Reported diluted EPS of $0.62 and adjusted diluted EPS of $0.66
for the first quarter of 2019
2019 first quarter annualized loan growth of 13.2% and annualized
customer deposit growth of 16.5%
NASHVILLE, Tenn.--(BUSINESS WIRE)--
FB Financial Corporation (the “Company”) (NYSE: FBK), parent company of
FirstBank, reported net income of $19.6 million, or $0.62 per diluted
common share, for the first quarter of 2019, compared to net income of
$19.8 million, or $0.63 per diluted common share, for the first quarter
of 2018. On an adjusted basis excluding merger-related and mortgage
restructuring expenses, net income per diluted common share was $0.66
for the first quarter of 2019 compared to $0.66 for the first quarter of
2018.
President and Chief Executive Officer, Christopher T. Holmes stated,
“Our team continues delivering outstanding service to our clients while
bringing new clients into FirstBank each day. As a result, during the
first quarter, we continued to see strong loan and customer deposit
growth of 13.2% and 16.5% annualized, respectively. While achieving this
growth, we also remained focused on profitability and saw our net
interest margin increase by 11 basis points from the previous quarter.”
Additionally, on April 1, 2019, the Company announced plans to sell its
wholesale mortgage operations and on April 5, 2019, FirstBank completed
the acquisition of 14 branches from Atlantic Capital Bank, N.A. The
acquisition of the branches will add approximately $598 million in
deposits and $385 million in loans to the Company’s balance sheet. The
results of the acquired branches will be included in periods ending
after April 5, 2019.
Holmes continued, “In early April we announced the restructuring of our
mortgage operations and plans to sell our third party origination
(‘TPO’) and correspondent channels. We also completed the Atlantic
Capital branch acquisition on April 5, 2019 which added approximately
$165 million of liquidity to our balance sheet. We have completed the
system conversions and branch consolidations and are excited about the
customers and teams we added in East Tennessee and North Georgia. With
our first quarter performance, mortgage restructuring, and Atlantic
Capital branch acquisition, we are excited and optimistic about the
outlook for the remainder of the year.”
|
Performance Summary |
|
|
|
|
| 2019 |
| 2018 |
| Annualized |
| |
(dollars in thousands, expect per share data) | | | | First Quarter | | Fourth Quarter |
| First Quarter | | 1Q19 / 4Q18 % Change | | 1Q19 / 1Q18 % Change |
Balance Sheet Highlights | | | | | | |
| | | | | |
Investment securities
| | | |
$
|
670,835
| | |
$
|
658,805
| | |
$
|
597,347
| | |
7.4
|
%
| |
12.3
|
%
|
Loans - held for sale
| | | |
248,054
| | |
278,815
| | |
414,518
| | |
(44.7
|
)%
| |
(40.2
|
)%
|
Loans - held for investment
| | | |
3,786,791
| | |
3,667,511
| | |
3,244,663
| | |
13.2
|
%
| |
16.7
|
%
|
Allowance for loan losses
| | | |
29,814
| | |
28,932
| | |
24,406
| | |
12.4
|
%
| |
22.2
|
%
|
Total assets
| | | |
5,335,156
| | |
5,136,764
| | |
4,725,416
| | |
15.7
|
%
| |
12.9
|
%
|
Customer deposits
| | | |
4,233,750
| | |
4,068,610
| | |
3,684,758
| | |
16.5
|
%
| |
14.9
|
%
|
Brokered and internet time deposits
| | | |
69,441
| | |
103,107
| | |
81,393
| | |
(132.4
|
)%
| |
(14.7
|
)%
|
Total deposits
| | | |
4,303,191
| | |
4,171,717
| | |
3,766,151
| | |
12.8
|
%
| |
14.3
|
%
|
Borrowings
| | | |
229,178
| | |
227,776
| | |
293,017
| | |
2.5
|
%
| |
(21.8
|
)%
|
Total shareholders' equity
|
|
|
|
694,577
|
|
|
671,857
|
|
|
611,075
|
|
|
13.7
|
%
|
|
13.7
|
%
|
Tangible book value per share*
| | | |
$
|
17.73
| | |
$
|
17.02
| | |
$
|
14.99
| | | | | |
Tangible common equity to tangible assets*
|
|
|
|
10.5
|
%
|
|
10.5
|
%
|
|
10.1
|
%
|
|
|
|
|
* Certain measures are considered non-GAAP financial measures.
See “Use of non-GAAP Financial Measures” and the corresponding
non-GAAP reconciliation tables in the Supplemental Financial
Information, which accompanies this Earnings Release, as well as
“Use of non-GAAP Financial Measures” and the Appendix in the
Earnings Release Presentation issued April 22, 2019 for a
reconciliation and discussion of this non-GAAP measure. |
|
|
|
|
|
| For the Three Months Ended March 31, |
(dollars in thousands, except share data) | | | 2019 |
| 2018 |
Results of operations | | | | | |
Net interest income
| | |
$
|
53,016
| | |
$
|
48,429
| |
NIM | | |
4.61
|
%
| |
4.64
|
%
|
Provision for loan losses
| | |
$
|
1,391
| | |
$
|
317
| |
Net charge-off (recovery) ratio | | |
0.06
|
%
| |
(0.01
|
)%
|
Noninterest income
| | |
$
|
29,039
| | |
$
|
33,275
| |
Mortgage banking income | | |
$
|
21,021
| | |
$
|
26,471
| |
Total revenue
| | |
$
|
82,055
| | |
$
|
81,704
| |
Noninterest expenses
| | |
$
|
55,101
| | |
$
|
56,151
| |
Merger-related and mortgage restructuring expenses | | |
$
|
1,675
| | |
$
|
1,193
| |
Efficiency ratio | | |
67.2
|
%
| |
68.7
|
%
|
Core efficiency ratio*(a) | | |
64.9
|
%
| |
66.8
|
%
|
Banking segment core efficiency ratio*(a) | | |
54.7
|
%
| |
57.9
|
%
|
Pre-tax income
| | |
$
|
25,563
| | |
$
|
25,236
| |
Total mortgage banking pre-tax contribution, adjusted* | | |
$
|
727
| | |
$
|
2,122
| |
Net income
| | |
$
|
19,588
| | |
$
|
19,754
| |
Diluted earnings per share
| | |
$
|
0.62
| | |
$
|
0.63
| |
Effective tax rate | | |
23.4
|
%
| |
21.7
|
%
|
Net income, adjusted* | | |
$
|
20,826
| | |
$
|
20,636
| |
Diluted earnings per share, adjusted* | | |
$
|
0.66
| | |
$
|
0.66
| |
Weighted average number of shares - diluted
| | |
31,349,198
| | |
31,421,830
| |
Actual shares outstanding - period end
| | |
30,852,665
| | |
30,671,763
| |
Returns on average: | | | | | |
Assets ("ROAA")
| | |
1.54
|
%
| |
1.71
|
%
|
Adjusted* | | |
1.63
|
%
| |
1.79
|
%
|
Equity ("ROAE")
| | |
11.6
|
%
| |
13.4
|
%
|
Tangible common equity ("ROATCE")* | | |
14.8
|
%
| |
17.9
|
%
|
Adjusted* |
|
|
15.7
|
%
|
|
18.7
|
%
|
* Certain measures are considered non-GAAP financial measures.
See “Use of non-GAAP Financial Measures” and the corresponding
non-GAAP reconciliation tables in the Supplemental Financial
Information, which accompanies this Earnings Release, as well as
“Use of non-GAAP Financial Measures” and the Appendix in the
Earnings Release Presentation issued April 22, 2019 for a
reconciliation and discussion of this non-GAAP measure. |
(a) During the first quarter of 2019, the Company changed its
presentation of the total and operating segments core efficiency
ratio calculation to no longer exclude the change in fair value of
MSRs; therefore, prior periods have been revised to reflect this
change. |
|
Strong Growth and Improved NIM
The Company grew loans (HFI) by $119.3 million during the first quarter
of 2019, or 13.2% annualized. The Company also increased its contractual
yield on the portfolio by 10 basis points to 5.66% during the first
quarter of 2019 compared to the fourth quarter of 2018 and by 38 basis
points compared to the first quarter of 2018.
During the first quarter of 2019, the Company grew customer deposits by
$165.1 million, or 16.5% annualized, while total deposit growth was
12.8% annualized. The net growth in customer deposits was partially
impacted by seasonal increases in public fund deposits and mortgage
servicing escrow deposits of $40.4 million and $16.7 million,
respectively. The cost of customer deposits increased to 112 basis
points from 100 basis points in the fourth quarter of 2018.
The Company’s net interest margin (“NIM”) was 4.61% for the first
quarter of 2019, compared to 4.50% and 4.64% for the fourth quarter of
2018 and the first quarter of 2018, respectively. Accretion related to
purchased loans and nonaccrual interest contributed 17 basis points to
the Company’s NIM in the first quarter of 2019 compared to 17 and 20
basis points for the fourth quarter of 2018 and the first quarter of
2018, respectively. Average loans held for investment increased to 79.1%
of total average interest earning assets and the overall yield on
earning assets increased 21 basis points on a linked quarter basis,
driven primarily by the increased yield on loans held for sale and loan
fees.
Noninterest Income Impacted by Mortgage
Environment
Noninterest income was $29.0 million for the first quarter of 2019,
compared to $27.2 million for the fourth quarter of 2018 and $33.3
million for the first quarter of 2018. Mortgage banking income was $21.0
million for the first quarter of 2019, compared to $19.0 million for the
fourth quarter of 2018 and $26.5 million for the first quarter of 2018.
Interest rate lock commitment volume totaled $1.36 billion in the first
quarter of 2019 compared to $1.31 billion in the fourth quarter of 2018
and $2.13 billion in the first quarter of 2018.
During the first quarter of 2019, the Company’s total mortgage direct
contribution was $0.7 million, excluding mortgage restructuring expenses
of $1.1 million, compared to the $1.8 million loss in the in the fourth
quarter of 2018.
Holmes commented, “With the exit of the TPO and correspondent channels,
we are focusing our efforts and resources on the retail and consumer
direct origination channels. These origination channels are well aligned
with our strategic plan and provide more consistent and predictable
financial results than wholesale origination channels.”
Operating Efficiency Gains Maintained
Noninterest expense was $55.1 million for the first quarter of 2019,
compared to $53.7 million for the fourth quarter of 2018 and $56.2
million for the first quarter of 2018. Adjusted for merger-related and
mortgage restructuring expenses, noninterest expense was $53.4 million
for the first quarter of 2019, $53.3 million for the fourth quarter of
2018 and $55.0 million for the first quarter of 2018.
Chief Financial Officer, James R. Gordon stated, “Noninterest expenses
remained stable within the Banking segment. Our core efficiency ratio
was 64.9%, driven by our Banking segment core efficiency ratio of 54.7%
compared to 57.9% in the first quarter of 2018.”
Asset Quality Remains Strong
During the first quarter of 2019, the Company recognized a provision for
loan losses of $1.4 million, reflecting loan growth, renewals of
previously acquired loans, stable credit metrics and net charge-offs of
0.06% of average loans. The Company’s nonperforming assets at March 31,
2019 were 0.57% of total assets compared to 0.61% at December 31, 2018.
Nonperforming loans were 0.41% of loans held for investment at March 31,
2019, compared to 0.46% at December 31, 2018.
Capital Positioned for Growth
“Our earnings continue to drive strong capital levels capable of
sustaining our growth, including the completed Atlantic Capital branch
acquisition after quarter end. Our tangible common equity to tangible
assets of 10.5% and per share growth in tangible book value of 18.3%
year-over-year easily accommodate our quarterly cash dividend of eight
cents per share. The deployment of excess capital through the completed
branch acquisition will improve our returns on equity and tangible
equity in future periods,” commented Gordon.
Summary
“Overall, our Company continues to capitalize on strong momentum by
continuing to deliver solid organic growth and profitability while being
opportunistic on the acquisition front. We remain committed to helping
our customers and associates achieve their goals while providing
shareholders outstanding returns,” Holmes concluded.
WEBCAST AND CONFERENCE CALL INFORMATION
The live broadcast of FB Financial Corporation’s earnings conference
call will begin at 8:00 a.m. CT on Tuesday, April 23, 2019, and the
conference call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1631/27772.
An online replay will be available approximately an hour following the
conclusion of the live broadcast.
ABOUT FB FINANCIAL CORPORATION
FB Financial Corporation (NYSE: FBK) is a bank holding company
headquartered in Nashville, Tennessee. FB Financial operates through its
wholly owned banking subsidiary, FirstBank, the third largest
Tennessee-headquartered community bank, with 66 full-service bank
branches across Tennessee, North Alabama and North Georgia, and mortgage
offices across the Southeast. FirstBank serves five of the largest
metropolitan markets in Tennessee and has approximately $5.7 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 April 22, 2019.
BUSINESS SEGMENT RESULTS
The Company has included its business segment financial tables as part
of this Earnings Release. A detailed discussion of our business segments
is included in the Company’s Annual Report on Form 10-K filed with the
SEC for the year ended December 31, 2018, and investors are encouraged
to review that discussion in conjunction with this Earnings Release.
FORWARD-LOOKING STATEMENTS
This Earnings Release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, that
have been made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements in some cases through the use of words such
as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,”
“should,” “predicts,” “could,” “would,” “intends,” “targets,”
“estimates,” “projects,” “plans,” “potential” and other similar words
and expressions of the future or otherwise regarding the proposed
acquisition, including the timing, anticipated benefits and financial
impact thereof, and the outlook for our future business and financial
performance.
These forward-looking statements include, without limitation, statements
relating to FB Financial’s assets, business, cash flows, condition
(financial or otherwise), credit quality, financial performance,
liquidity, short and long-term performance goals, prospects, results of
operations, strategic initiatives and the timing, benefits, as well as
statements relating to the anticipated benefits and financial impact of
FB Financial’s mortgage segment restructuring and the acquisition by
FirstBank of the Atlantic Capital branches, including: acceptance by the
customers of the acquired Atlantic Capital branches of FB Financial’s
products and services, the opportunities to enhance market share in
certain markets, market acceptance of FB Financial generally in new
markets, expectations regarding future investment in the acquired
Atlantic Capital branches’ markets and the integration of the acquired
Atlantic Capital branches’ operations, disposition, and other growth
opportunities. Forward-looking statements are based on the information
known to, and current beliefs and expectations of, FB Financial’s
management and are subject to significant risks and uncertainties.
Actual results may differ materially from those contemplated by such
forward-looking statements. A number of important factors could cause
actual results to differ materially from those contemplated by the
forward-looking statements in this presentation including, without
limitation: FB Financial’s ability to achieve the anticipated benefits
and cost synergies of the mortgage segment restructuring, the parties’
ability to meet expectations regarding the accounting and tax treatment
of the Atlantic Capital acquisition; the possibility that any of the
anticipated benefits of the Atlantic Capital acquisition will not be
fully realized or will not be realized within the expected time period;
the risk that integration of the acquired Atlantic Capital branches’
operations with those of FB Financial or will be more costly than
expected; the effect of the announcement of the closing of the Atlantic
Capital acquisition on employee and customer relationships and operating
results (including, without limitation, difficulties in maintaining
relationships with employees and customers); general competitive,
economic, political and market conditions and fluctuations; and the
other risk factors set forth in our December 31, 2018 Form 10-K, filed
with the Securities and Exchange Commission on March 12, 2019, under the
captions “Cautionary note regarding forward-looking statements” and
“Risk factors”. Many of these factors are difficult to foresee and are
beyond our ability to control or predict. We believe the forward-looking
statements contained herein are reasonable; however, undue reliance
should not be placed on any forward-looking statements, which are based
on current expectations and speak only as of the date that they are
made. We do not assume any obligation to update any forward-looking
statements as a result of new information, future developments or
otherwise, except as otherwise may be required by law.
GAAP RECONCILIATION AND USE OF NON-GAAP FINANCIAL MEASURES
This Earnings Release contains certain financial measures that are not
measures recognized under U.S. generally accepted accounting principles
(“GAAP”) and therefore are considered non-GAAP financial measures. These
non-GAAP financial measures include, without limitation, adjusted net
income, adjusted diluted earnings per share, core revenue, core
noninterest expense and core noninterest income, core efficiency ratio
(tax equivalent basis), Banking segment core efficiency ratio (tax
equivalent basis), Mortgage segment core efficiency ratio (tax
equivalent basis), adjusted mortgage contribution, adjusted return on
average assets and equity and core total revenue. Each of these non-GAAP
metrics excludes certain income and expense items that the Company’s
management considers to be non-core/adjusted in nature. The Company
refers to these non-GAAP measures as adjusted measures. The
corresponding Supplemental Financial Information and Earnings Release
Presentation also presents tangible assets, tangible common equity,
tangible book value per common share, tangible common equity to tangible
assets, return on tangible common equity, return on average tangible
common equity and adjusted return on average tangible common equity.
Each of these non-GAAP metrics excludes the impact of goodwill and other
intangibles.
The Company’s management uses these non-GAAP financial measures in their
analysis of the Company’s performance, financial condition and the
efficiency of its operations as management believes such measures
facilitate period-to-period comparisons and provide meaningful
indications of its operating performance as they eliminate both gains
and charges that management views as non-recurring or not indicative of
operating performance. Management believes that these non-GAAP financial
measures provide a greater understanding of ongoing operations and
enhance comparability of results with prior periods as well as
demonstrate the effects of significant non-core gains and charges in the
current and prior periods. The Company’s management also believes that
investors find these non-GAAP financial measures useful as they assist
investors in understanding the Company’s underlying operating
performance and in the analysis of ongoing operating trends. In
addition, because intangible assets such as goodwill and other
intangibles, and the other items excluded each vary extensively from
company to company, the Company believes that the presentation of this
information allows investors to more easily compare the Company’s
results to the results of other companies. However, the non-GAAP
financial measures discussed herein should not be considered in
isolation or as a substitute for the most directly comparable or other
financial measures calculated in accordance with GAAP. Moreover, the
manner in which the Company calculates the non-GAAP financial measures
discussed herein may differ from that of other companies reporting
measures with similar names. Investors should understand how such other
banking organizations calculate their financial measures similar or with
names similar to the non-GAAP financial measures the Company has
discussed herein when comparing such non-GAAP financial measures. See
the “Use of non-GAAP Financial Measures” and the corresponding non-GAAP
reconciliation tables in the Supplemental Financial Information as well
as “Use of non-GAAP Financial Measures” and the Appendix in the Earnings
Release Presentation issued April 22, 2019, for a discussion and
reconciliation of these measures to the most directly comparable GAAP
financial measures.
|
|
|
Financial Summary and Key Metrics |
(Unaudited) |
(In Thousands, Except Share Data and %)
|
|
|
|
| 2019 |
| 2018 |
|
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Statement of Income Data | | | | | |
| |
Total interest income
| | |
$
|
65,933
| | |
$
|
63,068
| | |
$
|
54,848
| |
Total interest expense
| | |
12,917
|
| |
11,701
|
|
|
6,419
|
|
Net interest income
| | |
53,016
| | |
51,367
| | |
48,429
| |
Provision for loan losses
| | |
1,391
| | |
2,200
| | |
317
| |
Total noninterest income
| | |
29,039
| | |
27,249
| | |
33,275
| |
Total noninterest expense
| | |
55,101
|
| |
53,736
|
|
|
56,151
|
|
Net income before income taxes
| | |
25,563
| | |
22,680
| | |
25,236
| |
Income tax expense
| | |
5,975
|
| |
5,640
|
|
|
5,482
|
|
Net income
| | |
$
|
19,588
|
| |
$
|
17,040
|
|
|
$
|
19,754
|
|
Net interest income (tax—equivalent basis)
| | |
$
|
53,461
|
| |
$
|
51,799
|
|
|
$
|
48,799
|
|
Net income, adjusted*
| | |
$
|
20,826
|
| |
$
|
17,336
|
|
|
$
|
20,636
|
|
Per Common Share | | | | | | | |
Diluted net income
| | |
$
|
0.62
| | |
$
|
0.54
| | |
$
|
0.63
| |
Diluted net income, adjusted*
| | |
0.66
| | |
0.55
| | |
0.66
| |
Book value
| | |
22.51
| | |
21.87
| | |
19.92
| |
Tangible book value*
| | |
17.73
| | |
17.02
| | |
14.99
| |
Weighted average number of shares-diluted
| | |
31,349,198
| | |
31,344,949
| | |
31,421,830
| |
Period-end number of shares
|
|
|
30,852,665
|
|
|
30,724,532
|
|
|
30,671,763
|
|
Selected Balance Sheet Data | | | | | | | |
Cash and cash equivalents
| | |
$
|
195,414
| | |
$
|
125,356
| | |
$
|
73,700
| |
Loans held for investment (HFI)
| | |
3,786,791
| | |
3,667,511
| | |
3,244,663
| |
Allowance for loan losses
| | |
(29,814
|
)
| |
(28,932
|
)
| |
(24,406
|
)
|
Loans held for sale
| | |
248,054
| | |
278,815
| | |
414,518
| |
Investment securities, at fair value
| | |
670,835
| | |
658,805
| | |
597,347
| |
Other real estate owned, net
| | |
12,828
| | |
12,643
| | |
15,334
| |
Total assets
| | |
5,335,156
| | |
5,136,764
| | |
4,725,416
| |
Customer deposits
| | |
4,233,750
| | |
4,068,610
| | |
3,684,758
| |
Brokered and internet time deposits
| | |
69,441
| | |
103,107
| | |
81,393
| |
Total deposits
| | |
4,303,191
| | |
4,171,717
| | |
3,766,151
| |
Borrowings
| | |
229,178
| | |
227,776
| | |
293,017
| |
Total shareholders' equity
|
|
|
694,577
|
|
|
671,857
|
|
|
611,075
|
|
Selected Ratios | | | | | | | |
Return on average:
| | | | | | | |
Assets
| | |
1.54
|
%
| |
1.35
|
%
| |
1.71
|
%
|
Shareholders' equity
| | |
11.6
|
%
| |
10.3
|
%
| |
13.4
|
%
|
Tangible common equity*
| | |
14.8
|
%
| |
13.3
|
%
| |
17.9
|
%
|
Average shareholders' equity to average assets
| | |
13.2
|
%
| |
13.2
|
%
| |
12.8
|
%
|
Net interest margin (NIM) (tax-equivalent basis)
| | |
4.61
|
%
| |
4.50
|
%
| |
4.64
|
%
|
Efficiency ratio (GAAP)
| | |
67.2
|
%
| |
68.4
|
%
| |
68.7
|
%
|
Core efficiency ratio (tax-equivalent basis)*(a) | | |
64.9
|
%
| |
67.5
|
%
| |
66.8
|
%
|
Loans HFI to deposit ratio
| | |
88.0
|
%
| |
87.9
|
%
| |
86.2
|
%
|
Total loans to deposit ratio
| | |
93.8
|
%
| |
94.6
|
%
| |
97.2
|
%
|
Yield on interest-earning assets
| | |
5.73
|
%
| |
5.52
|
%
| |
5.25
|
%
|
Cost of interest-bearing liabilities
| | |
1.52
|
%
| |
1.40
|
%
| |
0.85
|
%
|
Cost of total deposits
|
|
|
1.14
|
%
|
|
1.03
|
%
|
|
0.55
|
%
|
Credit Quality Ratios | | | | | | | |
Allowance for loan losses as a percentage of loans HFI
| | |
0.79
|
%
| |
0.79
|
%
| |
0.75
|
%
|
Net charge-off's (recoveries) as a percentage of average loans HFI
| | |
0.06
|
%
| |
0.06
|
%
| |
(0.01
|
)%
|
Nonperforming loans HFI as a percentage of total loans HFI
| | |
0.41
|
%
| |
0.46
|
%
| |
0.30
|
%
|
Nonperforming assets as a percentage of total assets
|
|
|
0.57
|
%
|
|
0.61
|
%
|
|
0.59
|
%
|
Preliminary capital ratios (Consolidated) | | | | | | | |
Shareholders' equity to assets
| | |
13.0
|
%
| |
13.1
|
%
| |
12.9
|
%
|
Tangible common equity to tangible assets*
| | |
10.5
|
%
| |
10.5
|
%
| |
10.1
|
%
|
Tier 1 capital (to average assets)
| | |
11.5
|
%
| |
11.4
|
%
| |
10.7
|
%
|
Tier 1 capital (to risk-weighted assets)
| | |
12.7
|
%
| |
12.4
|
%
| |
11.8
|
%
|
Total capital (to risk-weighted assets)
| | |
13.4
|
%
| |
13.0
|
%
| |
12.3
|
%
|
Common Equity Tier 1 (to risk-weighted assets) (CET1)
|
|
|
12.0
|
%
|
|
11.7
|
%
|
|
11.0
|
%
|
*These measures are considered non-GAAP financial measures. See
“GAAP Reconciliation and Use of Non-GAAP Financial Measures” and
the corresponding financial tables below for reconciliations of
these Non-GAAP measures. Investors are encouraged to refer to the
discussion of non-GAAP measures included in the corresponding
earnings release. |
(a) During the first quarter of 2019, the Company changed its
presentation of the total and operating segments core efficiency
ratio calculation to no longer exclude the change in fair value of
MSRs; therefore, prior periods have been revised to reflect this
change. |
|
|
|
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data and %)
|
|
|
| |
| |
| | | 2019 |
| 2018 |
Net income, adjusted |
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Pre-tax net income | | | $ | 25,563 | | | $ | 22,680 | | | $ | 25,236 | |
Plus merger and mortgage restructuring-related expenses
| | |
1,675
|
| |
401
|
|
|
1,193
|
|
Pre-tax net income, adjusted | | | $ | 27,238 | | | $ | 23,081 | | | $ | 26,429 | |
Income tax expense, adjusted
| | |
6,412
|
| |
5,745
|
|
|
5,793
|
|
Net income, adjusted | | | $ | 20,826 |
| | $ | 17,336 |
|
| $ | 20,636 |
|
Weighted average common shares outstanding fully diluted
| | |
31,349,198
| | |
31,344,949
| | |
31,421,830
| |
Diluted earnings per share, adjusted | | | | | | | |
Diluted earnings per common share | | | $ | 0.62 | | | $ | 0.54 | | | $ | 0.63 | |
Plus merger and mortgage restructuring-related expenses
| | |
0.05
| | |
0.01
| | |
0.04
| |
Less tax effect
| | |
0.01
|
| |
—
|
|
|
(0.01
|
)
|
Diluted earnings per share, adjusted |
|
| $ | 0.66 |
|
| $ | 0.55 |
|
| $ | 0.66 |
|
| | | | | | |
|
| | | 2019 | | 2018 |
Core efficiency ratio (tax-equivalent basis)(a) |
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Total noninterest expense
| | |
$
|
55,101
| | |
$
|
53,736
| | |
$
|
56,151
| |
Less merger and mortgage restructuring-related expenses
| | |
1,675
|
| |
401
|
|
|
1,193
|
|
Core noninterest expense | | |
$
|
53,426
|
| |
$
|
53,335
|
|
|
$
|
54,958
|
|
Net interest income (tax-equivalent basis)
| | |
$
|
53,461
| | |
$
|
51,799
| | |
$
|
48,799
| |
Total noninterest income
| | |
29,039
| | |
27,249
| | |
33,275
| |
Less gain (loss) on sales or write-downs of other real estate
owned and other assets
| | |
152
| | |
33
| | |
(118
|
)
|
Less gain (loss) from securities, net
| | |
43
|
| |
—
|
|
|
(47
|
)
|
Core noninterest income | | |
28,844
|
| |
27,216
|
|
|
33,440
|
|
Core revenue | | |
$
|
82,305
|
| |
$
|
79,015
|
|
|
$
|
82,239
|
|
Efficiency ratio (GAAP)(b) | | |
67.2
|
%
| |
68.4
|
%
| |
68.7
|
%
|
Core efficiency ratio (tax-equivalent basis) |
|
|
64.9
|
%
|
|
67.5
|
%
|
|
66.8
|
%
|
(a) During the first quarter of 2019, the Company changed its
presentation of the total and operating segments core efficiency
ratio calculation to no longer exclude the change in fair value of
MSRs; therefore, prior periods have been revised to reflect this
change. |
(b) Efficiency ratio (GAAP) is calculated by dividing reported
noninterest expense by reported total revenue. |
|
|
|
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data and %)
|
|
|
| |
| |
| | | 2019 |
| 2018 |
Banking segment core efficiency ratio (tax equivalent)(a) |
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Core consolidated noninterest expense
| | |
$
|
53,426
| | |
$
|
53,335
| | |
$
|
54,958
| |
Less Mortgage segment core noninterest expense
| | |
17,486
|
| |
16,262
|
|
|
18,910
|
|
Core Banking segment noninterest expense
| | |
35,940
|
| |
37,073
|
|
|
36,048
|
|
Core revenue
| | |
82,305
| | |
79,015
| | |
82,239
| |
Less Mortgage segment total revenue
| | |
16,658
|
| |
13,979
|
|
|
20,021
|
|
Core Banking segment total revenue
| | |
$
|
65,647
|
| |
$
|
65,036
|
|
|
$
|
62,218
|
|
Banking segment core efficiency ratio (tax-equivalent basis) | | |
54.7
|
%
| |
57.0
|
%
| |
57.9
|
%
|
| | | | | | |
|
Mortgage segment core efficiency ratio (tax equivalent)(a) | | | | | | | |
Mortgage segment noninterest expense
| | |
$
|
18,540
| | |
$
|
16,262
| | |
$
|
18,910
| |
Less mortgage restructuring expense
| | |
1,054
|
| |
—
|
|
|
—
|
|
Core Mortgage segment noninterest expense
| | |
$
|
17,486
|
| |
$
|
16,262
|
|
|
$
|
18,910
|
|
Mortgage segment total revenue
| | |
$
|
16,658
|
| |
$
|
13,979
|
|
|
$
|
20,021
|
|
Mortgage segment core efficiency ratio (tax-equivalent basis) |
|
|
N/A
|
|
|
N/A
|
|
|
94.5
|
%
|
(a) During the first quarter of 2019, the Company changed its
presentation of the total and operating segments core efficiency
ratio calculation to no longer exclude the change in fair value of
MSRs; therefore, prior periods have been revised to reflect this
change. |
| | | | | | |
|
| | | 2019 | | 2018 |
Mortgage contribution, adjusted |
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Mortgage segment pre-tax net contribution
| | |
$
|
(1,882
|
)
| |
$
|
(2,283
|
)
| |
$
|
1,111
| |
Retail footprint:
| | | | | | | |
Mortgage banking income
| | |
4,386
| | |
5,041
| | |
6,108
| |
Mortgage banking expenses
| | |
2,831
|
| |
4,542
|
|
|
5,097
|
|
Retail footprint pre-tax net contribution
| | |
1,555
|
| |
499
|
|
|
1,011
|
|
Total mortgage banking pre-tax net (loss) contribution
| | |
$
|
(327
|
)
| |
$
|
(1,784
|
)
|
|
$
|
2,122
|
|
Plus mortgage restructuring expense
| | |
1,054
|
| |
—
|
|
|
—
|
|
Total mortgage banking pre-tax net contribution (loss), adjusted | | |
$
|
727
|
| |
$
|
(1,784
|
)
|
|
$
|
2,122
|
|
Pre-tax net income
| | |
$
|
25,563
| | |
$
|
22,680
| | |
$
|
25,236
| |
% total mortgage banking pre-tax net contribution
| | |
N/A
| | |
N/A
| | |
8.4
|
%
|
Pre-tax net income, adjusted
| | |
$
|
27,238
| | |
$
|
23,081
| | |
$
|
26,429
| |
% total mortgage banking pre-tax net contribution, adjusted |
|
|
2.7
|
%
|
|
N/A
|
|
|
8.0
|
%
|
| | | | | | |
|
| | | 2019 | | 2018 |
Tangible assets and equity |
|
| First Quarter | | Fourth Quarter |
| First Quarter |
Tangible Assets | | | | | | | |
Total assets
| | |
$
|
5,335,156
| | |
$
|
5,136,764
| | |
$
|
4,725,416
| |
Less goodwill
| | |
137,190
| | |
137,190
| | |
137,190
| |
Less intangibles, net
| | |
10,439
|
| |
11,628
|
|
|
14,027
|
|
Tangible assets | | |
$
|
5,187,527
|
| |
$
|
4,987,946
|
|
|
$
|
4,574,199
|
|
Tangible Common Equity | | | | | | | |
Total shareholders' equity
| | |
$
|
694,577
| | |
$
|
671,857
| | |
$
|
611,075
| |
Less goodwill
| | |
137,190
| | |
137,190
| | |
137,190
| |
Less intangibles, net
| | |
10,439
|
| |
11,628
|
|
|
14,027
|
|
Tangible common equity | | |
$
|
546,948
|
| |
$
|
523,039
|
|
|
$
|
459,858
|
|
Common shares outstanding
| | |
30,852,665
| | |
30,724,532
| | |
30,671,763
| |
Book value per common share
| | |
$
|
22.51
| | |
$
|
21.87
| | |
$
|
19.92
| |
Tangible book value per common share | | |
$
|
17.73
| | |
$
|
17.02
| | |
$
|
14.99
| |
Total shareholders' equity to total assets
| | |
13.0
|
%
| |
13.1
|
%
| |
12.9
|
%
|
Tangible common equity to tangible assets | | |
10.5
|
%
| |
10.5
|
%
|
|
10.1
|
%
|
Net income
| | |
$
|
19,588
|
| |
$
|
17,040
|
|
|
$
|
19,754
|
|
Return on tangible common equity |
|
|
14.5
|
%
|
|
12.9
|
%
|
|
17.4
|
%
|
|
|
|
Non-GAAP Reconciliation |
For the Quarters Ended |
(Unaudited) |
(In Thousands, Except Share Data and %)
|
|
|
|
|
|
|
|
| |
|
| |
| | | | | | | | 2019 |
|
| 2018 |
Return on average tangible common equity |
|
|
|
|
|
|
| First Quarter | | | Fourth Quarter |
|
| First Quarter |
Total average shareholders' equity
| | | | | | | |
$
|
684,545
| | | |
$
|
659,050
| | | |
$
|
599,198
| |
Less average goodwill
| | | | | | | |
137,190
| | | |
137,190
| | | |
137,190
| |
Less average intangibles, net
| | | | | | | |
10,856
|
| | |
12,016
|
|
|
|
14,465
|
|
Average tangible common equity | | | | | | | |
$
|
536,499
| | | |
$
|
509,845
| | | |
$
|
447,544
| |
Net income
| | | | | | | |
$
|
19,588
| | | |
$
|
17,040
| | | |
$
|
19,754
| |
Return on average tangible common equity |
|
|
|
|
|
|
|
14.8
|
%
|
|
|
13.3
|
%
|
|
|
17.9
|
%
|
| | | | | | | | | | |
|
| | | | | | | | 2019 | | | 2018 |
Return on average tangible common equity, adjusted |
|
|
|
|
|
|
| First Quarter | | | Fourth Quarter |
|
| First Quarter |
Average tangible common equity
| | | | | | | |
$
|
536,499
| | | |
$
|
509,845
| | | |
$
|
447,544
| |
Net income, adjusted | | | | | | | |
20,826
| | | |
17,336
| | | |
20,636
| |
Return on average tangible common equity, adjusted |
|
|
|
|
|
|
|
15.7
|
%
|
|
|
13.5
|
%
|
|
|
18.7
|
%
|
| | | | | | | | | | | | | |
|
| | | | | | | | 2019 | | | 2018 |
Return on average assets and equity, adjusted |
|
|
|
|
|
|
| First Quarter | | | Fourth Quarter |
|
| First Quarter |
Net income
| | | | | | | |
$
|
19,588
| | | |
$
|
17,040
| | | |
$
|
19,754
| |
Average assets
| | | | | | | |
5,174,918
| | | |
5,005,158
| | | |
4,678,494
| |
Average equity
| | | | | | | |
684,545
| | | |
659,050
| | | |
599,198
| |
Return on average assets | | | | | | | |
1.54
|
%
| | |
1.35
|
%
| | |
1.71
|
%
|
Return on average equity | | | | | | | |
11.6
|
%
| | |
10.3
|
%
| | |
13.4
|
%
|
Net income, adjusted
| | | | | | | |
$
|
20,826
| | | |
$
|
17,336
| | | |
$
|
20,636
| |
Return on average assets, adjusted | | | | | | | |
1.63
|
%
| | |
1.37
|
%
| | |
1.79
|
%
|
Return on average equity, adjusted |
|
|
|
|
|
|
|
12.3
|
%
|
|
|
10.4
|
%
|
|
|
14.0
|
%
|
|
|
|
|

View source version on businesswire.com: https://www.businesswire.com/news/home/20190422005504/en/
MEDIA CONTACT:
Jeanie M. Rittenberry
615-313-8328
jrittenberry@firstbankonline.com
www.firstbankonline.com
FINANCIAL CONTACT:
James R. Gordon
615-564-1212
jgordon@firstbankonline.com
investorrelations@firstbankonline.com
Source: FB Financial Corporation