FB Financial Corporation Reports Fourth Quarter 2022 and Annual Results
FB Financial Corporation (NYSE: FBK) reported Q4 2022 net income of $38.1 million, or $0.81 per diluted share, showing a decrease from $1.02 year-over-year. Adjusted EPS was $0.85, down from $0.89 in Q4 2021. For the year, net income totaled $124.6 million, a decline from $190.3 million in 2021. The company achieved a significant 33.7% annualized growth in deposits, reaching $10.9 billion. Total assets increased to $12.8 billion, reflecting a 19.1% annualized growth. However, net interest margin decreased to 3.78% from 3.93% in Q3 2022. Noninterest income fell to $17.5 million from $53.2 million a year prior, largely due to a decline in mortgage banking income.
- 33.7% annualized deposit growth, totaling $10.9 billion.
- Total assets increased to $12.8 billion, 19.1% annualized growth.
- Adjusted tangible book value per share rose to $26.53, an annualized increase of 10.6%.
- Maintained strong credit quality metrics with minimal charge-offs.
- Net income decreased to $38.1 million from $48.8 million year-over-year.
- Adjusted EPS fell to $0.85, down from $0.89 in Q4 2021.
- Net interest margin decreased to 3.78% from 3.93% in previous quarter.
- Noninterest income significantly declined to $17.5 million from $53.2 million year-over-year.
Reports Q4 Diluted EPS of
For the year ended
The Company grew deposits to
President and Chief Executive Officer,
|
|
2022 |
|
2021 |
|
Annualized |
|
|
||||||||||
(dollars in thousands, except per share data) |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
|
4Q22 / 3Q22
|
|
4Q22 / 4Q21
|
||||||||
Balance Sheet Highlights |
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, at fair value |
|
$ |
1,474,176 |
|
|
$ |
1,485,133 |
|
|
$ |
1,681,892 |
|
|
(2.93 |
)% |
|
(12.4 |
)% |
Mortgage loans held for sale, at fair value |
|
|
108,961 |
|
|
|
97,011 |
|
|
|
672,924 |
|
|
48.9 |
% |
|
(83.8 |
)% |
Commercial loans held for sale, at fair value |
|
|
30,490 |
|
|
|
33,722 |
|
|
|
79,299 |
|
|
(38.0 |
)% |
|
(61.6 |
)% |
Loans held for investment (HFI) |
|
|
9,298,212 |
|
|
|
9,105,016 |
|
|
|
7,604,662 |
|
|
8.42 |
% |
|
22.3 |
% |
Allowance for credit losses(a) |
|
|
134,192 |
|
|
|
134,476 |
|
|
|
125,559 |
|
|
(0.84 |
)% |
|
6.88 |
% |
Total assets |
|
|
12,847,756 |
|
|
|
12,258,082 |
|
|
|
12,597,686 |
|
|
19.1 |
% |
|
1.99 |
% |
Interest-bearing deposits |
|
|
8,179,203 |
|
|
|
7,039,568 |
|
|
|
8,096,683 |
|
|
64.2 |
% |
|
1.02 |
% |
Noninterest-bearing deposits |
|
|
2,676,631 |
|
|
|
2,966,514 |
|
|
|
2,740,214 |
|
|
(38.8 |
)% |
|
(2.32 |
)% |
Mortgage escrow deposits |
|
|
75,612 |
|
|
|
140,768 |
|
|
|
127,617 |
|
|
(183.6 |
)% |
|
(40.8 |
)% |
Total deposits |
|
|
10,855,834 |
|
|
|
10,006,082 |
|
|
|
10,836,897 |
|
|
33.7 |
% |
|
0.17 |
% |
Borrowings |
|
|
415,677 |
|
|
|
722,940 |
|
|
|
171,778 |
|
|
(168.6 |
)% |
|
142.0 |
% |
Total common shareholders' equity |
|
|
1,325,425 |
|
|
|
1,281,161 |
|
|
|
1,432,602 |
|
|
13.7 |
% |
|
(7.48 |
)% |
Book value per share |
|
$ |
28.36 |
|
|
$ |
27.30 |
|
|
$ |
30.13 |
|
|
15.4 |
% |
|
(5.87 |
)% |
Total common shareholders' equity to total assets |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
11.4 |
% |
|
|
|
|
||
Tangible book value per common share* |
|
$ |
22.90 |
|
|
$ |
21.85 |
|
|
$ |
24.67 |
|
|
19.1 |
% |
|
(7.17 |
)% |
Adjusted tangible book value per common share* |
|
$ |
26.53 |
|
|
$ |
25.84 |
|
|
$ |
24.55 |
|
|
10.6 |
% |
|
8.07 |
% |
Tangible common equity to tangible assets* |
|
|
8.50 |
% |
|
|
8.54 |
% |
|
|
9.51 |
% |
|
|
|
|
||
* 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 |
||||||||||||||||||
(a) Excludes reserve for credit losses on unfunded commitments of |
||||||||||||||||||
|
|
2022 |
|
2021 |
||||||||
(dollars in thousands, except share and per share data) |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Results of operations |
|
|
|
|
|
|
||||||
Net interest income |
|
$ |
110,498 |
|
|
$ |
111,384 |
|
|
$ |
89,755 |
|
NIM |
|
|
3.78 |
% |
|
|
3.93 |
% |
|
|
3.19 |
% |
Provisions for credit losses |
|
$ |
(456 |
) |
|
$ |
11,367 |
|
|
$ |
(10,769 |
) |
Net charge-off ratio |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.12 |
% |
Noninterest income |
|
$ |
17,469 |
|
|
$ |
22,592 |
|
|
$ |
53,219 |
|
Mortgage banking income |
|
$ |
9,106 |
|
|
$ |
12,384 |
|
|
$ |
31,350 |
|
Total revenue |
|
$ |
127,967 |
|
|
$ |
133,976 |
|
|
$ |
142,974 |
|
Noninterest expense |
|
$ |
80,230 |
|
|
$ |
81,847 |
|
|
$ |
90,902 |
|
Core noninterest expense* |
|
$ |
80,230 |
|
|
$ |
81,847 |
|
|
$ |
89,480 |
|
Efficiency ratio |
|
|
62.7 |
% |
|
|
61.1 |
% |
|
|
63.6 |
% |
Core efficiency ratio* |
|
|
61.0 |
% |
|
|
60.7 |
% |
|
|
67.0 |
% |
Adjusted pre-tax, pre-provision earnings* |
|
$ |
50,299 |
|
|
$ |
52,516 |
|
|
$ |
43,573 |
|
Adjusted Banking segment pre-tax, pre-provision earnings* |
|
$ |
54,479 |
|
|
$ |
56,178 |
|
|
$ |
42,863 |
|
Adjusted Mortgage segment pre-tax, pre-provision (loss) earnings* |
|
$ |
(4,180 |
) |
|
$ |
(3,662 |
) |
|
$ |
710 |
|
Net income applicable to |
|
$ |
38,143 |
|
|
$ |
31,831 |
|
|
$ |
48,827 |
|
Diluted earnings per common share |
|
$ |
0.81 |
|
|
$ |
0.68 |
|
|
$ |
1.02 |
|
Effective tax rate |
|
|
20.8 |
% |
|
|
21.9 |
% |
|
|
22.3 |
% |
Adjusted net income* |
|
$ |
40,045 |
|
|
$ |
32,117 |
|
|
$ |
42,551 |
|
Adjusted diluted earnings per common share* |
|
$ |
0.85 |
|
|
$ |
0.68 |
|
|
$ |
0.89 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
47,036,742 |
|
|
|
47,024,611 |
|
|
|
47,896,715 |
|
Actual shares outstanding - period end |
|
|
46,737,912 |
|
|
|
46,926,377 |
|
|
|
47,549,241 |
|
Returns on average: |
|
|
|
|
|
|
||||||
Assets ("ROAA") |
|
|
1.22 |
% |
|
|
1.05 |
% |
|
|
1.60 |
% |
Equity ("ROAE") |
|
|
11.7 |
% |
|
|
9.45 |
% |
|
|
13.7 |
% |
Tangible common equity ("ROATCE")* |
|
|
14.6 |
% |
|
|
11.7 |
% |
|
|
16.8 |
% |
* 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 |
||||||||||||
(1) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth quarters of 2022 and 2021. |
||||||||||||
Balance Sheet and Net Interest Margin
The Company reported loan balances (HFI) of
Total deposits increased by
The Company’s net interest income decreased on a tax equivalent basis to
Holmes continued, "Maintaining optionality in the Company's liquidity profile positions us well for additional balance sheet growth and maximizing profitability in future quarters."
Noninterest Income
Noninterest income was
Mortgage banking income decreased to
Chief Financial Officer,
Expense Management
Noninterest expenses were
Mortgage segment noninterest expense was
During the fourth quarter of 2022, the Company's core efficiency ratio was
Mettee noted, “The Company's overall efficiency ratio was relatively stable for the quarter and the Banking segment moved slightly higher due to a modestly higher expense load and lower loan fees impacting top line revenue.”
Credit Quality
The Company recorded a net reversal in provisions for credit losses of
The Company experienced net charge offs of
The Company's nonperforming loans as a percent of loans HFI were
Holmes commented, “Our loan portfolio continues to exhibit strong credit quality metrics. We had minimal charge-offs in the quarter, which is consistent with our results for the year, and our balance sheet is positioned for potential economic headwinds in 2023.”
Capital Strength
“We remain in a position of capital strength with a Common Equity Tier 1 ratio of
Summary
Holmes summarized, "The fourth quarter results demonstrated our ability to raise customer deposits in a challenging environment. The growth resulted in net interest margin contraction, but positions the Company well as we move into 2023. We remain positioned for a range of economic outcomes by concentrating on liquidity, credit and capital in the near term. A focused discipline on these priorities will serve our customers, associates, communities, and shareholders well during the coming year."
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=hqRQfmWF. 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
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part of the Supplemental Financial Information, which is available in connection with this Earnings Release. A detailed discussion of historical business segment results is included in the Company’s Annual Report on Form 10-K filed with 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) the Company’s ability to effectively manage problem credits, (4) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from, potential future acquisitions, (5) difficulties and delays in integrating acquired businesses or fully realizing costs savings, revenue synergies and other benefits from future and prior acquisitions, (6) the Company’s ability to successfully execute its various business strategies, (7) changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including legislative developments, (8) the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR, (9) the effectiveness of the Company’s cybersecurity controls and procedures to prevent and mitigate attempted intrusions, (10) 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 (11) the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; (12) natural disasters or acts of war or terrorism, (13) 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 |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
2022 |
|
2021 |
||||||||
|
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Statement of Income Data |
|
|
|
|
|
|
||||||
Total interest income |
|
$ |
147,598 |
|
|
$ |
128,483 |
|
|
$ |
97,219 |
|
Total interest expense |
|
|
37,100 |
|
|
|
17,099 |
|
|
|
7,464 |
|
Net interest income |
|
|
110,498 |
|
|
|
111,384 |
|
|
|
89,755 |
|
Total noninterest income |
|
|
17,469 |
|
|
|
22,592 |
|
|
|
53,219 |
|
Total noninterest expense |
|
|
80,230 |
|
|
|
81,847 |
|
|
|
90,902 |
|
Earnings before income taxes and provisions for credit losses |
|
|
47,737 |
|
|
|
52,129 |
|
|
|
52,072 |
|
Provisions for credit losses |
|
|
(456 |
) |
|
|
11,367 |
|
|
|
(10,769 |
) |
Income tax expense |
|
|
10,042 |
|
|
|
8,931 |
|
|
|
14,006 |
|
Net income applicable to noncontrolling interest |
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
Net income applicable to |
|
$ |
38,143 |
|
|
$ |
31,831 |
|
|
$ |
48,827 |
|
Net interest income (tax-equivalent basis) |
|
$ |
111,279 |
|
|
$ |
112,145 |
|
|
$ |
90,537 |
|
Adjusted net income* |
|
$ |
40,045 |
|
|
$ |
32,117 |
|
|
$ |
42,551 |
|
Adjusted pre-tax, pre-provision earnings* |
|
$ |
50,299 |
|
|
$ |
52,516 |
|
|
$ |
43,573 |
|
Per Common Share |
|
|
|
|
|
|
||||||
Diluted net income |
|
$ |
0.81 |
|
|
$ |
0.68 |
|
|
$ |
1.02 |
|
Adjusted diluted net income* |
|
|
0.85 |
|
|
|
0.68 |
|
|
|
0.89 |
|
Book value |
|
|
28.36 |
|
|
|
27.30 |
|
|
|
30.13 |
|
Tangible book value* |
|
|
22.90 |
|
|
|
21.85 |
|
|
|
24.67 |
|
Adjusted tangible book value* |
|
|
26.53 |
|
|
|
25.84 |
|
|
|
24.55 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
47,036,742 |
|
|
|
47,024,611 |
|
|
|
47,896,715 |
|
Period-end number of shares |
|
|
46,737,912 |
|
|
|
46,926,377 |
|
|
|
47,549,241 |
|
Selected Balance Sheet Data |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,027,052 |
|
|
$ |
618,290 |
|
|
$ |
1,797,740 |
|
Loans held for investment (HFI) |
|
|
9,298,212 |
|
|
|
9,105,016 |
|
|
|
7,604,662 |
|
Allowance for credit losses(b) |
|
|
(134,192 |
) |
|
|
(134,476 |
) |
|
|
(125,559 |
) |
Mortgage loans held for sale, at fair value(c) |
|
|
108,961 |
|
|
|
97,011 |
|
|
|
672,924 |
|
Commercial loans held for sale, at fair value |
|
|
30,490 |
|
|
|
33,722 |
|
|
|
79,299 |
|
Investment securities, at fair value |
|
|
1,474,176 |
|
|
|
1,485,133 |
|
|
|
1,681,892 |
|
Other real estate owned, net |
|
|
5,794 |
|
|
|
5,919 |
|
|
|
9,777 |
|
Total assets |
|
|
12,847,756 |
|
|
|
12,258,082 |
|
|
|
12,597,686 |
|
Interest-bearing deposits |
|
|
8,179,203 |
|
|
|
7,039,568 |
|
|
|
8,096,683 |
|
Noninterest-bearing deposits |
|
|
2,676,631 |
|
|
|
2,966,514 |
|
|
|
2,740,214 |
|
Total deposits |
|
|
10,855,834 |
|
|
|
10,006,082 |
|
|
|
10,836,897 |
|
Borrowings |
|
|
415,677 |
|
|
|
722,940 |
|
|
|
171,778 |
|
Total common shareholders' equity |
|
|
1,325,425 |
|
|
|
1,281,161 |
|
|
|
1,432,602 |
|
Selected Ratios |
|
|
|
|
|
|
||||||
Return on average: |
|
|
|
|
|
|
||||||
Assets |
|
|
1.22 |
% |
|
|
1.05 |
% |
|
|
1.60 |
% |
Shareholders' equity |
|
|
11.7 |
% |
|
|
9.45 |
% |
|
|
13.7 |
% |
Tangible common equity* |
|
|
14.6 |
% |
|
|
11.7 |
% |
|
|
16.8 |
% |
Average shareholders' equity to average assets |
|
|
10.4 |
% |
|
|
11.1 |
% |
|
|
11.7 |
% |
Net interest margin (tax-equivalent basis) |
|
|
3.78 |
% |
|
|
3.93 |
% |
|
|
3.19 |
% |
Efficiency ratio (GAAP) |
|
|
62.7 |
% |
|
|
61.1 |
% |
|
|
63.6 |
% |
Core efficiency ratio (tax-equivalent basis)* |
|
|
61.0 |
% |
|
|
60.7 |
% |
|
|
67.0 |
% |
Loans HFI to deposit ratio |
|
|
85.7 |
% |
|
|
91.0 |
% |
|
|
70.2 |
% |
Total loans to deposit ratio |
|
|
86.9 |
% |
|
|
92.3 |
% |
|
|
77.1 |
% |
Noninterest-bearing deposits to total deposits |
|
|
24.7 |
% |
|
|
29.6 |
% |
|
|
25.3 |
% |
Yield on interest-earning assets |
|
|
5.04 |
% |
|
|
4.53 |
% |
|
|
3.45 |
% |
Cost of interest-bearing liabilities |
|
|
1.84 |
% |
|
|
0.90 |
% |
|
|
0.38 |
% |
Cost of total deposits |
|
|
1.20 |
% |
|
|
0.52 |
% |
|
|
0.22 |
% |
Credit Quality Ratios |
|
|
|
|
|
|
||||||
Allowance for credit losses as a percentage of loans HFI(b) |
|
|
1.44 |
% |
|
|
1.48 |
% |
|
|
1.65 |
% |
Net charge-offs as a percentage of average loans HFI |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.12 |
% |
Nonperforming loans HFI as a percentage of total loans HFI |
|
|
0.49 |
% |
|
|
0.47 |
% |
|
|
0.62 |
% |
Nonperforming assets as a percentage of total assets(c) |
|
|
0.68 |
% |
|
|
0.62 |
% |
|
|
0.50 |
% |
Preliminary capital ratios (Consolidated) |
|
|
|
|
|
|
||||||
Total common shareholders' equity to assets |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
11.4 |
% |
Tangible common equity to tangible assets* |
|
|
8.50 |
% |
|
|
8.54 |
% |
|
|
9.51 |
% |
Tier 1 capital (to average assets) |
|
|
10.5 |
% |
|
|
10.7 |
% |
|
|
10.5 |
% |
Tier 1 capital (to risk-weighted assets)(d) |
|
|
11.3 |
% |
|
|
11.2 |
% |
|
|
12.6 |
% |
Total capital (to risk-weighted assets)(d) |
|
|
13.1 |
% |
|
|
13.0 |
% |
|
|
14.5 |
% |
Common equity Tier 1 (to risk-weighted assets) (CET1)(d) |
|
|
11.0 |
% |
|
|
10.9 |
% |
|
|
12.3 |
% |
(a) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the fourth quarter of 2022 and the fourth quarter of 2021. |
||||||||||||
(b) Excludes reserve for credit losses on unfunded commitments of |
||||||||||||
(c) Includes optional right to repurchase seriously delinquent GNMA loans previously sold of |
||||||||||||
(d) 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 %) |
||||||||||||
|
|
|
|
|||||||||
|
|
2022 |
|
2021 |
||||||||
Adjusted net income |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Income before income taxes |
|
$ |
48,193 |
|
|
$ |
40,762 |
|
|
$ |
62,841 |
|
Less other non-operating items(1) |
|
|
(2,562 |
) |
|
|
(387 |
) |
|
|
8,499 |
|
Adjusted pre-tax net income |
|
|
50,755 |
|
|
|
41,149 |
|
|
|
54,342 |
|
Adjusted income tax expense |
|
|
10,710 |
|
|
|
9,032 |
|
|
|
11,791 |
|
Adjusted net income |
|
$ |
40,045 |
|
|
$ |
32,117 |
|
|
$ |
42,551 |
|
Weighted average common shares outstanding - fully diluted |
|
|
47,036,742 |
|
|
|
47,024,611 |
|
|
|
47,896,715 |
|
Adjusted diluted earnings per common share |
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
0.81 |
|
|
$ |
0.68 |
|
|
$ |
1.02 |
|
Less other non-operating items |
|
|
(0.05 |
) |
|
|
— |
|
|
|
0.18 |
|
Less tax effect |
|
|
0.01 |
|
|
|
— |
|
|
|
(0.05 |
) |
Adjusted diluted earnings per common share |
|
$ |
0.85 |
|
|
$ |
0.68 |
|
|
$ |
0.89 |
|
(1) 4Q22 includes a |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||||
Adjusted net income |
|
2022 |
|
2021 |
|
2020 |
||||||
Income before income taxes |
|
$ |
159,574 |
|
|
$ |
243,051 |
|
|
$ |
82,461 |
|
Plus mortgage restructuring and offering expenses |
|
|
12,458 |
|
|
|
605 |
|
|
|
34,879 |
|
Plus initial provision for credit losses on acquired loans and unfunded commitments |
|
|
— |
|
|
|
— |
|
|
|
66,136 |
|
Less other non-operating items(1) |
|
|
(5,133 |
) |
|
|
11,032 |
|
|
|
(4,400 |
) |
Adjusted pre-tax net income |
|
|
177,165 |
|
|
|
232,624 |
|
|
|
187,876 |
|
Adjusted income tax expense(2) |
|
|
39,587 |
|
|
|
51,553 |
|
|
|
45,944 |
|
Adjusted net income |
|
$ |
137,578 |
|
|
$ |
181,071 |
|
|
$ |
141,932 |
|
Weighted average common shares outstanding - fully diluted |
|
|
47,239,791 |
|
|
|
47,955,880 |
|
|
|
38,099,744 |
|
Adjusted diluted earnings per share |
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
2.64 |
|
|
$ |
3.97 |
|
|
$ |
1.67 |
|
Plus mortgage restructuring and offering expenses |
|
|
0.26 |
|
|
|
0.01 |
|
|
|
0.92 |
|
Plus initial provision for credit losses on acquired loans and unfunded commitments |
|
|
— |
|
|
|
— |
|
|
|
1.74 |
|
Less other non-operating items |
|
|
(0.11 |
) |
|
|
0.22 |
|
|
|
(0.11 |
) |
Less tax effect |
|
|
0.10 |
|
|
|
(0.02 |
) |
|
|
0.71 |
|
Adjusted diluted earnings per common share |
|
$ |
2.91 |
|
|
$ |
3.78 |
|
|
$ |
3.73 |
|
(1) 2022 includes a |
||||||||||||
(2) 2021 includes a
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Adjusted pre-tax pre-provision earnings |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Income before income taxes |
|
$ |
48,193 |
|
|
$ |
40,762 |
|
|
$ |
62,841 |
|
Plus provisions for credit losses |
|
|
(456 |
) |
|
|
11,367 |
|
|
|
(10,769 |
) |
Pre-tax pre-provision earnings |
|
|
47,737 |
|
|
|
52,129 |
|
|
|
52,072 |
|
Less other non-operating items |
|
|
(2,562 |
) |
|
|
(387 |
) |
|
|
8,499 |
|
Adjusted pre-tax pre-provision earnings |
|
$ |
50,299 |
|
|
$ |
52,516 |
|
|
$ |
43,573 |
|
|
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Core efficiency ratio (tax-equivalent basis) |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Total noninterest expense |
|
$ |
80,230 |
|
|
$ |
81,847 |
|
|
$ |
90,902 |
|
Less certain charitable contributions |
|
|
— |
|
|
|
— |
|
|
|
1,422 |
|
Core noninterest expense |
|
$ |
80,230 |
|
|
$ |
81,847 |
|
|
$ |
89,480 |
|
Net interest income (tax-equivalent basis) |
|
$ |
111,279 |
|
|
$ |
112,145 |
|
|
$ |
90,537 |
|
Total noninterest income |
|
|
17,469 |
|
|
|
22,592 |
|
|
|
53,219 |
|
Less (loss) gain on change in fair value on commercial loans held for sale |
|
|
(2,562 |
) |
|
|
(387 |
) |
|
|
9,921 |
|
Less (loss) gain on sales or write-downs of other real estate owned and other assets |
|
|
(252 |
) |
|
|
429 |
|
|
|
187 |
|
Less gain (loss) from securities, net |
|
|
25 |
|
|
|
(140 |
) |
|
|
46 |
|
Core noninterest income |
|
|
20,258 |
|
|
|
22,690 |
|
|
|
43,065 |
|
Core revenue |
|
$ |
131,537 |
|
|
$ |
134,835 |
|
|
$ |
133,602 |
|
Efficiency ratio (GAAP)(a) |
|
|
62.7 |
% |
|
|
61.1 |
% |
|
|
63.6 |
% |
Core efficiency ratio (tax-equivalent basis) |
|
|
61.0 |
% |
|
|
60.7 |
% |
|
|
67.0 |
% |
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue |
||||||||||||
|
|
2022 |
|
2021 |
||||||||
Banking segment core efficiency ratio (tax equivalent) |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Core noninterest expense |
|
$ |
80,230 |
|
|
$ |
81,847 |
|
|
$ |
89,480 |
|
Less Mortgage segment noninterest expense |
|
|
13,304 |
|
|
|
15,961 |
|
|
|
30,798 |
|
Banking segment core noninterest expense |
|
$ |
66,926 |
|
|
$ |
65,886 |
|
|
$ |
58,682 |
|
Banking segment net interest income (tax equivalent basis) |
|
$ |
111,279 |
|
|
$ |
112,145 |
|
|
$ |
90,398 |
|
Core noninterest income |
|
|
20,258 |
|
|
|
22,690 |
|
|
|
43,065 |
|
Less Mortgage segment core noninterest income |
|
|
9,148 |
|
|
|
12,384 |
|
|
|
31,350 |
|
Banking segment core noninterest income |
|
|
11,110 |
|
|
|
10,306 |
|
|
|
11,715 |
|
Core revenue |
|
|
131,537 |
|
|
|
134,835 |
|
|
|
133,602 |
|
Less Mortgage segment core total revenue |
|
|
9,148 |
|
|
|
12,384 |
|
|
|
31,489 |
|
Banking segment core total revenue |
|
$ |
122,389 |
|
|
$ |
122,451 |
|
|
$ |
102,113 |
|
Banking segment core efficiency ratio (tax-equivalent basis) |
|
|
54.7 |
% |
|
|
53.8 |
% |
|
|
57.5 |
% |
|
|
|
|
|
|
|
||||||
Mortgage segment core efficiency ratio (tax equivalent) |
|
|
|
|
|
|
||||||
Mortgage segment noninterest expense |
|
$ |
13,304 |
|
|
$ |
15,961 |
|
|
$ |
30,798 |
|
Mortgage segment net interest income |
|
|
— |
|
|
|
— |
|
|
|
139 |
|
Mortgage segment noninterest income |
|
|
9,124 |
|
|
|
12,299 |
|
|
|
31,369 |
|
Less (loss) gain on sales or write-downs of other real estate owned |
|
|
(24 |
) |
|
|
(85 |
) |
|
|
19 |
|
Mortgage segment core noninterest income |
|
|
9,148 |
|
|
|
12,384 |
|
|
|
31,350 |
|
Mortgage segment core total revenue |
|
$ |
9,148 |
|
|
$ |
12,384 |
|
|
$ |
31,489 |
|
Mortgage segment core efficiency ratio (tax-equivalent basis) |
|
|
145.4 |
% |
|
|
128.9 |
% |
|
|
97.8 |
% |
|
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Adjusted Banking segment pre-tax pre-provision earnings |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Banking segment pre-tax net contribution |
|
$ |
52,373 |
|
|
$ |
44,424 |
|
|
$ |
62,131 |
|
Plus provisions for credit losses |
|
|
(456 |
) |
|
|
11,367 |
|
|
|
(10,769 |
) |
Banking segment pre-tax pre-provision earnings |
|
|
51,917 |
|
|
|
55,791 |
|
|
|
51,362 |
|
Less other non-operating items |
|
|
(2,562 |
) |
|
|
(387 |
) |
|
|
8,499 |
|
Adjusted Banking segment pre-tax pre-provision earnings |
|
$ |
54,479 |
|
|
$ |
56,178 |
|
|
$ |
42,863 |
|
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Tangible assets and equity |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Tangible assets |
|
|
|
|
|
|
||||||
Total assets |
|
$ |
12,847,756 |
|
|
$ |
12,258,082 |
|
|
$ |
12,597,686 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
12,368 |
|
|
|
13,407 |
|
|
|
16,953 |
|
Tangible assets |
|
$ |
12,592,827 |
|
|
$ |
12,002,114 |
|
|
$ |
12,338,172 |
|
Tangible common equity |
|
|
|
|
|
|
||||||
Total common shareholders' equity |
|
$ |
1,325,425 |
|
|
$ |
1,281,161 |
|
|
$ |
1,432,602 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
12,368 |
|
|
|
13,407 |
|
|
|
16,953 |
|
Tangible common equity |
|
$ |
1,070,496 |
|
|
$ |
1,025,193 |
|
|
$ |
1,173,088 |
|
Less accumulated other comprehensive (loss) income, net |
|
|
(169,433 |
) |
|
|
(187,440 |
) |
|
|
5,858 |
|
Adjusted tangible common equity |
|
|
1,239,929 |
|
|
|
1,212,633 |
|
|
|
1,167,230 |
|
Common shares outstanding |
|
|
46,737,912 |
|
|
|
46,926,377 |
|
|
|
47,549,241 |
|
Book value per common share |
|
$ |
28.36 |
|
|
$ |
27.30 |
|
|
$ |
30.13 |
|
Tangible book value per common share Tangible book value per common share |
|
$ |
22.90 |
|
|
$ |
21.85 |
|
|
$ |
24.67 |
|
Adjusted tangible book value per common share |
|
$ |
26.53 |
|
|
$ |
25.84 |
|
|
$ |
24.55 |
|
Total common shareholders' equity to total assets |
|
|
10.3 |
% |
|
|
10.5 |
% |
|
|
11.4 |
% |
Tangible common equity to tangible assets |
|
|
8.50 |
% |
|
|
8.54 |
% |
|
|
9.51 |
% |
|
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(In Thousands, Except Share Data and %) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Return on average tangible common equity |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Average common shareholders' equity |
|
$ |
1,294,758 |
|
|
$ |
1,336,143 |
|
|
$ |
1,411,987 |
|
Less average goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less average intangibles, net |
|
|
12,865 |
|
|
|
13,953 |
|
|
|
17,580 |
|
Average tangible common equity |
|
$ |
1,039,332 |
|
|
$ |
1,079,629 |
|
|
$ |
1,151,846 |
|
Net income |
|
$ |
38,143 |
|
|
$ |
31,831 |
|
|
$ |
48,827 |
|
Return on average common equity |
|
|
11.7 |
% |
|
|
9.45 |
% |
|
|
13.7 |
% |
Return on average tangible common equity |
|
|
14.6 |
% |
|
|
11.7 |
% |
|
|
16.8 |
% |
Adjusted net income |
|
$ |
40,045 |
|
|
$ |
32,117 |
|
|
$ |
42,551 |
|
Adjusted return on average tangible common equity |
|
|
15.3 |
% |
|
|
11.8 |
% |
|
|
14.7 |
% |
Adjusted pre-tax pre-provision earnings |
|
$ |
50,299 |
|
|
$ |
52,516 |
|
|
$ |
43,573 |
|
Adjusted pre-tax pre-provision return on average tangible common equity |
|
|
19.2 |
% |
|
|
19.3 |
% |
|
|
15.0 |
% |
|
|
|
|
|
|
|
||||||
|
|
2022 |
|
2021 |
||||||||
Adjusted return on average assets and equity |
|
Fourth Quarter |
|
Third Quarter |
|
Fourth Quarter |
||||||
Net income |
|
$ |
38,143 |
|
|
$ |
31,831 |
|
|
$ |
48,827 |
|
Average assets |
|
|
12,446,027 |
|
|
|
12,038,115 |
|
|
|
12,085,817 |
|
Average common equity |
|
|
1,294,758 |
|
|
|
1,336,143 |
|
|
|
1,411,987 |
|
Return on average assets |
|
|
1.22 |
% |
|
|
1.05 |
% |
|
|
1.60 |
% |
Return on average common equity |
|
|
11.7 |
% |
|
|
9.45 |
% |
|
|
13.7 |
% |
Adjusted net income |
|
$ |
40,045 |
|
|
$ |
32,117 |
|
|
$ |
42,551 |
|
Adjusted return on average assets |
|
|
1.28 |
% |
|
|
1.06 |
% |
|
|
1.40 |
% |
Adjusted return on average common equity |
|
|
12.3 |
% |
|
|
9.54 |
% |
|
|
12.0 |
% |
Adjusted pre-tax pre-provision earnings |
|
$ |
50,299 |
|
|
$ |
52,516 |
|
|
$ |
43,573 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
1.60 |
% |
|
|
1.73 |
% |
|
|
1.43 |
% |
Adjusted pre-tax pre-provision return on average common equity |
|
|
15.4 |
% |
|
|
15.6 |
% |
|
|
12.2 |
% |
FBK - ER
View source version on businesswire.com: https://www.businesswire.com/news/home/20230117005357/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 Q4 2022 earnings results?
How much did FBK's deposits grow in Q4 2022?
What was the change in FBK's net interest margin for Q4 2022?
How did FBK's total assets perform in Q4 2022?
What was the adjusted EPS for FBK in Q4 2022?
