FB Financial Corporation (NYSE:FBK) Q1 2022 Earnings Conference Call April 19, 2022 1:00 PM ET Company Participants Chris Holmes – President and Chief Executive Officer Robert Hoehn – Director of Corporate Finance Michael Mettee – Chief Financial Officer Robert Wade Peery – Chief Administrative Officer Conference Call Participants Stephen Scouten – Piper Sandler Brett Rabatin – Hovde Group Brandon King – Truist Securities Kevin Fitzsimmons – D.A. Davidson Catherine Mealor – Keefe, Bruyette and Woods Jordan ...

Financial Position - As of December 31, 2021, FB Financial Corporation had total assets of $12.60 billion, loans held for investment of $7.60 billion, total deposits of $10.84 billion, and total common shareholders' equity of $1.43 billion[17]. - As of June 30, 2021, the company holds a 5.5% market share in the Nashville MSA, its largest market, with total deposits of approximately $31.7 billion[27]. - As of December 31, 2021, the company had 1,962 full-time equivalent associates with an average tenure of six years[51]. - The company declared cash dividends of $0.44 per share for the year ended December 31, 2021, an increase from $0.36 per share for the year ended December 31, 2020[178]. - The company repurchased a total of 168,322 shares during the quarter ended December 31, 2021, at an average price of $42.66 per share[179]. Market Presence - The Nashville metropolitan area accounted for 45% of total deposits as of June 30, 2021, with total deposits in Nashville reaching $4.87 billion[18]. - The company operates 82 full-service bank branches and several limited service banking locations across Tennessee, Alabama, Southern Kentucky, and North Georgia[17]. - The company has a deposit market share of 5.5% in Nashville, 4.2% in Knoxville, and 5.7% in Chattanooga as of June 30, 2021[24]. - The company aims to enhance market penetration in metropolitan markets by recruiting top bankers, developing branch presence, and expanding product offerings[27]. - The company faces strong competition in the Nashville MSA, with many competitors offering similar or wider banking services, which may impact loan and deposit growth[159]. Growth Strategy - The company expanded its footprint into Central Alabama in 2021 by hiring additional experienced senior bankers in Birmingham[20]. - The company has completed 13 acquisitions in the past 25 years, targeting small to mid-sized banks with total assets under $5 billion, of which there are approximately 115 in Tennessee and over 475 in contiguous states[27]. - The company intends to pursue acquisitions as part of its growth strategy, which involves operational, strategic, and regulatory risks[154]. - The market for acquisition targets is highly competitive, potentially affecting the company's ability to find suitable candidates[154]. - The company plans to continue leveraging its investments in technology to consolidate operations and improve efficiency while maintaining a decentralized client service model[29]. Financial Performance - Net income for the year ended December 31, 2021 increased to $190.3 million from $63.6 million in 2020, with diluted earnings per share rising to $3.97 from $1.67[204]. - Net interest income for the year ended December 31, 2021, was $347.37 million, an increase from $265.66 million in 2020[193]. - The adjusted efficiency ratio (tax equivalent basis) for the year ended December 31, 2021, was 64.9%, compared to 66.4% in 2020[193]. - Noninterest income decreased by $73.6 million to $228.3 million in 2021, driven by a decline in mortgage banking income[206]. - The company experienced a reversal of $41.0 million in net provisions for credit losses for the year ended December 31, 2021, compared to an expense of $108.0 million in 2020[188]. Risk Management - The company maintains a comprehensive risk management framework to address various risks, including credit, interest rate, and operational risks, supported by significant investments in technology and personnel[30]. - The company employs a consistent credit risk management program, with a Chief Credit Officer overseeing the integrity of the loan portfolio[40]. - The company emphasizes a relationship-oriented lending approach, focusing on understanding clients' financial conditions and economic environments[34]. - The company faces liquidity risk, relying on deposits and effective management of loan repayment schedules to fund operations[130]. - The company is subject to extensive federal and state regulations, which may impact growth and operational costs[135]. Regulatory Environment - The Dodd-Frank Act has increased regulatory compliance costs for the company since its asset size surpassed $10 billion in Q3 2020[65]. - The company is now subject to the Consumer Financial Protection Bureau's regulations, which include broad data collection powers for fair lending practices[67]. - The U.S. Basel III Capital Rules impose minimum capital requirements, including a common equity Tier 1 risk-based capital ratio of 4.5% and a total risk-based capital ratio of 8%[79]. - The ability to pay dividends is restricted by regulatory capital rules, requiring sufficient net income and capital adequacy ratios[78]. - The company must maintain a capital conservation buffer on top of its minimum risk-based capital requirements to avoid restrictions on capital distributions[79]. Technology and Innovation - The company has invested significantly in technology and infrastructure to create a scalable platform for future growth, including participation in the USDF Consortium for blockchain technology[29]. - Significant technology initiatives in 2021 included the introduction of Enterprise Workflow and Process Automation technologies, improving customer experience[59]. - The company is focusing on expanding market share and product offerings through partnerships with financial technology companies[146]. - Technological changes in the financial services industry may create competitive disadvantages due to larger competitors' greater resources[148]. - Innovations such as artificial intelligence and blockchain technology may disrupt traditional banking services, requiring adaptation to maintain competitiveness[148]. Economic Impact - The COVID-19 pandemic has resulted in significant economic disruptions, including elevated unemployment rates and declines in consumer spending, which may continue to affect the company's financial condition[160]. - The company has initiated relief programs for customers, including payment deferral programs and fee waivers, in response to the pandemic[163]. - Changes in interest rates could materially affect net interest income, asset quality, and overall profitability[130]. - Catastrophic events and climate change could negatively impact local economies and the creditworthiness of clients, affecting the company's financial results[149]. - The transition from LIBOR to SOFR as a reference rate is ongoing, with potential impacts on income and expenses due to changes in market risk profiles[130].

FB Financial Corporation (NYSE:FBK) Q4 2021 Earnings Conference Call January 18, 2022 9:00 AM ET Company Participants Chris Holmes – President and Chief Executive Officer Robert Hoehn – Director of Corporate Finance Michael Mettee – Chief Financial Officer Wade Peery – Chief Administrative Officer Conference Call Participants Brett Rabatin – Hovde Group Matt Olney – Stephens Jennifer Demba – Truist Securities Kevin Fitzsimmons – D.A. Davidson Catherine Mealor – Keefe, Bruyette and Woods (KBW) Alex Lau – JPM ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-Q ______________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commiss ...

B Financial Corporation 2021 Third Quarter Earnings Presentation October 19, 2021 Forward–Looking Statements Certain statements contained in this presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the ongoing impact of the COVID-19 global pandemic and new virus variants on FB Financial Corporation's (the "Compa ...

FB Financial Corporation (NYSE:FBK) Q3 2021 Earnings Conference Call October 19, 2021 9:00 AM ET Company Participants Robert Hoehn - Director of Corporate Finance Chris Holmes - President and Chief Executive Officer Michael Mettee - Chief Financial Officer Greg Bowers - Chief Credit Officer Conference Call Participants Brett Rabatin - Hovde Group Stephen Scouten - Piper Sandler Matt Olney - Stephens Jennifer Demba - Truist Securities Kevin Fitzsimmons - D.A. Davidson Catherine Mealor - KBW Alex Lau - JPMorg ...

PART I. FINANCIAL INFORMATION [Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for FB Financial Corporation for the quarterly period ended June 30, 2021, including detailed notes on accounting policies, mergers, and key financial items [Note 1: Basis of Presentation](index=10&type=section&id=Note%20(1)%E2%80%94Basis%20of%20presentation) The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim reporting, highlighting continued uncertainty from the COVID-19 pandemic and using the two-class method for EPS calculation - As of June 30, 2021, the company operated **81 full-service branches** across Tennessee, Alabama, southern Kentucky, and north Georgia, along with a national mortgage business[24](index=24&type=chunk) - The company acknowledges continued uncertainty regarding the long-term economic effects of the COVID-19 pandemic, particularly the Delta variant, which could materially impact business operations and financial results[25](index=25&type=chunk) Earnings Per Share (EPS) Calculation | Period | Basic EPS | Diluted EPS | | :--- | :--- | :--- | | **Three Months Ended June 30, 2021** | $0.91 | $0.90 | | **Three Months Ended June 30, 2020** | $0.71 | $0.70 | | **Six Months Ended June 30, 2021** | $2.03 | $2.00 | | **Six Months Ended June 30, 2020** | $0.75 | $0.74 | [Note 2: Mergers and Acquisitions](index=13&type=section&id=Note%20(2)%E2%80%94Mergers%20and%20acquisitions) This note details two acquisitions: the Franklin Financial Network, Inc. merger for approximately $477.8 million, adding $3.63 billion in assets, and the FNB Financial Corp. acquisition for $50.0 million, adding $258.2 million in assets - Effective August 15, 2020, the Company completed its merger with Franklin Financial Network, Inc., acquiring **$3.63 billion** in assets, **$2.79 billion** in loans, and **$3.12 billion** in deposits for aggregate consideration of approximately **$477.8 million**[31](index=31&type=chunk) - Effective February 14, 2020, the Company acquired FNB Financial Corp. for approximately **$50.0 million**, adding **$258.2 million** in assets and expanding the Company's footprint into Kentucky[34](index=34&type=chunk) - Following the acquisitions, the company recorded provisions for credit losses on non-PCD loans of **$52.8 million** (Franklin) and **$2.9 million** (Farmers National), and an increase in provision for unfunded commitments of **$10.5 million** related to the Franklin acquisition[41](index=41&type=chunk) [Note 3: Investment Securities](index=17&type=section&id=Note%20(3)%E2%80%94Investment%20securities) The company's available-for-sale (AFS) debt securities portfolio increased to $1.40 billion at fair value as of June 30, 2021, primarily composed of residential mortgage-backed and municipal securities, with no allowance for credit losses recorded Available-for-Sale Debt Securities Portfolio (Fair Value) | Security Type | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | Mortgage-backed securities - residential | $1,035.0 million | $773.3 million | | Municipal securities | $332.9 million | $356.3 million | | Other Securities | $36.5 million | $42.7 million | | **Total** | **$1.40 billion** | **$1.17 billion** | - As of June 30, 2021, securities with a carrying amount of **$998.0 million** were pledged to secure a Federal Reserve Bank line of credit, public deposits, and repurchase agreements[46](index=46&type=chunk) - The company evaluated AFS debt securities with unrealized losses and recorded **no allowance for credit loss**, citing that the majority of the portfolio was either government guaranteed, issued by a government-sponsored entity, or highly rated[54](index=54&type=chunk) [Note 4: Loans and Allowance for Credit Losses](index=20&type=section&id=Note%20(4)%E2%80%94Loans%20and%20allowance%20for%20credit%20losses) Gross loans increased slightly to $7.20 billion, while the Allowance for Credit Losses (ACL) decreased to $144.7 million due to improving macroeconomic forecasts, with nonperforming loans at $59.5 million and COVID-19 deferrals significantly reduced Loan Portfolio Composition | Loan Category | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | Commercial real estate: Non-owner occupied | $1,675.2 million | $1,599.0 million | | Commercial and industrial | $1,238.9 million | $1,346.1 million | | Construction | $1,145.2 million | $1,222.2 million | | Residential real estate: 1-to-4 family | $1,126.6 million | $1,089.3 million | | Commercial real estate: Owner occupied | $923.6 million | $924.8 million | | Other | $1,089.8 million | $901.5 million | | **Gross Loans** | **$7.20 billion** | **$7.08 billion** | - The Allowance for Credit Losses (ACL) decreased from **$170.4 million** at Dec 31, 2020, to **$144.7 million** at June 30, 2021, driven by a net provision reversal of **$24.5 million** for the six-month period, resulting from improving macroeconomic variables used in the CECL model[58](index=58&type=chunk)[60](index=60&type=chunk) - As of June 30, 2021, loans remaining in COVID-19 deferral status totaled **$73.9 million** (**1.0%** of total loans), a significant decrease from **$202.5 million** (**2.9%** of total loans) at December 31, 2020[88](index=88&type=chunk)[90](index=90&type=chunk) [Note 12: Segment Reporting](index=54&type=section&id=Note%20(12)%E2%80%94Segment%20reporting) The company operates through Banking and Mortgage segments, with Banking generating $56.2 million in pre-tax income and Mortgage $0.5 million for Q2 2021, following a realignment of mortgage activities Segment Income Before Taxes (in millions) | Segment | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Banking** | $56.2 million | $(3.3) million | $108.3 million | $(10.5) million | | **Mortgage** | $0.5 million | $33.6 million | $16.9 million | $41.6 million | | **Consolidated** | **$56.7 million** | **$30.3 million** | **$125.2 million** | **$31.2 million** | - On March 31, 2021, the company realigned its segments to move all retail mortgage activities into the Mortgage segment, with prior period results revised, reclassifying a net contribution of **$5.4 million** for Q2 2020 and **$8.9 million** for H1 2020 from the Banking to the Mortgage segment[137](index=137&type=chunk) [Note 13: Minimum Capital Requirements](index=59&type=section&id=Note%20(13)%E2%80%94Minimum%20capital%20requirements) Both the holding company and its bank subsidiary met all capital adequacy requirements and were considered well-capitalized as of June 30, 2021, opting into the five-year transition period for CECL regulatory capital effects Regulatory Capital Ratios as of June 30, 2021 | Ratio | FB Financial Corporation (Actual) | FirstBank (Actual) | Well-Capitalized Minimum (Bank) | | :--- | :--- | :--- | :--- | | **Common Equity Tier 1 (CET1)** | 12.4% | 12.2% | 6.5% | | **Tier 1 Capital** | 12.7% | 12.2% | 8.0% | | **Total Capital** | 14.9% | 14.2% | 10.0% | | **Tier 1 Leverage** | 10.1% | 9.7% | 5.0% | - The company adopted the **five-year transition option** to delay the estimated impact of CECL on its regulatory capital[144](index=144&type=chunk) Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | **Total Assets** | $11.92 billion | $11.21 billion | | **Net Loans** | $7.05 billion | $6.91 billion | | **Total Deposits** | $10.20 billion | $9.46 billion | | **Total Liabilities** | $10.55 billion | $9.92 billion | | **Total Shareholders' Equity** | $1.37 billion | $1.29 billion | Consolidated Income Statement Highlights (Unaudited) | Metric | Three Months Ended June 30, 2021 (in millions) | Three Months Ended June 30, 2020 (in millions) | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | $86.6 million | $55.3 million | $169.1 million | $111.6 million | | **Provision for Credit Losses** | $(12.9) million | $24.0 million | $(24.5) million | $52.0 million | | **Noninterest Income** | $49.3 million | $81.5 million | $116.0 million | $124.2 million | | **Noninterest Expense** | $93.0 million | $80.6 million | $187.7 million | $149.1 million | | **Net Income** | $43.3 million | $22.9 million | $96.2 million | $23.6 million | | **Diluted EPS** | $0.90 | $0.70 | $2.00 | $0.74 | [Management's Discussion and Analysis of Financial Condition and Results of Operation](index=54&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operation) Management analyzes the company's Q2 and H1 2021 financial performance, highlighting increased net income from provision reversals, strong net interest income growth, and a decline in mortgage banking income [Overview of Recent Financial Performance](index=72&type=section&id=Overview%20of%20recent%20financial%20performance) Net income significantly increased in Q2 and H1 2021, primarily driven by a reversal of the provision for credit losses due to an improved economic outlook, while noninterest income decreased from lower mortgage banking activity Key Performance Metrics | Metric | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (in millions)** | $43.3 | $22.9 | $96.2 | $23.6 | | **Diluted EPS** | $0.90 | $0.70 | $2.00 | $0.74 | | **ROAA** | 1.46% | 1.30% | 1.66% | 0.70% | | **ROAE** | 13.0% | 11.6% | 14.7% | 6.07% | - The primary driver for the increase in net income was a reversal of provisions for credit losses of **$13.8 million** in Q2 2021, compared to a provision expense of **$25.9 million** in Q2 2020[183](index=183&type=chunk) [Results of Operations Analysis](index=75&type=section&id=Results%20of%20operations) Net interest income grew significantly due to the Franklin merger and lower cost of funds, despite NIM compression to 3.18%, while noninterest income fell due to decreased mortgage banking activity and noninterest expense rose from higher salaries - Tax-equivalent net interest income increased **56%** to **$87.3 million** in Q2 2021, driven by higher loan volumes from the Franklin merger and a lower cost of customer time deposits (**0.63%** in Q2 2021 vs. **1.78%** in Q2 2020)[196](index=196&type=chunk) - Net interest margin (tax-equivalent) decreased by **32 basis points** to **3.18%** in Q2 2021, negatively impacted by approximately **37 basis points** from excess liquidity[183](index=183&type=chunk)[199](index=199&type=chunk) - Mortgage banking income decreased to **$35.5 million** in Q2 2021 from **$72.2 million** in Q2 2020, as interest rate lock volume fell **20.7%** and refinancing activity dropped to **58.2%** of volume from **79.8%** in the prior year[220](index=220&type=chunk)[222](index=222&type=chunk) - Salaries, commissions, and employee benefits expense increased by **$7.1 million** (**12.9%**) in Q2 2021, mainly due to increased headcount from the Franklin acquisition and investment in revenue producers[227](index=227&type=chunk) [Financial Condition Analysis](index=92&type=section&id=Financial%20condition) Total assets grew 6.3% to $11.92 billion, driven by increases in cash and AFS securities, while asset quality improved with nonperforming assets decreasing to $78.2 million, and total deposits grew to $10.20 billion with a shift to lower-cost accounts - Total assets increased by **$711.0 million** to **$11.92 billion** at June 30, 2021, primarily due to a **$399.0 million** increase in cash and cash equivalents and a **$232.0 million** increase in available-for-sale securities[186](index=186&type=chunk)[236](index=236&type=chunk) - Total deposits increased by **$746.0 million** to **$10.20 billion**, reflecting growth in noninterest-bearing and interest-bearing checking accounts, while customer time deposits decreased by **$134.0 million**[278](index=278&type=chunk) - Nonperforming assets decreased to **$78.2 million**, or **0.66%** of total assets, at June 30, 2021, compared to **$84.2 million**, or **0.75%** of total assets, at December 31, 2020[259](index=259&type=chunk)[262](index=262&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=98&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, monitored via NII and EVE simulations, indicating an asset-sensitive balance sheet that benefits from rising rates, with derivatives used for mitigation Interest Rate Sensitivity Analysis (as of June 30, 2021) | Change in Interest Rates (bps) | % Change in Year 1 Net Interest Income | % Change in Economic Value of Equity (EVE) | | :--- | :--- | :--- | | +400 | 41.4% | 13.8% | | +300 | 30.6% | 11.7% | | +200 | 19.8% | 8.86% | | +100 | 9.40% | 4.86% | | -100 | (5.62)% | (6.98)% | | -200 | (7.08)% | (10.6)% | - The company's interest rate risk modeling indicates an **asset-sensitive position** as of June 30, 2021, primarily due to the floating-rate structure of its loan portfolio and a strong core deposit base[309](index=309&type=chunk) [Controls and Procedures](index=100&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2021, the company's disclosure controls and procedures were **effective**[313](index=313&type=chunk) - No changes occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[313](index=313&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=101&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings against it or its subsidiaries - As of the report date, there are **no material pending legal proceedings** against the company or its subsidiaries[317](index=317&type=chunk) [Risk Factors](index=101&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - **No material changes** to the risk factors from the company's 2020 Form 10-K were reported[318](index=318&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=101&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A stock repurchase plan for up to $100 million was approved in February 2021, but no shares were repurchased under this plan during the quarter ended June 30, 2021 - A stock repurchase plan for up to **$100.0 million** was approved in February 2021[319](index=319&type=chunk) - **No shares** of common stock were repurchased by the company during the three months ended June 30, 2021[319](index=319&type=chunk)[320](index=320&type=chunk) [Exhibits](index=102&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including corporate governance documents, a new employment agreement, CEO and CFO certifications, and Inline XBRL documents - Key exhibits filed with the report include the **CEO and CFO certifications** required under Sarbanes-Oxley Sections 302 and 906[322](index=322&type=chunk)

B Financial Corporation 2021 Second Quarter Earnings Presentation July 20, 2021 Forward–Looking Statements Certain statements contained in this presentation that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the projected impact of the COVID-19 global pandemic on our business operations, statements relating to the benefits, ...

Financial Data and Key Metrics Changes - The company reported annualized loan growth of 13.9% excluding PPP loans, with adjusted EPS of $0.88, adjusted return on average assets of 1.43%, and adjusted return on tangible common equity of 15.8% [9][12][24] - Tangible book value per share increased to $20.43, reflecting a 16.4% annualized growth rate [9] Business Line Data and Key Metrics Changes - Loan growth excluding PPP amounted to $240 million, with a significant contribution from multifamily loans and a decrease in loan paydowns [12][53] - The mortgage segment contributed approximately $550,000, with expectations for a contribution of $2 million to $4 million in Q3 [34][68] Market Data and Key Metrics Changes - The company observed strong economic activity across its markets, particularly in Middle Tennessee, Knoxville, North Alabama, and Birmingham, which contributed to robust loan growth [13][19] - The company noted a decline in overall deferrals to $74 million, with net charge-offs at only 2 basis points, indicating improved credit quality [12][32] Company Strategy and Development Direction - The company is focused on organic growth and enhancing operational technology and customer experience to create a high-performing bank in the Southeast [17][19] - The management is open to opportunistic M&A but emphasizes the importance of executing at a high level before pursuing acquisitions [21][62] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic recovery and the performance of the loan portfolio, while monitoring the impact of the Delta variant on business confidence [26][114] - The company anticipates continued loan growth for the remainder of 2021, adjusting guidance to high single-digit growth [15][80] Other Important Information - The company has seen a significant increase in its securities portfolio, with a $179 million increase in Q2, reflecting a conservative approach to duration risk [40] - The management expects further releases in reserves as economic conditions improve, with a focus on maintaining a prudent level of reserves [44][45] Q&A Session Summary Question: What contributed to the impressive loan growth? - Management indicated that loan growth was balanced across various segments, with multifamily loans showing significant growth due to fewer paydowns [52][53] Question: What is the outlook for mortgage contributions? - The guidance for mortgage contributions in Q3 is $2 million to $4 million, not accounting for recent rate changes [68] Question: How does the company view M&A opportunities? - The company maintains a list of potential M&A targets within its footprint, focusing on quality banks that align with its growth strategy [21][62] Question: What are the expectations for capital deployment? - Management is considering share repurchases as capital accumulates, especially given the current valuation [66] Question: How is the company addressing housing supply shortages? - Management believes the housing supply issue is a longer-term challenge, particularly in Nashville, due to strong economic growth and in-migration [106][107]

Financial Performance - Total interest income for Q1 2021 was $94,785,000, an increase of 36% from $69,674,000 in Q1 2020[171] - Net interest income for Q1 2021 reached $82,576,000, up 47% from $56,249,000 in Q1 2020[171] - Net income applicable to FB Financial Corporation for Q1 2021 was $52,874,000, significantly higher than $745,000 in Q1 2020[171] - Return on average assets improved to 1.86% in Q1 2021 from 0.05% in Q1 2020[172] - Net income for the three months ended March 31, 2021, increased to $52.9 million from $0.7 million for the same period in 2020, with diluted earnings per share rising to $1.10 from $0.02[193] Asset and Deposit Growth - Total assets as of March 31, 2021, were $11,935,826,000, a substantial increase from $6,655,687,000 as of March 31, 2020[171] - Customer deposits rose to $10,219,173,000 in Q1 2021, compared to $5,356,569,000 in Q1 2020, marking an increase of 90%[171] - Total assets increased by 6.5% to $11.94 billion as of March 31, 2021, compared to $11.21 billion as of December 31, 2020[199] - Total deposits grew by $0.80 billion to $10.26 billion at March 31, 2021, up from $9.46 billion at December 31, 2020[200] Noninterest Income and Expenses - Total noninterest income increased to $66,730,000 in Q1 2021, compared to $42,700,000 in Q1 2020, reflecting a 56% growth[171] - Noninterest income for Q1 2021 increased by $24.0 million to $66.7 million, primarily driven by a $22.6 million rise in mortgage banking income[197] - Noninterest expense increased to $94.7 million in Q1 2021, compared to $68.6 million in Q1 2020, reflecting higher mortgage commissions and costs from acquisitions[198] - Total noninterest expense increased by $26.1 million to $94.7 million in Q1 2021 from $68.6 million in Q1 2020[240] Credit Quality and Provisions - Provisions for credit losses decreased to $(13,854,000) in Q1 2021 from $29,565,000 in Q1 2020, indicating improved credit quality[171] - The company recorded a reversal in provisions for credit losses amounting to $13.9 million for Q1 2021, compared to a provision of $29.6 million in Q1 2020[194] - The provision for credit losses showed a reversal of $11.6 million in Q1 2021, compared to an expense of $28.0 million in Q1 2020, indicating a significant improvement in credit quality[226] - Total nonperforming assets increased to $91.422 million as of March 31, 2021, compared to $49.266 million as of December 31, 2020, representing an increase of 85.5%[282] Mergers and Acquisitions - The company plans to pursue mergers with Franklin Financial Network, Inc. and FNB Financial Corp., aiming for enhanced operational synergies and market expansion[168] - The company completed the merger with Franklin Financial Network, acquiring total assets of $3.63 billion and loans of $2.79 billion[189] - The merger with FNB Financial Corp. resulted in the acquisition of total assets of $258.2 million and loans of $182.2 million[192] Efficiency and Management - The efficiency ratio improved to 63.4% in Q1 2021, down from 69.3% in Q1 2020, indicating better cost management[172] - The adjusted efficiency ratio (tax-equivalent basis) for Q1 2021 was 63.0%, an improvement from 65.7% in Q1 2020[181] - The company’s strategy includes modifying loans to assist borrowers with deteriorating financial conditions, which may lead to higher nonperforming assets but aims for long-term recoveries[277] Interest Rate and Risk Management - The company monitors the impact of interest rate changes on net interest income and economic value of equity (EVE) using rate shock analysis[343] - A +400 basis point increase in interest rates is projected to result in a 52.1% increase in net interest income for Year 1 and a 61.2% increase for Year 2 as of March 31, 2021[344] - The company maintains an asset-sensitive position due to a floating rate structure in loans and a composition of liabilities primarily consisting of core deposits[346] - The company utilizes derivative financial instruments to mitigate interest rate risk exposure and facilitate customer needs[350] Shareholder Equity and Dividends - Total shareholders' equity increased to $1.33 billion at March 31, 2021, up from $1.29 billion at December 31, 2020, with a book value per share of $28.08[338] - The Company declared and paid shareholder dividends of $0.11 per share, totaling $5.3 million for the three months ended March 31, 2021, compared to $0.09 per share, or $2.9 million, for the same period in 2020[330]