FB Financial Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - January 22, 2018

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Exhibit 99.2
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 1
 
Financial Summary and Key Metrics   
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
 
   
2017 
  
2016
   
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Statement of Income Data
                              
Total interest income
  
$
55,031
    
$
48,415
    
$
33,278
    
$
32,889
    
$
31,567
  
Total interest expense
    
6,048
      
4,805
      
2,851
      
2,638
      
2,535
  
Net interest income
    
48,983
      
43,610
      
30,427
      
30,251
      
29,032
  
Provision for loan losses
    
956
      
(784
)
    
(865
)
    
(257
)
    
(752
)
Total noninterest income
    
37,017
      
37,820
      
35,657
      
31,087
      
31,332
  
Total noninterest expense
    
57,540
      
69,224
      
49,136
      
46,417
      
47,319
  
Net income before income taxes
    
27,504
      
12,990
      
17,813
      
15,178
      
13,797
  
Income tax expense
    
4,486
      
4,602
      
6,574
      
5,425
      
4,787
  
Net income
  
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
  
Net interest income (tax—equivalent basis)
  
$
49,692
    
$
44,281
    
$
31,158
    
$
30,963
    
$
29,686
  
Core net income*
  
$
18,677
    
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
  
Per Common Share
                                        
Diluted net income
  
$
0.74
    
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
  
Core net income - diluted*
    
0.60
      
0.60
      
0.49
      
0.42
      
0.43
  
Book value
    
19.54
      
18.76
      
17.59
      
14.16
      
13.71
  
Tangible book value*
    
14.56
      
13.79
      
15.83
      
12.05
      
11.58
  
Weighted average number of shares-diluted
    
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
  
Period-end number of shares
    
30,535,517
      
30,526,592
      
28,968,160
      
24,154,323
      
24,107,660
  
Selected Balance Sheet Data
                                        
Cash and due from banks
  
$
29,831
    
$
67,070
    
$
59,112
    
$
53,748
    
$
50,157
  
Loans held for investment
    
3,166,911
      
3,114,562
      
1,970,974
      
1,900,995
      
1,848,784
  
Allowance for loan losses
    
(24,041
)
    
(23,482
)
    
(23,247
)
    
(22,898
)
    
(21,747
)
Loans held for sale
    
526,185
      
466,369
      
427,416
      
365,173
      
507,442
  
Available-for-sale securities, fair value
    
543,992
      
543,282
      
553,357
      
567,886
      
582,183
  
Other real estate owned, net
    
16,442
      
13,812
      
6,370
      
6,811
      
7,403
  
Total assets
    
4,727,713
      
4,581,943
      
3,346,570
      
3,166,459
      
3,276,881
  
Customer deposits
    
3,578,694
      
3,614,220
      
2,726,060
      
2,699,868
      
2,670,031
  
Brokered and internet time deposits
    
85,701
      
104,318
      
1,533
      
1,331
      
1,531
  
Total deposits
    
3,664,395
      
3,718,538
      
2,727,593
      
2,701,199
      
2,671,562
  
Borrowings
    
333,302
      
196,299
      
43,790
      
44,552
      
194,892
  
Total shareholders' equity
    
596,729
      
572,528
      
509,517
      
342,142
      
330,498
  
Selected Ratios
                                        
Return on average:
                                        
Assets
    
1.96
%
    
0.80
%
    
1.40
%
    
1.25
%
    
1.12
%
Shareholders' equity
    
15.78
%
    
6.05
%
    
11.30
%
    
11.87
%
    
11.24
%
Tangible common equity*
    
21.38
%
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
Average shareholders' equity to average assets
    
12.41
%
    
13.22
%
    
12.37
%
    
10.50
%
    
9.95
%
Net interest margin (NIM) (tax-equivalent basis)
    
4.63
%
    
4.61
%
    
4.19
%
    
4.28
%
    
3.99
%
Net interest margin excluding accretion and nonaccrual interest collections (tax-equivalent basis) (a)
    
4.35
%
    
4.33
%
    
4.03
%
    
4.04
%
    
3.90
%
Efficiency ratio (GAAP)
    
66.91
%
    
85.01
%
    
74.35
%
    
75.67
%
    
78.39
%
Core efficiency ratio (tax-equivalent basis)*
    
63.55
%
    
64.43
%
    
70.18
%
    
73.29
%
    
73.72
%
Loans held for investment to deposit ratio
    
86.42
%
    
83.76
%
    
72.26
%
    
70.38
%
    
69.20
%
Total loans to deposit ratio
    
100.78
%
    
96.30
%
    
87.93
%
    
83.89
%
    
88.20
%
Yield on interest-earning assets
    
5.20
%
    
5.10
%
    
4.57
%
    
4.65
%
    
4.33
%
Cost of interest-bearing liabilities
    
0.79
%
    
0.71
%
    
0.55
%
    
0.51
%
    
0.49
%
Cost of total deposits
    
0.50
%
    
0.46
%
    
0.34
%
    
0.32
%
    
0.29
%
Credit Quality Ratios
                                        
Allowance for loan losses as a percentage of loans held for investment
    
0.76
%
    
0.75
%
    
1.18
%
    
1.20
%
    
1.18
%
Net (charge-off's) recoveries as a percentage of average loans
                                        
held for investment
    
(0.05
)%
    
0.15
%
    
0.25
%
    
0.31
%
    
(0.17
)%
Nonperforming loans held for investment as a percentage of total loans
                                        
held for investments
    
0.32
%
    
0.29
%
    
0.50
%
    
0.49
%
    
0.57
%
Nonperforming assets as a percentage of total assets (b)
    
1.52
%
    
0.88
%
    
0.58
%
    
0.56
%
    
0.58
%
Preliminary capital ratios (Consolidated)
                                        
Shareholders' equity to assets
    
12.62
%
    
12.50
%
    
15.23
%
    
10.81
%
    
10.09
%
Tangible common equity to tangible assets*
    
9.72
%
    
9.50
%
    
13.92
%
    
9.34
%
    
8.65
%
Tier 1 capital (to average assets)
    
10.46
%
    
11.35
%
    
15.54
%
    
10.46
%
    
10.05
%
Tier 1 capital (to risk-weighted assets)
    
11.43
%
    
11.58
%
    
18.28
%
    
12.87
%
    
12.19
%
Total capital (to risk-weighted assets)
    
12.01
%
    
12.18
%
    
19.14
%
    
13.76
%
    
13.03
%
Common Equity Tier 1 (to risk-weighted assets) (CET1)
    
10.70
%
    
10.82
%
    
17.16
%
    
11.69
%
    
11.04
%
                                         
*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 discussion of non-GAAP measures included in the corresponding earnings release.
  
(a) Excludes accretion from acquired/purchased loans and collection of intererest income on nonaccrual loans.
  
(b) Includes marketable equity securities received in satisfaction of previously charged-off loan, excess land and facilities held for sale, and GNMA loans subject to ability to repurchase.
  
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 2
 
Consolidated Statements of Income
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
 
           
Q4 2017  
  
Q4 2017  
            vs.   vs.
   
2017     
  
2016
  
Q3 2017 
  
Q4 2016 
   
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
  
Percent
variance
  
Percent
variance
Interest income:
                                          
Interest and fees on loans
  
$
51,246
    
$
44,367
    
$
29,350
    
$
29,006
    
$
28,125
    
15.50
%
  
82.21
%
Interest on securities
                                                    
Taxable
    
2,529
      
2,399
      
2,589
      
2,567
      
2,350
    
5.42
%
  
7.62
%
Tax-exempt
    
910
      
988
      
1,068
      
1,040
      
947
    
-7.89
%
  
-3.91
%
Other
    
346
      
661
      
271
      
276
      
145
    
-47.66
%
  
138.62
%
Total interest income
    
55,031
      
48,415
      
33,278
      
32,889
      
31,567
    
13.67
%
  
74.33
%
Interest expense:
                                                    
Deposits
                                                    
Demand and savings accounts
    
3,209
      
2,829
      
1,703
      
1,531
      
1,387
    
13.43
%
  
131.36
%
Time deposits
    
1,447
      
1,125
      
604
      
583
      
551
    
28.62
%
  
162.61
%
Short-term borrowings
    
11
      
9
      
12
      
10
      
20
    
22.22
%
  
-45.00
%
Long-term debt
    
1,381
      
842
      
532
      
514
      
577
    
64.01
%
  
139.34
%
Total interest expense
    
6,048
      
4,805
      
2,851
      
2,638
      
2,535
    
25.87
%
  
138.58
%
Net interest income
    
48,983
      
43,610
      
30,427
      
30,251
      
29,032
    
12.32
%
  
68.72
%
Provision for loan losses
    
956
      
(784
)
    
(865
)
    
(257
)
    
(752
)
  
-221.94
%
  
-227.13
%
Net interest income after provision for loan losses
    
48,027
      
44,394
      
31,292
      
30,508
      
29,784
    
8.18
%
  
61.25
%
Noninterest income:
                                                    
Mortgage banking income
    
30,280
      
31,334
      
30,239
      
25,080
      
26,177
    
-3.36
%
  
15.67
%
Service charges on deposit accounts
    
2,181
      
2,044
      
1,796
      
1,766
      
1,880
    
6.70
%
  
16.01
%
ATM and interchange fees
    
2,430
      
2,222
      
2,085
      
2,047
      
2,035
    
9.36
%
  
19.41
%
Investment services and trust income
    
1,154
      
1,078
      
903
      
814
      
829
    
7.05
%
  
39.20
%
Gain from securities, net
    
1
      
254
      
29
      
1
      
-
    
-99.61
%
  
100.00
%
(Loss) gain on sales or write-downs of other real estate owned
    
(72
)
    
(368
)
    
23
      
748
      
(222
)
  
-80.43
%
  
-67.57
%
Gain (loss) from other assets
    
(314
)
    
54
      
39
      
-
      
(127
)
  
-681.48
%
  
147.24
%
Other income
    
1,357
      
1,202
      
543
      
631
      
760
    
12.90
%
  
78.55
%
Total noninterest income
    
37,017
      
37,820
      
35,657
      
31,087
      
31,332
    
-2.12
%
  
18.14
%
Total revenue
    
86,000
      
81,430
      
66,084
      
61,338
      
60,364
    
5.61
%
  
42.47
%
Noninterest expenses:
                                                    
Salaries, commissions and employee benefits
    
35,771
      
34,795
      
30,783
      
29,006
      
29,506
    
2.81
%
  
21.23
%
Occupancy and equipment expense
    
3,881
      
3,539
      
3,307
      
3,109
      
3,044
    
9.66
%
  
27.50
%
Legal and professional fees
    
1,764
      
1,512
      
1,033
      
1,428
      
810
    
16.67
%
  
117.78
%
Data processing
    
1,766
      
1,761
      
1,460
      
1,501
      
1,490
    
0.28
%
  
18.52
%
Merger and conversion
    
2,069
      
15,711
      
767
      
487
      
-
    
-86.83
%
  
100.00
%
Amortization of intangibles
    
922
      
558
      
123
      
392
      
527
    
65.23
%
  
74.95
%
Amortization of mortgage servicing rights
    
-
      
-
      
-
      
-
      
2,100
    
0.00
%
  
-100.00
%
(Recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(3,411
)
  
0.00
%
  
-100.00
%
Loss on sale of mortgage servicing rights
    
-
      
-
      
249
      
-
      
4,447
    
0.00
%
  
0.00
%
Regulatory fees and deposit insurance assessments
    
571
      
549
      
494
      
435
      
471
    
4.01
%
  
21.23
%
Software license and maintenance fees
    
529
      
523
      
364
      
457
      
513
    
1.15
%
  
3.12
%
Advertising
    
3,189
      
3,493
      
3,343
      
2,932
      
2,537
    
-8.70
%
  
25.70
%
Other expense
    
7,078
      
6,783
      
7,213
      
6,670
      
5,285
    
4.35
%
  
33.93
%
Total noninterest expense
    
57,540
      
69,224
      
49,136
      
46,417
      
47,319
    
-16.88
%
  
21.60
%
Net income before income taxes
    
27,504
      
12,990
      
17,813
      
15,178
      
13,797
    
111.73
%
  
99.35
%
Income tax expense
    
4,486
      
4,602
      
6,574
      
5,425
      
4,787
    
-2.52
%
  
-6.29
%
Net income
  
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
    
174.42
%
  
155.47
%
Weighted average common shares outstanding:
                                                    
Basic
    
30,527,234
      
30,004,952
      
25,741,968
      
24,138,437
      
23,977,028
              
Fully diluted
    
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
              
Earnings per share
                                                    
Basic
  
$
0.75
    
$
0.28
    
$
0.44
    
$
0.40
    
$
0.38
              
Fully diluted
    
0.74
      
0.27
      
0.43
      
0.40
      
0.37
              
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 3
 
Consolidated Statements of Income
  
(Unaudited)
  
(In Thousands, Except Share Data and %)
  
 
   
For the year ended
      
   
December 31,
     
   
2017
  
2016
  
Percent
variance
Interest income:
                  
Interest and fees on loans
  
$
153,969
    
$
105,865
      
45.44
%
Interest on securities
                        
Taxable
    
10,084
      
10,646
      
-5.28
%
Tax-exempt
    
4,006
      
3,372
      
18.80
%
Other
    
1,554
      
611
      
154.34
%
Total interest income
    
169,613
      
120,494
      
40.76
%
Interest expense:
                        
Deposits
                        
Demand and savings accounts
    
9,272
      
5,413
      
71.29
%
Time deposits
    
3,759
      
1,929
      
94.87
%
Short-term borrowings
    
42
      
121
      
-65.29
%
Long-term debt
    
3,269
      
2,081
      
57.09
%
Total interest expense
    
16,342
      
9,544
      
71.23
%
Net interest income
    
153,271
      
110,950
      
38.14
%
Provision for loan losses
    
(950
)
    
(1,479
)
    
-35.77
%
Net interest income after provision for loan losses
    
154,221
      
112,429
      
37.17
%
Noninterest income:
                        
Mortgage banking income
    
116,933
      
117,751
      
-0.69
%
Service charges on deposit accounts
    
7,787
      
8,009
      
-2.77
%
ATM and interchange fees
    
8,784
      
7,791
      
12.75
%
Investment services and trust income
    
3,949
      
3,337
      
18.34
%
Gain from securities, net
    
285
      
4,407
      
-93.53
%
Gain on sales or write-downs of other real estate owned
    
774
      
1,282
      
-39.63
%
Gain (loss) on other assets
    
(664
)
    
(103
)
    
544.66
%
Other income
    
3,733
      
2,211
      
68.84
%
Total noninterest income
    
141,581
      
144,685
      
-2.15
%
Total revenue
    
294,852
      
255,635
      
15.34
%
Noninterest expenses:
                        
Salaries, commissions and employee benefits
    
130,355
      
113,992
      
14.35
%
Occupancy and equipment expense
    
13,836
      
12,611
      
9.71
%
Legal and professional fees
    
5,737
      
3,514
      
63.26
%
Data processing
    
6,488
      
4,181
      
55.18
%
Merger and conversion
    
19,034
      
3,268
      
482.44
%
Amortization of intangibles
    
1,995
      
2,132
      
-6.43
%
Amortization of mortgage servicing rights
    
-
      
8,321
      
-100.00
%
Impairment of mortgage servicing rights
    
-
      
4,678
      
-100.00
%
Loss on sale of mortgage servicing rights
            
4,447
      
100.00
%
Regulatory fees and deposit insurance assessments
    
2,049
      
1,952
      
4.97
%
Software license and maintenance fees
    
1,873
      
2,874
      
-34.83
%
Advertising
    
12,957
      
10,608
      
22.14
%
Other expense
    
27,744
      
22,212
      
24.91
%
Total noninterest expense
    
222,317
      
194,790
      
14.13
%
Net income before income taxes
    
73,485
      
62,324
      
17.91
%
Income tax expense
    
21,087
      
21,733
      
-2.97
%
Net income
  
$
52,398
    
$
40,591
      
29.09
%
Weighted average common shares outstanding:
                        
Basic
    
27,627,228
      
19,165,182
          
Fully diluted
    
28,207,602
      
19,312,174
          
Earnings per share
                        
Basic
  
$
1.90
    
$
2.12
          
Fully diluted
    
1.86
      
2.10
          
                         
Pro Forma (C-Corporations basis):
                        
Income tax expense
  
$
21,087
    
$
22,902
      
-7.93
%
Net income
  
$
52,398
    
$
39,422
      
32.92
%
Earnings per share
                        
Basic
  
$
1.90
    
$
2.06
          
Fully diluted
    
1.86
      
2.04
          
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 4
 
Consolidated Balance Sheets
  
(Unaudited)
  
(In Thousands, %)
  
 
                                 
Annualized
     
                                 
Q4 2017 
  
Q4 2017 
                                 
vs.
  
vs.
   
2017
  
2016
  
Q3 2017 
  
Q4 2016 
   
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
  
Percent
variance
  
Percent
variance
ASSETS
                                          
Cash and due from banks
  
$
29,831
    
$
67,070
    
$
59,112
    
$
53,748
    
$
50,157
    
-220.28
%
  
-40.52
%
Federal funds sold
    
66,127
      
4,470
      
16,238
      
18,512
      
13,037
    
5472.43
%
  
407.23
%
Interest bearing deposits in financial institutions
    
23,793
      
25,625
      
110,928
      
57,292
      
73,133
    
-28.36
%
  
-67.47
%
Cash and cash equivalents
    
119,751
      
97,165
      
186,278
      
129,552
      
136,327
    
92.22
%
  
-12.16
%
Investments:
                                                    
Available-for-sale securities, at fair value
    
543,992
      
543,282
      
553,357
      
567,886
      
582,183
    
0.52
%
  
-6.56
%
Federal Home Loan Bank stock, at cost
    
11,412
      
11,152
      
7,743
      
7,743
      
7,743
    
9.25
%
  
47.38
%
Loans held for sale, at fair value
    
526,185
      
466,369
      
427,416
      
365,173
      
507,442
    
50.89
%
  
3.69
%
Loans
    
3,166,911
      
3,114,562
      
1,970,974
      
1,900,995
      
1,848,784
    
6.67
%
  
71.30
%
Less: allowance for loan losses
    
24,041
      
23,482
      
23,247
      
22,898
      
21,747
    
9.44
%
  
10.55
%
Net loans
    
3,142,870
      
3,091,080
      
1,947,727
      
1,878,097
      
1,827,037
    
6.65
%
  
72.02
%
Premises and equipment, net
    
81,577
      
85,550
      
66,392
      
66,108
      
66,651
    
-18.42
%
  
22.39
%
Other real estate owned, net
    
16,442
      
13,812
      
6,370
      
6,811
      
7,403
    
75.54
%
  
122.10
%
Interest receivable
    
13,069
      
11,218
      
7,012
      
7,247
      
7,241
    
65.46
%
  
80.49
%
Mortgage servicing rights, net
    
76,107
      
63,046
      
48,464
      
47,593
      
32,070
    
82.19
%
  
137.32
%
Goodwill
    
137,190
      
138,910
      
46,867
      
46,867
      
46,867
    
-4.91
%
  
192.72
%
Intangible, net
    
14,902
      
12,550
      
4,048
      
4,171
      
4,563
    
74.35
%
  
226.58
%
Other assets
    
44,216
      
47,809
      
44,896
      
39,211
      
51,354
    
-29.82
%
  
-13.90
%
Total assets
  
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
    
12.62
%
  
44.27
%
LIABILITIES AND SHAREHOLDERS' EQUITY
                                              
Liabilities:
                                                    
Demand deposits
                                                    
Noninterest-bearing
  
$
888,200
    
$
924,773
    
$
715,391
    
$
696,112
    
$
697,072
    
-15.69
%
  
27.42
%
Interest-bearing
    
1,909,546
      
1,948,600
      
1,471,650
      
1,473,535
      
1,449,382
    
-7.95
%
  
31.75
%
Savings deposits
    
178,320
      
177,949
      
143,951
      
142,019
      
134,077
    
0.83
%
  
33.00
%
Customer time deposits
    
602,628
      
562,898
      
395,068
      
388,202
      
389,500
    
28.00
%
  
54.72
%
Brokered and internet time deposits
    
85,701
      
104,318
      
1,533
      
1,331
      
1,531
    
-70.80
%
  
5497.71
%
    Total time deposits
    
688,329
      
667,216
      
396,601
      
389,533
      
391,031
    
12.55
%
  
76.03
%
Total deposits
    
3,664,395
      
3,718,538
      
2,727,593
      
2,701,199
      
2,671,562
    
-5.78
%
  
37.16
%
Securities sold under agreements to repurchase
    
14,293
      
14,556
      
16,343
      
18,130
      
21,561
    
-7.17
%
  
-33.71
%
Short-term borrowings
    
190,000
      
52,766
      
—
      
—
      
150,000
    
1031.84
%
  
26.67
%
Long-term debt
    
143,302
      
143,533
      
43,790
      
44,552
      
44,892
    
-0.64
%
  
219.22
%
Accrued expenses and other liabilities
    
118,994
      
80,022
      
49,327
      
60,436
      
58,368
    
193.22
%
  
103.87
%
Total liabilities
    
4,130,984
      
4,009,415
      
2,837,053
      
2,824,317
      
2,946,383
    
12.03
%
  
40.21
%
Shareholders' equity:
                                                    
Common stock, $1 par value
    
30,536
      
30,527
      
28,968
      
24,155
      
24,108
    
0.12
%
  
26.66
%
Additional paid-in capital
    
418,596
      
416,651
      
363,870
      
214,160
      
213,480
    
1.85
%
  
96.08
%
Retained earnings
    
146,797
      
123,779
      
115,391
      
104,152
      
93,784
    
73.78
%
  
56.53
%
Accumulated other comprehensive income (loss), net
    
800
      
1,571
      
1,288
      
(325
)
    
(874
)
  
-194.71
%
  
-191.53
%
Total shareholders' equity
    
596,729
      
572,528
      
509,517
      
342,142
      
330,498
    
16.77
%
  
80.55
%
Total liabilities and shareholders' equity
  
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
    
12.62
%
  
44.27
%
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 5
 
Net Assets Acquired from the Clayton Banks
  
As of July 31, 2017
  
(Unaudited)
  
(In Thousands)
  
 
                   
        
Fair Value
  
As Recorded by
   
Combined Clayton Banks
  
Adjustments
  
FB Financial Corporation
Assets
                  
Cash and cash equivalents
  
$
49,059
    
$
-
    
$
49,059
  
Investment securities (a)
    
59,108
      
385
      
59,493
  
FHLB stock
    
3,408
      
-
      
3,408
  
Loans
    
1,075,441
      
(15,713
)  (b)
    
1,059,728
  
Allowance for loan losses
    
(19,985
)
    
19,985
      
-
  
Premises and Equipment
    
15,011
      
3,855
      
18,866
  
Other real estate owned
    
5,880
      
644
      
6,524
  
Goodwill
    
8,425
      
(8,425
)
    
-
  
Intangibles, net
    
-
      
12,335
   (c)
    
12,335
  
Other assets
    
7,263
      
(920
)
    
6,343
  
Total Assets
  
$
1,203,610
    
$
12,146
    
$
1,215,756
  
                         
Liabilities
                        
Interest-bearing deposits
    
669,745
      
309
      
670,054
  
Non-interest bearing deposits
    
309,464
      
-
      
309,464
  
Borrowings (d)
    
84,110
      
721
      
84,831
  
Accrued expenses and other liabilities
    
4,578
      
668
      
5,246
  
Total Liabilities
  
$
1,067,897
    
$
1,698
    
$
1,069,595
  
Net assets acquired
  
$
135,713
    
$
10,448
    
$
146,161
  
                         
Purchase Price:
                        
Common shares issued
    
1,521,200
                  
Price per share as of July 31, 2017
  
$
34.37
                  
Common stock consideration
            
52,284
          
Cash consideration
            
184,200
          
Total consideration paid
          
$
236,484
          
                         
Allocation of purchase price:
                        
Fair value of net assets assumed including identifiable intangible assets
            
146,161
          
Goodwill
            
90,323
          
Total consideration paid
          
$
236,484
          
Note: the above purchase price allocation and purchase accounting adjustments are preliminary and subject to change during the measurement period as allowed under ASC 805- Business Combinations.
  
(a) Liquidated prior to September 30, 2017.  
(b) Includes credit and liquidity mark of $26.8 million and reversal of existing loan discount and other yield adjustments of $11.1 million.  
(c) Includes core deposit intangible of $9.6 million, servicing and trust customer relationship intangibles of $2.7 million and lease intangible of $0.6 million.  
(d) Paid off prior to September 30, 2017.  
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 6
 
Average Balance, Average Yield Earned and Average Rate Paid
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
 
   
Three Months Ended
  
Three Months Ended
   
December 31, 2017
  
September 30, 2017
   
Average
balances 
  
Interest
income/
expense
  
Average
yield/
rate
  
Average
balances 
  
Interest
income/
expense
  
Average
yield/
rate
Interest-earning assets:
                                    
Loans(1)
  
$
3,138,245
    
$
46,503
      
5.88
%
  
$
2,705,265
    
$
40,242
      
5.90
%
Loans held for sale
    
493,073
      
4,856
      
3.91
%
    
410,434
      
4,167
      
4.03
%
Securities:
                                                
Taxable
    
442,351
      
2,529
      
2.27
%
    
425,281
      
2,399
      
2.24
%
Tax-exempt(1)
    
108,000
      
1,506
      
5.53
%
    
117,429
      
1,617
      
5.46
%
Total Securities(1)
    
550,351
      
4,035
      
2.91
%
    
542,710
      
4,016
      
2.94
%
Federal funds sold
    
18,227
      
14
      
0.30
%
    
39,363
      
76
      
0.77
%
Interest-bearing deposits with other financial institutions
    
42,693
      
177
      
1.64
%
    
108,185
      
448
      
1.64
%
FHLB stock
    
11,160
      
155
      
5.51
%
    
8,892
      
137
      
6.11
%
Total interest earning assets(1)
    
4,253,749
      
55,740
      
5.20
%
    
3,814,849
      
49,086
      
5.10
%
Noninterest Earning Assets:
                                                
Cash and due from banks
    
57,406
                      
55,485
                  
Allowance for loan losses
    
(23,470
)
                    
(23,875
)
                
Other assets
    
376,984
                      
316,019
                  
Total noninterest earning assets
    
410,920
                      
347,629
                  
Total assets
  
$
4,664,669
                    
$
4,162,478
                  
Interest-bearing liabilities:
                                                
Interest bearing deposits:
                                                
Customer time deposits
  
$
577,003
    
$
1,067
      
0.73
%
  
$
493,992
    
$
825
      
0.66
%
Broker and internet time deposits
    
95,480
      
380
      
1.58
%
    
95,207
      
300
      
1.25
%
Time deposits
  
$
672,483
    
$
1,447
      
0.85
%
  
$
589,199
    
$
1,125
      
0.76
%
Money market
    
1,071,194
      
1,991
      
0.74
%
    
1,023,612
      
1,722
      
0.67
%
Negotiable order of withdrawals
    
832,030
      
1,146
      
0.55
%
    
788,238
      
1,040
      
0.52
%
Savings deposits
    
178,574
      
72
      
0.16
%
    
166,184
      
67
      
0.16
%
Total interest bearing deposits
    
2,754,281
      
4,656
      
0.67
%
    
2,567,233
      
3,954
      
0.61
%
Other interest-bearing liabilities:
                                                
FHLB advances
    
241,307
      
967
      
1.59
%
    
86,795
      
428
      
1.96
%
Other borrowings
    
15,883
      
11
      
0.27
%
    
15,828
      
9
      
0.23
%
Long-term debt
    
30,930
      
414
      
5.31
%
    
30,930
      
414
      
5.31
%
Total other interest-bearing liabilities
    
288,120
      
1,392
      
1.92
%
    
133,553
      
851
      
2.52
%
Total Interest-bearing liabilities
    
3,042,401
      
6,048
      
0.79
%
    
2,700,786
      
4,805
      
0.71
%
Noninterest bearing liabilities:
                                                
Demand deposits
    
964,030
                      
871,973
                  
Other liabilities
    
79,382
                      
39,310
                  
Total noninterest-bearing liabilities
    
1,043,412
                      
911,283
                  
Total liabilities
    
4,085,813
                      
3,612,069
                  
Shareholders' equity
    
578,856
                      
550,409
                  
Total liabilities and shareholders' equity
  
$
4,664,669
                    
$
4,162,478
                  
Net interest income  (1)
          
$
49,692
                    
$
44,281
          
Interest rate spread (1)
                    
4.53
%
                    
4.49
%
Net interest margin (1)
                    
4.63
%
                    
4.61
%
Net interest margin (excluding accretion and nonaccrual interest collections)(1)
                    
4.35
%
                    
4.33
%
Average interest-earning assets to average interest-bearing liabilities
                    
139.8
%
                    
141.2
%
Tax equivalent adjustment
          
$
709
                    
$
671
          
Loan yield components:
                                                
Contractual interest rate on loans held for
                                                
investment (1)
          
$
41,087
      
5.20
%
          
$
34,634
      
5.08
%
Origination and other loan fee income
            
2,084
      
0.26
%
            
2,610
      
0.38
%
Accretion on purchased loans
            
1,874
      
0.24
%
            
1,554
      
0.23
%
Nonaccrual interest collections
            
1,216
      
0.15
%
            
1,116
      
0.16
%
Syndication fee income
            
242
      
0.03
%
            
328
      
0.05
%
Total loan yield
          
$
46,503
      
5.88
%
          
$
40,242
      
5.90
%
                                                 
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%
          
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 7
 
Average Balance, Average Yield Earned and Average Rate Paid
  
For the Quarters Ended
  
(Unaudited)
  
(In Thousands, Except %)
  
 
   
Three Months Ended
  
Three Months Ended
  
Three Months Ended
   
June 30, 2017
  
March 31, 2017
  
December 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)
  
$
1,942,667
    
$
25,115
      
5.19
%
  
$
1,869,951
    
$
25,090
      
5.44
%
  
$
1,811,136
    
$
24,001
      
5.27
%
Loans held for sale
    
390,596
      
4,276
      
4.39
%
    
381,932
      
3,957
      
4.20
%
    
510,219
      
4,167
      
3.25
%
Securities:
                                                                        
Taxable
    
442,309
      
2,589
      
2.35
%
    
456,634
      
2,567
      
2.28
%
    
455,275
      
2,350
      
2.05
%
Tax-exempt(1)
    
122,553
      
1,758
      
5.75
%
    
117,615
      
1,711
      
5.90
%
    
108,230
      
1,558
      
5.73
%
Total Securities(1)
    
564,862
      
4,347
      
3.09
%
    
574,249
      
4,278
      
3.02
%
    
563,505
      
3,908
      
2.76
%
Federal funds sold
    
8,456
      
23
      
1.09
%
    
14,327
      
27
      
0.76
%
    
10,192
      
15
      
0.59
%
Interest-bearing deposits with other financial institutions
    
68,460
      
158
      
0.93
%
    
82,981
      
171
      
0.84
%
    
60,438
      
65
      
0.43
%
FHLB stock
    
7,743
      
90
      
4.66
%
    
7,743
      
78
      
4.09
%
    
6,931
      
65
      
3.73
%
Total interest earning assets(1)
    
2,982,784
      
34,009
      
4.57
%
    
2,931,183
      
33,601
      
4.65
%
    
2,962,421
      
32,221
      
4.33
%
Noninterest Earning Assets:
                                                                        
Cash and due from banks
    
50,004
                      
51,614
                      
43,883
                  
Allowance for loan losses
    
(22,813
)
                    
(21,955
)
                    
(23,283
)
                
Other assets
    
214,808
                      
211,307
                      
223,377
                  
Total noninterest earning assets
    
241,999
                      
240,966
                      
243,977
                  
Total assets
  
$
3,224,783
                    
$
3,172,149
                    
$
3,206,398
                  
Interest-bearing liabilities:
                                                                        
Interest bearing deposits:
                                                                        
Customer time deposits
  
$
389,390
    
$
602
      
0.62
%
  
$
388,744
    
$
582
      
0.61
%
  
$
393,205
    
$
551
      
0.56
%
Broker and internet time deposits
    
1,522
      
2
      
0.53
%
    
1,468
      
1
      
0.28
%
    
1,534
      
—
      
0.00
%
Time deposits
  
$
390,912
    
$
604
      
0.62
%
  
$
390,212
    
$
583
      
0.61
%
  
$
394,739
    
$
551
      
0.56
%
Money market
    
723,020
      
889
      
0.49
%
    
729,934
      
785
      
0.44
%
    
693,790
      
662
      
0.38
%
Negotiable order of withdrawals
    
711,099
      
759
      
0.43
%
    
718,957
      
695
      
0.39
%
    
679,100
      
674
      
0.39
%
Savings deposits
    
143,357
      
55
      
0.15
%
    
136,627
      
51
      
0.15
%
    
132,016
      
51
      
0.15
%
Total interest bearing deposits
    
1,968,388
      
2,307
      
0.47
%
    
1,975,730
      
2,114
      
0.43
%
    
1,899,645
      
1,938
      
0.41
%
Other interest-bearing liabilities:
                                                                        
FHLB advances
    
52,569
      
192
      
1.46
%
    
60,569
      
191
      
1.28
%
    
117,825
      
258
      
0.87
%
Other borrowings
    
17,315
      
12
      
0.28
%
    
18,884
      
10
      
0.21
%
    
25,545
      
22
      
0.31
%
Long-term debt
    
30,930
      
340
      
4.41
%
    
30,930
      
323
      
4.24
%
    
32,609
      
317
      
3.89
%
Total other interest-bearing liabilities
    
100,814
      
544
      
2.16
%
    
110,383
      
524
      
1.93
%
    
175,979
      
597
      
1.35
%
Total Interest-bearing liabilities
    
2,069,202
      
2,851
      
0.55
%
    
2,086,113
      
2,638
      
0.51
%
    
2,075,624
      
2,535
      
0.49
%
Noninterest bearing liabilities:
                                                                        
Demand deposits
    
724,419
                      
708,612
                      
768,018
                  
Other liabilities
    
32,357
                      
44,246
                      
43,770
                  
Total noninterest-bearing liabilities
    
756,776
                      
752,858
                      
811,788
                  
Total liabilities
    
2,825,978
                      
2,838,971
                      
2,887,412
                  
Shareholders' equity
    
398,805
                      
333,178
                      
318,986
                  
Total liabilities and shareholders' equity
  
$
3,224,783
                    
$
3,172,149
                    
$
3,206,398
                  
Net interest income (1)
          
$
31,158
                    
$
30,963
                    
$
29,686
          
Interest rate spread (1)
                    
4.10
%
                    
4.22
%
                    
3.92
%
Net interest margin (1)
                    
4.19
%
                    
4.28
%
                    
3.99
%
Net interest margin (excluding accretion and
   nonaccrual interest recoveries)(1)
                    
4.03
%
                    
4.04
%
                    
3.90
%
Average interest-earning assets to average
   interest-bearing liabilities
                    
144.2
%
                    
140.5
%
                    
142.7
%
Tax equivalent adjustment
          
$
731
                    
$
712
                    
$
654
          
Loan yield components:
                                                                        
Contractual interest rate on loans held for
                                                                        
investment (1)
          
$
22,418
      
4.63
%
          
$
21,461
      
4.65
%
          
$
21,456
      
4.71
%
Origination and other loan fee income
            
1,447
      
0.30
%
            
1,497
      
0.32
%
            
1,868
      
0.41
%
Accretion on purchased loans
            
848
      
0.17
%
            
1,160
      
0.25
%
            
343
      
0.08
%
Nonaccrual interest collections
            
315
      
0.07
%
            
619
      
0.13
%
            
334
      
0.07
%
Syndication fee income
            
87
      
0.02
%
            
353
      
0.08
%
            
—
      
—
  
Total loan yield
          
$
25,115
      
5.19
%
          
$
25,090
      
5.44
%
          
$
24,001
      
5.27
%
                                                                         
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%
          
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 8
 
Average Balance, Average Yield Earned and Average Rate Paid
For the Periods Ended
(Unaudited)
(In Thousands, Except %)
 
   
For the Year Ended
  
For the Year Ended
   
December 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)
  
$
2,418,261
    
$
136,950
      
5.66
%
  
$
1,750,796
    
$
94,782
      
5.41
%
Loans held for sale
    
419,290
      
17,256
      
4.12
%
    
362,518
      
11,268
      
3.11
%
Securities:
                                                
Taxable
    
441,568
      
10,084
      
2.28
%
    
485,083
      
10,646
      
2.19
%
Tax-exempt(1)
    
116,384
      
6,592
      
5.66
%
    
91,863
      
5,548
      
6.04
%
Total Securities(1)
    
557,952
      
16,676
      
2.99
%
    
576,946
      
16,194
      
2.81
%
Federal funds sold
    
75,567
      
140
      
0.69
%
    
12,686
      
64
      
0.50
%
Interest-bearing deposits with other financial institutions
    
75,567
      
954
      
1.26
%
    
51,861
      
285
      
0.55
%
FHLB stock
    
8,894
      
460
      
5.17
%
    
6,630
      
262
      
3.95
%
Total interest earning assets(1)
    
3,555,531
      
172,436
      
4.93
%
    
2,761,437
      
122,855
      
4.45
%
Noninterest Earning Assets:
                                                
Cash and due from banks
    
53,653
                      
46,523
                  
Allowance for loan losses
    
(22,967
)
                    
(23,986
)
                
Other assets
    
280,333
                      
217,301
                  
Total noninterest earning assets
    
311,019
                      
239,838
                  
Total assets
  
$
3,866,550
                    
$
3,001,275
                  
Interest-bearing liabilities:
                                                
Interest bearing deposits:
                                                
Money market
  
$
888,258
    
$
5,387
      
0.61
%
  
$
614,804
    
$
2,292
      
0.37
%
Negotiable order of withdrawals
    
762,918
      
3,640
      
0.48
%
    
699,907
      
2,643
      
0.38
%
Savings deposits
    
156,328
      
245
      
0.16
%
    
129,544
      
478
      
0.37
%
Time deposits
    
511,741
      
3,759
      
0.73
%
    
401,483
      
1,929
      
0.48
%
Total interest bearing deposits
    
2,319,245
      
13,031
      
0.56
%
    
1,845,738
      
7,342
      
0.40
%
Other interest-bearing liabilities:
                                                
FHLB advances
    
110,764
      
1,778
      
1.61
%
    
64,309
      
688
      
1.07
%
Other borrowings
    
16,968
      
42
      
0.25
%
    
45,691
      
121
      
0.26
%
Long-term debt
    
30,930
      
1,491
      
4.82
%
    
38,207
      
1,393
      
3.65
%
Total other interest-bearing liabilities
    
158,662
      
3,311
      
2.09
%
    
148,207
      
2,202
      
1.49
%
Total Interest-bearing liabilities
  
$
2,477,907
    
$
16,342
      
0.66
%
  
$
1,993,945
    
$
9,544
      
0.48
%
Noninterest bearing liabilities:
                                                
Demand deposits
  
$
814,643
                    
$
695,765
                  
Other liabilities
    
52,389
                      
34,978
                  
Total noninterest-bearing liabilities
    
867,032
                      
730,743
                  
Total liabilities
    
3,344,939
                      
2,724,688
                  
Shareholders' equity
    
466,219
                      
276,587
                  
Total liabilities and shareholders' equity
  
$
3,811,158
                    
$
3,001,275
                  
Net interest income (1)
          
$
156,094
                    
$
113,311
          
Interest rate spread (1)
                    
4.36
%
                    
4.05
%
Net interest margin (1)
                    
4.46
%
                    
4.10
%
Net interest margin (excluding accretion and nonaccrual interest
    recoveries)(1)
                    
5.67
%
                    
3.98
%
Average interest-earning assets to average interesting-bearing
    liabilities
                    
141.3
%
                    
138.5
%
Tax equivalent adjustment
          
$
2,823
                    
$
2,361
          
Loan yield components:
                                                
Contractual interest rate on loans held for investment (1)
          
$
119,617
      
4.95
%
          
$
81,271
      
4.64
%
Origination and other loan fee income
            
7,638
      
0.32
%
            
8,073
      
0.46
%
Accretion on purchased loans
            
5,419
      
0.22
%
            
3,538
      
0.20
%
Nonaccrual interest collections
            
3,266
      
0.14
%
            
1,075
      
0.06
%
Syndicated fee income
            
1,010
      
0.04
%
            
825
      
0.05
%
Total loan yield
          
$
136,950
      
5.66
%
          
$
94,782
      
5.41
%
                                                 
(1) Includes tax equivalent adjustment using combined rate of 39.225%
                          
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 9
 
Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands)
 
   
2017
  
2016
   
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Loans by market
                              
Metropolitan
  
$
1,984,826
    
$
1,932,934
    
$
1,461,129
    
$
1,402,189
    
$
1,352,181
  
Community
    
780,079
      
779,810
      
476,320
      
473,453
      
468,245
  
Specialty lending and other
    
402,006
      
401,818
      
33,525
      
25,353
      
28,358
  
Total
  
$
3,166,911
    
$
3,114,562
    
$
1,970,974
    
$
1,900,995
    
$
1,848,784
  
Deposits by market
                                        
Metropolitan
    
2,091,927
      
2,059,401
      
1,598,574
      
1,553,931
      
1,554,929
  
Community
    
1,291,922
      
1,311,120
      
1,085,345
      
1,109,043
      
1,072,242
  
Mortgage and other (1)
    
280,546
      
348,017
      
43,674
      
38,225
      
44,391
  
Total
  
$
3,664,395
    
$
3,718,538
    
$
2,727,593
    
$
2,701,199
    
$
2,671,562
  
                                         
(1) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale and other deposits
  
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 10
 
Segment Data
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
   
2017
  
2016
   
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Banking segment
                              
Net interest income
  
$
49,422
    
$
43,741
    
$
29,999
    
$
29,856
    
$
28,959
  
Provision for loan losses
    
956
      
(784
)
    
(865
)
    
(257
)
    
(752
)
Mortgage banking income- retail footprint
    
6,455
      
7,498
      
7,118
      
5,666
      
3,202
  
Other noninterest income
    
6,737
      
6,486
      
5,418
      
6,007
      
5,155
  
Other noninterest mortgage banking expenses
    
5,294
      
6,216
      
5,368
      
4,836
      
1,950
  
Merger and conversion expense
    
2,069
      
15,711
      
767
      
487
      
487
  
Other noninterest expense
    
30,060
      
27,540
      
23,199
      
23,424
      
22,593
  
Pre-tax income after allocations
  
$
24,235
    
$
9,042
    
$
14,066
    
$
13,039
    
$
13,038
  
Total assets
    
4,130,349
      
4,056,901
      
2,878,437
      
2,705,118
      
2,752,773
  
Intracompany funding income included in net interest income
    
5,276
      
4,274
      
3,831
      
3,551
      
4,081
  
Core efficiency ratio*
    
55.55
%
    
56.16
%
    
60.42
%
    
64.41
%
    
62.57
%
Mortgage segment
                                        
Net interest income
  
$
(439
)
  
$
(131
)
  
$
428
    
$
395
    
$
40
  
Provision for loan losses
    
-
      
-
      
-
      
-
      
-
  
Noninterest income
    
23,825
      
23,836
      
23,121
      
19,414
      
22,975
  
Noninterest expense
    
20,117
      
19,757
      
19,802
      
17,670
      
22,256
  
Direct contribution
  
$
3,269
    
$
3,948
    
$
3,747
    
$
2,139
    
$
759
  
Total assets
    
597,364
      
525,042
      
468,133
      
461,341
      
524,108
  
Intracompany funding expense included in net interest income
    
5,276
      
4,274
      
3,831
      
3,551
      
4,081
  
Core efficiency ratio*
    
83.77
%
    
79.89
%
    
78.33
%
    
88.73
%
    
92.50
%
Interest rate lock commitments volume during the period
                                        
Consumer direct
  
$
677,449
    
$
786,034
    
$
780,179
    
$
616,330
    
$
645,896
  
Third party origination (TPO)
    
189,299
      
269,473
      
296,034
      
258,996
      
228,982
  
Retail
    
268,720
      
325,295
      
379,530
      
282,698
      
256,812
  
Correspondent
    
678,346
      
619,953
      
701,846
      
440,206
      
331,622
  
Total
  
$
1,813,814
    
$
2,000,755
    
$
2,157,589
    
$
1,598,230
    
$
1,463,312
  
Interest rate lock commitments pipeline (period end)
                                        
Consumer direct
  
$
246,982
    
$
261,617
    
$
222,504
    
$
158,393
    
$
307,699
  
Third party origination (TPO)
    
63,034
      
93,353
      
88,938
      
101,509
      
79,967
  
Retail
    
72,939
      
101,196
      
119,158
      
93,184
      
77,033
  
Correspondent
    
121,201
      
84,506
      
115,919
      
95,923
      
68,221
  
Total
  
$
504,156
    
$
540,672
    
$
546,519
    
$
449,009
    
$
532,920
  
Mortgage sales
                                        
Consumer direct
  
$
567,529
    
$
485,931
    
$
498,997
    
$
647,535
    
$
777,169
  
Third party origination (TPO)
    
216,866
      
194,164
      
209,185
      
199,160
      
191,420
  
Retail
    
68,695
      
71,358
      
66,640
      
61,425
      
66,967
  
Retail footprint
    
205,228
      
222,786
      
200,157
      
186,988
      
195,280
  
Reverse
    
20,587
      
17,520
      
17,870
      
22,337
      
24,422
  
Correspondent
    
606,526
      
646,003
      
542,410
      
373,822
      
291,651
  
Total
  
$
1,685,431
    
$
1,637,762
    
$
1,535,259
    
$
1,491,267
    
$
1,546,909
  
Gains and fees from origination and sale of
                                        
     mortgage loans held for sale
  
$
29,577
    
$
29,570
    
$
23,920
    
$
27,577
    
$
29,518
  
Net change in fair value of loans
     held for sale and derivatives
    
(3,317
)
    
(806
)
    
5,412
      
(4,744
)
    
(7,092
)
Change in fair value of mortgage
     servicing rights
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Mortgage servicing income
    
4,210
      
3,463
      
2,747
      
2,748
      
3,751
  
Total mortgage banking
                                        
     income
  
$
30,280
    
$
31,334
    
$
30,239
    
$
25,080
    
$
26,177
  
Mortgage sale margin (a)
    
1.75
%
    
1.81
%
    
1.56
%
    
1.85
%
    
1.91
%
                                         
*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.
  
(a) Calculated by dividing gains from sale of mortgage loans held for sale by total mortgage sales
  
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 11
 
Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
   
2017
  
2016
   
December 30,
2017
  
% of
Total
  
September 30,
2017
  
% of
Total
  
June 30,
2017
  
% of
Total
  
March 31,
2017
  
% of
Total
  
December 31,
2016
  
% of
Total
Loan portfolio
                                                            
Commercial and industrial
  
$
715,862
      
23
%
  
$
731,588
      
23
%
  
$
423,704
      
21
%
  
$
399,333
      
21
%
  
$
386,233
      
21
%
Construction
    
448,326
      
14
%
    
435,414
      
14
%
    
282,727
      
14
%
    
267,998
      
14
%
    
245,905
      
13
%
Residential real estate:
                                                                                
1-to-4 family mortgage
    
479,750
      
15
%
    
459,467
      
15
%
    
307,152
      
16
%
    
302,166
      
16
%
    
294,924
      
16
%
Residential line of credit
    
194,986
      
6
%
    
188,392
      
6
%
    
177,783
      
9
%
    
177,928
      
9
%
    
177,190
      
10
%
Multi-family mortgage
    
62,374
      
2
%
    
74,004
      
2
%
    
52,810
      
3
%
    
45,244
      
2
%
    
44,977
      
2
%
Commercial real estate:
                                                                                
Owner occupied
    
495,872
      
16
%
    
473,395
      
15
%
    
371,462
      
19
%
    
359,120
      
19
%
    
357,346
      
19
%
Non-owner occupied
    
551,588
      
17
%
    
521,416
      
17
%
    
273,285
      
14
%
    
273,716
      
15
%
    
267,902
      
15
%
Consumer and other
    
218,153
      
7
%
    
230,886
      
7
%
    
82,051
      
4
%
    
75,490
      
4
%
    
74,307
      
4
%
Total loans held for investment
  
$
3,166,911
      
100
%
  
$
3,114,562
      
100
%
  
$
1,970,974
      
100
%
  
$
1,900,995
      
100
%
  
$
1,848,784
      
100
%
                                                                                 
Allowance for loan losses rollforward summary
                                                                                
Allowance for loan losses at the beginning of the period
  
$
23,482
            
$
23,247
            
$
22,898
            
$
21,747
            
$
23,290
          
Charge-off's
    
(719
)
            
(575
)
            
(791
)
            
(442
)
            
(1,230
)
        
Recoveries
    
322
              
1,594
              
2,005
              
1,850
              
439
          
Provision for loan losses
    
956
              
(784
)
            
(865
)
            
(257
)
            
(752
)
        
Allowance for loan losses at the end of the period
  
$
24,041
            
$
23,482
            
$
23,247
            
$
22,898
            
$
21,747
          
                                                                                 
Allowance for loan losses as a percentage of total loans held for investment
    
0.76
%
            
0.75
%
            
1.18
%
            
1.20
%
            
1.18
%
        
                                                                                 
Charge-offs
                                                                                
Commercial and Industrial
  
$
(63
)
          
$
(221
)
          
$
(131
)
          
$
(169
)
          
$
(6
)
        
Construction
    
(21
)
            
-
              
-
              
(6
)
            
-
          
Residential real estate:
                                                                                
1-to-4 family mortgage
    
(45
)
            
(32
)
            
(35
)
            
(88
)
            
(5
)
        
Residential line of credit
    
(72
)
            
(9
)
            
(195
)
            
-
              
(28
)
        
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
(224
)
            
(64
)
            
-
              
-
              
(156
)
        
Non-owner occupied
    
-
              
-
              
-
              
-
              
(527
)
        
Consumer and other
    
(294
)
            
(249
)
            
(430
)
            
(179
)
            
(508
)
        
Total Charge Offs:
    
(719
)
            
(575
)
            
(791
)
            
(442
)
            
(1,230
)
        
Recoveries
                                                                                
Commercial and Industrial
    
100
              
200
              
1,511
              
83
              
44
          
Construction
    
4
              
1,022
              
29
              
29
              
79
          
Residential real estate:
                                                                                
1-to-4 family mortgage
    
33
              
86
              
14
              
26
              
18
          
Residential line of credit
    
27
              
157
              
155
              
56
              
31
          
Multi-family mortgage
    
-
              
-
              
-
              
-
              
-
          
Commercial real estate:
                                                                                
Owner occupied
    
22
              
24
              
11
              
4
              
125
          
Non-owner occupied
    
4
              
1
              
2
              
1,639
              
168
          
Consumer and other
    
132
              
104
              
283
              
13
              
(26
)
        
Total Recoveries:
    
322
              
1,594
              
2,005
              
1,850
              
439
          
Net (charge-off's) recoveries
  
$
(397
)
          
$
1,019
            
$
1,214
            
$
1,408
            
$
(791
)
        
                                                                                 
Net (charge-off's) recoveries as a percentage of average total loans
    
(0.05
%)
            
0.15
%
            
0.25
%
            
0.31
%
            
(0.17
%)
        
                                                                                 
Loans classified as substandard
  
$
55,488
            
$
59,588
            
$
37,858
            
$
37,556
            
$
38,585
          
Purchased credit impaired loans
  
$
88,835
            
$
92,455
            
$
15,733
            
$
16,099
            
$
16,058
          
                                                                                 
Nonperforming assets (b)
                                                                                
Past due 90 days or more and accruing interest
  
$
1,996
            
$
1,238
            
$
1,619
            
$
1,590
            
$
1,329
          
Nonaccrual
    
8,101
              
7,749
              
8,327
              
7,706
              
8,729
          
Total nonperforming loans held for investment
  
$
10,097
            
$
8,987
            
$
9,946
            
$
9,296
            
$
10,058
          
Loans held for sale (a)
    
43,035
              
13,575
              
-
              
-
              
-
          
Other real estate owned- foreclosed
    
10,547
              
10,205
              
6,370
              
6,811
              
7,403
          
Other real estate owned- acquired excess facilities
    
5,895
              
3,607
              
-
              
-
              
-
          
Other assets
    
2,369
              
3,967
              
3,154
              
1,654
              
1,654
          
Total nonperforming assets
  
$
71,943
            
$
40,341
            
$
19,470
            
$
17,761
            
$
19,115
          
Total nonperforming loans as a percentage of
   loans held for investment
    
0.32
%
            
0.29
%
            
0.50
%
            
0.49
%
            
0.57
%
        
Total nonperforming assets as a percentage of
   total assets
    
1.52
%
            
0.88
%
            
0.58
%
            
0.56
%
            
0.58
%
        
Total accruing loans over 90 days delinquent as
   a percentage of total assets
    
0.04
%
            
0.03
%
            
0.05
%
            
0.05
%
            
0.04
%
        
Loans restructured as troubled debt
   restructurings
  
$
8,771
            
$
8,095
            
$
8,488
            
$
8,681
            
$
8,802
          
Troubled debt restructurings as a percentage of
   loans held for investment
    
0.28
%
            
0.26
%
            
0.43
%
            
0.46
%
            
0.48
%
        
                                                                                 
(a) Represents right to repurchase government guaranteed GNMA mortgage loans previously sold and internally serviced. The Bank has not exercised and does not expect to exercise the repurchase option.
  
(b) Nonperforming assets excludes purchased credit impaired loans
  
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 12
 
Capital Ratios
(Unaudited)
(In Thousands, Except %)
 
Computation of Tangible Common Equity to Tangible Assets:
  
December 31, 2017
  
December 31, 2016
             
Total Equity
  
$
596,729
    
$
330,498
  
Less:
                
Goodwill
    
137,190
      
46,867
  
Other intangibles
    
14,902
      
4,563
  
Tangible Common Equity
  
$
444,637
    
$
279,068
  
                 
Total Assets
  
$
4,727,713
    
$
3,276,881
  
Less:
                
Goodwill
    
137,190
      
46,867
  
Other intangibles
    
14,902
      
4,563
  
Tangible Assets
  
$
4,575,621
    
$
3,225,451
  
                 
Total Common Equity to Total Assets
    
12.62
%
    
10.09
%
Tangible Common Equity to Tangible Assets*
    
9.72
%
    
8.65
%
                 
                 
   
December 31, 2017
  
December 31, 2016
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1 Capital
  
$
442,381
    
$
287,146
  
Tier 1 Capital
    
472,381
      
317,146
  
Total Capital
    
496,422
      
338,893
  
                 
Preliminary Regulatory Capital Ratios:
                
Common Equity Tier 1
    
10.70
%
    
11.04
%
Tier 1 Risk-Based
    
11.43
%
    
12.19
%
Total Risk-Based
    
12.01
%
    
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
Fourth Quarter 2017
Supplemental Financial Information
Page 13
 
Investment Portfolio
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
 
   
2017
  
2016
Securities available for sale (at fair value)
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Debt securities
                                                            
U.S. government agency securities
  
$
986
      
0
%
  
$
992
      
0
%
  
$
990
      
0
%
  
$
987
      
0
%
  
$
985
      
0
%
Mortgage-backed securities - residential
    
418,781
      
77
%
    
418,794
      
77
%
    
410,708
      
74
%
    
425,943
      
75
%
    
443,908
      
76
%
Municipals, tax exempt
    
109,251
      
20
%
    
106,950
      
20
%
    
122,698
      
22
%
    
120,560
      
21
%
    
116,923
      
20
%
Treasury securities
    
7,252
      
1
%
    
8,819
      
2
%
    
10,310
      
2
%
    
11,773
      
2
%
    
11,757
      
2
%
Total debt securities
    
536,270
      
99
%
    
535,555
      
99
%
    
544,706
      
98
%
    
559,263
      
98
%
    
573,573
      
98
%
Equity securities
    
7,722
      
1
%
    
7,727
      
1
%
    
8,651
      
2
%
    
8,623
      
2
%
    
8,610
      
2
%
Total securities available-for-sale
  
$
543,992
      
100
%
  
$
543,282
      
100
%
  
$
553,357
      
100
%
  
$
567,886
      
100
%
  
$
582,183
      
100
%
                                                                                 
Securities available for sale to total assets
    
11.51
%
            
11.86
%
            
16.54
%
            
17.93
%
            
17.77
%
        
 
 
FB Financial Corporation
Fourth Quarter 2017
Supplemental Financial Information
Page 14
 
Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %)
                               
   
2017
  
2016
Core net income
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Pre-tax net income
  
$
27,504
    
$
12,990
    
$
17,813
    
$
15,178
    
$
13,797
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights, net
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Less gain from securities, net
    
1
      
254
      
29
      
1
      
-
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(386
)
    
(314
)
    
62
      
748
      
(349
)
Noninterest expenses
                                        
Plus variable compensation charge related to cash settled equity awards
    
-
      
-
      
-
      
635
      
1,041
  
Plus merger and conversion
    
2,069
      
15,711
      
767
      
487
      
-
  
Plus (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(3,411
)
Plus loss on sale of mortgage servicing rights
    
-
      
-
      
249
      
-
      
4,447
  
Pre tax core net income
  
$
30,148
    
$
29,654
    
$
20,578
    
$
16,052
    
$
16,223
  
Core income tax expense
    
11,471
      
11,138
      
7,659
      
5,768
      
5,739
  
Core net income
  
$
18,677
    
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
  
Weighted average common shares outstanding fully diluted
    
31,166,080
      
30,604,537
      
26,301,458
      
24,610,991
      
24,500,943
  
                                         
Core diluted earnings per share
                                        
Diluted earning per share
  
$
0.74
    
$
0.27
    
$
0.43
    
$
0.40
    
$
0.37
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights
    
(0.01
)
    
(0.03
)
    
(0.07
)
    
(0.02
)
    
-
  
Less gain from securities, net
    
0.00
      
0.01
      
0.00
      
0.00
      
0.00
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(0.01
)
    
(0.01
)
    
0.00
      
0.03
      
(0.01
)
                                         
Noninterest expenses
                                        
Plus variable compensation charge related to cash settled equity awards
    
-
      
-
      
-
      
0.03
      
0.04
  
Plus merger and conversion
    
0.07
      
0.51
      
0.03
      
0.02
      
-
  
Plus (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(0.14
)
Plus loss on sale of mortgage servicing rights
    
-
      
-
      
0.01
      
-
      
0.18
  
Tax effect
    
(0.2
)
    
(0.2
)
    
(0.0
)
    
(0.0
)
    
(0.04
)
Core diluted earnings per share
  
$
0.60
    
$
0.60
    
$
0.49
    
$
0.42
    
$
0.43
  
                                         
Pro forma core net income
            
2017 
    
2016 
    
2015 
    
2014 
Pre-tax net income
          
$
73,485
    
$
62,324
    
$
50,824
    
$
34,731
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights, net
            
(3,424
)
    
-
      
-
      
-
  
Less gain from securities, net
            
285
      
4,407
      
1,844
      
2,000
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
            
110
      
1,179
      
(710
)
    
151
  
Noninterest expenses
                                        
Plus one-time equity grants
            
-
      
2,960
      
-
      
3,000
  
Plus variable compensation charge related to cash settled equity awards
            
635
      
1,254
      
-
      
-
  
Plus merger and conversion
            
19,034
      
3,268
      
3,543
      
-
  
Plus (recovery of) impairment of mortgage servicing rights
            
-
      
4,678
      
194
      
-
  
Plus loss on sale of mortgage servicing rights
            
249
      
4,447
      
-
      
-
  
Pre tax core net income
          
$
96,432
    
$
73,345
    
$
53,427
    
$
35,580
  
Pro forma core income tax expense
            
36,036
      
27,225
      
18,850
      
12,708
  
Pro forma core net income
          
$
60,396
    
$
46,120
    
$
34,577
    
$
22,872
  
Weighted average common shares outstanding fully diluted
            
28,207,602
      
19,312,174
      
17,180,000
      
17,180,000
  
                                         
Pro forma core diluted earnings per share
                                        
Diluted earning per share
          
$
1.86
    
$
2.04
    
$
2.79
    
$
1.89
  
Non-core items:
                                        
Noninterest income
                                        
Less change in fair value on mortgage servicing rights
            
(0.13
)
    
-
      
-
      
-
  
Less gain from securities, net
            
0.01
      
0.23
      
0.11
      
0.12
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
            
0.01
      
0.06
      
(0.04
)
    
0.01
  
                                         
Noninterest expenses
                                        
Plus one-time equity grants
            
-
      
0.15
      
-
      
0.17
  
Plus variable compensation charge related to cash settled equity awards
            
0.03
      
0.06
      
-
      
-
  
Plus merger and conversion
            
0.63
      
0.17
      
0.21
      
-
  
Plus (recovery of) impairment of mortgage servicing rights
            
-
      
0.24
      
0.01
      
-
  
Plus loss on sale of mortgage servicing rights
            
0.01
      
0.23
      
-
      
-
  
Tax effect
            
(0.5
)
    
(0.2
)
    
(0.9
)
    
2.07
  
Pro forma core diluted earnings per share
    
$
2.14
    
$
2.39
    
$
2.01
    
$
1.33
  
 
 
Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %) 
                               
   
2017
  
2016
Core efficiency ratio (tax-equivalent basis)
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Total noninterest expense
  
$
57,540
    
$
69,224
    
$
49,136
    
$
46,417
    
$
47,319
  
Less variable compensation charge related to cash settled equity awards
    
-
      
-
      
-
      
635
      
1,041
  
Less merger and conversion expenses
    
2,069
      
15,711
      
767
      
487
      
-
  
Less (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(3,411
)
Less loss on sale of mortgage servicing rights
    
-
      
-
      
249
      
-
      
4,447
  
Core noninterest expense
  
$
55,471
    
$
53,513
    
$
48,120
    
$
45,295
    
$
45,242
  
Net interest income (tax-equivalent basis)
    
49,692
      
44,281
      
31,158
      
30,963
      
29,686
  
Total noninterest income
    
37,017
      
37,820
      
35,657
      
31,087
      
31,332
  
Less change in fair value on mortgage servicing rights
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Less (loss) gain on sales or write-downs of other real estate owned and other assets
    
(386
)
    
(314
)
    
62
      
748
      
(349
)
Less gain from securities, net
    
1
      
254
      
29
      
1
      
-
  
Core noninterest income
    
37,592
      
38,773
      
37,406
      
30,839
      
31,681
  
Core revenue
  
$
87,284
    
$
83,054
    
$
68,564
    
$
61,802
    
$
61,367
  
Efficiency ratio (GAAP)(1)
    
66.91
%
    
85.01
%
    
74.35
%
    
75.67
%
    
78.39
%
Core efficiency ratio (tax-equivalent basis)
    
63.55
%
    
64.43
%
    
70.18
%
    
73.29
%
    
73.72
%
                                         
(1) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue
  
 
   
2017
  
2016
Banking segment core efficiency ratio (tax equivalent)
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Core consolidated noninterest expense
  
$
55,471
    
$
53,513
    
$
48,120
    
$
45,295
    
$
45,242
  
Less Mortgage segment noninterest expense
    
20,117
      
19,757
      
19,802
      
17,670
      
22,256
  
Add (recovery of) impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(3,411
)
Add loss on sale of mortgage servicing rights
    
-
      
-
      
249
      
-
      
4,447
  
Adjusted Banking segment noninterest expense
    
35,354
      
33,756
      
28,567
      
27,625
      
24,022
  
Adjusted core revenue
    
87,284
      
83,054
      
68,564
      
61,802
      
61,367
  
Less Mortgage segment noninterest income
    
23,825
      
23,836
      
23,121
      
19,414
      
22,975
  
Less change in fair value on mortgage servicing rights
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Adjusted Banking segment total revenue
  
$
63,649
    
$
60,111
    
$
47,283
    
$
42,889
    
$
38,392
  
Banking segment core efficiency ratio (tax-equivalent basis)
    
55.55
%
    
56.16
%
    
60.42
%
    
64.41
%
    
62.57
%
                                         
Mortgage segment core efficiency ratio (tax equivalent)
                                        
Consolidated Noninterest expense
  
$
57,540
    
$
69,224
    
$
49,136
    
$
46,417
    
$
47,319
  
Less impairment of mortgage servicing rights
    
-
      
-
      
-
      
-
      
(3,411
)
Less loss on sale of mortgage servicing rights
    
-
      
-
      
249
      
-
      
4,447
  
Less Banking segment noninterest expense
    
37,423
      
49,467
      
29,334
      
28,747
      
25,030
  
Adjusted Mortgage segment noninterest expense
  
$
20,117
    
$
19,757
    
$
19,553
    
$
17,670
    
$
21,253
  
Total noninterest income
    
37,017
      
37,820
      
35,657
      
31,087
      
31,332
  
Less Banking segment noninterest income
    
13,192
      
13,984
      
12,536
      
11,673
      
8,357
  
Less change in fair value on mortgage servicing rights
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Adjusted Mortgage segment total revenue
  
$
24,015
    
$
24,729
    
$
24,961
    
$
19,915
    
$
22,975
  
Mortgage segment core efficiency ratio (tax-equivalent basis)
    
83.77
%
    
79.89
%
    
78.33
%
    
88.73
%
    
92.50
%
 
   
2017
  
2016
Tangible assets and equity
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Tangible Assets
                              
Total assets
  
$
4,727,713
    
$
4,581,943
    
$
3,346,570
    
$
3,166,459
    
$
3,276,881
  
Less goodwill
    
137,190
      
138,910
      
46,867
      
46,867
      
46,867
  
Less intangibles, net
    
14,902
      
12,550
      
4,048
      
4,171
      
4,563
  
Tangible assets
  
$
4,575,621
    
$
4,430,483
    
$
3,295,655
    
$
3,115,421
    
$
3,255,451
  
Tangible Common Equity
                                        
Total shareholders' equity
  
$
596,729
    
$
572,528
    
$
509,517
    
$
342,142
    
$
330,498
  
Less goodwill
    
137,190
      
138,910
      
46,867
      
46,867
      
46,867
  
Less intangibles, net
    
14,902
      
12,550
      
4,048
      
4,171
      
4,563
  
Tangible common equity
  
$
444,637
    
$
421,068
    
$
458,602
    
$
291,104
    
$
279,068
  
Common shares outstanding
    
30,535,517
      
30,526,592
      
28,968,160
      
24,154,323
      
24,107,660
  
Book value per common share
  
$
19.54
    
$
18.76
    
$
17.59
    
$
14.16
    
$
13.71
  
Tangible book value per common share
  
$
14.56
    
$
13.79
    
$
15.83
    
$
12.05
    
$
11.58
  
Total shareholders' equity to total assets
    
12.62
%
    
12.50
%
    
15.23
%
    
10.81
%
    
10.09
%
Tangible common equity to tangible assets
    
9.72
%
    
9.50
%
    
13.92
%
    
9.34
%
    
8.65
%
Net income
  
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
  
Return on tangible common equity
    
20.54
%
    
7.90
%
    
9.83
%
    
13.59
%
    
12.84
%
 
   
2017
  
2016
Return on average tangible common equity
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Total average shareholders' equity
  
$
578,856
    
$
550,409
    
$
398,805
    
$
333,178
    
$
318,986
  
Less average goodwill
    
138,050
      
108,220
      
46,839
      
46,839
      
46,839
  
Less intangibles, net
    
13,726
      
9,983
      
4,124
      
4,353
      
4,694
  
Average tangible common equity
  
$
427,080
    
$
432,206
    
$
347,842
    
$
281,986
    
$
267,453
  
Net income
  
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
  
Return on average tangible common equity
    
21.38
%
    
7.70
%
    
12.96
%
    
14.03
%
    
13.40
%
 
 
Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %)
 
   
2017
  
2016
Core return on average tangible equity
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Pre-tax net income
  
$
27,504
    
$
12,990
    
$
17,813
    
$
15,178
    
$
13,797
  
Adjustments:
                                        
Add non-core items
    
2,644
      
16,664
      
2,765
      
874
      
2,426
  
Less core income tax expense
    
11,471
      
11,138
      
7,659
      
5,768
      
5,739
  
Core net income
  
$
18,677
    
$
18,516
    
$
12,919
    
$
10,284
    
$
10,484
  
Core return on average tangible common equity
    
17.35
%
    
17.00
%
    
14.90
%
    
14.79
%
    
15.60
%
 
   
2017
  
2016
Core return on average assets and equity
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
      Net income
  
$
23,018
    
$
8,388
    
$
11,239
    
$
9,753
    
$
9,010
  
      Average assets
    
4,664,669
      
4,162,478
      
3,224,783
      
3,172,149
      
3,206,398
  
      Average equity
    
578,856
      
550,409
      
398,805
      
333,178
      
318,986
  
Return on average assets
    
1.96
%
    
0.80
%
    
1.40
%
    
1.25
%
    
1.12
%
Return on average equity
    
15.78
%
    
6.05
%
    
11.30
%
    
11.87
%
    
11.24
%
      Core net income
    
18,677
      
18,516
      
12,919
      
10,284
      
10,484
  
Core return on average assets
    
1.59
%
    
1.76
%
    
1.61
%
    
1.31
%
    
1.30
%
Core return on average equity
    
12.80
%
    
13.35
%
    
12.99
%
    
12.52
%
    
13.08
%
 
   
2017
  
2016
Core total revenue
  
Fourth Quarter
  
Third Quarter
  
Second Quarter
  
First Quarter
  
Fourth Quarter
Net interest income
  
$
48,983
    
$
43,610
    
$
30,427
    
$
30,251
    
$
29,032
  
Noninterest income
    
37,017
      
37,820
      
35,657
      
31,087
      
31,332
  
Less adjustments:
                                        
Change in fair value of mortgage servicing rights
    
(190
)
    
(893
)
    
(1,840
)
    
(501
)
    
-
  
Gain from securities, net
    
1
      
254
      
29
      
1
      
-
  
(Loss) gain on sales or write-downs of other real estate owned and other assets
    
(386
)
    
(314
)
    
62
      
748
      
(349
)
Core total revenue
  
$
86,575
    
$
82,383
    
$
67,833
    
$
61,090
    
$
60,713