Reports Q2 Diluted EPS of $0.75, Adjusted
Diluted EPS* of $0.77
FB Financial Corporation (the “Company”) (NYSE: FBK), parent
company of FirstBank, reported net income of $35.3 million, or
$0.75 per diluted common share, for the second quarter of 2023,
compared to $0.78 in the previous quarter and $0.41 in the second
quarter of last year. Adjusted net income* was $36.0 million, or
$0.77 per diluted common share, compared to $0.76 in the previous
quarter and $0.64 in the second quarter of last year.
The Company’s deposits were $10.87 billion at June 30, 2023
compared to $11.18 billion at March 31, 2023 and $10.54 billion at
June 30, 2022. The quarter-over-quarter decrease related to a
reduction in public funds of $462.6 million. Loans held for
investment ("HFI") were $9.33 billion at the end of the quarter
compared to $9.37 billion at the end of the previous quarter and
$8.62 billion at the end of the same quarter last year. The decline
relative to the previous quarter was primarily driven by
construction and non-owner occupied commercial real estate loan
balances declining by $118.1 million. The Company grew book value
to $29.64 and grew adjusted tangible book value* to $27.72, or
9.84% annualized from the first quarter. Net interest margin
("NIM") was 3.40% for the second quarter of 2023 compared to 3.51%
and 3.52% in the prior quarter and the second quarter of 2022,
respectively.
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 %
Change
2Q23 / 2Q22 %
Change
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 $20,225 and
$20,528 as of June 30, 2023 and March 31, 2023, respectively.
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 $9.33 billion at the end of
the second quarter of 2023, a decrease of $40.0 million from the
end of the prior quarter. The contraction was led by declines in
construction and non-owner occupied commercial real estate loans of
$118.1 million, or 13.0% annualized, which was partially offset by
growth in commercial and multifamily loans. The contractual yield
on loans increased to 6.16% for the second quarter of 2023 from
5.90% for the previous quarter.
Total deposits decreased by $310.7 million in the second quarter
to $10.87 billion. The decrease in total deposits was due to a
decrease in public funds of $462.6 million, much of which was
seasonal. The Company's total cost of deposits increased to 2.38%
during the quarter, and the cost of interest-bearing deposits
increased to 3.06%. Noninterest-bearing deposits ("NIBs") decreased
to $2.40 billion at the end of the quarter compared to $2.49
billion at the end of first quarter of 2023.
The Company’s net interest income on a tax equivalent basis
decreased to $102.4 million in the second quarter of 2023 from
$104.5 million in the prior quarter. The decrease was primarily
related to higher cost of deposits which resulted in an increase in
interest expense on deposits of $12.4 million over the prior
quarter. Lower loan balances also impacted net interest income and
ultimately the NIM, which decreased to 3.40% for the second quarter
of 2023 from 3.51% from the previous quarter.
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 $462.6 million
compared to the prior quarter-end, which was primarily seasonal. We
also consciously reduced our public funds exposure during the
quarter as we position the liability side of the balance sheet for
future growth and optimal earnings."
Noninterest Income
Noninterest income was $23.8 million for the second quarter of
2023, compared to $23.3 million and $33.2 million for the first
quarter of 2023 and second quarter of 2022, respectively.
Mortgage banking income remained relatively stable with the
previous quarter, as the Company recognized income of $12.2 million
in the second quarter and $12.1 million in the first quarter of
2023. Interest rate lock commitment volume during the second
quarter of 2023 totaled $403.0 million compared to $375.0 million
in the previous quarter.
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 $81.3 million for the second quarter of
2023, compared to $80.4 million for the prior quarter and $97.0
million for the second quarter of 2022. Core noninterest expense*
was $79.9 million, which excludes $1.4 million of severance expense
for the second quarter of 2023, compared to $80.4 million for the
prior quarter and $84.5 million for the second quarter of 2022,
which excludes $12.5 million of mortgage restructuring expense.
Core banking segment noninterest expense* was $66.7 million for the
quarter, compared to $68.4 million in the prior quarter, or a 2.48%
decline. During the second quarter of 2023, the Company's core
efficiency ratio* was 63.5%, compared to 63.3% in the previous
quarter and 61.1% in the second quarter of 2022.
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 $2.6 million related to
loans HFI; however, it also recorded a provision reversal of $3.7
million on unfunded loan commitments, resulting in a net provision
release of $1.1 million for the quarter. Notably, the Company
reduced unfunded loan commitments in the construction and land
development category by $197.2 million from the previous quarter's
unfunded commitments of $1.34 billion. At the end of the second
quarter, the Company had an allowance for credit losses on loans
HFI of $140.7 million, representing 1.51% of loans HFI compared to
$138.8 million, or 1.48% as of March 31, 2023.
The Company experienced net charge-offs of $0.7 million in the
second quarter of 2023, representing annualized net charge-offs of
0.03% of average loans HFI compared to 0.02% in the first quarter
of 2023 and 0.09% in the second quarter of 2022.
The Company's nonperforming loans HFI as a percentage of total
loans HFI improved to 0.47% as of the end of the second quarter of
2023 compared to 0.49% as of the previous quarter-end and 0.51% as
of the end of the second quarter of 2022. Nonperforming assets as a
percentage of total assets improved to 0.59% as of the end of the
second quarter of 2023 compared to 0.61% at the end of the prior
quarter and 0.46% as of the end of the second quarter of 2022.
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 Nashville, Tennessee. FB Financial
Corporation operates through its wholly owned banking subsidiary,
FirstBank with 82 full-service bank branches across Tennessee,
Kentucky, Alabama and North Georgia, and mortgage offices across
the Southeast. FirstBank has approximately $12.89 billion in total
assets.
SUPPLEMENTAL FINANCIAL INFORMATION AND EARNINGS
PRESENTATION
Investors are encouraged to review this Earnings Release in
conjunction with the Supplemental Financial Information and
Earnings Presentation posted on the Company’s website, which can be
found at https://investors.firstbankonline.com. This Earnings
Release, the Supplemental Financial Information and the Earnings
Presentation are also included with a Current Report on Form 8-K
that the Company furnished to the U.S. Securities and Exchange
Commission (“SEC”) on July 17, 2023.
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 Ukraine and additional sanctions and export controls, as well as
the broader impacts to financial markets and the global
macroeconomic and geopolitical environments, and (15) general
competitive, economic, political, and market conditions. Further
information regarding the Company and factors which could affect
the forward-looking statements contained herein can be found in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, and in any of the Company’s subsequent filings
with the SEC. Many of these factors are beyond the Company’s
ability to control or predict. If one or more events related to
these or other risks or uncertainties materialize, or if the
underlying assumptions prove to be incorrect, actual results may
differ materially from the forward-looking statements. Accordingly,
shareholders and investors should not place undue reliance on any
such forward-looking statements. Any forward-looking statement
speaks only as of the date of this Earnings Release, and the
Company undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law. New
risks and uncertainties may emerge from time to time, and it is not
possible for the Company to predict their occurrence or how they
will affect the Company.
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 U.S. generally accepted
accounting principles (“GAAP”) and therefore are considered
non-GAAP financial measures. These non-GAAP financial measures may
include, without limitation, adjusted net income, adjusted diluted
earnings per common share, adjusted and unadjusted pre-tax
pre-provision earnings, core revenue, core noninterest expense and
core noninterest income, core efficiency ratio (tax equivalent
basis), adjusted return on average assets and equity, and adjusted
pre-tax pre-provision return on average assets. Each of these
non-GAAP metrics excludes certain income and expense items that the
Company’s management considers to be non-core/adjusted in nature.
The Company refers to these non-GAAP measures as adjusted (or core)
measures. Also, the Company presents tangible assets, tangible
common equity, adjusted tangible common equity, tangible book value
per common share, adjusted tangible book value per common share,
tangible common equity to tangible assets, on-balance sheet
liquidity to tangible assets, return on average tangible common
equity, and adjusted return on average tangible common equity. Each
of these non-GAAP metrics excludes the impact of goodwill and other
intangibles. Adjusted tangible common equity and adjusted tangible
book value also exclude the impact of net accumulated other
comprehensive loss.
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 $20,225 and
$20,528 as of June 30, 2023 and March 31, 2023, respectively.
*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 $1,678 tax benefit
related to a change in the value of a net operating loss tax asset
related to previous business combination.
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
FB Financial (NYSE:FBK)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
FB Financial (NYSE:FBK)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024