358 |
|
Adjusted net income |
|
$ |
35,708 |
|
|
$ |
40,045 |
|
|
$ |
35,365 |
|
Weighted average common shares outstanding - fully diluted |
|
|
46,765,154 |
|
|
|
47,036,742 |
|
|
|
47,723,902 |
|
Adjusted diluted earnings per common share |
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
0.78 |
|
|
$ |
0.81 |
|
|
$ |
0.74 |
|
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
— |
|
Less tax effect |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Adjusted diluted earnings per common share |
|
$ |
0.76 |
|
|
$ |
0.85 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted pre-tax pre-provision earnings |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Income before income taxes |
|
$ |
46,078 |
|
|
$ |
48,193 |
|
|
$ |
44,549 |
|
Plus provisions for credit losses |
|
|
491 |
|
|
|
(456 |
) |
|
|
(4,247 |
) |
Pre-tax pre-provision earnings |
|
|
46,569 |
|
|
|
47,737 |
|
|
|
40,302 |
|
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
910 |
|
|
|
(2,562 |
) |
|
|
(174 |
) |
Adjusted pre-tax pre-provision earnings |
|
$ |
45,659 |
|
|
$ |
50,299 |
|
|
$ |
40,476 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Core efficiency ratio (tax-equivalent basis) |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Core noninterest expense |
|
$ |
80,636 |
|
|
$ |
80,230 |
|
|
$ |
89,272 |
|
Net interest income (tax-equivalent basis) |
|
$ |
104,493 |
|
|
$ |
111,279 |
|
|
$ |
88,932 |
|
Total noninterest income |
|
|
23,545 |
|
|
|
17,469 |
|
|
|
41,392 |
|
Less gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
910 |
|
|
|
(2,562 |
) |
|
|
(174 |
) |
Less loss from sales or write-downs of other real estate owned and other assets |
|
|
(183 |
) |
|
|
(252 |
) |
|
|
(434 |
) |
Less gain (loss) from securities, net |
|
|
69 |
|
|
|
25 |
|
|
|
(152 |
) |
Core noninterest income |
|
|
22,749 |
|
|
|
20,258 |
|
|
|
42,152 |
|
Core revenue |
|
$ |
127,242 |
|
|
$ |
131,537 |
|
|
$ |
131,084 |
|
Efficiency ratio (GAAP)(a) |
|
|
63.4 |
% |
|
|
62.7 |
% |
|
|
68.9 |
% |
Core efficiency ratio (tax-equivalent basis) |
|
|
63.4 |
% |
|
|
61.0 |
% |
|
|
68.1 |
% |
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue. |
||||||||||||
Non-GAAP Reconciliation (continued) |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
2023 |
|
2022 |
||||||||
Tangible assets and equity |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Tangible assets |
|
|
|
|
|
|
||||||
Total assets |
|
$ |
13,101,147 |
|
|
$ |
12,847,756 |
|
|
$ |
12,674,191 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
11,378 |
|
|
|
12,368 |
|
|
|
15,709 |
|
Tangible assets |
|
$ |
12,847,208 |
|
|
$ |
12,592,827 |
|
|
$ |
12,415,921 |
|
Tangible common equity |
|
|
|
|
|
|
||||||
Total common shareholders' equity |
|
$ |
1,369,696 |
|
|
$ |
1,325,425 |
|
|
$ |
1,379,776 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
11,378 |
|
|
|
12,368 |
|
|
|
15,709 |
|
Tangible common equity |
|
$ |
1,115,757 |
|
|
$ |
1,070,496 |
|
|
$ |
1,121,506 |
|
Less accumulated other comprehensive loss, net |
|
|
(149,566 |
) |
|
|
(169,433 |
) |
|
|
(71,544 |
) |
Adjusted tangible common equity |
|
|
1,265,323 |
|
|
|
1,239,929 |
|
|
|
1,193,050 |
|
Common shares outstanding |
|
|
46,762,626 |
|
|
|
46,737,912 |
|
|
|
47,487,874 |
|
Book value per common share |
|
$ |
29.29 |
|
|
$ |
28.36 |
|
|
$ |
29.06 |
|
Tangible book value per common share Tangible book value per common share |
|
$ |
23.86 |
|
|
$ |
22.90 |
|
|
$ |
23.62 |
|
Adjusted tangible book value per common share |
|
$ |
27.06 |
|
|
$ |
26.53 |
|
|
$ |
25.12 |
|
Total common shareholders' equity to total assets |
|
|
10.5 |
% |
|
|
10.3 |
% |
|
|
10.9 |
% |
Tangible common equity to tangible assets |
|
|
8.68 |
% |
|
|
8.50 |
% |
|
|
9.03 |
% |
On-balance sheet liquidity: |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,319,951 |
|
|
$ |
1,027,052 |
|
|
$ |
1,743,311 |
|
Unpledged securities |
|
|
286,169 |
|
|
|
280,165 |
|
|
|
430,118 |
|
Equity securities, at fair value |
|
|
3,059 |
|
|
|
2,990 |
|
|
|
3,213 |
|
Total on-balance sheet liquidity |
|
$ |
1,609,179 |
|
|
$ |
1,310,207 |
|
|
$ |
2,176,642 |
|
On-balance sheet liquidity as a percentage of total assets |
|
|
12.3 |
% |
|
|
10.2 |
% |
|
|
17.2 |
% |
On-balance sheet liquidity as a percentage of total tangible assets |
|
|
12.5 |
% |
|
|
10.4 |
% |
|
|
17.5 |
% |
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Return on average tangible common equity |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Average common shareholders' equity |
|
$ |
1,343,227 |
|
|
$ |
1,294,758 |
|
|
$ |
1,415,985 |
|
Less average goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less average intangibles, net |
|
|
11,862 |
|
|
|
12,865 |
|
|
|
16,376 |
|
Average tangible common equity |
|
$ |
1,088,804 |
|
|
$ |
1,039,332 |
|
|
$ |
1,157,048 |
|
Net income |
|
$ |
36,381 |
|
|
$ |
38,143 |
|
|
$ |
35,236 |
|
Return on average common equity |
|
|
11.0 |
% |
|
|
11.7 |
% |
|
|
10.1 |
% |
Return on average tangible common equity |
|
|
13.6 |
% |
|
|
14.6 |
% |
|
|
12.4 |
% |
Adjusted net income |
|
$ |
35,708 |
|
|
$ |
40,045 |
|
|
$ |
35,365 |
|
Adjusted return on average tangible common equity |
|
|
13.3 |
% |
|
|
15.3 |
% |
|
|
12.4 |
% |
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted return on average assets and equity |
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
||||||
Net income |
|
$ |
36,381 |
|
|
$ |
38,143 |
|
|
$ |
35,236 |
|
Average assets |
|
|
12,861,614 |
|
|
|
12,446,027 |
|
|
|
12,641,489 |
|
Average common equity |
|
|
1,343,227 |
|
|
|
1,294,758 |
|
|
|
1,415,985 |
|
Return on average assets |
|
|
1.15 |
% |
|
|
1.22 |
% |
|
|
1.13 |
% |
Return on average common equity |
|
|
11.0 |
% |
|
|
11.7 |
% |
|
|
10.1 |
% |
Adjusted net income |
|
$ |
35,708 |
|
|
$ |
40,045 |
|
|
$ |
35,365 |
|
Adjusted return on average assets |
|
|
1.13 |
% |
|
|
1.28 |
% |
|
|
1.13 |
% |
Adjusted return on average common equity |
|
|
10.8 |
% |
|
|
12.3 |
% |
|
|
10.1 |
% |
Adjusted pre-tax pre-provision earnings |
|
$ |
45,659 |
|
|
$ |
50,299 |
|
|
$ |
40,476 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
1.44 |
% |
|
|
1.60 |
% |
|
|
1.30 |
% |
(FBK - ER)
View source version on businesswire.com: https://www.businesswire.com/news/home/20230417005782/en/
MEDIA CONTACT:
615-313-8328
jrittenberry@firstbankonline.com
www.firstbankonline.com
FINANCIAL CONTACT:
615-564-1212
mmettee@firstbankonline.com
investorrelations@firstbankonline.com
Source:
FAQ
What were FBK's earnings for Q1 2023?
How did FBK's net interest margin change in Q1 2023?
What was the diluted EPS for FBK in Q1 2023?
Did FBK increase its dividend in 2023?
What is the total amount of deposits for FBK in Q1 2023?
