FB Financial (FBK) 8-K FB Financial Corporation Reports Strong 2019 Third Quarter Results

Third Quarter 2019

Financial Supplement

TABLE OF CONTENTS

	Page
Financial Summary and Key Metrics	4
Consolidated Statements of Income	5
Consolidated Balance Sheets	7
Branch Acquisition Opening Balance Sheet (Preliminary)	8
Average Balance, Average Yield Earned and Average Rate Paid	8
Loans and Deposits by Market	11
Segment Data	12
Loan Portfolio and Asset Quality	13
Preliminary Capital Ratios	15
Investment Portfolio	16
Non-GAAP Reconciliation	17

Use of non-GAAP Financial Measures

This Supplemental Financial Information contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non-GAAP financial measures include, without limitation, adjusted net income, adjusted diluted earnings per share, core noninterest expense and core noninterest income, core efficiency ratio (tax equivalent basis), Banking segment core efficiency ratio (tax equivalent basis), Mortgage segment core efficiency ratio (tax equivalent basis), adjusted mortgage contribution, adjusted return on average assets and equity, pro forma return on average assets and equity, adjusted pro forma return on average assets and equity and core total revenue.  Each of these non-GAAP metrics excludes certain income and expense items that the Company’s management considers to be non-core/adjusted in nature. The Company refers to these non-GAAP measures as adjusted measures. The corresponding Earnings Release and Earnings Release Presentation also presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on tangible common equity, return on average tangible common equity, pro forma return on average tangible common equity, adjusted return on average tangible common equity and pro forma adjusted return on average tangible common equity.  Each of these non-GAAP metrics excludes the impact of goodwill and other intangibles.

The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations as management believes such measures facilitate period-to-period comparisons and provide meaningful indications of its operating performance as they eliminate both gains and charges that management views as non-recurring or not indicative of operating performance. Management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant non-core gains and charges in the current and prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and in the analysis of ongoing operating trends.  In addition, because intangible assets such as goodwill and other intangibles, and the other items excluded each vary extensively from company to company, the Company believes that the presentation of this information allows investors to more easily compare the Company’s results to the results of other companies.  However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures the Company has discussed herein when comparing such non-GAAP financial measures.  The Company includes tables under the Non-GAAP reconciliation section of this document to provide a reconciliation of these measures to the most directly comparable GAAP financial measures.

Financial Summary and Key Metrics
(Unaudited)
(In Thousands, Except Share Data and %)
	2019									2018
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Statement of Income Data
Total interest income	$	73,242		$	71,719		$	65,933		$	63,068		$	62,612
Total interest expense	14,937			14,696			12,917			11,701			9,857
Net interest income	58,305			57,023			53,016			51,367			52,755
Provision for loan losses	1,831			881			1,391			2,200			1,818
Total noninterest income	38,145			32,979			29,039			27,249			34,355
Total noninterest expense	62,935			64,119			55,101			53,736			57,213
Net income before income taxes	31,684			25,002			25,563			22,680			28,079
Income tax expense	7,718			6,314			5,975			5,640			6,702
Net income	$	23,966		$	18,688		$	19,588		$	17,040		$	21,377
Net interest income (tax—equivalent basis)	$	58,769		$	57,488		$	53,461		$	51,799		$	53,161
Net income, adjusted*	$	24,267		$	22,098		$	20,826		$	17,336		$	21,377
Per Common Share
Diluted net income	$	0.76		$	0.59		$	0.62		$	0.54		$	0.68
Diluted net income, adjusted*	0.77			0.70			0.66			0.55			0.68
Book value	24.08			23.29			22.51			21.87			21.12
Tangible book value*	18.03			17.18			17.73			17.02			16.25
Weighted average number of shares outstanding- fully diluted	31,425,573			31,378,018			31,349,198			31,344,949			31,339,628
Period-end number of shares	30,927,664			30,865,636			30,852,665			30,724,532			30,715,792
Selected Balance Sheet Data
Cash and cash equivalents	$	242,997		$	164,336		$	195,414		$	125,356		$	181,630
Loans held for investment (HFI)	4,345,344			4,289,516			3,786,791			3,667,511			3,538,531
Allowance for loan losses	(31,464		)	(30,138		)	(29,814		)	(28,932		)	(27,608		)
Loans held for sale	305,493			294,699			248,054			278,815			323,486
Investment securities, at fair value	671,781			678,457			670,835			658,805			609,568
Other real estate owned, net	16,076			15,521			12,828			12,643			13,587
Total assets	6,088,895			5,940,402			5,335,156			5,136,764			5,058,167
Customer deposits	4,896,327			4,812,962			4,242,349			4,068,610			4,017,391
Brokered and internet time deposits	25,436			29,864			60,842			103,107			112,082
Total deposits	4,921,763			4,842,826			4,303,191			4,171,717			4,129,473
Borrowings	307,129			257,299			229,178			227,776			210,968
Total shareholders' equity	744,835			718,759			694,577			671,857			648,731
Selected Ratios
Return on average:
Assets	1.59		%	1.30		%	1.54		%	1.35		%	1.72		%
Shareholders' equity	13.0		%	10.6		%	11.6		%	10.3		%	13.3		%
Tangible common equity*	17.5		%	14.4		%	14.8		%	13.3		%	17.4		%
Average shareholders' equity to average assets	12.2		%	12.3		%	13.2		%	13.2		%	12.9		%
Net interest margin (NIM) (tax-equivalent basis)	4.28		%	4.39		%	4.61		%	4.50		%	4.71		%
Efficiency ratio (GAAP)	65.3		%	71.2		%	67.2		%	68.4		%	65.7		%
Core efficiency ratio (tax-equivalent basis)*	64.5		%	65.9		%	64.9		%	67.5		%	65.7		%
Loans HFI to deposit ratio	88.3		%	88.6		%	88.0		%	87.9		%	85.7		%
Total loans to deposit ratio	94.5		%	94.7		%	93.8		%	94.6		%	93.5		%
Yield on interest-earning assets	5.37		%	5.52		%	5.73		%	5.52		%	5.58		%
Cost of interest-bearing liabilities	1.50		%	1.54		%	1.52		%	1.40		%	1.20		%
Cost of total deposits	1.11		%	1.14		%	1.14		%	1.03		%	0.80		%
Credit Quality Ratios
Allowance for loan losses as a percentage of loans HFI	0.72		%	0.70		%	0.79		%	0.79		%	0.78		%
Net charge-off's as a percentage of average loans HFI	0.05		%	0.05		%	0.06		%	0.06		%	0.06		%
Nonperforming loans HFI as a percentage of total loans HFI	0.47		%	0.43		%	0.41		%	0.46		%	0.30		%
Nonperforming assets as a percentage of total assets	0.62		%	0.59		%	0.57		%	0.61		%	0.51		%
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets	12.2		%	12.1		%	13.0		%	13.1		%	12.8		%
Tangible common equity to tangible assets*	9.45		%	9.22		%	10.5		%	10.5		%	10.2		%
Tier 1 capital (to average assets)	10.1		%	10.0		%	11.5		%	11.4		%	11.3		%
Tier 1 capital (to risk-weighted assets)	11.3		%	11.0		%	12.7		%	12.4		%	12.2		%
Total capital (to risk-weighted assets)	12.0		%	11.6		%	13.4		%	13.0		%	12.8		%
Common Equity Tier 1 (to risk-weighted assets) (CET1)	10.8		%	10.4		%	12.0		%	11.7		%	11.5		%

*These measures are considered non-GAAP financial measures. See "GAAP Reconciliation and Use of Non-GAAP Financial Measures" and the corresponding financial tables below for reconciliations of these Non-GAAP measures. Investors are encouraged to refer to the discussion of non-GAAP measures included in the corresponding earnings release.

FB Financial Corporation 4

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
													Q3 2019		Q3 2019
													vs.		vs.
	2019						2018						Q2 2019		Q3 2018
	Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Third Quarter			Percent variance		Percent variance
Interest income:
Interest and fees on loans	$	67,639	$	66,276	$	60,448	$	57,875		$	57,904		2.06	%	16.8	%
Interest on securities
Taxable	3,137		3,548		3,569		3,260			3,151			(11.6	)%	(0.44	)%
Tax-exempt	1,174		1,160		1,144		1,110			1,031			1.21	%	13.9	%
Other	1,292		735		772		823			526			75.8	%	145.6	%
Total interest income	73,242		71,719		65,933		63,068			62,612			2.12	%	17.0	%
Interest expense:
Deposits	13,522		13,488		11,855		10,703			7,864			0.25	%	71.9	%
Borrowings	1,415		1,208		1,062		998			1,993			17.1	%	(29.0	)%
Total interest expense	14,937		14,696		12,917		11,701			9,857			1.64	%	51.5	%
Net interest income	58,305		57,023		53,016		51,367			52,755			2.25	%	10.5	%
Provision for loan losses	1,831		881		1,391		2,200			1,818			107.8	%	0.72	%
Net interest income after provision for loan losses	56,474		56,142		51,625		49,167			50,937			0.59	%	10.9	%
Noninterest income:
Mortgage banking income	29,193		24,526		21,021		18,997			26,649			19.0	%	9.55	%
Service charges on deposit accounts	2,416		2,327		2,079		2,286			2,208			3.82	%	9.42	%
ATM and interchange fees	3,188		3,002		2,656		2,660			2,411			6.20	%	32.2	%
Investment services and trust income	1,336		1,287		1,295		1,384			1,411			3.81	%	(5.32	)%
(Loss) gain from securities, net	(20)		52		43		—			(27		)	(138.5	)%	(25.9	)%
(Loss) gain on sales or write-downs of other real estate owned	(126)		277		(39)		(56		)	120			(145.5	)%	(205.0	)%
Gain (loss) from other assets	44		(183)		191		89			326			(124.0	)%	(86.5	)%
Other income	2,114		1,691		1,793		1,889			1,257			25.0	%	68.2	%
Total noninterest income	38,145		32,979		29,039		27,249			34,355			15.7	%	11.0	%
Total revenue	96,450		90,002		82,055		78,616			87,110			7.16	%	10.7	%
Noninterest expenses:
Salaries, commissions and employee benefits	40,880		37,918		33,697		33,286			35,213			7.81	%	16.1	%
Occupancy and equipment expense	4,058		4,319		3,730		3,493			3,514			(6.04	)%	15.5	%
Legal and professional fees	1,993		1,694		1,725		1,978			1,917			17.7	%	3.96	%
Data processing	2,816		2,643		2,384		2,365			2,562			6.55	%	9.91	%
Merger expense	295		3,783		621		401			—			(92.2	)%	100.0	%
Amortization of core deposits and other intangibles	1,197		1,254		729		753			777			(4.55	)%	54.1	%
Regulatory fees and deposit insurance assessments	544		634		592		684			738			(14.2	)%	(26.3	)%
Software license and maintenance fees	625		622		472		489			622			0.48	%	0.48	%
Advertising	1,895		2,434		2,737		2,639			3,810			(22.1	)%	(50.3	)%
Mortgage restructuring expense	112		829		1,054		—			—			(86.5	)%	100.0	%
Other expense	8,520		7,989		7,360		7,648			8,060			6.65	%	5.71	%
Total noninterest expense	62,935		64,119		55,101		53,736			57,213			(1.85	)%	10.0	%
Income before income taxes	31,684		25,002		25,563		22,680			28,079			26.7	%	12.8	%
Income tax expense	7,718		6,314		5,975		5,640			6,702			22.2	%	15.2	%
Net income	$	23,966	$	18,688	$	19,588	$	17,040		$	21,377		28.2	%	12.1	%
Earnings available to common shareholders	$	23,838	$	18,588	$	19,483	$	16,949		$	21,263
Weighted average common shares outstanding:
Basic	30,899,583		30,859,596		30,786,684		30,717,008			30,692,668
Fully diluted	31,425,573		31,378,018		31,349,198		31,344,949			31,339,628
Earnings per common share:
Basic	$	0.77	$	0.60	$	0.63	$	0.55		$	0.69
Fully diluted	0.76		0.59		0.62		0.54			0.68

FB Financial Corporation 5

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
						YTD 2019
	For the nine months ended					vs.
	September 30,					YTD 2018
	2019		2018			Percent variance
Interest income:
Interest and fees on loans	$	194,363	$	163,126		19.1	%
Interest on securities
Taxable	10,254		9,137			12.2	%
Tax-exempt	3,478		2,937			18.4	%
Other	2,799		1,303			114.8	%
Total interest income	210,894		176,503			19.5	%
Interest expense:
Deposits	38,865		18,833			106.4	%
Borrowings	3,685		4,969			(25.8	)%
Total interest expense	42,550		23,802			78.8	%
Net interest income	168,344		152,701			10.2	%
Provision for loan losses	4,103		3,198			28.3	%
Net interest income after provision for loan losses	164,241		149,503			9.86	%
Noninterest income:
Mortgage banking income	74,740		81,664			(8.48	)%
Service charges on deposit accounts	6,822		6,216			9.75	%
ATM and interchange fees	8,846		7,353			20.3	%
Investment services and trust income	3,918		3,797			3.19	%
Gain (loss) from securities, net	75		(116		)	164.7	%
Gain (loss) on sales or write-downs of other real estate owned	112		(43		)	360.5	%
Gain on other assets	52		239			(78.2	)%
Other income	5,598		4,283			30.7	%
Total noninterest income	100,163		103,393			(3.12	)%
Total revenue	268,507		256,094			4.85	%
Noninterest expenses:
Salaries, commissions and employee benefits	112,495		103,606			8.58	%
Occupancy and equipment expense	12,107		10,483			15.5	%
Legal and professional fees	5,412		5,925			(8.66	)%
Data processing	7,843		6,735			16.5	%
Merger expense	4,699		1,193			293.9	%
Amortization of core deposit and other intangibles	3,180		2,432			30.8	%
Regulatory fees and deposit insurance assessments	1,770		2,030			(12.8	)%
Software license and maintenance fees	1,719		1,882			(8.66	)%
Advertising	7,066		10,500			(32.7	)%
Mortgage restructuring expense	1,995		—			100.0	%
Other expense	23,869		24,936			(4.28	)%
Total noninterest expense	182,155		169,722			7.33	%
Net income before income taxes	82,249		83,174			(1.11	)%
Income tax expense	20,007		19,978			0.15	%
Net income	$	62,242	$	63,196		(1.51	)%
Earnings available to common shareholders	$	61,909	$	62,859
Weighted average common shares outstanding:
Basic	30,849,035		30,661,852
Fully diluted	31,378,786		31,298,654
Earnings per common share:
Basic	$	2.01	$	2.05
Fully diluted	1.97		2.01

FB Financial Corporation 6

Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except %)
													Annualized
													Q3 2019		Q3 2019
													vs.		vs.
	2019						2018						Q2 2019		Q3 2018
	Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Third Quarter			Percent variance		Percent variance
ASSETS
Cash and due from banks	$	31,594	$	64,458	$	60,253	$	38,381		$	81,366		(202.3	)%	(61.2	)%
Federal funds sold	50,532		9,781		6,600		31,364			801			1,653.0	%	6,208.6	%
Interest bearing deposits in financial institutions	160,871		90,097		128,561		55,611			99,463			311.7	%	61.7	%
Cash and cash equivalents	242,997		164,336		195,414		125,356			181,630			189.9	%	33.8	%
Investments:
Available-for-sale debt securities, at fair value	668,531		675,215		667,654		655,698			606,501			(3.93	)%	10.2	%
Equity securities, at fair value	3,250		3,242		3,181		3,107			3,067			1.0	%	6.0	%
Federal Home Loan Bank stock, at cost	15,976		15,976		13,432		13,432			13,432			—	%	18.9	%
Loans held for sale, at fair value	305,493		294,699		248,054		278,815			323,486			14.5	%	(5.56	)%
Loans	4,345,344		4,289,516		3,786,791		3,667,511			3,538,531			5.16	%	22.8	%
Less: allowance for loan losses	31,464		30,138		29,814		28,932			27,608			17.5	%	14.0	%
Net loans	4,313,880		4,259,378		3,756,977		3,638,579			3,510,923			5.08	%	22.9	%
Premises and equipment, net	91,815		92,407		87,013		86,882			86,445			(2.54	)%	6.21	%
Other real estate owned, net	16,076		15,521		12,828		12,643			13,587			14.19	%	18.3	%
Operating lease right-of-use assets	34,812		35,872		32,694		—			—			(11.7	)%	100.0	%
Interest receivable	17,729		17,952		16,611		14,503			14,943			(4.93	)%	18.6	%
Mortgage servicing rights, at fair value	66,156		66,380		64,031		88,829			79,890			(1.34	)%	(17.2	)%
Goodwill	168,486		168,486		137,190		137,190			137,190			—	%	22.8	%
Core deposit and other intangibles, net	18,748		19,945		10,439		11,628			12,403			(23.8	)%	51.2	%
Other assets	124,946		110,993		89,638		70,102			74,670			49.9	%	67.3	%
Total assets	$	6,088,895	$	5,940,402	$	5,335,156	$	5,136,764		$	5,058,167		9.92	%	20.4	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	1,214,373	$	1,111,921	$	964,745	$	949,135		$	962,948		36.6	%	26.1	%
Interest-bearing checking	1,029,430		984,847		937,323		863,706			876,991			18.0	%	17.4	%
Money market and savings	1,481,697		1,468,867		1,257,863		1,239,131			1,236,851			3.47	%	19.8	%
Customer time deposits	1,170,827		1,247,327		1,082,418		1,016,638			940,601			(24.3	)%	24.5	%
Brokered and internet time deposits	25,436		29,864		60,842		103,107			112,082			(58.8	)%	(77.3	)%
Total deposits	4,921,763		4,842,826		4,303,191		4,171,717			4,129,473			6.47	%	19.2	%
Borrowings	307,129		257,299		229,178		227,776			210,968			76.8	%	45.6	%
Operating lease liabilities	37,760		38,722		35,093		—			—			(9.86	)%	100.0	%
Accrued expenses and other liabilities	77,408		82,796		73,117		65,414			68,995			(25.8	)%	12.2	%
Total liabilities	5,344,060		5,221,643		4,640,579		4,464,907			4,409,436			9.30	%	21.2	%
Shareholders' equity:
Common stock, $1 par value	30,928		30,866		30,853		30,725			30,716			0.80	%	0.69	%
Additional paid-in capital	426,816		425,644		423,647		424,146			422,302			1.09	%	1.07	%
Retained earnings	274,491		253,080		236,947		221,213			206,718			33.6	%	32.8	%
Accumulated other comprehensive income (loss), net	12,600		9,169		3,130		(4,227		)	(11,005		)	148.5	%	(214.5	)%
Total shareholders' equity	744,835		718,759		694,577		671,857			648,731			14.4	%	14.8	%
Total liabilities and shareholders' equity	$	6,088,895	$	5,940,402	$	5,335,156	$	5,136,764		$	5,058,167		9.92	%	20.4	%

FB Financial Corporation 7

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, 2019							June 30, 2019
	Average balances			Interest income/ expense		Average yield/ rate		Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	4,306,725		$	65,241	6.01	%	$	4,177,701		$	63,262	6.07	%
Loans held for sale	262,896			2,448		3.69	%	281,252			3,070		4.38	%
Securities:
Taxable	508,924			3,137		2.45	%	532,500			3,548		2.67	%
Tax-exempt(a)	153,633			1,588		4.10	%	146,282			1,569		4.30	%
Total securities(a)	662,557			4,725		2.83	%	678,782			5,117		3.02	%
Federal funds sold	24,388			166		2.70	%	12,219			88		2.89	%
Interest-bearing deposits with other financial institutions	176,708			950		2.13	%	81,540			465		2.29	%
FHLB stock	15,976			176		4.37	%	15,165			182		4.81	%
Total interest earning assets(a)	5,449,250			73,706		5.37	%	5,246,659			72,184		5.52	%
Noninterest Earning Assets:
Cash and due from banks	51,433							54,659
Allowance for loan losses	(30,484		)					(30,092		)
Other assets	518,373							500,145
Total noninterest earning assets	539,322							524,712
Total assets	$	5,988,572						$	5,771,371
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	971,686		$	2,338	0.95	%	$	968,081		$	2,295	0.95	%
Money market	1,260,555			4,607		1.45	%	1,221,450			4,508		1.48	%
Savings deposits	207,221			78		0.15	%	203,602			76		0.15	%
Customer time deposits	1,184,737			6,362		2.13	%	1,185,451			6,299		2.13	%
Brokered and internet time deposits	28,273			137		1.92	%	56,242			310		2.21	%
Time deposits	1,213,010			6,499		2.13	%	1,241,693			6,609		2.13	%
Total interest bearing deposits	3,652,472			13,522		1.47	%	3,634,826			13,488		1.49	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	30,585			80		1.04	%	31,905			117		1.47	%
Federal Home Loan Bank advances	248,315			918		1.47	%	131,726			664		2.02	%
Subordinated debt	30,930			417		5.35	%	30,930			427		5.54	%
Total other interest-bearing liabilities	309,830			1,415		1.81	%	194,561			1,208		2.49	%
Total interest-bearing liabilities	3,962,302			14,937		1.50	%	3,829,387			14,696		1.54	%
Noninterest bearing liabilities:
Demand deposits	1,180,685							1,128,311
Other liabilities	113,884							105,116
Total noninterest-bearing liabilities	1,294,569							1,233,427
Total liabilities	5,256,871							5,062,814
Shareholders' equity	731,701							708,557
Total liabilities and shareholders' equity	$	5,988,572						$	5,771,371
Net interest income(a)				$	58,769						$	57,488
Interest rate spread(a)						3.87	%						3.98	%
Net interest margin(a)						4.28	%						4.39	%
Cost of total deposits						1.11	%						1.14	%
Average interest-earning assets to average interest-bearing liabilities						137.5	%						137.0	%
Tax-equivalent adjustment				$	464						$	465
Loan HFI yield components:
Contractual interest rate(a)				$	59,645	5.50	%				$	58,028	5.57	%
Origination and other loan fee income				3,293		0.30	%				2,981		0.29	%
Accretion on purchased loans				2,102		0.19	%				2,097		0.20	%
Nonaccrual interest				201		0.02	%				156		0.01	%
Syndication fee income				—		—	%				—		—	%
Total loan yield				$	65,241	6.01	%				$	63,262	6.07	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.

FB Financial Corporation 8

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, 2019							December 31, 2018							September 30, 2018
	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 HFI(a)	$	3,720,739		$	58,137	6.34	%	$	3,559,587		$	54,858	6.11	%	$	3,457,526		$	53,928	6.19	%
Loans held for sale	216,227			2,353		4.41	%	260,763			3,058		4.65	%	353,477			4,019		4.51	%
Securities:
Taxable	518,504			3,569		2.79	%	487,843			3,260		2.65	%	482,733			3,151		2.59	%
Tax-exempt(a)	138,847			1,547		4.52	%	130,465			1,501		4.56	%	121,680			1,394		4.55	%
Total securities(a)	657,351			5,116		3.16	%	618,308			4,761		3.05	%	604,413			4,545		2.98	%
Federal funds sold	18,392			123		2.71	%	27,835			160		2.28	%	18,014			97		2.14	%
Interest-bearing deposits with other financial institutions	75,291			446		2.40	%	86,421			464		2.13	%	33,184			214		2.56	%
FHLB stock	13,432			203		6.13	%	13,432			199		5.88	%	13,179			215		6.47	%
Total interest earning assets(a)	4,701,432			66,378		5.73	%	4,566,346			63,500		5.52	%	4,479,793			63,018		5.58	%
Noninterest Earning Assets:
Cash and due from banks	50,218							53,067							52,980
Allowance for loan losses	(29,537		)					(27,369		)					(26,487		)
Other assets	452,805							413,114							425,911
Total noninterest earning assets	473,486							438,812							452,404
Total assets	$	5,174,918						$	5,005,158						$	4,932,197
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	878,167		$	2,054	0.95	%	$	828,507		$	1,870	0.90	%	$	870,964		$	1,690	0.77	%
Money market	1,073,170			3,956		1.49	%	1,058,172			3,568		1.34	%	1,067,754			3,126		1.16	%
Savings deposits	176,305			68		0.16	%	174,199			67		0.15	%	177,698			68		0.15	%
Customer time deposits	1,053,958			5,309		2.04	%	983,204			4,649		1.88	%	745,616			2,699		1.44	%
Brokered and internet time deposits	93,434			468		2.03	%	107,129			549		2.03	%	61,478			281		1.81	%
Time deposits	1,147,392			5,777		2.04	%	1,090,333			5,198		1.89	%	807,094			2,980		1.46	%
Total interest bearing deposits	3,275,034			11,855		1.47	%	3,151,211			10,703		1.35	%	2,923,510			7,864		1.07	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	15,319			35		0.93	%	18,378			29		0.63	%	24,484			51		0.83	%
Federal Home Loan Bank advances	117,875			634		2.18	%	106,468			554		2.06	%	293,020			1,524		2.06	%
Subordinated debt	30,930			393		5.15	%	30,930			415		5.32	%	30,930			418		5.36	%
Total other interest-bearing liabilities	164,124			1,062		2.62	%	155,776			998		2.54	%	348,434			1,993		2.27	%
Total interest-bearing liabilities	3,439,158			12,917		1.52	%	3,306,987			11,701		1.40	%	3,271,944			9,857		1.20	%
Noninterest bearing liabilities:
Demand deposits	955,156							987,127							980,296
Other liabilities	96,059							51,994							41,569
Total noninterest-bearing liabilities	1,051,215							1,039,121							1,021,865
Total liabilities	4,490,373							4,346,108							4,293,809
Shareholders' equity	684,545							659,050							638,388
Total liabilities and shareholders' equity	$	5,174,918						$	5,005,158						$	4,932,197
Net interest income(a)				$	53,461						$	51,799						$	53,161
Interest rate spread(a)						4.21	%						4.11	%						4.39	%
Net interest margin(a)						4.61	%						4.50	%						4.71	%
Cost of total deposits						1.14	%						1.03	%						0.80	%
Average interest-earning assets to average interest-bearing liabilities						136.7	%						138.1	%						136.9	%
Tax-equivalent adjustment				$	445						$	432						$	406
Loan HFI yield components:
Contractual interest rate(a)				$	52,177	5.69	%				$	49,873	5.56	%				$	47,650	5.47	%
Origination and other loan fee income				3,840		0.42	%				2,998		0.33	%				3,486		0.40	%
Accretion on purchased loans				1,831		0.20	%				1,863		0.21	%				2,130		0.25	%
Nonaccrual interest				89		0.01	%				96		0.01	%				630		0.07	%
Syndication fee income				200		0.02	%				28		—	%				32		—	%
Total loan yield				$	58,137	6.34	%				$	54,858	6.11	%				$	53,928	6.19	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060%.

FB Financial Corporation 9

Average Balance, Average Yield Earned and Average Rate Paid
For the Periods Ended
(Unaudited)
(In Thousands, Except %)
	Nine months ended							Nine months ended
	September 30, 2019							September 30, 2018
	Average balances			Interest income/ expense		Average yield/ rate		Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	4,070,535		$	186,640	6.13	%	$	3,314,403		$	150,685	6.08	%
Loans held for sale	253,629			7,871		4.15	%	383,242			12,574		4.39	%
Securities:
Taxable	519,941			10,254		2.64	%	474,729			9,137		2.57	%
Tax-exempt(a)	146,336			4,704		4.30	%	115,452			3,972		4.60	%
Total securities(a)	666,277			14,958		3.00	%	590,181			13,109		2.97	%
Federal funds sold	18,355			377		2.75	%	19,320			252		1.74	%
Interest-bearing deposits with other financial institutions	111,551			1,861		2.23	%	37,124			534		1.92	%
FHLB stock	14,867			561		5.05	%	12,510			517		5.53	%
Total interest earning assets(a)	5,135,214			212,268		5.53	%	4,356,780			177,671		5.45	%
Noninterest Earning Assets:
Cash and due from banks	52,108							48,177
Allowance for loan losses	(30,041		)					(25,201		)
Other assets	490,424							411,709
Total noninterest earning assets	512,491							434,685
Total assets	$	5,647,705						$	4,791,465
Interest-bearing liabilities:
Interest bearing deposits:
Interest bearing checking	$	939,654		$	6,687	0.95	%	$	916,407		$	4,618	0.67	%
Money market	1,185,745			13,071		1.47	%	1,016,559			7,327		0.96	%
Savings deposits	195,822			222		0.15	%	179,686			205		0.15	%
Customer time deposits	1,148,180			17,970		2.09	%	664,505			5,760		1.16	%
Brokered and internet time deposits	52,759			915		2.32	%	73,683			923		1.67	%
Time deposits	1,200,939			18,885		2.10	%	738,188			6,683		1.21	%
Total interest bearing deposits	3,522,160			38,865		1.48	%	2,850,840			18,833		0.88	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	25,992			232		1.19	%	19,916			121		0.81	%
Federal Home Loan Bank advances	166,450			2,216		1.78	%	252,927			3,612		1.91	%
Subordinated debt	30,930			1,237		5.35	%	30,930			1,236		5.34	%
Total other interest-bearing liabilities	223,372			3,685		2.21	%	303,773			4,969		2.19	%
Total Interest-bearing liabilities	3,745,532			42,550		1.52	%	3,154,613			23,802		1.01	%
Noninterest bearing liabilities:
Demand deposits	1,088,876							961,583
Other liabilities	104,861							57,223
Total noninterest-bearing liabilities	1,193,737							1,018,806
Total liabilities	4,939,269							4,173,419
Shareholders' equity	708,436							618,046
Total liabilities and shareholders' equity	$	5,647,705						$	4,791,465
Net interest income(a)				$	169,718						$	153,869
Interest rate spread(a)						4.01	%						4.44	%
Net interest margin(a)						4.42	%						4.72	%
Cost of total deposits						1.13	%						0.66	%
Average interest-earning assets to average interest- bearing liabilities						137.1	%						138.1	%
Tax equivalent adjustment				$	1,374						$	1,168
Loan HFI yield components:
Contractual interest rate(a)				$	169,850	5.58	%				$	133,243	5.38	%
Origination and other loan fee income				10,114		0.33	%				10,095		0.41	%
Accretion on purchased loans				6,030		0.20	%				5,745		0.23	%
Nonaccrual interest				446		0.01	%				1,279		0.05	%
Syndication fee income				200		0.01	%				323		0.01	%
Total loan yield				$	186,640	6.13	%				$	150,685	6.08	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.060% .

FB Financial Corporation 10

Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands)
	2019						2018
	Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter
Loans by market
Metropolitan	$	3,011,118	$	2,970,794	$	2,516,582	$	2,413,674	$	2,335,771
Community	802,923		803,306		784,671		788,619		765,231
Specialty lending and other	531,303		515,416		485,538		465,218		437,529
Total	$	4,345,344	$	4,289,516	$	3,786,791	$	3,667,511	$	3,538,531
Deposits by market
Metropolitan	$	2,869,049	$	2,794,977	$	2,350,421	$	2,283,983	$	2,228,902
Community	1,620,153		1,612,885		1,482,877		1,451,494		1,427,310
Mortgage and other(a)	432,561		434,964		469,893		436,240		473,261
Total	$	4,921,763	$	4,842,826	$	4,303,191	$	4,171,717	$	4,129,473

(a) Includes deposits related to escrow balances from mortgage servicing portfolio and wholesale/other deposits.

FB Financial Corporation 11

Segment Data
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2019									2018
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Banking segment
Net interest income	$	58,350		$	56,979		$	52,993		$	51,344		$	52,733
Provision for loan losses	1,831			881			1,391			2,200			1,818
Mortgage banking income retail footprint	10,693			5,451			4,386			5,041			7,417
Other noninterest income	8,952			8,453			8,018			8,252			7,706
Other noninterest mortgage banking expenses	8,087			4,172			2,831			4,542			6,383
Merger expense	295			3,783			621			401			—
Other noninterest expense	38,755			37,500			33,109			32,531			32,009
Pre-tax income after allocations	$	29,027		$	24,547		$	27,445		$	24,963		$	27,646
Total assets	$	5,730,492		$	5,552,893		$	4,987,744		$	4,752,111		$	4,637,097
Intracompany funding income included in net interest income	2,875			3,290			2,558			3,035			3,997
Core efficiency ratio*	59.6		%	58.5		%	54.7		%	57.0		%	56.6		%
Mortgage segment
Net interest income	$	(45	)	$	44		$	23		$	23		$	22
Noninterest income	18,500			19,075			16,635			13,956			19,232
Mortgage restructuring expense	112			829			1,054			—			—
Noninterest expense	15,686			17,835			17,486			16,262			18,821
Direct (loss) contribution	$	2,657		$	455		$	(1,882	)	$	(2,283	)	$	433
Total assets	$	358,403		$	387,509		$	347,412		$	384,653		$	421,070
Intracompany funding expense included in net interest income	2,875			3,290			2,558			3,035			3,397
Core efficiency ratio*	85.0		%	93.3		%	N/A			N/A			97.8		%
Interest rate lock commitments volume during the period
Consumer direct	$	973,142		$	805,970		$	521,603		$	463,669		$	715,739
Third party origination (TPO)	—			156,844			170,529			168,139			206,651
Retail	503,861			407,007			291,800			242,059			319,073
Correspondent	159,263			450,529			380,854			437,482			463,473
Total	$	1,636,266		$	1,820,350		$	1,364,786		$	1,311,349		$	1,704,936
Interest rate lock commitments pipeline (period end)
Consumer direct	$	519,698		$	397,150		$	235,505		$	147,297		$	224,648
Third party origination (TPO)	—			—			73,218			53,080			72,890
Retail	159,826			135,655			110,480			70,389			94,693
Correspondent	—			75,925			73,304			47,940			60,589
Total	$	679,524		$	608,730		$	492,507		$	318,706		$	452,820
Mortgage sales
Consumer direct	$	588,535		$	428,886		$	287,720		$	421,897		$	577,070
Third party origination (TPO)	31,015			129,511			118,563			145,385			178,238
Retail	94,735			81,849			59,084			63,261			85,561
Retail footprint	256,060			205,698			146,312			168,554			227,985
Reverse	—			704			4,111			7,262			11,154
Correspondent	253,640			412,014			350,435			424,717			454,020
Total	$	1,223,985		$	1,258,662		$	966,225		$	1,231,076		$	1,534,028
Gains and fees from origination and sale of mortgage loans held for sale	$	28,020		$	20,976		$	15,907		$	21,483		$	26,094
Net change in fair value of loans held for sale, derivatives, and other	2,304			3,298			2,244			(4,623		)	(2,320		)
Mortgage servicing income	3,960			4,052			4,751			4,618			5,576
Change in fair value of mortgage servicing rights, net of hedging	(5,091		)	(3,800)			(1,881)			(2,481		)	(2,701		)
Total mortgage banking income	$	29,193		$	24,526		$	21,021		$	18,997		$	26,649
Mortgage sale margin(a)	2.29		%	1.67		%	1.65		%	1.75		%	1.70		%

*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 for a reconciliation and discussion of this non-GAAP measure.

(a) Calculated by dividing gains and fees from origination and sale of mortgage loans held for sale by total mortgage sales.

FB Financial Corporation 12

Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2019															2018
	Third Quarter			% of Total		Second Quarter			% of Total		First Quarter			% of Total		Fourth Quarter			% of Total		Third Quarter			% of Total
Loan portfolio
Commercial and industrial	$	997,921		23	%	$	989,288		23	%	$	888,345		23	%	$	867,083		24	%	$	840,439		24	%
Construction	537,784			12	%	525,954			12	%	539,065			14	%	556,051			15	%	491,171			14	%
Residential real estate:
1-to-4 family mortgage	710,077			17	%	688,984			16	%	552,239			15	%	555,815			16	%	553,720			16	%
Residential line of credit	215,493			5	%	218,006			5	%	187,415			5	%	190,480			5	%	214,741			6	%
Multi-family mortgage	80,352			2	%	82,945			2	%	71,532			2	%	75,457			2	%	86,264			2	%
Commercial real estate:
Owner occupied	620,635			14	%	602,723			14	%	499,123			13	%	493,524			13	%	504,149			14	%
Non-owner occupied	914,502			21	%	922,150			22	%	816,880			22	%	700,248			19	%	628,336			18	%
Consumer and other	268,580			6	%	259,466			6	%	232,192			6	%	228,853			6	%	219,711			6	%
Total loans HFI	$	4,345,344		100	%	$	4,289,516		100	%	$	3,786,791		100	%	$	3,667,511		100	%	$	3,538,531		100	%
Allowance for loan losses rollforward summary
Allowance for loan losses at the beginning of the period	$	30,138				$	29,814				$	28,932				$	27,608				$	26,347
Charge-off's	(717		)			(770		)			(871		)			(806		)			(917		)
Recoveries	212					213					362					279					360
Provision for loan losses	1,831					881					1,391					2,200					1,818
Adjustment for transfers to loans HFS	—					—					—					(349		)			—
Allowance for loan losses at the end of the period	$	31,464				$	30,138				$	29,814				$	28,932				$	27,608
Allowance for loan losses as a percentage of total loans HFI	0.72		%			0.70		%			0.79		%			0.79		%			0.78		%
Charge-offs
Commercial and Industrial	$	(3	)			$	(79	)			$	(179	)			$	(340	)			$	(333	)
Construction	—					—					—					—					(14		)
Residential real estate:
1-to-4 family mortgage	—					(1		)			(81		)			(69		)			(4		)
Residential line of credit	(170		)			(103		)			(32		)			(3		)			(13		)
Multi-family mortgage	—					—					—					—					—
Commercial real estate:
Owner occupied	—					—					—					(36		)			(55		)
Non-owner occupied	(12		)			—					—					—					—
Consumer and other	(532		)			(587		)			(579		)			(358		)			(498		)
Total charge offs:	(717		)			(770		)			(871		)			(806		)			(917		)
Recoveries
Commercial and Industrial	16					38					12					16					104
Construction	1					6					1					37					13
Residential real estate:
1-to-4 family mortgage	25					24					13					14					99
Residential line of credit	75					21					25					76					31
Multi-family mortgage	—					—					—					—					—
Commercial real estate:
Owner occupied	3					5					87					2					10
Non-owner occupied	—					—					—					—					—
Consumer and other	92					119					224					134					103
Total Recoveries:	212					213					362					279					360
Net charge-off's	$	(505	)			$	(557	)			$	(509	)			$	(527	)			$	(557	)
Net charge-off's as a percentage of average total loans	0.05		%			0.05		%			0.06		%			0.06		%			0.06		%
Loans classified as substandard	$	78,881				$	68,828				$	60,746				$	66,487				$	60,346
Purchased credit impaired loans	63,069					67,450					62,564					68,999					73,651

FB Financial Corporation 13

Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2019									2018
	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Nonperforming assets(a)
Past due 90 days or more and accruing interest	$	2,452		$	2,100		$	1,885		$	3,041		$	2,364
Nonaccrual	17,911			16,135			13,721			13,685			8,355
Total nonperforming loans held for investment	20,363			18,235			15,606			16,726			10,719
Loans held for sale	—			—			196			397			—
Other real estate owned- foreclosed	8,771			7,830			7,447			7,262			8,206
Other real estate owned- acquired excess facilities	7,305			7,691			5,381			5,381			5,381
Other assets	1,519			1,499			1,779			1,637			1,564
Total nonperforming assets	$	37,958		$	35,255		$	30,409		$	31,403		$	25,870
Total nonperforming loans as a percentage of loans held for investment	0.47		%	0.43		%	0.41		%	0.46		%	0.30		%
Total nonperforming assets as a percentage of total assets	0.62		%	0.59		%	0.57		%	0.61		%	0.51		%
Total accruing loans over 90 days delinquent as a percentage of total assets	0.04		%	0.04		%	0.04		%	0.06		%	0.05		%
Loans restructured as troubled debt restructurings	$	11,460		$	8,714		$	8,953		$	6,794		$	7,679
Troubled debt restructurings as a percentage of loans held for investment	0.26		%	0.20		%	0.24		%	0.19		%	0.22		%

(a) Nonperforming assets excludes purchase credit impaired loans.

FB Financial Corporation 14

Preliminary Capital Ratios
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets:	September 30, 2019			December 31, 2018
Total Equity	$	744,835		$	671,857
Less:
Goodwill	168,486			137,190
Other intangibles	18,748			11,628
Tangible Common Equity	$	557,601		$	523,039
Total Assets	$	6,088,895		$	5,136,764
Less:
Goodwill	168,486			137,190
Other intangibles	18,748			11,628
Tangible Assets	$	5,901,661		$	4,987,946
Preliminary Total Risk-Weighted Assets	$	5,139,599		$	4,480,921
Total Common Equity to Total Assets	12.2		%	13.1		%
Tangible Common Equity to Tangible Assets*	9.4		%	10.5		%
	September 30, 2019			December 31, 2018
Preliminary Regulatory Capital:
Common Equity Tier 1 Capital	$	553,244		$	524,013
Tier 1 Capital	583,244			554,013
Total Capital	614,708			582,945
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1	10.8		%	11.7		%
Tier 1 Risk-Based	11.3		%	12.4		%
Total Risk-Based	12.0		%	13.0		%
Tier 1 Leverage	10.1		%	11.4		%

*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 15

Investment Portfolio
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2019															2018
Securities (at fair value)	Third Quarter					Second Quarter					First Quarter					Fourth Quarter					Third Quarter
Available for sale debt securities
U.S. government agency securities	$	999		—	%	$	996		—	%	$	993		—	%	$	989		—	%	$	984		—	%
Mortgage-backed securities - residential	485,300			72	%	517,505			77	%	511,716			77	%	508,580			78	%	467,714			77	%
Municipals, tax exempt	173,785			26	%	149,305			22	%	147,640			22	%	138,887			21	%	130,672			21	%
Treasury securities	7,432			1	%	7,409			1	%	7,305			1	%	7,242			1	%	7,131			1	%
Corporate securities	1,015			—	%	—			—	%	—			—	%	—			—	%	—			—	%
Total available for sale debt securities	668,531			99	%	675,215			100	%	667,654			100	%	655,698			100	%	606,501			99	%
Equity securities	3,250			1	%	3,242			—	%	3,181			—	%	3,107			—	%	3,067			1	%
Total securities	$	671,781		100	%	$	678,457		100	%	$	670,835		100	%	$	658,805		100	%	$	609,568		100	%
Securities to total assets	11.0		%			11.4		%			12.6		%			12.8		%			12.1		%

FB Financial Corporation 16

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019						2018
Net income, adjusted	Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Third Quarter
Pre-tax net income	$	31,684	$	25,002	25,563		$	22,680		$	28,079
Plus merger and mortgage restructuring expenses	407		4,612		1,675		401			—
Pre-tax net income, adjusted	32,091		29,614		27,238		23,081			28,079
Income tax expense, adjusted	7,824		7,516		6,412		5,745			6,702
Net income, adjusted	$	24,267	$	22,098	20,826		$	17,336		$	21,377
Weighted average common shares outstanding- fully diluted	31,425,573		31,378,018		31,349,198		31,344,949			31,339,628
Diluted earnings per share, adjusted
Diluted earnings per common share	$	0.76	$	0.59	0.62		$	0.54		$	0.68
Plus merger and mortgage restructuring expenses	0.01		0.15		0.05		0.01			—
Less tax effect	—		0.04		0.01		—			—
Diluted earnings per share, adjusted	$	0.77	$	0.70	$	0.66	$	0.55		$	0.68
Pro forma net income, adjusted*	YTD 2019		2018		2017		2016			2015
Pre-tax net income	$	82,249	$	105,854	$	73,485	$	62,324		$	50,824
Plus merger, conversion, offering, and mortgage restructuring expenses	6,694		2,265		19,034		3,268			3,543
Less significant (losses) gains on securities, other    real estate owned and other items	—		—		—		(3,539		)	4,638
Pre tax net income, adjusted	88,943		108,119		92,519		69,131			49,729
Pro forma income tax expense, adjusted	21,751		26,034		34,749		25,404			18,425
Pro forma net income, adjusted	$	67,192	$	82,085	$	57,770	$	43,727		$	31,304
Weighted average common shares outstanding-     fully diluted	31,378,786		31,314,981		28,207,602		19,312,174			17,180,000
Pro forma diluted earnings per share, adjusted*
Diluted earning per share	$	1.97	$	2.55	$	1.86	$	2.10		$	2.79
Plus merger, conversion, offering, and mortgage restructuring expenses	0.21		0.07		0.67		0.17			0.21
Less significant (losses) gains on securities, other    real estate owned and other items	—		—		—		(0.18		)	0.27
Less tax effect and benefit of enacted tax laws	0.05		0.01		0.48		0.19			0.91
Pro forma diluted earnings per share, adjusted	$	2.13	$	2.61	$	2.05	$	2.26		1.82

 *Prior to the IPO in the third quarter of 2016, the Company was an S corporation and did not incur federal income taxes. In conjunction with the IPO, the Company converted to a C corporation. These results are on a pro forma basis to reflect the results of the Company on a C corporation basis and combined effective tax rates of 35.08% and 36.75% for the years ended December 31, 2015 and 2016, respectively.

FB Financial Corporation 17

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019									2018
Core efficiency ratio (tax-equivalent basis)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Total noninterest expense	$	62,935		$	64,119		$	55,101		$	53,736		$	57,213
Less merger and mortgage restructuring expenses	407			4,612			1,675			401			—
Core noninterest expense	$	62,528		$	59,507		$	53,426		$	53,335		$	57,213
Net interest income (tax-equivalent basis)	$	58,769		$	57,488		$	53,461		$	51,799		$	53,161
Total noninterest income	38,145			32,979			29,039			27,249			34,355
Less (loss) gain on sales or write-downs of other real estate owned and other assets	(82		)	94			152			33			446
Less (loss) gain from securities, net	(20		)	52			43			—			(27		)
Core noninterest income	38,247			32,833			28,844			27,216			33,936
Core revenue	$	97,016		$	90,321		$	82,305		$	79,015		$	87,097
Efficiency ratio (GAAP)(a)	65.3		%	71.2		%	67.2		%	68.4		%	65.7		%
Core efficiency ratio (tax-equivalent basis)	64.5		%	65.9		%	64.9		%	67.5		%	65.7		%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
	2019									2018
Banking segment core efficiency ratio (tax equivalent)	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Core consolidated noninterest expense	$	62,528		$	59,507		$	53,426		$	53,335		$	57,213
Less Mortgage segment core noninterest expense	15,686			17,835			17,486			16,262			18,821
Core Banking segment noninterest expense	$	46,842		$	41,672		$	35,940		$	37,073		$	38,392
Core revenue	$	97,016		$	90,321		$	82,305		$	79,015		$	87,097
Less Mortgage segment total revenue	18,455			19,119			16,658			13,979			19,254
Core Banking segment total revenue	$	78,561		$	71,202		$	65,647		$	65,036		$	67,843
Banking segment core efficiency ratio (tax-equivalent basis)	59.6		%	58.5		%	54.7		%	57.0		%	56.6		%
Mortgage segment core efficiency ratio (tax equivalent)
Mortgage segment noninterest expense	$	15,798		$	18,664		$	18,540		$	16,262		$	18,821
Less mortgage restructuring expense	112			829			1,054			—			—
Core Mortgage segment noninterest expense	$	15,686		$	17,835		$	17,486		$	16,262		$	18,821
Mortgage segment total revenue	$	18,455		$	19,119		$	16,658		$	13,979		$	19,254
Mortgage segment core efficiency ratio (tax-equivalent basis)	85.0		%	93.3		%	N/A			N/A			97.8		%

FB Financial Corporation 18

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019									2018
Mortgage contribution, adjusted	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Mortgage segment pre-tax net contribution	$	2,657		$	455		$	(1,882	)	$	(2,283	)	$	433
Retail footprint:
Mortgage banking income	10,693			5,451			4,386			5,041			7,417
Mortgage banking expenses	8,087			4,172			2,831			4,542			6,383
Retail footprint pre-tax net contribution	2,606			1,279			1,555			499			1,034
Total mortgage banking pre-tax net (loss)    contribution	$	5,263		$	1,734		$	(327	)	$	(1,784	)	$	1,467
Plus mortgage restructuring expense	112			829			1,054			—			—
Total mortgage banking pre-tax net contribution    (loss), adjusted	$	5,375		$	2,563		$	727		$	(1,784	)	$	1,467
Pre-tax net income	$	31,684		$	25,002		$	25,563		$	22,680		$	28,079
% total mortgage banking pre-tax net contribution	16.6		%	6.94		%	N/A			N/A			5.22		%
Pre-tax net income, adjusted	$	32,091		$	29,614		$	27,238		$	23,081		$	28,079
% total mortgage banking pre-tax net    contribution, adjusted	16.7		%	8.65		%	2.67		%	N/A			5.22		%
	2019									2018
Tangible assets and equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Tangible Assets
Total assets	$	6,088,895		$	5,940,402		$	5,335,156		$	5,136,764		$	5,058,167
Less goodwill	168,486			168,486			137,190			137,190			137,190
Less intangibles, net	18,748			19,945			10,439			11,628			12,403
Tangible assets	$	5,901,661		$	5,751,971		$	5,187,527		$	4,987,946		$	4,908,574
Tangible Common Equity
Total shareholders' equity	$	744,835		$	718,759		$	694,577		$	671,857		$	648,731
Less goodwill	168,486			168,486			137,190			137,190			137,190
Less intangibles, net	18,748			19,945			10,439			11,628			12,403
Tangible common equity	$	557,601		$	530,328		$	546,948		$	523,039		$	499,138
Common shares outstanding	30,927,664			30,865,636			30,852,665			30,724,532			30,715,792
Book value per common share	$	24.08		$	23.29		$	22.51		$	21.87		$	21.12
Tangible book value per common share	$	18.03		$	17.18		$	17.73		$	17.02		$	16.25
Total shareholders' equity to total assets	12.2		%	12.1		%	13.0		%	13.1		%	12.8		%
Tangible common equity to tangible assets	9.45		%	9.22		%	10.5		%	10.5		%	10.2		%
	2019									2018
Return on average tangible common equity	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Total average shareholders' equity	$	731,701		$	708,557		$	684,545		$	659,050		$	638,388
Less average goodwill	168,486			167,781			137,190			137,190			137,190
Less average intangibles, net	19,523			20,214			10,856			12,016			12,803
Average tangible common equity	$	543,692		$	520,562		$	536,499		$	509,845		$	488,395
Net income	$	23,966		$	18,688		$	19,588		$	17,040		$	21,377
Return on average tangible common equity	17.5		%	14.4		%	14.8		%	13.3		%	17.4		%

FB Financial Corporation 19

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019									2018
Return on average tangible common equity,    adjusted	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Average tangible common equity	$	543,692		$	520,562		$	536,499		$	509,845		$	488,395
Net income, adjusted	24,267			22,098			20,826			17,336			21,377
Return on average tangible common equity,    adjusted	17.7		%	17.0		%	15.7		%	13.5		%	17.4		%
Pro forma return on average tangible common    equity	YTD 2019			2018			2017			2016			2015
Total average shareholders' equity	$	708,436		$	629,922		$	466,219		$	276,587		$	228,844
Less average goodwill	157,924			137,190			84,997			46,867			46,904
Less average intangibles, net	16,897			12,815			8,047			5,353			5,095
Average tangible common equity	$	533,615		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income	$	62,242		$	80,236		$	52,398		$	39,422		$	32,995
Pro forma return on average tangible common    equity	15.6		%	16.7		%	14.0		%	17.6		%	18.7		%
Pro forma return on average tangible common    equity, adjusted	YTD 2019			2018			2017			2016			2015
Average tangible common equity	$	533,615		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income, adjusted	67,192			82,085			57,770			43,727			31,304
Pro forma return on average tangible common    equity, adjusted	16.8		%	17.1		%	15.5		%	19.5		%	17.7		%
	2019									2018
Return on average assets and equity, adjusted	Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Net income	$	23,966		$	18,688		$	19,588		$	17,040		$	21,377
Average assets	5,988,572			5,771,371			5,174,918			5,005,158			4,932,197
Average equity	731,701			708,557			684,545			659,050			638,388
Return on average assets	1.59		%	1.30		%	1.54		%	1.35		%	1.72		%
Return on average equity	13.0		%	10.6		%	11.6		%	10.3		%	13.3		%
Net income, adjusted	$	24,267		$	22,098		$	20,826		$	17,336		$	21,377
Return on average assets, adjusted	1.61		%	1.54		%	1.63		%	1.37		%	1.72		%
Return on average equity, adjusted	13.2		%	12.5		%	12.3		%	10.4		%	13.3		%
Pro forma return on average assets and equity,    adjusted	YTD 2019			2018			2017			2016			2015
Pro forma net income	$	62,242		$	80,236		$	52,398		$	39,422		$	32,995
Average assets	5,647,705			4,844,865			3,811,158			3,001,275			2,577,895
Average equity	708,436			629,922			466,219			276,587			228,844
Pro forma return on average assets	1.47		%	1.66		%	1.37		%	1.31		%	1.28		%
Pro forma return on average equity	11.7		%	12.7		%	11.2		%	14.3		%	14.4		%
Pro forma net income, adjusted	$	67,192		$	82,085		$	57,770		$	43,727		$	31,304
Pro forma return on average assets, adjusted	1.59		%	1.69		%	1.52		%	1.46		%	1.21		%
Pro forma return on average equity, adjusted	12.7		%	13.0		%	12.4		%	15.8		%	13.7		%

FB Financial Corporation 20