FB Financial (FBK) 8-K FB Financial Corporation Reports 2017 Third Quarter Results

Exhibit 99.2

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 1

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
	2017									2016
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Statement of Income Data
Total interest income	$	48,415		$	33,278		$	32,889		$	31,567		$	30,005
Total interest expense		4,805			2,851			2,638			2,535			2,388
Net interest income		43,610			30,427			30,251			29,032			27,617
Provision for loan losses		(784	)		(865	)		(257	)		(752	)		71
Total noninterest income		37,820			35,657			31,087			31,332			43,962
Total noninterest expense		69,224			49,136			46,417			47,319			55,529
Net income before income taxes		12,990			17,813			15,178			13,797			15,979
Income tax expense		4,602			6,574			5,425			4,787			14,772
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	1,207
Net interest income (tax—equivalent basis)	$	44,281		$	31,158		$	30,963		$	29,686		$	28,213
Pro forma net income (C-Corp basis)	$	8,388		$	11,239		$	9,753		$	9,010		$	10,033
Pro forma core net income*	$	18,516		$	12,919		$	10,284		$	10,484		$	12,935
Per Common Share
Diluted net income	$	0.27		$	0.43		$	0.40		$	0.37		$	0.07
Pro forma net income- diluted (C Corp basis)	$	0.27		$	0.43		$	0.40		$	0.37		$	0.55
Pro forma core net income - diluted*	$	0.60		$	0.49		$	0.42		$	0.43		$	0.71
Book value		18.76			17.59			14.16			13.71			13.73
Tangible book value*		13.79			15.83			12.05			11.58			11.56
Weighted average number of shares-diluted		30,604,537			26,301,458			24,610,991			24,500,943			18,332,192
Period-end number of shares (a)		30,526,592			28,968,160			24,154,323			24,107,660			23,975,122
Selected Balance Sheet Data
Cash and due from banks	$	67,070		$	59,112		$	53,748		$	50,157		$	51,292
Loans held for investment		3,114,562			1,970,974			1,900,995			1,848,784			1,793,343
Allowance for loan losses		(23,482	)		(23,247	)		(22,898	)		(21,747	)		(23,290	)
Loans held for sale		466,369			427,416			365,173			507,442			486,601
Available-for-sale securities, fair value		543,282			553,357			567,886			582,183			553,357
Other real estate owned, net		13,812			6,370			6,811			7,403			8,964
Total assets		4,581,943			3,346,570			3,166,459			3,276,881			3,187,180
Customer deposits		3,614,220			2,726,060			2,699,868			2,670,031			2,638,540
Brokered and internet time deposits		104,318			1,533			1,331			1,531			1,532
Total deposits		3,718,538			2,727,593			2,701,199			2,671,562			2,640,072
Borrowings		196,299			43,790			44,552			194,892			125,291
Total shareholders' equity		572,528			509,517			342,142			330,498			329,108
Selected Ratios
Return on average:
Assets		0.80	%		1.40	%		1.25	%		1.12	%		0.16	%
Shareholders' equity		6.05	%		11.30	%		11.87	%		11.24	%		1.74	%
Tangible common equity*		7.70	%		12.96	%		14.03	%		13.40	%		2.14	%
Pro forma return on average (C-Corp basis):
Assets		0.80	%		1.40	%		1.25	%		1.12	%		1.32	%
Shareholders' equity		6.05	%		11.30	%		11.87	%		11.24	%		14.43	%
Tangible common equity*		7.70	%		12.96	%		14.03	%		13.40	%		17.79	%
Average shareholders' equity to average assets		13.22	%		12.37	%		10.50	%		9.95	%		9.17	%
Net interest margin (NIM) (tax-equivalent basis)		4.61	%		4.19	%		4.28	%		3.99	%		4.05	%
Net interest margin excluding accretion and nonaccrual interest collections (tax-equivalent basis) (b)		4.33	%		4.03	%		4.04	%		3.90	%		3.88	%
Efficiency ratio (GAAP)		85.01	%		74.35	%		75.67	%		78.39	%		77.58	%
Core efficiency ratio (tax-equivalent basis)*		64.43	%		70.18	%		73.29	%		73.72	%		69.65	%
Loans held for investment to deposit ratio		83.76	%		72.26	%		70.38	%		69.20	%		67.93	%
Total loans to deposit ratio		96.30	%		87.93	%		83.89	%		88.20	%		86.36	%
Yield on interest-earning assets		5.10	%		4.57	%		4.65	%		4.33	%		4.40	%
Cost of interest-bearing liabilities		0.71	%		0.55	%		0.51	%		0.49	%		0.48	%
Cost of total deposits		0.46	%		0.34	%		0.32	%		0.29	%		0.30	%
Credit Quality Ratios
Allowance for loan losses as a percentage of loans held for investment		0.75	%		1.18	%		1.20	%		1.18	%		1.30	%
Net recoveries (charge-off's) as a percentage of average total loans held for investment		0.15	%		0.25	%		0.31	%		(0.17	)%		(0.12	)%
Nonperforming loans held for investment as a percentage of total loans held for investments		0.29	%		0.50	%		0.49	%		0.57	%		0.61	%
Nonperforming assets as a percentage of total assets (a)		0.88	%		0.58	%		0.56	%		0.58	%		0.68	%
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets		12.50	%		15.23	%		10.81	%		10.09	%		10.33	%
Tangible common equity to tangible assets*		9.50	%		13.92	%		9.34	%		8.65	%		8.84	%
Tier 1 capital (to average assets)		11.35	%		15.54	%		10.46	%		10.05	%		10.32	%
Tier 1 capital (to risk-weighted assets)		11.59	%		18.28	%		12.87	%		12.19	%		12.37	%
Total capital (to risk-weighted assets)		12.19	%		19.14	%		13.76	%		13.03	%		13.32	%
Common Equity Tier 1 (to risk-weighted assets) (CET1)		10.83	%		17.16	%		11.69	%		11.04	%		11.16	%
*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) Includes marketable equity securities received in satisfaction of previously charged-off loan during the second quarter of 2017, excess land and facilities held for sale, and GNMA loans subject to ability to repurchase.
(b) Excludes accretion from acquired/purchased loans and collection of intererest income on nonaccrual loans.

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 2

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
															Q3 2017			Q3 2017
															vs.			vs.
	2017									2016					Q2 2017			Q3 2016
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter		Percent variance			Percent variance
Interest income:
Interest and fees on loans	$	44,367		$	29,350		$	29,006		$	28,125		$	26,550		51.17	%		67.11	%
Interest on securities
Taxable		2,399			2,589			2,567			2,350			2,402		-7.34	%		-0.12	%
Tax-exempt		988			1,068			1,040			947			875		-7.49	%		12.91	%
Other		661			271			276			145			178		143.91	%		271.35	%
Total interest income		48,415			33,278			32,889			31,567			30,005		45.49	%		61.36	%
Interest expense:
Deposits
Demand and savings accounts					1,703			1,531			1,387			1,340		66.12	%		111.12	%
Time deposits		1,125			604			583			551			575		86.26	%		95.65	%
Short-term borrowings		9			12			10			20			13		-25.00	%		-30.77	%
Long-term debt		842			532			514			577			460		58.27	%		83.04	%
Total interest expense		4,805			2,851			2,638			2,535			2,388		68.54	%		101.21	%
Net interest income		43,610			30,427			30,251			29,032			27,617		43.33	%		57.91	%
Provision for loan losses		(784	)		(865	)		(257	)		(752	)		71		-9.36	%		-1204.23	%
Net interest income after provision for loan losses					31,292			30,508			29,784			27,546		41.87	%		61.16	%
Noninterest income:
Mortgage banking income		31,334			30,239			25,080			26,177			36,938		3.62	%		-15.17	%
Service charges on deposit accounts					1,796			1,766			1,880			1,870		13.81	%		9.30	%
ATM and interchange fees		2,222			2,085			2,047			2,035			1,814		6.57	%		22.49	%
Investment services and trust income					903			814			829			857		19.38	%		25.79	%
Gain from securities, net		254			29			1			-			416		775.86	%		-38.94	%
(Loss) gain on sales or write-downs of other real estate owned					23			748			(222	)		1,646		-1700.00	%		-122.36	%
Gain (loss) from other assets		54			39			-			(127	)		7		38.46	%		671.43	%
Other income		1,202			543			631			760			414		121.36	%		190.34	%
Total noninterest income		37,820			35,657			31,087			31,332			43,962		6.07	%		-13.97	%
Total revenue		81,430			66,084			61,338			60,364			71,579		23.22	%		13.76	%
Noninterest expenses:
Salaries, commissions and employee benefits					30,783			29,006			29,506			34,010		13.03	%		2.31	%
Occupancy and equipment expense					3,307			3,109			3,044			3,171		7.02	%		11.61	%
Legal and professional fees		1,512			1,033			1,428			810			816		46.37	%		85.29	%
Data processing		1,761			1,460			1,501			1,490			1,294		20.62	%		36.09	%
Merger and conversion		15,711			767			487			-			1,122		1948.37	%		1300.27	%
Amortization of core deposit intangibles					123			392			527			526		353.66	%		6.08	%
Amortization of mortgage servicing rights					-			-			2,100			2,796		0.00	%		-100.00	%
(Recovery of) impairment of mortgage servicing rights					-			-			(3,411	)		2,402		0.00	%		-100.00	%
Loss on sale of mortgage servicing rights					249			-			4,447			-		-100.00	%		0.00	%
Regulatory fees and deposit insurance assessments					494			435			471			465		11.13	%		18.06	%
Software license and maintenance fees					364			457			513			503		43.68	%		3.98	%
Advertising		3,493			3,343			2,932			2,537			2,220		4.49	%		57.34	%
Other expense		6,783			7,213			6,670			5,285			6,204		-5.96	%		9.33	%
Total noninterest expense		69,224			49,136			46,417			47,319			55,529		40.88	%		24.66	%
Net income before income taxes					17,813			15,178			13,797			15,979		-27.08	%		-18.71	%
Income tax expense		4,602			6,574			5,425			4,787			14,772		-30.00	%		-68.85	%
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	1,207		-25.37	%		594.95	%
Weighted average common shares outstanding:
Basic		30,004,952			25,741,968			24,138,437			23,977,028			18,259,128
Fully diluted		30,604,537			26,301,458			24,610,991			24,500,943			18,332,192
Earnings per share
Basic	$	0.28		$	0.44		$	0.40		$	0.38		$	0.07
Fully diluted	$	0.27		$	0.43		$	0.40		$	0.37		$	0.07
Pro Forma (C Corp basis):
Income tax expense	$	4,602		$	6,574		$	5,425		$	4,787		$	5,946		-30.00	%		-22.60	%
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	10,033		-25.37	%		-16.40	%
Earnings per share
Basic	$	0.28		$	0.44		$	0.40		$	0.38		$	0.55
Fully diluted	$	0.27		$	0.43		$	0.40		$	0.37		$	0.55

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 3

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
													Q3 2017
	For the nine months ended						For the year ended						vs.
	September 30,						December 31,						Q3 2016
	2017			2016			2016			2015			Percent variance
Interest income:
Interest and fees on loans	$	102,723		$	77,740		$	105,865		$	87,723			32.14	%
Interest on securities
Taxable		7,555			8,296			10,646			11,783			-8.93	%
Tax-exempt		3,096			2,425			3,372			2,808			27.67	%
Other		1,208			466			611			468			159.23	%
Total interest income		114,582			88,927			120,494			102,782			28.85	%
Interest expense:
Deposits
Demand and savings accounts		6,063			4,026			5,413			4,733			50.60	%
Time deposits		2,312			1,378			1,929			1,559			67.78	%
Short-term borrowings		31			101			121			712			-69.31	%
Long-term debt		1,888			1,504			2,081			1,906			25.53	%
Total interest expense		10,294			7,009			9,544			8,910			46.87	%
Net interest income		104,288			81,918			110,950			93,872			27.31	%
Provision for loan losses		(1,906	)		(727	)		(1,479	)		(3,064	)		162.17	%
Net interest income after provision for loan losses		106,194			82,645			112,429			96,936			28.49	%
Noninterest income:
Mortgage banking income		86,653			91,574			117,751			70,190			-5.37	%
Service charges on deposit accounts		5,606			6,129			8,009			7,389			-8.53	%
ATM and interchange fees		6,354			5,756			7,791			6,536			10.39	%
Investment services and trust income		2,795			2,508			3,337			3,260			11.44	%
Bargain purchase gain		-			-			-			2,794			0.00	%
Gain from securities, net		284			4,407			4,407			1,844			-93.56	%
Gain (loss) on sales or write-downs of other real estate owned		403			1,504			1,282			(317	)		-73.20	%
Gain (loss) from other assets		93			24			(103	)		(393	)		287.50	%
Other income		2,376			1,451			2,211			1,077			63.75	%
Total noninterest income		104,564			113,353			144,685			92,380			-7.75	%
Total revenue		208,852			195,271			255,635			186,252			6.95	%
Noninterest expenses:
Salaries, commissions and employee benefits		94,584			84,486			113,992			84,214			11.95	%
Occupancy and equipment expense		9,955			9,567			12,611			10,777			4.06	%
Legal and professional fees		3,973			2,704			3,514			3,355			46.93	%
Data processing		4,722			2,691			4,181			2,053			75.47	%
Merger and conversion		16,965			3,268			3,268			3,543			419.12	%
Amortization of core deposit intangibles		1,073			1,605			2,132			1,731			-33.15	%
Amortization of mortgage servicing rights		-			6,221			8,321			2,601			-100.00	%
Impairment of mortgage servicing rights		-			8,089			4,678			194			-100.00	%
Loss on sale of mortgage servicing rights		249			-			4,447			-			100.00	%
Regulatory fees and deposit insurance assessments		1,478			1,481			1,952			2,190			-0.20	%
Software license and maintenance fees		1,344			2,361			2,874			1,986			-43.07	%
Advertising		9,768			8,071			10,608			7,866			21.03	%
Other expense		20,666			16,927			22,212			17,982			22.09	%
Total noninterest expense		164,777			147,471			194,790			138,492			11.74	%
Net income before income taxes		45,981			48,527			62,324			50,824			-5.25	%
Income tax expense		16,601			16,946			21,733			2,968			-2.04	%
Net income	$	29,380		$	31,581		$	40,591		$	47,856			-6.97	%
Weighted average common shares outstanding:
Basic		26,649,942			17,542,335			19,165,182			17,180,000
Fully diluted		27,198,373			17,566,867			19,312,174			17,180,000
Earnings per share
Basic	$	1.10		$	1.80		$	2.12		$	2.79
Fully diluted	$	1.08		$	1.80		$	2.10		$	2.79
Pro Forma:
Income tax expense	$	16,601		$	18,115		$	22,902		$	17,829			-8.36	%
Net income	$	29,380		$	30,412		$	39,422		$	32,995			-3.39	%
Earnings per share
Basic	$	1.10		$	1.73		$	2.06		$	1.92
Fully diluted	$	1.08		$	1.73		$	2.04		$	1.92

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 4

Consolidated Balance Sheets
(Unaudited)
(In Thousands, %)
													Annualized
													Q3 2017			Q3 2017
													vs.			vs.
	2017							2016					Q2 2017			Q3 2016
	Third Quarter		Second Quarter		First Quarter			Fourth Quarter			Third Quarter		Percent variance			Percent variance
ASSETS
Cash and due from banks	$	67,070	$	59,112	$	53,748		$	50,157		$	51,292		53.41	%		30.76	%
Federal funds sold		4,470		16,238		18,512			13,037			8,848		-287.52	%		-49.48	%
Interest bearing deposits in financial institutions		25,625		110,928		57,292			73,133			57,157		-305.09	%		-55.17	%
Cash and cash equivalents		97,165		186,278		129,552			136,327			117,297		-189.79	%		-17.16	%
Investments:
Available-for-sale securities, at fair value		543,282		553,357		567,886			582,183			553,357		-7.22	%		-1.82	%
Federal Home Loan Bank stock, at cost		11,152		7,743		7,743			7,743			6,528		174.67	%		70.83	%
Loans held for sale, at fair value		466,369		427,416		365,173			507,442			486,601		36.16	%		-4.16	%
Loans		3,114,562		1,970,974		1,900,995			1,848,784			1,793,343		230.19	%		73.67	%
Less: allowance for loan losses		23,482		23,247		22,898			21,747			23,290		4.01	%		0.82	%
Net loans		3,091,080		1,947,727		1,878,097			1,827,037			1,770,053		232.89	%		74.63	%
Premises and equipment, net		85,550		66,392		66,108			66,651			65,882		114.48	%		29.85	%
Other real estate owned, net		13,812		6,370		6,811			7,403			8,964		463.51	%		54.08	%
Interest receivable		11,218		7,012		7,247			7,241			7,040		237.98	%		59.35	%
Mortgage servicing rights, net		63,046		48,464		47,593			32,070			46,291		119.37	%		36.19	%
Goodwill		138,910		46,867		46,867			46,867			46,867		779.16	%		196.39	%
Core deposit intangible, net		12,550		4,048		4,171			4,563			5,090		833.27	%		146.56	%
Other assets		47,809		44,896		39,211			51,354			73,210		25.74	%		-34.70	%
Total assets	$	4,581,943	$	3,346,570	$	3,166,459		$	3,276,881		$	3,187,180		146.45	%		43.76	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits
Noninterest-bearing	$	924,773	$	715,391	$	696,112		$	697,072		$	726,248		116.12	%		27.34	%
Interest-bearing		1,948,600		1,471,650		1,473,535			1,449,382			1,382,981		128.58	%		40.90	%
Savings deposits		177,949		143,951		142,019			134,077			131,819		93.70	%		34.99	%
Customer time deposits		562,898		395,068		388,202			389,500			397,492		168.54	%		41.61	%
Brokered and internet time deposits		104,318		1,533		1,331			1,531			1,532		26600.67	%		6709.27	%
Total time deposits		667,216		396,601		389,533			391,031			399,024		270.71	%		67.21	%
Total deposits		3,718,538		2,727,593		2,701,199			2,671,562			2,640,072		144.14	%		40.85	%
Securities sold under agreements to repurchase		14,556		16,343		18,130			21,561			29,137		-43.38	%		-50.04	%
Short-term borrowings		52,766		—		—			150,000			80,000		100.00	%		0.00	%
Long-term debt		143,533		43,790		44,552			44,892			45,291		903.68	%		216.91	%
Accrued expenses and other liabilities		80,022		49,327		60,436			58,368			63,572		246.88	%		25.88	%
Total liabilities		4,009,415		2,837,053		2,824,317			2,946,383			2,858,072		163.95	%		40.28	%
Shareholders' equity:
Common stock, $1 par value		30,527		28,968		24,155			24,108			23,975		21.35	%		27.33	%
Additional paid-in capital		416,651		363,870		214,160			213,480			211,765		57.55	%		96.75	%
Retained earnings		123,779		115,391		104,152			93,784			84,774		28.84	%		46.01	%
Accumulated other comprehensive income (loss), net		1,571		1,288		(325	)		(874	)		8,594		87.17	%		-81.72	%
Total shareholders' equity		572,528		509,517		342,142			330,498			329,108		49.06	%		73.96	%
Total liabilities and shareholders' equity	$	4,581,943	$	3,346,570	$	3,166,459		$	3,276,881		$	3,187,180		146.45	%		43.76	%

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 5

Net Assets Acquired from the Clayton Banks
As of July 31, 2017
(Unaudited)
(In Thousands)
	July 31, 2017
	Historical Cost Basis			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	(a)
FHLB stock		3,408			-				3,408
Loans		1,075,441			(14,933	)	(b)		1,060,508
Allowance for loan losses		(19,985	)		19,985				-
Premises and Equipment		15,011			4,469				19,480
Other real estate owned		5,880			644				6,524
Goodwill		8,425			(8,425	)			-
Core deposit intangible		-			9,060				9,060
Other assets (c)		7,263			(759	)			6,504	(c)
Total Assets	$	1,203,610		$	10,426			$	1,214,036
Liabilities
Interest-bearing deposits		669,745			309				670,054
Non-interest bearing deposits		309,464			-				309,464
Borrowings (d)		84,110			721				84,831	(d)
Accrued expenses and other liabilities									5,246
Total Liabilities	$	1,067,897		$	1,698			$	1,069,595
Net assets acquired	$	135,713		$	8,728			$	144,441
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					144,441
Goodwill					92,043
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 $26.4 million and reversal of existing loan discount and other yield adjustments of $11.5 million.
(c) Includes lease intangible of $0.6 million.
(d) Paid off prior to September 30, 2017.

FB Financial Corporation

Third 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
	September 30, 2017								June 30, 2017
	Average balances			Interest income/ expense		Average yield/ rate			Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans(1)	$	2,705,265		$	40,242		5.90	%	$	1,942,667		$	25,115		5.19	%
Loans held for sale		410,434			4,167		4.03	%		390,596			4,276		4.39	%
Securities:
Taxable		425,281			2,399		2.24	%		442,309			2,589		2.35	%
Tax-exempt(1)		117,429			1,617		5.46	%		122,553			1,758		5.75	%
Total Securities(1)		542,710			4,016		2.94	%		564,862			4,347		3.09	%
Federal funds sold		39,363			76		0.77	%		8,456			23		1.09	%
Interest-bearing deposits with other financial institutions		108,185			448		1.64	%		68,460			158		0.93	%
FHLB stock		8,892			137		6.11	%		7,743			90		4.66	%
Total interest earning assets(1)		3,814,849			49,086		5.10	%		2,982,784			34,009		4.57	%
Noninterest Earning Assets:
Cash and due from banks		55,485								50,004
Allowance for loan losses		(23,875	)							(22,813	)
Other assets		316,019								214,808
Total noninterest earning assets		347,629								241,999
Total assets	$	4,162,478							$	3,224,783
Interest-bearing liabilities:
Interest bearing deposits:
Customer time deposits	$	493,992		$	825		0.66	%	$	389,390		$	602		0.62	%
Broker and internet time deposits		95,207			300		1.25	%		1,522			2		0.53	%
Time deposits	$	589,199		$	1,125		0.76	%	$	390,912		$	604		0.62	%
Money market		1,023,612			1,722		0.67	%		723,020			889		0.49	%
Negotiable order of withdrawals		788,238			1,040		0.52	%		711,099			759		0.43	%
Savings deposits		166,184			67		0.16	%		143,357			55		0.15	%
Total interest bearing deposits		2,567,233			3,954		0.61	%		1,968,388			2,307		0.47	%
Other interest-bearing liabilities:
FHLB advances		86,795			428		1.96	%		52,569			192		1.46	%
Other borrowings		15,828			9		0.23	%		17,315			12		0.28	%
Long-term debt		31,520			414		5.21	%		30,930			340		4.41	%
Total other interest-bearing liabilities		134,143			851		2.52	%		100,814			544		2.16	%
Total Interest-bearing liabilities		2,701,376			4,805		0.71	%		2,069,202			2,851		0.55	%
Noninterest bearing liabilities:
Demand deposits		871,973								724,419
Other liabilities		38,720								32,357
Total noninterest-bearing liabilities		910,693								756,776
Total liabilities		3,612,069								2,825,978
Shareholders' equity		550,409								398,805
Total liabilities and shareholders' equity	$	4,162,478							$	3,224,783
Net interest income  (1)				$	44,281							$	31,158
Interest rate spread (1)							4.49	%							4.10	%
Net interest margin (1)							4.61	%							4.19	%
Net interest margin (excluding accretion and nonaccrual interest collections) (1)							4.33	%							4.03	%
Average interest-earning assets to average interest-bearing liabilities							141.2	%							144.2	%
Tax equivalent adjustment				$	671							$	731
Loan yield components:
Contractual interest rate on loans held for investment (1)				$	34,634		5.08	%				$	22,418		4.63	%
Origination and other loan fee income					2,610		0.38	%					1,447		0.30	%
Accretion on purchased loans					1,554		0.23	%					848		0.17	%
Nonaccrual interest collections					1,116		0.16	%					315		0.07	%
Syndication fee income					328		0.05	%					87		0.02	%
Total loan yield				$	40,242		5.90	%				$	25,115		5.19	%
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%

FB Financial Corporation

Third 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
	March 31, 2017								December 31, 2016								September 30, 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)	$	1,869,951		$	25,090		5.44	%	$	1,811,136		$	24,001		5.27	%	$	1,750,300		$	23,633		5.37	%
Loans held for sale		381,932			3,957		4.20	%		510,219			4,167		3.25	%		409,736			2,948		2.86	%
Securities:
Taxable		456,634			2,567		2.28	%		455,275			2,350		2.05	%		454,601			2,426		2.12	%
Tax-exempt(1)		117,615			1,711		5.90	%		108,230			1,558		5.73	%		100,947			1,440		5.67	%
Total Securities(1)		574,249			4,278		3.02	%		563,505			3,908		2.76	%		555,548			3,866		2.77	%
Federal funds sold		14,327			27		0.76	%		10,192			15		0.59	%		14,748			18		0.49	%
Interest-bearing deposits with other financial institutions		82,981			171		0.84	%		60,438			65		0.43	%		32,262			71		0.88	%
FHLB stock		7,743			78		4.09	%		6,931			65		3.73	%		6,528			65		3.96	%
Total interest earning assets(1)		2,931,183			33,601		4.65	%		2,962,421			32,221		4.33	%		2,769,122			30,601		4.40	%
Noninterest Earning Assets:
Cash and due from banks		51,614								43,883								46,440
Allowance for loan losses		(21,955	)							(23,283	)							(23,493	)
Other assets		211,307								223,377								223,601
Total noninterest earning assets		240,966								243,977								246,548
Total assets	$	3,172,149							$	3,206,398							$	3,015,670
Interest-bearing liabilities:
Interest bearing deposits:
Customer time deposits	$	388,744		$	582		0.61	%	$	393,205		$	551		0.56	%	$	397,669		$	574		0.57	%
Broker and internet time deposits		1,468			1		0.28	%		1,534			—		0.00	%		2,419			1		0.16	%
Time deposits	$	390,212		$	583		0.61	%	$	394,739		$	551		0.56	%	$	400,088		$	575		0.57	%
Money market		729,934			785		0.44	%		693,790			662		0.38	%		622,430			650		0.42	%
Negotiable order of withdrawals		718,957			695		0.39	%		679,100			674		0.39	%		683,527			639		0.37	%
Savings deposits		136,627			51		0.15	%		132,016			51		0.15	%		130,864			51		0.16	%
Total interest bearing deposits		1,975,730			2,114		0.43	%		1,899,645			1,938		0.41	%		1,836,909			1,915		0.41	%
Other interest-bearing liabilities:
FHLB advances		60,569			191		1.28	%		117,825			258		0.87	%		58,803			171		1.16	%
Other borrowings		18,884			10		0.21	%		25,545			22		0.31	%		30,515			13		0.17	%
Long-term debt		30,930			323		4.24	%		32,609			317		3.89	%		39,910			289		2.88	%
Total other interest-bearing liabilities		110,383			524		1.93	%		175,979			597		1.35	%		129,228			473		1.46	%
Total Interest-bearing liabilities		2,086,113			2,638		0.51	%		2,075,624			2,535		0.49	%		1,966,137			2,388		0.48	%
Noninterest bearing liabilities:
Demand deposits		708,612								768,018								738,328
Other liabilities		44,246								43,770								34,656
Total noninterest-bearing liabilities		752,858								811,788								772,984
Total liabilities		2,838,971								2,887,412								2,739,121
Shareholders' equity		333,178								318,986								276,549
Total liabilities and shareholders' equity	$	3,172,149							$	3,206,398							$	3,015,670
Net interest income (1)				$	30,963							$	29,686							$	28,213
Interest rate spread (1)							4.22	%							3.92	%							3.98	%
Net interest margin (1)							4.28	%							3.99	%							4.05	%
Net interest margin (excluding accretion and nonaccrual interest recoveries) (1)							4.04	%							3.90	%							3.88	%
Average interest-earning assets to average interest-bearing liabilities							140.5	%							142.7	%							140.8	%
Tax equivalent adjustment				$	712							$	654							$	596
Loan yield components:
Contractual interest rate on loans held for investment (1)				$	21,461		4.65	%				$	21,456		4.71	%				$	20,106		4.57	%
Origination and other loan fee income					1,497		0.32	%					1,868		0.41	%					2,306		0.52	%
Accretion on purchased loans					1,160		0.25	%					343		0.08	%					814		0.19	%
Nonaccrual interest collections					619		0.13	%					334		0.07	%					407		0.09	%
Syndication fee income					353		0.08	%					—		—						—		—
Total loan yield				$	25,090		5.44	%				$	24,001		5.27	%				$	23,633		5.37	%
(1) Includes tax equivalent adjustment using combined marginal tax rate of 39.225%

FB Financial Corporation

Third 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 Nine Months Ended								For the Nine Months Ended
	September 30, 2017								September 30, 2016
	Average balances			Interest income/ expense		Average yield/ rate			Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans(1)	$	2,095,419		$	90,447		5.77	%	$	1,730,535		$	70,781		5.46	%
Loans held for sale		394,425			12,400		4.20	%		313,044			7,101		3.03	%
Securities:
Taxable		441,063			7,555		2.29	%		495,092			8,296		2.24	%
Tax-exempt(1)		118,982			5,086		5.72	%		86,368			3,990		6.17	%
Total Securities(1)		560,045			12,641		3.02	%		581,460			12,286		2.82	%
Federal funds sold		18,127			126		0.93	%		13,524			49		0.48	%
Interest-bearing deposits with other financial institutions		85,398			777		1.22	%		48,980			220		0.60	%
FHLB stock		8,130			305		5.02	%		6,528			197		4.03	%
Total interest earning assets(1)		3,161,544			116,696		4.93	%		2,694,071			90,634		4.49	%
Noninterest Earning Assets:
Cash and due from banks		51,695								47,409
Allowance for loan losses		(22,953	)							(24,222	)
Other assets		260,517								213,948
Total noninterest earning assets		289,259								237,135
Total assets	$	3,450,803							$	2,931,206
Interest-bearing liabilities:
Interest bearing deposits:
Money market	$	806,036		$	3,396		0.56	%	$	588,283		$	1,630		0.52	%
Negotiable order of withdrawals		726,667			2,494		0.46	%		706,894			1,969		0.37	%
Savings deposits		146,291			173		0.16	%		178,817			427		0.37	%
Customer time deposits		413,739			2,010		0.65	%		351,120			1,375		0.52	%
Broker and internet time deposits		22,400			302		1.80	%		2,525			3		0.16	%
Time deposits		436,139			2,312		0.71	%		353,645			1,378		0.32	%
Total interest bearing deposits		2,115,133			8,375		0.53	%		1,827,639			5,404		0.39	%
Other interest-bearing liabilities:
FHLB advances		66,101			811		1.64	%		14,957			430		3.84	%
Other borrowings		17,296			31		0.24	%		88,838			48		0.07	%
Long-term debt		31,129			1,077		4.63	%		40,638			1,127		3.70	%
Total other interest-bearing liabilities		114,526			1,919		2.24	%		139,433			1,605		1.54	%
Total Interest-bearing liabilities	$	2,229,659		$	10,294		0.62	%	$	1,967,072		$	7,009		0.48	%
Noninterest bearing liabilities:
Demand deposits	$	754,819							$	672,670
Other liabilities		38,065								31,980
Total noninterest-bearing liabilities		792,884								704,650
Total liabilities		3,022,543								2,671,722
Shareholders' equity		428,260								259,484
Total liabilities and shareholders' equity	$	3,450,803							$	2,931,206
Net interest income (1)				$	106,402							$	83,625
Interest rate spread (1)							4.41	%							4.10	%
Net interest margin (1)							4.50	%							4.15	%
Net interest margin (excluding accretion and nonaccrual interest recoveries) (1)							0.00	%							3.99	%
Average interest-earning assets to average interesting-bearing liabilities							141.8	%							137.0	%
Tax equivalent adjustment				$	2,114							$	1,707
Loan yield components:
Contractual interest rate on loans held for investment (1)				$	78,513		5.01	%				$	60,640		4.68	%
Origination and other loan fee income					5,554		0.35	%					5,380		0.42	%
Accretion on purchased loans					3,562		0.23	%					3,195		0.25	%
Nonaccrual interest collections					2,050		0.13	%					741		0.06	%
Syndicated fee income					768		0.05	%					825		0.06	%
Total loan yield				$	90,447		5.77	%				$	70,781		5.46	%
(1) Includes tax equivalent adjustment using combined rate of 39.225%

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 9

Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands)
	2017						2016
	Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter
Loans by market
Metropolitan	$	1,932,934	$	1,461,129	$	1,402,189	$	1,352,181	$	1,296,673
Community		779,810		476,320		473,453		468,245		465,946
Specialty lending and other		401,818		33,525		25,353		28,358		30,724
Total	$	3,114,562	$	1,970,974	$	1,900,995	$	1,848,784	$	1,793,343
Deposits by market
Metropolitan		2,180,673		1,598,574		1,553,931		1,554,929	$	1,496,718
Community		1,363,701		1,085,345		1,109,043		1,072,242		1,085,126
Mortgage and other (1)		174,164		43,674		38,225		44,391		58,228
Total	$	3,718,538	$	2,727,593	$	2,701,199	$	2,671,562	$	2,640,072
(1) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale deposits

FB Financial Corporation

Third Quarter 2017

Supplemental Financial Information

Page 10

Segment Data
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2017									2016
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Banking segment
Net interest income	$	43,741		$	29,999		$	29,856		$	28,959		$	28,142
Provision for loan losses		(784	)		(865	)		(257	)		(752	)		71
Mortgage banking income- retail footprint		7,498			7,118			5,666			3,202			8,981
Other noninterest income		6,486			5,418			6,007			5,155			7,024
Other noninterest mortgage banking expenses		6,216			5,368			4,836			1,950			6,215
Merger and conversion expense		15,711			767			487			-			1,122
Other noninterest expense		27,540			23,199			23,424			23,080			24,448
Pre-tax income after allocations	$	9,042		$	14,066		$	13,039		$	13,038		$	12,291
Total assets		4,056,901			2,878,437			2,705,118			2,752,773			2,661,116
Intracompany funding income  included in net interest income		4,274			3,831			3,551			4,081			3,473
Core efficiency ratio*		56.16	%		60.42	%		64.41	%		62.57	%		65.22	%
Mortgage segment
Net interest income	$	(131	)	$	428		$	395		$	40		$	(525	)
Provision for loan losses		-			-			-			-			-
Noninterest income		23,836			23,121			19,414			22,975			27,957
Noninterest expense		19,757			19,802			17,670			22,256			23,744
Direct contribution	$	3,948		$	3,747		$	2,139		$	759		$	3,688
Total assets		525,042			468,133			461,341			524,108			526,064
Intracompany funding expense included in net interest income		4,274			3,831			3,551			4,081			3,473
Core efficiency ratio*		79.89	%		78.33	%		88.73	%		92.50	%		76.34	%
Interest rate lock commitments volume during the period
Consumer direct	$	786,034		$	780,179		$	616,330		$	645,896		$	1,019,557
Third party origination (TPO)		269,473			296,034			258,996			228,982			248,092
Retail		325,295			379,530			282,698			256,812			329,527
Correspondent		619,953			701,846			440,206			331,622			221,562
Total	$	2,000,755		$	2,157,589		$	1,598,230		$	1,463,312		$	1,818,738
Interest rate lock commitments pipeline (period end)
Consumer direct	$	261,617		$	222,504		$	158,393		$	307,699		$	573,636
Third party origination (TPO)		93,353			88,938			101,509			79,967			97,353
Retail		101,196			119,158			93,184			77,033			107,419
Correspondent		84,506			115,919			95,923			68,221			72,092
Total	$	540,672		$	546,519		$	449,009		$	532,920		$	850,500
Mortgage sales
Consumer direct	$	485,931		$	498,997		$	647,535		$	777,169		$	607,905
Third party origination (TPO)		194,164			209,185			199,160			191,420			194,440
Retail		71,358			66,640			61,425			66,967			65,970
Retail footprint		222,786			200,157			186,988			195,280			191,195
Reverse		17,520			17,870			22,337			24,422			18,946
Correspondent		646,003			542,410			373,822			291,651			91,306
Total	$	1,637,762		$	1,535,259		$	1,491,267		$	1,546,909		$	1,169,762
Gains and fees from origination and sale of mortgage loans held for sale	$	29,570		$	23,920		$	27,577		$	29,518		$	25,477
Net change in fair value of loans held for sale and derivatives		(806	)		5,412			(4,744	)		(7,092	)		7,800
Change in fair value of mortgage servicing rights		(893	)		(1,840	)		(501	)		-			-
Mortgage servicing income		3,463			2,747			2,748			3,751			3,661
Total mortgage banking income	$	31,334		$	30,239		$	25,080		$	26,177		$	36,938
Mortgage sale margin (a)		1.81	%		1.56	%		1.85	%		1.91	%		2.18	%
*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

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Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2017																		2016
	September 30, 2017			% of Total			June 30, 2017			% of Total			March 31, 2017			% of Total			December 31, 2016			% of Total			September 30, 2016			% of Total
Loan portfolio
Commercial and industrial	$	731,588			23	%	$	423,704			21	%	$	399,333			21	%	$	386,233			21	%	$	360,816			20	%
Construction		435,414			14	%		282,727			14	%		267,998			14	%		245,905			13	%		234,486			13	%
Residential real estate:
1-to-4 family mortgage		459,467			15	%		307,152			16	%		302,166			16	%		294,924			16	%		286,605			16	%
Residential line of credit		188,392			6	%		177,783			9	%		177,928			9	%		177,190			10	%		173,898			10	%
Multi-family mortgage		74,004			2	%		52,810			3	%		45,244			2	%		44,977			2	%		54,129			3	%
Commercial real estate:
Owner occupied		473,395			15	%		371,462			19	%		359,120			19	%		357,346			19	%		370,326			21	%
Non-owner occupied		521,416			17	%		273,285			14	%		273,716			15	%		267,902			15	%		237,550			13	%
Consumer and other		230,886			7	%		82,051			4	%		75,490			4	%		74,307			4	%		75,533			4	%
Total loans held for investment	$	3,114,562			100	%	$	1,970,974			100	%	$	1,900,995			100	%	$	1,848,784			100	%	$	1,793,343			100	%
Allowance for loan losses rollforward summary
Allowance for loan losses at the beginning of the period	$	23,247					$	22,898					$	21,747					$	23,290					$	23,734
Charge-off's		(575	)					(791	)					(442	)					(1,230	)					(714	)
Recoveries		1,594						2,005						1,850						439						199
Provision for loan losses		(784	)					(865	)					(257	)					(752	)					71
Allowance for loan losses at the end of the period	$	23,482					$	23,247					$	22,898					$	21,747					$	23,290
Allowance for loan losses as a percentage of total loans held for investment		0.75	%					1.18	%					1.20	%					1.18	%					1.30	%
Charge-offs
Commercial and Industrial	$	(221	)				$	(131	)				$	(169	)				$	(6	)				$	(358	)
Construction		-						-						(6	)					-						-
Residential real estate:
1-to-4 family mortgage		(32	)					(35	)					(88	)					(5	)					(166	)
Residential line of credit		(9	)					(195	)					-						(28	)					(29	)
Multi-family mortgage		-						-						-						-						-
Commercial real estate:
Owner occupied		(64	)					-						-						(156	)					-
Non-owner occupied		-						-						-						(527	)					-
Consumer and other		(249	)					(430	)					(179	)					(508	)					(161	)
Total Charge Offs:		(575	)					(791	)					(442	)					(1,230	)					(714	)
Recoveries
Commercial and Industrial		200						1,511						83						44						8
Construction		1,022						29						29						79						32
Residential real estate:
1-to-4 family mortgage		86						14						26						18						2
Residential line of credit		157						155						56						31						36
Multi-family mortgage		-						-						-						-						-
Commercial real estate:
Owner occupied		24						11						4						125						4
Non-owner occupied		1						2						1,639						168						22
Consumer and other		104						283						13						(26	)					95
Total Recoveries:		1,594						2,005						1,850						439						199
Net recoveries (charge-off's)	$	1,019					$	1,214					$	1,408					$	(791	)				$	(515	)
Net recoveries (charge-off's) as a percentage of average total loans		0.15	%					0.25	%					0.31	%					(0.17	%)					(0.12	%)
Loans classified as substandard	$	59,588					$	37,858					$	37,556					$	38,585					$	40,056
Purchased credit impaired loans	$	92,455					$	15,733					$	16,099					$	16,058					$	16,639
Nonperforming assets (b)
Past due 90 days or more and accruing interest	$	1,238					$	1,619					$	1,590					$	1,329					$	1,342
Nonaccrual		7,749						8,327						7,706						8,729						9,622
Total nonperforming loans held for investment	$	8,987					$	9,946					$	9,296					$	10,058					$	10,964
Loans held for sale (a)		13,575						-						-						-						-
Other real estate owned- foreclosed		10,205						6,370						6,811						7,403						8,964
Other real estate owned- acquired excess facilities		3,607						-						-						-						-
Other assets		3,967						3,154						1,654						1,654						1,654
Total nonperforming assets	$	40,341					$	19,470					$	17,761					$	19,115					$	21,582
Total nonperforming loans as a percentage of loans held for investment		0.29	%					0.50	%					0.49	%					0.57	%					0.61	%
Total nonperforming assets as a percentage of total assets		0.88	%					0.58	%					0.56	%					0.58	%					0.68	%
Total accruing loans over 90 days delinquent as a percentage of total assets		0.03	%					0.05	%					0.05	%					0.04	%					0.04	%
Loans restructured as troubled debt restructurings	$	8,095					$	8,488					$	8,681					$	8,802					$	10,125
Troubled debt restructurings as a percentage of loans held for investment		0.26	%					0.43	%					0.46	%					0.48	%					0.56	%
(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

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Supplemental Financial Information

Page 12

Capital Ratios
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets:	September 30, 2017			December 31, 2016
Total Equity	$	572,528		$	330,498
Less:
Goodwill		138,910			46,867
Other intangibles		13,122			4,563
Tangible Common Equity	$	420,496		$	279,068
Total Assets	$	4,581,943		$	3,276,881
Less:
Goodwill		138,910			46,867
Other intangibles		13,122			4,563
Tangible Assets	$	4,429,911		$	3,225,451
Total Common Equity to Total Assets		12.50	%		10.09	%
Tangible Common Equity to Tangible Assets*		9.49	%		8.65	%
	September 30, 2017			December 31, 2016
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1 Capital	$	427,878		$	287,146
Tier 1 Capital	$	457,878		$	317,146
Total Capital	$	481,360		$	338,893
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1		10.83	%		11.04	%
Tier 1 Risk-Based		11.59	%		12.19	%
Total Risk-Based		12.19	%		13.03	%
Tier 1 Leverage		11.35	%		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.

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Page 13

Investment Portfolio
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2017															2016
Securities available for sale (at fair value)	Third Quarter					Second Quarter					First Quarter					Fourth Quarter					Third Quarter
Debt securities
U.S. government agency securities	$	992		0	%	$	990		0	%	$	987		0	%	$	985		0	%	$	2,501		0	%
Mortgage-backed securities - residential		418,794		77	%		410,708		74	%		425,943		75	%		443,908		76	%		433,564		78	%
Municipals, tax exempt		106,950		20	%		122,698		22	%		120,560		21	%		116,923		20	%		104,112		19	%
Treasury securities		8,819		2	%		10,310		2	%		11,773		2	%		11,757		2	%		4,506		1	%
Total debt securities		535,555		99	%		544,706		98	%		559,263		98	%		573,573		98	%		544,683		98	%
Equity securities		7,727		1	%		8,651		2	%		8,623		2	%		8,610		2	%		8,674		2	%
Total securities available-for-sale	$	543,282		100	%	$	553,357		100	%	$	567,886		100	%	$	582,183		100	%	$	553,357		100	%
Securities available for sale to total assets		11.86	%				16.54	%				17.93	%				17.77	%				17.36	%

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Page 14

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2017									2016
Pro forma core net income	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Pre-tax net income	$	12,990		$	17,813		$	15,178		$	13,797		$	15,979
Non-core items:
Noninterest income
Less change in fair value on mortgage servicing rights, net		(893	)		(1,840	)		(501	)		-			-
Less gain from securities, net		254			29			1			-			416
Less (loss) gain on sales or write-downs of other real estate owned and other assets		(314	)		62			748			(349	)		1,653
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		15,711			767			487			-			1,122
Plus (recovery of) impairment of mortgage servicing rights		-			-			-			(3,411	)		2,402
Plus loss on sale of mortgage servicing rights		-			249			-			4,447			-
Pre tax core net income	$	29,654		$	20,578		$	16,052		$	16,223		$	20,607
Pro forma core income tax expense		11,138			7,659			5,768			5,739			7,672
Pro forma core net income	$	18,516		$	12,919		$	10,284		$	10,484		$	12,935
Weighted average common shares outstanding fully diluted		30,604,537			26,301,458			24,610,991			24,500,943			18,332,192
Pro forma core diluted earnings per share
Diluted earning per share	$	0.27		$	0.43		$	0.40		$	0.37		$	0.07
Non-core items:
Noninterest income
Less change in fair value on mortgage servicing rights		(0.03	)		(0.07	)		(0.02	)		-			-
Less gain from securities, net		0.01			0.00			0.00			0.00			0.02
Less (loss) gain on sales or write-downs of other real estate owned and other assets		(0.01	)		0.00			0.03			(0.01	)		0.09
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		0.51			0.03			0.02			-			0.06
Plus (recovery of) impairment of mortgage servicing rights		-			-			-			(0.14	)		0.13
Plus loss on sale of mortgage servicing rights		-			0.01			-			0.18			-
Tax effect		(0.2	)		(0.0	)		(0.0	)		(0.04	)		0.39
Pro forma core diluted earnings per share	$	0.60		$	0.49		$	0.42		$	0.43		$	0.71
		2017									2016
Core efficiency ratio (tax-equivalent basis)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Total noninterest expense	$	69,224		$	49,136		$	46,417		$	47,319		$	55,249
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		15,711			767			487			-			1,122
Less (recovery of) impairment of mortgage servicing rights		-			-			-			(3,411	)		2,402
Less loss on sale of mortgage servicing rights		-			249			-			4,447			-
Core noninterest expense	$	53,513		$	48,120		$	45,295		$	45,242		$	48,832
Net interest income (tax-equivalent basis)		44,281			31,158			30,963			29,686			28,213
Total noninterest income		37,820			35,657			31,087			31,332			43,962
Less change in fair value on mortgage servicing rights		(893	)		(1,840	)		(501	)		-			-
Less (loss) gain on sales or write-downs of other real estate owned and other assets		(314	)		62			748			(349	)		1,653
Less gain from securities, net		254			29			1			-			416
Core noninterest income		38,773			37,406			30,839			31,681			41,893
Core revenue	$	83,054		$	68,564		$	61,802		$	61,367		$	70,106
Efficiency ratio (GAAP)(1)		85.01	%		74.35	%		75.67	%		78.39	%		77.58	%
Core efficiency ratio (tax-equivalent basis)		64.43	%		70.18	%		73.29	%		73.72	%		69.65	%
(1) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2017									2016
Banking segment core efficiency ratio (tax equivalent)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Core consolidated noninterest expense	$	53,513		$	48,120		$	45,295		$	45,242		$	48,832
Less Mortgage segment noninterest expense		19,757			19,802			17,670			22,256			23,744
Add (recovery of) impairment of mortgage servicing rights		-			-			-			(3,411	)		2,402
Add loss on sale of mortgage servicing rights		-			249			-			4,447			-
Adjusted Banking segment noninterest expense		33,756			28,567			27,625			24,022			27,490
Adjusted core revenue		83,054			68,564			61,802			61,367			70,106
Less Mortgage segment noninterest income		23,836			23,121			19,414			22,975			27,957
Less change in fair value on mortgage servicing rights		(893	)		(1,840	)		(501	)		-			-
Adjusted Banking segment total revenue	$	60,111		$	47,283		$	42,889		$	38,392		$	42,149
Banking segment core efficiency ratio (tax-equivalent basis)		56.16	%		60.42	%		64.41	%		62.57	%		65.22	%
Mortgage segment core efficiency ratio (tax equivalent)
Consolidated Noninterest expense	$	69,224		$	49,136		$	46,417		$	47,319		$	55,529
Less impairment of mortgage servicing rights		-			-			-			(3,411	)		2,402
Less loss on sale of mortgage servicing rights		-			249			-			4,447			-
Less Banking segment noninterest expense		49,467			29,334			28,747			25,030			31,785
Adjusted Mortgage segment noninterest expense	$	19,757		$	19,553		$	17,670		$	21,253		$	21,342
Total noninterest income		37,820			35,657			31,087			31,332			43,962
Less Banking segment noninterest income		13,984			12,536			11,673			8,357			16,005
Less change in fair value on mortgage servicing rights		(893	)		(1,840	)		(501	)		-			-
Adjusted Mortgage segment total revenue	$	24,729		$	24,961		$	19,915		$	22,975		$	27,957
Mortgage segment core efficiency ratio (tax-equivalent basis)		79.89	%		78.33	%		88.73	%		92.50	%		76.34	%
		2017									2016
Tangible assets and equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Tangible Assets
Total assets	$	4,581,943		$	3,346,570		$	3,166,459		$	3,276,881		$	3,187,180
Less goodwill		138,910			46,867			46,867			46,867			46,867
Less core deposit intangibles		12,550			4,048			4,171			4,563			5,090
Tangible assets	$	4,430,483		$	3,295,655		$	3,115,421		$	3,255,451		$	3,135,223
Tangible Common Equity
Total shareholders' equity	$	572,528		$	509,517		$	342,142		$	330,498		$	329,108
Less goodwill		138,910			46,867			46,867			46,867			46,867
Less core deposit intangibles		12,550			4,048			4,171			4,563			5,090
Tangible common equity	$	421,068		$	458,602		$	291,104		$	279,068		$	277,151
Common shares outstanding		30,526,592			28,968,160			24,154,323			24,107,660			23,975,122
Book value per common share	$	18.76		$	17.59		$	14.16		$	13.71		$	13.73
Tangible book value per common share	$	13.79		$	15.83		$	12.05		$	11.58		$	11.56
Total shareholders' equity to total assets		12.50	%		15.23	%		10.81	%		10.09	%		10.33	%
Tangible common equity to tangible assets		9.50	%		13.92	%		9.34	%		8.65	%		8.84	%
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	1,207
Return on tangible common equity		7.90	%		9.83	%		13.59	%		12.84	%		1.73	%
		2017									2016
Return on average tangible common equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Total average shareholders' equity	$	550,409		$	398,805		$	333,178		$	318,986		$	276,549
Less average goodwill		108,220			46,839			46,839			46,839			46,839
Less average core deposit intangibles		9,983			4,124			4,353			4,694			5,402
Average tangible common equity	$	432,206		$	347,842		$	281,986		$	267,453		$	224,308
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	1,207
Return on average tangible common equity		7.70	%		12.96	%		14.03	%		13.40	%		2.14	%
		2017									2016
Pro forma return on average tangible common equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Average tangible common equity	$	432,206		$	347,842		$	281,986		$	267,453		$	224,308
Pro forma net income	$	8,388		$	11,239		$	9,753		$	9,010		$	10,033
Pro forma return on average tangible common equity		7.70	%		12.96	%		14.03	%		13.40	%		17.79	%

Non-GAAP Reconciliation
For the Quarters Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2017									2016
Pro forma core return on average tangible equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Pre-tax pro forma net income	$	12,990		$	17,813		$	15,178		$	13,797		$	15,979
Adjustments:
Add non-core items		16,664			2,765			874			2,426			4,628
Less pro forma core income tax expense		11,138			7,659			5,768			5,739			7,672
Pro forma core net income	$	18,516		$	12,919		$	10,284		$	10,484		$	12,935
Pro forma core return on average tangible common equity		17.00	%		14.90	%		14.79	%		15.60	%		22.94	%
		2017									2016
Pro forma core return on average assets and equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Net income	$	8,388		$	11,239		$	9,753		$	9,010		$	1,207
Average assets		4,162,478			3,224,783			3,172,149			3,206,398			3,015,670
Average equity		550,409			398,805			333,178			318,986			276,549
Return on average assets		0.80	%		1.40	%		1.25	%		1.12	%		0.16	%
Return on average equity		6.05	%		11.30	%		11.87	%		11.24	%		1.74	%
Pro forma core net income		18,516			12,919			10,284			10,484			12,935
Pro forma core return on average assets		1.76	%		1.61	%		1.31	%		1.30	%		1.71	%
Pro forma core return on average equity		13.35	%		12.99	%		12.52	%		13.08	%		18.61	%
		2017									2016
Pro forma core total revenue	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Net interest income	$	43,610		$	30,427		$	30,251		$	29,032		$	27,617
Noninterest income		37,820			35,657			31,087			31,332			43,962
Less adjustments:
Change in fair value of mortgage servicing rights		(893	)		(1,840	)		(501	)		-			-
Gain from securities, net		254			29			1			-			416
(Loss) gain on sales or write-downs of other real estate owned and other assets		(314	)		62			748			(349	)		1,653
Pro forma core total revenue	$	82,383		$	67,833		$	61,090		$	60,713		$	69,510