EX-99.1 2 d160785dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FCB Financial Holdings, Inc. Reports Record First Quarter 2016 Financial Results

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported first quarter 2016 net income of $22.5 million, or $0.52 per share on a fully diluted basis, and record core net income of $22.7 million, or $0.53 per share on a fully diluted basis. Core net income rose 26% year-over-year and core net income per diluted share rose 24%. These resulted in a ROA of 119 basis points and a core ROA of 121 basis points, and continue to reflect improvements on a year-over-year basis.

 

    Total net revenue of $69.9 million;

 

    Core EPS of $0.53 per share on a fully diluted basis;

 

    Total loan portfolio grew sequentially at an annualized rate of 35%;

 

    New loan fundings of $512.1 million during the quarter;

 

    Total deposits grew sequentially at an annualized rate of 35%;

 

    Total deposits grew by $472 million during the quarter;

 

    Demand deposits grew by $140 million, or 45% annualized, during the quarter;

 

    Core efficiency ratio of 45.4%;

 

    Core ROA of 121 basis points; and

 

    Tangible book value per share was $19.77.

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 first quarter of 2016 include $0.2 million of severance and other operating expenses, $0.1 million of cease use expense related to branch closures and $54 thousand loss on sale of 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, “This was another record quarter for our Company, highlighted by new loan and deposit growth in excess of $450 million. This continued momentum across our fundamental core businesses is creating a foundation for sustainable growth and producing strong financial results within a framework of safety and soundness.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $450.5 million to $5.6 billion at March 31, 2016, an increase of 9% from $5.2 billion as of December 31, 2015 and 37% from $4.1 billion as of March 31, 2015.

The Bank’s new loan portfolio totaled $5.1 billion as of March 31, 2016, an increase of 11% from $4.6 billion as of December 31, 2015 and 52% from $3.4 billion as of March 31, 2015. Loan growth during the quarter was a result of $512.1 million of new loan fundings, consisting of $327.3 million of organic production and $184.7 million of purchased residential mortgages. Organic loan production for the quarter consisted of $134.8 million of commercial and industrial, $76.0 million of commercial real estate and $116.5 million of residential and consumer. As the acquired portfolio continues to resolve, the Bank may periodically supplement organic production with high quality purchased residential mortgages as part of its overall balance sheet management strategy. As of March 31, 2016 new loans made up 91% of the total loan portfolio as compared to 89% and 81% as of December 31, 2015 and March 31, 2015, respectively.

The Bank’s acquired loan portfolio totaled $535.1 million as of March 31, 2016, a decrease of 8% from $582.4 million as of December 31, 2015 and a decrease of 30% from $764.6 million as of March 31, 2015. The decrease in

 

1


the current quarter was driven by the resolution of $31.4 million of loans as well as scheduled loan amortization. As of March 31, 2016, acquired loans made up 9% of our total loan portfolio as compared to 11% and 19% as of December 31, 2015 and March 31, 2015, respectively.

Asset Quality

The provision for loan losses of $1.4 million recorded for the first quarter of 2016 includes a $2.6 million provision for new loans and net recoupment of valuation allowance of $1.2 million for the acquired loan portfolio due to recoveries and better than expected performance on resolution of acquired loans. The provision for new loans served to increase the related allowance to $26.3 million, or 0.52% of the $5.1 billion in new loans outstanding. The nonperforming new loan ratio as of March 31, 2016 was 0.02%.

Deposits and Borrowings

Deposits totaled $5.9 billion as of March 31, 2016, an increase of 9% from $5.4 billion as of December 31, 2015 and an increase of 40% from $4.2 billion as of March 31, 2015. During the first quarter of 2016, demand deposits increased by $140.2 million, or 11%, from December 31, 2015 and increased by $594.1 million, or 75%, from March 31, 2015. Demand deposits represent 23% of total deposits as of March 31, 2016 as compared to 23% and 19% as of December 31, 2015 and March 31, 2015, respectively. The cost of deposits was 66 basis points for the quarter, representing a 6 basis point increase from the fourth quarter of 2015 and an 11 basis point increase from the first quarter of 2015.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2016 was 3.65%, a decrease of 4 basis points from the fourth quarter of 2015 and an increase of 7 basis points from the first quarter of 2015. The decrease from the fourth quarter of 2015 was due primarily to an increase of cost of time deposits and borrowings more than offsetting the increase in yield on the new loan portfolio.

Net interest income totaled $64.4 million in the first quarter of 2016, an increase of 4% from $62.0 million in the fourth quarter of 2015 and an increase of 32% from $48.9 million in the first quarter of 2015. Interest income totaled $75.7 million for the first quarter of 2016, an increase of 6% from $71.2 million in the fourth quarter of 2015 and an increase of 37% from $55.4 million in the first quarter of 2015. Interest income from new loans increased by $5.5 million, or 15%, from the fourth quarter of 2015 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $1.1 million, or 6%, from the fourth quarter as balance runoff more than offset better than expected cash flow performance. Interest expense was $11.3 million for the first quarter of 2016, an increase of 23% from $9.2 million in the fourth quarter of 2015 and an increase 72% from $6.6 million in the first quarter of 2015. The increase from the fourth quarter of 2015 was a result of an increase of $395.2 million of average interest-bearing liabilities coupled with increased costs associated with the addition of longer duration deposits and borrowings.

Noninterest Income and Noninterest Expense

Noninterest income totaled $5.4 million for the first quarter of 2016 as compared to $7.5 million for the fourth quarter of 2015 and ($54.1) million for the first quarter of 2015. The primary components of noninterest income for the quarter were loan and other fees and bank-owned life insurance income of $2.0 million and $1.3 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 $33.3 million for the first quarter of 2016, in line with expense of $33.2 million in the fourth quarter of 2015 and an increase of 9% from $30.7 million in the first quarter of 2015. For the quarter, the Company recorded non-core expenses of $0.3 million consisting of severance and other salary expense of $0.2 million and cease use expense of $0.1 million relating to branch closures.

 

2


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 10.4%, 9.6% and 11.1% for the first quarter of 2016 respectively, compared to 10.9%, 10.3% and 12.1% for the fourth quarter of 2015, respectively. Stockholders’ equity totaled $889.3 million as of March 31, 2016, an increase of 1.5% from $876.1 million as of December 31, 2015 as net income of $22.5 million was partially offset by $13.6 million in treasury stock repurchases. During the quarter, the Company repurchased 421,564 shares at a cost of $13.6 million. Tangible book value per common share is $19.77 as of March 31, 2016.

Conference Call

The Company will host a conference call today, Thursday, April 21, 2016 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 May 21, 2016, by dialing (877) 344-7529 and entering pass code 10083380.

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 most 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.

 

3


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 $7.8 billion in assets, Florida Community Bank (FCB) is the third largest Florida-based independent bank. Listed on the New York Stock Exchange, (NYSE: FCB), the bank serves the state with 47 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.” Complete information outlining the depth and breadth of the company is found at www.FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.

 

4


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements Of Income

(Unaudited)

 

     Three Months Ended  
     March 31,
2016
    December 31,
2015
    September 30,
2015
     June 30,
2015
     March 31,
2015
 
     (Dollars in thousands, except share and per share data)  

Interest income:

            

Interest and fees on loans

   $ 61,288      $ 56,945      $ 51,670       $ 44,202       $ 43,306   

Interest and dividends on investment securities

     14,374        14,147        13,315         13,169         12,110   

Other interest income

     66        65        38         40         33   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total interest income

     75,728        71,157        65,023         57,411         55,449   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Interest expense:

            

Interest on deposits

     9,293        7,719        6,846         5,991         5,585   

Interest on borrowings

     1,993        1,469        1,408         1,246         980   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total interest expense

     11,286        9,188        8,254         7,237         6,565   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income

     64,442        61,969        56,769         50,174         48,884   

Provision for loan losses

     1,440        2,329        675         2,470         1,349   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     63,002        59,640        56,094         47,704         47,535   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Noninterest income:

            

Service charges and fees

     806        826        823         778         757   

Loan and other fees

     2,014        2,425        1,783         1,906         2,497   

Bank-owned life insurance income

     1,285        1,315        1,101         1,097         1,097   

FDIC loss share indemnification loss

     —          —          —           —           (65,529

Income from resolution of acquired assets

     680        1,110        2,225         2,898         3,372   

Gain (loss) on sales of other real estate owned

     (110     709        228         5,605         1,565   

Gain (loss) on investment securities

     (54     (28     166         761         1,007   

Other noninterest income

     813        1,186        746         1,107         1,145   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total noninterest income

     5,434        7,543        7,072         14,152         (54,089
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Noninterest expense:

            

Salaries and employee benefits

     18,645        17,750        16,840         17,856         16,575   

Occupancy and equipment expenses

     3,572        3,946        3,368         3,806         3,277   

Loan and other real estate related expenses

     1,820        2,300        1,939         1,425         2,076   

Professional services

     1,337        1,651        1,166         1,189         1,406   

Data processing and network

     2,863        2,719        2,433         2,801         2,718   

Regulatory assessments and insurance

     2,117        2,066        1,919         2,092         2,119   

Amortization of intangibles

     379        400        400         407         424   

Other operating expenses

     2,567        2,369        2,641         2,471         2,055   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total noninterest expense

     33,300        33,201        30,706         32,047         30,650   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Income (loss) before income tax expense (benefit)

     35,136        33,982        32,460         29,809         (37,204

Income tax expense (benefit)

     12,684        4,233        11,320         10,433         (20,330
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net income (loss)

   $ 22,452      $ 29,749      $ 21,140       $ 19,376       $ (16,874
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Earnings (loss) per share:

            

Basic

   $ 0.55      $ 0.73      $ 0.51       $ 0.47       $ (0.41

Diluted

   $ 0.52      $ 0.68      $ 0.48       $ 0.45       $ (0.41

Weighted average shares outstanding:

            

Basic

     40,698,866        40,976,006        41,381,482         41,428,588         41,421,854   

Diluted

     42,840,157        43,643,408        43,798,378         43,106,131         41,421,854   

 

5


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

     March 31,
2016
    December 31,
2015
    September 30,
2015
    June 30,
2015
    March 31,
2015
 
     (Dollars in thousands)  

Assets:

          

Cash and due from banks

   $ 48,449      $ 44,696      $ 38,045      $ 32,161      $ 46,043   

Interest-earning deposits in other banks

     77,624        57,764        46,714        109,125        66,034   

Investment securities:

          

Available for sale securities, at fair value

     1,525,145        1,524,622        1,467,819        1,430,149        1,447,776   

Federal Home Loan Bank and other bank stock, at cost

     59,321        59,477        65,955        70,505        65,289   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment securities

     1,584,466        1,584,099        1,533,774        1,500,654        1,513,065   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans held for sale

     900        2,514        2,573        4,782        1,308   

Loans:

          

New loans

     5,108,538        4,610,763        4,158,997        3,807,547        3,354,452   

Acquired loans

     535,129        582,424        647,139        720,175        764,597   

Allowance for loan losses

     (31,995     (29,126     (27,394     (27,046     (24,513
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans, net

     5,611,672        5,164,061        4,778,742        4,500,676        4,094,536   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Premises and equipment, net

     36,686        36,954        37,351        37,641        38,291   

Other real estate owned

     43,522        39,340        40,405        42,654        75,017   

Goodwill and other intangible assets

     86,705        87,084        87,484        87,884        88,291   

Deferred tax assets, net

     74,420        75,176        78,090        76,720        69,656   

Bank-owned life insurance

     169,531        168,246        166,931        140,830        139,733   

Other assets

     102,149        71,552        78,580        74,071        85,109   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 7,836,124      $ 7,331,486      $ 6,888,689      $ 6,607,198      $ 6,217,083   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

          

Liabilities:

          

Deposits:

          

Transaction accounts:

          

Noninterest-bearing

   $ 737,875      $ 637,047      $ 618,741      $ 621,845      $ 595,389   

Interest-bearing

     3,276,896        2,935,418        2,678,410        2,586,491        2,411,142   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transaction accounts

     4,014,771        3,572,465        3,297,151        3,208,336        3,006,531   

Time deposits

     1,887,608        1,858,173        1,524,693        1,257,751        1,219,470   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     5,902,379        5,430,638        4,821,844        4,466,087        4,226,001   

Borrowings

     950,462        983,183        1,149,920        1,232,893        1,091,118   

Other liabilities

     93,984        41,556        61,047        50,739        53,130   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     6,946,825        6,455,377        6,032,811        5,749,719        5,370,249   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

          

Class A common stock

     39        39        39        37        37   

Class B common stock

     4        4        4        6        6   

Additional paid-in capital

     853,726        850,609        846,017        839,265        836,720   

Retained earnings

     110,987        88,535        58,786        37,646        18,270   

Accumulated other comprehensive income (loss)

     (8,240     (9,443     (2,905     78        10,552   

Treasury stock, at cost

     (67,217     (53,635     (46,063     (19,553     (18,751
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     889,299        876,109        855,878        857,479        846,834   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 7,836,124      $ 7,331,486      $ 6,888,689      $ 6,607,198      $ 6,217,083   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

6


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

     Three Months Ended  
     March 31,
2016
    December 31,
2015
    September 30,
2015
    June 30,
2015
    March 31,
2015
 

Performance Ratios

          

Interest rate spread

     3.49     3.56     3.49     3.28     3.42

Net interest margin

     3.65     3.69     3.62     3.43     3.58

Return on average assets

     1.19     1.66     1.26     1.22     -1.13

Return on average equity

     10.28     13.65     9.73     8.99     -7.97

Efficiency ratio (company level)

     47.11     47.19     47.47     49.19     -580.71

Average interest-earning assets to average interest bearing liabilities

     118.42     119.25     120.40     121.22     121.55

Loans receivable to deposits

     95.62     95.63     99.67     101.38     97.47

Yield on interest-earning assets

     4.24     4.21     4.12     3.88     4.00

Cost of interest-bearing liabilities

     0.75     0.65     0.63     0.60     0.58

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     0.33     0.35     0.36     0.39     0.40

Nonperforming assets to total assets

     0.79     0.79     0.84     0.91     1.47

ALL to nonperforming assets

     51.51     50.47     47.43     44.83     26.77

ALL to total gross loans

     0.57     0.56     0.57     0.60     0.60

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.02     0.03     0.01     0.00     0.00

New loan ALL to total gross new loans

     0.52     0.52     0.52     0.51     0.52

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     3.32     2.90     2.61     2.45     2.16

Acquired loan ALL to total gross acquired loans

     1.06     0.92     0.92     1.04     0.94

Capital Ratios (Company)

          

Average equity to average total assets

     11.6     12.1     13.0     13.5     14.2

Tangible average equity to tangible average assets

     10.6     11.0     11.8     12.3     12.9

Tangible common equity ratio (1)

     10.4     10.9     11.3     11.8     12.4

Tier 1 leverage ratio

     9.6     10.3     10.6     11.3     11.7

Tier 1 risk-based capital ratio

     11.1     12.1     12.6     13.3     14.1

Total risk-based capital ratio

     11.1     12.1     12.6     13.3     14.1

Capital Ratios (Bank)

          

Average equity to average total assets

     10.6     11.0     11.5     11.8     11.8

Tangible common equity ratio

     9.4     9.7     10.0     10.2     10.6

Tier 1 leverage ratio

     9.5     9.9     10.3     10.7     10.8

Tier 1 risk-based capital ratio

     11.1     11.6     12.2     13.0     13.4

Total risk-based capital ratio

     11.1     11.6     12.8     13.5     14.0

 

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

 

7


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)

 

     As of  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 
     (Dollars in thousands)  

New Loans:

              

Commercial real estate

   $ 1,067,594       $ 998,141       $ 991,451       $ 942,424       $ 903,629   

Owner-occupied commercial real estate

     558,659         524,728         452,991         400,438         325,972   

1-4 single family residential

     1,833,190         1,541,255         1,326,180         1,248,625         1,044,480   

Construction, land and development

     543,540         537,494         430,690         349,659         248,623   

Home equity loans and lines of credit

     34,973         30,945         28,185         22,798         20,459   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 4,037,956       $ 3,632,563       $ 3,229,497       $ 2,963,944       $ 2,543,163   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     1,064,873         972,803         925,285         837,270         805,233   

Consumer

     5,709         5,397         4,215         6,333         6,056   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total new loans

   $ 5,108,538       $ 4,610,763       $ 4,158,997       $ 3,807,547       $ 3,354,452   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

              

Commercial real estate

   $ 212,041       $ 247,628       $ 259,411       $ 286,337       $ 309,758   

1-4 single family residential

     40,061         40,922         69,915         76,849         77,685   

Construction, land and development

     27,973         28,017         32,996         55,453         56,403   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 280,075       $ 316,567       $ 362,322       $ 418,639       $ 443,846   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     33,413         36,783         46,233         58,045         63,441   

Consumer

     2,287         2,390         2,434         2,524         2,588   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

   $ 315,775       $ 355,740       $ 410,989       $ 479,208       $ 509,875   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

              

Commercial real estate

   $ 55,731       $ 55,985       $ 60,804       $ 62,473       $ 69,917   

Owner-occupied commercial real estate

     20,814         21,101         19,699         19,860         13,287   

1-4 single family residential

     80,199         84,111         86,832         86,754         97,450   

Construction, land and development

     6,338         6,338         6,319         8,610         9,801   

Home equity loans and lines of credit

     47,362         49,407         50,566         52,971         52,762   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 210,444       $ 216,942       $ 224,220       $ 230,668       $ 243,217   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     8,478         9,312         11,504         9,654         10,825   

Consumer

     432         430         426         645         680   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

     219,354         226,684         236,150         240,967         254,722   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

   $ 5,643,667       $ 5,193,187       $ 4,806,136       $ 4,527,722       $ 4,119,049   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

8


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

     As of  
     March 31,
2016
     December 31,
2015
     September 30,
2015
     June 30,
2015
     March 31,
2015
 
     (Dollars in thousands)  

Noninterest-bearing demand deposits

   $ 737,875       $ 637,047       $ 618,741       $ 621,845       $ 595,389   

Interest-bearing demand deposits

     647,824         608,454         404,085         288,990         196,192   

Interest-bearing NOW accounts

     441,476         347,832         350,602         414,795         439,400   

Savings and money market accounts

     2,187,596         1,979,132         1,923,723         1,882,706         1,775,550   

Time deposits

     1,887,608         1,858,173         1,524,693         1,257,751         1,219,470   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

   $ 5,902,379       $ 5,430,638       $ 4,821,844       $ 4,466,087       $ 4,226,001   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

9


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended March 31,     Three Months Ended December 31,  
     2016     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

   $ 86,711       $ 66         0.31   $ 142,637       $ 65         0.18

New loans

     4,856,809         42,712         3.48     4,314,707         37,230         3.38

Acquired loans (4)

     556,923         18,576         13.34     622,110         19,715         12.68

Investment securities

     1,576,617         14,374         3.61     1,575,963         14,147         3.51
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

     7,077,060         75,728         4.24     6,655,417         71,157         4.21
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     —                —           

Noninterest-earning assets

     477,018              467,682         
  

 

 

         

 

 

       

Total assets

   $ 7,554,078            $ 7,123,099         
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Interest-bearing demand deposits

   $ 635,500       $ 784         0.49   $ 567,610       $ 616         0.43

Interest-bearing NOW accounts

     391,158         372         0.38     319,586         284         0.35

Savings and money market accounts

     2,041,197         2,843         0.56     1,906,896         2,369         0.49

Time deposits

     1,901,109         5,294         1.12     1,680,997         4,450         1.05

FHLB advances and other borrowings

     1,007,239         1,993         0.78     1,105,878         1,469         0.52
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 5,976,203       $ 11,286         0.75   $ 5,580,967       $ 9,188         0.65
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

                

Noninterest-bearing demand deposits

   $ 646,442            $ 620,508         

Other liabilities

     55,374              56,970         

Stockholders’ equity

     876,059              864,654         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 7,554,078            $ 7,123,099         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 64,442            $ 61,969      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.49           3.56
        

 

 

         

 

 

 

Net interest margin

           3.65           3.69
        

 

 

         

 

 

 

 

(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.

 

10


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended March 31,  
     2016     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

   $ 86,711       $ 66         0.31   $ 78,344       $ 33         0.17

New loans

     4,856,809         42,712         3.48     3,179,879         26,585         3.34

Acquired loans (4)

     556,923         18,576         13.34     796,571         16,721         8.40

Investment securities

     1,576,617         14,374         3.61     1,483,886         12,110         3.26
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

     7,077,060         75,728         4.24     5,538,680         55,449         4.00
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     —                44,045         

Noninterest-earning assets

     477,018              456,245         
  

 

 

         

 

 

       

Total assets

   $ 7,554,078            $ 6,038,970         
  

 

 

         

 

 

       

Interest-bearing liabilities:

                

Interest-bearing demand deposits

   $ 635,500       $ 784         0.49   $ 141,879       $ 132         0.38

Interest-bearing NOW accounts

     391,158         372         0.38     392,318         336         0.35

Savings and money market accounts

     2,041,197         2,843         0.56     1,843,078         2,454         0.54

Time deposits

     1,901,109         5,294         1.12     1,146,475         2,663         0.94

FHLB advances and other borrowings

     1,007,239         1,993         0.78     1,032,908         980         0.38
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 5,976,203       $ 11,286         0.75   $ 4,556,658       $ 6,565         0.58
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

                

Noninterest-bearing demand deposits

   $ 646,442            $ 569,304         

Other liabilities

     55,374              53,997         

Stockholders’ equity

     876,059              859,011         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 7,554,078            $ 6,038,970         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 64,442            $ 48,884      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.49           3.42
        

 

 

         

 

 

 

Net interest margin

           3.65           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.

 

11


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Net Income

(Unaudited)

 

     Three Months Ended  
     March 31,
2016
    December 31,
2015
    September 30,
2015
    June 30,
2015
    March 31,
2015
 
     (Dollars in thousands)  

Net Income (loss)

   $ 22,452      $ 29,749      $ 21,140      $ 19,376      $ (16,874

Pre-tax Adjustments

          

Noninterest income

          

Less: Gain (loss) on investment securities

     (54     (28     166        761        1,007   

FDIC loss share indemnification loss

     —          —          —          —          (65,529

Noninterest expense

          

Salaries and employee benefits

     240        48        3        (17     185   

Occupancy and equipment

     103        512        —          —          —     

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

     7        88        20        203        64   

Taxes

          

Tax Effect of adjustments (1)

     (146     (7,897     50        186        (30,065
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

   $ 22,710      $ 22,528      $ 21,047      $ 19,031      $ 18,079   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

   $ 7,554,078      $ 7,123,099      $ 6,650,260      $ 6,325,073      $ 6,038,970   

ROA (2)

     1.19     1.66     1.26     1.23     -1.13

Core ROA (3)

     1.21     1.25     1.26     1.21     1.21

 

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items including $9.1 million release of deferred tax asset valuation reserve in Q4 2015. Core tax rate of 35% in 2015 and 36.1% in 2016.
(2) Return on assets: Annualized net income / average assets
(3) Core return on assets: Annualized core net income / average assets

 

12


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Efficiency Ratio

(Unaudited)

 

     Three Months Ended  
     March 31,
2016
    December 31,
2015
    September 30,
2015
    June 30,
2015
    March 31,
2015
 
     (Dollars in thousands)  

Reported: Net interest income

   $ 64,442      $ 61,969      $ 56,769      $ 50,174      $ 48,884   

FTE adjustment

     975        1,044        1,043        986        777   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

   $ 65,417      $ 63,013      $ 57,812      $ 51,160      $ 49,661   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest income

   $ 5,434      $ 7,543      $ 7,072      $ 14,152      $ (54,089

FTE adjustment

     822        841        704        701        702   

Less: Gain (loss) on investment securities

     (54     (28     166        761        1,007   

  FDIC loss share indemnification loss

     —          —          —          —          (65,529
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest income (loss)

   $ 6,310      $ 8,412      $ 7,610      $ 14,092      $ 11,135   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest expense

   $ 33,300      $ 33,201      $ 30,706      $ 32,047      $ 30,650   

Less:

          

Salaries and employee benefits

     240        48        3        (17     185   

Occupancy and equipment

     103        512        —          —          —     

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

     7        88        20        203        64   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest expense

   $ 32,950      $ 32,553      $ 30,683      $ 31,816      $ 30,154   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

     47.11     47.19     47.47     49.19     -580.71

Core efficiency ratio (2)

     45.41     45.02     46.29     48.14     48.90

 

(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)

 

13


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

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

(Unaudited)

 

     March 31,
2016
    December 31
2015
    September 30,
2015
    June 30,
2015
    March 31,
2015
 
     (Dollars in thousands, except share and per share data)  

Total assets

   $ 7,836,124      $ 7,331,486      $ 6,888,689      $ 6,607,198      $ 6,217,083   

Less:

          

Goodwill and other intangible assets

     86,705        87,084        87,484        87,884        88,291   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 7,749,419      $ 7,244,402      $ 6,801,205      $ 6,519,314      $ 6,128,792   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

   $ 889,299      $ 876,109      $ 855,878      $ 857,479      $ 846,834   

Less:

          

Goodwill and other intangible assets

     86,705        87,084        87,484        87,884        88,291   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholders’ equity

   $ 802,594      $ 789,025      $ 768,394      $ 769,595      $ 758,543   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

     40,595,787        40,860,453        40,984,200        41,423,199        41,443,031   

Tangible book value per share

   $ 19.77      $ 19.31      $ 18.75      $ 18.58      $ 18.30   

Average assets

   $ 7,554,078      $ 7,123,099      $ 6,650,260      $ 6,325,073      $ 6,038,970   

Average equity

     876,059        864,654        861,971        855,128        859,011   

Average goodwill and other intangible assets

     86,917        87,291        87,701        88,091        88,536   

Tangible average equity to tangible average assets

     10.6     11.0     11.8     12.3     12.9

Tangible common equity ratio

     10.4     10.9     11.3     11.8     12.4

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com

 

14