FB Financial Corporation (NYSE:FBK) Q2 2020 Earnings Conference Call July 21, 2020 9:00 AM ET Company Participants Robert Hoehn - Director of Corporate Finance Chris Holmes - President and Chief Executive Officer Michael Mettee - Interim Chief Financial Officer Greg Bowers - Chief Credit Officer Conference Call Participants Stephen Scouten - Piper Sandler Catherine Mealor - KBW Brock Vandervliet - UBS Ammar Samma - Raymond James Operator Good evening and welcome to FB Financial Corporation’s Second Quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | --- | --- | |-------|----------------------------------------------------------------| | | ______________________________________________________________ | | | FORM 10-Q | (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 00 ...

B Financial Corporation First Quarter 2020 Earnings Presentation April 28, 2020 IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORS In connection with the proposed merger with Franklin, FB Financial will file a registration statement on Form S-4 with the SEC. The registration statement will contain the joint proxy statement of Franklin and FB Financial to be sent to the FB Financial and Franklin shareholders seeking their approvals in connection with the merger and the issuance of FB Financial common stock ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-K ______________________________________________________________ (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-37875 ___________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | --- | --- | |-------|----------------------------------------------------------------| | | ______________________________________________________________ | | | FORM 10-Q | (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Numbe ...

Company Operations - As of June 30, 2019, the company operates 65 full-service bank branches across Tennessee, North Alabama, and North Georgia[153]. - The company serves various Metropolitan Statistical Areas (MSAs) including Nashville, Chattanooga, Knoxville, Memphis, Jackson, and Huntsville[153]. - The company is the third largest bank headquartered in Tennessee based on total assets[153]. - The company operates through two segments: Banking and Mortgage, with a focus on aligning the Mortgage segment with its strategic plan[153]. Mortgage Operations - The company announced its intention to exit wholesale mortgage operations, completing the sale of the third-party origination channel on June 7, 2019, and the correspondent channel on August 1, 2019[153]. - The company’s mortgage segment revenue is derived from origination fees and gains on sales in the secondary market of mortgage loans[153]. - The company’s mortgage banking services are supported by a national internet delivery channel and strategically located mortgage banking offices[153]. - Mortgage banking income for the three months ended June 30, 2019, was $24.5 million, down from $28.5 million in the same period in 2018[224]. - Total mortgage banking income for the three months ended June 30, 2019, was $24.5 million, a decrease of 14.1% from $28.5 million in the same period of 2018[226]. - Mortgage banking income for the six months ended June 30, 2019, was $45.5 million, down 17.3% from $55.0 million for the same period in 2018[229]. Financial Performance - Net income for the three months ended June 30, 2019, was $18,688,000, compared to $22,065,000 for the same period in 2018, reflecting a decrease of 15.4%[155]. - Total interest income for the three months ended June 30, 2019, was $71,719,000, an increase from $59,043,000 for the same period in 2018, representing a growth of 21.5%[155]. - Net income for the six months ended June 30, 2019, was $38.3 million, a decrease from $41.8 million in the same period of 2018, representing a decline of 6.8%[172]. - Noninterest income for the three months ended June 30, 2019, was $33.0 million, a decrease of $2.8 million, or 7.8%, compared to $35.8 million for the same period in 2018[224]. - Noninterest income for the six months ended June 30, 2019, was $62.0 million, a decrease of 10.2% from $69.0 million in the same period of 2018[229]. Asset and Deposit Growth - Total assets as of June 30, 2019, reached $5,940,402,000, up from $4,923,249,000 a year earlier, indicating a growth of 20.6%[155]. - Customer deposits increased to $4,812,962,000 as of June 30, 2019, compared to $3,844,009,000 in the previous year, marking a rise of 25.2%[155]. - Total deposits rose by 16.1% to $4.84 billion as of June 30, 2019, compared to $4.17 billion at December 31, 2018, partly due to the acquisition of $588.9 million in deposits from branches[276]. - Noninterest-bearing deposits increased to $1,111.9 million at June 30, 2019, up from $949.1 million at December 31, 2018[276]. - Interest-bearing deposits grew to $3.73 billion as of June 30, 2019, compared to $3.22 billion at December 31, 2018[276]. Loan Portfolio - Total loans amounted to $4,289.5 million, a 17% increase from $3,667.5 million as of December 31, 2018[251]. - Loans held for investment increased by $622.0 million to $4.29 billion at June 30, 2019, compared to $3.67 billion at December 31, 2018, reflecting a growth of 16.9%[177]. - The commercial and industrial loans category had an allowance for loan losses of $4,923 thousand, representing 23% of loans in that category[271]. - The construction loans category had an allowance for loan losses of $9,655 thousand, representing 12% of loans in that category[271]. Interest Income and Expense - Net interest income before provision for loan losses increased to $57.0 million for the three months ended June 30, 2019, up from $51.5 million in the same period in 2018, an increase of approximately 10.7%[166]. - Interest income on loans held for sale decreased by $1.3 million to $3.1 million for the three months ended June 30, 2019, attributed to a decline in volume and yields[196]. - Interest expense rose to $14.7 million for the three months ended June 30, 2019, an increase of $7.2 million compared to $7.5 million in 2018, driven by higher interest on deposits[197]. - The cost of total deposits increased to 1.14% for the three months ended June 30, 2019, compared to 0.62% in the same period of 2018[199]. Efficiency and Ratios - The efficiency ratio for the three months ended June 30, 2019, was 71.2%, compared to 64.6% for the same period in 2018, indicating a decline in operational efficiency[157]. - The return on average tangible common equity (ROATE) for the three months ended June 30, 2019, was 14.4%, down from 19.0% in the same period in 2018[164]. - The net interest margin (NIM) decreased to 4.39% for the three months ended June 30, 2019, down from 4.81% in the same period of 2018, primarily due to increased cost of funds and decreased loan fees[195]. Nonperforming Assets - Nonperforming assets totaled $35.3 million as of June 30, 2019, compared to $31.4 million as of December 31, 2018, representing an increase of 6.1%[262]. - Total nonperforming loans held for investment increased to $18.2 million as of June 30, 2019, from $16.7 million as of December 31, 2018, a rise of 8.7%[264]. - The coverage ratio for loan losses was 165.3% as of June 30, 2019, down from 173.0% as of December 31, 2018[265]. Capital and Liquidity - The Common Equity Tier 1 (CET1) ratio for FB Financial Corporation was 10.4% as of June 30, 2019, exceeding the required minimum of 4.5%[296]. - Total capital to risk-weighted assets for FB Financial Corporation was 11.6% as of June 30, 2019, above the required minimum of 8.0%[296]. - The Company believes its current liquidity position is adequate to meet both short-term and long-term cash requirements[292]. Expenses - Noninterest expense increased to $64.1 million for the three months ended June 30, 2019, compared to $56.4 million in the same period in 2018, an increase of approximately 13.7%[171]. - Salaries, commissions, and employee benefits expense rose by $3.6 million, or 10.3%, to $37.9 million for the three months ended June 30, 2019, representing 59.1% of total noninterest expense[236]. - The efficiency ratio, which measures noninterest expense to the sum of net interest income plus noninterest income, is monitored to assess operational efficiency[235].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-Q ______________________________________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-37875 ______________________________ ...

Financial Position - As of December 31, 2018, total assets were $5.14 billion, loans held for investment were $3.67 billion, total deposits were $4.17 billion, and total shareholders' equity was $671.9 million[13]. - As of December 31, 2018, the company had loans held for investment totaling $3.67 billion, with commercial and industrial loans representing $867.1 million or 24% of the loan portfolio[34]. - The total amount of commercial real estate loans outstanding as of December 31, 2018, was $1.19 billion, accounting for 32% of the loan portfolio[37]. - Residential real estate loans amounted to $821.8 million, or 23% of the loan portfolio, as of December 31, 2018[39]. - The company plans to continue making construction loans at a similar pace, with an outstanding balance of $556.1 million, representing 15% of the loan portfolio as of December 31, 2018[41]. - The company has $556.6 million in assets under management in its trust services as of December 31, 2018[55]. - The company has $148.8 million in goodwill and other identifiable intangible assets, with potential impairment risks if revenue targets are not met[179]. Market Presence and Growth - The Nashville metropolitan area experienced a deposit growth of 182.9% from June 30, 2012, to June 30, 2018, making it the largest market with 27% of total deposits[17]. - The merger with Clayton Bank and Trust and American City Bank was completed on July 31, 2017, with a purchase price of approximately $236.5 million, acquiring loans valued at $1,059.7 million and deposits of $979.5 million[18]. - The acquisition of 11 Tennessee and three Georgia branch locations from Atlantic Capital Bank is expected to add approximately $611.0 million in assets and liabilities[18]. - In Tennessee, FB Financial Corporation ranks 6th among the top 10 banks with total deposits of $4.1 billion and a deposit market share of 2.7%[23]. - The Nashville MSA has become the largest market for the company, achieving approximately 2.0% market share based on deposits as of June 30, 2018[28]. - The company has completed nine acquisitions under current ownership, including the recent acquisition of Atlantic Capital branches, aimed at enhancing market penetration and profitability[29]. Business Strategy - The overall business strategy focuses on profitable growth opportunities in high-growth metropolitan and stable community markets[13]. - The company aims to leverage technology and consolidate operations to improve efficiency and support future growth[31]. - The company intends to pursue acquisitions, but faces risks such as regulatory approvals, integration challenges, and competition from larger financial institutions[155]. - The company is expected to act as a source of financial strength to its bank subsidiaries, which may require additional capital contributions[89]. Risk Management - The company employs a rigorous credit risk management program, with ongoing monitoring of loan portfolio performance and a Chief Credit Officer overseeing the integrity of the portfolio[66]. - The bank's risk management framework includes oversight committees that meet at least quarterly to review lending activities and ensure credit quality standards[56]. - The company has a strong focus on risk management, with policies approved by the board of directors to define operational standards and risk limits[65]. - The company is exposed to credit risk from small-to-medium sized businesses, which may struggle during economic downturns, potentially leading to substantial credit losses[144]. - The company may need to tighten mortgage loan underwriting standards due to federal and state regulations, impacting loan origination capabilities[185]. Regulatory Environment - The company is subject to regulation by the Federal Reserve and the FDIC, with compliance requirements influenced by the Dodd-Frank Act[77][78]. - The company is subject to various regulations that impose minimum capital requirements and limit transactions with affiliates[83]. - The company must maintain a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 Capital to average assets[94]. - The company is prohibited from acquiring control of a Tennessee-based financial institution until the target has been in operation for at least three years[88]. - The Dodd-Frank Act may impose increased capital requirements and regulatory changes that could impact the company's profitability and business practices[181]. Competition and Market Challenges - The company faces increased competition in the Tennessee market, particularly in metropolitan areas, which may impact loan and deposit growth[72]. - The Bank faces strong competition in the Nashville MSA, with many competitors offering similar or wider banking services, which may impact its market share and profitability[133]. - Future growth may be hindered by economic conditions, regulatory considerations, and competition, which could restrict market expansion opportunities[152]. Mortgage Banking and Noninterest Income - The mortgage banking business generated $7.12 billion in interest rate lock commitment volume for the year ended December 31, 2018, with 66% of these commitments being purchase money mortgage loans[47]. - The company has significantly expanded its mortgage business and noninterest income through strategic hiring and new delivery channels, enhancing customer acquisition opportunities[30]. - The company aims to grow its noninterest income streams, including mortgage business and cash management services, as part of its long-term growth strategy[151]. - The company generated $100.7 million in revenue from its mortgage banking business in 2018, which may decline significantly if interest rates continue to rise[164]. Shareholder and Stock Information - The company declared a dividend of $0.08 per share to shareholders of record as of February 1, 2019, payable on February 15, 2019[204]. - The company has a dividend policy that will depend on various factors, including financial condition, operating results, and regulatory restrictions[204]. - The company has approximately 739 stockholders of record as of March 5, 2019, with a significantly greater number of beneficial holders[200]. - The company completed its initial public offering on September 21, 2016, selling 6,764,704 shares at $19.00 per share, raising an aggregate of $128.5 million[208]. Operational Risks - The company is exposed to operational risks, including potential employee fraud and reliance on third-party information, which could lead to financial losses[172]. - The company relies on third-party service providers for mortgage loan servicing, and any failure by these providers could disrupt operations and negatively impact financial results[166]. - The company operates in regions susceptible to weather-related events, which could disrupt operations and negatively impact local economies[173]. Economic Sensitivity - The company's financial performance is vulnerable to economic conditions in Tennessee, which could lead to increased loan delinquencies and reduced demand for products[129]. - Changes in interest rates could adversely affect net interest income, which is crucial for the company's earnings and financial condition[147]. - The company's ability to assess creditworthiness may be impaired by economic conditions, affecting its loan portfolio and financial results[129]. - Approximately 71% of the loan portfolio consisted of loans secured by real estate, which are sensitive to economic conditions and real estate market downturns[138].