FB Financial Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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8-K - FB FINANCIAL CORPORATION 8-K - FB Financial Corp	a51545783.htm
EX-99.3 - EXHIBIT 99.3 - FB Financial Corp	a51545783ex99_3.htm
EX-99.1 - EXHIBIT 99.1 - FB Financial Corp	a51545783ex99_1.htm

Exhibit 99.2

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 1

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data)

	2017			2016

	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Statement of Income Data
Total interest income	$	32,889		$	31,567		$	30,005		$	30,732		$	28,318
Total interest expense		2,638			2,535			2,388			2,374			2,375
Net interest income		30,251			29,032			27,617			28,358			25,943
Provision for loan losses		(257	)		(752	)		71			(789	)		(9	)
Total noninterest income		31,087			31,332			43,962			38,356			31,035
Total noninterest expense		46,417			47,319			55,529			50,595			41,347
Net income before income taxes		15,178			13,797			15,979			16,908			15,640
Income tax expense		5,425			4,787			14,772			1,133			1,041
Net income	$	9,753		$	9,010		$	1,207		$	15,775		$	14,599
Net interest income (tax—equivalent basis)	$	30,963		$	29,686		$	28,213		$	28,967		$	26,445
Pro forma net income (C-Corp basis)	$	9,753		$	9,010		$	10,033		$	10,576		$	9,803
Pro forma core net income*	$	10,284		$	10,484		$	12,935		$	13,151		$	9,709
Per Common Share
Diluted net income	$	0.40		$	0.37		$	0.07		$	0.92		$	0.85
Pro forma net income- diluted (C Corp basis)	$	0.40		$	0.37		$	0.55		$	0.62		$	0.57
Pro forma core net income- diluted*	$	0.42		$	0.43		$	0.71		$	0.77		$	0.57
Book value		14.16			13.71			13.73			15.47			14.74
Tangible book value*		12.05			11.58			11.56			12.41			11.65
Weighted average number of shares-diluted		24,610,991			24,500,943			18,332,192			17,180,000			17,180,000
Period-end number of shares		24,154,323			24,107,660			23,975,122			17,180,000			17,180,000
Selected Balance Sheet Data
Cash and due from banks	$	53,748		$	50,157		$	51,292		$	52,122		$	51,133
Loans held for investment		1,900,995			1,848,784			1,793,343			1,750,304			1,712,386
Allowance for loan losses		(22,898	)		(21,747	)		(23,290	)		(23,734	)		(24,431	)
Loans held for sale		365,173			507,442			486,601			322,249			233,110
Available-for-sale securities, fair value		567,886			582,183			553,357			550,307			587,377
Foreclosed real estate, net		6,811			7,403			8,964			9,902			10,533
Total assets		3,166,459			3,276,881			3,187,180			2,917,958			2,855,563
Total deposits		2,701,199			2,671,562			2,640,072			2,514,297			2,469,133
Core deposits*		2,638,530			2,611,438			2,575,797			2,455,298			2,417,089
Borrowings		44,552			194,892			125,291			55,785			56,201
Total shareholders' equity		342,142			330,498			329,108			265,768			253,236
Selected Ratios
Return on average:
Assets		1.25	%		1.12	%		0.16	%		2.19	%		2.03	%
Shareholders' equity		11.87	%		11.24	%		1.74	%		24.42	%		23.79	%
Tangible common equity*		14.03	%		13.40	%		2.14	%		30.64	%		30.35	%
Pro forma return on average (C-Corp basis):
Assets		1.25	%		1.12	%		1.32	%		1.47	%		1.37	%
Shareholders' equity		11.87	%		11.24	%		14.43	%		16.37	%		15.97	%
Tangible common equity*		14.03	%		13.40	%		17.79	%		20.55	%		20.38	%
Average shareholders' equity to average assets		10.50	%		9.95	%		9.17	%		8.96	%		8.55	%
Net interest margin (tax-equivalent basis)		4.28	%		3.99	%		4.05	%		4.40	%		4.03	%
Efficiency ratio (GAAP)		75.67	%		78.39	%		77.58	%		75.84	%		72.57	%
Core efficiency ratio (tax-equivalent basis)*		73.29	%		73.72	%		69.65	%		67.80	%		71.59	%
Loans held for investment to deposit ratio		70.38	%		69.20	%		67.93	%		69.61	%		69.35	%
Total loan to deposit ratio		83.89	%		88.20	%		86.36	%		82.43	%		78.79	%
Yield on interest-earning assets		4.65	%		4.33	%		4.40	%		4.74	%		4.39	%
Cost of interest-bearing liabilities		0.51	%		0.49	%		0.48	%		0.46	%		0.48	%
Cost of total deposits		0.32	%		0.29	%		0.30	%		0.28	%		0.29	%
Credit Quality Ratios
Allowance for loan losses as a percentage of loans held for investment		1.20	%		1.18	%		1.30	%		1.36	%		1.43	%
Net recoveries (charge-off's) as a percentage of average total loans held
for investment		0.31	%		(0.17	)%		(0.12	)%		0.02	%		(0.00	)%
Nonperforming assets as a percentage of total assets		0.56	%		0.58	%		0.68	%		0.78	%		0.83	%
Preliminary capital ratios (Consolidated)										`
Shareholders' equity to assets		10.81	%		10.09	%		10.33	%		9.11	%		8.87	%
Tangible common equity to tangible assets*		9.34	%		8.65	%		8.84	%		7.44	%		7.14	%
Tier 1 capital (to average assets)		10.46	%		10.06	%		10.32	%		7.98	%		7.81	%
Tier 1 capital (to risk-weighted assets)		12.42	%		12.21	%		12.37	%		9.57	%		9.68	%
Total capital (to risk-weighted assets)		13.28	%		13.04	%		13.32	%		11.00	%		11.21	%
Common Equity Tier 1 (to risk-weighted assets) (CET1)		11.14	%		11.05	%		11.16	%		8.30	%		8.35	%

*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 a reconciliation and discussion of these non-GAAP measures.

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 2

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data)


																Q1 2017			Q1 2017
																-			-
	2017			2016												Q4 2016			Q1 2016
	First Quarter			Fourth Quarter			Third Quarter		Second Quarter			First Quarter			Percent variance			Percent variance
Interest income:
Interest and fees on loans	$	29,006		$	28,125		$	26,550	$	26,878		$	24,312			3.13	%		19.31	%
Interest on securities
Taxable		2,567			2,350			2,402		2,849			3,045			9.23	%		-15.70	%
Tax-exempt		1,040			947			875		845			705			9.82	%		47.52	%
Other		276			145			178		108			180			90.34	%		53.33	%
Total interest income		32,889			31,567			30,005		30,680			28,242			4.19	%		16.45	%
Interest expense:
Deposits
Demand and savings accounts		1,531			1,387			1,340		1,289			1,397			10.38	%		9.59	%
Time deposits		583			551			575		441			362			5.81	%		61.05	%
Short-term borrowings		10			20			13		29			59			-50.00	%		-83.05	%
Long-term debt		514			577			460		563			481			-10.92	%		6.86	%
Total interest expense		2,638			2,535			2,388		2,322			2,299			4.06	%		14.75	%
Net interest income		30,251			29,032			27,617		28,358			25,943			4.20	%		16.61	%
Provision for loan losses		(257	)		(752	)		71		(789	)		(9	)		-65.82	%		2755.56	%
Net interest income after provision for loan losses		30,508			29,784			27,546		29,147			25,952			2.43	%		17.56	%
Noninterest income:
Mortgage banking income		25,080			26,177			36,938		30,133			24,503			-4.19	%		2.35	%
Service charges on deposit accounts		1,766			1,880			1,870		2,276			1,983			-6.06	%		-10.94	%
ATM and interchange fees		2,047			2,035			1,814		1,907			2,035			0.59	%		0.59	%
Investment services income		814			829			857		958			693			-1.81	%		17.46	%
Gain on sale of securities		1			-			416		2,591			1,400			100.00	%		-99.93	%
Gain (loss) on sales or write-downs of foreclosed assets		748			(222	)		1,646		(131	)		(11	)		-436.94	%		-6900.00	%
Gain (loss) on other assets		-			(127	)		7		(123	)		140			-100.00	%		-100.00	%
Other incomse		631			760			414		745			292			-16.97	%		116.10	%
Total noninterest income		31,087			31,332			43,962		38,356			31,035			-0.78	%		0.17	%
Total revenue		61,338			60,364			71,579		66,714			56,978			1.61	%		7.65	%
Noninterest expenses:
Salaries, commissions and employee benefits		29,006			29,506			34,010		26,688			23,788			-1.69	%		21.94	%
Occupancy and equipment expense		3,109			3,044			3,171		3,226			3,170			2.14	%		-1.92	%
Legal and professional fees		1,428			810			816		856			1,032			76.30	%		38.37	%
Data processing		1,501			1,490			1,294		669			728			0.74	%		106.18	%
Merger and conversion		487			-			1,122		1,540			606			100.00	%		-19.64	%
Amortization of core deposit intangibles		392			527			526		527			552			-25.62	%		-28.99	%
Amortization of mortgage servicing rights		-			2,100			2,796		1,968			1,457			-100.00	%		-100.00	%
(Recovery of) impairment of mortgage servicing rights		-			(3,411	)		2,402		4,914			773			-100.00	%		-100.00	%
Loss on sale of mortgage servicing rights					4,447			-		-			-			100.00	%		100.00	%
Regulatory fees and deposit insurance assessments		435			471			465		529			487			-7.64	%		-10.68	%
Software license and maintenance fees		457			513			503		1,349			509			-10.92	%		-10.22	%
Advertising		2,932			2,537			2,220		3,601			2,250			15.57	%		30.31	%
Other expense		6,670			5,285			6,204		4,728			5,995			26.21	%		11.26	%
Total noninterest expense		46,417			47,319			55,529		50,595			41,347			-1.91	%		12.26	%
Net income before income taxes		15,178			13,797			15,979		16,908			15,640			10.01	%		-2.95	%
Income tax expense		5,425			4,787			14,772		1,133			1,041			13.33	%		421.13	%
Net income	$	9,753		$	9,010		$	1,207	$	15,775		$	14,599			8.25	%		-33.19	%
Weighted average common shares outstanding:
Basic		24,138,437			23,977,028			18,259,128		17,180,000			17,180,000
Fully diluted		24,610,991			24,500,943			18,332,192		17,180,000			17,180,000
Earnings per share
Basic	$	0.40		$	0.38		$	0.07	$	0.92		$	0.85
Fully diluted	$	0.40		$	0.37		$	0.07	$	0.92		$	0.85

Pro Forma (C Corp basis):
Income tax expense	$	5,425		$	4,787		$	5,946	$	6,332		$	5,837
Net income	$	9,753		$	9,010		$	10,033	$	10,576		$	9,803
Earnings per share
Basic	$	0.40		$	0.38		$	0.55	$	0.62		$	0.57
Fully diluted	$	0.40		$	0.37		$	0.55	$	0.62		$	0.57

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 3

Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Data)


													Annualized
														Q1 2017			Q1 2017
														-			-
	2017			2016										Q4 2016			Q1 2016
	First Quarter			Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Percent variance			Percent variance
ASSETS
Cash and due from banks	$	53,748		$	50,157		$	51,292	$	52,122	$	51,133		29.04	%		5.11	%
Federal funds sold		18,512			13,037			8,848		13,415		11,662		170.32	%		58.74	%
Interest bearing deposits in financial institutions		57,292			73,133			57,157		23,382		51,766		-87.85	%		10.67	%
Cash and cash equivalents		129,552			136,327			117,297		88,919		114,561		-20.15	%		13.09	%
Investments:
Available-for-sale securities, at fair value		567,886			582,183			553,357		550,307		587,377		-9.96	%		-3.32	%
Federal Home Loan Bank stock, at cost		7,743			7,743			6,528		6,528		6,528		0.00	%		18.61	%
Loans held for sale, at fair value		365,173			507,442			486,601		322,249		233,110		-113.70	%		56.65	%
Loans		1,900,995			1,848,784			1,793,343		1,750,304		1,712,386		11.45	%		11.01	%
Less: allowance for loan losses		22,898			21,747			23,290		23,734		24,431		21.46	%		-6.27	%
Net loans		1,878,097			1,827,037			1,770,053		1,726,570		1,687,955		11.33	%		11.26	%
Premises and equipment, net		66,108			66,651			65,882		65,686		66,530		-3.30	%		-0.63	%
Foreclosed real estate, net		6,811			7,403			8,964		9,902		10,533		-32.43	%		-35.34	%
Interest receivable		7,247			7,241			7,040		6,627		7,293		0.34	%		-0.63	%
Mortgage servicing rights, net		47,593			32,070			46,291		40,382		36,611		196.30	%		30.00	%
Goodwill		46,867			46,867			46,867		46,867		46,867		0.00	%		0.00	%
Core deposit intangible, net		4,171			4,563			5,090		5,616		6,143		-34.84	%		-32.10	%
Other assets		39,211			51,354			73,210		48,305		52,055		-95.90	%		-24.67	%
Total assets	$	3,166,459		$	3,276,881		$	3,187,180	$	2,917,958	$	2,855,563		-13.67	%		10.89	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits
Noninterest-bearing	$	696,112		$	697,072		$	726,248	$	680,165	$	617,663		-0.56	%		12.70	%
Interest-bearing		1,473,535			1,449,382			1,382,981		1,304,606		1,316,289		6.76	%		11.95	%
Savings deposits		142,019			134,077			131,819		129,944		220,401		24.02	%		-35.56	%
Time deposits		389,533			391,031			399,024		399,582		314,780		-1.55	%		23.75	%
Total deposits		2,701,199			2,671,562			2,640,072		2,514,297		2,469,133		4.50	%		9.40	%
Securities sold under agreements to repurchase		18,130			21,561			29,137		29,278		40,389		-64.54	%		-55.11	%
Short-term borrowings		—			150,000			80,000		—		—		-405.56	%		0.00	%
Long-term debt		44,552			44,892			45,291		55,785		56,201		-3.07	%		-20.73	%
Accrued expenses and other liabilities		60,436			58,368			63,572		52,830		36,604		14.37	%		65.11	%
Total liabilities		2,824,317			2,946,383			2,858,072		2,652,190		2,602,327		-16.80	%		8.53	%
Shareholders' equity:
Common stock, $1 par value		24,155			24,108			23,975		17,180		17,180		0.79	%		40.60	%
Additional paid-in capital		214,160			213,480			211,765		94,544		94,544		1.29	%		126.52	%
Retained earnings		104,152			93,784			84,774		143,567		132,092		44.83	%		-21.15	%
Accumulated other comprehensive (loss) income, net		(325	)		(874	)		8,594		10,477		9,420		-254.75	%		-103.45	%
Total shareholders' equity		342,142			330,498			329,108		265,768		253,236		14.29	%		35.11	%
Total liabilities and shareholders' equity	$	3,166,459		$	3,276,881		$	3,187,180	$	2,917,958	$	2,855,563		-13.67	%		10.89	%

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 4

Average Balance, Average Yield Earned and Average Rate Paid
For the Quarters Ended
(Unaudited)


	Three Months Ended									Three Months Ended
		March 31, 2017								December 31, 2016
		Average balances			Interest income/ expense		Average yield/ rate			Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans(1)		$	1,869,951		$	25,001		5.42	%	$	1,811,136		$	24,001		5.27	%
Loans held for sale			381,932			4,046		4.30	%		510,219			4,167		3.25	%
Securities:
Taxable			456,634			2,567		2.28	%		455,275			2,350		2.05	%
Tax-exempt(1)			117,615			1,711		5.90	%		108,230			1,558		5.73	%
Total Securities(1)			574,249			4,278		3.02	%		563,505			3,908		2.76	%
Federal funds sold			14,327			27		0.76	%		10,192			15		0.59	%
Interest-bearing deposits with other financial institutions			82,981			171		0.84	%		60,438			65		0.43	%
FHLB stock			7,743			78		4.09	%		6,931			65		3.73	%
Total interest earning assets(1)			2,931,183			33,601		4.65	%		2,962,421			32,221		4.33	%
Noninterest Earning Assets:
Cash and due from banks			51,614								43,883
Allowance for loan losses			(21,955	)							(23,283	)
Other assets			211,307								223,377
Total noninterest earning assets			240,966								243,977
Total assets		$	3,172,149							$	3,206,398
Interest-bearing liabilities:
Interest bearing deposits:
Time deposits		$	390,212		$	583		0.61	%	$	394,739		$	551		0.56	%
Money market			729,934			785		0.44	%		693,790			662		0.38	%
Negotiable order of withdrawals			718,957			695		0.39	%		679,100			674		0.39	%
Savings deposits			136,627			51		0.15	%		132,016			51		0.15	%
Total interest bearing deposits			1,975,730			2,114		0.43	%		1,899,645			1,938		0.41	%
Other interest-bearing liabilities:
FHLB advances			60,569			191		1.28	%		117,825			258		0.87	%
Other borrowings			18,884			10		0.21	%		25,545			22		0.31	%
Long-term debt			30,930			323		4.24	%		32,609			317		3.89	%
Total other interest-bearing liabilities			110,383			524		1.93	%		175,979			597		1.35	%
Total Interest-bearing liabilities			2,086,113			2,638		0.51	%		2,075,624			2,535		0.49	%
Noninterest bearing liabilities:
Demand deposits			708,612								768,018
Other liabilities			44,246								43,770
Total noninterest-bearing liabilities			752,858								811,788
Total liabilities			2,838,971								2,887,412
Shareholders' equity			333,178								318,986
Total liabilities and shareholders' equity		$	3,172,149							$	3,206,398
Net interest income (1)					$	30,963							$	29,686
Interest rate spread (1)								4.22	%							3.92	%
Net interest margin (1)								4.28	%							3.99	%
Net interest margin (excluding accretion)(1)								4.12	%							3.94	%
Average interest-earning assets to average interest- bearing liabilities								140.5	%							142.7	%
Tax equivalent adjustment					$	712							$	654
Loan yield components:
Contractual interest rate on loans held for
investment (1)					$	21,638		4.69	%				$	21,790		4.79	%
Origination and other loan fee income						1,850		0.40	%					1,868		0.41	%
Accretion on purchased loans						1,160		0.25	%					343		0.08	%
Syndication fee income						353		0.08	%					—		—
Total loan yield					$	25,001		5.42	%				$	24,001		5.27	%

(1) Includes tax equivalent adjustment using combined rate of 39.225%

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 5

Average Balance, Average Yield Earned and Average Rate Paid
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)



	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2016								June 30, 2016								March 31, 2016
	Average balances			Interest income/ expense		Average yield/ rate			Average balances			Interest income/ expense		Average yield/ rate			Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans(1)	$	1,750,300		$	23,633		5.37	%	$	1,736,493		$	24,843		5.75	%	$	1,704,973		$	22,305		5.26	%
Loans held for sale		409,736			2,948		2.86	%		276,943			2,099		3.05	%		250,355			2,054		3.30	%
Securities:
Taxable		454,601			2,426		2.12	%		499,617			2,849		2.29	%		534,000			3,045		2.29	%
Tax-exempt(1)		100,947			1,440		5.67	%		82,368			1,390		6.79	%		70,561			1,160		6.61	%
Total Securities(1)		555,548			3,866		2.77	%		581,985			4,239		2.93	%		604,561			4,205		2.80	%
Federal funds sold		14,748			18		0.49	%		10,745			16		0.60	%		15,066			15		0.40	%
Interest-bearing deposits with other financial institutions		32,262			71		0.88	%		46,594			26		0.22	%		46,519			99		0.86	%
FHLB stock		6,528			65		3.96	%		6,528			66		4.07	%		6,528			66		4.07	%
Total interest earning assets(1)		2,769,122			30,601		4.40	%		2,659,288			31,289		4.73	%		2,628,002			28,744		4.40	%
Noninterest Earning Assets:
Cash and due from banks		46,440								46,646								47,211
Allowance for loan losses		(23,493	)							(24,625	)							(24,480	)
Other assets		223,601								218,765								234,714
Total noninterest earning assets		246,548								240,786								257,445
Total assets	$	3,015,670							$	2,900,074							$	2,885,447
Interest-bearing liabilities:
Interest bearing deposits:
Time deposits	$	400,088		$	575		0.57	%	$	310,744		$	441		0.57	%	$	319,715		$	362		0.46	%
Money market		622,430			650		0.42	%		585,947			446		0.31	%		630,911			534		0.34	%
Negotiable order of withdrawals		683,527			639		0.37	%		717,590			687		0.39	%		656,643			643		0.39	%
Savings deposits		130,864			51		0.16	%		220,639			156		0.28	%		208,629			220		0.42	%
Total interest bearing deposits		1,836,909			1,915		0.41	%		1,834,920			1,730		0.38	%		1,815,898			1,759		0.39	%
Other interest-bearing liabilities:
FHLB advances		58,803			171		1.16	%		36,773			135		1.48	%		43,306			124		1.15	%
Other borrowings		30,515			13		0.17	%		34,041			23		0.27	%		99,779			63		0.25	%
Long-term debt		39,910			289		2.88	%		41,005			434		4.26	%		41,005			353		3.46	%
Total other interest-bearing liabilities		129,228			473		1.46	%		111,819			592		2.13	%		184,090			540		1.18	%
Total Interest-bearing liabilities		1,966,137			2,388		0.48	%		1,946,739			2,322		0.48	%		1,999,988			2,299		0.46	%
Noninterest bearing liabilities:
Demand deposits		738,328								668,295								605,578
Other liabilities		34,656								25,252								33,050
Total noninterest-bearing liabilities		772,984								693,547								638,628
Total liabilities		2,739,121								2,640,286								2,638,616
Shareholders' equity		276,549								259,790								246,831
Total liabilities and shareholders' equity	$	3,015,670							$	2,900,076							$	2,885,447
Net interest income (1)				$	28,213							$	28,967							$	26,445
Interest rate spread (1)							3.98	%							4.36	%							4.00	%
Net interest margin (1)							4.05	%							4.40	%							4.03	%
Net interest margin (excluding accretion)(1)							3.94	%							4.16	%							3.90	%
Average interest-earning assets to average interest-bearing liabilities							140.8	%							136.6	%							131.4	%
Tax equivalent adjustment				$	596							$	609							$	502
Loan yield components:
Contractual interest rate on loans held for
Investment (1)				$	20,513		4.66	%				$	19,927		4.62	%				$	20,116		4.75	%
Origination and other loan fee income					2,306		0.52	%					2,536		0.59	%					1,363		0.32	%
Accretion on purchased loans					814		0.19	%					1,555		0.36	%					826		0.19	%
Syndication fee income					—		—						825		0.19	%					—		—
Total loan yield				$	23,633		5.37	%				$	24,843		5.75	%				$	22,305		5.26	%

(1) Includes tax equivalent adjustment using combined rate of 39.225%

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 6

Segment Data
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)

	2017			2016
	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Banking segment
Net interest income	$	29,856		$	28,959		$	28,142		$	29,217		$	26,014
Provision for loan losses		(257	)		(752	)		71			(789	)		(9	)
Mortgage banking income- retail footprint		5,666			3,202			8,981			7,215			6,144
Other noninterest income		6,007			5,155			7,024			8,223			6,532
Other noninterest mortgage banking expenses		4,836			1,950			6,215			4,072			3,858
Noninterest expense		28,747			26,856			31,785			28,144			25,607
Pre-tax income after allocations	$	13,039		$	12,449		$	12,291		$	17,300		$	13,092
Total assets		2,705,118			2,752,773			2,661,116			2,508,867			2,534,423
Intracompany funding income included in net interest income		3,551			4,081			3,473			2,824			2,259
Core efficiency ratio*		64.41	%		62.57	%		65.22	%		63.06	%		66.72	%
Mortgage segment
Net interest income	$	395		$	40		$	(525	)	$	(859	)	$	(71	)
Provision for loan losses		-			-			-			-			-
Noninterest income		19,414			22,975			27,957			22,918			18,359
Noninterest expense		17,670			22,256			23,744			22,451			15,740
Direct contribution	$	2,139		$	759		$	3,688		$	(392	)	$	2,548
Total assets		461,341			524,108			526,064			409,091			321,140
Intracompany funding charge included
in net interest income		3,551			4,081			3,473			2,824			2,259
Core efficiency ratio*		88.73	%		84.56	%		76.34	%		76.52	%		81.52	%
Interest rate lock commitments
volume during the period
Consumer direct	$	616,330		$	645,896		$	1,019,557		$	883,395		$	787,536
Third party origination (TPO)		258,996			228,982			248,092			240,477			188,101
Retail		282,698			256,812			329,527			313,404			243,936
Correspondent		440,206			331,622			221,562			26,810			-
Total	$	1,598,230		$	1,463,312		$	1,818,738		$	1,464,086		$	1,219,573
Interest rate lock commitments
pipeline (period end)
Consumer direct	$	158,393		$	307,699		$	573,636		$	479,005		$	338,506
Third party origination (TPO)		101,509			79,967			97,353			105,590			83,911
Retail		93,184			77,033			107,419			122,951			91,921
Correspondent		95,923			68,221			72,092			20,392			-
Total	$	449,009		$	532,920		$	850,500		$	727,938		$	514,338
Mortgage closings
Consumer direct	$	537,544		$	779,135		$	686,882		$	579,589		$	419,894
Third party origination (TPO)		182,992			192,668			210,157			171,835			145,040
Retail		67,613			64,910			74,262			64,304			43,730
Retail footprint		162,250			178,583			212,266			174,545			125,770
Reverse		18,114			19,490			20,351			17,008			15,341
Correspondent		378,022			316,465			155,191			4,145			-
Total	$	1,346,535		$	1,551,251		$	1,359,109		$	1,011,426		$	749,775
Gains from origination and sale of
mortgage loans held for sale	$	27,577		$	29,518		$	25,477		$	22,867		$	16,610
Net change in fair value of loans held for sale and derivatives		(4,744	)		(7,092	)		7,800			4,611			5,897
Change in fair value of mortgage servicing rights		(501	)		-			-			-			-
Mortgage servicing income		2,748			3,751			3,661			2,655			1,996
Total mortgage banking
income	$	25,080		$	26,177		$	36,938		$	30,133		$	24,503

*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 a reconciliation and discussion of these non-GAAP measures.

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 7

Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)


	2017		2016
	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Loans by market
Metropolitan	$	1,394,533	$	1,352,181	$	1,296,673	$	1,248,548	$	1,227,944
Community		473,250		465,928		465,946		464,876		457,807
Other		33,212		30,675		30,724		36,880		26,635
Total	$	1,900,995	$	1,848,784	$	1,793,343	$	1,750,304	$	1,712,386
Deposits by market
Metropolitan		1,511,697		1,523,116	$	1,494,267	$	1,380,854	$	1,353,613
Community		1,141,761		1,103,033		1,084,243		1,089,305		1,115,520
Mortgage (1)		47,741		45,413		61,562		44,138		-
Total	$	2,701,199	$	2,671,562	$	2,640,072	$	2,514,297	$	2,469,133

(1) Deposits related to escrow balances from mortgage servicing portfolio

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 8

Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)

	2017			2016
	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Loan portfolio
Commercial and industrial	$	399,333		$	386,233		$	360,816		$	346,381		$	320,499
Construction		267,998			245,905			234,486			216,181			214,536
Residential real estate:
1-to-4 family mortgage		302,166			294,924			286,605			287,989			290,542
Residential line of credit		177,928			177,190			173,898			174,525			171,218
Multi-family mortgage		45,244			44,977			54,129			41,005			59,123
Commercial real estate:
Owner occupied		359,120			357,346			370,326			363,737			361,156
Non-owner occupied		273,716			267,902			237,550			237,252			226,734
Consumer and other		75,490			74,307			75,533			83,234			68,578
Total loans held for investment	$	1,900,995		$	1,848,784		$	1,793,343		$	1,750,304		$	1,712,386

Allowance for loan losses rollforward summary
Allowance for loan losses at the beginning of the period	$	21,747		$	23,290		$	23,734		$	24,431		$	24,460
Charge-off's		(442	)		(1,230	)		(714	)		(654	)		(252	)
Recoveries		1,850			439			199			746			232
Provision for loan losses		(257	)		(752	)		71			(789	)		(9	)
Allowance for loan losses at the end of the period	$	22,898		$	21,747		$	23,290		$	23,734		$	24,431

Allowance for loan losses as a percentage of total loans held for investment		1.20	%		1.18	%		1.30	%		1.36	%		1.43	%

Charge-offs
Commercial and Industrial	$	(169	)	$	(6	)	$	(358	)	$	(196	)	$	(2	)
Construction		(6	)		-			-			(2	)		-
Residential real estate:
1-to-4 family mortgage		(88	)		(5	)		(166	)		(53	)		-
Residential line of credit		-			(28	)		(29	)		(75	)		-
Multi-family mortgage		-			-			-			-			-
Commercial real estate:
Owner occupied		-			(156	)		-			(93	)		-
Non-owner occupied		-			(527	)		-			-			-
Consumer and other		(179	)		(508	)		(161	)		(235	)		(250	)
Total Charge Offs:		(442	)		(1,230	)		(714	)		(654	)		(252	)
Recoveries
Commercial and Industrial		83			44			8			462			10
Construction		29			79			32			64			41
Residential real estate:
1-to-4 family mortgage		1,665			18			2			45			62
Residential line of credit		56			31			36			70			37
Multi-family mortgage		-			-			-			-			-
Commercial real estate:
Owner occupied		4			125			4			5			6
Non-owner occupied		-			168			22			1			4
Consumer and other		13			(26	)		95			99			72
Total Recoveries:		1,850			439			199			746			232
Net recoveries (charge-off's)	$	1,408		$	(791	)	$	(515	)	$	92		$	(20	)

Net recoveries (charge-off's) as a percentage of average total loans		0.31	%		(0.17	%)		(0.12	%)		0.02	%		0.00	%

Loans classified as substandard	$	37,556		$	38,585		$	40,056		$	41,709		$	46,295

Nonperforming assets
Past due 90 days or more and accruing interest	$	1,590		$	1,329		$	1,342		$	1,354		$	1,431
Non-accrual		7,706			8,729			9,622			9,752			10,064
Total nonperforming loans	$	9,296		$	10,058		$	10,964		$	11,106		$	11,495
Other real estate owned		6,811			7,403			8,964			9,902			10,533
Other		1,654			1,654			1,654			1,654			1,654
Total nonperforming assets	$	17,761		$	19,115		$	21,582		$	22,662		$	23,682
Total nonperforming loans as a percentage of loans held for investment		0.49	%		0.54	%		0.61	%		0.63	%		0.67	%
Total nonperforming assets as a percentage of total assets		0.56	%		0.58	%		0.68	%		0.78	%		0.83	%
Total accruing loans over 90 days delinquent as a percentage of total assets		0.05	%		0.04	%		0.04	%		0.05	%		0.05	%
Loans restructured as troubled debt restructurings	$	8,681		$	8,801		$	10,125		$	14,970		$	15,444
Troubled debt restructurings as a percentage of loans held for investment		0.46	%		0.48	%		0.56	%		0.86	%		0.90	%

Note: During the fourth quarter of 2016, the Company realigned certain loan call report codes to better align with financial reporting categories. All periods shown have been amended to reflect this change.

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 9

Capital Ratios
(Unaudited)
(In Thousands, Except %)


Computation of Tangible Common Equity to Tangible Assets:	March 31, 2017			December 31, 2016

Total Equity	$	342,142		$	330,498
Less:
Goodwill		46,867			46,867
Other intangibles		4,171			4,563
Tangible Common Equity	$	291,104		$	279,068

Total Assets	$	3,166,459		$	3,276,881
Less:
Goodwill		46,867			46,867
Other intangibles		4,171			4,563
Tangible Assets	$	3,115,421		$	3,225,451

Total Common Equity to Total Assets		10.81	%		10.09	%
Tangible Common Equity to Tangible Assets*		9.34	%		8.65	%


	March 31, 2017			December 31, 2016
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1 Capital	$	297,671		$	287,146
Tier 1 Capital	$	327,691		$	317,146
Total Capital	$	350,569		$	338,893

Preliminary Regulatory Capital Ratios:
Common Equity Tier 1		11.14	%		11.04	%
Tier 1 Risk-Based		12.42	%		12.19	%
Total Risk-Based		13.28	%		13.03	%
Tier 1 Leverage		10.46	%		10.05	%


*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 a reconciliation and discussion of these non-GAAP measures.

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 10

Investment Portfolio
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)


	2017	2016
Securities available for sale (at fair value)	First Quarter	Fourth Quarter	Third Quarter	Second Quarter	First Quarter
Debt securities
U.S. government agency securities	$ 987	$ 985	$ 2,501	$ 15,510	$ 19,181
Mortgage-backed securities - residential	425,943	443,908	433,564	425,311	472,706
Municipals, tax exempt	120,560	116,923	104,112	96,001	82,043
Treasury securities	11,773	11,757	4,506	4,513	4,506
Total debt securities	559,263	573,573	544,683	541,335	578,436
Equity securities	8,623	8,610	8,674	8,972	8,941
Total securities available-for-sale	$ 567,886	$ 582,183	$ 553,357	$ 550,307	$ 587,377

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 11

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)

	2017			2016
Pro forma core net income	First Quarter			Fourth Quarter			Third Quarter		Second Quarter			First Quarter
Pre-tax net income	$	15,178		$	13,797		$	15,979	$	16,908		$	15,640
Non-core items:
Noninterest income
Less change in fair value on mortgage servicing rights		(501	)		-			-		-			-
Less gain on sale of securities		1			-			416		2,591			1,400
Less gain (loss) on sales or write-downs of foreclosed and other assets		748			(349	)		1,653		(254	)		129
Noninterest expenses
Plus one-time equity grants		-			-			2,960		-			-
Plus variable compensation charge related to cash settled equity awards		635			1,041			213		-			-
Plus merger and conversion		487			-			1,122		1,540			606
Plus (recovery of) impairment of mortgage servicing rights		-			(3,411	)		2,402		4,914			773
Plus loss on sale of mortgage servicing rights		-			4,447			-		-			-
Pre tax core net income	$	16,052		$	16,223		$	20,607	$	21,025		$	15,490
Pro forma core income tax expense		5,768			5,739			7,672		7,874			5,781
Pro forma core net income	$	10,284		$	10,484		$	12,935	$	13,151		$	9,709
Weighted average common shares outstanding fully diluted		24,610,991			24,500,943			18,332,192		17,180,000			17,180,000

Pro forma core diluted earnings per share
Diluted earning per share	$	0.40		$	0.37		$	0.07	$	0.92		$	0.85
Non-core items:
Noninterest income
Less change in fair value on mortgage servicing rights		(0.02	)		-			-		-			-
Less gain on sale of securities		0.00			-			0.02		0.15			0.08
Less (loss) gain on sales or write-downs of foreclosed and other assets		0.03			(0.01	)		0.09		(0.01	)		0.01

Noninterest expenses
Plus one-time equity grants		-			-			0.16		-			-
Plus variable compensation charge related to cash settled equity awards		0.03			0.04			0.01		-			-
Plus merger and conversion		0.02			-			0.06		0.09			0.04
Plus (recovery of) impairment of mortgage servicing rights		-			(0.14	)		0.13		0.29			0.04
Plus loss on sale of mortgage servicing rights		-			0.18			-		-			-
Tax effect		(0.0	)		(0.04	)		0.39		(0.39	)		(0.28	)
Pro forma core diluted earnings per share	$	0.42		$	0.43		$	0.71	$	0.77		$	0.57

	2017		2016
Core efficiency ratio (tax-equivalent basis)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Total noninterest expense	$	46,417		$	47,319		$	55,529		$	50,595		$	41,347
Less one-time equity grants		-			-			2,960			-			-
Less variable compensation charge related to cash settled equity awards		635			1,041			213			-			-
Less merger and conversion expenses		487			-			1,122			1,540			606
Less (recovery of) impairment of mortgage servicing rights		-			(3,411	)		2,402			4,914			773
Less loss on sale of mortgage servicing rights		-			4,447			-			-			-
Core noninterest expense	$	45,295		$	45,242		$	48,832		$	44,141		$	39,968
Net interest income (tax-equivalent basis)		30,963			29,686			28,213			29,090			26,322
Total noninterest income		31,087			31,332			43,962			38,356			31,035
Less change in fair value on mortgage servicing rights		(501	)		-			-			-			-
Less gain on sales or write-downs of foreclosed and other assets		748			(349	)		1,653			(254	)		129
Less gain on sales of securities		1			-			416			2,591			1,400
Core noninterest income		30,839			31,681			41,893			36,019			29,506
Core revenue	$	61,802		$	61,367		$	70,106		$	65,109		$	55,828
Efficiency ratio (GAAP)⁽¹⁾		75.67	%		78.39	%		77.58	%		75.84	%		72.57	%
Core efficiency ratio (tax-equivalent basis)		73.29	%		73.72	%		69.65	%		67.80	%		71.59	%

(1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 12

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)

	2017			2016

Banking segment core efficiency ratio (tax equivalent)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Core noninterest expense	$	45,295		$	45,242		$	48,832		$	44,141		$	39,968
Less Mortgage segment noninterest expense		17,670			22,256			23,744			22,451			15,740
Add (recovery of) impairment of mortgage servicing rights		-			(3,411	)		2,402			4,914			773
Add loss on sale of mortgage servicing rights		-			4,447			-			-			-
Adjusted Banking segment noninterest expense		27,625			24,022			27,490			26,604			25,001
Adjusted core revenue		61,802			61,367			70,106			65,109			55,828
Less Mortgage segment noninterest income		19,414			22,975			27,957			22,918			18,359
Less change in fair value on mortgage servicing rights		(501	)		-			-			-			-
Adjusted Banking segment total revenue	$	42,889		$	38,392		$	42,149		$	42,191		$	37,469
Banking segment core efficiency ratio (tax-equivalent basis)		64.41	%		62.57	%		65.22	%		63.06	%		66.72	%

Mortgage segment core efficiency ratio (tax equivalent)
Noninterest expense	$	46,417		$	47,319		$	55,529		$	50,595		$	41,347
Less impairment of mortgage servicing rights		-			(3,411	)		2,402			4,914			773
Less loss on sale of mortgage servicing rights		-			4,447			-			-			-
Less Banking segment noninterest expense		28,747			26,856			31,785			28,144			25,607
Adjusted Mortgage segment noninterest expense	$	17,670		$	19,427		$	21,342		$	17,537		$	14,967
Total noninterest income		31,087			31,332			43,962			38,356			31,035
Less Banking segment noninterest income		11,673			8,357			16,005			15,438			12,676
Less change in fair value on mortgage servicing rights		(501	)		-			-			-			-
Adjusted Mortgage segment total revenue	$	19,915		$	22,975		$	27,957		$	22,918		$	18,359
Mortgage segment core efficiency ratio (tax-equivalent basis)		88.73	%		84.56	%		76.34	%		76.52	%		81.52	%


		2017			2016

Tangible assets and equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Tangible Assets
Total assets	$	3,166,459		$	3,276,881		$	3,187,180		$	2,917,958		$	2,855,563
Less goodwill		46,867			46,867			46,867			46,867			46,867
Less core deposit intangibles		4,171			4,563			5,090			5,616			6,143
Tangible assets	$	3,115,421		$	3,255,451		$	3,135,223		$	2,865,475		$	2,802,553
Tangible Common Equity
Total shareholders' equity	$	342,142		$	330,498		$	329,108		$	265,768		$	253,236
Less goodwill		46,867			46,867			46,867			46,867			46,867
Less core deposit intangibles		4,171			4,563			5,090			5,616			6,143
Tangible common equity	$	291,104		$	279,068		$	277,151		$	213,285		$	200,226
Common shares outstanding		24,154,323			24,107,660			23,975,122			17,180,000			17,180,000
Book value per common share	$	14.16		$	13.71		$	13.73		$	15.47		$	14.74
Tangible book value per common share	$	12.05		$	11.58		$	11.56		$	12.41		$	11.65
Total shareholders' equity to total assets		10.81	%		10.09	%		10.33	%		9.11	%		8.87	%
Tangible common equity to tangible assets		9.34	%		8.65	%		8.84	%		7.44	%		7.14	%
Net income	$	9,753		$	9,010		$	1,207		$	15,775		$	14,599
Return on tangible common equity		13.59	%		12.84	%		1.73	%		29.75	%		29.33	%

	2017			2016

Return on average tangible common equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Total average shareholders' equity	$	333,178		$	318,986		$	276,549		$	259,790		$	246,831
Less average goodwill		46,839			46,839			46,839			46,839			46,868
Less average core deposit intangibles		4,353			4,694			5,402			5,912			6,487
Average tangible common equity	$	281,986		$	267,453		$	224,308		$	207,039		$	193,476
Net income	$	9,753		$	9,010		$	1,207		$	15,775		$	14,599
Return on average tangible common equity		14.03	%		13.40	%		2.14	%		30.64	%		30.35	%


		2017			2016
Pro forma return on average tangible common equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Average tangible common equity	$	281,986		$	267,453		$	224,308		$	207,039		$	193,476
Pro forma net income	$	9,753		$	9,010		$	10,033		$	10,576		$	9,803
Pro forma return on average tangible common equity		14.03	%		13.40	%		17.79	%		20.55	%		20.38	%

FB Financial Corporation

First Quarter 2017

Supplemental Financial Information

Page 13

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data)


	2017			2016
Pro forma core return on average tangible equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Pre-tax pro forma net income	$	15,178		$	13,797		$	15,979		$	16,908		$	15,640
Adjustments:
Add non-core items		874			2,426			4,628			4,117			(150	)
Less pro forma core income tax expense		5,768			5,739			7,672			7,874			5,781
Pro forma core net income	$	10,284		$	10,484		$	12,935		$	13,151		$	9,709
Pro forma core return on average tangible common equity		14.79	%		15.60	%		22.94	%		25.55	%		20.18	%

	2017				2016
Pro forma core return on average assets and equity	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Net income	$	9,753		$	9,010		$	1,207		$	15,775		$	14,599
Average assets		3,172,149			3,206,398			3,015,670			2,900,074			2,885,447
Average equity		333,178			318,986			276,549			259,790			246,831
Return on average assets		1.25	%		1.12	%		0.16	%		2.19	%		2.03	%
Return on average equity		11.87	%		11.24	%		1.74	%		24.42	%		23.79	%
Pro forma core net income		10,284			10,484			12,935			13,151			9,709
Pro forma core return on average assets		1.31	%		1.30	%		1.71	%		1.82	%		1.35	%
Pro forma core return on average equity		12.52	%		13.08	%		18.61	%		20.36	%		15.82	%


	2017				2016
Pro forma core total revenue	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Net interest income	$	30,251		$	29,032		$	27,617		$	28,358		$	25,943
Noninterest income		31,087			31,332			43,962			38,356			31,035
Less adjustments:
Change in fair value of mortgage servicing rights		(501	)		-			-			-			-
Gain on sale of securities		1			-			416			2,591			1,400
(Loss) gain on sales or write-downs of foreclosed and other assets		748			(349	)		1,653			(254	)		129
Pro forma core total revenue	$	61,090		$	60,713		$	69,510		$	64,377		$	55,449


	2017				2016
Core deposits	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Total deposits	$	2,701,199		$	2,671,562		$	2,640,072		$	2,514,297		$	2,469,133
Less jumbo time deposits		62,669			60,124			64,275			58,999			52,044
Core deposits	$	2,638,530		$	2,611,438		$	2,575,797		$	2,455,298		$	2,417,089

FB Financial Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 24, 2017

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