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8-K - FORM 8-K - FCB FINANCIAL HOLDINGS, INC.d34262d8k.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Reports Record Second Quarter 2015 Financial Results

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported second quarter 2015 net income of $19.4 million, or $0.45 per diluted share, and record core net income of $19.0 million, or $0.44 per diluted share. Net income rose 111% year-over-year and net income per diluted share rose 76%. Core net income rose 158% year-over-year and core net income per diluted share rose 115%. This resulted in a ROA of 123 basis points and a core ROA of 121 basis points, both of which reflect continued improvements on a year-over-year basis.

 

    Total net revenue of $64.3 million, up 34% year-over-year

 

    Core EPS of $0.44 on a fully diluted basis

 

    Total loan portfolio grew sequentially at an annualized rate of 40%;

 

    New loan fundings of $584.2 million during the quarter;

 

    Total deposits grew sequentially at an annualized rate of 23%;

 

    Demand deposits grew to 20% of total deposits during the quarter;

 

    Core efficiency ratio improved to 48.1%;

 

    Core ROA of 121 basis points; and

 

    Tangible book value per share was $18.58;

The Company views certain 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. Core adjustments for the second quarter of 2015 include $0.2 million of other operating expenses and $0.8 million of gain on investment securities.

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 continued organic momentum in the second quarter with record organic loan growth and consistent core deposit momentum leading to another quarter of record core operating results. Also, we are excited to welcome to our team eight new bankers in Miami-Dade and Tampa and our masters training program candidates.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $408.7 million to $4.5 billion at June 30, 2015, an increase of 10% from $4.1 billion as of March 31, 2015 and 39% from $3.3 billion as of June 30, 2014.

Our new loan portfolio totaled $3.8 billion as of June 30, 2015, an increase of 14% from $3.4 billion as of March 31, 2015 and 65% from $2.3 billion as of June 30, 2014. Our loan growth during the quarter was a result of $584.2 million of new loan fundings, consisting of a record $440.6 million of organic production and $143.6 million of purchased residential mortgages. Organic loan production for the quarter consisted of $122.8 million of commercial and industrial, $187.1 million of commercial real estate and $130.7 million of residential and consumer. Due to the maturation of the organic residential lending platform, the Bank does not intend to purchase additional residential mortgages in the foreseeable future. As of June 30, 2015 new loans made up 84% of our total loan portfolio as compared to 81% and 71% as of March 31, 2015 and June 30, 2014, respectively.

Our acquired loan portfolio totaled $720.2 million as of June 30, 2015, a decrease of 6% from $764.6 million as of March 31, 2015 and a decrease of 25% from $957.3 million as of June 30, 2014. The decrease in the current quarter was driven by net resolution activity totaling $33.2 million as well as scheduled loan amortization. As of June 30, 2015, acquired loans made up 16% of our total loan portfolio as compared to 19% and 29% as of March 31, 2015 and June 30, 2014, respectively.


Asset Quality

The provision for loan losses of $2.5 million recorded for the second quarter of 2015 includes a $2.3 million provision for new loans and a $0.2 million provision for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $19.6 million, or 0.51% of the $3.8 billion in new loans outstanding. There were no new loan portfolio charge-offs in the second quarter of 2015 and a nonperforming new loan ratio of zero percent as of June 30, 2015.

Deposits and Borrowings

Deposits totaled $4.5 billion as of June 30, 2015, an increase of 6% from $4.2 billion as of March 31, 2015 and an increase of 13% from $4.0 billion as of June 30, 2014. During the second quarter of 2015, demand deposits increased by $119.3 million, or 15%, from March 31, 2015 and increased by $475.8 million, or 109%, from June 30, 2014. Demand deposits represent 20% of total deposits as of June 30, 2015 as compared to 19% and 11% as of March 31, 2015 and June 30, 2014, respectively. The cost of deposits was 57 basis points for the quarter, representing a 2 basis point increase from the first quarter of 2015 and a 5 basis point decline from the second quarter of 2014.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2015 was 3.43%, a decrease of 15 basis points from the first quarter of 2015 and an increase of 4 basis points from the second quarter of 2014. The decrease from the first quarter of 2015 was due primarily to an average balance reduction in higher yielding acquired loans of $65.7 million.

Net interest income totaled $50.2 million in the second quarter of 2015, an increase of 3% from $48.9 million in the first quarter of 2015 and an increase of 22% from $41.2 million in the second quarter of 2014. Interest income totaled $57.4 million for the second quarter of 2015, an increase of 4% from $55.4 million in the first quarter of 2015 and an increase of 18% from $48.5 million in the second quarter of 2014. Interest income from new loans increased by $2.7 million, or 10%, from the first quarter of 2015 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $1.8 million, or 11%, from the first quarter due to expected payoffs and resolutions of acquired loans. Interest expense was $7.2 million for the second quarter of 2015, an increase of 10% from $6.6 million in the first quarter of 2015 and a decrease 1% from $7.3 million in the second quarter of 2014. The increase from the first quarter of 2015 was a result of an increase of $289.2 million of average interest-bearing liabilities coupled with increased costs associated with the addition of longer duration borrowings.

Noninterest Income and Noninterest Expense

Noninterest income (loss) totaled $14.2 million for the second quarter of 2015 as compared to ($54.1) million for the first quarter of 2015 and $6.7 million for the second quarter of 2014. The primary components of noninterest income for the quarter were loan and other fees, gain on sales of other real estate owned, income from resolution of acquired assets, and gain on investment securities of $1.9 million, $5.6 million, $2.9 million and $0.8 million, respectively. The Company continues to realize resolution of acquired asset income and gain on sales of other real estate owned stemming from its acquired asset portfolio. As a result of the early termination of the FDIC loss share agreements, the Company recognized all recoveries and gain on sales related to what were previously “covered assets” in its consolidated statement of income as these amounts are no longer shared with the FDIC.


Noninterest expense totaled $32.0 million for the second quarter of 2015, an increase of 5% from $30.7 million in the first quarter of 2015 and 4% from $30.7 million in the second quarter of 2014. For the quarter, the Company recorded non-core expenses of $0.2 million in other operating expenses associated with a branch closure and $45 thousand in professional services.

Financial Position

Capital ratios continue to be strong and well in excess of regulatory requirements. Our tangible common equity, Tier 1 leverage, and total risk-based capital ratios were 11.8%, 12.3% and 15.4% for the second quarter of 2015 respectively, compared to 12.4%, 12.6% and 16.1% for the first quarter of 2015, respectively. Stockholders’ equity totaled $857.5 million as of June 30, 2015, an increase of 1.3% from $846.8 million as of March 31, 2015 primarily driven by net income of $19.4 million which was partially offset by a $10.5 million decrease in accumulated other comprehensive income. During the quarter, the Company repurchased 30,000 shares at a weighted average price of $26.72. Tangible book value per common share is $18.58 as of June 30, 2015.

Conference Call

The Company will host a conference call today, Tuesday, July 21, 2015 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.

The number to call for this interactive teleconference is (855) 238-8125, and please ask to join the FCB Financial Holdings, Inc. or FCB teleconference. Please dial in 10 minutes prior to the beginning of the call.

A telephonic replay of the conference call will be available through August 21, 2015, by dialing (877) 344-7529 and entering pass code 10068058.

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 Annual Report on Form 10-K. 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 noninterest income and total noninterest 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 noninterest 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 noninterest income and total noninterest 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 stockholders’ 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.

With over $6.0 billion in assets, Florida Community Bank (FCB) is the fourth largest Florida-based independent bank. Listed on the New York Stock Exchange, (NYSE: FCB), the bank serves the state with 48 full service banking centers. The presence of FCB blankets both Florida coasts from Daytona Beach to Miami-Dade, Naples through Tampa Bay, as well as the I-4 Corridor. FCB is among the most highly capitalized banks in the state with capital ratios exceeding the regulatory standard to be considered “well capitalized” by a wide margin. Complete information outlining the depth and breadth of the company is found at www.FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements Of Income

(Unaudited)

 

     Three Months Ended  
     June 30,
2015
     March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 
     (Dollars in thousands, except share and per share data)  

Interest income:

           

Interest and fees on loans

   $ 44,202       $ 43,306      $ 43,900      $ 42,085      $ 37,833   

Interest and dividends on investment securities

     13,169         12,110        12,451        11,530        10,566   

Other interest income

     40         33        53        37        53   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

  57,411      55,449      56,404      53,652      48,452   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense:

Interest on deposits

  5,991      5,585      5,492      6,124      5,833   

Interest on borrowings

  1,246      980      1,133      1,633      1,466   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

  7,237      6,565      6,625      7,757      7,299   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

  50,174      48,884      49,779      45,895      41,153   

Provision for loan losses

  2,470      1,349      3,112      2,805      3,236   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

  47,704      47,535      46,667      43,090      37,917   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest income:

Service charges and fees

  778      757      780      738      707   

Loan and other fees

  1,906      2,497      2,270      1,238      2,569   

Bank-owned life insurance income

  1,097      1,097      1,168      1,151      1,038   

FDIC loss share indemnification loss

  —        (65,529   (5,324   (5,862   (5,247

Income from resolution of acquired assets

  2,898      3,372      1,061      1,109      1,692   

Gain (loss) on sales of other real estate owned

  5,605      1,565      200      (128   (359

Gain (loss) on investment securities

  761      1,007      2,377      2,785      4,448   

Other noninterest income

  1,107      1,145      2,912      1,319      1,842   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

  14,152      (54,089   5,444      2,350      6,690   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest expense:

Salaries and employee benefits

  17,856      16,575      14,885      28,525      13,411   

Occupancy and equipment expenses

  3,806      3,277      3,248      3,606      3,777   

Loan and other real estate related expenses

  1,425      2,076      4,566      3,203      3,338   

Professional services

  1,189      1,406      1,242      1,203      1,352   

Data processing and network

  2,801      2,718      2,639      2,538      2,357   

Regulatory assessments and insurance

  2,092      2,119      1,679      2,466      1,920   

Amortization of intangibles

  407      424      425      426      443   

Other operating expenses

  2,471      2,055      2,779      6,992      4,146   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

  32,047      30,650      31,463      48,959      30,744   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax expense (benefit)

  29,809      (37,204   20,648      (3,519   13,863   

Income tax expense (benefit)

  10,433      (20,330   7,548      (97   4,697   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ 19,376    $ (16,874 $ 13,100    $ (3,422 $ 9,166   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

Basic

$ 0.47    $ (0.41 $ 0.32    $ (0.09 $ 0.26   

Diluted

$ 0.45    $ (0.41 $ 0.31    $ (0.09 $ 0.26   

Weighted average shares outstanding:

Basic

  41,428,588      41,421,854      41,409,698      38,952,127      35,892,154   

Diluted

  43,106,131      41,421,854      42,154,781      38,952,127      35,896,207   


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

     June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 
     (Dollars in thousands)  

Assets:

          

Cash and due from banks

   $ 32,161      $ 46,043      $ 25,397      $ 28,288      $ 29,976   

Interest-earning deposits in other banks

     109,125        66,034        81,688        112,342        100,634   

Investment securities:

          

Held to maturity securities

     —          —          —          —          —     

Available for sale securities, at fair value

     1,430,149        1,447,776        1,359,098        1,771,321        1,724,702   

Federal Home Loan Bank and other bank stock, at cost

     70,505        65,289        66,891        71,217        56,328   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment securities

  1,500,654      1,513,065      1,425,989      1,842,538      1,781,030   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans held for sale

  4,782      1,308      707      108      1,492   

Loans:

New loans

  3,807,547      3,354,452      3,103,417      2,686,043      2,306,337   

Acquired loans

  720,175      764,597      826,173      873,761      957,315   

Allowance for loan losses

  (27,046   (24,513   (22,880   (20,440   (17,884
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans, net

  4,500,676      4,094,536      3,906,710      3,539,364      3,245,768   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FDIC Loss share indemnification asset

  —        —        63,168      69,920      74,853   

Due from Federal Deposit Insurance Corporation (“FDIC”)

  —        —        1,735      104      969   

Premises and equipment, net

  37,641      38,291      38,962      39,256      39,152   

Other real estate owned

  42,654      75,017      74,527      78,512      80,988   

Goodwill and other intangible assets

  87,884      88,291      88,615      89,040      89,466   

Deferred tax assets, net

  76,720      69,656      47,441      41,257      35,439   

Bank-owned life insurance

  140,830      139,733      139,829      138,264      117,113   

Other assets

  74,071      85,109      62,860      75,951      44,828   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

$ 6,607,198    $ 6,217,083    $ 5,957,628    $ 6,054,944    $ 5,641,708   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

Liabilities:

Deposits:

Transaction accounts:

Noninterest-bearing

$ 621,845    $ 595,389    $ 593,025    $ 525,152    $ 435,055   

Interest-bearing

  2,586,491      2,411,142      2,308,657      2,221,250      2,090,290   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transaction accounts

  3,208,336      3,006,531      2,901,682      2,746,402      2,525,345   

Time deposits

  1,257,751      1,219,470      1,076,853      1,244,958      1,432,921   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

  4,466,087      4,226,001      3,978,535      3,991,360      3,958,266   

Borrowings

  1,232,893      1,091,118      1,067,981      1,164,404      855,301   

Other liabilities

  50,739      53,130      59,459      63,453      88,693   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

  5,749,719      5,370,249      5,105,975      5,219,217      4,902,260   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

Class A common stock

  37      37      36      36      29   

Class B common stock

  6      6      7      7      8   

Additional paid-in capital

  839,265      836,720      834,538      833,478      724,519   

Retained earnings

  37,646      18,270      35,144      22,044      25,466   

Accumulated other comprehensive income (loss)

  78      10,552      679      (1,087   8,177   

Treasury stock, at cost

  (19,553   (18,751   (18,751   (18,751   (18,751
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

  857,479      846,834      851,653      835,727      739,448   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 6,607,198    $ 6,217,083    $ 5,957,628    $ 6,054,944    $ 5,641,708   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

     Three Months Ended  
     June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 

Performance Ratios

          

Interest rate spread

     3.28     3.42     3.50     3.36     3.26

Net interest margin

     3.43     3.58     3.62     3.49     3.39

Return on average assets

     1.23     -1.13     0.87     -0.24     0.69

Return on average equity

     9.09     -7.97     6.15     -1.70     5.02

Efficiency ratio (company level)

     49.19     -580.71     56.97     101.48     64.26

Average interest-earning assets to average interest bearing liabilities

     121.22     121.55     119.64     118.11     117.15

Loans receivable to deposits

     101.38     97.47     98.77     89.19     82.45

Yield on interest-earning assets

     3.88     4.00     4.08     4.05     3.96

Cost of interest-bearing liabilities

     0.60     0.58     0.58     0.69     0.70

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     0.39     0.40     0.49     0.62     1.07

Nonperforming assets to total assets

     0.91     1.47     1.58     1.66     2.06

Covered loans to total gross loans

     0.00     0.00     6.96     8.05     10.00

ALL to nonperforming assets

     44.83     26.77     24.36     20.35     15.42

ALL to total gross loans

     0.60     0.60     0.58     0.57     0.55

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.00     0.00     0.00     0.00     0.01

New loan ALL to total gross new loans

     0.51     0.52     0.52     0.53     0.54

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     2.45     2.16     2.34     2.51     3.63

Covered acquired loans to total gross acquired loans

     0.00     0.00     33.09     32.78     34.11

Acquired loan ALL to total gross acquired loans

     1.04     0.94     0.83     0.72     0.57

Capital Ratios (Company)

          

Average equity to average total assets

     13.5     14.2     14.2     13.9     13.7

Tangible average equity to tangible average assets

     12.3     12.9     12.9     12.6     12.2

Tangible common equity ratio (1)

     11.8     12.4     13.0     12.5     11.7

Tier 1 leverage ratio

     12.3     12.6     12.8     13.1     12.0

Tier 1 risk-based capital ratio

     14.9     15.6     17.0     17.2     16.0

Total risk-based capital ratio

     15.4     16.1     17.6     17.7     16.5

Capital Ratios (Bank)

          

Average equity to average total assets

     11.8     11.8     11.7     11.8     11.9

Tangible common equity ratio

     10.2     10.6     10.4     10.1     10.4

Tier 1 leverage ratio

     10.7     10.7     10.4     10.6     10.8

Tier 1 risk-based capital ratio

     13.0     13.4     13.9     14.0     14.4

Total risk-based capital ratio

     13.5     13.9     14.5     14.6     14.9

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)

 

     As of  
     June 30,      March 31,      December 31,      September 30,      June 30,  
     2015      2015      2014      2014      2014  
     (Dollars in thousands)  

New Loans:

              

Commercial real estate

   $ 942,424       $ 903,629       $ 853,074       $ 721,676       $ 662,199   

Owner-occupied commercial real estate

     400,438         325,972         281,703         261,549         230,546   

1-4 single family residential

     1,248,625         1,044,480         922,657         734,608         523,987   

Construction, land and development

     349,659         248,623         232,601         160,899         123,169   

Home equity loans and lines of credit

     22,798         20,459         11,826         12,774         9,631   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 2,963,944    $ 2,543,163    $ 2,301,861    $ 1,891,506    $ 1,549,532   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  837,270      805,233      795,000      792,093      754,238   

Consumer

  6,333      6,056      6,556      2,444      2,567   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total new loans

$ 3,807,547    $ 3,354,452    $ 3,103,417    $ 2,686,043    $ 2,306,337   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

Commercial real estate

$ 286,337    $ 309,758    $ 336,935    $ 364,753    $ 413,154   

1-4 single family residential

  76,849      77,685      86,308      90,752      98,802   

Construction, land and development

  55,453      56,403      66,700      71,053      76,210   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 418,639    $ 443,846    $ 489,943    $ 526,558    $ 588,166   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  58,045      63,441      67,498      72,948      81,444   

Consumer

  2,524      2,588      2,803      2,936      3,345   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

$ 479,208    $ 509,875    $ 560,244    $ 602,442    $ 672,955   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

Commercial real estate

$ 62,473    $ 69,917    $ 70,146    $ 68,578    $ 76,120   

Owner-occupied commercial real estate

  19,860      13,287      14,842      16,640      14,294   

1-4 single family residential

  86,754      97,450      102,279      105,561      111,056   

Construction, land and development

  8,610      9,801      9,729      9,744      8,077   

Home equity loans and lines of credit

  52,971      52,762      54,704      56,170      56,926   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 230,668    $ 243,217    $ 251,700    $ 256,693    $ 266,473   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  9,654      10,825      13,548      13,817      16,766   

Consumer

  645      680      681      809      1,121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

  240,967      254,722      265,929      271,319      284,360   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

$ 4,527,722    $ 4,119,049    $ 3,929,590    $ 3,559,804    $ 3,263,652   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

     As of  
     June 30,      March 31,      December 31,      September 30,      June 30,  
     2015      2015      2014      2014      2014  
     (Dollars in thousands)  

Noninterest-bearing demand deposits

   $ 621,845       $ 595,389       $ 593,025       $ 525,152       $ 435,055   

Interest-bearing demand deposits

     288,990         196,192         122,380         —           —     

Interest-bearing NOW accounts

     414,795         439,400         374,399         526,013         120,197   

Savings and money market accounts

     1,882,706         1,775,550         1,811,878         1,695,237         1,970,093   

Time deposits

     1,257,751         1,219,470         1,076,853         1,244,958         1,432,921   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

$ 4,466,087    $ 4,226,001    $ 3,978,535    $ 3,991,360    $ 3,958,266   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended June 30,     Three Months Ended March 31,  
     2015     2015  
     Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
    Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Interest-earning deposits in other banks

   $ 75,166       $ 40         0.21   $ 78,344       $ 33         0.17

New loans

     3,476,829         29,257         3.33     3,179,879         26,585         3.34

Acquired loans (4)

     730,895         14,945         8.18     796,571         16,721         8.40

Investment securities

     1,591,279         13,169         3.27     1,483,886         12,110         3.26
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,874,169      57,411      3.88   5,538,680      55,449      4.00
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  —        44,045   

Noninterest-earning assets

  450,904      456,245   
  

 

 

         

 

 

       

Total assets

$ 6,325,073    $ 6,038,970   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 212,164    $ 226      0.43 $ 141,879    $ 132      0.38

Interest-bearing NOW accounts

  415,206      349      0.34   392,318      336      0.35

Savings and money market accounts

  1,794,967      2,333      0.52   1,843,078      2,454      0.54

Time deposits

  1,242,071      3,083      1.00   1,146,475      2,663      0.94

FHLB advances and other borrowings

  1,181,419      1,246      0.42   1,032,908      980      0.38
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,845,827    $ 7,237      0.60 $ 4,556,658    $ 6,565      0.58
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 576,905    $ 569,304   

Other liabilities

  47,213      53,997   

Stockholders’ equity

  855,128      859,011   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 6,325,073    $ 6,038,970   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 50,174    $ 48,884   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.28   3.42
        

 

 

         

 

 

 

Net interest margin

  3.43   3.58
        

 

 

         

 

 

 

 

(1) Average balances presented are derived from daily average balances.
(2) Interest income is presented on an actual basis and does not include taxable equivalent adjustments.
(3) Average rates are presented on an annualized basis.
(4) Includes loans on non-accrual status.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended June 30,  
     2015     2014  
     Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
    Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Interest-earning deposits in other banks

   $ 75,166       $ 40         0.21   $ 97,493       $ 53         0.22

New loans

     3,476,829         29,257         3.33     2,087,601         18,475         3.50

Acquired loans (4)

     730,895         14,945         8.18     967,986         19,358         8.00

Investment securities

     1,591,279         13,169         3.27     1,710,662         10,566         2.44
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,874,169      57,411      3.88   4,863,742      48,452      3.96
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  —        78,916   

Noninterest-earning assets

  450,904      411,602   
  

 

 

         

 

 

       

Total assets

$ 6,325,073    $ 5,354,260   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 212,164    $ 226      0.43 $ —      $ —        0.00

Interest-bearing NOW accounts

  415,206      349      0.34   112,752      43      0.15

Savings and money market accounts

  1,794,967      2,333      0.52   1,787,574      2,564      0.58

Time deposits

  1,242,071      3,083      1.00   1,464,960      3,226      0.88

FHLB advances and other borrowings

  1,181,419      1,246      0.42   786,513      1,466      0.74
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,845,827    $ 7,237      0.60 $ 4,151,799    $ 7,299      0.70
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 576,905    $ 420,188   

Other liabilities

  47,213      49,896   

Stockholders’ equity

  855,128      732,377   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 6,325,073    $ 5,354,260   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 50,174    $ 41,153   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.28   3.26
        

 

 

         

 

 

 

Net interest margin

  3.43   3.39
        

 

 

         

 

 

 

 

(1) Average balances presented are derived from daily average balances.
(2) Interest income is presented on an actual basis and does not include taxable equivalent adjustments.
(3) Average rates are presented on an annualized basis.
(4) Includes loans on non-accrual status.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Average Balances and Yields

(Unaudited)

 

     Six Months Ended June 30,  
     2015     2014  
     Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
    Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Interest-earning deposits in other banks

   $ 76,746       $ 73         0.19   $ 111,736       $ 121         0.22

New loans

     3,329,174         55,842         3.34     1,951,611         34,856         3.55

Acquired loans (4)

     763,551         31,666         8.29     901,409         37,829         8.39

Investment securities

     1,537,879         25,279         3.27     1,614,663         20,564         2.53
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,707,350      112,860      3.94   4,579,419      93,370      4.06
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  21,901      82,437   

Noninterest-earning assets

  453,561      379,571   
  

 

 

         

 

 

       

Total assets

$ 6,182,812    $ 5,041,427   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 177,215    $ 358      0.41 $ —      $ —        0.00

Interest-bearing NOW accounts

  403,825      685      0.34   106,148      79      0.15

Savings and money market accounts

  1,818,890      4,787      0.53   1,670,470      4,447      0.54

Time deposits

  1,194,537      5,746      0.97   1,438,197      6,616      0.93

FHLB advances and other borrowings

  1,107,574      2,226      0.40   668,048      2,730      0.81
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,702,041    $ 13,802      0.60 $ 3,882,863    $ 13,872      0.72
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 573,126    $ 386,777   

Other liabilities

  50,586      44,459   

Stockholders’ equity

  857,059      727,327   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 6,182,812    $ 5,041,427   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 99,058    $ 79,498   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.34   3.34
        

 

 

         

 

 

 

Net interest margin

  3.50   3.50
        

 

 

         

 

 

 

 

(1) Average balances presented are derived from daily average balances.
(2) Interest income is presented on an actual basis and does not include taxable equivalent adjustments.
(3) Average rates are presented on an annualized basis.
(4) Includes loans on non-accrual status.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Net Income

(Unaudited)

 

    Three Months Ended  
    June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 
    (Dollars in thousands)  

Net Income (loss)

  $ 19,376      $ (16,874   $ 13,100      $ (3,422   $ 9,166   

Pre-tax Adjustments

         

Noninterest income

         

Less: Gain (loss) on investment securities

    761        1,007        2,377        2,785        4,448   

  FDIC loss share indemnification loss

    —          (65,529     —          —          —     

Noninterest expense

         

Salaries and employee benefits

    (17     185        1        15,379        —     

Occupancy and equipment

    —          —          —          —          225   

Loan and other real estate related expenses

    —          —          —          —          —     

Professional services

    45        245        —          —          —     

Data processing and network fees

    —          2        —          —          —     

Regulatory assessments and insurance

    —          —          —          —          —     

Amortization of intangibles

    —          —          —          —          —     

Other operating expenses

    203        64        (6     4,895        1,290   

Taxes

         

Tax Effect of adjustments (1)

    186        (30,065     1,881        (4,254     1,144   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

$ 19,031    $ 18,079    $ 12,599    $ 9,813    $ 7,377   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

$ 6,325,073    $ 6,038,970    $ 5,953,704    $ 5,738,087    $ 5,354,260   

ROA (2)

  1.23   -1.13   0.87   -0.24   0.69

Core ROA (3)

  1.21   1.21   0.84   0.68   0.55

 

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items. Core tax rate of 35% in 2015.
(2) Return on assets: Annualized net income / average assets
(3) 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  
     June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 
     (Dollars in thousands)  

Reported: Net interest income

   $ 50,174      $ 48,884      $ 49,779      $ 45,895      $ 41,153   

FTE adjustment

     986        777        711        475        487   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

$ 51,160    $ 49,661    $ 50,490    $ 46,370    $ 41,640   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest income

$ 14,152    $ (54,089 $ 5,444    $ 2,350    $ 6,690   

FTE adjustment

  701      702      747      736      664   

Less: Gain (loss) on investment securities

  761      1,007      2,377      2,785      4,448   

  FDIC loss share indemnification loss

  —        (65,529   —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest income (loss)

$ 14,092    $ 11,135    $ 3,814    $ 301    $ 2,906   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest expense

$ 32,047    $ 30,650    $ 31,463    $ 48,959    $ 30,744   

Less:

Salaries and employee benefits

  (17   185      1      15,379      —     

Occupancy and equipment

  —        —        —        —        225   

Loan and other real estate related expenses

  —        —        —        —        —     

Professional services

  45      245      —        —        —     

Data processing and network fees

  —        2      —        —        —     

Regulatory assessments and insurance

  —        —        —        —        —     

Amortization of intangibles

  —        —        —        —        —     

Other operating expenses

  203      64      (6   4,895      1,290   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest expense

$ 31,816    $ 30,154    $ 31,468    $ 28,685    $ 29,229   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

  49.19   -580.71   56.97   101.48   64.26

Core efficiency ratio (2)

  48.14   48.90   57.95   61.46   65.62

 

(1) Efficiency ratio: Noninterest expense less amortization of intangibles / (noninterest income + net interest income)
(2) Core efficiency ratio: Core noninterest expense less amortization of intangibles / (core noninterest income + core net interest income)


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

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

(Unaudited)

 

     June 30,     March 31,     December 31,     September 30,     June 30,  
     2015     2015     2014     2014     2014  
     (Dollars in thousands, except share and per share data)  

Total assets

   $ 6,607,198      $ 6,217,083      $ 5,957,628      $ 6,054,944      $ 5,641,708   

Less:

          

Goodwill and other intangible assets

     87,884        88,291        88,615        89,040        89,466   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

$ 6,519,314    $ 6,128,792    $ 5,869,013    $ 5,965,904    $ 5,552,242   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

$ 857,479    $ 846,834    $ 851,653    $ 835,727    $ 739,448   

Less:

Goodwill and other intangible assets

  87,884      88,291      88,615      89,040      89,466   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholders’ equity

$ 769,595    $ 758,543    $ 763,038    $ 746,687    $ 649,982   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

  41,423,199      41,443,031      41,409,698      41,409,698      35,892,154   

Tangible book value per share

$ 18.58    $ 18.30    $ 18.43    $ 18.03    $ 18.11   

Average assets

$ 6,325,073    $ 6,038,970    $ 5,953,704    $ 5,738,087    $ 5,354,260   

Average equity

  855,128      859,011      844,572      799,167      732,377   

Average goodwill and other intangible assets

  88,091      88,536      88,835      89,276      90,431   

Tangible average equity to tangible average assets

  12.3   12.9   12.9   12.6   12.2

Tangible common equity ratio

  11.8   12.4   13.0   12.5   11.7

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com