FB Financial Corporation Reports Strong 2017 Second Quarter Results

Annualized loan growth of 14.8% and increased mortgage revenues drive solid earnings

NASHVILLE, Tenn.–(BUSINESS WIRE)– FB Financial Corporation (“FB Financial”) (NYSE: FBK), parent company of FirstBank, reported its results today for the second quarter of 2017.

President and CEO Christopher T. Holmes stated, “Our second quarter earnings were driven by outstanding annualized loan growth of 14.8% for the quarter and the healthy seasonal contribution from our mortgage operations. Along with the excellent growth, we continue to have solid asset quality and net interest margin results were at the top end of our expectations. Our team continues to execute our strategy of growing and serving our customer relationships while delivering shareholder value.”

For the quarter ended June 30, 2017, the Company reported net income of $11.2 million, or $0.43 per diluted common share, compared to $15.8 million, or $0.92 per diluted common share, for the second quarter of 2016 (equivalent to $10.6 million, or $0.62 per diluted common share, on a pro forma C-Corporation tax basis). Diluted earnings per share on a year over year basis declined primarily due to the increase in weighted average diluted shares from 17,180,000 in the second quarter of 2016 to 26,301,458 this quarter related to shares issued in the initial public offering, the recent private placement and related stock grants.

Adjusting net income for pre-tax, non-core net expenses outlined below totaling $2.8 million, or $1.7 million after tax, core net income was $12.9 million, or $0.49 per diluted common share, for the second quarter of 2017, compared to pro forma C-Corporation basis core net income of $13.2 million, or $0.77 per diluted common share for the second quarter of 2016.

Second Quarter Key Highlights

• Loans held for investment (HFI) grew to $1.97 billion, up 14.8% on a linked-quarter annualized basis, and up 12.6% over June 30, 2016
• Total deposits grew to $2.73 billion, up 3.9% on a linked-quarter annualized basis, and up 8.5% over June 30, 2016
• Net interest margin (NIM) (tax-equivalent basis) was 4.19% in the second quarter of 2017, from 4.28% in the first quarter of 2017; when excluding loan accretion, NIM was 4.08% in the second quarter of 2017 compared to 4.12% in the first quarter of 2017
• Consolidated efficiency ratio and core efficiency ratio of 74.4% and 70.2%, respectively, in the second quarter of 2017, driven by Banking Segment core efficiency ratio of 60.4%
• Received regulatory approvals for the pending acquisition of Clayton Bank and Trust and American City Bank from Clayton HC, Inc. (the “Clayton Banks”) which is currently expected to close at the end of July
• Raised $152.7 million in net proceeds from the sale of 4.8 million shares of common stock; increasing weighted average diluted shares to 26.3 million from 24.6 million on a linked-quarter basis

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