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8-K - 8-K - FCB FINANCIAL HOLDINGS, INC.d808515d8k.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Reports Third Quarter 2014 Financial Results

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today announced financial results for the third quarter of 2014. For the quarter ended September 30, 2014, after deducting previously disclosed one-time charges of $20.1 million in conjunction with the Company’s initial public offering (“IPO”), the Company reported a net loss of $3.4 million, or $0.09 per diluted share.

Core net income for the third quarter of 2014 was $9.8 million, or $0.25 per diluted share. Core net income rose 184% year over year and 33% sequentially. This resulted in a core ROA of 68 basis points.

 

    Net interest income of $45.9 million, up 55% year over year;

 

    Total loan portfolio grew sequentially at an annualized rate of 36%;

 

    New loan fundings of $455 million during the quarter;

 

    Core efficiency ratio declined to 61.5%, down from 65.6% in the second quarter of 2014;

 

    Core ROA increased to 68 basis points, up from 55 basis points in the second quarter of 2014;

 

    On August 6, 2014, the Company closed its IPO of 8,240,000 shares of common stock at $22.00 per share. Of the 8,240,000 shares sold, 5,274,045 shares were sold by the Company, including 720,000 shares sold pursuant to the over-allotment option, and 2,965,955 shares were sold by certain selling stockholders; and

 

    In conjunction with the IPO, the company recorded $19.3 million of stock option and warrant expense that resulted in an offsetting increase in paid-in capital and thus did not affect the Company’s capital position.

Core adjustments for the third quarter of 2014 included $20.1 million of one-time charges in conjunction with the IPO, $0.2 million of severance expense and $2.8 million of gain on investment securities. The $20.1 million consists of $19.3 million in stock option and warrant expense and $0.8 million of FDIC equity appreciation agreements (“EAA”) expense. The $19.3 million of stock option and warrant expense resulted in an offsetting increase in paid-in capital and thus did not affect the Company’s capital position. The core adjustments for the quarter reduced net income by $13.2 million as the warrant and incentive stock option expenses were not tax deductible. The company views non-recurring items, including but not limited to merger related and restructuring charges, gain/(loss) on investment securities and their corresponding tax effect, as core adjustments to net income. The reconciliation of non-GAAP measures (including core net income, core efficiency ratio, core ROA, tangible book value and tangible book value per share), which the Company believes facilitate the assessment of its banking operations and peer comparability, are included in tabular form at the end of this release.


Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “We are pleased by our third quarter operating results, especially the continued robust, high quality organic growth in our loan portfolio and the ongoing transformation of our deposit base. This continued momentum coupled with the completion of our initial public offering positions us well to become Florida’s leading commercial bank in the communities we serve.”

Loan Portfolio and Composition

The total loan portfolio, gross of the allowance for loan losses, grew by $296.2 million to $3.6 billion at September 30, 2014, an increase of 9% from $3.3 billion as of June 30, 2014 and 92% from $1.9 billion as of September 30, 2013.

Our new loan portfolio totaled $2.7 billion as of September 30, 2014, an increase of 16% from $2.3 billion as of June 30, 2014 and 101% from $1.3 billion as of September 30, 2013. Our loan growth during the quarter was a result of $455 million of new loan fundings, consisting of $301 million of organic production and $154 million of purchased residential mortgages. As of September 30, 2014 new loans made up 75% of our total loan portfolio as compared to 71% and 72% as of June 30, 2014 and September 30, 2013, respectively.

Our acquired loan portfolio totaled $873.8 million as of September 30, 2014, a decrease of 9% from $957.3 million as of June 30, 2014 and an increase of 69% from $516.0 million as of September 30, 2013. The decrease in the current quarter was driven by resolutions totaling $49.9 million as well as scheduled loan amortization while the increase from September 30, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of September 30, 2014, acquired loans made up 25% of our total loan portfolio as compared to 29% and 28% as of June 30, 2014 and September 30, 2013, respectively.

Asset Quality

The provision for loan losses of $2.8 million recorded for the third quarter of 2014 includes a $1.7 million provision for new loans and a $1.1 million provision for the acquired loan portfolio. There were no new loan portfolio charge-offs in the third quarter of 2014. The provision for new loans served to increase the related allowance to $14.2 million, or 0.53% of the $2.7 billion in new loans outstanding. The new loan portfolio had no non-performing loans as of September 30, 2014.

Deposits and Borrowings

Deposits totaled $3.99 billion as of September 30, 2014, an increase of 1% from $3.96 billion as of June 30, 2014 and 56% from $2.55 billion as of September 30, 2013. During the third quarter of 2014, non-interest bearing deposits increased by $90.1 million, or 21%, and overall transaction accounts increased by $221.1 million, or 9%. This increase was offset by a $188.0 million reduction in high priced time deposits. Transaction accounts represent 69% of total deposits as of September 30, 2014 as compared to 64% and 54% as of June 30, 2014 and September 30, 2013, respectively. The cost of deposits remained flat at 62 basis points from the second quarter of 2014 and declined 14 basis points from the third quarter of 2013. Continued mix shift to transaction accounts drove the improvement year over year. Contractual cost of deposits, excluding time deposit premium amortization in conjunction with the GFB acquisition, declined to 62 basis points in the third quarter of 2014 from 66 basis points and 75 basis points in the second quarter of 2014 and the third quarter of 2013, respectively.


Net Interest Income and Net Interest Margin

Net interest income totaled $45.9 million in the third quarter of 2014, an increase of 12% from $41.2 million in the second quarter of 2014 and 55% from $29.6 million in the third quarter of 2013. Interest income increased to $53.7 million for the third quarter of 2014, an increase of 11% from $48.5 million in the second quarter of 2014 and 51% from $35.5 million in the third quarter of 2013. Interest income from new loans increased by $3.4 million, or 18%, from the second quarter of 2014 due to continued growth in the new loan portfolio. Additionally, interest income from acquired loans increased by $0.9 million from the second quarter of 2014 as increased yields due to better than expected performance offset average balance reductions attributable to loan resolution, prepayment and amortization. Interest expense increased to $7.8 million for the third quarter of 2014 from $7.3 million for the second quarter of 2014 and $5.9 million for the third quarter of 2013. The increase in interest expense was driven by growth of $270.1 million in average interest bearing liabilities from June 30, 2014 and $1.9 billion from September 30, 2013.

The net interest margin for the third quarter of 2014 was 3.49%, an increase of 10 basis points sequentially and a decline of 5 basis points year over year. The increase over the second quarter reflects new loan activity and better than expected performance leading to higher yields on the acquired loan portfolio.

Non-Interest Income and Non-Interest Expense

Non-interest income totaled $2.4 million in the third quarter of 2014, a decrease of $4.3 million from the second quarter of 2014 and an increase of $1.3 million from the third quarter of 2013. The decline from the second quarter of 2014 is primarily driven by fluctuations in gain on investment securities and increased indemnification asset amortization due to better than expected performance on the acquired loan portfolio, together accounting for $3.1 million of the change from prior quarter. Non-interest income during the third quarter of 2014 includes gain on investment securities, loan fees and indemnification asset amortization of $2.8 million, $1.2 million and ($7.3) million, respectively.

Non-interest expense totaled $49.0 million for the third quarter of 2014, an increase of $18.2 million from the second quarter of 2014 and an increase of $24.7 million from the third quarter of 2013. The increase from prior quarters was driven by non-core expenses of $20.3 million for the third quarter of 2014 including $19.3 million in stock option and warrant expense and $0.8 million of EAA expense recognized in conjunction with the Company’s IPO and $0.2 million in severance expense.


Financial Position

Capital ratios continue to be strong and well in excess of regulatory requirements. Our Tier 1 leverage and total risk-based capital ratios were 13.1% and 17.7% for the third quarter of 2014 respectively, compared to 12.0% and 16.5% for the second quarter of 2014, respectively. Stockholders’ equity totaled $835.7 million as of September 30, 2014, an increase of 13% from $739.4 million as of June 30, 2014 primarily driven by proceeds from the Company’s IPO offset by a decrease in other comprehensive income. Tangible book value per common share is $18.03 as of September 30, 2014.

Conference Call

The Company will host a conference call today, Thursday, October 23, 2014 at 5:00 p.m. Eastern Time. Presentation materials related to the conference call are available on the Company’s website, www.floridacommunitybank.com, by navigating to Investor Relations.

Participants can register for this conference call at www.floridacommunitybank.com by navigating to Investor Relations or directly at http://dpregister.com/10052807. Registered participants will receive dial in information upon registration. Please dial in 10 minutes prior to the beginning of the call.

If you are unable to register for the conference call, you can access the conference call by dialing (888)-317-6016 and asking for the FCB call.

A telephonic replay of the conference call will be available through November 7, 2014, by dialing (877) 344-7529 and entering pass code 10052807.

The live broadcast of the conference call will also be available online at the Company’s website by following the link to Investor Relations. An on-line replay of the call will be available at the Company’s website for 90 days.

Forward-Looking Statements

This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our recent Registration Statement on Form S-1. Any forward-looking


statement speaks only as of the date on which it is made, and FCB Financial Holdings, Inc. undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

Use of Non-GAAP Financial Measures

Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP financial measures used in this release. A reconciliation to what we believe to be the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total net interest income, total non-interest income and total non-interest expense in the case of core efficiency ratio, and total shareholders’ equity in the case of tangible book value and tangible book value per share - appears in tabular form at the end of this release. The Company believes each of core net income, core efficiency ratio, and core ROA is useful for both investors and management to understand the effects of certain non-interest items and provides additional perspective on the Company’s performance over time and in comparison to the Company’s competitors. Neither core net income nor core ROA should be viewed as a substitute for net income, nor should core efficiency ratio be viewed as a substitute for total net interest income, total non-interest income and total non-interest expense. The Company believes that tangible book value and tangible book value per share are useful for both investors and management, among other things, as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders’ equity.

These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial results and analyses of results reported under GAAP, and should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

About FCB Financial Holdings, Inc.

FCB Financial Holdings, Inc. is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida. Florida Community Bank offers a comprehensive range of traditional banking products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities in its market areas. The Bank targets commercial customers engaged in a wide variety of industries including healthcare and professional services, retail and wholesale trade, tourism, agricultural services, manufacturing, distribution and distribution-related industries, technology, automotive, aviation, food products, building materials, residential housing and commercial real estate.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements Of Income

(Unaudited)

 

     Three Months Ended  
     September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
    September 30,
2013
 
     (Dollars in thousands, except share and per share data)  

Interest income:

          

Interest and fees on loans

   $ 42,085      $ 37,833      $ 34,852      $ 30,474      $ 26,232   

Interest and dividends on investment securities

     11,530        10,566        9,998        8,609        9,184   

Other interest income

     37        53        68        49        104   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     53,652        48,452        44,918        39,132        35,520   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense:

          

Interest on deposits

     6,124        5,833        5,309        4,695        4,886   

Interest on borrowings

     1,633        1,466        1,264        1,256        1,051   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

     7,757        7,299        6,573        5,951        5,937   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     45,895        41,153        38,345        33,181        29,583   

Provision for loan losses

     2,805        3,236        1,090        1,976        (631
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     43,090        37,917        37,255        31,205        30,214   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest income:

          

Service charges and fees

     738        707        738        693        610   

Loan and other fees

     1,238        2,569        716        1,560        1,356   

Bank-owned life insurance income

     1,151        1,038        818        257        —     

FDIC loss share indemnification loss

     (5,862     (5,247     (4,992     (5,005     (5,010

Income from resolution of acquired assets

     1,109        1,692        1,037        1,292        1,268   

Gain/(loss) on sales of other real estate owned

     (128     (359     431        194        73   

Gain on investment securities

     2,785        4,448        2,495        3,480        2,106   

Other non-interest income

     1,319        1,842        1,305        1,124        600   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest income

     2,350        6,690        2,548        3,595        1,003   

Non-interest expense:

          

Salaries and employee benefits

     28,525        13,411        16,420        12,932        10,625   

Occupancy and equipment expenses

     3,606        3,777        3,433        2,448        2,412   

Other real estate and acquired assets resolution related expenses

     3,203        3,338        3,761        2,849        4,524   

Professional services

     1,203        1,352        1,832        1,621        1,278   

Data processing and network

     2,538        2,357        3,210        1,897        1,944   

Regulatory assessments and insurance

     2,466        1,920        1,774        1,445        1,403   

Amortization of intangibles

     426        443        416        367        367   

Other operating expenses

     6,992        4,146        3,620        2,507        1,707   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest expense

     48,959        30,744        34,466        26,066        24,260   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax provision expense

     (3,519     13,863        5,337        8,734        6,957   

Income tax provision expense (benefit)

     (97     4,697        1,809        2,809        2,486   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (3,422   $ 9,166      $ 3,528      $ 5,925      $ 4,471   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

          

Basic

   $ (0.09   $ 0.26      $ 0.10      $ 0.16      $ 0.12   

Diluted

   $ (0.09   $ 0.26      $ 0.10      $ 0.16      $ 0.12   

Weighted average shares outstanding:

          

Basic

     38,952,127        35,892,154        35,892,154        36,756,073        37,011,598   

Diluted

     38,952,127        35,896,207        35,896,445        36,760,364        37,019,163   


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

     September 30,
2014
    June 30,
2014
    December 31,
2013
 
     (Dollars in thousands, except share and per share data)  

Assets:

      

Cash and due from banks

   $ 28,288      $ 29,976      $ 28,819   

Interest-earning deposits in other banks

     112,342        100,634        210,398   

Investment securities:

      

Held to maturity securities

     —          —          365   

Available for sale securities, at fair value

     1,771,321        1,724,702        1,145,771   

Federal Home Loan Bank and other bank stock, at cost

     71,217        56,328        36,187   
  

 

 

   

 

 

   

 

 

 

Total investment securities

     1,842,538        1,781,030        1,182,323   
  

 

 

   

 

 

   

 

 

 

Loans held for sale

     108        1,492        —     

Loans:

      

New loans

     2,686,043        2,306,337        1,770,711   

Acquired loans

     873,761        957,315        488,073   

Allowance for loan losses

     (20,440     (17,884     (14,733
  

 

 

   

 

 

   

 

 

 

Loans, net

     3,539,364        3,245,768        2,244,051   

FDIC Loss share indemnification asset

     69,920        74,853        87,229   

Due from Federal Deposit Insurance Corporation (“FDIC”)

     104        969        3,659   

Premises and equipment, net

     42,226        42,122        40,992   

Other real estate owned

     78,512        80,988        34,682   

Goodwill and other intangible assets

     89,040        89,466        39,369   

Deferred tax assets, net

     41,257        35,439        5,828   

Bank owned life insurance

     138,264        117,113        75,257   

Other assets

     72,981        41,858        20,763   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 6,054,944      $ 5,641,708      $ 3,973,370   
  

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

      

Deposits:

      

Transaction accounts:

      

Non-interest bearing

   $ 525,152      $ 435,055      $ 291,658   

Interest bearing

     2,221,250        2,090,290        1,336,679   
  

 

 

   

 

 

   

 

 

 

Total transaction accounts

     2,746,402        2,525,345        1,628,337   

Time deposits

     1,244,958        1,432,921        1,165,196   
  

 

 

   

 

 

   

 

 

 

Total deposits

     3,991,360        3,958,266        2,793,533   

Total borrowings

     1,164,404        855,300        435,866   

Investment securities purchased not yet settled

     6,283        41,601        —     

Other liabilities

     57,170        47,093        27,857   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     5,219,217        4,902,260        3,257,256   
  

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

      

Class A common stock

     36        29        29   

Class B common stock

     7        8        8   

Additional paid-in capital

     833,478        724,519        723,631   

Retained earnings

     22,044        25,466        12,772   

Accumulated other comprehensive income (loss)

     (1,087     8,177        (1,575

Treasury stock, at cost

     (18,751     (18,751     (18,751
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     835,727        739,448        716,114   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 6,054,944      $ 5,641,708      $ 3,973,370   
  

 

 

   

 

 

   

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

     Three Months Ended  
     September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
    September 30,
2013
 

Performance Ratios

          

Interest rate spread

     3.36     3.26     3.45     3.55     3.31

Net interest margin

     3.49     3.39     3.62     3.76     3.54

Return on average assets

     -0.24     0.69     0.30     0.62     0.49

Return on average equity

     -1.70     5.02     1.98     3.21     2.43

Efficiency ratio (company level)

     101.48     64.26     84.28     70.88     79.31

Average interest-earning assets to average interest bearing liabilities

     118.11     117.15     118.86     128.09     130.25

Loans receivable to deposits

     89.19     82.45     78.78     80.86     72.59

Yield on interest-earning assets

     4.05     3.96     4.19     4.41     4.23

Cost of interest-bearing liabilities

     0.69     0.70     0.74     0.86     0.92

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     0.62     1.07     0.90     1.51     1.65

Nonperforming assets to total assets

     1.66     2.06     2.18     1.73     2.12

Covered loans to total gross loans

     8.05     10.00     11.47     15.90     20.56

ALL to nonperforming assets

     20.35     15.42     13.76     21.40     16.94

ALL to total gross loans

     0.57     0.55     0.53     0.65     0.71

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.00     0.01     0.00     0.06     0.00

Covered new loans to total gross new loans

     0.00     0.00     0.00     0.00     0.00

New loan ALL to total gross new loans

     0.53     0.54     0.49     0.47     0.43

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     2.51     3.63     2.62     6.78     5.93

Covered acquired loans to total gross acquired loans

     32.78     34.11     33.51     73.60     73.82

Acquired loan ALL to total gross acquired loans

     0.72     0.57     0.60     1.32     1.42

Capital Ratios (Company)

          

Average equity to average total assets

     13.9     13.7     15.3     19.4     20.3

Tangible average equity to tangible average assets

     12.6     12.2     13.9     18.5     19.4

Tangible common equity ratio (1)

     12.5     11.7     12.5     17.2     19.2

Tier 1 leverage ratio

     13.1     12.0     13.4     18.0     19.3

Tier 1 risk-based capital ratio

     17.2     16.0     17.6     24.8     27.9

Total risk-based capital ratio

     17.7     16.5     18.1     25.3     28.5

Capital Ratios (Bank)

          

Average equity to average total assets

     11.8     11.9     12.3     12.5     13.0

Tangible common equity ratio

     10.1     10.4     10.5     11.5     11.8

Tier 1 leverage ratio

     10.6     10.8     11.2     12.0     11.9

Tier 1 risk-based capital ratio

     14.0     14.4     14.9     16.7     17.5

Total risk-based capital ratio

     14.6     14.9     15.4     17.3     18.0

 

(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)

 

     As of  
     September 30,      June 30,      March 31,      December 31,      September 30,  
     2014      2014      2014      2013      2013  
     (Dollars in thousands)  

New Loans:

              

Commercial real estate (1)

   $ 983,475       $ 892,999       $ 735,432       $ 669,711       $ 475,514   

1-4 single family residential

     734,608         523,987         384,076         359,818         164,022   

Construction, land and development

     160,899         123,169         79,215         75,666         63,455   

Home equity loans and lines of credit

     12,774         9,631         22,559         19,303         13,466   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 1,891,756       $ 1,549,786       $ 1,221,282       $ 1,124,498       $ 716,457   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     791,843         753,984         709,506         645,037         612,555   

Consumer

     2,444         2,567         1,408         1,176         7,880   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total New loans

   $ 2,686,043       $ 2,306,337       $ 1,932,196       $ 1,770,711       $ 1,336,892   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

              

Commercial real estate

   $ 364,753       $ 413,154       $ 426,940       $ 274,147       $ 290,476   

1-4 single family residential

     90,752         98,802         103,776         56,745         58,039   

Construction, land and development

     71,053         76,210         82,833         55,936         60,429   

Home equity loans and lines of credit

     —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 526,558       $ 588,166       $ 613,549       $ 386,828       $ 408,944   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     72,948         81,444         85,360         57,047         60,085   

Consumer

     2,936         3,345         3,674         3,992         4,317   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

   $ 602,442       $ 672,955       $ 702,583       $ 447,867       $ 473,346   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

              

Commercial real estate

   $ 85,474       $ 90,661       $ 97,440       $ 12,705       $ 12,734   

1-4 single family residential

     105,561         111,056         100,450         10,174         11,618   

Construction, land and development

     9,744         8,077         8,061         —           —     

Home equity loans and lines of credit

     56,170         56,926         65,340         11,998         11,891   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 256,949       $ 266,720       $ 271,291       $ 34,877       $ 36,243   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     13,561         16,519         30,831         5,040         6,083   

Consumer

     809         1,121         1,461         289         303   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

     271,319         284,360         303,583         40,206         42,629   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Loans

   $ 3,559,804       $ 3,263,652       $ 2,938,362       $ 2,258,784       $ 1,852,867   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Owner Occupied Commercial Real Estate in the new loan portfolio is $261.5 MM, $230.5 MM, $166.0 MM, $155.0 MM, and $113.9 MM, respectively.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

     As of  
     September 30,      June 30,      March 31,      December 31,      September 30,  
     2014      2014      2014      2013      2013  
     (Dollars in thousands)  

Non-interest bearing demand deposits

   $ 525,152       $ 435,055       $ 417,529       $ 291,658       $ 282,487   

Interest bearing NOW accounts

     526,013         120,197         103,063         84,837         70,617   

Savings and money market accounts

     1,695,237         1,970,093         1,694,913         1,251,842         1,031,726   

Time deposits

     1,244,958         1,432,921         1,514,164         1,165,196         1,167,677   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

   $ 3,991,360       $ 3,958,266       $ 3,729,669       $ 2,793,533       $ 2,552,507   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended September 30,     Three Months Ended June 30,  
     2014     2014  
     Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
    Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 76,682       $ 37         0.19   $ 97,493       $ 53         0.22

New loans

     2,440,992         21,866         3.51     2,087,601         18,475         3.50

Acquired loans

     903,941         20,219         8.95     967,986         19,358         8.00

Investment securities and other

     1,800,988         11,530         2.51     1,710,662         10,566         2.44
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

     5,222,603         53,652         4.05     4,863,742         48,452         3.96
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     75,191              78,916         

Non-interest-earning assets

     440,293              411,602         
  

 

 

         

 

 

       

Total assets

   $ 5,738,087            $ 5,354,260         
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Interest bearing NOW accounts

   $ 396,361       $ 347         0.35   $ 112,752       $ 43         0.15

Savings and money market accounts

     1,721,444         2,790         0.64     1,787,574         2,564         0.58

Time deposits

     1,358,610         2,987         0.87     1,464,960         3,226         0.88

FHLB advances and other borrowings

     945,519         1,633         0.68     786,513         1,466         0.74
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 4,421,934       $ 7,757         0.69   $ 4,151,799       $ 7,299         0.70
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest-bearing liabilities and shareholders’ equity:

                

Non-interest-bearing demand deposits

   $ 459,189            $ 420,188         

Other liabilities

     57,797              49,896         

Stockholders’ equity

     799,167              732,377         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,738,087            $ 5,354,260         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 45,895            $ 41,153      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.36           3.26
        

 

 

         

 

 

 

Net interest margin

           3.49           3.39
        

 

 

         

 

 

 

 

(1) Average rates are presented on an annualized basis based on the respective method of interest accrual.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended September 30,  
     2014     2013  
     Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
    Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 76,682       $ 37         0.19   $ 150,747       $ 104         0.27

New loans

     2,440,992         21,866         3.51     1,178,618         11,106         3.69

Acquired loans

     903,941         20,219         8.95     530,253         15,126         11.41

Investment securities and other

     1,800,988         11,530         2.51     1,458,462         9,184         2.46
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

     5,222,603         53,652         4.05     3,318,080         35,520         4.23
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     75,191              101,629         

Non-interest-earning assets

     440,293              170,679         
  

 

 

         

 

 

       

Total assets

   $ 5,738,087            $ 3,590,388         
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Interest bearing NOW accounts

   $ 396,361       $ 347         0.35   $ 70,288       $ 18         0.10

Savings and money market accounts

     1,721,444         2,790         0.64     1,036,066         1,216         0.47

Time deposits

     1,358,610         2,987         0.87     1,170,038         3,652         1.24

FHLB advances and other borrowings

     945,519         1,633         0.68     271,195         1,051         1.52
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 4,421,934       $ 7,757         0.69   $ 2,547,587       $ 5,937         0.92
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest-bearing liabilities and shareholders’ equity:

                

Non-interest-bearing demand deposits

   $ 459,189            $ 272,350         

Other liabilities

     57,797              41,758         

Stockholders’ equity

     799,167              728,693         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,738,087            $ 3,590,388         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 45,895            $ 29,583      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.36           3.31
        

 

 

         

 

 

 

Net interest margin

           3.49           3.54
        

 

 

         

 

 

 

 

(1) Average rates are presented on an annualized basis based on the respective method of interest accrual.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Nine Months Ended September 30,  
     2014     2013  
     Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
    Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 99,923       $ 158         0.21   $ 101,051       $ 175         0.23

New loans

     2,116,530         56,722         3.53     984,915         28,953         3.88

Acquired loans

     902,262         58,048         8.58     566,592         49,094         11.55

Investment securities and other

     1,677,454         32,094         2.52     1,482,724         27,909         2.48
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

     4,796,169         147,022         4.06     3,135,282         106,131         4.49
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     79,996              111,415         

Non-interest-earning assets

     400,034              161,619         
  

 

 

         

 

 

       

Total assets

   $ 5,276,199            $ 3,408,316         
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Interest bearing NOW accounts

   $ 203,949       $ 426         0.28   $ 68,870       $ 50         0.10

Savings and money market accounts

     1,687,648         7,237         0.57     927,650         3,275         0.47

Time deposits

     1,411,376         9,603         0.91     1,107,605         10,517         1.27

FHLB advances and other borrowings

     761,555         4,363         0.76     275,562         3,147         1.51
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 4,064,528       $ 21,629         0.71   $ 2,379,687       $ 16,989         0.95
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest-bearing liabilities and shareholders’ equity:

                

Non-interest-bearing demand deposits

   $ 411,180            $ 255,553         

Other liabilities

     48,955              41,202         

Stockholders’ equity

     751,536              731,874         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,276,199            $ 3,408,316         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 125,393            $ 89,142      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.35           3.54
        

 

 

         

 

 

 

Net interest margin

           3.50           3.80
        

 

 

         

 

 

 

 

(1) Average rates are presented on an annualized basis based on the respective method of interest accrual.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Net Income

(Unaudited)

 

     Three Months Ended  
     September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
    September 30,
2013
 
     (Dollars in thousands)  

Net Income (loss)

     $ (3,422   $ 9,166      $ 3,528      $ 5,925      $ 4,471   

Pre-tax Adjustments

          

Non-interest income

          

Less: Gain on investment securities

     2,785        4,448        2,495        3,480        2,106   

Non-interest expense

          

Salaries and employee benefits (1)

     15,379        —          2,220        65        232   

Occupancy and equipment

     —          225        —          —          —     

OREO & acquired assets resolution related expense

     —          —          135        —          —     

Professional services

     —          —          379        347        64   

Data processing and network fees

     —          —          893        125        —     

Regulatory assessments and insurance

     —          —          —          —          —     

Amortization of intangibles

     —          —          —          —          —     

Other operating expenses (2)

     4,895        1,290        1,467        40        137   

Taxes

          

Tax Effect of adjustments (3)

     (4,254     1,144        (1,014     1,132        652   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

   $ 9,813      $ 7,377      $ 5,113      $ 4,154      $ 3,450   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

   $ 5,738,087      $ 5,354,260      $ 4,725,119      $ 3,781,231      $ 3,590,388   

ROA (4)

     -0.24     0.69     0.30     0.62     0.49

Core ROA (5)

     0.68     0.55     0.44     0.44     0.38

 

(1) Includes $15.2 million in stock option expense in conjunction to the IPO and $0.2 million of severance expense in most recent quarter.
(2) Includes $4.1 million in warrant expense in conjunction to the IPO and $0.8 million of EAA expense in most recent quarter.
(3) Tax effected at marginal income tax rate of 39% except for non tax deductible items
(4) Return on assets: Annualized net income / average assets
(5) Core return on assets: Annualized core net income / average assets


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Efficiency Ratio

(Unaudited)

 

     Three Months Ended  
     September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
    September 30,
2013
 
     (Dollars in thousands)  

Reported: Net interest income

   $ 45,895      $ 41,153      $ 38,345      $ 33,181      $ 29,583   

FTE adjustment

     475        487        492        556        547   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

   $ 46,370      $ 41,640      $ 38,837      $ 33,737      $ 30,130   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Non-interest income

   $ 2,350      $ 6,690      $ 2,548      $ 3,595      $ 1,003   

FTE adjustment

     736        664        523        164        —     

Less: Gain on investment securities

     2,785        4,448        2,495        3,480        2,106   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core non-interest income (loss)

   $ 301      $ 2,906      $ 576      $ 279      $ (1,103
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Non-interest expense

   $ 48,959      $ 30,744      $ 34,466      $ 26,066      $ 24,260   

Less:

          

Salaries and employee benefits

     15,379        —          2,220        65        232   

Occupancy and equipment

     —          225        —          —          —     

OREO & acquired assets resolution related exp

     —          —          135        —          —     

Professional services

     —          —          379        347        64   

Data processing and network fees

     —          —          893        125        —     

Regulatory assessments and insurance

     —          —          —          —          —     

Amortization of intangibles

     —          —          —          —          —     

Other operating expenses

     4,895        1,290        1,467        40        137   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core non-interest expense

   $ 28,685      $ 29,229      $ 29,372      $ 25,489      $ 23,827   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

     101.48     64.26     84.28     70.88     79.32

Core efficiency ratio (2)

     61.46     65.62     74.52     74.93     82.09

 

(1) Efficiency ratio: Non-interest expense / (non-interest income + net interest income)
(2) Core efficiency ratio: Core non-interest expense / (core non-interest income + core net interest income)

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures - Tangible Book Value Per Share

(Unaudited)

 

     September 30,     June 30,     March 31,     December 31,     September 30,  
     2014     2014     2014     2013     2013  
     (Dollars in thousands, except share and per share data)  

Total assets

   $ 6,054,944      $ 5,641,708      $ 5,167,500      $ 3,973,370      $ 3,638,095   

Less:

          

Goodwill and other intangible assets

     89,040        89,466        90,317        39,369        39,736   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 5,965,904      $ 5,552,242      $ 5,077,183      $ 3,934,001      $ 3,598,359   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

   $ 835,727      $ 739,448      $ 723,869      $ 716,114      $ 729,253   

Less:

          

Goodwill and other intangible assets

     89,040        89,466        90,317        39,369        39,736   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholders’ equity

   $ 746,687      $ 649,982      $ 633,552      $ 676,745      $ 689,517   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

     41,409,698        35,892,154        35,892,154        35,892,154        37,011,598   

Tangible book value per share

   $ 18.03      $ 18.11      $ 17.65      $ 18.85      $ 18.63   

Average assets

   $ 5,738,087      $ 5,354,260      $ 4,725,119      $ 3,781,231      $ 3,590,388   

Average equity

     799,167        732,377        722,221        732,824        728,693   

Average goodwill and other intangible assets

     89,276        90,431        73,427        39,521        39,908   

Tangible average equity to tangible average assets

     12.6     12.2     13.9     18.5     19.4

Tangible common equity ratio

     12.5     11.7     12.5     17.2     19.2

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com