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8-K - 8-K - FCB FINANCIAL HOLDINGS, INC.d863485d8k.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Reports Record Fourth Quarter Net Income of $13.1 Million, or $0.31 Per Diluted Share, Up 121% Year-Over-Year

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported fourth quarter 2014 net income of $13.1 million, or $0.31 per diluted share, and core net income of $12.6 million, or $0.30 per diluted share. Net income rose 121% year-over-year and net income per diluted share rose 93%. Core net income rose 203% year-over-year and core net income per diluted share rose 164%. This resulted in a ROA of 87 basis points and a core ROA of 84 basis points, both of which reflect continued improvements on a sequential and year-over-year basis.

 

    Net interest income of $49.8 million, up 50% year-over-year;

 

    Total loan portfolio grew sequentially at an annualized rate of 41%;

 

    New loan fundings of $477 million during the quarter;

 

    Demand deposits grew to 18% of total deposits during the quarter;

 

    Core efficiency ratio declined to 57.9%, down from 61.5% in the third quarter of 2014;

 

    Core ROA increased to 84 basis points, up from 68 basis points in the third quarter of 2014; and

 

    Tangible book value per share increased to $18.43.

Core adjustments for the fourth quarter of 2014 included $2.4 million of gain on investment securities. 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. 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 record fourth quarter operating results providing a strong finish to a successful 2014. 2014 was a year filled with Company milestones, these include: improving and record core net income every quarter, originating $1.3 billion in new loans, progress in transforming our deposit base from 10% to 18% demand deposits, closing and integrating a $1 billion acquisition and successfully completing our IPO. We are excited about the Company’s outlook as we look to continue that momentum into 2015.”

Loan Portfolio and Composition

During the quarter the total loan portfolio, gross of the allowance for loan losses, grew by $369.8 million to $3.9 billion at December 31, 2014, an increase of 10% from $3.6 billion as of September 30, 2014 and 74% from $2.3 billion as of December 31, 2013.

Our new loan portfolio totaled $3.1 billion as of December 31, 2014, an increase of 16% from $2.7 billion as of September 30, 2014 and 75% from $1.8 billion as of December 31, 2013. Our loan growth during the quarter was a result of $477 million of new loan fundings, consisting of $339 million of organic production and $138 million of purchased residential mortgages. As of December 31, 2014 new loans made up 79% of our total loan portfolio as compared to 75% and 78% as of September 30, 2014 and December 31, 2013, respectively.

Our acquired loan portfolio totaled $826.2 million as of December 31, 2014, a decrease of 5% from $873.8 million as of September 30, 2014 and an increase of 69% from $488.1 million as of December 31, 2013. The decrease in the current quarter was driven by resolutions totaling $39.0 million as well as scheduled loan amortization while the increase from December 31, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of December 31, 2014, acquired loans made up 21% of our total loan portfolio as compared to 25% and 22% as of September 30, 2014 and December 31, 2013, respectively.


Asset Quality

The provision for loan losses of $3.1 million recorded for the fourth quarter of 2014 includes a $1.9 million provision for new loans and a $1.2 million provision for the acquired loan portfolio. There were no new loan portfolio charge-offs in the fourth quarter of 2014. The provision for new loans served to increase the related allowance to $16.0 million, or 0.52% of the $3.1 billion in new loans outstanding. New loan portfolio nonperforming loans were 0.0% of total new loans as of December 31, 2014.

Deposits and Borrowings

Deposits totaled $3.98 billion as of December 31, 2014, in line with deposits of $3.99 billion as of September 30, 2014 and an increase of 42% from $2.79 billion as of December 31, 2013. During the fourth quarter of 2014, noninterest-bearing deposits increased by $67.9 million, or 13%, and overall transaction accounts increased by $155.3 million, or 6%. This increase was offset by a $168.1 million reduction in higher priced time deposits. Transaction accounts represent 73% of total deposits as of December 31, 2014 as compared to 69% and 58% as of September 30, 2014 and December 31, 2013, respectively. The cost of deposits improved to 56 basis points for the quarter, representing a 6 basis point decline from the third quarter of 2014 and a 16 basis point decline from the fourth quarter of 2013. Continued growth in demand deposits drove the improvements sequentially and year-over-year. Contractual cost of deposits, excluding time deposit premium amortization in conjunction with the GFB acquisition, declined to 56 basis points in the fourth quarter of 2014 from 62 basis points and 69 basis points in the third quarter of 2014 and the fourth quarter of 2013, respectively.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2014 was 3.62%, an increase of 13 basis points sequentially and a decline of 14 basis points year-over-year. The increase over the third quarter is due to a 3 basis point increase to yield on earning assets and an 11 basis point reduction in cost of funds.

Net interest income totaled $49.8 million in the fourth quarter of 2014, an increase of 8% from $45.9 million in the third quarter of 2014 and 50% from $33.2 million in the fourth quarter of 2013. Interest income increased to $56.4 million for the fourth quarter of 2014, an increase of 5% from $53.7 million in the third quarter of 2014 and 44% from $39.1 million in the fourth quarter of 2013. Interest income from new loans increased by $2.8 million, or 13%, from the third quarter of 2014 due to continued growth in the new loan portfolio. Additionally, interest income on investment securities totaled $12.5 million in the fourth quarter of 2014, an increase of $0.9 million from the third quarter of 2014, due to a 42 basis point increase in yield partially offset by a reduction in average investments of $138.8 million. Lower yielding investments were sold during the fourth quarter to redeploy the funds in higher yielding new loans. Interest expense decreased to $6.6 million for the fourth quarter of 2014 from $7.8 million for the third quarter of 2014 and increased from $6.0 million for the fourth quarter of 2013. The decrease in interest expense was driven by the lower cost of deposits and borrowings.

Noninterest Income and Noninterest Expense

Noninterest income totaled $5.4 million in the fourth quarter of 2014, an increase of $3.1 million from the third quarter of 2014 and an increase of $1.8 million from the fourth quarter of 2013. The increase from the third quarter of 2014 is primarily driven by an increase in loan and other fee income, income from acquired loans and OREO and insurance settlements. Noninterest income during the fourth quarter of 2014 includes gain on investment securities, loan and other fees and indemnification asset amortization of $2.4 million, $2.3 million and ($7.3) million, respectively.

Noninterest expense totaled $31.5 million for the fourth quarter of 2014, a decrease of $17.5 million from the third quarter of 2014 and an increase of $5.4 million from the fourth quarter of 2013. The decrease from prior quarter was primarily driven by non-core IPO related expenses of $19.3 million in the third quarter of 2014.


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 13.0%, 12.8% and 18.3% for the fourth quarter of 2014 respectively, compared to 12.5%, 13.1% and 17.7% for the third quarter of 2014, respectively. Stockholders’ equity totaled $851.7 million as of December 31, 2014, an increase of 2% from $835.7 million as of September 30, 2014 primarily driven by net income of $13.1 million. Tangible book value per common share is $18.43 as of December 31, 2014.

Conference Call

The Company will host a conference call today, Thursday, January 29, 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 March 1, 2015, by dialing (877) 344-7529 and entering pass code 10059016.

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

Forward-Looking Statements

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

Use of Non-GAAP Financial Measures

Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP financial measures used in this release. A reconciliation to what we believe to be the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total net interest income, total 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 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 52 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  
     December 31,
2014
    September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
 
     (Dollars in thousands, except share and per share data)  

Interest income:

  

       

Interest and fees on loans

   $ 43,900      $ 42,085      $ 37,833      $ 34,852      $ 30,474   

Interest and dividends on investment securities

     12,451        11,530        10,566        9,998        8,609   

Other interest income

     53        37        53        68        49   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

  56,404      53,652      48,452      44,918      39,132   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense:

Interest on deposits

  5,492      6,124      5,833      5,309      4,695   

Interest on borrowings

  1,133      1,633      1,466      1,264      1,256   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

  6,625      7,757      7,299      6,573      5,951   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

  49,779      45,895      41,153      38,345      33,181   

Provision for loan losses

  3,112      2,805      3,236      1,090      1,976   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

  46,667      43,090      37,917      37,255      31,205   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest income:

Service charges and fees

  780      738      707      738      693   

Loan and other fees

  2,270      1,238      2,569      716      1,560   

Bank-owned life insurance income

  1,168      1,151      1,038      818      257   

FDIC loss share indemnification loss

  (5,324   (5,862   (5,247   (4,992   (5,005

Income from resolution of acquired assets

  1,061      1,109      1,692      1,037      1,292   

Gain (loss) on sales of other real estate owned

  200      (128   (359   431      194   

Gain on investment securities

  2,377      2,785      4,448      2,495      3,480   

Other noninterest income

  2,912      1,319      1,842      1,305      1,124   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

  5,444      2,350      6,690      2,548      3,595   

Noninterest expense:

Salaries and employee benefits

  14,885      28,525      13,411      16,420      12,932   

Occupancy and equipment expenses

  3,248      3,606      3,777      3,433      2,448   

Loan and other real estate related expenses

  4,566      3,203      3,338      3,761      2,849   

Professional services

  1,242      1,203      1,352      1,832      1,621   

Data processing and network

  2,639      2,538      2,357      3,210      1,897   

Regulatory assessments and insurance

  1,679      2,466      1,920      1,774      1,445   

Amortization of intangibles

  425      426      443      416      367   

Other operating expenses

  2,779      6,992      4,146      3,620      2,507   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

  31,463      48,959      30,744      34,466      26,066   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax provision expense

  20,648      (3,519   13,863      5,337      8,734   

Income tax provision expense (benefit)

  7,548      (97   4,697      1,809      2,809   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ 13,100    $ (3,422 $ 9,166    $ 3,528    $ 5,925   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

Basic

$ 0.32    $ (0.09 $ 0.26    $ 0.10    $ 0.16   

Diluted

$ 0.31    $ (0.09 $ 0.26    $ 0.10    $ 0.16   

Weighted average shares outstanding:

Basic

  41,409,698      38,952,127      35,892,154      35,892,154      36,756,073   

Diluted

  42,154,781      38,952,127      35,896,207      35,896,445      36,760,364   


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

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

Assets:

      

Cash and due from banks

   $ 25,397      $ 28,288      $ 28,819   

Interest-earning deposits in other banks

     81,688        112,342        210,398   

Investment securities:

      

Held to maturity securities

     —          —          365   

Available for sale securities, at fair value

     1,359,098        1,771,321        1,145,771   

Federal Home Loan Bank and other bank stock, at cost

     66,891        71,217        36,187   
  

 

 

   

 

 

   

 

 

 

Total investment securities

  1,425,989      1,842,538      1,182,323   
  

 

 

   

 

 

   

 

 

 

Loans held for sale

  707      108      —     

Loans:

New loans

  3,103,417      2,686,043      1,770,711   

Acquired loans

  826,173      873,761      488,073   

Allowance for loan losses

  (22,880   (20,440   (14,733
  

 

 

   

 

 

   

 

 

 

Loans, net

  3,906,710      3,539,364      2,244,051   

FDIC Loss share indemnification asset

  63,168      69,920      87,229   

Due from Federal Deposit Insurance Corporation (“FDIC”)

  1,735      104      3,659   

Premises and equipment, net

  38,962      39,256      40,992   

Other real estate owned

  74,527      78,512      34,682   

Goodwill and other intangible assets

  88,615      89,040      39,369   

Deferred tax assets, net

  40,148      41,257      5,828   

Bank owned life insurance

  139,829      138,264      75,257   

Other assets

  62,860      75,951      20,763   
  

 

 

   

 

 

   

 

 

 

Total assets

$ 5,950,335    $ 6,054,944    $ 3,973,370   
  

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

Deposits:

Transaction accounts:

Noninterest-bearing

$ 593,025    $ 525,152    $ 291,658   

Interest-bearing

  2,308,657      2,221,250      1,336,679   
  

 

 

   

 

 

   

 

 

 

Total transaction accounts

  2,901,682      2,746,402      1,628,337   

Time deposits

  1,076,853      1,244,958      1,165,196   
  

 

 

   

 

 

   

 

 

 

Total deposits

  3,978,535      3,991,360      2,793,533   

Total borrowings

  1,067,981      1,164,404      435,866   

Other liabilities

  52,166      63,453      27,857   
  

 

 

   

 

 

   

 

 

 

Total liabilities

  5,098,682      5,219,217      3,257,256   
  

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

Class A common stock

  36      36      29   

Class B common stock

  7      7      8   

Additional paid-in capital

  834,538      833,478      723,631   

Retained earnings

  35,144      22,044      12,772   

Accumulated other comprehensive income (loss)

  679      (1,087   (1,575

Treasury stock, at cost

  (18,751   (18,751   (18,751
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

  851,653      835,727      716,114   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 5,950,335    $ 6,054,944    $ 3,973,370   
  

 

 

   

 

 

   

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

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

Performance Ratios

          

Interest rate spread

     3.49     3.36     3.26     3.45     3.55

Net interest margin

     3.62     3.49     3.39     3.62     3.76

Return on average assets

     0.87     -0.24     0.69     0.30     0.62

Return on average equity

     6.15     -1.70     5.02     1.98     3.21

Efficiency ratio (company level)

     56.97     101.48     64.26     84.28     70.88

Average interest-earning assets to average interest bearing liabilities

     119.64     118.11     117.15     118.86     128.09

Loans receivable to deposits

     98.77     89.19     82.45     78.78     80.86

Yield on interest-earning assets

     4.08     4.05     3.96     4.19     4.41

Cost of interest-bearing liabilities

     0.58     0.69     0.70     0.74     0.86

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     0.49     0.62     1.07     0.90     1.51

Nonperforming assets to total assets

     1.58     1.66     2.06     2.18     1.73

Covered loans to total gross loans

     6.96     8.05     10.00     11.47     15.90

ALL to nonperforming assets

     24.36     20.35     15.42     13.76     21.40

ALL to total gross loans

     0.58     0.57     0.55     0.53     0.65

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.00     0.00     0.01     0.00     0.06

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

     0.52     0.53     0.54     0.49     0.47

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     2.34     2.51     3.63     2.62     6.78

Covered acquired loans to total gross acquired loans

     33.09     32.78     34.11     33.51     73.60

Acquired loan ALL to total gross acquired loans

     0.83     0.72     0.57     0.60     1.32

Capital Ratios (Company)

          

Average equity to average total assets

     14.2     13.9     13.7     15.3     19.4

Tangible average equity to tangible average assets

     12.9     12.6     12.2     13.9     18.5

Tangible common equity ratio (1)

     13.0     12.5     11.7     12.5     17.2

Tier 1 leverage ratio

     12.8     13.1     12.0     13.4     18.0

Tier 1 risk-based capital ratio

     17.7     17.2     16.0     17.6     24.8

Total risk-based capital ratio

     18.3     17.7     16.5     18.1     25.3

Capital Ratios (Bank)

          

Average equity to average total assets

     11.7     11.8     11.9     12.3     12.5

Tangible common equity ratio

     10.4     10.1     10.4     10.5     11.5

Tier 1 leverage ratio

     10.4     10.6     10.8     11.2     12.0

Tier 1 risk-based capital ratio

     14.5     14.0     14.4     14.9     16.7

Total risk-based capital ratio

     15.0     14.6     14.9     15.4     17.3

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)

 

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

New Loans:

              

Commercial real estate

   $ 853,074       $ 721,676       $ 662,199       $ 569,094       $ 514,612   

Owner-occupied commercial real estate

     281,703         261,549         230,546         166,031         154,983   

1-4 single family residential

     922,657         734,608         523,987         384,076         359,818   

Construction, land and development

     232,601         160,899         123,169         79,215         75,666   

Home equity loans and lines of credit

     11,826         12,774         9,631         22,559         19,303   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 2,301,861    $ 1,891,756    $ 1,549,786    $ 1,221,282    $ 1,124,498   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  795,000      791,843      753,984      709,506      645,037   

Consumer

  6,556      2,444      2,567      1,408      1,176   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total new loans

$ 3,103,417    $ 2,686,043    $ 2,306,337    $ 1,932,196    $ 1,770,711   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

Commercial real estate

$ 336,935    $ 364,753    $ 413,154    $ 426,940    $ 274,147   

1-4 single family residential

  86,308      90,752      98,802      103,776      56,745   

Construction, land and development

  66,700      71,053      76,210      82,833      55,936   

Home equity loans and lines of credit

  —        —        —        —        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 489,943    $ 526,558    $ 588,166    $ 613,549    $ 386,828   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  67,498      72,948      81,444      85,360      57,047   

Consumer

  2,803      2,936      3,345      3,674      3,992   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

$ 560,244    $ 602,442    $ 672,955    $ 702,583    $ 447,867   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

Commercial real estate

$ 70,146    $ 68,578    $ 76,120    $ 83,026    $ 9,098   

Owner-occupied commercial real estate

  14,842      16,640      14,294      13,989      3,014   

1-4 single family residential

  102,279      105,561      111,056      100,450      10,174   

Construction, land and development

  9,729      9,744      8,077      8,061      —     

Home equity loans and lines of credit

  54,704      56,170      56,926      65,340      11,998   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 251,700    $ 256,693    $ 266,473    $ 270,866    $ 34,284   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  13,548      13,817      16,766      31,256      5,633   

Consumer

  681      809      1,121      1,461      289   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

  265,929      271,319      284,360      303,583      40,206   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

$ 3,929,590    $ 3,559,804    $ 3,263,652    $ 2,938,362    $ 2,258,784   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

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

Noninterest-bearing demand deposits

   $ 593,025       $ 525,152       $ 435,055       $ 417,525       $ 291,658   

Interest-bearing demand deposits

     122,380         —           —           —           —     

Interest-bearing NOW accounts

     374,399         526,013         120,197         103,063         84,837   

Savings and money market accounts

     1,811,878         1,695,237         1,970,093         1,694,913         1,251,842   

Time deposits

     1,076,853         1,244,958         1,432,921         1,514,168         1,165,196   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

$ 3,978,535    $ 3,991,360    $ 3,958,266    $ 3,729,669    $ 2,793,533   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended December 31,     Three Months Ended September 30,  
     2014     2014  
     Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
    Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 103,597       $ 53         0.20   $ 76,682       $ 37         0.19

New loans

     2,844,186         24,631         3.39     2,440,992         21,866         3.51

Acquired loans

     847,438         19,269         9.10     903,941         20,219         8.95

Investment securities and other

     1,662,139         12,451         2.93     1,800,988         11,530         2.51
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,457,360      56,404      4.08   5,222,603      53,652      4.05
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  67,521      75,191   

Noninterest-earning assets

  428,744      440,293   
  

 

 

         

 

 

       

Total assets

$ 5,953,625    $ 5,738,087   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 103,062    $ 53      0.20 $ —      $ —        0.00

Interest-bearing NOW accounts

  370,777      323      0.34   396,361      347      0.35

Savings and money market accounts

  1,770,403      2,608      0.58   1,721,444      2,790      0.64

Time deposits

  1,120,326      2,508      0.89   1,358,610      2,987      0.87

FHLB advances and other borrowings

  1,196,942      1,133      0.37   945,519      1,633      0.68
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,561,510    $ 6,625      0.58 $ 4,421,934    $ 7,757      0.69
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 499,058    $ 459,189   

Other liabilities

  48,485      57,797   

Stockholders’ equity

  844,572      799,167   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 5,953,625    $ 5,738,087   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 49,779    $ 45,895   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.49   3.36
        

 

 

         

 

 

 

Net interest margin

  3.62   3.49
        

 

 

         

 

 

 

 

(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 December 31,  
     2014     2013  
     Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
    Average
Balance
     Interest/
Expense
     Annualized
Yield/Rate (1)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 103,597       $ 53         0.20   $ 98,046       $ 49         0.20

New loans

     2,844,186         24,631         3.39     1,580,075         14,716         3.64

Acquired loans

     847,438         19,269         9.10     493,271         15,758         12.78

Investment securities and other

     1,662,139         12,451         2.93     1,328,920         8,609         2.53
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,457,360      56,404      4.08   3,500,312      39,132      4.41
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  67,521      94,504   

Noninterest-earning assets

  428,744      186,415   
  

 

 

         

 

 

       

Total assets

$ 5,953,625    $ 3,781,231   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 103,062    $ 53      0.20 $ —      $ —        0.00

Interest-bearing NOW accounts

  370,777      323      0.34   75,155      26      0.14

Savings and money market accounts

  1,770,403      2,608      0.58   1,063,875      1,150      0.43

Time deposits

  1,120,326      2,508      0.89   1,161,145      3,519      1.20

FHLB advances and other borrowings

  1,196,942      1,133      0.37   432,423      1,256      1.14
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,561,510    $ 6,625      0.58 $ 2,732,598    $ 5,951      0.86
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 499,058    $ 277,141   

Other liabilities

  48,485      38,668   

Stockholders’ equity

  844,572      732,824   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 5,953,625    $ 3,781,231   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 49,779    $ 33,181   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.49   3.55
        

 

 

         

 

 

 

Net interest margin

  3.62   3.76
        

 

 

         

 

 

 

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Average Balances and Yields

(Unaudited)

 

     Years Ended December 31,  
     2014     2013  
     Average
Balance
     Interest/
Expense
     Yield/Rate     Average
Balance
     Interest/
Expense
     Yield/Rate  
     (Dollars in thousands)  

Interest-earning assets:

                

Cash and cash equivalents

   $ 100,849       $ 211         0.21   $ 100,293       $ 224         0.22

New loans

     2,299,940         81,353         3.49     1,134,928         43,668         3.79

Acquired loans

     888,444         77,317         8.70     548,111         64,853         11.83

Investment securities and other

     1,673,594         44,545         2.63     1,443,957         36,518         2.49
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  4,962,827      203,426      4.06   3,227,289      145,263      4.47
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  76,851      107,153   

Noninterest-earning assets

  407,269      167,869   
  

 

 

         

 

 

       

Total assets

$ 5,446,947    $ 3,502,311   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 25,977    $ 53      0.20 $ —      $ —        0.00

Interest-bearing NOW accounts

  245,998      749      0.30   70,454      76      0.11

Savings and money market accounts

  1,708,507      9,845      0.58   961,986      4,425      0.46

Time deposits

  1,338,016      12,111      0.91   1,121,100      14,036      1.25

FHLB advances and other borrowings

  871,296      5,496      0.62   315,099      4,403      1.38
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,189,794    $ 28,254      0.68 $ 2,468,639    $ 22,940      0.93
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 433,330    $ 260,994   

Other liabilities

  48,836      40,564   

Stockholders’ equity

  774,987      732,114   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 5,446,947    $ 3,502,311   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 175,172    $ 122,323   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.38   3.54
        

 

 

         

 

 

 

Net interest margin

  3.53   3.79
        

 

 

         

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Net Income

(Unaudited)

 

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

Net Income (loss)

   $ 13,100      $ (3,422   $ 9,166      $ 3,528      $ 5,925   

Pre-tax Adjustments

          

Noninterest income

          

Less: Gain on investment securities

     2,377        2,785        4,448        2,495        3,480   

Noninterest expense

          

Salaries and employee benefits

     1        15,379        —          2,220        65   

Occupancy and equipment

     —          —          225        —          —     

Loan and other real estate related expenses

     —          —          —          135        —     

Professional services

     —          —          —          379        347   

Data processing and network fees

     —          —          —          893        125   

Regulatory assessments and insurance

     —          —          —          —          —     

Amortization of intangibles

     —          —          —          —          —     

Other operating expenses

     (7     4,895        1,290        1,467        40   

Taxes

          

Tax Effect of adjustments (1)

     1,881        (4,254     1,144        (1,014     1,132   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

$ 12,599    $ 9,813    $ 7,377    $ 5,113    $ 4,154   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

$ 5,953,625    $ 5,738,087    $ 5,354,260    $ 4,725,119    $ 3,781,231   

ROA (2)

  0.87   -0.24   0.69   0.30   0.62

Core ROA (3)

  0.84   0.68   0.55   0.44   0.44

 

(1) Tax effected at marginal income tax rate of 39% and except for non tax deductible items. Core tax rate of 32% in 2014.
(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  
     December 31,
2014
    September 30,
2014
    June 30,
2014
    March 31,
2014
    December 31,
2013
 
     (Dollars in thousands)  

Reported: Net interest income

   $ 49,779      $ 45,895      $ 41,153      $ 38,345      $ 33,181   

FTE adjustment

     711        475        487        492        556   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

$ 50,490    $ 46,370    $ 41,640    $ 38,837    $ 33,737   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest income

$ 5,444    $ 2,350    $ 6,690    $ 2,548    $ 3,595   

FTE adjustment

  747      736      664      523      164   

Less: Gain on investment securities

  2,377      2,785      4,448      2,495      3,480   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest income (loss)

$ 3,814    $ 301    $ 2,906    $ 576    $ 279   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest expense

$ 31,463    $ 48,959    $ 30,744    $ 34,466    $ 26,066   

Less:

Salaries and employee benefits

  1      15,379      —        2,220      65   

Occupancy and equipment

  —        —        225      —        —     

Loan and other real estate related expenses

  —        —        —        135      —     

Professional services

  —        —        —        379      347   

Data processing and network fees

  —        —        —        893      125   

Regulatory assessments and insurance

  —        —        —        —        —     

Amortization of intangibles

  —        —        —        —        —     

Other operating expenses

  (7   4,895      1,290      1,467      40   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest expense

$ 31,468    $ 28,685    $ 29,229    $ 29,372    $ 25,489   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

  56.97   101.48   64.26   84.28   70.88

Core efficiency ratio (2)

  57.95   61.46   65.62   74.52   74.93

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

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

(Unaudited)

 

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

Total assets

   $ 5,950,335      $ 6,054,944      $ 5,641,708      $ 5,167,500      $ 3,973,370   

Less:

          

Goodwill and other intangible assets

     88,615        89,040        89,466        90,317        39,369   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

$ 5,861,720    $ 5,965,904    $ 5,552,242    $ 5,077,183    $ 3,934,001   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

$ 851,653    $ 835,727    $ 739,448    $ 723,869    $ 716,114   

Less:

Goodwill and other intangible assets

  88,615      89,040      89,466      90,317      39,369   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholders’ equity

$ 763,038    $ 746,687    $ 649,982    $ 633,552    $ 676,745   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

  41,409,698      41,409,698      35,892,154      35,892,154      35,892,154   

Tangible book value per share

$ 18.43    $ 18.03    $ 18.11    $ 17.65    $ 18.85   

Average assets

$ 5,953,625    $ 5,738,087    $ 5,354,260    $ 4,725,119    $ 3,781,231   

Average equity

  844,572      799,167      732,377      722,221      732,824   

Average goodwill and other intangible assets

  88,835      89,276      90,431      73,427      39,521   

Tangible average equity to tangible average assets

  12.9   12.6   12.2   13.9   18.5

Tangible common equity ratio

  13.0   12.5   11.7   12.5   17.2

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com