FB Financial Corporation Reports Second Quarter 2023 Results
Reports Q2 Diluted EPS of
The Company’s deposits were
President and Chief Executive Officer, Christopher T. Holmes stated, "We boosted our balance sheet strength during the quarter so the Company is prepared regardless of whether the future brings challenges or opportunities. We continued reducing our exposure to public funds, enhancing our already diversified and granular deposit portfolio. We also reduced our exposure to commercial real estate, further strengthening our well-balanced loan portfolio. Additionally, our strong capital base and ample reserve for credit losses give us optionality in allocating capital and increasing returns as we move into the second half of 2023 and look forward to 2024."
|
|
2023 |
|
2022 |
|
Annualized |
|
|
||||||||||
(dollars in thousands, except share data) |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
|
2Q23 / 1Q23
|
|
2Q23 / 2Q22
|
||||||||
Balance Sheet Highlights |
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, at fair value |
|
$ |
1,422,391 |
|
|
$ |
1,474,064 |
|
|
$ |
1,621,344 |
|
|
(14.1 |
)% |
|
(12.3 |
)% |
Mortgage loans held for sale(a) |
|
|
89,864 |
|
|
|
73,005 |
|
|
|
222,400 |
|
|
92.6 |
% |
|
(59.6 |
)% |
Commercial loans held for sale, at fair value |
|
|
9,267 |
|
|
|
9,510 |
|
|
|
37,815 |
|
|
(10.2 |
)% |
|
(75.5 |
)% |
Loans held for investment |
|
|
9,326,024 |
|
|
|
9,365,996 |
|
|
|
8,624,337 |
|
|
(1.71 |
)% |
|
8.14 |
% |
Allowance for credit losses |
|
|
140,664 |
|
|
|
138,809 |
|
|
|
126,272 |
|
|
5.36 |
% |
|
11.4 |
% |
Allowance for credit losses on unfunded commitments |
|
|
14,810 |
|
|
|
18,463 |
|
|
|
20,399 |
|
|
(79.4 |
)% |
|
(27.4 |
)% |
Total assets |
|
|
12,887,395 |
|
|
|
13,101,147 |
|
|
|
12,193,862 |
|
|
(6.54 |
)% |
|
5.69 |
% |
Interest-bearing deposits (non-brokered) |
|
|
8,233,082 |
|
|
|
8,693,515 |
|
|
|
7,646,125 |
|
|
(21.2 |
)% |
|
7.68 |
% |
Brokered deposits |
|
|
238,885 |
|
|
|
251 |
|
|
|
1,657 |
|
|
381,338.0 |
% |
|
14,316.7 |
% |
Noninterest-bearing deposits |
|
|
2,400,288 |
|
|
|
2,489,149 |
|
|
|
2,895,520 |
|
|
(14.3 |
)% |
|
(17.1 |
)% |
Total deposits |
|
|
10,872,255 |
|
|
|
11,182,915 |
|
|
|
10,543,302 |
|
|
(11.1 |
)% |
|
3.12 |
% |
Estimated insured or collateralized deposits |
|
|
7,858,761 |
|
|
|
7,926,537 |
|
|
|
7,320,537 |
|
|
(3.43 |
)% |
|
7.35 |
% |
Borrowings |
|
|
390,354 |
|
|
|
312,131 |
|
|
|
160,400 |
|
|
100.5 |
% |
|
143.4 |
% |
Total common shareholders' equity |
|
|
1,386,951 |
|
|
|
1,369,696 |
|
|
|
1,319,852 |
|
|
5.05 |
% |
|
5.08 |
% |
Book value per common share |
|
$ |
29.64 |
|
|
$ |
29.29 |
|
|
$ |
28.15 |
|
|
4.79 |
% |
|
5.29 |
% |
Adjusted tangible book value per common share* |
|
$ |
27.72 |
|
|
$ |
27.06 |
|
|
$ |
25.24 |
|
|
9.84 |
% |
|
9.83 |
% |
Total common shareholders' equity to total assets |
|
|
10.8 |
% |
|
|
10.5 |
% |
|
|
10.8 |
% |
|
|
|
|
||
Tangible common equity to tangible assets* |
|
|
8.98 |
% |
|
|
8.68 |
% |
|
|
8.90 |
% |
|
|
|
|
||
Estimated uninsured and uncollateralized deposits as a percentage of total deposits |
|
|
27.7 |
% |
|
|
29.1 |
% |
|
|
30.6 |
% |
|
|
|
|
||
*Non-GAAP financial measure; See "Use of non-GAAP Financial Measures" and non-GAAP reconciliations herein. |
||||||||||||||||||
(a) Includes optional right to repurchase government guaranteed GNMA mortgage loans previously sold that have become past due greater than 90 days amounting to |
||||||||||||||||||
|
|
2023 |
|
2022 |
||||||||
(dollars in thousands, except share data) |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Statement of Income Highlights |
|
|
|
|
|
|
||||||
Net interest income |
|
$ |
101,543 |
|
|
$ |
103,660 |
|
|
$ |
102,171 |
|
NIM |
|
|
3.40 |
% |
|
|
3.51 |
% |
|
|
3.52 |
% |
Provisions for credit losses |
|
$ |
(1,078 |
) |
|
$ |
491 |
|
|
$ |
12,318 |
|
Net charge-off ratio |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.09 |
% |
Noninterest income |
|
$ |
23,813 |
|
|
$ |
23,349 |
|
|
$ |
33,214 |
|
Mortgage banking income |
|
$ |
12,232 |
|
|
$ |
12,086 |
|
|
$ |
22,559 |
|
Total revenue |
|
$ |
125,356 |
|
|
$ |
127,009 |
|
|
$ |
135,385 |
|
Noninterest expense |
|
$ |
81,292 |
|
|
$ |
80,440 |
|
|
$ |
96,997 |
|
Efficiency ratio |
|
|
64.8 |
% |
|
|
63.3 |
% |
|
|
71.6 |
% |
Core efficiency ratio* |
|
|
63.5 |
% |
|
|
63.3 |
% |
|
|
61.1 |
% |
Pre-tax, pre-provision earnings |
|
$ |
44,064 |
|
|
$ |
46,569 |
|
|
$ |
38,388 |
|
Adjusted pre-tax, pre-provision earnings* |
|
$ |
44,965 |
|
|
$ |
45,659 |
|
|
$ |
52,856 |
|
Net income applicable to FB Financial Corporation |
|
$ |
35,299 |
|
|
$ |
36,381 |
|
|
$ |
19,345 |
|
Diluted earnings per common share |
|
$ |
0.75 |
|
|
$ |
0.78 |
|
|
$ |
0.41 |
|
Effective tax rate |
|
|
21.8 |
% |
|
|
21.0 |
% |
|
|
25.8 |
% |
Adjusted net income* |
|
$ |
35,973 |
|
|
$ |
35,708 |
|
|
$ |
30,051 |
|
Adjusted diluted earnings per common share* |
|
$ |
0.77 |
|
|
$ |
0.76 |
|
|
$ |
0.64 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
46,814,854 |
|
|
|
46,765,154 |
|
|
|
47,211,650 |
|
Returns on average: |
|
|
|
|
|
|
||||||
Return on average total assets |
|
|
1.10 |
% |
|
|
1.15 |
% |
|
|
0.62 |
% |
Return on average shareholders' equity |
|
|
10.3 |
% |
|
|
11.0 |
% |
|
|
5.74 |
% |
Return on average tangible common equity* |
|
|
12.6 |
% |
|
|
13.6 |
% |
|
|
7.09 |
% |
*Non-GAAP financial measure; See "Use of non-GAAP Financial Measures" and non-GAAP reconciliations herein. |
||||||||||||
Balance Sheet and Net Interest Margin
The Company reported loans HFI of
Total deposits decreased by
The Company’s net interest income on a tax equivalent basis decreased to
Holmes continued, "We continue to manage down credit exposure in our construction and commercial real estate portfolios while also continuing to meet the needs of our relationship customers in these segments. NIBs were flat in the second half of the quarter, as we saw less rebalancing of deposits seeking higher interest rates. As expected, we saw a decline in public funds of
Noninterest Income
Noninterest income was
Mortgage banking income remained relatively stable with the previous quarter, as the Company recognized income of
Chief Financial Officer, Michael Mettee noted, “Noninterest income was flat during the quarter with higher interest rates continuing to suppress mortgage origination volume. The Mortgage division continues to adjust the business as necessary and recorded a small operational profit in the months of May and June of the second quarter."
Expense Management
Noninterest expense was
Mettee noted, “Expense management is a focus of the Company as we face continued revenue headwinds from the net interest margin and mortgage environments. Our core expense run rate was less in the second quarter than the first, and we anticipate additional reductions in the second half of 2023.”
Credit Quality
The Company had a provision expense of
The Company experienced net charge-offs of
The Company's nonperforming loans HFI as a percentage of total loans HFI improved to
Holmes commented, “The credit metrics continue to be favorable, with our annualized net charge-offs remaining relatively flat quarter over quarter and down year over year. Despite the benign current credit environment, the economic outlook remains uncertain, which led to an increase in our allowance for credit losses to loans held for investment during the quarter. The release in provision related to unfunded commitments as a result of reducing our off-balance sheet construction exposure over the last year as we actively improve our credit risk profile."
Capital Strength
Holmes continued, “We continued to build our capital base with solid earnings and a lower balance sheet risk profile. The capital build came even with the headwind of an increase in the unrealized loss from our investment portfolio, which increased from the previous quarter due to the rising interest rate environment. Our ability to maintain a capital buffer and grow tangible common equity provides multiple deployment options in the future.”
Summary
Holmes finalized, "The second quarter showed the results of many of the liquidity, capital and credit actions the Company has focused on during the past year. We have been working to de-risk the balance sheet while building capital and increasing our optionality for improving returns to shareholders. Through these efforts the Company will be well positioned to take advantage of the inevitable future opportunities."
WEBCAST AND CONFERENCE CALL INFORMATION
FB Financial Corporation will host a conference call to discuss the Company's financial results on July 18, 2023, at 8:00 a.m. (Central Time). To listen to the call, participants should dial 1-877-883-0383 (confirmation code 4892051) approximately 10 minutes prior to the call. A telephonic replay will be available approximately two hours after the call through July 25, 2023, by dialing 1-877-344-7529 and entering confirmation code 8986628.
A live online broadcast of the Company’s quarterly conference call will be available online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=IrvtUpsN. 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.
______________________________
*Non-GAAP financial measure; See "Use of non-GAAP Financial Measures" and Non-GAAP reconciliations herein.1
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a financial holding company headquartered in
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 |
||||||||||||
(Unaudited) |
||||||||||||
(dollars in thousands, except share data) |
||||||||||||
|
|
2023 |
|
2022 |
||||||||
|
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Selected Statement of Income Data |
|
|
|
|
|
|
||||||
Total interest income |
|
$ |
170,183 |
|
|
$ |
159,480 |
|
|
$ |
110,214 |
|
Total interest expense |
|
|
68,640 |
|
|
|
55,820 |
|
|
|
8,043 |
|
Net interest income |
|
|
101,543 |
|
|
|
103,660 |
|
|
|
102,171 |
|
Total noninterest income |
|
|
23,813 |
|
|
|
23,349 |
|
|
|
33,214 |
|
Total noninterest expense |
|
|
81,292 |
|
|
|
80,440 |
|
|
|
96,997 |
|
Earnings before income taxes and provisions for credit losses |
|
$ |
44,064 |
|
|
$ |
46,569 |
|
|
$ |
38,388 |
|
Provisions for credit losses |
|
$ |
(1,078 |
) |
|
$ |
491 |
|
|
$ |
12,318 |
|
Income tax expense |
|
|
9,835 |
|
|
|
9,697 |
|
|
|
6,717 |
|
Net income applicable to FB Financial Corporation |
|
|
35,299 |
|
|
|
36,381 |
|
|
|
19,345 |
|
Net interest income (tax-equivalent basis) |
|
|
102,383 |
|
|
|
104,493 |
|
|
|
102,926 |
|
Adjusted net income* |
|
|
35,973 |
|
|
|
35,708 |
|
|
|
30,051 |
|
Adjusted pre-tax, pre-provision earnings* |
|
|
44,965 |
|
|
|
45,659 |
|
|
|
52,856 |
|
Per Common Share |
|
|
|
|
|
|
||||||
Diluted net income |
|
$ |
0.75 |
|
|
$ |
0.78 |
|
|
$ |
0.41 |
|
Adjusted diluted net income* |
|
|
0.77 |
|
|
|
0.76 |
|
|
|
0.64 |
|
Book value |
|
|
29.64 |
|
|
|
29.29 |
|
|
|
28.15 |
|
Adjusted tangible book value* |
|
|
27.72 |
|
|
|
27.06 |
|
|
|
25.24 |
|
Weighted average number of shares outstanding - fully diluted |
|
|
46,814,854 |
|
|
|
46,765,154 |
|
|
|
47,211,650 |
|
Selected Balance Sheet Data |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,160,354 |
|
|
$ |
1,319,951 |
|
|
$ |
872,861 |
|
Loans held for investment (HFI) |
|
|
9,326,024 |
|
|
|
9,365,996 |
|
|
|
8,624,337 |
|
Allowance for credit losses |
|
|
(140,664 |
) |
|
|
(138,809 |
) |
|
|
(126,272 |
) |
Allowance for credit losses on unfunded commitments |
|
|
(14,810 |
) |
|
|
(18,463 |
) |
|
|
(20,399 |
) |
Mortgage loans held for sale(a) |
|
|
89,864 |
|
|
|
73,005 |
|
|
|
222,400 |
|
Commercial loans held for sale, at fair value |
|
|
9,267 |
|
|
|
9,510 |
|
|
|
37,815 |
|
Investment securities, at fair value |
|
|
1,422,391 |
|
|
|
1,474,064 |
|
|
|
1,621,344 |
|
Total assets |
|
|
12,887,395 |
|
|
|
13,101,147 |
|
|
|
12,193,862 |
|
Interest-bearing deposits (non-brokered) |
|
|
8,233,082 |
|
|
|
8,693,515 |
|
|
|
7,646,125 |
|
Brokered deposits |
|
|
238,885 |
|
|
|
251 |
|
|
|
1,657 |
|
Noninterest-bearing deposits |
|
|
2,400,288 |
|
|
|
2,489,149 |
|
|
|
2,895,520 |
|
Total deposits |
|
|
10,872,255 |
|
|
|
11,182,915 |
|
|
|
10,543,302 |
|
Estimated insured or collateralized deposits |
|
|
7,858,761 |
|
|
|
7,926,537 |
|
|
|
7,320,537 |
|
Borrowings |
|
|
390,354 |
|
|
|
312,131 |
|
|
|
160,400 |
|
Total common shareholders' equity |
|
|
1,386,951 |
|
|
|
1,369,696 |
|
|
|
1,319,852 |
|
Selected Ratios |
|
|
|
|
|
|
||||||
Return on average: |
|
|
|
|
|
|
||||||
Assets |
|
|
1.10 |
% |
|
|
1.15 |
% |
|
|
0.62 |
% |
Shareholders' equity |
|
|
10.3 |
% |
|
|
11.0 |
% |
|
|
5.74 |
% |
Tangible common equity* |
|
|
12.6 |
% |
|
|
13.6 |
% |
|
|
7.09 |
% |
Average shareholders' equity to average assets |
|
|
10.7 |
% |
|
|
10.4 |
% |
|
|
10.9 |
% |
Net interest margin (tax-equivalent basis) |
|
|
3.40 |
% |
|
|
3.51 |
% |
|
|
3.52 |
% |
Efficiency ratio (GAAP) |
|
|
64.8 |
% |
|
|
63.3 |
% |
|
|
71.6 |
% |
Core efficiency ratio (tax-equivalent basis)* |
|
|
63.5 |
% |
|
|
63.3 |
% |
|
|
61.1 |
% |
Loans HFI to deposit ratio |
|
|
85.8 |
% |
|
|
83.8 |
% |
|
|
81.8 |
% |
Noninterest-bearing deposits to total deposits |
|
|
22.1 |
% |
|
|
22.3 |
% |
|
|
27.5 |
% |
Yield on interest-earning assets |
|
|
5.67 |
% |
|
|
5.38 |
% |
|
|
3.80 |
% |
Cost of interest-bearing liabilities |
|
|
3.14 |
% |
|
|
2.61 |
% |
|
|
0.40 |
% |
Cost of total deposits |
|
|
2.38 |
% |
|
|
1.94 |
% |
|
|
0.25 |
% |
Estimated uninsured and uncollateralized deposits as a percentage of total deposits |
|
|
27.7 |
% |
|
|
29.1 |
% |
|
|
30.6 |
% |
Credit Quality Ratios |
|
|
|
|
|
|
||||||
Allowance for credit losses as a percentage of loans HFI |
|
|
1.51 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
Net charge-offs as a percentage of average loans HFI |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.09 |
% |
Nonperforming loans HFI as a percentage of total loans HFI |
|
|
0.47 |
% |
|
|
0.49 |
% |
|
|
0.51 |
% |
Nonperforming assets as a percentage of total assets(a) |
|
|
0.59 |
% |
|
|
0.61 |
% |
|
|
0.46 |
% |
Preliminary Capital Ratios (consolidated) |
|
|
|
|
|
|
||||||
Total common shareholders' equity to assets |
|
|
10.8 |
% |
|
|
10.5 |
% |
|
|
10.8 |
% |
Tangible common equity to tangible assets* |
|
|
8.98 |
% |
|
|
8.68 |
% |
|
|
8.90 |
% |
Tier 1 leverage |
|
|
10.7 |
% |
|
|
10.4 |
% |
|
|
10.2 |
% |
Tier 1 risk-based capital |
|
|
11.9 |
% |
|
|
11.6 |
% |
|
|
11.8 |
% |
Total risk-based capital |
|
|
13.9 |
% |
|
|
13.6 |
% |
|
|
13.6 |
% |
Common equity Tier 1 (CET1) |
|
|
11.7 |
% |
|
|
11.3 |
% |
|
|
11.5 |
% |
(a)Includes optional right to repurchase government guaranteed GNMA mortgage loans previously sold that have become past due greater than 90 days amounting to |
||||||||||||
*Non-GAAP financial measure; See "Use of non-GAAP Financial Measures" and Non-GAAP reconciliations herein. |
||||||||||||
Non-GAAP Reconciliations |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(dollars in thousands, except share data) |
||||||||||||
|
|
|
|
|||||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted net income |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Income before income taxes |
|
$ |
45,142 |
|
|
$ |
46,078 |
|
|
$ |
26,070 |
|
Plus mortgage restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
12,458 |
|
Less other non-operating items (1) |
|
|
(901 |
) |
|
|
910 |
|
|
|
(2,010 |
) |
Adjusted pre-tax net income |
|
|
46,043 |
|
|
|
45,168 |
|
|
|
40,538 |
|
Adjusted income tax expense |
|
|
10,070 |
|
|
|
9,460 |
|
|
|
10,487 |
|
Adjusted net income |
|
$ |
35,973 |
|
|
$ |
35,708 |
|
|
$ |
30,051 |
|
Weighted average common shares outstanding - fully diluted |
|
|
46,814,854 |
|
|
|
46,765,154 |
|
|
|
47,211,650 |
|
Adjusted diluted earnings per common share |
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
0.75 |
|
|
$ |
0.78 |
|
|
$ |
0.41 |
|
Plus mortgage restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
0.27 |
|
Less other non-operating items |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.04 |
) |
Less tax effect |
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
Adjusted diluted earnings per common share |
|
$ |
0.77 |
|
|
$ |
0.76 |
|
|
$ |
0.64 |
|
(1) The following table presents amounts included in "other non-operating items" for each of the periods presented. |
||||||||||||
|
|
2023 |
|
2022 |
||||||||
Other non-operating items |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Gain on sales or write-downs of other real estate owned and other assets |
|
$ |
533 |
|
|
$ |
— |
|
|
$ |
— |
|
(Loss) gain from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
(8 |
) |
|
|
910 |
|
|
|
(2,010 |
) |
Severance expense |
|
|
(1,426 |
) |
|
|
— |
|
|
|
— |
|
Total other non-operating items |
|
$ |
(901 |
) |
|
$ |
910 |
|
|
$ |
(2,010 |
) |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Adjusted net income |
|
1H 2023 |
|
1H 2022 |
|
2022 |
||||||
Income before income taxes |
|
$ |
91,220 |
|
|
$ |
70,619 |
|
|
$ |
159,574 |
|
Plus mortgage restructuring expense |
|
|
— |
|
|
|
12,458 |
|
|
|
12,458 |
|
Less other non-operating items(1) |
|
|
9 |
|
|
|
(2,184 |
) |
|
|
(5,133 |
) |
Adjusted pre-tax net income |
|
|
91,211 |
|
|
|
85,261 |
|
— |
|
177,165 |
|
Adjusted income tax expense(2) |
|
|
19,530 |
|
|
|
19,846 |
|
|
|
39,587 |
|
Adjusted net income |
|
$ |
71,681 |
|
|
$ |
65,415 |
|
|
$ |
137,578 |
|
Weighted average common shares outstanding - fully diluted |
|
|
46,777,603 |
|
|
|
47,466,291 |
|
|
|
47,239,791 |
|
Adjusted diluted earnings per share |
|
|
|
|
|
|
||||||
Diluted earnings per common share |
|
$ |
1.53 |
|
|
$ |
1.15 |
|
|
$ |
2.64 |
|
Plus mortgage restructuring and offering expenses |
|
|
— |
|
|
|
0.26 |
|
|
|
0.26 |
|
Less other non-operating items |
|
|
— |
|
|
|
(0.05 |
) |
|
|
(0.11 |
) |
Less tax effect |
|
|
— |
|
|
|
0.08 |
|
|
|
0.10 |
|
Adjusted diluted earnings per common share |
|
$ |
1.53 |
|
|
$ |
1.38 |
|
|
$ |
2.91 |
|
(1) The following table presents amounts included in "other non-operating items" for each of the periods presented: |
||||||||||||
Other non-operating items: |
|
1H 2023 |
|
1H 2022 |
|
2022 |
||||||
Gain on sales or write-downs of other real estate owned and other assets |
|
$ |
533 |
|
|
$ |
— |
|
|
$ |
— |
|
Gain (loss) from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
902 |
|
|
|
(2,184 |
) |
|
|
(5,133 |
) |
Severance expense |
|
|
(1,426 |
) |
|
|
— |
|
|
|
— |
|
Total other non-operating items |
|
$ |
9 |
|
|
$ |
(2,184 |
) |
|
$ |
(5,133 |
) |
(2) 2021 includes a |
||||||||||||
|
||||||||||||
|
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted pre-tax pre-provision earnings |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Income before income taxes |
|
$ |
45,142 |
|
|
$ |
46,078 |
|
|
$ |
26,070 |
|
Plus provisions for credit losses |
|
|
(1,078 |
) |
|
|
491 |
|
|
|
12,318 |
|
Pre-tax pre-provision earnings |
|
|
44,064 |
|
|
|
46,569 |
|
|
|
38,388 |
|
Plus mortgage restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
12,458 |
|
Less other non-operating items |
|
|
(901 |
) |
|
|
910 |
|
|
|
(2,010 |
) |
Adjusted pre-tax pre-provision earnings |
|
$ |
44,965 |
|
|
$ |
45,659 |
|
|
$ |
52,856 |
|
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted tangible net income |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Income before income taxes |
|
$ |
45,142 |
|
|
$ |
46,078 |
|
|
$ |
26,070 |
|
Plus mortgage restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
12,458 |
|
Less other non-operating items |
|
|
(901 |
) |
|
|
910 |
|
|
|
(2,010 |
) |
Plus amortization of core deposit and other intangibles |
|
|
940 |
|
|
|
990 |
|
|
|
1,194 |
|
Less income tax expense, adjusted for items above |
|
|
10,315 |
|
|
|
9,718 |
|
|
|
10,799 |
|
Adjusted tangible net income |
|
$ |
36,668 |
|
|
$ |
36,440 |
|
|
$ |
30,933 |
|
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Core efficiency ratio (tax-equivalent basis) |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Total noninterest expense |
|
$ |
81,292 |
|
|
$ |
80,440 |
|
|
$ |
96,997 |
|
Less mortgage restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
12,458 |
|
Less severance expense |
|
|
1,426 |
|
|
|
— |
|
|
|
— |
|
Core noninterest expense |
|
$ |
79,866 |
|
|
$ |
80,440 |
|
|
$ |
84,539 |
|
Net interest income (tax-equivalent basis) |
|
$ |
102,383 |
|
|
$ |
104,493 |
|
|
$ |
102,926 |
|
Total noninterest income |
|
|
23,813 |
|
|
|
23,349 |
|
|
|
33,214 |
|
Less (loss) gain from changes in fair value of commercial loans held for sale acquired in previous business combination |
|
|
(8 |
) |
|
|
910 |
|
|
|
(2,010 |
) |
Less gain (loss) from sales or write-downs of other real estate owned and other assets |
|
|
533 |
|
|
|
(183 |
) |
|
|
(8 |
) |
Less (loss) gain from securities, net |
|
|
(28 |
) |
|
|
69 |
|
|
|
(109 |
) |
Core noninterest income |
|
|
23,316 |
|
|
|
22,553 |
|
|
|
35,341 |
|
Core revenue |
|
$ |
125,699 |
|
|
$ |
127,046 |
|
|
$ |
138,267 |
|
Efficiency ratio (GAAP)(a) |
|
|
64.8 |
% |
|
|
63.3 |
% |
|
|
71.6 |
% |
Core efficiency ratio (tax-equivalent basis) |
|
|
63.5 |
% |
|
|
63.3 |
% |
|
|
61.1 |
% |
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue. |
||||||||||||
Non-GAAP Reconciliations (continued) |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(dollars in thousands except per share data) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Tangible assets and equity |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Tangible assets |
|
|
|
|
|
|
||||||
Total assets |
|
$ |
12,887,395 |
|
|
$ |
13,101,147 |
|
|
$ |
12,193,862 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
10,438 |
|
|
|
11,378 |
|
|
|
14,515 |
|
Tangible assets |
|
$ |
12,634,396 |
|
|
$ |
12,847,208 |
|
|
$ |
11,936,786 |
|
Tangible common equity |
|
|
|
|
|
|
||||||
Total common shareholders' equity |
|
$ |
1,386,951 |
|
|
$ |
1,369,696 |
|
|
$ |
1,319,852 |
|
Less goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less intangibles, net |
|
|
10,438 |
|
|
|
11,378 |
|
|
|
14,515 |
|
Tangible common equity |
|
$ |
1,133,952 |
|
|
$ |
1,115,757 |
|
|
$ |
1,062,776 |
|
Less accumulated other comprehensive loss, net |
|
|
(163,407 |
) |
|
|
(149,566 |
) |
|
|
(120,495 |
) |
Adjusted tangible common equity |
|
|
1,297,359 |
|
|
|
1,265,323 |
|
|
|
1,183,271 |
|
Common shares outstanding |
|
|
46,798,751 |
|
|
|
46,762,626 |
|
|
|
46,881,896 |
|
Book value per common share |
|
$ |
29.64 |
|
|
$ |
29.29 |
|
|
$ |
28.15 |
|
Tangible book value per common share |
|
$ |
24.23 |
|
|
$ |
23.86 |
|
|
$ |
22.67 |
|
Adjusted tangible book value per common share |
|
$ |
27.72 |
|
|
$ |
27.06 |
|
|
$ |
25.24 |
|
Total common shareholders' equity to total assets |
|
|
10.8 |
% |
|
|
10.5 |
% |
|
|
10.8 |
% |
Tangible common equity to tangible assets |
|
|
8.98 |
% |
|
|
8.68 |
% |
|
|
8.90 |
% |
On-balance sheet liquidity: |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,160,354 |
|
|
$ |
1,319,951 |
|
|
$ |
872,861 |
|
Unpledged securities |
|
|
281,098 |
|
|
|
286,169 |
|
|
|
305,781 |
|
Equity securities, at fair value |
|
|
3,031 |
|
|
|
3,059 |
|
|
|
3,103 |
|
Total on-balance sheet liquidity |
|
$ |
1,444,483 |
|
|
$ |
1,609,179 |
|
|
$ |
1,181,745 |
|
On-balance sheet liquidity as a percentage of total assets |
|
|
11.2 |
% |
|
|
12.3 |
% |
|
|
9.69 |
% |
On-balance sheet liquidity as a percentage of total tangible assets |
|
|
11.4 |
% |
|
|
12.5 |
% |
|
|
9.90 |
% |
|
||||||||||||
Non-GAAP Reconciliations (continued) |
||||||||||||
For the Periods Ended |
||||||||||||
(Unaudited) |
||||||||||||
(dollars in thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||||||
Return on average tangible common equity |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Average common shareholders' equity |
|
$ |
1,376,818 |
|
|
$ |
1,343,227 |
|
|
$ |
1,352,701 |
|
Less average goodwill |
|
|
242,561 |
|
|
|
242,561 |
|
|
|
242,561 |
|
Less average intangibles, net |
|
|
10,913 |
|
|
|
11,862 |
|
|
|
15,144 |
|
Average tangible common equity |
|
$ |
1,123,344 |
|
|
$ |
1,088,804 |
|
|
$ |
1,094,996 |
|
Net income |
|
$ |
35,299 |
|
|
$ |
36,381 |
|
|
$ |
19,345 |
|
Return on average common equity |
|
|
10.3 |
% |
|
|
11.0 |
% |
|
|
5.74 |
% |
Return on average tangible common equity |
|
|
12.6 |
% |
|
|
13.6 |
% |
|
|
7.09 |
% |
Adjusted tangible net income(1) |
|
$ |
36,668 |
|
|
$ |
36,440 |
|
|
$ |
30,933 |
|
Adjusted return on average tangible common equity |
|
|
13.1 |
% |
|
|
13.6 |
% |
|
|
11.3 |
% |
(1) The Company's calculation of adjusted return on average tangible common equity was modified in the second quarter of 2023 to exclude amortization of core deposits and other intangibles from adjusted net income. Prior periods shown have been revised to conform with this methodology. |
||||||||||||
|
|
2023 |
|
2022 |
||||||||
Adjusted return on average assets and equity |
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
||||||
Net income |
|
$ |
35,299 |
|
|
$ |
36,381 |
|
|
$ |
19,345 |
|
Average assets |
|
|
12,826,449 |
|
|
|
12,861,614 |
|
|
|
12,427,479 |
|
Average common equity |
|
|
1,376,818 |
|
|
|
1,343,227 |
|
|
|
1,352,701 |
|
Return on average assets |
|
|
1.10 |
% |
|
|
1.15 |
% |
|
|
0.62 |
% |
Return on average common equity |
|
|
10.3 |
% |
|
|
11.0 |
% |
|
|
5.74 |
% |
Adjusted net income |
|
$ |
35,973 |
|
|
$ |
35,708 |
|
|
$ |
30,051 |
|
Adjusted return on average assets |
|
|
1.12 |
% |
|
|
1.13 |
% |
|
|
0.97 |
% |
Adjusted return on average common equity |
|
|
10.5 |
% |
|
|
10.8 |
% |
|
|
8.91 |
% |
Adjusted pre-tax pre-provision earnings |
|
$ |
44,965 |
|
|
$ |
45,659 |
|
|
$ |
52,856 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
1.41 |
% |
|
|
1.44 |
% |
|
|
1.71 |
% |
(FBK - ER)
View source version on businesswire.com: https://www.businesswire.com/news/home/20230717433985/en/
MEDIA CONTACT:
Jeanie M. Rittenberry
615-313-8328
jrittenberry@firstbankonline.com
www.firstbankonline.com
FINANCIAL CONTACT:
Michael Mettee
615-564-1212
mmettee@firstbankonline.com
investorrelations@firstbankonline.com
Source: FB Financial Corporation
