FB Financial (FBK) 8-K FB Financial Corporation Reports Solid 2019 Fourth Quarter Results

Fourth Quarter 2019

Financial Supplement

TABLE OF CONTENTS

	Page
Financial Summary and Key Metrics	4
Consolidated Statements of Income	5
Consolidated Balance Sheets	7
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
	Fourth Quarter			Third Quarter			Second Quarter				First Quarter			Fourth Quarter
Statement of Income Data
Total interest income	$	71,643		$	73,242		$	71,719			$	65,933		$	63,068
Total interest expense	13,951			14,937			14,696				12,917			11,701
Net interest income	57,692			58,305			57,023				53,016			51,367
Provision for loan losses	2,950			1,831			881				1,391			2,200
Total noninterest income	35,234			38,145			32,979				29,039			27,249
Total noninterest expense	62,686			62,935			64,119				55,101			53,736
Net income before income taxes	27,290			31,684			25,002				25,563			22,680
Income tax expense	5,718			7,718			6,314				5,975			5,640
Net income	$	21,572		$	23,966		$	18,688			$	19,588		$	17,040
Net interest income (tax—equivalent basis)	$	58,212		$	58,769		$	57,488			$	53,461		$	51,799
Net income, adjusted*	$	22,079		$	24,267		$	22,098			$	20,826		$	17,336
Per Common Share
Diluted net income	$	0.68		$	0.76		$	0.59			$	0.62		$	0.54
Diluted net income, adjusted*	0.70			0.77			0.70				0.66			0.55
Book value	24.56			24.08			23.29				22.51			21.87
Tangible book value*	18.55			18.03			17.18				17.73			17.02
Weighted average number of shares outstanding- fully diluted	31,470,565			31,425,573			31,378,018				31,349,198			31,344,949
Period-end number of shares	31,034,315			30,927,664			30,865,636				30,852,665			30,724,532
Selected Balance Sheet Data
Cash and cash equivalents	$	232,681		$	242,997		$	164,336			$	195,414		$	125,356
Loans held for investment (HFI)	4,409,642			4,345,344			4,289,516				3,786,791			3,667,511
Allowance for loan losses	(31,139		)	(31,464		)	(30,138		)		(29,814		)	(28,932		)
Loans held for sale	262,518			305,493			294,699				248,054			278,815
Investment securities, at fair value	691,676			671,781			678,457				670,835			658,805
Other real estate owned, net	18,939			16,076			15,521				12,828			12,643
Total assets	6,124,921			6,088,895			5,940,402				5,335,156			5,136,764
Customer deposits	4,914,587			4,896,327			4,812,962				4,242,349			4,068,610
Brokered and internet time deposits	20,351			25,436			29,864				60,842			103,107
Total deposits	4,934,938			4,921,763			4,842,826				4,303,191			4,171,717
Borrowings	304,675			307,129			257,299				229,178			227,776
Total shareholders' equity	762,329			744,835			718,759				694,577			671,857
Selected Ratios
Return on average:
Assets	1.39		%	1.59		%	1.30		%		1.54		%	1.35		%
Shareholders' equity	11.2		%	13.0		%	10.6		%		11.6		%	10.3		%
Tangible common equity*	14.9		%	17.5		%	14.4		%		14.8		%	13.3		%
Average shareholders' equity to average assets	12.4		%	12.2		%	12.3		%		13.2		%	13.2		%
Net interest margin (NIM) (tax-equivalent basis)	4.12		%	4.28		%	4.39		%		4.61		%	4.50		%
Efficiency ratio (GAAP)	67.5		%	65.3		%	71.2		%		67.2		%	68.4		%
Core efficiency ratio (tax-equivalent basis)*	66.5		%	64.5		%	65.9		%		64.9		%	67.5		%
Loans HFI to deposit ratio	89.4		%	88.3		%	88.6		%		88.0		%	87.9		%
Total loans to deposit ratio	94.7		%	94.5		%	94.7		%		93.8		%	94.6		%
Yield on interest-earning assets	5.11		%	5.37		%	5.52		%		5.73		%	5.52		%
Cost of interest-bearing liabilities	1.38		%	1.50		%	1.54		%		1.52		%	1.40		%
Cost of total deposits	1.02		%	1.11		%	1.14		%		1.14		%	1.03		%
Credit Quality Ratios
Allowance for loan losses as a percentage of loans HFI	0.71		%	0.72		%	0.70		%		0.79		%	0.79		%
Net charge-offs as a percentage of average loans HFI	0.30		%	0.05		%	0.05		%		0.06		%	0.06		%
Nonperforming loans HFI as a percentage of total loans HFI	0.60		%	0.47		%	0.43		%		0.41		%	0.46		%
Nonperforming assets as a percentage of total assets	0.77		%	0.62		%	0.59		%		0.57		%	0.61		%
Preliminary capital ratios (Consolidated)
Shareholders' equity to assets	12.4		%	12.2		%	12.1		%		13.0		%	13.1		%
Tangible common equity to tangible assets*	9.69		%	9.45		%	9.22		%		10.5		%	10.5		%
Tier 1 capital (to average assets)	10.1		%	10.1		%	10.0		%	��	11.5		%	11.4		%
Tier 1 capital (to risk-weighted assets)	11.6		%	11.3		%	11.0		%		12.7		%	12.4		%
Total capital (to risk-weighted assets)	12.2		%	12.0		%	11.6		%		13.4		%	13.0		%
Common Equity Tier 1 (to risk-weighted assets) (CET1)	11.1		%	10.8		%	10.4		%		12.0		%	11.7		%

*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 %)
												Q4 2019		Q4 2019
												vs.		vs.
	2019								2018			Q3 2019		Q4 2018
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Percent variance		Percent variance
Interest income:
Interest and fees on loans	$	66,095	$	67,639	$	66,276	$	60,448	$	57,875		(2.28	)%	14.2	%
Interest on securities
Taxable	2,969		3,137		3,548		3,569		3,260			(5.36	)%	(8.93	)%
Tax-exempt	1,327		1,174		1,160		1,144		1,110			13.0	%	19.5	%
Other	1,252		1,292		735		772		823			(3.10	)%	52.1	%
Total interest income	71,643		73,242		71,719		65,933		63,068			(2.18	)%	13.6	%
Interest expense:
Deposits	12,703		13,522		13,488		11,855		10,703			(6.06	)%	18.7	%
Borrowings	1,248		1,415		1,208		1,062		998			(11.8	)%	25.1	%
Total interest expense	13,951		14,937		14,696		12,917		11,701			(6.60	)%	19.2	%
Net interest income	57,692		58,305		57,023		53,016		51,367			(1.05	)%	12.3	%
Provision for loan losses	2,950		1,831		881		1,391		2,200			61.1	%	34.09	%
Net interest income after provision for loan losses	54,742		56,474		56,142		51,625		49,167			(3.07	)%	11.3	%
Noninterest income:
Mortgage banking income	26,176		29,193		24,526		21,021		18,997			(10.3	)%	37.79	%
Service charges on deposit accounts	2,657		2,416		2,327		2,079		2,286			9.98	%	16.23	%
ATM and interchange fees	3,315		3,188		3,002		2,656		2,660			3.98	%	24.6	%
Investment services and trust income	1,326		1,336		1,287		1,295		1,384			(0.75	)%	(4.19	)%
(Loss) gain from securities, net	(18)		(20)		52		43		—			(10.0	)%	100.0	%
Gain (loss) on sales or write-downs of other real estate owned	433		(126)		277		(39)		(56		)	(443.7	)%	(873.2	)%
(Loss) gain from other assets	(156)		44		(183)		191		89			(454.5	)%	(275.3	)%
Other income	1,501		2,114		1,691		1,793		1,889			(29.00	)%	(20.54	)%
Total noninterest income	35,234		38,145		32,979		29,039		27,249			(7.63	)%	29.3	%
Total revenue	92,926		96,450		90,002		82,055		78,616			(3.65	)%	18.2	%
Noninterest expenses:
Salaries, commissions and employee benefits	39,589		40,880		37,918		33,697		33,286			(3.16	)%	18.9	%
Occupancy and equipment expense	3,534		4,058		4,319		3,730		3,493			(12.9	)%	1.17	%
Legal and professional fees	2,074		1,993		1,694		1,725		1,978			4.06	%	4.85	%
Data processing	2,746		2,816		2,643		2,384		2,365			(2.49	)%	16.1	%
Merger costs	686		295		3,783		621		401			132.5	%	71.1	%
Amortization of core deposits and other intangibles	1,159		1,197		1,254		729		753			(3.17	)%	53.9	%
Advertising	2,072		1,895		2,434		2,737		2,639			9.34	%	(21.5	)%
Mortgage restructuring expense	—		112		829		1,054		—			(100.0	)%	—	%
Other expense	10,826		9,689		9,245		8,424		8,821			11.7	%	22.7	%
Total noninterest expense	62,686		62,935		64,119		55,101		53,736			(0.40	)%	16.7	%
Income before income taxes	27,290		31,684		25,002		25,563		22,680			(13.9	)%	20.3	%
Income tax expense	5,718		7,718		6,314		5,975		5,640			(25.9	)%	1.38	%
Net income	$	21,572	$	23,966	$	18,688	$	19,588	$	17,040		(10.0	)%	26.6	%
Earnings available to common shareholders	$	21,458	$	23,838	$	18,588	$	19,483	$	16,949
Weighted average common shares outstanding:
Basic	30,934,092		30,899,583		30,859,596		30,786,684		30,717,008			0.11	%	0.71	%
Fully diluted	31,470,565		31,425,573		31,378,018		31,349,198		31,344,949			0.14	%	0.40	%
Earnings per common share:
Basic	$	0.69	$	0.77	$	0.60	$	0.63	$	0.55		(10.4	)%	25.5	%
Fully diluted	0.68		0.76		0.59		0.62		0.54			(10.5	)%	25.9	%
Fully diluted- adjusted*	0.70		0.77		0.70		0.66		0.55			(9.09	)%	27.3	%

*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 5

Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share Data and %)
							YTD 2019
	For the year ended						vs.
	December 31,						YTD 2018
	2019			2018			Percent variance
Interest income:
Interest and fees on loans	$	260,458		$	221,001		17.9	%
Interest on securities
Taxable	13,223			12,397			6.66	%
Tax-exempt	4,805			4,047			18.7	%
Other	4,051			2,126			90.5	%
Total interest income	282,537			239,571			17.9	%
Interest expense:
Deposits	51,568			29,536			74.6	%
Borrowings	4,933			5,967			(17.3	)%
Total interest expense	56,501			35,503			59.1	%
Net interest income	226,036			204,068			10.8	%
Provision for loan losses	7,053			5,398			30.7	%
Net interest income after provision for loan losses	218,983			198,670			10.2	%
Noninterest income:
Mortgage banking income	100,916			100,661			0.25	%
Service charges on deposit accounts	9,479			8,502			11.5	%
ATM and interchange fees	12,161			10,013			21.5	%
Investment services and trust income	5,244			5,181			1.22	%
Gain (loss) from securities, net	57			(116		)	149.1	%
Gain (loss) on sales or write-downs of other real estate owned	545			(99		)	650.5	%
(Loss) gain on other assets	(104		)	328			(131.7	)%
Other income	7,099			6,172			15.0	%
Total noninterest income	135,397			130,642			3.64	%
Total revenue	361,433			334,710			7.98	%
Noninterest expenses:
Salaries, commissions and employee benefits	152,084			136,892			11.10	%
Occupancy and equipment expense	15,641			13,976			11.9	%
Legal and professional fees	7,486			7,903			(5.28	)%
Data processing	10,589			9,100			16.4	%
Merger expense	5,385			1,594			237.8	%
Amortization of core deposit and other intangibles	4,339			3,185			36.2	%
Advertising	9,138			13,139			(30.5	)%
Mortgage restructuring expense	1,995			—			100.0	%
Other expense	38,184			37,669			1.37	%
Total noninterest expense	244,841			223,458			9.57	%
Net income before income taxes	109,539			105,854			3.48	%
Income tax expense	25,725			25,618			0.42	%
Net income	$	83,814		$	80,236		4.46	%
Earnings available to common shareholders	$	83,367		$	79,808
Weighted average common shares outstanding:
Basic	30,870,474			30,675,755			0.63	%
Fully diluted	31,402,897			31,314,981			0.28	%
Earnings per common share:
Basic	$	2.70		$	2.60		3.85	%
Fully diluted	2.65			2.55			3.92	%
Fully diluted- adjusted*	2.83			2.61			8.43	%

*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 6

Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except %)
												Annualized
												Q4 2019		Q4 2019
												vs.		vs.
	2019								2018			Q3 2019		Q4 2018
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter		Fourth Quarter			Percent variance		Percent variance
ASSETS
Cash and due from banks	$	48,806	$	31,594	$	64,458	$	60,253	$	38,381		216.1	%	27.2	%
Federal funds sold	131,119		50,532		9,781		6,600		31,364			632.7	%	318.1	%
Interest bearing deposits in financial institutions	52,756		160,871		90,097		128,561		55,611			(266.6	)%	(5.13	)%
Cash and cash equivalents	232,681		242,997		164,336		195,414		125,356			(16.8	)%	85.6	%
Investments:
Available-for-sale debt securities, at fair value	688,381		668,531		675,215		667,654		655,698			11.8	%	4.98	%
Equity securities, at fair value	3,295		3,250		3,242		3,181		3,107			5.49	%	6.05	%
Federal Home Loan Bank stock, at cost	15,976		15,976		15,976		13,432		13,432			—	%	18.9	%
Loans held for sale, at fair value	262,518		305,493		294,699		248,054		278,815			(55.8	)%	(5.85	)%
Loans	4,409,642		4,345,344		4,289,516		3,786,791		3,667,511			5.87	%	20.2	%
Less: allowance for loan losses	31,139		31,464		30,138		29,814		28,932			(4.10	)%	7.63	%
Net loans	4,378,503		4,313,880		4,259,378		3,756,977		3,638,579			5.94	%	20.3	%
Premises and equipment, net	90,131		91,815		92,407		87,013		86,882			(7.28	)%	3.74	%
Other real estate owned, net	18,939		16,076		15,521		12,828		12,643			70.7	%	49.8	%
Operating lease right-of-use assets	32,539		34,812		35,872		32,694		—			(25.9	)%	100.0	%
Interest receivable	17,083		17,729		17,952		16,611		14,503			(14.5	)%	17.8	%
Mortgage servicing rights, at fair value	75,521		66,156		66,380		64,031		88,829			56.2	%	(15.0	)%
Goodwill(a)	169,051		168,486		168,486		137,190		137,190			1.33	%	23.2	%
Core deposit and other intangibles, net	17,589		18,748		19,945		10,439		11,628			(24.5	)%	51.3	%
Other assets	122,714		124,946		110,993		89,638		70,102			(7.09	)%	75.1	%
Total assets	$	6,124,921	$	6,088,895	$	5,940,402	$	5,335,156	$	5,136,764		2.35	%	19.2	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	1,208,175	$	1,214,373	$	1,111,921	$	964,745	$	949,135		(2.02	)%	27.3	%
Interest-bearing checking	1,014,875		1,029,430		984,847		937,323		863,706			(5.61	)%	17.5	%
Money market and savings	1,520,035		1,481,697		1,468,867		1,257,863		1,239,131			10.3	%	22.7	%
Customer time deposits	1,171,502		1,170,827		1,247,327		1,082,418		1,016,638			0.23	%	15.2	%
Brokered and internet time deposits	20,351		25,436		29,864		60,842		103,107			(79.3	)%	(80.3	)%
Total deposits	4,934,938		4,921,763		4,842,826		4,303,191		4,171,717			1.06	%	18.3	%
Borrowings	304,675		307,129		257,299		229,178		227,776			(3.17	)%	33.8	%
Operating lease liabilities	35,525		37,760		38,722		35,093		—			(23.5	)%	100.0	%
Accrued expenses and other liabilities	87,454		77,408		82,796		73,117		65,414			51.5	%	33.7	%
Total liabilities	5,362,592		5,344,060		5,221,643		4,640,579		4,464,907			1.38	%	20.1	%
Shareholders' equity:
Common stock, $1 par value	31,034		30,928		30,866		30,853		30,725			1.36	%	1.01	%
Additional paid-in capital	425,633		426,816		425,644		423,647		424,146			(1.10	)%	0.35	%
Retained earnings	293,524		274,491		253,080		236,947		221,213			27.5	%	32.7	%
Accumulated other comprehensive income (loss), net	12,138		12,600		9,169		3,130		(4,227		)	(14.5	)%	(387.2	)%
Total shareholders' equity	762,329		744,835		718,759		694,577		671,857			9.32	%	13.5	%
Total liabilities and shareholders' equity	$	6,124,921	$	6,088,895	$	5,940,402	$	5,335,156	$	5,136,764		2.35	%	19.2	%

^(a) Increase of $565 attributable to finalization of purchase accounting on the Atlantic Capital branch acquisition during the fourth quarter of 2019.

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
	December 31, 2019							September 30, 2019
	Average balances			Interest income/ expense		Average yield/ rate		Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	4,384,180		$	64,053	5.80	%	$	4,306,725		$	65,241	6.01	%
Loans held for sale	257,833			2,095		3.22	%	262,896			2,448		3.69	%
Securities:
Taxable	505,299			2,969		2.33	%	508,924			3,137		2.45	%
Tax-exempt(a)	181,922			1,794		3.91	%	153,633			1,588		4.10	%
Total securities(a)	687,221			4,763		2.75	%	662,557			4,725		2.83	%
Federal funds sold	69,749			301		1.71	%	24,388			166		2.70	%
Interest-bearing deposits with other financial institutions	185,319			790		1.69	%	176,708			950		2.13	%
FHLB stock	15,976			161		4.00	%	15,976			176		4.37	%
Total interest-earning assets(a)	5,600,278			72,163		5.11	%	5,449,250			73,706		5.37	%
Noninterest-earning assets:
Cash and due from banks	49,318							51,433
Allowance for loan losses	(31,631		)					(30,484		)
Other assets	539,966							518,373
Total noninterest-earning assets	557,653							539,322
Total assets	$	6,157,931						$	5,988,572
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	981,572		$	2,068	0.84	%	$	971,686		$	2,338	0.95	%
Money market	1,320,268			4,309		1.29	%	1,260,555			4,607		1.45	%
Savings deposits	210,550			79		0.15	%	207,221			78		0.15	%
Customer time deposits	1,175,467			6,133		2.07	%	1,184,737			6,362		2.13	%
Brokered and internet time deposits	23,219			114		1.95	%	28,273			137		1.92	%
Time deposits	1,198,686			6,247		2.07	%	1,213,010			6,499		2.13	%
Total interest-bearing deposits	3,711,076			12,703		1.36	%	3,652,472			13,522		1.47	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	27,610			59		0.85	%	30,585			80		1.04	%
Federal Home Loan Bank advances	250,000			788		1.25	%	248,315			918		1.47	%
Subordinated debt	30,930			401		5.14	%	30,930			417		5.35	%
Total other interest-bearing liabilities	308,540			1,248		1.60	%	309,830			1,415		1.81	%
Total interest-bearing liabilities	4,019,616			13,951		1.38	%	3,962,302			14,937		1.50	%
Noninterest-bearing liabilities:
Demand deposits	1,253,311							1,180,685
Other liabilities	123,055							113,884
Total noninterest-bearing liabilities	1,376,366							1,294,569
Total liabilities	5,395,982							5,256,871
Shareholders' equity	761,949							731,701
Total liabilities and shareholders' equity	$	6,157,931						$	5,988,572
Net interest income(a)				$	58,212						$	58,769
Interest rate spread(a)						3.74	%						3.87	%
Net interest margin(a)						4.12	%						4.28	%
Cost of total deposits						1.02	%						1.11	%
Average interest-earning assets to average interest-bearing liabilities						139.3	%						137.5	%
Tax-equivalent adjustment				$	520						$	464
Loans HFI yield components:
Contractual interest rate(a)				$	58,219	5.27	%				$	59,645	5.50	%
Origination and other loan fee income				2,863		0.26	%				3,293		0.30	%
Accretion on purchased loans				2,526		0.23	%				2,102		0.19	%
Nonaccrual interest				439		0.04	%				201		0.02	%
Syndication fee income				6		—	%				—		—	%
Total loans HFI yield				$	64,053	5.80	%				$	65,241	6.01	%

(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
	June 30, 2019					March 31, 2019							December 31, 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)	4,177,701		63,262	6.07	%	$	3,720,739		$	58,137	6.34	%	$	3,559,587		$	54,858	6.11	%
Loans held for sale	281,252		3,070	4.38	%	216,227			2,353		4.41	%	260,763			3,058		4.65	%
Securities:
Taxable	532,500		3,548	2.67	%	518,504			3,569		2.79	%	487,843			3,260		2.65	%
Tax-exempt(a)	146,282		1,569	4.30	%	138,847			1,547		4.52	%	130,465			1,501		4.56	%
Total securities(a)	678,782		5,117	3.02	%	657,351			5,116		3.16	%	618,308			4,761		3.05	%
Federal funds sold	12,219		88	2.89	%	18,392			123		2.71	%	27,835			160		2.28	%
Interest-bearing deposits with other financial institutions	81,540		465	2.29	%	75,291			446		2.40	%	86,421			464		2.13	%
FHLB stock	15,165		182	4.81	%	13,432			203		6.13	%	13,432			199		5.88	%
Total interest-earning assets(a)	5,246,659		72,184	5.52	%	4,701,432			66,378		5.73	%	4,566,346			63,500		5.52	%
Noninterest-earning assets:
Cash and due from banks	54,659					50,218							53,067
Allowance for loan losses	(30,092	)				(29,537		)					(27,369		)
Other assets	500,145					452,805							413,114
Total noninterest-earning assets	524,712					473,486							438,812
Total assets	5,771,371					$	5,174,918						$	5,005,158
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	968,081		2,295	0.95	%	$	878,167		$	2,054	0.95	%	$	828,507		$	1,870	0.90	%
Money market	1,221,450		4,508	1.48	%	1,073,170			3,956		1.49	%	1,058,172			3,568		1.34	%
Savings deposits	203,602		76	0.15	%	176,305			68		0.16	%	174,199			67		0.15	%
Customer time deposits	1,185,451		6,299	2.13	%	1,053,958			5,309		2.04	%	983,204			4,649		1.88	%
Brokered and internet time deposits	56,242		310	2.21	%	93,434			468		2.03	%	107,129			549		2.03	%
Time deposits	1,241,693		6,609	2.13	%	1,147,392			5,777		2.04	%	1,090,333			5,198		1.89	%
Total interest-bearing deposits	3,634,826		13,488	1.49	%	3,275,034			11,855		1.47	%	3,151,211			10,703		1.35	%
Other interest-bearing liabilities:
Securities sold under agreements to    repurchase and federal funds purchased	31,905		117	1.47	%	15,319			35		0.93	%	18,378			29		0.63	%
Federal Home Loan Bank advances	131,726		664	2.02	%	117,875			634		2.18	%	106,468			554		2.06	%
Subordinated debt	30,930		427	5.54	%	30,930			393		5.15	%	30,930			415		5.32	%
Total other interest-bearing liabilities	194,561		1,208	2.49	%	164,124			1,062		2.62	%	155,776			998		2.54	%
Total interest-bearing liabilities	3,829,387		14,696	1.54	%	3,439,158			12,917		1.52	%	3,306,987			11,701		1.40	%
Noninterest-bearing liabilities:
Demand deposits	1,128,311					955,156							987,127
Other liabilities	105,116					96,059							51,994
Total noninterest-bearing liabilities	1,233,427					1,051,215							1,039,121
Total liabilities	5,062,814					4,490,373							4,346,108
Shareholders' equity	708,557					684,545							659,050
Total liabilities and shareholders' equity	5,771,371					$	5,174,918						$	5,005,158
Net interest income(a)			57,488						$	53,461						$	51,799
Interest rate spread(a)				3.98	%						4.21	%						4.11	%
Net interest margin(a)				4.39	%						4.61	%						4.50	%
Cost of total deposits				1.14	%						1.14	%						1.03	%
Average interest-earning assets to average interest-bearing liabilities				137.0	%						136.7	%						138.1	%
Tax-equivalent adjustment			465						$	445						$	432
Loans HFI yield components:
Contractual interest rate(a)			58,028	5.57	%				$	52,177	5.69	%				$	49,873	5.56	%
Origination and other loan fee income			2,981	0.29	%				3,840		0.42	%				2,998		0.33	%
Accretion on purchased loans			2,097	0.20	%				1,831		0.20	%				1,863		0.21	%
Nonaccrual interest			156	0.01	%				89		0.01	%				96		0.01	%
Syndication fee income			—	—	%				200		0.02	%				28		—	%
Total loans HFI yield			63,262	6.07	%				$	58,137	6.34	%				$	54,858	6.11	%

(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 Years Ended
(Unaudited)
(In Thousands, Except %)
	December 31, 2019							December 31, 2018
	Average balances			Interest income/ expense		Average yield/ rate		Average balances			Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)	$	4,149,590		$	250,693	6.04	%	$	3,376,203		$	205,543	6.09	%
Loans held for sale	254,689			9,966		3.91	%	352,370			15,632		4.44	%
Securities:
Taxable	516,250			13,223		2.56	%	478,034			12,397		2.59	%
Tax-exempt(a)	155,306			6,498		4.18	%	119,295			5,473		4.59	%
Total securities(a)	671,556			19,721		2.94	%	597,329			17,870		2.99	%
Federal funds sold	31,309			678		2.17	%	21,466			412		1.92	%
Interest-bearing deposits with other financial institutions	130,145			2,651		2.04	%	49,549			998		2.01	%
FHLB stock	15,146			722		4.77	%	12,742			716		5.62	%
Total interest-earning assets(a)	5,252,435			284,431		5.42	%	4,409,659			241,171		5.47	%
Noninterest-earning assets:
Cash and due from banks	51,194							49,410
Allowance for loan losses	(30,442		)					(25,747		)
Other assets	504,485							411,543
Total noninterest-earning assets	525,237							435,206
Total assets	$	5,777,672						$	4,844,865
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	950,219		$	8,755	0.92	%	$	894,252		$	6,488	0.73	%
Money market	1,219,652			17,380		1.42	%	1,027,047			10,895		1.06	%
Savings deposits	199,535			301		0.15	%	178,303			272		0.15	%
Customer time deposits	1,155,058			24,103		2.09	%	744,834			10,409		1.40	%
Brokered and internet time deposits	45,313			1,029		2.27	%	82,113			1,472		1.79	%
Time deposits	1,200,371			25,132		2.09	%	826,947			11,881		1.44	%
Total interest-bearing deposits	3,569,777			51,568		1.44	%	2,926,549			29,536		1.01	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	26,400			291		1.10	%	19,528			150		0.77	%
Federal Home Loan Bank advances	187,509			3,004		1.60	%	216,011			4,166		1.93	%
Subordinated debt	30,930			1,638		5.30	%	30,930			1,651		5.34	%
Total other interest-bearing liabilities	244,839			4,933		2.01	%	266,469			5,967		2.24	%
Total interest-bearing liabilities	3,814,616			56,501		1.48	%	3,193,018			35,503		1.11	%
Noninterest-bearing liabilities:
Demand deposits	1,130,113							967,663
Other liabilities	109,449							54,262
Total noninterest-bearing liabilities	1,239,562							1,021,925
Total liabilities	5,054,178							4,214,943
Shareholders' equity	723,494							629,922
Total liabilities and shareholders' equity	$	5,777,672						$	4,844,865
Net interest income(a)				$	227,930						$	205,668
Interest rate spread(a)						3.94	%						4.36	%
Net interest margin(a)						4.34	%						4.66	%
Cost of total deposits						1.10	%						0.76	%
Average interest-earning assets to average interest- bearing liabilities						137.7	%						138.1	%
Tax equivalent adjustment				$	1,894						$	1,600
Loans HFI yield components:
Contractual interest rate(a)				$	228,069	5.50	%				$	183,116	5.42	%
Origination and other loan fee income				12,977		0.31	%				13,093		0.39	%
Accretion on purchased loans				8,556		0.21	%				7,608		0.23	%
Nonaccrual interest				885		0.02	%				1,375		0.04	%
Syndication fee income				206		—	%				351		0.01	%
Total loans HFI yield				$	250,693	6.04	%				$	205,543	6.09	%

(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
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter		Fourth Quarter
Loans by market
Metropolitan	$	3,061,183	$	3,011,118	$	2,970,794	$	2,516,582	$	2,413,674
Community	817,380		802,923		803,306		784,671		788,619
Specialty lending and other	531,079		531,303		515,416		485,538		465,218
Total	$	4,409,642	$	4,345,344	$	4,289,516	$	3,786,791	$	3,667,511
Deposits by market
Metropolitan	$	2,963,524	$	2,869,049	$	2,794,977	$	2,350,421	$	2,283,983
Community	1,642,949		1,620,153		1,612,885		1,482,877		1,451,494
Mortgage and other(a)	328,465		432,561		434,964		469,893		436,240
Total	$	4,934,938	$	4,921,763	$	4,842,826	$	4,303,191	$	4,171,717

(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
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Banking segment
Net interest income	$	57,776		$	58,350		$	56,979		$	52,993		$	51,344
Provision for loan losses	2,950			1,831			881			1,391			2,200
Mortgage banking income retail footprint	9,899			10,693			5,451			4,386			5,041
Other noninterest income	9,058			8,952			8,453			8,018			8,252
Other noninterest mortgage banking expenses	8,126			8,087			4,172			2,831			4,542
Merger expense	686			295			3,783			621			401
Other noninterest expense	38,918			38,755			37,500			33,109			32,531
Pre-tax income after allocations	$	26,053		$	29,027		$	24,547		$	27,445		$	24,963
Total assets	$	5,795,888		$	5,730,492		$	5,552,893		$	4,987,744		$	4,752,111
Intracompany funding income included in net interest income	2,460			2,875			3,290			2,558			3,035
Core efficiency ratio*	61.1		%	59.6		%	58.5		%	54.7		%	57.0		%
Mortgage segment
Net interest income	$	(84	)	$	(45	)	$	44		$	23		$	23
Noninterest income	16,277			18,500			19,075			16,635			13,956
Mortgage restructuring expense	—			112			829			1,054			—
Noninterest expense	14,956			15,686			17,835			17,486			16,262
Direct (loss) contribution	$	1,237		$	2,657		$	455		$	(1,882	)	$	(2,283	)
Total assets	$	329,033		$	358,403		$	387,509		$	347,412		$	384,653
Intracompany funding expense included in net interest income	2,460			2,875			3,290			2,558			3,035
Core efficiency ratio*	92.4		%	85.0		%	93.3		%	N/A			N/A
Interest rate lock commitments volume during the period
Consumer direct	$	679,096		$	973,142		$	805,970		$	521,603		$	463,669
Third party origination (TPO)	—			—			156,844			170,529			168,139
Retail	402,490			503,861			407,007			291,800			242,059
Correspondent	—			159,263			450,529			380,854			437,482
Total	$	1,081,586		$	1,636,266		$	1,820,350		$	1,364,786		$	1,311,349
Interest rate lock commitments pipeline (period end)
Consumer direct	$	348,389		$	519,698		$	397,150		$	235,505		$	147,297
Third party origination (TPO)	—			—			—			73,218			53,080
Retail	104,809			159,826			135,655			110,480			70,389
Correspondent	—			—			75,925			73,304			47,940
Total	$	453,198		$	679,524		$	608,730		$	492,507		$	318,706
Mortgage sales
Consumer direct	$	718,624		$	588,535		$	428,886		$	287,720		$	421,897
Third party origination (TPO)	—			31,015			129,511			118,563			145,385
Retail	120,487			94,735			81,849			59,084			63,261
Retail footprint	266,328			256,060			205,698			146,312			168,554
Reverse	—			—			704			4,111			7,262
Correspondent	652			253,640			412,014			350,435			424,717
Total	$	1,106,091		$	1,223,985		$	1,258,662		$	966,225		$	1,231,076
Gains and fees from origination and sale of mortgage loans held for sale	$	31,807		$	28,020		$	20,976		$	15,907		$	21,483
Net change in fair value of loans held for sale, derivatives, and other	(4,328		)	2,304			3,298			2,244			(4,623		)
Mortgage servicing income	4,914			3,960			4,052			4,751			4,618
Change in fair value of mortgage servicing rights, net of hedging	(6,217		)	(5,091		)	(3,800)			(1,881)			(2,481		)
Total mortgage banking income	$	26,176		$	29,193		$	24,526		$	21,021		$	18,997
Mortgage sale margin(a)	2.88		%	2.29		%	1.67		%	1.65		%	1.75		%

*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
	Fourth Quarter			% of Total		Third Quarter			% of Total		Second Quarter			% of Total		First Quarter			% of Total		Fourth Quarter			% of Total
Loan portfolio
Commercial and industrial	$	1,034,036		23	%	$	997,921		23	%	$	989,288		23	%	$	888,345		23	%	$	867,083		24	%
Construction	551,101			13	%	537,784			12	%	525,954			12	%	539,065			14	%	556,051			15	%
Residential real estate:
1-to-4 family mortgage	710,724			16	%	710,077			17	%	688,984			16	%	552,239			15	%	555,815			16	%
Residential line of credit	221,530			5	%	215,493			5	%	218,006			5	%	187,415			5	%	190,480			5	%
Multi-family mortgage	69,429			2	%	80,352			2	%	82,945			2	%	71,532			2	%	75,457			2	%
Commercial real estate:
Owner occupied	630,270			14	%	620,635			14	%	602,723			14	%	499,123			13	%	493,524			13	%
Non-owner occupied	920,744			21	%	914,502			21	%	922,150			22	%	816,880			22	%	700,248			19	%
Consumer and other	271,808			6	%	268,580			6	%	259,466			6	%	232,192			6	%	228,853			6	%
Total loans HFI	$	4,409,642		100	%	$	4,345,344		100	%	$	4,289,516		100	%	$	3,786,791		100	%	$	3,667,511		100	%
Allowance for loan losses rollforward summary
Allowance for loan losses at the beginning of the period	$	31,464				$	30,138				$	29,814				$	28,932				$	27,608
Charge-offs	(3,594		)			(717		)			(770		)			(871		)			(806		)
Recoveries	319					212					213					362					279
Provision for loan losses	2,950					1,831					881					1,391					2,200
Adjustment for transfers to loans HFS	—					—					—					—					(349		)
Allowance for loan losses at the end of the period	$	31,139				$	31,464				$	30,138				$	29,814				$	28,932
Allowance for loan losses as a percentage of total loans HFI	0.71		%			0.72		%			0.70		%			0.79		%			0.79		%
Charge-offs
Commercial and Industrial	$	(2,669	)			$	(3	)			$	(79	)			$	(179	)			$	(340	)
Construction	—					—					—					—					—
Residential real estate:
1-to-4 family mortgage	(138		)			—					(1		)			(81		)			(69		)
Residential line of credit	(4		)			(170		)			(103		)			(32		)			(3		)
Multi-family mortgage	—					—					—					—					—
Commercial real estate:
Owner occupied	—					—					—					—					(36		)
Non-owner occupied	—					(12		)			—					—					—
Consumer and other	(783		)			(532		)			(587		)			(579		)			(358		)
Total charge-offs	(3,594		)			(717		)			(770		)			(871		)			(806		)
Recoveries
Commercial and Industrial	70					16					38					12					16
Construction	3					1					6					1					37
Residential real estate:
1-to-4 family mortgage	17					25					24					13					14
Residential line of credit	17					75					21					25					76
Multi-family mortgage	—					—					—					—					—
Commercial real estate:
Owner occupied	13					3					5					87					2
Non-owner occupied	—					—					—					—					—
Consumer and other	199					92					119					224					134
Total recoveries	319					212					213					362					279
Net charge-offs	$	(3,275	)			$	(505	)			$	(557	)			$	(509	)			$	(527	)
Net charge-offs as a percentage of average total loans	0.30		%			0.05		%			0.05		%			0.06		%			0.06		%
Loans classified as substandard	$	80,346				$	78,881				$	68,828				$	60,746				$	66,487
Purchased credit impaired loans	57,152					63,069					67,450					62,564					68,999

FB Financial Corporation 13

Loan Portfolio and Asset Quality
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2019												2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Nonperforming assets(a)(b)
Past due 90 days or more and accruing interest	$	5,543		$	2,452		$	2,100		$	1,885		$	3,041
Nonaccrual	21,062			17,911			16,135			13,721			13,685
Total nonperforming loans held for investment	26,605			20,363			18,235			15,606			16,726
Loans held for sale	—			—			—			196			397
Other real estate owned:
Foreclosed	9,983			8,771			7,830			7,447			7,262
Excess land and facilities	8,956			7,305			7,691			5,381			5,381
Other assets	1,580			1,519			1,499			1,779			1,637
Total nonperforming assets	$	47,124		$	37,958		$	35,255		$	30,409		$	31,403
Total nonperforming loans as a percentage of loans held for investment	0.60		%	0.47		%	0.43		%	0.41		%	0.46		%
Total nonperforming assets as a percentage of total assets	0.77		%	0.62		%	0.59		%	0.57		%	0.61		%
Total accruing loans over 90 days delinquent as a percentage of total assets	0.09		%	0.04		%	0.04		%	0.04		%	0.06		%
Loans restructured as troubled debt restructurings	$	12,206		$	11,460		$	8,714		$	8,953		$	6,794
Troubled debt restructurings as a percentage of loans held for investment	0.28		%	0.26		%	0.20		%	0.24		%	0.19		%

(a) Nonperforming assets excludes purchase credit impaired loans.

(b) Nonperforming assets includes guaranteed repurchased loans previously sold of $2.7 million, $2.6 million, $1.5 million, $3.4 million, and $1.3 million for the quarters ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.

FB Financial Corporation 14

Preliminary Capital Ratios
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets:	December 31, 2019			December 31, 2018
Total Equity	$	762,329		$	671,857
Less:
Goodwill	169,051			137,190
Other intangibles	17,589			11,628
Tangible Common Equity	$	575,689		$	523,039
Total Assets	$	6,124,921		$	5,136,764
Less:
Goodwill	169,051			137,190
Other intangibles	17,589			11,628
Tangible Assets	$	5,938,281		$	4,987,946
Preliminary Total Risk-Weighted Assets	$	5,172,450		$	4,480,921
Total Common Equity to Total Assets	12.4		%	13.1		%
Tangible Common Equity to Tangible Assets*	9.69		%	10.5		%
	December 31, 2019			December 31, 2018
Preliminary Regulatory Capital:
Common Equity Tier 1 Capital	$	572,410		$	524,013
Tier 1 Capital	602,410			554,013
Total Capital	633,549			582,945
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1	11.1		%	11.7		%
Tier 1 Risk-Based	11.6		%	12.4		%
Total Risk-Based	12.2		%	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)	Fourth Quarter					Third Quarter					Second Quarter					First Quarter					Fourth Quarter
Available-for-sale debt securities
U.S. government agency securities	$	—		—	%	$	999		—	%	$	996		—	%	$	993		—	%	$	989		—	%
Mortgage-backed securities - residential	490,676			71	%	485,300			72	%	517,505			77	%	511,716			77	%	508,580			78	%
Municipals, tax exempt	189,235			27	%	173,785			26	%	149,305			22	%	147,640			22	%	138,887			21	%
Treasury securities	7,448			1	%	7,432			1	%	7,409			1	%	7,305			1	%	7,242			1	%
Corporate securities	1,022			—	%	1,015			—	%	—			—	%	—			—	%	—			—	%
Total available-for-sale debt securities	688,381			99	%	668,531			99	%	675,215			100	%	667,654			100	%	655,698			100	%
Equity securities	3,295			1	%	3,250			1	%	3,242			—	%	3,181			—	%	3,107			—	%
Total securities	$	691,676		100	%	$	671,781		100	%	$	678,457		100	%	$	670,835		100	%	$	658,805		100	%
Securities to total assets	11.3		%			11.0		%			11.4		%			12.6		%			12.8		%

FB Financial Corporation 16

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019									2018
Net income, adjusted	Fourth Quarter		Third Quarter		Second Quarter		First Quarter			Fourth Quarter
Pre-tax net income	$	27,290	$	31,684	$	25,002	25,563			$	22,680
Plus merger and mortgage restructuring expenses	686		407		4,612		1,675			401
Pre-tax net income, adjusted	27,976		32,091		29,614		27,238			23,081
Income tax expense, adjusted	5,897		7,824		7,516		6,412			5,745
Net income, adjusted	$	22,079	24,267		$	22,098	20,826			$	17,336
Weighted average common shares outstanding- fully diluted	31,470,565		31,425,573		31,378,018		31,349,198			31,344,949
Diluted earnings per share, adjusted
Diluted earnings per common share	$	0.68	$	0.76	$	0.59	0.62			$	0.54
Plus merger and mortgage restructuring expenses	0.02		0.01		0.15		0.05			0.01
Less tax effect	—		—		0.04		0.01			—
Diluted earnings per share, adjusted	$	0.70	0.77		$	0.70	$	0.66		$	0.55
Pro forma net income, adjusted*	2019		2018		2017		2016			2015
Pre-tax net income	$	109,539	$	105,854	$	73,485	$	62,324		$	50,824
Plus merger, conversion, offering, and mortgage restructuring expenses	7,380		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	116,919		108,119		92,519		69,131			49,729
Pro forma income tax expense, adjusted	27,648		26,034		34,749		25,404			18,425
Pro forma net income, adjusted	$	89,271	$	82,085	$	57,770	$	43,727		$	31,304
Weighted average common shares outstanding-     fully diluted	31,402,897		31,314,981		28,207,602		19,312,174			17,180,000
Pro forma diluted earnings per share, adjusted*
Diluted earning per share	$	2.65	$	2.55	$	1.86	$	2.10		$	2.79
Plus merger, conversion, offering, and mortgage restructuring expenses	0.24		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	0.06		0.01		0.48		0.19			0.91
Pro forma diluted earnings per share, adjusted	$	2.83	$	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)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Total noninterest expense	$	62,686		$	62,935		$	64,119		$	55,101		$	53,736
Less merger and mortgage restructuring expenses	686			407			4,612			1,675			401
Core noninterest expense	$	62,000		$	62,528		$	59,507		$	53,426		$	53,335
Net interest income (tax-equivalent basis)	$	58,212		$	58,769		$	57,488		$	53,461		$	51,799
Total noninterest income	35,234			38,145			32,979			29,039			27,249
Less gain (loss) on sales or write-downs of other real estate owned and other assets	277			(82		)	94			152			33
Less (loss) gain from securities, net	(18		)	(20		)	52			43			—
Core noninterest income	34,975			38,247			32,833			28,844			27,216
Core revenue	$	93,187		$	97,016		$	90,321		$	82,305		$	79,015
Efficiency ratio (GAAP)(a)	67.5		%	65.3		%	71.2		%	67.2		%	68.4		%
Core efficiency ratio (tax-equivalent basis)	66.5		%	64.5		%	65.9		%	64.9		%	67.5		%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
	2019												2018
Banking segment core efficiency ratio (tax equivalent)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Core consolidated noninterest expense	$	62,000		$	62,528		$	59,507		$	53,426		$	53,335
Less Mortgage segment core noninterest expense	14,956			15,686			17,835			17,486			16,262
Core Banking segment noninterest expense	$	47,044		$	46,842		$	41,672		$	35,940		$	37,073
Core revenue	$	93,187		$	97,016		$	90,321		$	82,305		$	79,015
Less Mortgage segment total revenue	16,193			18,455			19,119			16,658			13,979
Core Banking segment total revenue	$	76,994		$	78,561		$	71,202		$	65,647		$	65,036
Banking segment core efficiency ratio (tax-equivalent basis)	61.1		%	59.6		%	58.5		%	54.7		%	57.0		%
Mortgage segment core efficiency ratio (tax equivalent)
Mortgage segment noninterest expense	$	14,956		$	15,798		$	18,664		$	18,540		$	16,262
Less mortgage restructuring expense	—			112			829			1,054			—
Core Mortgage segment noninterest expense	$	14,956		$	15,686		$	17,835		$	17,486		$	16,262
Mortgage segment total revenue	$	16,193		$	18,455		$	19,119		$	16,658		$	13,979
Mortgage segment core efficiency ratio (tax-equivalent basis)	92.4		%	85.0		%	93.3		%	N/A			N/A

FB Financial Corporation 18

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2019												2018
Mortgage contribution, adjusted	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Mortgage segment pre-tax net contribution	$	1,237		$	2,657		$	455		$	(1,882	)	$	(2,283	)
Retail footprint:
Mortgage banking income	9,899			10,693			5,451			4,386			5,041
Mortgage banking expenses	8,126			8,087			4,172			2,831			4,542
Retail footprint pre-tax net contribution	1,773			2,606			1,279			1,555			499
Total mortgage banking pre-tax net (loss)    contribution	$	3,010		$	5,263		$	1,734		$	(327	)	$	(1,784	)
Plus mortgage restructuring expense	—			112			829			1,054			—
Total mortgage banking pre-tax net contribution    (loss), adjusted	$	3,010		$	5,375		$	2,563		$	727		$	(1,784	)
Pre-tax net income	$	27,290		$	31,684		$	25,002		$	25,563		$	22,680
% total mortgage banking pre-tax net contribution	11.0		%	16.6		%	6.94		%	NM			NM
Pre-tax net income, adjusted	$	27,976		$	32,091		$	29,614		$	27,238		$	23,081
% total mortgage banking pre-tax net    contribution, adjusted	10.8		%	16.7		%	8.65		%	2.67		%	NM
	2019												2018
Tangible assets and equity	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Tangible Assets
Total assets	$	6,124,921		$	6,088,895		$	5,940,402		$	5,335,156		$	5,136,764
Less goodwill	169,051			168,486			168,486			137,190			137,190
Less intangibles, net	17,589			18,748			19,945			10,439			11,628
Tangible assets	$	5,938,281		$	5,901,661		$	5,751,971		$	5,187,527		$	4,987,946
Tangible Common Equity
Total shareholders' equity	$	762,329		$	744,835		$	718,759		$	694,577		$	671,857
Less goodwill	169,051			168,486			168,486			137,190			137,190
Less intangibles, net	17,589			18,748			19,945			10,439			11,628
Tangible common equity	$	575,689		$	557,601		$	530,328		$	546,948		$	523,039
Common shares outstanding	31,034,315			30,927,664			30,865,636			30,852,665			30,724,532
Book value per common share	$	24.56		$	24.08		$	23.29		$	22.51		$	21.87
Tangible book value per common share	$	18.55		$	18.03		$	17.18		$	17.73		$	17.02
Total shareholders' equity to total assets	12.4		%	12.2		%	12.1		%	13.0		%	13.1		%
Tangible common equity to tangible assets	9.69		%	9.45		%	9.22		%	10.5		%	10.5		%
	2019												2018
Return on average tangible common equity	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Total average shareholders' equity	$	761,949		$	731,701		$	708,557		$	684,545		$	659,050
Less average goodwill	168,492			168,486			167,781			137,190			137,190
Less average intangibles, net	18,242			19,523			20,214			10,856			12,016
Average tangible common equity	$	575,215		$	543,692		$	520,562		$	536,499		$	509,845
Net income	$	21,572		$	23,966		$	18,688		$	19,588		$	17,040
Return on average tangible common equity	14.9		%	17.5		%	14.4		%	14.8		%	13.3		%

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	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Average tangible common equity	$	575,215		$	543,692		$	520,562		$	536,499		$	509,845
Net income, adjusted	22,079			24,267			22,098			20,826			17,336
Return on average tangible common equity,    adjusted	15.2		%	17.7		%	17.0		%	15.7		%	13.5		%
Pro forma return on average tangible common    equity	2019			2018			2017			2016			2015
Total average shareholders' equity	$	723,494		$	629,922		$	466,219		$	276,587		$	228,844
Less average goodwill	160,587			137,190			84,997			46,867			46,904
Less average intangibles, net	17,236			12,815			8,047			5,353			5,095
Average tangible common equity	$	545,671		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income	$	83,814		$	80,236		$	52,398		$	39,422		$	32,995
Pro forma return on average tangible common    equity	15.4		%	16.7		%	14.0		%	17.6		%	18.7		%
Pro forma return on average tangible common    equity, adjusted	2019			2018			2017			2016			2015
Average tangible common equity	$	545,671		$	479,917		$	373,175		$	224,367		$	176,845
Pro forma net income, adjusted	89,271			82,085			57,770			43,727			31,304
Pro forma return on average tangible common    equity, adjusted	16.4		%	17.1		%	15.5		%	19.5		%	17.7		%
	2019												2018
Return on average assets and equity, adjusted	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Net income	$	21,572		$	23,966		$	18,688		$	19,588		$	17,040
Average assets	6,157,931			5,988,572			5,771,371			5,174,918			5,005,158
Average equity	761,949			731,701			708,557			684,545			659,050
Return on average assets	1.39		%	1.59		%	1.30		%	1.54		%	1.35		%
Return on average equity	11.2		%	13.0		%	10.6		%	11.6		%	10.3		%
Net income, adjusted	$	22,079		$	24,267		$	22,098		$	20,826		$	17,336
Return on average assets, adjusted	1.42		%	1.61		%	1.54		%	1.63		%	1.37		%
Return on average equity, adjusted	11.5		%	13.2		%	12.5		%	12.3		%	10.4		%
Pro forma return on average assets and equity,    adjusted	2019			2018			2017			2016			2015
Pro forma net income	$	83,814		$	80,236		$	52,398		$	39,422		$	32,995
Average assets	5,777,672			4,844,865			3,811,158			3,001,275			2,577,895
Average equity	723,494			629,922			466,219			276,587			228,844
Pro forma return on average assets	1.45		%	1.66		%	1.37		%	1.31		%	1.28		%
Pro forma return on average equity	11.6		%	12.7		%	11.2		%	14.3		%	14.4		%
Pro forma net income, adjusted	$	89,271		$	82,085		$	57,770		$	43,727		$	31,304
Pro forma return on average assets, adjusted	1.55		%	1.69		%	1.52		%	1.46		%	1.21		%
Pro forma return on average equity, adjusted	12.3		%	13.0		%	12.4		%	15.8		%	13.7		%

FB Financial Corporation 20