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8-K - 8-K - FCB FINANCIAL HOLDINGS, INC.d914342d8k.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Reports First Quarter 2015 Financial Results

Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported financial results for the first quarter of 2015. For the quarter ended March 31, 2015, after deducting the previously disclosed one-time pre-tax charge of $65.5 million in conjunction with the early termination of all loss share agreements, the Company reported a net loss of $16.9 million, or $0.41 per diluted share.

On a core net income basis, the Company had a record quarter. The Company reported core net income for the first quarter of 2015 of $18.1 million, or $0.43 per diluted share. Core net income rose 254% year-over-year and 43% sequentially. This resulted in a core ROA of 121 basis points which represents an increase of 177% year-over-year and 45% sequentially.

 

    Net interest income of $48.9 million, up 27% year-over-year;

 

    Total loan portfolio grew sequentially at an annualized rate of 20%;

 

    New loan fundings of $397 million during the quarter;

 

    Demand deposits grew to 19% of total deposits during the quarter;

 

    Core efficiency ratio improved to 48.9%, down from 57.9% in the fourth quarter of 2014;

 

    Core ROA increased to 121 basis points, up from 84 basis points in the fourth quarter of 2014;

 

    Tangible book value per share was $18.30;

 

    On March 4, 2015, Florida Community Bank, N.A. (the “Bank”), a wholly-owned subsidiary of the Company, entered into agreements with the Federal Deposit Insurance Corporation (the “FDIC”) which terminated all existing loss share agreements with the FDIC, and the Bank made a payment of $14.8 million to the FDIC as consideration for the early termination of the loss share agreements; and

 

    As a result of early termination of loss share agreements with the FDIC, the company recorded a one-time charge of approximately $40.3 million on a tax effected basis, or $65.5 million on a pre-tax basis.

The Company views certain non-recurring items, including but not limited to merger related and restructuring charges, gain/(loss) on investment securities and their corresponding tax effect, as core adjustments to net income. Core adjustments for the first quarter of 2015 included a $65.5 million one-time charge as a result of early termination of all loss share agreements with the FDIC, $5.0 million of deferred tax asset benefit due to better than expected performance of the Great Florida Bank (“GFB”) acquisition, $0.2 million in professional services expense related to the termination of FDIC loss share agreements, $0.2 million of severance expense, $0.1 million of other operating expenses and $1.0 million of gain on investment securities.

The reconciliation of non-GAAP measures (including core net income, core efficiency ratio, core ROA, tangible book value and tangible book value per share), which the Company believes facilitate the assessment of its banking operations and peer comparability, are included in tabular form at the end of this release.

Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “We are pleased by our record first quarter core operating results, having achieved a core ROA of 1.21% and core efficiency ratio of 48.9%. We are excited about our continued organic loan and deposit momentum as well as the strategic and financial benefits due to the early termination of our FDIC loss share agreements.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $189.5 million to $4.1 billion at March 31, 2015, an increase of 5% from $3.9 billion as of December 31, 2014 and 40% from $2.9 billion as of March 31, 2014.

Our new loan portfolio totaled $3.4 billion as of March 31, 2015, an increase of 8% from $3.1 billion as of December 31, 2014 and 74% from $1.9 billion as of March 31, 2014. Our loan growth during the quarter was a result of $397 million of new loan fundings, consisting of $308 million of organic production and $89 million of


purchased residential mortgages. Organic loan production for the quarter consisted of $112 million of commercial and industrial, $74 million of commercial real estate and $122 million of residential and consumer. As of March 31, 2015 new loans made up 81% of our total loan portfolio as compared to 79% and 66% as of December 31, 2014 and March 31, 2014, respectively.

Our acquired loan portfolio totaled $764.6 million as of March 31, 2015, a decrease of 7% from $826.2 million as of December 31, 2014 and a decrease of 24% from $1.0 billion as of March 31, 2014. The decrease in the current quarter was driven by resolutions totaling $35.7 million as well as scheduled loan amortization. As of March 31, 2015, acquired loans made up 19% of our total loan portfolio as compared to 21% and 34% as of December 31, 2014 and March 31, 2014, respectively.

Asset Quality

The provision for loan losses of $1.3 million recorded for the first quarter of 2015 includes a $1.3 million provision for new loans and a $73 thousand provision for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $17.3 million, or 0.52% of the $3.4 billion in new loans outstanding. There were no new loan portfolio charge-offs in the first quarter of 2015 and no nonperforming new loans in the portfolio as of March 31, 2015.

Deposits and Borrowings

Deposits totaled $4.2 billion as of March 31, 2015, an increase of 6% from $4.0 billion as of December 31, 2014 and an increase of 13% from $3.7 billion as of March 31, 2014. During the first quarter of 2015, demand deposits increased by $76.2 million, or 11%, from December 31, 2014 and increased by $374.1 million, or 90%, from March 31, 2014. Demand deposits represent 19% of total deposits as of March 31, 2015 as compared to 18% and 11% as of December 31, 2014 and March 31, 2014, respectively. The cost of deposits improved to 55 basis points for the quarter, representing a basis point decline from the fourth quarter of 2014 and an 8 basis point decline from the first quarter of 2014. Continued growth in demand deposits drove the improvements sequentially and year-over-year.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2015 was 3.58%, a decrease of 4 basis points both sequentially and year-over-year. The decrease from the fourth quarter of 2014 was due primarily to an average balance reduction in higher yielding acquired loans of $50.9 million.

Net interest income totaled $48.9 million in the first quarter of 2015, a decrease of 2% from $49.8 million in the fourth quarter of 2014 and an increase of 27% from $38.3 million in the first quarter of 2014. Interest income totaled $55.4 million for the first quarter of 2015, a decrease of 2% from $56.4 million in the fourth quarter of 2014 and an increase of 23% from $44.9 million in the first quarter of 2014. Interest income from new loans increased by $2.0 million, or 8%, from the fourth quarter of 2014 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $2.5 million, or 13%, from the fourth quarter due to expected payoffs and resolutions of acquired loans. Interest expense remained relatively flat at $6.6 million for the first quarter of 2015 consistent with the fourth and first quarters of 2014.

Noninterest Income and Noninterest Expense

Noninterest income (loss) totaled ($54.1) million for the first quarter of 2015 primarily due to the one-time charge of ($65.5) million as a result of early termination of all FDIC loss share agreements. The Company continues to realize resolution of acquired asset income and gain on sales of other real estate owned stemming from its acquired asset portfolio. As a result of the early termination of the FDIC loss share agreements, the Company recognized all recoveries and gain on sales related to what were previously “covered assets” in its consolidated statement of income as these amounts are no longer shared with the FDIC. For the quarter, the Company realized


$4.9 million of noninterest income related to its acquired asset portfolio. Excluding the aforementioned one-time charge, the primary components of noninterest income for the quarter were loan and other fees, income from resolution of acquired assets, gain on sales of other real estate owned and gain on investment securities of $2.5 million, $3.4 million, $1.6 million and $1.0 million, respectively.

Noninterest expense totaled $30.7 million for the first quarter of 2015, a decrease of 3% from $31.5 million in the fourth quarter of 2014 and 11% from $34.5 million in the first quarter of 2014. For the quarter, the Company recorded non-core expenses of $0.2 million in professional services related to the early termination of the FDIC loss share agreements, $0.2 million of severance and $0.1 million of other operating expenses.

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 12.4%, 12.6% and 16.1% for the first quarter of 2015 respectively, compared to 13.0%, 12.8% and 17.6% for the fourth quarter of 2014, respectively. Stockholders’ equity totaled $846.8 million as of March 31, 2015, a decrease of 1% from $851.7 million as of December 31, 2014 primarily driven by a net loss of $16.9 million which was partially offset by a $9.9 increase in accumulated other comprehensive income. Tangible book value per common share is $18.30 as of March 31, 2015.

Conference Call

The Company will host a conference call today, Thursday, April 23, 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 May 23, 2015, by dialing (877) 344-7529 and entering pass code 10063106.

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

Forward-Looking Statements

This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our recent Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and FCB Financial Holdings, Inc. undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.


Use of Non-GAAP Financial Measures

Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP financial measures used in this release. A reconciliation to what we believe to be the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total net interest income, total noninterest income and total noninterest expense in the case of core efficiency ratio, and total shareholders’ equity in the case of tangible book value and tangible book value per share - appears in tabular form at the end of this release. The Company believes each of core net income, core efficiency ratio, and core ROA is useful for both investors and management to understand the effects of certain noninterest items and provides additional perspective on the Company’s performance over time and in comparison to the Company’s competitors. Neither core net income nor core ROA should be viewed as a substitute for net income, nor should core efficiency ratio be viewed as a substitute for total net interest income, total noninterest income and total noninterest expense. The Company believes that tangible book value and tangible book value per share are useful for both investors and management, among other things, as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total stockholders’ equity.

These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial results and analyses of results reported under GAAP, and should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

About FCB Financial Holdings, Inc.

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 51 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  
     March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
    March 31,
2014
 
     (Dollars in thousands, except share and per share data)  

Interest income:

  

       

Interest and fees on loans

   $ 43,306      $ 43,900      $ 42,085      $ 37,833      $ 34,852   

Interest and dividends on investment securities

     12,110        12,451        11,530        10,566        9,998   

Other interest income

     33        53        37        53        68   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

  55,449      56,404      53,652      48,452      44,918   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense:

Interest on deposits

  5,585      5,492      6,124      5,833      5,309   

Interest on borrowings

  980      1,133      1,633      1,466      1,264   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

  6,565      6,625      7,757      7,299      6,573   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

  48,884      49,779      45,895      41,153      38,345   

Provision for loan losses

  1,349      3,112      2,805      3,236      1,090   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

  47,535      46,667      43,090      37,917      37,255   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest income:

Service charges and fees

  757      780      738      707      738   

Loan and other fees

  2,497      2,270      1,238      2,569      716   

Bank-owned life insurance income

  1,097      1,168      1,151      1,038      818   

FDIC loss share indemnification loss

  (65,529   (5,324   (5,862   (5,247   (4,992

Income from resolution of acquired assets

  3,372      1,061      1,109      1,692      1,037   

Gain (loss) on sales of other real estate owned

  1,565      200      (128   (359   431   

Gain (loss) on investment securities

  1,007      2,377      2,785      4,448      2,495   

Other noninterest income

  1,145      2,912      1,319      1,842      1,305   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

  (54,089   5,444      2,350      6,690      2,548   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest expense:

Salaries and employee benefits

  16,575      14,885      28,525      13,411      16,420   

Occupancy and equipment expenses

  3,277      3,248      3,606      3,777      3,433   

Loan and other real estate related expenses

  2,076      4,566      3,203      3,338      3,761   

Professional services

  1,406      1,242      1,203      1,352      1,832   

Data processing and network

  2,718      2,639      2,538      2,357      3,210   

Regulatory assessments and insurance

  2,119      1,679      2,466      1,920      1,774   

Amortization of intangibles

  424      425      426      443      416   

Other operating expenses

  2,055      2,779      6,992      4,146      3,620   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

  30,650      31,463      48,959      30,744      34,466   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax expense (benefit)

  (37,204   20,648      (3,519   13,863      5,337   

Income tax expense (benefit)

  (20,330   7,548      (97   4,697      1,809   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

$ (16,874 $ 13,100    $ (3,422 $ 9,166    $ 3,528   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

Basic

$ (0.41 $ 0.32    $ (0.09 $ 0.26    $ 0.10   

Diluted

$ (0.41 $ 0.31    $ (0.09 $ 0.26    $ 0.10   

Weighted average shares outstanding:

Basic

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

Diluted

  41,421,854      42,154,781      38,952,127      35,896,207      35,896,445   


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

     March 31,
2015
    December 31,
2014
    March 31,
2014
 
     (Dollars in thousands)  

Assets:

      

Cash and due from banks

   $ 46,043      $ 25,397      $ 34,162   

Interest-earning deposits in other banks

     66,034        81,688        53,535   

Investment securities:

      

Held to maturity securities

     —          —          369   

Available for sale securities, at fair value

     1,447,776        1,359,098        1,612,386   

Federal Home Loan Bank and other bank stock, at cost

     65,289        66,891        43,354   
  

 

 

   

 

 

   

 

 

 

Total investment securities

  1,513,065      1,425,989      1,656,109   
  

 

 

   

 

 

   

 

 

 

Loans held for sale

  1,308      707      —     

Loans:

New loans

  3,354,452      3,103,417      1,932,196   

Acquired loans

  764,597      826,173      1,006,166   

Allowance for loan losses

  (24,513   (22,880   (15,494
  

 

 

   

 

 

   

 

 

 

Loans, net

  4,094,536      3,906,710      2,922,868   
  

 

 

   

 

 

   

 

 

 

FDIC Loss share indemnification asset

  —        63,168      80,605   

Due from Federal Deposit Insurance Corporation (“FDIC”)

  —        1,735      1,938   

Premises and equipment, net

  38,291      38,962      43,533   

Other real estate owned

  75,017      74,527      86,244   

Goodwill and other intangible assets

  88,291      88,615      90,317   

Deferred tax assets, net

  69,656      47,441      39,183   

Bank-owned life insurance

  139,733      139,829      116,075   

Other assets

  85,109      62,860      42,931   
  

 

 

   

 

 

   

 

 

 

Total assets

$ 6,217,083    $ 5,957,628    $ 5,167,500   
  

 

 

   

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

Liabilities:

Deposits:

Transaction accounts:

Noninterest-bearing

$ 595,389    $ 593,025    $ 417,529   

Interest-bearing

  2,411,142      2,308,657      1,797,976   
  

 

 

   

 

 

   

 

 

 

Total transaction accounts

  3,006,531      2,901,682      2,215,505   

Time deposits

  1,219,470      1,076,853      1,514,164   
  

 

 

   

 

 

   

 

 

 

Total deposits

  4,226,001      3,978,535      3,729,669   

Borrowings

  1,091,118      1,067,981      665,829   

Other liabilities

  53,130      59,459      48,133   
  

 

 

   

 

 

   

 

 

 

Total liabilities

  5,370,249      5,105,975      4,443,631   
  

 

 

   

 

 

   

 

 

 

Stockholders’ Equity:

Class A common stock

  37      36      29   

Class B common stock

  6      7      8   

Additional paid-in capital

  836,720      834,538      724,067   

Retained earnings

  18,270      35,144      16,300   

Accumulated other comprehensive income (loss)

  10,552      679      2,216   

Treasury stock, at cost

  (18,751   (18,751   (18,751
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

  846,834      851,653      723,869   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 6,217,083    $ 5,957,628    $ 5,167,500   
  

 

 

   

 

 

   

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)

 

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

Performance Ratios

          

Interest rate spread

     3.42     3.50     3.36     3.26     3.45

Net interest margin

     3.58     3.62     3.49     3.39     3.62

Return on average assets

     -1.13     0.87     -0.24     0.69     0.30

Return on average equity

     -7.97     6.15     -1.70     5.02     1.98

Efficiency ratio (company level)

     -580.71     56.97     101.48     64.26     84.28

Average interest-earning assets to average interest bearing liabilities

     121.55     119.64     118.11     117.15     118.86

Loans receivable to deposits

     97.47     98.77     89.19     82.45     78.78

Yield on interest-earning assets

     4.00     4.08     4.05     3.96     4.19

Cost of interest-bearing liabilities

     0.58     0.58     0.69     0.70     0.74

Asset and Credit Quality Ratios - Total loans

          

Nonperforming loans to loans receivable

     0.40     0.49     0.62     1.07     0.90

Nonperforming assets to total assets

     1.47     1.58     1.66     2.06     2.18

Covered loans to total gross loans

     0.00     6.96     8.05     10.00     11.47

ALL to nonperforming assets

     26.77     24.36     20.35     15.42     13.76

ALL to total gross loans

     0.60     0.58     0.57     0.55     0.53

Asset and Credit Quality Ratios - New Loans

          

Nonperforming new loans to new loans receivable

     0.00     0.00     0.00     0.01     0.00

New loan ALL to total gross new loans

     0.52     0.52     0.53     0.54     0.49

Asset and Credit Quality Ratios - Acquired Loans

          

Nonperforming acquired loans to acquired loans receivable

     2.16     2.34     2.51     3.63     2.62

Covered acquired loans to total gross acquired loans

     0.00     33.09     32.78     34.11     33.51

Acquired loan ALL to total gross acquired loans

     0.94     0.83     0.72     0.57     0.60

Capital Ratios (Company)

          

Average equity to average total assets

     14.2     14.2     13.9     13.7     15.3

Tangible average equity to tangible average assets

     12.9     12.9     12.6     12.2     13.9

Tangible common equity ratio (1)

     12.4     13.0     12.5     11.7     12.5

Tier 1 leverage ratio

     12.6     12.8     13.1     12.0     13.4

Tier 1 risk-based capital ratio

     15.6     17.0     17.2     16.0     17.6

Total risk-based capital ratio

     16.1     17.6     17.7     16.5     18.1

Capital Ratios (Bank)

          

Average equity to average total assets

     11.8     11.7     11.8     11.9     12.3

Tangible common equity ratio

     10.6     10.4     10.1     10.4     10.5

Tier 1 leverage ratio

     10.7     10.4     10.6     10.8     11.2

Tier 1 risk-based capital ratio

     13.4     13.9     14.0     14.4     14.9

Total risk-based capital ratio

     13.9     14.5     14.6     14.9     15.4

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)

 

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

New Loans:

              

Commercial real estate

   $ 903,629       $ 853,074       $ 721,676       $ 662,199       $ 569,094   

Owner-occupied commercial real estate

     325,972         281,703         261,549         230,546         166,031   

1-4 single family residential

     1,044,480         922,657         734,608         523,987         384,076   

Construction, land and development

     248,623         232,601         160,899         123,169         79,215   

Home equity loans and lines of credit

     20,459         11,826         12,774         9,631         22,559   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 2,543,163    $ 2,301,861    $ 1,891,506    $ 1,549,532    $ 1,220,975   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  805,233      795,000      792,093      754,238      709,813   

Consumer

  6,056      6,556      2,444      2,567      1,408   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total new loans

$ 3,354,452    $ 3,103,417    $ 2,686,043    $ 2,306,337    $ 1,932,196   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired ASC 310-30 Loans:

Commercial real estate

$ 309,758    $ 336,935    $ 364,753    $ 413,154    $ 426,940   

1-4 single family residential

  77,685      86,308      90,752      98,802      103,776   

Construction, land and development

  56,403      66,700      71,053      76,210      82,833   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 443,846    $ 489,943    $ 526,558    $ 588,166    $ 613,549   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  63,441      67,498      72,948      81,444      85,360   

Consumer

  2,588      2,803      2,936      3,345      3,674   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired ASC 310-30 Loans

$ 509,875    $ 560,244    $ 602,442    $ 672,955    $ 702,583   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Acquired Non-ASC 310-30 Loans:

Commercial real estate

$ 69,917    $ 70,146    $ 68,578    $ 76,120    $ 83,026   

Owner-occupied commercial real estate

  13,287      14,842      16,640      14,294      13,989   

1-4 single family residential

  97,450      102,279      105,561      111,056      100,450   

Construction, land and development

  9,801      9,729      9,744      8,077      8,061   

Home equity loans and lines of credit

  52,762      54,704      56,170      56,926      65,340   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total real estate loans

$ 243,217    $ 251,700    $ 256,693    $ 266,473    $ 270,866   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commercial and industrial

  10,825      13,548      13,817      16,766      31,256   

Consumer

  680      681      809      1,121      1,461   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Acquired Non-ASC 310-30 Loans

  254,722      265,929      271,319      284,360      303,583   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

$ 4,119,049    $ 3,929,590    $ 3,559,804    $ 3,263,652    $ 2,938,362   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)

 

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

Noninterest-bearing demand deposits

   $ 595,389       $ 593,025       $ 525,152       $ 435,055       $ 417,525   

Interest-bearing demand deposits

     196,192         122,380         —           —           —     

Interest-bearing NOW accounts

     439,400         374,399         526,013         120,197         103,063   

Savings and money market accounts

     1,775,550         1,811,878         1,695,237         1,970,093         1,694,913   

Time deposits

     1,219,470         1,076,853         1,244,958         1,432,921         1,514,168   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

$ 4,226,001    $ 3,978,535    $ 3,991,360    $ 3,958,266    $ 3,729,669   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended March 31,     Three Months Ended December 31,  
     2015     2014  
     Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate (3)
    Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate (3)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Interest-earning deposits in other banks

   $ 78,344       $ 33         0.17   $ 103,597       $ 53         0.20

New loans

     3,179,879         26,585         3.34     2,844,186         24,631         3.39

Acquired loans (4)

     796,571         16,721         8.40     847,438         19,269         9.10

Investment securities

     1,483,886         12,110         3.26     1,662,139         12,451         2.93
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,538,680      55,449      4.00   5,457,360      56,404      4.08
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  44,045      67,521   

Noninterest-earning assets

  456,245      428,823   
  

 

 

         

 

 

       

Total assets

$ 6,038,970    $ 5,953,704   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 141,879    $ 132      0.38 $ 103,062    $ 53      0.20

Interest-bearing NOW accounts

  392,318      336      0.35   370,777      323      0.34

Savings and money market accounts

  1,843,078      2,454      0.54   1,770,403      2,608      0.58

Time deposits

  1,146,475      2,663      0.94   1,120,326      2,508      0.89

FHLB advances and other borrowings

  1,032,908      980      0.38   1,196,942      1,133      0.37
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,556,658    $ 6,565      0.58 $ 4,561,510    $ 6,625      0.58
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 569,304    $ 499,058   

Other liabilities

  53,997      48,564   

Stockholders’ equity

  859,011      844,572   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 6,038,970    $ 5,953,704   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 48,884    $ 49,779   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.42   3.50
        

 

 

         

 

 

 

Net interest margin

  3.58   3.62
        

 

 

         

 

 

 

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

 

     Three Months Ended March 31,  
     2015     2014  
     Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
    Average
Balance (1)
     Interest/
Expense (2)
     Annualized
Yield/Rate(3)
 
     (Dollars in thousands)  

Interest-earning assets:

                

Interest-earning deposits in other banks

   $ 78,344       $ 33         0.17   $ 126,136       $ 68         0.22

New loans

     3,179,879         26,585         3.34     1,814,109         16,381         3.61

Acquired loans (4)

     796,571         16,721         8.40     834,093         18,471         8.86

Investment securities

     1,483,886         12,110         3.26     1,517,598         9,998         2.64
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-earning assets

  5,538,680      55,449      4.00   4,291,936      44,918      4.19
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-earning assets:

FDIC loss share indemnification asset

  44,045      85,998   

Noninterest-earning assets

  456,245      347,185   
  

 

 

         

 

 

       

Total assets

$ 6,038,970    $ 4,725,119   
  

 

 

         

 

 

       

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 141,879    $ 132      0.38 $ —      $ —        0.00

Interest-bearing NOW accounts

  392,318      336      0.35   99,470      36      0.15

Savings and money market accounts

  1,843,078      2,454      0.54   1,552,067      1,883      0.49

Time deposits

  1,146,475      2,663      0.94   1,411,137      3,390      0.97

FHLB advances and other borrowings

  1,032,908      980      0.38   548,267      1,264      0.92
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 4,556,658    $ 6,565      0.58 $ 3,610,941    $ 6,573      0.74
  

 

 

    

 

 

      

 

 

    

 

 

    

Noninterest-bearing liabilities and shareholders’ equity:

Noninterest-bearing demand deposits

$ 569,304    $ 352,994   

Other liabilities

  53,997      38,963   

Stockholders’ equity

  859,011      722,221   
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

$ 6,038,970    $ 4,725,119   
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income

$ 48,884    $ 38,345   
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest spread

  3.42   3.45
        

 

 

         

 

 

 

Net interest margin

  3.58   3.62
        

 

 

         

 

 

 

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Net Income

(Unaudited)

 

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

Net Income (loss)

   $ (16,874   $ 13,100      $ (3,422   $ 9,166      $ 3,528   

Pre-tax Adjustments

          

Noninterest income

          

Less: Gain (loss) on investment securities

     1,007        2,377        2,785        4,448        2,495   

FDIC loss share indemnification loss

     (65,529     —          —          —          —     

Noninterest expense

          

Salaries and employee benefits

     185        1        15,379        —          2,220   

Occupancy and equipment

     —          —          —          225        —     

Loan and other real estate related expenses

     —          —          —          —          135   

Professional services

     245        —          —          —          379   

Data processing and network fees

     2        —          —          —          893   

Regulatory assessments and insurance

     —          —          —          —          —     

Amortization of intangibles

     —          —          —          —          —     

Other operating expenses

     64        (6     4,895        1,290        1,467   

Taxes

          

Tax Effect of adjustments (1)

     (30,065     1,881        (4,254     1,144        (1,014
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core Net Income

$ 18,079    $ 12,599    $ 9,813    $ 7,377    $ 5,113   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets

$ 6,038,970    $ 5,953,704    $ 5,738,087    $ 5,354,260    $ 4,725,119   

ROA (2)

  -1.13   0.87   -0.24   0.69   0.30

Core ROA (3)

  1.21   0.84   0.68   0.55   0.44

 

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible items. Core tax rate of 35-36% in 2015.
(2) Return on assets: Annualized net income / average assets
(3) Core return on assets: Annualized core net income / average assets


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Core Efficiency Ratio

(Unaudited)

 

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

Reported: Net interest income

   $ 48,884      $ 49,779      $ 45,895      $ 41,153      $ 38,345   

FTE adjustment

     777        711        475        487        492   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core net interest income

$ 49,661    $ 50,490    $ 46,370    $ 41,640    $ 38,837   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest income

$ (54,089 $ 5,444    $ 2,350    $ 6,690    $ 2,548   

FTE adjustment

  702      747      736      664      523   

Less: Gain (loss) on investment securities

  1,007      2,377      2,785      4,448      2,495   

FDIC loss share indemnification loss

  (65,529   —        —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest income (loss)

$ 11,135    $ 3,814    $ 301    $ 2,906    $ 576   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported: Noninterest expense

$ 30,650    $ 31,463    $ 48,959    $ 30,744    $ 34,466   

Less:

Salaries and employee benefits

  185      1      15,379      —        2,220   

Occupancy and equipment

  —        —        —        225      —     

Loan and other real estate related expenses

  —        —        —        —        135   

Professional services

  245      —        —        —        379   

Data processing and network fees

  2      —        —        —        893   

Regulatory assessments and insurance

  —        —        —        —        —     

Amortization of intangibles

  —        —        —        —        —     

Other operating expenses

  64      (6   4,895      1,290      1,467   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Core noninterest expense

$ 30,154    $ 31,468    $ 28,685    $ 29,229    $ 29,372   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio (1)

  -580.71   56.97   101.48   64.26   84.28

Core efficiency ratio (2)

  48.90   57.95   61.46   65.62   74.52

 

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


FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

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

(Unaudited)

 

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

Total assets

   $ 6,217,083      $ 5,957,628      $ 6,054,944      $ 5,641,708      $ 5,167,500   

Less:

          

Goodwill and other intangible assets

     88,291        88,615        89,040        89,466        90,317   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

$ 6,128,792    $ 5,869,013    $ 5,965,904    $ 5,552,242    $ 5,077,183   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

$ 846,834    $ 851,653    $ 835,727    $ 739,448    $ 723,869   

Less:

Goodwill and other intangible assets

  88,291      88,615      89,040      89,466      90,317   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible stockholders’ equity

$ 758,543    $ 763,038    $ 746,687    $ 649,982    $ 633,552   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

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

Tangible book value per share

$ 18.30    $ 18.43    $ 18.03    $ 18.11    $ 17.65   

Average assets

$ 6,038,970    $ 5,953,704    $ 5,738,087    $ 5,354,260    $ 4,725,119   

Average equity

  859,011      844,572      799,167      732,377      722,221   

Average goodwill and other intangible assets

  88,536      88,835      89,276      90,431      73,427   

Tangible average equity to tangible average assets

  12.9   12.9   12.6   12.2   13.9

Tangible common equity ratio

  12.4   13.0   12.5   11.7   12.5

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com