Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FCB FINANCIAL HOLDINGS, INC. | d886470d8k.htm |
| EX-10.24 - EX-10.24 - FCB FINANCIAL HOLDINGS, INC. | d886470dex1024.htm |
| EX-99.1 - EX-99.1 - FCB FINANCIAL HOLDINGS, INC. | d886470dex991.htm |
 FCB
Financial Holdings, Inc. Early Termination of FDIC Loss Sharing
Agreements Investor Presentation
Exhibit 99.2 |
 Forward Looking
Statements Safe Harbor Statement
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.
|
 Description
Transaction Summary
On March 4, 2015, FCB paid the FDIC $14.8mm to terminate all loss-sharing agreements
immediately Concludes contractual loss share terms covering six FDIC assisted
acquisitions from 2010 and 2011 Strategic
Rationale
Financially attractive transaction for both FCB and the FDIC
Marks completion of first stage of FCB's business plan
Provides additional strategic flexibility
Broadens alternatives regarding future asset resolution
Ability to realize full financial benefit of asset outperformance
Improved financial reporting transparency
Financial
Impact
Immediate and significant accretion to net income, EPS and ROE
IRR in excess of cost of capital
Modest dilution to tangible book value per share with attractive
3-year payback period
No changes to asset yields or embedded accretable and non-accretable discounts
1 |
 Net
Income, EPS and
Returns
Financial Impact
Immediate, significant benefits to net income, EPS and
return metrics
Components of benefit include elimination of LSIA
amortization (and potential impairments), reduced
administrative expenses, full benefit of recoveries
Capital
and
TBVPS
One-time after-tax charge reduces TCE by $40.3mm /
TBVPS by $0.97; earned back in ~ 3 years
Pro forma capital remains robust and well-positioned to
support our continued growth
Financial
Presentation
Improves transparency of financial reporting
Eliminates volatility of LSIA valuation
Ability for our reported figures to more closely reflect
current financial performance
2
Comments
Impact
Incremental Benefits¹
to:
NI ($mm)
EPS ($)
ROAE (%)
14-18
0.36-0.42
1.9-2.2
11-13
0.26-0.32
1.6-1.8
Eliminates
accounting
"noise"
related
to
FDIC
loss-share
treatment
LSIA and clawback eliminated from balance sheet
Concept of "covered" assets removed
Noninterest
income
will
be
much
simpler
going
forward
Reported
12/31/2014
Pro Forma
12/31/2014
13.0
12.4
17.0
15.1
18.43
17.46
1
Excludes impact of one-time charge of $40.3mm on net income
2015E
2016E
TCE/TA (%)
Tier 1 (%)
TBVPS ($)
IRR
comfortably
exceeds
cost
of
capital |
 Appendix |
 Core
Net Income Pro forma 2014 core net income, had the termination agreements been in place
as of January 1, 2014, would have been $48.0 million, an increase of 37.4%.
Pre-tax, the impact of FDIC Loss Sharing Agreements resulted in a cost of $21.4 million
in 2014. The above analysis excludes the other benefits from reduced administrative
expenses FY 2014 Pro Forma Core Net Income, non-GAAP
$'000s
Q1'14
Q2'14
Q3'14
Q4'14
FY 2014
Core Net Income, non-GAAP
5,113
7,377
9,813
12,599
34,902
Plus: FDIC Loss Share Indemnification Loss
4,992
5,247
5,862
5,324
21,425
Less: Tax Effect
(1,947)
(2,046)
(2,286)
(2,076)
(8,356)
Pro Forma Core Net Income, non-GAAP
8,158
10,578
13,389
15,847
47,971
Net Impact
3,045
3,201
3,576
3,248
13,069
% Impact
59.6%
43.4%
36.4%
25.8%
37.4%
4 |
 Assets
Previously Covered Under Loss Sharing Agreements Covered loans have declined to $273.4
million or 7% of the total loan portfolio as of December
31, 2014.
Substantial remaining discount and valuation allowance of $58.0 million provides protection
against any potential future losses.
5
Covered Assets
$'000s
Covered
Discount as
% of loans
Performing Loans
266,541
Substandard and non-accrual
64,784
Discount
(57,958)
-17%
Covered Loans
273,367
Covered OREO
25,130
Total Covered Assets
298,497
|