FB Financial (FBK) 8-K FB Financial Corporation Reports Second Quarter 2021 Results

Second Quarter 2021

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 earnings, adjusted diluted earnings per share, adjusted and unadjusted pre-tax pre-provision earnings, core revenue, 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 tangible common equity, adjusted pre-tax pre-provision return on average tangible common equity, adjusted return on average assets and common equity, and adjusted pre-tax pre-provision return on average assets and common equity. 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 also includes an adjusted allowance for credit losses, adjusted loans held for investment, and adjusted allowance for credit losses to loans held for investment, which all exclude the impact of PPP loans. The Company refers to these non-GAAP measures as adjusted measures. Also, the Company presents tangible assets, tangible common equity, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity and 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 %)
	2021						2020
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Statement of Income Data
Total interest income	$	96,329		$	94,785		$	98,236		$	81,127		$	65,607
Total interest expense	9,766			12,209			12,992			12,299			10,270
Net interest income	86,563			82,576			85,244			68,828			55,337
Total noninterest income	49,300			66,730			80,638			97,026			81,491
Total noninterest expense	92,960			94,698			109,855			118,092			80,579
Earnings before income taxes and provisions for credit losses	42,903			54,608			56,027			47,762			56,249
Provisions for credit losses	(13,839)			(13,854)			(2,920)			55,401			25,921
Income tax expense (benefit)	13,440			15,588			13,337			(2,040)			7,455
Net income applicable to noncontrolling interest	8			—			8			—			—
Net income (loss) applicable to FB Financial Corporation(d)	$	43,294		$	52,874		$	45,602		$	(5,599)		$	22,873
Net interest income (tax-equivalent basis)	$	87,321		$	83,368		$	86,111		$	69,625		$	55,977
Adjusted net income*	$	42,317		$	53,505		$	54,454		$	58,096		$	24,086
Adjusted pre-tax, pre-provision earnings*	$	41,357		$	55,461		$	67,988		$	70,444		$	57,835
Per Common Share
Diluted net income (loss)(a)	$	0.90		$	1.10		$	0.95		$	(0.14)		$	0.70
Adjusted diluted net income*	0.88			1.12			1.14			1.43			0.74
Book value	28.96			28.08			27.35			26.38			25.08
Tangible book value*	23.43			22.51			21.73			20.87			19.07
Weighted average number of shares outstanding - fully diluted(a)	47,993,773			47,969,106			47,791,659			40,637,745			32,506,417
Period-end number of shares	47,360,950			47,331,680			47,220,743			47,191,677			32,101,108
Selected Balance Sheet Data
Cash and cash equivalents	$	1,717,097		$	1,895,133		$	1,317,898		$	1,062,391		$	717,592
Loans held for investment (HFI)	7,198,954			7,047,342			7,082,959			7,213,538			4,827,023
Allowance for credit losses(b)	(144,663)			(157,954)			(170,389)			(183,973)			(113,129)
Mortgage loans held for sale	697,407			834,779			683,770			610,695			435,479
Commercial loans held for sale	124,122			174,983			215,403			241,256			—
Investment securities, at fair value	1,409,175			1,229,845			1,176,991			1,164,910			751,767
Other real estate owned, net	11,986			11,177			12,111			12,748			15,091
Total assets	11,918,367			11,935,826			11,207,330			11,010,438			7,255,536
Customer deposits	10,163,056			10,219,173			9,396,478			9,001,673			5,937,373
Brokered and internet time deposits	40,900			37,713			61,559			92,074			15,428
Total deposits	10,203,956			10,256,886			9,458,037			9,093,747			5,952,801
Borrowings	183,962			180,179			238,324			438,838			328,662
Total common shareholders' equity	1,371,721			1,329,103			1,291,289			1,244,998			805,216
Selected Ratios
Return on average:
Assets	1.46		%	1.86		%	1.63		%	(0.24)		%	1.30		%
Shareholders' equity	13.0		%	16.5		%	14.4		%	(2.13)		%	11.6		%
Tangible common equity*	16.1		%	20.6		%	18.2		%	(2.72)		%	15.3		%
Average shareholders' equity to average assets	11.3		%	11.3		%	11.3		%	11.4		%	11.2		%
Net interest margin (NIM) (tax-equivalent basis)	3.18		%	3.19		%	3.32		%	3.28		%	3.50		%
Efficiency ratio (GAAP)	68.4		%	63.4		%	66.2		%	71.2		%	58.9		%
Core efficiency ratio (tax-equivalent basis)*	68.9		%	63.0		%	58.5		%	57.4		%	57.5		%
Loans HFI to deposit ratio	70.6		%	68.7		%	74.9		%	79.3		%	81.1		%
Total loans to deposit ratio	78.6		%	78.6		%	84.4		%	88.7		%	88.4		%
Yield on interest-earning assets	3.53		%	3.66		%	3.82		%	3.86		%	4.14		%
Cost of interest-bearing liabilities	0.49		%	0.65		%	0.73		%	0.83		%	0.94		%
Cost of total deposits	0.31		%	0.41		%	0.46		%	0.56		%	0.65		%
Credit Quality Ratios
Allowance for credit losses as a percentage of loans HFI(b)	2.01		%	2.24		%	2.41		%	2.55		%	2.34		%
Adjusted allowance for credit losses as a percentage of loans HFI*(b)	2.03		%	2.29		%	2.48		%	2.66		%	2.51		%
Net charge-offs (recoveries) as a percentage of average loans HFI	0.02		%	0.05		%	0.58		%	(0.01)		%	—		%
Nonperforming loans HFI as a percentage of total loans HFI	0.83		%	0.94		%	0.91		%	0.61		%	0.72		%
Nonperforming assets as a percentage of total assets	0.66		%	0.77		%	0.75		%	0.64		%	0.71		%
Preliminary capital ratios (Consolidated)
Total common shareholders' equity to assets	11.5		%	11.1		%	11.5		%	11.3		%	11.1		%
Tangible common equity to tangible assets*	9.52		%	9.13		%	9.38		%	9.16		%	8.67		%
Tier 1 capital (to average assets)	10.1		%	10.1		%	10.0		%	11.8		%	9.70		%
Tier 1 capital (to risk-weighted assets)(c)	12.7		%	12.3		%	12.0		%	12.1		%	11.9		%
Total capital (to risk-weighted assets)(c)	14.9		%	14.6		%	15.0		%	15.3		%	13.2		%
Common equity Tier 1 (to risk-weighted assets) (CET1)(c)	12.4		%	12.0		%	11.7		%	11.8		%	11.4		%

(a) Diluted earnings per share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred.

(b) Excludes reserve for credit losses on unfunded commitments of $13.2 million, $14.2 million $16.4 million, $16.1 million, and $6.5 million recorded in accrued expenses and other liabilities at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 , and June 30, 2020 , respectively.

(c) We calculate our risk-weighted assets using the standardized method of the Basel III Framework.

(d) Includes dividends declared and paid by the Company's REIT subsidiary to minority interest preferred shareholders in the second quarter of 2021 and fourth quarter of 2020.

*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 %)
													Q2 2021		Q2 2021
													vs.		vs.
	2021				2020						Q1 2021	Q2 2020
	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter				Percent variance		Percent variance
Interest income:
Interest and fees on loans	$	89,861	$	89,412	$	93,246	$	76,504	$	61,092			0.50	%	47.1	%
Interest on securities
Taxable	3,844		2,819		2,306		2,286		2,619				36.4	%	46.8	%
Tax-exempt	1,933		1,956		2,120		1,933		1,590				(1.18)	%	21.6	%
Other	691		598		564		404		306				15.6	%	125.8	%
Total interest income	96,329		94,785		98,236		81,127		65,607				1.63	%	46.8	%
Interest expense:
Deposits	7,919		9,826		10,809		10,573		9,309				(19.4)	%	(14.9)	%
Borrowings	1,847		2,383		2,183		1,726		961				(22.5)	%	92.2	%
Total interest expense	9,766		12,209		12,992		12,299		10,270				(20.0)	%	(4.91)	%
Net interest income	86,563		82,576		85,244		68,828		55,337				4.83	%	56.4	%
Provision for credit losses	(12,885)		(11,632)		(3,231)		45,834		24,039				10.8	%	(153.6)	%
Provision for credit losses on unfunded commitments	(954)		(2,222)		311		9,567		1,882				(57.1)	%	(150.7)	%
Net interest income after provisions for credit    losses	100,402		96,430		88,164		13,427		29,416				4.12	%	241.3	%
Noninterest income:
Mortgage banking income	35,499		55,332		65,729		84,686		72,168				(35.8)	%	(50.8)	%
Service charges on deposit accounts	2,266		2,339		2,577		2,162		1,858				(3.12)	%	22.0	%
ATM and interchange fees	5,381		4,341		4,262		3,913		3,606				24.0	%	49.2	%
Investment services and trust income	2,999		2,008		2,187		1,828		1,368				49.4	%	119.2	%
Gain (loss) from securities, net	144		83		1,013		583		(28)				73.5	%	(614.3)	%
(Loss) gain on sales or write-downs of other real estate      owned	(23)		496		(123)		(1,505)		86				(104.6)	%	(126.7)	%
(Loss) gain from other assets	(4)		(11)		66		226		(54)				(63.6)	%	(92.6)	%
Other income	3,038		2,142		4,927		5,133		2,487				41.8	%	22.2	%
Total noninterest income	49,300		66,730		80,638		97,026		81,491				(26.1)	%	(39.5)	%
Total revenue	135,863		149,306		165,882		165,854		136,828				(9.00)	%	(0.71)	%
Noninterest expenses:
Salaries, commissions and employee benefits	62,367		64,571		67,212		67,676		55,258				(3.41)	%	12.9	%
Occupancy and equipment expense	5,356		5,849		5,813		4,892		4,096				(8.43)	%	30.8	%
Legal and professional fees	2,090		2,434		2,227		1,917		1,952				(14.1)	%	7.07	%
Data processing	2,542		2,319		3,161		2,994		2,782				9.62	%	(8.63)	%
Merger costs	—		—		9,513		20,730		1,586				—	%	(100.0)	%
Amortization of core deposits and other intangibles	1,404		1,440		1,498		1,417		1,205				(2.50)	%	16.5	%
Advertising	3,559		2,253		2,826		2,256		2,591				58.0	%	37.4	%
Other expense	15,642		15,832		17,605		16,210		11,109				(1.20)	%	40.8	%
Total noninterest expense	92,960		94,698		109,855		118,092		80,579				(1.84)	%	15.4	%
Income (loss) before income taxes	56,742		68,462		58,947		(7,639)		30,328				(17.1)	%	87.1	%
Income tax expense (benefit)	13,440		15,588		13,337		(2,040)		7,455				(13.8)	%	80.3	%
Net income (loss) applicable to FB Financial Corporation and noncontrolling interest	43,302		52,874		45,610		(5,599)		22,873				(18.1)	%	89.3	%
Net income applicable to noncontrolling interest	8		—		8		—		—				100.0	%	100.0	%
Net income (loss) applicable to FB Financial Corporation	$	43,294	$	52,874	$	45,602	$	(5,599)	$	22,873			(18.1)	%	89.3	%
Weighted average common shares outstanding:
Basic	47,351,969		47,278,865		47,204,738		40,154,841		32,094,274				0.15	%	47.5	%
Fully diluted	47,993,773		47,969,106		47,791,659		40,637,745		32,506,417				0.05	%	47.6	%
Earnings (loss) per common share:
Basic	$	0.91	$	1.12	$	0.97	$	(0.14)	$	0.71			(18.8)	%	28.2	%
Fully diluted	0.90		1.10		0.95		(0.14)		0.70				(18.2)	%	28.6	%
Fully diluted - adjusted*	0.88		1.12		1.14		1.43		0.74				(21.4)	%	18.9	%

*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 %)
					2021
	For the Six Months Ended				vs.
	June 30,				2020
	2021		2020		Percent variance
Interest income:
Interest and fees on loans	$	179,273	$	124,846	43.6	%
Interest on securities
Taxable	6,663		5,675		17.4	%
Tax-exempt	3,889		3,023		28.6	%
Other	1,289		1,737		(25.8)	%
Total interest income	191,114		135,281		41.3	%
Interest expense:
Deposits	17,745		21,477		(17.4)	%
Borrowings	4,230		2,218		90.7	%
Total interest expense	21,975		23,695		(7.26)	%
Net interest income	169,139		111,586		51.6	%
Provision for credit losses	(24,517)		52,003		(147.1)	%
Provision for credit losses on unfunded commitments	(3,176)		3,483		(191.2)	%
Net interest income after provisions for credit losses	196,832		56,100		250.9	%
Noninterest income:
Mortgage banking income	90,831		104,913		(13.4)	%
Service charges on deposit accounts	4,605		4,421		4.16	%
ATM and interchange fees	9,722		6,740		44.2	%
Investment services and trust income	5,007		3,065		63.4	%
Gain from securities, net	227		35		548.6	%
Gain on sales or write-downs of other real estate owned	473		137		245.3	%
Loss from other assets	(15)		(382)		96.1	%
Other income	5,180		5,262		(1.56)	%
Total noninterest income	116,030		124,191		(6.57)	%
Total revenue	285,169		235,777		20.9	%
Noninterest expenses:
Salaries, commissions and employee benefits	126,938		98,880		28.4	%
Occupancy and equipment expense	11,205		8,274		35.4	%
Legal and professional fees	4,524		3,510		28.9	%
Data processing	4,861		5,235		(7.14)	%
Merger costs	—		4,636		(100.0)	%
Amortization of core deposit and other intangibles	2,844		2,408		18.1	%
Advertising	5,812		4,980		16.7	%
Other expense	31,474		21,215		48.4	%
Total noninterest expense	187,658		149,138		25.8	%
Income before income taxes	125,204		31,153		301.9	%
Income tax expense	29,028		7,535		285.2	%
Net income applicable to noncontrolling interest and FB Financial Corporation	96,176		23,618		307.2	%
Net income applicable to noncontrolling interests	8		—		100.0	%
Net income applicable to FB Financial Corporation	$	96,168	$	23,618	307.2	%
Weighted average common shares outstanding:
Basic	47,312,312		31,676,004		49.4	%
Fully diluted	47,976,533		32,109,194		49.4	%
Earnings per common share:
Basic	$	2.03	$	0.75	170.7	%
Fully diluted	2.00		0.74		171.9	%
Fully diluted - adjusted*	2.00		0.92		117.4	%

*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 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
													Q2 2021		Q2 2021
													vs.		vs.
	2021				2020						Q1 2021	Q2 2020
	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter				Percent variance		Percent variance
ASSETS
Cash and due from banks	$	60,908	$	206,250	$	110,991	$	69,798	$	33,710			(282.6)	%	80.7	%
Federal funds sold and reverse repurchase agreements	59,321		104,153		121,153		118,588		34,638				(172.7)	%	71.3	%
Interest-bearing deposits in financial institutions	1,596,868		1,584,730		1,085,754		874,005		649,244				3.07	%	146.0	%
Cash and cash equivalents	1,717,097		1,895,133		1,317,898		1,062,391		717,592				(37.7)	%	139.3	%
Investments:
Available-for-sale debt securities, at fair value	1,404,372		1,225,178		1,172,400		1,160,521		747,438				58.7	%	87.9	%
Equity securities, at fair value	4,803		4,667		4,591		4,389		4,329				11.7	%	10.9	%
Federal Home Loan Bank stock, at cost	29,411		31,757		31,232		31,232		17,621				(29.6)	%	66.9	%
Mortgage loans held for sale, at fair value	697,407		834,779		683,770		610,695		435,479				(66.0)	%	60.1	%
Commercial loans held for sale, at fair value	124,122		174,983		215,403		241,256		—				(116.6)	%	100.0	%
Loans held for investment	7,198,954		7,047,342		7,082,959		7,213,538		4,827,023				8.63	%	49.1	%
Less: allowance for credit losses	144,663		157,954		170,389		183,973		113,129				(33.8)	%	27.9	%
Net loans	7,054,291		6,889,388		6,912,570		7,029,565		4,713,894				9.60	%	49.6	%
Premises and equipment, net	142,596		143,467		145,115		136,774		100,638				(2.44)	%	41.7	%
Other real estate owned, net	11,986		11,177		12,111		12,748		15,091				29.0	%	(20.6)	%
Operating lease right-of-use assets	45,423		48,453		49,537		52,410		30,447				(25.1)	%	49.2	%
Interest receivable	42,083		44,393		43,603		47,120		26,587				(20.9)	%	58.3	%
Mortgage servicing rights, at fair value	101,615		104,192		79,997		71,535		60,508				(9.92)	%	67.9	%
Goodwill	242,561		242,561		242,561		236,086		175,441				—	%	38.3	%
Core deposit and other intangibles, net	19,592		20,986		22,426		23,924		17,671				(26.6)	%	10.9	%
Other assets	281,008		264,712		274,116		289,792		192,800				24.69	%	45.8	%
Total assets	$	11,918,367	$	11,935,826	$	11,207,330	$	11,010,438	$	7,255,536			(0.59)	%	64.3	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest-bearing	$	2,484,982	$	2,431,077	$	2,274,103	$	2,287,911	$	1,775,323			8.89	%	40.0	%
Interest-bearing checking	3,015,253		3,097,648		2,491,765		2,005,536		1,236,094				(10.7)	%	143.9	%
Money market and savings	3,421,281		3,347,731		3,254,915		3,236,670		1,749,889				8.81	%	95.5	%
Customer time deposits	1,241,540		1,342,717		1,375,695		1,471,556		1,176,067				(30.2)	%	5.57	%
Brokered and internet time deposits	40,900		37,713		61,559		92,074		15,428				33.9	%	165.1	%
Total deposits	10,203,956		10,256,886		9,458,037		9,093,747		5,952,801				(2.07)	%	71.4	%
Borrowings	183,962		180,179		238,324		438,838		328,662				8.42	%	(44.0)	%
Operating lease liabilities	50,396		54,232		55,187		56,705		33,803				(28.4)	%	49.1	%
Accrued expenses and other liabilities	108,239		115,333		164,400		176,057		135,054				(24.7)	%	(19.9)	%
Total liabilities	10,546,553		10,606,630		9,915,948		9,765,347		6,450,320				(2.27)	%	63.5	%
Shareholders' equity:
Common stock, $1 par value	47,361		47,332		47,222		47,192		32,101				0.25	%	47.5	%
Additional paid-in capital	902,782		900,521		898,847		896,158		462,930				1.01	%	95.0	%
Retained earnings	403,173		365,192		317,625		276,361		286,296				41.7	%	40.8	%
Accumulated other comprehensive income, net	18,405		16,058		27,595		25,287		23,889				58.6	%	(23.0)	%
Total common shareholders' equity	1,371,721		1,329,103		1,291,289		1,244,998		805,216				12.9	%	70.4	%
Noncontrolling interest	93		93		93		93		—				—	%	100.0	%
Total equity	1,371,814		$	1,329,196	1,291,382		1,245,091		805,216				12.9	%	70.4	%
Total liabilities and shareholders' equity	$	11,918,367	$	11,935,826	$	11,207,330	$	11,010,438	$	7,255,536			(0.59)	%	64.3	%

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
	June 30, 2021						March 31, 2021
	Average balances		Interest income/ expense		Average yield/ rate		Average balances		Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)(d)	$	7,085,300	$	83,364	4.72	%	$	7,000,416	$	83,067	4.81	%
Mortgage loans held for sale(b)	726,782		4,948		2.73	%	648,054		4,290		2.68	%
Commercial loans held for sale	152,699		1,626		4.27	%	197,820		2,157		4.42	%
Securities:(b)
Taxable	976,170		3,844		1.58	%	830,686		2,819		1.38	%
Tax-exempt(a)	323,902		2,614		3.24	%	334,303		2,646		3.21	%
Total securities(a)	1,300,072		6,458		1.99	%	1,164,989		5,465		1.90	%
Federal funds sold and reverse repurchase agreements	106,257		41		0.15	%	133,813		20		0.06	%
Interest-bearing deposits with other financial institutions	1,614,106		494		0.12	%	1,427,184		421		0.12	%
FHLB stock	31,731		156		1.97	%	31,461		157		2.02	%
Total interest-earning assets(a)	11,016,947		97,087		3.53	%	10,603,737		95,557		3.66	%
Noninterest-earning assets:
Cash and due from banks	134,501						172,756
Allowance for credit losses	(157,990)						(171,380)
Other assets	906,992						903,670
Total noninterest-earning assets	883,503						905,046
Total assets	$	11,900,450					$	11,508,783
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	3,027,435	$	2,689	0.36	%	$	2,746,355	$	3,018	0.45	%
Money market(e)	2,960,264		2,816		0.38	%	2,917,856		3,615		0.50	%
Savings deposits	411,711		57		0.06	%	369,600		53		0.06	%
Customer time deposits(e)	1,291,125		2,016		0.63	%	1,365,570		3,036		0.90	%
Brokered and internet time deposits(e)	39,860		341		3.43	%	49,764		104		0.85	%
Time deposits	1,330,985		2,357		0.71	%	1,415,334		3,140		0.90	%
Total interest-bearing deposits	7,730,395		7,919		0.41	%	7,449,145		9,826		0.53	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	32,543		21		0.26	%	31,342		36		0.47	%
Subordinated debt(f)	149,155		1,819		4.89	%	188,996		2,341		5.02	%
Other borrowings	1,569		7		1.79	%	5,924		6		0.41	%
Total other interest-bearing liabilities	183,267		1,847		4.04	%	226,262		2,383		4.27	%
Total interest-bearing liabilities	7,913,662		9,766		0.49	%	7,675,407		12,209		0.65	%
Noninterest-bearing liabilities:
Demand deposits	2,484,176						2,348,814
Other liabilities	162,581						180,976
Total noninterest-bearing liabilities	2,646,757						2,529,790
Total liabilities	10,560,419						10,205,197
Total common shareholders' equity	1,339,938						1,303,493
Noncontrolling interest	93						93
Total equity	1,340,031						1,303,586
Total liabilities and shareholders' equity	$	11,900,450					$	11,508,783
Net interest income(a)			$	87,321					$	83,368
Interest rate spread(a)					3.04	%					3.01	%
Net interest margin(a)					3.18	%					3.19	%
Cost of total deposits					0.31	%					0.41	%
Average interest-earning assets to average interest-bearing liabilities					139.2	%					138.2	%
Tax-equivalent adjustment			$	758					$	792
Loans HFI yield components:
Contractual interest rate(a)(c)			$	76,127	4.31	%			$	75,828	4.39	%
Origination and other loan fee income(c)			6,928		0.39	%			6,640		0.38	%
Accretion on purchased loans			(226)		(0.01)	%			(58)		—	%
Nonaccrual interest			535		0.03	%			657		0.04	%
Total loans HFI yield			$	83,364	4.72	%			$	83,067	4.81	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.

(c) Includes $290 and $426 of loan contractual interest and $1,098 and $1,598 of loan fees related to PPP loans for the three months ended June 30, 2021 and March 31, 2021, respectively.

(d) Includes $117,397 and $172,136 of average PPP loan balances for the three months ended June 30, 2021 and March 31, 2021, respectively.

(e) Includes $932 and $932 of interest rate premium accretion on money market deposits, $625 and $810 of interest rate premium accretion on customer time deposits and $127 and $153 of interest rate premium accretion on brokered and internet deposits for the three months ended June 30, 2021 and March 31, 2021, respectively.

(f) Includes $114 and $255 of interest rate premium accretion on subordinated debt for the three months ended June 30, 2021 and March 31, 2021, respectively

FB Financial Corporation 8

Average Balance, Average Yield Earned and Average Rate Paid (continued)
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2020						September 30, 2020						June 30, 2020
	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)(d)	$	7,139,870	$	86,398	4.81	%	$	6,062,785	$	71,660	4.70	%	$	4,775,229	$	58,201	4.90	%
Mortgage loans held for sale(b)	621,076		4,138		2.65	%	486,899		3,624		2.96	%	358,108		2,947		3.31	%
Commercial loans held for sale	236,676		2,830		4.76	%	99,745		1,336		5.33	%	—		—		—	%
Securities:(b)
Taxable	744,161		2,306		1.23	%	604,557		2,286		1.50	%	494,987		2,619		2.13	%
Tax-exempt(a)	359,509		2,867		3.17	%	309,352		2,614		3.36	%	236,161		2,174		3.70	%
Total securities(a)	1,103,670		5,173		1.86	%	913,909		4,900		2.13	%	731,148		4,793		2.64	%
Federal funds sold	95,266		30		0.13	%	88,626		19		0.09	%	50,402		10		0.08	%
Interest-bearing deposits with other financial institutions	1,082,004		375		0.14	%	763,251		309		0.16	%	509,283		194		0.15	%
FHLB stock	31,232		159		2.03	%	22,517		76		1.34	%	16,871		102		2.43	%
Total interest-earning assets(a)	10,309,794		99,103		3.82	%	8,437,732		81,924		3.86	%	6,441,041		66,247		4.14	%
Noninterest-earning assets:
Cash and due from banks	73,279						69,788						58,304
Allowance for credit losses	(183,932)						(144,991)						(91,196)
Other assets	912,022						816,759						666,463
Total noninterest-earning assets	801,369						741,556						633,571
Total assets	$	11,111,163					$	9,179,288					$	7,074,612
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	2,178,039	$	2,785	0.51	%	$	1,626,067	$	2,194	0.54	%	$	1,161,593	$	1,717	0.59	%
Money market(e)	2,769,421		3,968		0.57	%	2,179,128		3,589		0.66	%	1,422,344		2,179		0.62	%
Savings deposits	338,260		54		0.06	%	309,689		58		0.07	%	254,357		41		0.06	%
Customer time deposits(e)	1,410,108		3,704		1.04	%	1,334,829		4,817		1.44	%	1,197,960		5,292		1.78	%
Brokered and internet time deposits(e)	87,035		298		1.36	%	60,327		(85)		(0.56)	%	16,844		80		1.91	%
Time deposits	1,497,143		4,002		1.06	%	1,395,156		4,732		1.35	%	1,214,804		5,372		1.78	%
Total interest-bearing deposits	6,782,863		10,809		0.63	%	5,510,040		10,573		0.76	%	4,053,098		9,309		0.92	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	34,986		43		0.49	%	37,309		51		0.54	%	32,451		50		0.62	%
Federal Home Loan Bank advances(g)	102,174		(432)		(1.68)	%	249,457		406		0.65	%	250,000		405		0.65	%
Subordinated debt(f)	189,649		2,433		5.10	%	95,048		1,222		5.11	%	30,930		399		5.19	%
Other borrowings	16,612		139		3.33	%	15,015		47		1.25	%	15,000		107		2.87	%
Total other interest-bearing liabilities	343,421		2,183		2.53	%	396,829		1,726		1.73	%	328,381		961		1.18	%
Total interest-bearing liabilities	7,126,284		12,992		0.73	%	5,906,869		12,299		0.83	%	4,381,479		10,270		0.94	%
Noninterest-bearing liabilities:
Demand deposits	2,513,202						2,050,084						1,728,343
Other liabilities	210,483						177,329						169,085
Total noninterest-bearing liabilities	2,723,685						2,227,413						1,897,428
Total liabilities	9,849,969						8,134,282						6,278,907
Total common shareholders' equity	1,261,101						1,044,913						795,705
Noncontrolling interest	93						93						—
Total equity	1,261,194						1,045,006						795,705
Total liabilities and shareholders' equity	$	11,111,163					$	9,179,288					$	7,074,612
Net interest income(a)			$	86,111					$	69,625					$	55,977
Interest rate spread(a)					3.09	%					3.03	%					3.20	%
Net interest margin(a)					3.32	%					3.28	%					3.50	%
Cost of total deposits					0.46	%					0.56	%					0.65	%
Average interest-earning assets to average interest-bearing liabilities					144.7	%					142.8	%					147.0	%
Tax-equivalent adjustment			$	867					$	797					$	640
Loans HFI yield components:
Contractual interest rate(a)(c)			$	78,873	4.39	%			$	66,441	4.36	%			$	54,233	4.57	%
Origination and other loan fee income(c)			6,537		0.36	%			4,029		0.26	%			2,823		0.24	%
Accretion on purchased loans			708		0.04	%			526		0.04	%			976		0.08	%
Nonaccrual interest			280		0.02	%			664		0.04	%			169		0.01	%
Total loans HFI yield			$	86,398	4.81	%			$	71,660	4.70	%			$	58,201	4.90	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.

(c) Includes $699, $797, and $596 of loan contractual interest and $2,448, $850, and $624 of loan fees related to PPP loans for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

(d) Includes $279,757, $311,025, and $234,304 of average PPP loan balances for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

(e) Includes $932, $0 and $0 of interest rate premium accretion on money market deposits, $1,101, $653, and $228 of interest rate premium accretion on customer time deposits, and $127, $342, and $(10) of interest rate premium accretion on brokered and internet deposits for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

(f) Includes $262, $174, and $0 of interest rate premium accretion on subordinated debt for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively

(g) Includes $545, $115, and $148, and of gain accreted from other comprehensive income with cancelled cash flow hedge for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

FB Financial Corporation 9

Average Balance, Average Yield Earned and Average Rate Paid (continued)
For the Years Ended
(Unaudited)
(In Thousands, Except %)
	Six months ended						Six months ended
	June 30, 2021						June 30, 2020
	Average balances		Interest income/ expense		Average yield/ rate		Average balances		Interest income/ expense		Average yield/ rate
Interest-earning assets:
Loans HFI(a)(d)	$	7,043,092	$	166,431	4.77	%	$	4,631,577	$	120,018	5.21	%
Mortgage loans held for sale(b)	687,635		9,238		2.71	%	286,129		4,937		3.47	%
Commercial loans held for sale	175,135		3,783		4.36	%	—		—		—	%
Securities:(b)
Taxable	903,830		6,663		1.49	%	503,493		5,675		2.27	%
Tax-exempt(a)	329,074		5,260		3.22	%	216,496		4,089		3.80	%
Total securities(a)	1,232,904		11,923		1.95	%	719,989		9,764		2.73	%
Federal funds sold and reverse repurchase agreements	119,959		61		0.10	%	78,785		255		0.65	%
Interest-bearing deposits with other financial institutions	1,521,162		915		0.12	%	398,330		1,276		0.64	%
FHLB stock	31,597		313		2.00	%	16,539		206		2.50	%
Total interest-earning assets(a)	10,811,484		192,664		3.59	%	6,131,349		136,456		4.48	%
Noninterest-earning assets:
Cash and due from banks	153,523						61,303
Allowance for loan losses	(164,648)						(77,128)
Other assets	900,592						622,499
Total noninterest-earning assets	889,467						606,674
Total assets	$	11,700,951					$	6,738,023
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing checking	$	2,887,671	$	5,707	0.40	%	$	1,116,633	$	3,896	0.70	%
Money market(e)	2,939,177		6,431		0.44	%	1,400,394		6,150		0.88	%
Savings deposits	390,772		110		0.06	%	236,475		120		0.10	%
Customer time deposits(e)	1,332,868		5,052		0.76	%	1,200,080		11,135		1.87	%
Brokered and internet time deposits(e)	40,060		445		2.24	%	18,600		176		1.90	%
Time deposits	1,372,928		5,497		0.81	%	1,218,680		11,311		1.87	%
Total interest-bearing deposits	7,590,548		17,745		0.47	%	3,972,182		21,477		1.09	%
Other interest-bearing liabilities:
Securities sold under agreements to repurchase and federal funds purchased	31,946		57		0.36	%	29,641		107		0.73	%
Federal Home Loan Bank advances(g)	—		—		—	%	250,000		1,119		0.90	%
Subordinated debt(f)	168,965		4,160		4.96	%	30,930		820		5.33	%
Other borrowings	3,734		13		0.70	%	11,374		172		3.04	%
Total other interest-bearing liabilities	204,645		4,230		4.17	%	321,945		2,218		1.39	%
Total interest-bearing liabilities	7,795,193		21,975		0.57	%	4,294,127		23,695		1.11	%
Noninterest-bearing liabilities:
Demand deposits	2,416,869						1,520,954
Other liabilities	166,849						140,467
Total noninterest-bearing liabilities	2,583,718						1,661,421
Total liabilities	10,378,911						5,955,548
Total common shareholders' equity	1,321,947						782,475
Noncontrolling interest	93						—
Total equity	1,322,040						782,475
Total liabilities and shareholders' equity	$	11,700,951					$	6,738,023
Net interest income(a)			$	170,689					$	112,761
Interest rate spread(a)					3.02	%					3.37	%
Net interest margin(a)					3.18	%					3.70	%
Cost of total deposits					0.36	%					0.79	%
Average interest-earning assets to average interest-bearing liabilities					138.7	%					142.8	%
Tax equivalent adjustment			$	1,550					$	1,175
Loans HFI yield components:
Contractual interest rate(a)(c)			$	151,955	4.35	%			$	111,615	4.85	%
Origination and other loan fee income(c)			13,568		0.39	%			5,412		0.23	%
Accretion on purchased loans			(284)		(0.01)	%			2,554		0.11	%
Nonaccrual interest			1,192		0.04	%			437		0.02	%
Total loans HFI yield			$	166,431	4.77	%			$	120,018	5.21	%

(a) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

(b) Excludes the average balance for unrealized gains (losses) for mortgage loans held for sale and investments carried at fair value.

(c) Includes $716 and $596 of loan contractual interest and $2,696 and $624 of loan fees related to PPP loans for the six months ended June 30, 2021 and 2020 .

(d) Includes $144,615 and $117,152 of average PPP loan balances during the six months ended June 30, 2021 and 2020.

(e) Includes $1,864 and $0 of interest rate premium accretion on money market deposits, $1,435 and $228 of interest rate mark accretion on customer time deposits and $280 and $(22) of interest rate mark accretion on brokered and internet deposits for the six months ended June 30, 2021 and 2020, respectively.

(f) Includes $369 and $0 interest rate premium accretion on subordinated debt for the six months ended June 30, 2021 and 2020, respectively.

(g) Includes $0 and $295 of gain accretion from other comprehensive income with cancelled cash flow hedge for the six months ended June 30, 2021 and 2020, respectively.

FB Financial Corporation 10

Loans and Deposits by Market
For the Quarters Ended
(Unaudited)
(In Thousands)
	2021				2020
	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Loans by market
Metropolitan	$	5,752,482	$	5,550,927	$	5,580,822	$	5,699,082	$	3,387,279
Community	767,001		835,444		867,575		892,229		875,347
Specialty lending and other	679,471		660,971		634,562		622,227		564,397
Total	$	7,198,954	$	7,047,342	$	7,082,959	$	7,213,538	$	4,827,023
Deposits by market
Metropolitan	$	6,133,823	$	6,389,373	$	5,812,719	$	5,574,001	$	3,651,146
Community	2,246,922		2,192,116		2,001,802		1,928,006		1,915,996
Mortgage and other(a)	1,823,211		1,675,397		1,643,516		1,591,740		385,659
Total	$	10,203,956	$	10,256,886	$	9,458,037	$	9,093,747	$	5,952,801

(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 %)
	2021						2020
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Banking segment(a)
Net interest income	$	86,553		$	82,597		$	85,207		$	68,791		$	55,350
Provisions for credit losses	(13,839)			(13,854)			(2,920)			55,401			25,921
Noninterest income	14,002			11,398			14,909			12,340			9,323
Merger expense	—			—			8,788			20,400			1,586
Other noninterest expense	58,194			55,735			57,458			52,135			40,454
Pre-tax income (loss) after allocations	$	56,200		$	52,114		$	36,790		$	(46,805)		$	(3,288)
Total assets	$	10,908,107		$	10,787,955		$	10,254,324		$	10,143,956		$	6,632,506
Intracompany funding income included in net interest income	6,110			5,400			5,160			3,940			3,335
Core efficiency ratio*	58.6		%	58.6		%	54.0		%	61.7		%	61.9		%
Mortgage segment(a)
Net interest income	$	10		$	(21)		$	37		$	37		$	(13)
Mortgage banking income	35,499			55,332			65,729			84,686			72,168
Other noninterest income	(201)			—			—			—			—
Merger expense	—			—			725			330			—
Other noninterest expense	34,766			38,963			42,884			45,227			38,539
Direct contribution	$	542		$	16,348		$	22,157		$	39,166		$	33,616
Total assets	$	1,010,260		$	1,147,871		$	953,006		$	866,482		$	623,030
Intracompany funding expense included in net interest income	6,110			5,400			5,160			3,940			3,335
Core efficiency ratio*	97.9		%	70.4		%	65.2		%	53.4		%	53.4		%
Interest rate lock commitments volume during the period
Consumer direct	$	914,163		$	949,187		$	1,291,121		$	1,453,238		$	1,480,878
Retail	860,370			939,863			896,357			965,434			758,228
Total	$	1,774,533		$	1,889,050		$	2,187,478		$	2,418,672		$	2,239,106
Interest rate lock commitments pipeline (period end)
Consumer direct	$	446,691		$	643,624		$	833,569		$	912,349		$	848,732
Retail	340,568			415,155			358,052			451,872			357,200
Total	$	787,259		$	1,058,779		$	1,191,621		$	1,364,221		$	1,205,932
Mortgage sales
Consumer direct	$	922,910		$	829,883		$	1,070,909		$	1,034,278		$	962,417
Retail	758,599			742,187			757,308			735,765			632,996
Total	$	1,681,509		$	1,572,070		$	1,828,217		$	1,770,043		$	1,595,413
Gains and fees from origination and sale of mortgage loans held for sale	$	49,435		$	57,893		$	83,971		$	76,506		$	45,515
Net change in fair value of loans held for sale, derivatives, and other	(17,579)			(4,229)			(16,875)			10,084			34,778
Mortgage servicing income	6,788			6,931			6,461			5,536			5,113
Change in fair value of mortgage servicing rights, net of hedging	(3,145)			(5,263)			(7,828)			(7,440)			(13,238)
Total mortgage banking income	$	35,499		$	55,332		$	65,729		$	84,686		$	72,168
Mortgage sale margin(b)	2.94		%	3.68		%	4.59		%	4.32		%	2.85		%

*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) During the first quarter of 2021, the Company re-evaluated its reportable business segments to assign all retail mortgage activities to the Mortgage segment. Previously, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking Segment. Mortgage retail footprint has been assigned to the Mortgage segment for all periods presented.

(b) 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 %)
	2021									2020
	Second Quarter			% of Total		First Quarter			% of Total	Fourth Quarter			% of Total	Third Quarter			% of Total		Second Quarter			% of Total
Loan portfolio
Commercial and Industrial (a)	$	1,238,940		17	%	$	1,292,530		18%	$	1,346,122		19%	$	1,417,671		20	%	$	1,289,646		27	%
Construction	1,145,165			16	%	1,120,585			16%	1,222,220			17%	1,190,878			16	%	553,619			12	%
Residential real estate:
1-to-4 family mortgage	1,126,623			16	%	1,078,618			15%	1,089,270			15%	1,140,611			16	%	741,936			15	%
Residential line of credit	401,343			6	%	394,510			6%	408,211			6%	420,318			6	%	236,974			5	%
Multi-family mortgage	363,600			5	%	271,839			4%	175,676			2%	165,937			2	%	115,149			2	%
Commercial real estate:
Owner occupied	923,605			13	%	936,473			13%	924,841			13%	924,987			13	%	683,245			14	%
Non-owner occupied	1,675,214			23	%	1,652,638			24%	1,598,979			23%	1,644,400			23	%	923,192			19	%
Consumer and other	324,464			4	%	300,149			4%	317,640			5%	308,736			4	%	283,262			6	%
Total loans HFI	$	7,198,954		100	%	$	7,047,342		100%	$	7,082,959		100%	$	7,213,538		100	%	$	4,827,023		100	%
Allowance for credit losses rollforward summary
Allowance for credit losses at the beginning of the period	$	157,954				$	170,389			$	183,973			$	113,129				$	89,141
Charge-offs	(859)					(1,170)				(10,736)				(993)					(1,165)
Recoveries	453					367				383				1,172					1,114
Provision for credit losses	(12,885)					(11,632)				(3,231)				45,834					24,039
Initial allowance on acquired loans with credit deterioration	—					—				—				24,831					—
Allowance for credit losses at the end of the period	$	144,663				$	157,954			$	170,389			$	183,973				$	113,129
Allowance for credit losses as a percentage of total loans HFI	2.01		%			2.24		%		2.41		%		2.55		%			2.34		%
Adjusted allowance for credit losses as a percentage of loans HFI*	2.03		%			2.29		%		2.48		%		2.66		%			2.51		%
Allowance for credit losses on unfunded commitments	$	13,202				$	14,156			$	16,378			$	16,067				$	6,500
Charge-offs
Commercial and Industrial	$	(360)				$	(277)			$	(10,105)			$	(249)				$	(147)
Construction	—					(29)				—				—					(18)
Residential real estate:
1-to-4 family mortgage	(16)					(133)				(30)				(8)					(123)
Residential line of credit	(3)					(15)				(1)				—					(21)
Multi-family mortgage	—					—				—				—					—
Commercial real estate:
Owner occupied	—					—				—				(95)					—
Non-owner occupied	—					—				—				(166)					(545)
Consumer and other	(480)					(716)				(600)				(475)					(311)
Total charge-offs	(859)					(1,170)				(10,736)				(993)					(1,165)
Recoveries
Commercial and Industrial	87					129				60				757					807
Construction	—					—				3				51					151
Residential real estate:
1-to-4 family mortgage	41					24				(44)				116					26
Residential line of credit	9					6				64				22					24
Multi-family mortgage	—					—				—				—					—
Commercial real estate:
Owner occupied	126					13				15				51					3
Non-owner occupied	—					—				—				—					—
Consumer and other	190					195				285				175					103
Total recoveries	453					367				383				1,172					1,114
Net (charge-offs) recoveries	$	(406)				$	(803)			$	(10,353)			$	179				$	(51)
Net charge-offs (recoveries) as a percentage of average total loans	0.02		%			0.05		%		0.58		%		(0.01)		%			—		%
Classified loans	$	150,658				$	156,588			$	132,223			$	126,986				$	88,416

FB Financial Corporation 13

Loan Portfolio and Asset Quality (continued)
For the Quarters Ended
(Unaudited)
(In Thousands, Except %)
	2021						2020
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Nonperforming assets(b)
Past due 90 days or more and accruing interest	$	9,098		$	10,698		$	13,696		$	9,064		$	6,412
Nonaccrual	50,429			55,538			50,760			34,585			28,413
Total nonperforming loans held for investment	59,527			66,236			64,456			43,649			34,825
Commercial loans held for sale	5,844			12,779			6,489			12,812			—
Other real estate owned:
Foreclosed	6,488			4,735			6,408			6,570			7,340
Excess land and facilities	5,498			6,442			5,703			6,178			7,751
Other assets	816			1,230			1,170			1,184			1,306
Total nonperforming assets	$	78,173		$	91,422		$	84,226		$	70,393		$	51,222
Total nonperforming loans as a percentage of loans held for investment	0.83		%	0.94		%	0.91		%	0.61		%	0.72		%
Total nonperforming assets as a percentage of total assets	0.66		%	0.77		%	0.75		%	0.64		%	0.71		%
Total accruing loans over 90 days delinquent as a percentage of total assets	0.08		%	0.09		%	0.12		%	0.08		%	0.09		%
Loans restructured as troubled debt restructurings	$	42,678		$	26,095		$	15,988		$	16,681		$	13,277
Troubled debt restructurings as a percentage of loans held for investment	0.59		%	0.37		%	0.23		%	0.23		%	0.28		%

(a) Includes PPP loan balances of $57,406, $145,697, $212,645, $310,719, and $314,678 as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

(b) Nonperforming assets include guaranteed repurchased loans previously sold of $3.5 million, $4.1 million, $3.7 million, $4.4 million, and $4.2 million, for the quarters ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

*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 14

Preliminary Capital Ratios
(Unaudited)
(In Thousands, Except %)
Computation of Tangible Common Equity to Tangible Assets:	June 30, 2021			December 31, 2020
Total Common Shareholders' Equity	$	1,371,721		$	1,291,289
Less:
Goodwill	242,561			242,561
Other intangibles	19,592			22,426
Tangible Common Equity	$	1,109,568		$	1,026,302
Total Assets	$	11,918,367		$	11,207,330
Less:
Goodwill	242,561			242,561
Other intangibles	19,592			22,426
Tangible Assets	$	11,656,214		$	10,942,343
Preliminary Total Risk-Weighted Assets	$	9,265,237		$	9,073,675
Total Common Equity to Total Assets	11.5		%	11.5		%
Tangible Common Equity to Tangible Assets*	9.52		%	9.38		%
	June 30, 2021			December 31, 2020
Preliminary Regulatory Capital(a):
Common Equity Tier 1 Capital	$	1,147,609		$	1,060,364
Tier 1 Capital	1,177,609			1,090,364
Total Capital	1,383,471			1,358,897
Preliminary Regulatory Capital Ratios:
Common Equity Tier 1	12.4		%	11.7		%
Tier 1 Risk-Based	12.7		%	12.0		%
Total Risk-Based	14.9		%	15.0		%
Tier 1 Leverage	10.1		%	10.0		%

(a) Reflects CECL transition relief of $45,677 and $52,109 add-back for the period ending June 30, 2021 and December 31, 2020, respectively, and $51,547 and $57,979 disallowed from add-back to Tier 2 capital for the period ended June 30, 2021 and December 31, 2020, respectively.

*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 %)
	2021										2020
Securities (at fair value)	Second Quarter					First Quarter					Fourth Quarter				Third Quarter					Second Quarter
Available-for-sale debt securities
U.S. government agency securities	$	8,255		1	%	$	—		—	%	$	2,003		—%	$	1,994		—	%	$	3,024		—	%
Mortgage-backed securities - residential	1,035,003			73	%	838,708			68	%	773,336			66%	738,106			63	%	440,778			59	%
Mortgage-backed securities - commercial	15,161			1	%	20,635			2	%	21,588			2%	21,854			2	%	13,828			2	%
Municipals, tax exempt	332,883			24	%	348,776			28	%	356,329			30%	374,880			32	%	266,052			35	%
Treasury securities	10,534			1	%	14,576			1	%	16,628			1%	21,700			2	%	22,771			3	%
Corporate securities	2,536			—	%	2,483			—	%	2,516			—%	1,987			—	%	985			—	%
Total available-for-sale debt securities	1,404,372			100	%	1,225,178			99	%	1,172,400			99%	1,160,521			99	%	747,438			99	%
Equity securities	4,803			—	%	4,667			1%		4,591			1%	4,389			1	%	4,329			1	%
Total securities	$	1,409,175		100	%	$	1,229,845		100%		$	1,176,991		100%	$	1,164,910		100	%	$	751,767		100	%
Securities to total assets	11.8		%			10.3		%			10.5		%		10.6		%			10.4		%
Unrealized gain on available-for-sale debt securities	$	22,321				$	19,245				$	34,552			$	31,468				$	29,683

FB Financial Corporation 16

Non-GAAP Reconciliation
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2021				2020
Adjusted earnings	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income (loss) before income taxes	$	56,742	$	68,462	$	58,947	$	(7,639)	$	30,328
Plus merger, conversion and offering expenses	605		—		9,513		20,730		1,586
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		—		—		63,251		—
Less other non-operating items(1)	2,151		(853)		(2,448)		(1,952)		—
Adjusted pre-tax earnings	55,196		69,315		70,908		78,294		31,914
Income tax expense, adjusted	12,879		15,810		16,454		20,198		7,828
Adjusted earnings	$	42,317	$	53,505	$	54,454	$	58,096	$	24,086
Weighted average common shares outstanding - fully diluted	47,993,773		47,969,106		47,791,659		40,637,745		32,506,417
Adjusted diluted earnings per share
Diluted earnings (loss) per common share	$	0.90	$	1.10	$	0.95	$	(0.14)	$	0.70
Plus merger, conversion and offering expenses	0.01		—		0.20		0.51		0.05
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		—		—		1.56		—
Less other non-operating items	0.04		(0.02)		(0.05)		(0.05)		—
Less tax effect	(0.01)		—		0.06		0.55		0.01
Adjusted diluted earnings per share	$	0.88	$	1.12	$	1.14	$	1.43	$	0.74
(1) 2Q21 includes a $1,364 gain from change in fair value of commercial loans held for sale acquired from Franklin and a $787 gain from lease terminations; 1Q21 includes a $853 loss from change in fair value of commercial loans held for sale acquired from Franklin; 4Q20 includes $4,533 FHLB prepayment penalty offset by $715 cash life insurance benefit and $1,370 gain from change in fair value of commercial loans held for sale acquired from Franklin; 3Q20 includes $2,305 FHLB prepayment penalty, $1,505 losses on other real estate owned, and $1,858 gain from change in fair value of commercial loans held for sale acquired from Franklin.
	2021				2020
Adjusted pre-tax pre-provision earnings	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income (loss) before income taxes	$	56,742	$	68,462	$	58,947	$	(7,639)	$	30,328
Plus provisions for credit losses	(13,839)		(13,854)		(2,920)		55,401		25,921
Pre-tax pre-provision earnings	42,903		54,608		56,027		47,762		56,249
Plus merger, conversion and offering expenses	605		—		9,513		20,730		1,586
Less other non-operating items	2,151		(853)		(2,448)		(1,952)		—
Adjusted pre-tax pre-provision earnings	$	41,357	$	55,461	$	67,988	$	70,444	$	57,835

FB Financial Corporation 17

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Adjusted earnings	YTD 2021		2020		2019		2018		2017
Income before income taxes	$	125,204	$	82,461	$	109,539	$	105,854	$	73,485
Plus merger, conversion, offering, and mortgage restructuring expenses	605		34,879		7,380		2,265		19,034
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		66,136		—		—		—
Less other non-operating items(1)	1,298		(4,400)		—		—		—
Adjusted pre-tax earnings	124,511		187,876		116,919		108,119		92,519
Adjusted income tax expense	28,690		45,944		27,648		26,034		34,749
Adjusted earnings	$	95,821	$	141,932	$	89,271	$	82,085	$	57,770
Weighted average common shares outstanding - fully diluted	47,976,533		38,099,744		31,402,897		31,314,981		28,207,602
Adjusted diluted earnings per share
Diluted earnings per common share	$	2.00	$	1.67	$	2.65	$	2.55	$	1.86
Plus merger, conversion, offering, and mortgage restructuring expenses	0.01		0.92		0.24		0.07		0.67
Plus initial provision for credit losses on acquired loans and unfunded commitments	—		1.74		—		—		—
Less other non-operating items	0.02		(0.11)		—		—		—
Less tax effect	(0.01)		0.71		0.06		0.01		0.48
Adjusted diluted earnings per share	$	2.00	$	3.73	$	2.83	$	2.61	$	2.05
(1) 2021 includes a $511 gain from change in fair value on commercial loans held for sale acquired from Franklin and a $787 gain from lease terminations; 2020 includes $6,838 FHLB prepayment penalties, $1,505 losses on other real estate owned offset by $715 cash life insurance benefit and $3,228 gain from change in fair value on commercial loans held for sale acquired from Franklin.
Adjusted pre-tax pre-provision earnings	YTD 2021		2020		2019		2018		2017
Income before income taxes	$	125,204	$	82,461	$	109,539	$	105,854	$	73,485
Plus provisions for credit losses	(27,693)		107,967		7,053		5,398		(950)
Pre-tax pre-provision earnings	97,511		190,428		116,592		111,252		72,535
Plus merger, conversion, offering, and mortgage restructuring expenses	605		34,879		7,380		2,265		19,034
Less other non-operating items	1,298		(4,400)		—		—		—
Adjusted pre-tax pre-provision earnings	$	96,818	$	229,707	$	123,972	$	113,517	$	91,569

FB Financial Corporation 18

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2021						2020
Core efficiency ratio (tax-equivalent basis)	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Total noninterest expense	$	92,960		$	94,698		$	109,855		$	118,092		$	80,579
Less merger, conversion and offering expenses	605			—			9,513			20,730			1,586
Less gain on lease terminations	(787)			—			—			—			—
Less FHLB prepayment penalties	—			—			4,533			2,305			—
Core noninterest expense	$	93,142		$	94,698		$	95,809		$	95,057		$	78,993
Net interest income (tax-equivalent basis)	$	87,321		$	83,368		$	86,111		$	69,625		$	55,977
Total noninterest income	49,300			66,730			80,638			97,026			81,491
Less gain (loss) on change in fair value on commercial loans held for sale	1,364			(853)			1,370			1,858			—
Less cash life insurance benefit	—			—			715			—			—
Less (loss) gain on sales or write-downs of other real estate owned and other assets	(27)			485			(57)			(1,279)			32
Less gain (loss) from securities, net	144			83			1,013			583			(28)
Core noninterest income	47,819			67,015			77,597			95,864			81,487
Core revenue	$	135,140		$	150,383		$	163,708		$	165,489		$	137,464
Efficiency ratio (GAAP)(a)	68.4		%	63.4		%	66.2		%	71.2		%	58.9		%
Core efficiency ratio (tax-equivalent basis)	68.9		%	63.0		%	58.5		%	57.4		%	57.5		%
(a) Efficiency ratio (GAAP) is calculated by dividing reported noninterest expense by reported total revenue.
During the first quarter of 2021, the Company re-evaluated its reportable business segments to align all retail mortgage activities with the Mortgage segment. Previously, the Company chose to assign retail mortgage activities within the Banking geographical footprint to the Banking Segment. The results of mortgage retail footprint have been assigned to the Mortgage segment for all periods presented. As such, historical segment efficiency ratios have been recast for consistency with these changes.
	2021						2020
Banking segment core efficiency ratio    (tax equivalent)	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Core noninterest expense	$	93,142		$	94,698		$	95,809		$	95,057		$	78,993
Less Mortgage segment core noninterest expense	34,766			38,963			42,884			45,227			38,539
Core Banking segment noninterest expense	$	58,376		$	55,735		$	52,925		$	49,830		$	40,454
Core revenue	$	135,140		$	150,383		$	163,708		$	165,489		$	137,464
Less Core Mortgage segment total revenue	35,509			55,311			65,766			84,723			72,155
Core Banking segment total revenue	$	99,631		$	95,072		$	97,942		$	80,766		$	65,309
Banking segment core efficiency ratio (tax-equivalent basis)	58.6		%	58.6		%	54.0		%	61.7		%	61.9		%
Mortgage segment core efficiency ratio (tax equivalent)
Mortgage segment noninterest expense	$	34,766		$	38,963		$	43,609		$	45,557		$	38,539
Less mortgage merger expense	—			—			725			330			—
Core Mortgage segment noninterest expense	$	34,766		$	38,963		$	42,884		$	45,227		$	38,539
Mortgage segment total revenue	$	35,308		$	55,311		$	65,766		$	84,723		$	72,155
Less loss on sales or write-downs of other real estate      owned	(201)			—			—			—			—
Core Mortgage segment total revenue	$	35,509		$	55,311		$	65,766		$	84,723		$	72,155
Mortgage segment core efficiency ratio (tax-equivalent basis)	97.9		%	70.4		%	65.2		%	53.4		%	53.4		%

FB Financial Corporation 19

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
	2021						2020
Adjusted Mortgage contribution	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Mortgage pre-tax net contribution	$	542		$	16,348		$	22,157		$	39,166		$	33,616
Plus mortgage merger expense	—			—			725			330			—
Adjusted Mortgage pre-tax net contribution	$	542		$	16,348		$	22,882		$	39,496		$	33,616
Pre-tax pre-provision earnings	$	42,903		$	54,608		$	56,027		$	47,762		$	56,249
% Mortgage pre-tax pre-provision net contribution	1.26		%	29.9		%	39.5		%	82.0		%	59.8		%
Adjusted pre-tax pre-provision earnings	$	41,357		$	55,461		$	67,988		$	70,444		$	57,835
% total adjusted Mortgage pre-tax pre-provision net contribution	1.31		%	29.5		%	33.7		%	56.1		%	58.1		%
	2021						2020
Tangible assets and equity	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Tangible assets
Total assets	$	11,918,367		$	11,935,826		$	11,207,330		$	11,010,438		$	7,255,536
Less goodwill	242,561			242,561			242,561			236,086			175,441
Less intangibles, net	19,592			20,986			22,426			23,924			17,671
Tangible assets	$	11,656,214		$	11,672,279		$	10,942,343		$	10,750,428		$	7,062,424
Tangible common equity
Total common shareholders' equity	$	1,371,721		$	1,329,103		$	1,291,289		$	1,244,998		$	805,216
Less goodwill	242,561			242,561			242,561			236,086			175,441
Less intangibles, net	19,592			20,986			22,426			23,924			17,671
Tangible common equity	$	1,109,568		$	1,065,556		$	1,026,302		$	984,988		$	612,104
Common shares outstanding	47,360,950			47,331,680			47,220,743			47,191,677			32,101,108
Book value per common share	$	28.96		$	28.08		$	27.35		$	26.38		$	25.08
Tangible book value per common share	$	23.43		$	22.51		$	21.73		$	20.87		$	19.07
Total common shareholders' equity to total assets	11.5		%	11.1		%	11.5		%	11.3		%	11.1		%
Tangible common equity to tangible assets	9.52		%	9.13		%	9.38		%	9.16		%	8.67		%
	2021						2020
Return on average tangible common equity	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Average common shareholders' equity	$	1,339,938		$	1,303,493		$	1,261,101		$	1,044,913		$	795,705
Less average goodwill	242,561			242,561			242,983			205,473			175,150
Less average intangibles, net	20,253			21,695			23,178			20,973			18,209
Average tangible common equity	$	1,077,124		$	1,039,237		$	994,940		$	818,467		$	602,346
Net income (loss)	$	43,294		$	52,874		$	45,602		$	(5,599)		$	22,873
Return on average common equity	13.0		%	16.5		%	14.4		%	(2.13		%)	11.6		%
Return on average tangible common equity	16.1		%	20.6		%	18.2		%	(2.72		%)	15.3		%
Adjusted net income	$	42,317		$	53,505		$	54,454		$	58,096		$	24,086
Adjusted return on average tangible common equity	15.8		%	20.9		%	21.8		%	28.2		%	16.1		%
Adjusted pre-tax pre-provision earnings	$	41,357		$	55,461		$	67,988		$	70,444		$	57,835
Adjusted pre-tax pre-provision return on average    tangible common equity	15.4		%	21.6		%	27.2		%	34.2		%	38.6		%

FB Financial Corporation 20

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Return on average tangible common equity	YTD 2021			2020			2019			2018			2017
Average common shareholders' equity	$	1,321,947		$	966,336		$	723,494		$	629,922		$	466,219
Less average goodwill	242,561			199,104			160,587			137,190			84,997
Less average intangibles, net	20,970			22,659			17,236			12,815			8,047
Average tangible common equity	$	1,058,416		$	744,573		$	545,671		$	479,917		$	373,175
Net income	$	96,168		$	63,621		$	83,814		$	80,236		$	52,398
Return on average common equity	14.7		%	6.58		%	11.6		%	12.7		%	11.2		%
Return on average tangible common equity	18.3		%	8.54		%	15.4		%	16.7		%	14.0		%
Adjusted net income	$	95,821		$	141,932		$	89,271		$	82,085		$	57,770
Adjusted return on average tangible common equity	18.3		%	18.3		%	16.4		%	17.1		%	15.5		%
Adjusted pre-tax pre-provision earnings	$	96,818		$	229,707		$	123,972		$	113,517		$	91,569
Adjusted pre-tax pre-provision return on average tangible common equity	18.4		%	30.9		%	22.7		%	23.7		%	24.5		%
	2021						2020
Adjusted return on average assets and equity	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Net income (loss)	$	43,294		$	52,874		$	45,602		$	(5,599)		$	22,873
Average assets	11,900,450			11,508,783			11,111,163			9,179,288			7,074,612
Average common equity	1,339,938			1,303,493			1,261,101			1,044,913			795,705
Return on average assets	1.46		%	1.86		%	1.63		%	(0.24		%)	1.30		%
Return on average common equity	13.0		%	16.5		%	14.4		%	(2.13		%)	11.6		%
Adjusted net income	$	42,317		$	53,505		$	54,454		$	58,096		$	24,086
Adjusted return on average assets	1.43		%	1.89		%	1.95		%	2.52		%	1.37		%
Adjusted return on average common equity	12.7		%	16.6		%	17.2		%	22.1		%	12.2		%
Adjusted pre-tax pre-provision earnings	$	41,357		$	55,461		$	67,988		$	70,444		$	57,835
Adjusted pre-tax pre-provision return on      average assets	1.39		%	1.95		%	2.43		%	3.05		%	3.29		%
Adjusted pre-tax pre-provision return on      average common equity	12.4		%	17.3		%	21.4		%	26.8		%	29.2		%

FB Financial Corporation 21

Non-GAAP Reconciliation (continued)
For the Periods Ended
(Unaudited)
(In Thousands, Except Share Data and %)
Adjusted return on average assets and equity	YTD 2021			2020			2019			2018			2017
Net income	$	96,168		$	63,621		$	83,814		$	80,236		$	52,398
Average assets	11,700,951			8,438,100			5,777,672			4,844,865			3,811,158
Average common equity	1,321,947			966,336			723,494			629,922			466,219
Return on average assets	1.66		%	0.75		%	1.45		%	1.66		%	1.37		%
Return on average common equity	14.7		%	6.58		%	11.6		%	12.7		%	11.2		%
Adjusted net income	$	95,821		$	141,932		$	89,271		$	82,085		$	57,770
Adjusted return on average assets	1.65		%	1.68		%	1.55		%	1.69		%	1.52		%
Adjusted return on average common equity	14.6		%	14.7		%	12.3		%	13.0		%	12.4		%
Adjusted pre-tax pre-provision earnings	$	96,818		$	229,707		$	123,972		$	113,517		$	91,569
Adjusted pre-tax pre-provision return on average assets	1.67		%	2.72		%	2.15		%	2.34		%	2.40		%
Adjusted pre-tax pre-provision return on average common equity	14.8		%	23.8		%	17.1		%	18.0		%	19.6		%
	2021						2020
Adjusted allowance for credit losses to loans held for investment	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Allowance for credit losses	$	144,663		$	157,954		$	170,389		$	183,973		$	113,129
Less allowance for credit losses attributed to PPP loans	9			23			34			49			51
Adjusted allowance for credit losses	$	144,654		$	157,931		$	170,355		$	183,924		$	113,078
Loans held for investment	$	7,198,954		$	7,047,342		$	7,082,959		$	7,213,538		$	4,827,023
Less PPP loans	57,406			145,697			212,645			310,719			314,678
Adjusted loans held for investment	$	7,141,548		$	6,901,645		$	6,870,314		$	6,902,819		$	4,512,345
Allowance for credit losses to loans held for investment	2.01		%	2.24		%	2.41		%	2.55		%	2.34		%
Adjusted allowance for credit losses to loans held for investment	2.03		%	2.29		%	2.48		%	2.66		%	2.51		%

FB Financial Corporation 22