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8-K - FORM 8-K - FCB FINANCIAL HOLDINGS, INC.d773387d8k.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Reports Second Quarter Net Income of $9.2 Million, or $0.26 Per Diluted Share, Up 114% Year Over Year

 

    Total loan portfolio grew sequentially at an annualized rate of 44%;

 

    Record new loan fundings of $477 million during the quarter; up 89% sequentially and 75% year over year,

 

    Net Interest Income of $41.2 million, up 35% year over year;

 

    Efficiency ratio declined to 64.3%;

 

    ROA increased to 69 basis points; and

 

    Tangible book value per share increased to $18.11.

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported second quarter 2014 net income of $9.2 million, or $0.26 per diluted share, and core net income of $7.4 million, or $0.21 per diluted share. Net income rose 114% year over year and net income per diluted share rose 117%. Core net income rose 113% year over year and core net income per diluted share rose 133%. This resulted in a ROA of 69 basis points and a core ROA of 55 basis points, both of which reflect continued improvements on a sequential and year-over-year basis.

Core adjustments for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of FDIC equity appreciation agreements (“EAA”) expense. 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, is 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 very pleased with our strong financial momentum as we continue to grow into the scalable platform we have built. Our industry leading loan growth, core deposit momentum and strong asset quality are a result of consistent execution by our teammates throughout the bank.”

Loan Portfolio and Composition

The total loan portfolio, gross of the allowance for loan losses, grew by $326.8 million to $3.3 billion at June 30, 2014, an increase of 11% from $2.9 billion as of March 31, 2014 and 97% from $1.7 billion as of June 30, 2013.

Our new loan portfolio totaled $2.3 billion as of June 30, 2014, an increase of 19% from $1.9 billion as of March 31, 2014 and 112% from $1.1 billion as of June 30, 2013. Our loan growth during the quarter was a result of $477 million of new loan fundings, including $71 million of purchased residential mortgages which was partially offset by the sale of $23 million in new residential loans during the period. As of June 30, 2014 new loans made up 71% of our total loan portfolio as compared to 66% as of March 31, 2014 and June 30, 2013, respectively.

Our acquired loan portfolio totaled $957.3 million as of June 30, 2014, a decrease of 5% from $1.0 billion as of March 31, 2014 and an increase of 68% from $568.6 million as of June 30, 2013. The decrease in the current quarter was driven by resolutions totaling $36 million as well as scheduled loan amortization while the increase from June 30, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of June 30, 2014, acquired loans made up 29% of our total loan portfolio as compared to 34% as of March 31, 2014 and June 30, 2013, respectively.

Asset Quality

The provision for loan losses of $3.2 million recorded for the second quarter of 2014 includes a $3.3 million provision for new loans and ($0.1) million in recoupment due to better than expected performance in the acquired loan portfolio. Net new loan charge-offs for the second quarter of 2014 were $0.3 million. The provision for new


loans served to increase the related allowance to $12.4 million, or 0.54% of the $2.3 billion in new loans outstanding. Non-performing new loans (“NPL”) as a percentage of the new loan portfolio remained de minimis at 0.01% for new loan allowance to NPL coverage of 62.7 times.

Deposits and Borrowings

Deposits totaled $4.0 billion as of June 30, 2014, an increase of 6% from $3.7 billion as of March 31, 2014 and 61% from $2.5 billion as of June 30, 2013. The increase for the quarter was primarily driven by increased core deposits of $310.3 million offset by reduction in time deposits of $81.7 million. The cost of deposits remained flat at 62 basis points from the first quarter of 2014 and declined 16 basis points from the second quarter of 2013. Continued planned reduction of high cost legacy time deposits drove the improvement year over year. Core deposits include all checking, savings and money market accounts and now represent 64% of total deposits.

Net Interest Income and Net Interest Margin

Net interest income totaled $41.2 million in the second quarter of 2014, an increase of 7% from $38.3 million in the first quarter of 2014 and 35% from $30.5 million in the second quarter of 2013. Interest income increased to $48.5 million for the second quarter of 2014, an increase of 8% from $44.9 million in the first quarter of 2014 and 34% from $36.2 million in the second quarter of 2013. Interest income from new loans increased by $2.1 million from the first quarter of 2014 and $8.7 million from the second quarter of 2013 due to continued growth in the new loan portfolio. Additionally, interest income from acquired loans increased by $0.9 million from the first quarter of 2014 and $2.8 million from the second quarter of 2013 as the acquisition of GFB on January 31, 2014 offset average balance reductions attributable to loan resolution, prepayment and amortization. Interest expense increased to $7.3 million for the second quarter of 2014 from $6.6 million for the first quarter of 2014 and $5.7 million for the second quarter of 2013. The increase in interest expense was driven by growth of $302.4 million in average interest bearing deposits from March 31, 2014 and $1.3 billion from June 30, 2013.

The net interest margin for the second quarter of 2014 was 3.39%, a decline of 23 basis points sequentially and 49 basis points year over year. The decline over the first quarter reflects the growth and increasing mix of new loans at lower rates, as compared to the rate on our acquired loan portfolio and a decrease in yield on the securities portfolio from 2.64% to 2.44%.

Non-Interest Income and Non-Interest Expense

Non-interest income totaled $6.7 million in the second quarter of 2014, an increase of 163% from $2.5 million in the first quarter of 2014 and 83% from $3.7 million in the second quarter of 2013. Non-interest income during the second quarter of 2014 includes gain on investment sales, loan fees and negative indemnification asset amortization of $4.4 million, $2.6 million and ($5.9) million, respectively.

Non-interest expense totaled $30.7 million for the second quarter of 2014, a decrease of 11% from $34.5 million for the first quarter of 2014 and an increase of 12% from $27.5 million for the second quarter of 2013. The sequential decline was largely driven by the elimination of $4.8 million of non-core expenses associated with the GFB acquisition. Non-core expenses for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of EAA 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 12.0% and 16.5% for the second quarter of 2014 respectively, compared to 13.4% and 18.1% for the first quarter of 2014, respectively. Stockholders’ equity totaled $739.4 million as of June 30, 2014, an increase of 2% from $723.9 million as of March 31, 2014 driven by strong quarterly net income and an increase in other comprehensive income. Tangible book value per common share increased to $18.11 as of June 30, 2014 from $17.65 as of March 31, 2014.


Conference Call

The Company plans on hosting quarterly conference calls beginning with the third quarter 2014 earnings announcement.

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

Interest income:

          

Interest and fees on loans

   $ 37,833      $ 34,852      $ 30,474      $ 26,232      $ 26,297   

Interest and dividends on investment securities

     10,032        9,463        8,261        8,874        9,528   

Other interest income

     587        603        397        414        329   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     48,452        44,918        39,132        35,520        36,154   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense:

          

Interest on deposits

     5,833        5,309        4,695        4,886        4,644   

Interest on borrowings

     1,466        1,264        1,255        1,052        1,038   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

     7,299        6,573        5,950        5,938        5,682   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     41,153        38,345        33,182        29,582        30,472   

Provision for loan losses

     3,236        1,090        1,976        (631     473   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     37,917        37,255        31,206        30,213        29,999   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest income:

          

Service charges and fees

     707        738        693        610        554   

Loan and other fees

     2,569        716        1,560        1,356        1,436   

Bank-owned life insurance income

     1,038        818        257        —          —     

FDIC loss share indemnification loss

     (5,247     (4,992     (5,006     (5,009     (4,729

Income from resolution of acquired assets

     1,692        1,037        1,292        1,268        4,116   

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

     (378     432        194        50        (446

Gain on sales of investment securities

     4,448        2,495        3,480        2,106        1,710   

Other non-interest income

     1,861        1,304        1,125        622        1,019   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest income

     6,690        2,548        3,595        1,003        3,660   

Non-interest expense:

          

Salaries and employee benefits

     13,411        16,420        12,932        10,625        12,057   

Occupancy and equipment expenses

     3,777        3,433        2,447        2,413        2,571   

Other real estate and acquired assets resolution related expenses

     3,338        3,761        2,851        4,522        6,094   

Professional services

     1,352        1,832        1,621        1,278        1,498   

Data processing and network

     2,357        3,210        1,897        1,944        1,807   

Regulatory assessments and insurance

     1,920        1,774        1,445        1,402        1,278   

Amortization of intangibles

     443        416        367        368        380   

Other operating expenses

     4,146        3,620        2,508        1,706        1,770   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest expense

     30,744        34,466        26,068        24,258        27,455   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax provision expense

     13,863        5,337        8,733        6,958        6,204   

Income tax provision expense

     4,697        1,809        2,809        2,486        1,927   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 9,166      $ 3,528      $ 5,924      $ 4,472      $ 4,277   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

          

Basic

   $ 0.26      $ 0.10      $ 0.16      $ 0.12      $ 0.12   

Diluted

   $ 0.26      $ 0.10      $ 0.16      $ 0.12      $ 0.12   

Weighted average shares outstanding:

          

Basic

     35,892,154        35,892,154        36,756,073        37,011,598        37,011,598   

Diluted

     35,896,207        35,896,445        36,760,364        37,015,889        37,015,889   


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

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

Assets:

      

Cash and due from banks

   $ 29,976      $ 34,162      $ 28,819   

Interest-earning deposits in other banks

     100,634        53,535        210,398   

Investment securities:

      

Held to maturity securities

     —          369        365   

Available for sale securities, at fair value

     1,724,702        1,612,386        1,145,771   

Federal Home Loan Bank and other bank stock, at cost

     56,328        43,354        36,187   
  

 

 

   

 

 

   

 

 

 

Total investment securities

     1,781,030        1,656,109        1,182,323   
  

 

 

   

 

 

   

 

 

 

Loans held for sale

     1,492        —          —     

Loans:

      

New loans

     2,306,337        1,932,196        1,770,711   

Acquired loans

     957,315        1,006,166        488,073   

Allowance for loan losses

     (17,884     (15,494     (14,733
  

 

 

   

 

 

   

 

 

 

Loans, net

     3,245,768        2,922,868        2,244,051   

FDIC Loss share indemnification asset

     74,853        80,605        87,229   

Due from Federal Deposit Insurance Corporation (“FDIC”)

     969        1,938        3,659   

Premises and equipment, net

     42,122        43,533        40,941   

Other real estate owned

     80,988        86,244        34,682   

Goodwill and other intangible assets

     89,466        90,317        39,369   

Deferred tax assets, net

     35,439        39,183        5,828   

Bank owned life insurance

     117,113        116,075        75,257   

Other assets

     41,858        42,931        20,814   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 5,641,708      $ 5,167,500      $ 3,973,370   
  

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

      

Deposits:

      

Transaction accounts:

      

Non-interest bearing

   $ 435,055      $ 417,529      $ 291,658   

Interest bearing

     2,090,290        1,797,976        1,336,679   
  

 

 

   

 

 

   

 

 

 

Total transaction accounts

     2,525,345        2,215,505        1,628,337   

Time deposits

     1,432,921        1,514,164        1,165,196   
  

 

 

   

 

 

   

 

 

 

Total deposits

     3,958,266        3,729,669        2,793,533   

Total borrowings

     855,300        665,829        435,866   

Investment securities purchased not yet settled

     41,601        6,998        —     

Other liabilities

     47,093        41,135        27,857   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     4,902,260        4,443,631        3,257,256   
  

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

      

Class A common stock

     29        29        29   

Class B common stock

     8        8        8   

Additional paid-in capital

     724,519        724,067        723,631   

Retained earnings

     25,466        16,300        12,772   

Accumulated other comprehensive income (loss)

     8,177        2,216        (1,575

Treasury stock, at cost

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

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     739,448        723,869        716,114   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 5,641,708      $ 5,167,500      $ 3,973,370   
  

 

 

   

 

 

   

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

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

Performance Ratios

          

Interest rate spread

     3.26     3.45     3.55     3.31     3.60

Net interest margin

     3.39     3.62     3.76     3.54     3.88

Return on average assets

     0.69     0.30     0.62     0.49     0.50

Return on average equity

     5.02     1.98     3.21     2.43     2.33

Efficiency ratio (company level)

     64.26     84.28     70.88     79.31     80.44

Average interest-earning assets to average interest bearing liabilities

     117.15     118.86     128.09     130.25     132.32

Loans receivable to deposits

     82.45     78.78     80.86     72.59     67.14

Yield on interest-earning assets

     3.96     4.19     4.41     4.23     4.56

Cost of interest-bearing liabilities

     0.70     0.74     0.86     0.92     0.96

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     1.07     0.90     1.51     1.65     1.78

Nonperforming assets to total assets

     2.06     2.18     1.73     2.12     2.09

Covered loans to total gross loans

     10.00     11.47     15.90     20.56     25.87

ALL to nonperforming assets

     15.42     13.76     21.40     16.94     21.21

ALL to total gross loans

     0.55     0.53     0.65     0.71     0.95

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.01     0.00     0.06     0.00     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

     0.54     0.49     0.47     0.43     0.50

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     3.63     2.62     6.78     5.93     5.18

Covered acquired loans to total gross acquired loans

     34.11     33.51     73.60     73.82     75.32

Acquired loan ALL to total gross acquired loans

     0.57     0.60     1.32     1.42     1.82

Capital Ratios (Company)

          

Average equity to average total assets

     13.7     15.3     19.4     20.3     21.5

Tangible average equity to tangible average assets

     12.2     13.9     18.5     19.4     20.6

Tangible common equity ratio (1)

     11.7     12.5     17.2     19.2     19.6

Tier 1 leverage ratio

     12.0     13.4     18.0     19.3     20.2

Tier 1 risk-based capital ratio

     16.0     17.6     24.8     27.9     30.9

Total risk-based capital ratio

     16.5     18.1     25.3     28.5     31.6

Capital Ratios (Bank)

          

Average equity to average total assets

     11.9     12.3     12.5     13.0     13.8

Tangible common equity ratio

     10.4     10.5     11.5     11.8     12.1

Tier 1 leverage ratio

     10.8     11.2     12.0     11.9     12.4

Tier 1 risk-based capital ratio

     14.4     14.9     16.7     17.5     19.2

Total risk-based capital ratio

     14.9     15.4     17.3     18.0     20.0

 

(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,  
     2014      2014      2013      2013      2013  
     (Dollars in thousands)  

New Loans:

              

Commercial real estate (1) 

   $ 892,999       $ 735,432       $ 669,711       $ 475,514       $ 395,497   

1-4 single family residential

     523,987         384,076         359,818         164,022         103,407   

Construction, land and development

     123,169         79,215         75,666         63,455         55,688   

Home equity loans and lines of credit

     9,631         22,559         19,303         13,466         1,654   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 1,549,786       $ 1,221,282       $ 1,124,498       $ 716,457       $ 556,246   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     753,984         709,506         645,037         612,555         526,105   

Consumer

     2,567         1,408         1,176         7,880         4,729   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total New loans

   $ 2,306,337       $ 1,932,196       $ 1,770,711       $ 1,336,892       $ 1,087,080   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

              

Commercial real estate

   $ 413,154       $ 426,940       $ 274,147       $ 290,476       $ 306,181   

1-4 single family residential

     98,802         103,776         56,745         58,039         60,861   

Construction, land and development

     76,210         82,833         55,936         60,429         88,389   

Home equity loans and lines of credit

     —           —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 588,166       $ 613,549       $ 386,828       $ 408,944       $ 455,431   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     81,444         85,360         57,047         60,085         64,235   

Consumer

     3,345         3,674         3,992         4,317         4,636   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

   $ 672,955       $ 702,583       $ 447,867       $ 473,346       $ 524,302   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

              

Commercial real estate

   $ 90,661       $ 97,440       $ 12,705       $ 12,734       $ 12,528   

1-4 single family residential

     111,056         100,450         10,174         11,618         10,436   

Construction, land and development

     8,077         8,061         —           —           1,078   

Home equity loans and lines of credit

     56,926         65,340         11,998         11,891         13,487   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

   $ 266,720       $ 271,291       $ 34,877       $ 36,243       $ 37,529   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

     16,519         30,831         5,040         6,083         6,501   

Consumer

     1,121         1,461         289         303         304   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

     284,360         303,583         40,206         42,629         44,334   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Loans

   $ 3,263,652       $ 2,938,362       $ 2,258,784       $ 1,852,867       $ 1,655,716   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Owner Occupied Commercial Real Estate in the new loan portfolio is $230.5 MM, $166.0 MM, $155.0 MM, $113.9 MM and $109.7 MM, respectively.


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

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

Non-interest bearing demand deposits

   $ 435,055       $ 417,529       $ 291,658       $ 282,487       $ 273,619   

Interest-bearing demand deposits

     120,197         103,063         84,837         70,617         75,162   

Savings and money market accounts

     1,970,093         1,694,913         1,251,842         1,031,726         996,848   

Time deposits

     1,432,921         1,514,164         1,165,196         1,167,677         1,120,345   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

   $ 3,958,266       $ 3,729,669       $ 2,793,533       $ 2,552,507       $ 2,465,974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended June 30,     Three Months Ended March 31,  
     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 & equivalents

   $ 97,493       $ 53         0.22   $ 126,136       $ 67         0.22

New loans

     2,087,601         18,475         3.50     1,814,109         16,381         3.61

Acquired loans

     967,986         19,358         8.00     834,093         18,471         8.86

Investment securities and other

     1,710,662         10,566         2.44     1,517,598         9,999         2.64
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest earning assets

     4,863,742         48,452         3.96     4,291,936         44,918         4.19
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     78,916              85,998         

Non-interest earning assets

     411,602              347,185         
  

 

 

         

 

 

       

Total assets

   $ 5,354,260            $ 4,725,119         
  

 

 

         

 

 

       

Interest bearing liabilities:

                

Interest bearing transaction accounts

   $ 112,752       $ 43         0.15   $ 99,470       $ 36         0.15

Savings and money market accounts

     1,787,574         2,564         0.58     1,552,067         1,883         0.49

Time deposits

     1,464,728         3,226         0.88     1,411,109         3,390         0.97

FHLB advances and other borrowings

     786,513         1,466         0.74     548,267         1,264         0.92
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 4,151,567       $ 7,299         0.70   $ 3,610,913       $ 6,573         0.74
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest bearing liabilities and shareholders’ equity:

                

Non-interest bearing demand deposits

   $ 420,420            $ 353,023         

Other liabilities

     49,896              38,962         

Stockholders’ equity

     732,377              722,221         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,354,260            $ 4,725,119         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 41,153            $ 38,345      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.26           3.45
        

 

 

         

 

 

 

Net interest margin

           3.39           3.62
        

 

 

         

 

 

 

 

(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 June 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 & equivalents

   $ 97,493       $ 53         0.22   $ 95,730       $ 40         0.17

New loans

     2,087,601         18,475         3.50     982,080         9,748         3.93

Acquired loans

     967,986         19,358         8.00     569,623         16,549         11.62

Investment securities and other

     1,710,662         10,566         2.44     1,502,313         9,817         2.58
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest earning assets

     4,863,742         48,452         3.96     3,149,746         36,154         4.56
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     78,916              110,615         

Non-interest earning assets

     411,602              164,961         
  

 

 

         

 

 

       

Total assets

   $ 5,354,260            $ 3,425,322         
  

 

 

         

 

 

       

Interest bearing liabilities:

                

Interest bearing transaction accounts

   $ 112,752       $ 43         0.15   $ 69,137       $ 17         0.10

Savings and money market accounts

     1,787,574         2,564         0.58     940,687         1,179         0.50

Time deposits

     1,464,728         3,226         0.88     1,098,457         3,448         1.26

FHLB advances and other borrowings

     786,513         1,466         0.74     272,050         1,038         1.51
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 4,151,567       $ 7,299         0.70   $ 2,380,331       $ 5,682         0.96
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest bearing liabilities and shareholders’ equity:

                

Non-interest bearing demand deposits

   $ 420,420            $ 267,078         

Other liabilities

     49,896              41,825         

Stockholders’ equity

     732,377              736,088         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,354,260            $ 3,425,322         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 41,153            $ 30,472      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.26           3.60
        

 

 

         

 

 

 

Net interest margin

           3.39           3.88
        

 

 

         

 

 

 

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Year to Date Average Balances and Yields

(Unaudited)

 

     Six Months Ended June 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 & equivalents

   $ 111,736       $ 121         0.22   $ 75,791       $ 70         0.19

New loans

     1,951,611         34,856         3.55     886,459         17,847         4.00

Acquired loans

     901,409         37,829         8.39     585,063         33,968         11.61

Investment securities and other

     1,614,663         20,564         2.53     1,495,056         18,726         2.49
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest earning assets

     4,579,419         93,370         4.06     3,042,369         70,611         4.63
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

                

FDIC loss share indemnification asset

     82,437              116,389         

Non-interest earning assets

     379,571              157,013         
  

 

 

         

 

 

       

Total assets

   $ 5,041,427            $ 3,315,771         
  

 

 

         

 

 

       

Interest bearing liabilities:

                

Interest bearing transaction accounts

   $ 106,148       $ 79         0.15   $ 68,149       $ 32         0.10

Savings and money market accounts

     1,670,470         4,447         0.54     872,543         2,059         0.48

Time deposits

     1,438,067         6,616         0.93     1,075,858         6,865         1.29

FHLB advances and other borrowings

     668,048         2,730         0.81     277,781         2,096         1.50
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

   $ 3,882,733       $ 13,872         0.72   $ 2,294,331       $ 11,052         0.97
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-interest bearing liabilities and shareholders’ equity:

                

Non-interest bearing demand deposits

   $ 386,908            $ 247,029         

Other liabilities

     44,459              40,920         

Stockholders’ equity

     727,327              733,491         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 5,041,427            $ 3,315,771         
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

      $ 79,498            $ 59,559      
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

           3.34           3.66
        

 

 

         

 

 

 

Net interest margin

           3.50           3.95
        

 

 

         

 

 

 

 

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

Net Income

   $ 9,166      $ 3,528      $ 5,924      $ 4,472      $ 4,277   

Pre-tax Adjustments

          

Non-interest income

          

Less: Gain on sales of investment securities

     4,448        2,495        3,480        2,106        1,710   

Non-interest expense

          

Salaries and employee benefits

     —          2,220        65        232        91   

Occupancy and equipment

     225        —          —          —          —     

OREO & acquired assets resolution related expense

     —          135        —          —          —     

Professional services

     —          379        347        64        158   

Data processing and network fees

     —          893        125        —          116   

Regulatory assessments and insurance

     —          —          —          —          —     

Other operating expenses

     1,290        1,467        40        137        11   

Taxes

          

Tax Effect of adjustments (1)

     1,144        (1,014     1,132        652        520   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

   $ 7,377      $ 5,113      $ 4,153      $ 3,451      $ 3,463   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

   $ 5,354,260      $ 4,725,119      $ 3,781,231      $ 3,590,388      $ 3,425,322   

ROA (2)

     0.69     0.30     0.62     0.49     0.50

Core ROA (3)

     0.55     0.44     0.44     0.38     0.41

 

(1) Tax effected at marginal income tax rate of 39%
(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,     March 31,     December 31,     September 30,     June 30,  
     2014     2014     2013     2013     2013  
     (Dollars in thousands)  

Reported: Net interest income

   $ 41,153      $ 38,345      $ 33,182      $ 29,582      $ 30,472   

FTE adjustment

     487        492        556        547        719   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

   $ 41,640      $ 38,837      $ 33,738      $ 30,129      $ 31,191   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Non-interest income

   $ 6,690      $ 2,548      $ 3,595      $ 1,003      $ 3,660   

FTE adjustment

     664        523        164        —          —     

Less: Gain on sales of investment securities

     4,448        2,495        3,480        2,106        1,710   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core non-interest income

   $ 2,906      $ 576      $ 279      $ (1,103   $ 1,950   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Non-interest expense

   $ 30,744      $ 34,466      $ 26,068      $ 24,258      $ 27,455   

Less:

          

Salaries and employee benefits

     —          2,220        65        232        91   

Occupancy and equipment

     225        —          —          —          —     

OREO & acquired assets resolution related exp

     —          135        —          —          —     

Professional services

     —          379        347        64        158   

Data processing and network fees

     —          893        125        —          116   

Regulatory assessments and insurance

     —          —          —          —          —     

Other operating expenses

     1,290        1,467        40        137        11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core non-interest expense

   $ 29,229      $ 29,372      $ 25,491      $ 23,825      $ 27,079   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

     64.26     84.28     70.88     79.31     80.44

Core efficiency ratio (2)

     65.62     74.52     74.94     82.08     81.71

 

(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)

 

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

Total assets

   $ 5,641,708      $ 5,167,500      $ 3,973,370      $ 3,638,095      $ 3,554,590   

Less:

          

Goodwill and other intangible assets

     89,466        90,317        39,369        39,736        40,104   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 5,552,242      $ 5,077,183      $ 3,934,001      $ 3,598,359      $ 3,514,486   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholder’s equity

   $ 739,448      $ 723,869      $ 716,114      $ 729,253      $ 729,908   

Less:

          

Goodwill and other intangible assets

     89,466        90,317        39,369        39,736        40,104   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholder’s equity

   $ 649,982      $ 633,552      $ 676,745      $ 689,517      $ 689,804   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

     35,892,154        35,892,154        35,892,154        37,011,598        37,011,598   

Tangible book value per share

   $ 18.11      $ 17.65      $ 18.85      $ 18.63      $ 18.64   

Average assets

   $ 5,354,260      $ 4,725,119      $ 3,781,231      $ 3,590,388      $ 3,425,322   

Average equity

     732,377        722,221        732,824        728,693        736,088   

Average goodwill and other intangible assets

     90,431        73,427        39,521        39,908        40,248   

Tangible average equity to tangible average assets

     12.2     13.9     18.5     19.4     20.6

Tangible common equity ratio

     11.7     12.5     17.2     19.2     19.6

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com