Attached files
| file | filename |
|---|---|
| EX-10.35 - EXHIBIT 10.35 - FCB FINANCIAL HOLDINGS, INC. | exhibit103541817.htm |
| 8-K - 8-K - FCB FINANCIAL HOLDINGS, INC. | employmentamendment41817.htm |
Exhibit 99.1
FCB Financial Holdings, Inc. Surpasses $9.5 Billion in Assets and Reports Record First Quarter 2017 Financial Results
Weston, Fla. - FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported first quarter 2017 net income of $39.0 million, or $0.86 per share on a fully diluted basis, and record core net income of $29.1 million, or $0.64 per share on a fully diluted basis. Core net income rose 28% year-over-year and core net income per diluted share rose 21%. This resulted in a ROA of 172 basis points and a core ROA of 128 basis points.
• | Total fully tax equivalent core net revenue of $81.1 million; |
• | Core EPS of $0.64 per share on a fully diluted basis; |
• | New loan portfolio grew sequentially at an annualized rate of 27% when excluding the impact of reducing the Syndicated loan portfolio; |
• | New loan fundings of $492.2 million during the quarter and reduction of Syndicated loan portfolio of $120.5 million; |
• | Total deposits grew sequentially at an annualized rate of 20%; |
• | Total deposits grew by $368.7 million during the quarter; |
• | Demand deposits grew by $216.9 million, or 46% annualized, during the quarter; |
• | Core efficiency ratio of 42.9%; |
• | Core ROA of 128 basis points; and |
• | Tangible book value per share was $22.85. |
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 2017 include $56 thousand of severance expense, $12 thousand of other operating expense and $777 thousand gain on sale of investment securities. Additionally, the Company expects its 2017 annual GAAP tax rate to be between 30-32% due to the accounting impact of option and warrant exercises in concordance with ASU 2016-09 which was effective January 1, 2017.
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, “The first quarter was yet again a record quarter for FCB, marking the 17th consecutive quarter of improving core operating results. We are pleased by our consistent and quality organic growth results this quarter highlighted by new loan fundings of $492 million and core deposit growth of $552 million. Once again these results were coupled with continued strong credit quality and are a reflection of our unique brand in Florida.”
Loan Portfolio and Composition
During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $283.5 million to $6.9 billion at March 31, 2017, an increase of 4% from $6.6 billion as of December 31, 2016, and 23% from $5.6 billion as of March 31, 2016.
The Bank’s new loan portfolio totaled $6.6 billion as of March 31, 2017, an increase of 5% from $6.3 billion as of December 31, 2016 and 28% from $5.1 billion as of March 31, 2016. Loan growth during the quarter was a result of $492.2 million of organic new loan fundings, consisting of $159.2 million of commercial and industrial, $209.4 million of commercial real estate and $123.6 million of residential and consumer. Additionally, during the quarter the Company reduced its syndicated loan portfolio by $120.4 million to $314.9 million. As of March 31, 2017 new loans made up 95% of the total loan portfolio as compared to 94% and 91% as of December 31, 2016 and March 31, 2016, respectively.
The Bank’s acquired loan portfolio totaled $366.2 million as of March 31, 2017, a decrease of 2% from $375.5 million as of December 31, 2016 and a decrease of 32% from $535.1 million as of March 31, 2016. The decrease in the current quarter was driven by the resolution of $3.4 million of loans as well as scheduled loan amortization. As of March 31, 2017, acquired loans made up 5% of our total loan portfolio as compared to 6% and 9% as of December 31, 2016 and March 31, 2016, respectively.
Asset Quality
The provision for loan losses of $1.6 million recorded for the first quarter of 2017 includes a $2.0 million provision for new loans and net recoupment of valuation allowance of $0.4 million for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $35.4 million, or 0.54% of the $6.6 billion in new loans outstanding. The nonperforming new loan ratio as of March 31, 2017 was 0.02%.
Deposits and Borrowings
Deposits totaled $7.7 billion as of March 31, 2017, an increase of 5% from $7.3 billion as of December 31, 2016 and an increase of 30% from $5.9 billion as of March 31, 2016. During the first quarter of 2017, demand deposits increased by $216.9 million, or 11%, from December 31, 2016 and increased by $741.6 million, or 54%, from March 31, 2016. Demand deposits represent 28% of total deposits as of March 31, 2017 as compared to 26% and 23% as of December 31, 2016 and March 31, 2016, respectively. The cost of deposits was 75 basis points for the quarter, representing a three basis points increase from the fourth quarter of 2016 and a 9 basis points increase from the first quarter of 2016. The primary driver of the increase over the periods is attributable to the Federal Reserve rate hikes in December 2015, December 2016 and March 2017.
Net Interest Margin and Net Interest Income
The net interest margin for the first quarter of 2017 was 3.24%, a decrease of 17 basis points from the fourth quarter of 2016 and a decrease of 41 basis points from the first quarter of 2016. The decrease from the fourth quarter of 2016 was due primarily to the continued attrition of the acquired loan portfolio.
Net interest income totaled $69.7 million in the first quarter of 2017, a decrease of 2% from $71.1 million in the fourth quarter of 2016 and an increase of 8% from $64.4 million in the first quarter of 2016. Interest income totaled $85.2 million for the first quarter of 2017, in line with $85.6 million in the fourth quarter of 2016 and an increase of 13% from $75.7 million in the first quarter of 2016. Interest income from new loans increased by $4.7 million, or 9%, from the fourth quarter of 2016 due to yield expansion and continued growth in the new loan portfolio. Interest income on acquired loans decreased by $6.7 million, or 46%, from the fourth quarter due to balance runoff and a reduction in loan resolutions. Interest expense was $15.6 million for the first quarter of 2017, an increase of 7% from $14.5 million in the fourth quarter of 2016 and an increase of 38% from $11.3 million in the first quarter of 2016. The increase from the fourth quarter of 2016 was a result of a 5%, or $354.3 million, increase of average interest-bearing liabilities and the impact of the December 2016 and March 2017 Federal Reserve rate hikes on funding costs.
Noninterest Income and Noninterest Expense
Noninterest income totaled $10.0 million for the first quarter of 2017 as compared to $7.9 million for the fourth quarter of 2016 and $5.4 million for the first quarter of 2016. The primary components of noninterest income for the quarter were loan and other fees, bank-owned life insurance income and other noninterest income of $2.5 million, $1.4 million and $3.6 million, respectively. The Company continues to realize resolution of acquired asset income and gain on sales of other real estate owned stemming from its acquired asset portfolio. As a result of the early termination of the FDIC loss share agreements in March 2015, the Company recognized all recoveries and gain on sales related to what were previously “covered assets” in its consolidated statement of income as these amounts are no longer shared with the FDIC.
Noninterest expense totaled $35.1 million for the first quarter of 2017, an increase of 4% from $33.6 million in the fourth quarter of 2016 and an increase of 5% from $33.3 million in the first quarter of 2016. For the quarter, the Company recorded non-core expenses of $68 thousand consisting of $56 thousand of severance expense and $12 thousand of other operating expense.
Financial Position
Capital ratios continue to be strong and well in excess of regulatory requirements. Our tangible common equity, Tier 1 leverage, and total risk-based capital ratios were 10.3%, 10.5% and 12.8% for the first quarter of 2017 respectively, compared to 10.0%, 10.3% and 12.5% for the fourth quarter of 2016, respectively. Stockholders’ equity totaled $1.1 billion as of March 31, 2017, an increase of 7.4% from $982.4 million as of December 31, 2016 due to net income of $39.0 million, $23.1 million of additional paid-in capital and an increase in accumulated other comprehensive income of $10.7 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $22.85 as of March 31, 2017.
Conference Call
The Company will host a conference call today, Thursday, April 20, 2017 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 20, 2017, by dialing (877) 344-7529 and entering pass code 10102767.
The live broadcast of the conference call will also be available online at the Company's website by following the link to Investor Relations. An on-line replay of the call will be available at the Company’s website for 90 days.
Forward-Looking Statements
This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our most recent Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and FCB Financial Holdings, Inc. undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.
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. (NYSE: FCB) is the third largest Florida-based independent bank, and among the most highly capitalized banks in the state. Awarded a five-star rating from Bauer Financial™, FCB assets are more than $9.5 billion, with capital ratios that exceed regulatory standards. Since its founding in 2010, FCB has been steadfast in its commitment to delivering personalized service, innovation, and products and services equal to those offered by the national banks. Similarly, FCB recognizes the importance of community, fostering a corporate culture that promotes employee volunteerism at all levels, while supporting community-based programs and partnerships that help promote greater financial independence and improved quality of life for families. FCB serves individuals, businesses and communities across the state with 46 full-service banking centers from east to west, and from Daytona Beach to Miami-Dade. For more information, visit FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended | ||||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest and fees on loans | $ | 66,589 | $ | 68,583 | $ | 65,748 | $ | 62,642 | $ | 61,288 | ||||||||||
Interest and dividends on investment securities | 18,561 | 16,907 | 14,955 | 14,470 | 14,374 | |||||||||||||||
Other interest income | 72 | 90 | 97 | 96 | 66 | |||||||||||||||
Total interest income | 85,222 | 85,580 | 80,800 | 77,208 | 75,728 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 13,518 | 12,960 | 11,736 | 10,340 | 9,293 | |||||||||||||||
Interest on borrowings | 2,034 | 1,554 | 1,786 | 1,938 | 1,993 | |||||||||||||||
Total interest expense | 15,552 | 14,514 | 13,522 | 12,278 | 11,286 | |||||||||||||||
Net interest income | 69,670 | 71,066 | 67,278 | 64,930 | 64,442 | |||||||||||||||
Provision for loan losses | 1,643 | 2,249 | 1,990 | 1,976 | 1,440 | |||||||||||||||
Net interest income after provision for loan losses | 68,027 | 68,817 | 65,288 | 62,954 | 63,002 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees | 915 | 935 | 884 | 842 | 806 | |||||||||||||||
Loan and other fees | 2,495 | 2,488 | 2,145 | 2,248 | 2,014 | |||||||||||||||
Bank-owned life insurance income | 1,414 | 1,333 | 1,288 | 1,286 | 1,285 | |||||||||||||||
Income from resolution of acquired assets | 762 | 1,135 | 1,052 | 478 | 680 | |||||||||||||||
Gain (loss) on sales of other real estate owned | 45 | 209 | 925 | 2,102 | (110 | ) | ||||||||||||||
Gain (loss) on investment securities | 777 | 800 | 749 | 324 | (54 | ) | ||||||||||||||
Other noninterest income | 3,579 | 1,019 | 1,099 | 942 | 813 | |||||||||||||||
Total noninterest income | 9,987 | 7,919 | 8,142 | 8,222 | 5,434 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 20,497 | 19,261 | 18,711 | 19,614 | 18,645 | |||||||||||||||
Occupancy and equipment expenses | 3,397 | 3,505 | 3,480 | 3,034 | 3,572 | |||||||||||||||
Loan and other real estate related expenses | 1,227 | 1,467 | 1,834 | 2,235 | 1,820 | |||||||||||||||
Professional services | 1,352 | 1,585 | 1,180 | 1,105 | 1,337 | |||||||||||||||
Data processing and network | 2,965 | 2,920 | 2,882 | 2,796 | 2,863 | |||||||||||||||
Regulatory assessments and insurance | 2,177 | 2,055 | 1,860 | 1,840 | 2,117 | |||||||||||||||
Amortization of intangibles | 256 | 256 | 257 | 297 | 379 | |||||||||||||||
Other operating expenses | 1,867 | 2,597 | 2,832 | 3,054 | 2,567 | |||||||||||||||
Total noninterest expense | 35,084 | 33,646 | 33,036 | 33,975 | 33,300 | |||||||||||||||
Income before income tax expense | 42,930 | 43,090 | 40,394 | 37,201 | 35,136 | |||||||||||||||
Income tax expense | 3,941 | 15,194 | 14,330 | 13,697 | 12,684 | |||||||||||||||
Net income | $ | 38,989 | $ | 27,896 | $ | 26,064 | $ | 23,504 | $ | 22,452 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.93 | $ | 0.68 | $ | 0.64 | $ | 0.58 | $ | 0.55 | ||||||||||
Diluted | $ | 0.86 | $ | 0.64 | $ | 0.60 | $ | 0.55 | $ | 0.52 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 41,730,610 | 40,911,326 | 40,608,706 | 40,646,498 | 40,698,866 | |||||||||||||||
Diluted | 45,573,213 | 43,728,282 | 43,150,813 | 42,997,811 | 42,840,157 | |||||||||||||||
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and due from banks | $ | 70,908 | $ | 52,903 | $ | 67,324 | $ | 51,277 | $ | 48,449 | ||||||||||
Interest-earning deposits in other banks | 62,929 | 30,973 | 20,010 | 107,588 | 77,624 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale securities, at fair value | 1,976,252 | 1,876,434 | 1,672,089 | 1,562,049 | 1,525,145 | |||||||||||||||
Federal Home Loan Bank and other bank stock, at cost | 55,652 | 51,656 | 43,486 | 51,557 | 59,321 | |||||||||||||||
Total investment securities | 2,031,904 | 1,928,090 | 1,715,575 | 1,613,606 | 1,584,466 | |||||||||||||||
Loans held for sale | 21,251 | 20,220 | 15,748 | 5,363 | 900 | |||||||||||||||
Loans: | ||||||||||||||||||||
New loans | 6,552,214 | 6,259,406 | 5,837,759 | 5,523,071 | 5,108,538 | |||||||||||||||
Acquired loans | 366,156 | 375,488 | 431,734 | 474,076 | 535,129 | |||||||||||||||
Allowance for loan losses | (39,431 | ) | (37,897 | ) | (35,785 | ) | (33,706 | ) | (31,995 | ) | ||||||||||
Loans, net | 6,878,939 | 6,596,997 | 6,233,708 | 5,963,441 | 5,611,672 | |||||||||||||||
Premises and equipment, net | 36,278 | 36,652 | 38,112 | 37,939 | 36,686 | |||||||||||||||
Other real estate owned | 18,761 | 19,228 | 25,654 | 29,290 | 43,522 | |||||||||||||||
Goodwill and other intangible assets | 85,639 | 85,895 | 86,151 | 86,408 | 86,705 | |||||||||||||||
Deferred tax assets, net | 56,178 | 61,391 | 59,081 | 66,213 | 74,420 | |||||||||||||||
Bank-owned life insurance | 198,089 | 198,438 | 172,105 | 170,817 | 169,531 | |||||||||||||||
Other assets | 72,346 | 59,347 | 97,684 | 89,280 | 102,149 | |||||||||||||||
Total assets | $ | 9,533,222 | $ | 9,090,134 | $ | 8,531,152 | $ | 8,221,222 | $ | 7,836,124 | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Transaction accounts: | ||||||||||||||||||||
Noninterest-bearing | $ | 1,069,745 | $ | 905,905 | $ | 830,910 | $ | 789,019 | $ | 737,875 | ||||||||||
Interest-bearing | 4,571,833 | 4,183,972 | 3,794,215 | 3,490,188 | 3,276,896 | |||||||||||||||
Total transaction accounts | 5,641,578 | 5,089,877 | 4,625,125 | 4,279,207 | 4,014,771 | |||||||||||||||
Time deposits | 2,032,793 | 2,215,794 | 2,292,438 | 2,188,459 | 1,887,608 | |||||||||||||||
Total deposits | 7,674,371 | 7,305,671 | 6,917,563 | 6,467,666 | 5,902,379 | |||||||||||||||
Borrowings | 739,519 | 751,103 | 568,175 | 756,759 | 950,462 | |||||||||||||||
Other liabilities | 64,085 | 50,919 | 79,329 | 73,625 | 93,984 | |||||||||||||||
Total liabilities | 8,477,975 | 8,107,693 | 7,565,067 | 7,298,050 | 6,946,825 | |||||||||||||||
Stockholders’ Equity: | ||||||||||||||||||||
Class A common stock | 45 | 44 | 41 | 40 | 39 | |||||||||||||||
Class B common stock | — | — | 3 | 3 | 4 | |||||||||||||||
Additional paid-in capital | 898,394 | 875,314 | 866,673 | 857,721 | 853,726 | |||||||||||||||
Retained earnings | 227,440 | 188,451 | 160,555 | 134,491 | 110,987 | |||||||||||||||
Accumulated other comprehensive income (loss) | 6,741 | (3,995 | ) | 16,186 | 4,816 | (8,240 | ) | |||||||||||||
Treasury stock, at cost | (77,373 | ) | (77,373 | ) | (77,373 | ) | (73,899 | ) | (67,217 | ) | ||||||||||
Total stockholders’ equity | 1,055,247 | 982,441 | 966,085 | 923,172 | 889,299 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,533,222 | $ | 9,090,134 | $ | 8,531,152 | $ | 8,221,222 | $ | 7,836,124 | ||||||||||
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
Three Months Ended | |||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||
Performance Ratios: | |||||||||||||||
Interest rate spread | 3.03 | % | 3.22 | % | 3.26 | % | 3.33 | % | 3.49 | % | |||||
Net interest margin | 3.24 | % | 3.41 | % | 3.44 | % | 3.51 | % | 3.65 | % | |||||
Return on average assets | 1.72 | % | 1.26 | % | 1.25 | % | 1.19 | % | 1.19 | % | |||||
Return on average equity | 15.58 | % | 11.36 | % | 10.96 | % | 10.41 | % | 10.28 | % | |||||
Efficiency ratio (company level) | 43.72 | % | 42.27 | % | 43.46 | % | 46.04 | % | 47.11 | % | |||||
Average interest-earning assets to average interest bearing liabilities | 121.19 | % | 120.75 | % | 120.89 | % | 119.60 | % | 118.42 | % | |||||
Loans receivable to deposits | 90.15 | % | 90.82 | % | 90.63 | % | 92.73 | % | 95.62 | % | |||||
Yield on interest-earning assets | 3.90 | % | 4.06 | % | 4.09 | % | 4.12 | % | 4.24 | % | |||||
Cost of interest-bearing liabilities | 0.87 | % | 0.84 | % | 0.83 | % | 0.79 | % | 0.75 | % | |||||
Asset and Credit Quality Ratios - Total loans: | |||||||||||||||
Nonperforming loans to loans receivable | 0.24 | % | 0.39 | % | 0.27 | % | 0.30 | % | 0.33 | % | |||||
Nonperforming assets to total assets | 0.37 | % | 0.50 | % | 0.50 | % | 0.57 | % | 0.79 | % | |||||
ALL to nonperforming assets | 111.81 | % | 84.08 | % | 83.92 | % | 71.59 | % | 51.51 | % | |||||
ALL to total gross loans | 0.57 | % | 0.57 | % | 0.57 | % | 0.56 | % | 0.57 | % | |||||
Asset and Credit Quality Ratios - New Loans: | |||||||||||||||
Nonperforming new loans to new loans receivable | 0.02 | % | 0.04 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||
New loan ALL to total gross new loans | 0.54 | % | 0.54 | % | 0.52 | % | 0.52 | % | 0.52 | % | |||||
Asset and Credit Quality Ratios - Acquired Loans: | |||||||||||||||
Nonperforming acquired loans to acquired loans receivable | 4.15 | % | 6.18 | % | 3.76 | % | 3.69 | % | 3.32 | % | |||||
Acquired loan ALL to total gross acquired loans | 1.11 | % | 1.16 | % | 1.22 | % | 1.10 | % | 1.06 | % | |||||
Capital Ratios (Company): | |||||||||||||||
Average equity to average total assets | 11.0 | % | 11.1 | % | 11.4 | % | 11.5 | % | 11.6 | % | |||||
Tangible average equity to tangible average assets | 10.2 | % | 10.2 | % | 10.5 | % | 10.5 | % | 10.6 | % | |||||
Tangible common equity ratio (1) | 10.3 | % | 10.0 | % | 10.4 | % | 10.3 | % | 10.4 | % | |||||
Tier 1 leverage ratio | 10.5 | % | 10.3 | % | 10.3 | % | 9.8 | % | 9.6 | % | |||||
Tier 1 risk-based capital ratio | 12.2 | % | 11.9 | % | 11.8 | % | 11.3 | % | 11.1 | % | |||||
Total risk-based capital ratio | 12.8 | % | 12.5 | % | 12.0 | % | 11.3 | % | 11.1 | % | |||||
Capital Ratios (Bank): | |||||||||||||||
Average equity to average total assets | 10.0 | % | 10.2 | % | 10.6 | % | 10.5 | % | 10.6 | % | |||||
Tangible common equity ratio | 9.1 | % | 9.0 | % | 9.5 | % | 9.4 | % | 9.4 | % | |||||
Tier 1 leverage ratio | 9.3 | % | 9.3 | % | 9.6 | % | 9.6 | % | 9.5 | % | |||||
Tier 1 risk-based capital ratio | 10.9 | % | 10.9 | % | 11.1 | % | 11.1 | % | 11.1 | % | |||||
Total risk-based capital ratio | 11.5 | % | 11.4 | % | 11.5 | % | 11.2 | % | 11.1 | % | |||||
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
As of | ||||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
New Loans: | ||||||||||||||||||||
Commercial real estate | $ | 1,703,790 | $ | 1,438,427 | $ | 1,272,150 | $ | 1,209,762 | $ | 1,067,594 | ||||||||||
Owner-occupied commercial real estate | 790,062 | 769,814 | 596,131 | 571,558 | 558,659 | |||||||||||||||
1-4 single family residential | 2,084,966 | 2,012,856 | 1,982,340 | 1,923,092 | 1,833,190 | |||||||||||||||
Construction, land and development | 627,894 | 651,253 | 639,626 | 582,615 | 543,540 | |||||||||||||||
Home equity loans and lines of credit | 50,815 | 49,819 | 47,508 | 43,730 | 34,973 | |||||||||||||||
Total real estate loans | $ | 5,257,527 | $ | 4,922,169 | $ | 4,537,755 | $ | 4,330,757 | $ | 4,037,956 | ||||||||||
Commercial and industrial | 1,290,456 | 1,332,869 | 1,295,324 | 1,187,788 | 1,064,873 | |||||||||||||||
Consumer | 4,231 | 4,368 | 4,680 | 4,526 | 5,709 | |||||||||||||||
Total new loans | $ | 6,552,214 | $ | 6,259,406 | $ | 5,837,759 | $ | 5,523,071 | $ | 5,108,538 | ||||||||||
Acquired ASC 310-30 Loans: | ||||||||||||||||||||
Commercial real estate | $ | 129,317 | $ | 130,628 | $ | 160,219 | $ | 182,828 | $ | 212,041 | ||||||||||
1-4 single family residential | 30,115 | 31,476 | 34,329 | 35,400 | 40,061 | |||||||||||||||
Construction, land and development | 15,912 | 17,657 | 25,156 | 25,296 | 27,973 | |||||||||||||||
Total real estate loans | $ | 175,344 | $ | 179,761 | $ | 219,704 | $ | 243,524 | $ | 280,075 | ||||||||||
Commercial and industrial | 14,234 | 15,147 | 21,985 | 28,984 | 33,413 | |||||||||||||||
Consumer | 1,554 | 1,681 | 2,074 | 2,216 | 2,287 | |||||||||||||||
Total Acquired ASC 310-30 Loans | $ | 191,132 | $ | 196,589 | $ | 243,763 | $ | 274,724 | $ | 315,775 | ||||||||||
Acquired Non-ASC 310-30 Loans: | ||||||||||||||||||||
Commercial real estate | $ | 38,352 | $ | 38,786 | $ | 39,769 | $ | 44,680 | $ | 55,731 | ||||||||||
Owner-occupied commercial real estate | 18,465 | 18,477 | 20,042 | 19,256 | 20,814 | |||||||||||||||
1-4 single family residential | 64,669 | 66,854 | 71,302 | 74,568 | 80,199 | |||||||||||||||
Construction, land and development | 5,890 | 6,338 | 6,338 | 6,338 | 6,338 | |||||||||||||||
Home equity loans and lines of credit | 41,835 | 42,295 | 43,096 | 46,269 | 47,362 | |||||||||||||||
Total real estate loans | $ | 169,211 | $ | 172,750 | $ | 180,547 | $ | 191,111 | $ | 210,444 | ||||||||||
Commercial and industrial | 5,487 | 5,815 | 7,001 | 7,801 | 8,478 | |||||||||||||||
Consumer | 326 | 334 | 423 | 440 | 432 | |||||||||||||||
Total Acquired Non-ASC 310-30 Loans | 175,024 | 178,899 | 187,971 | 199,352 | 219,354 | |||||||||||||||
Total loans | $ | 6,918,370 | $ | 6,634,894 | $ | 6,269,493 | $ | 5,997,147 | $ | 5,643,667 | ||||||||||
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
As of | ||||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 1,069,745 | $ | 905,905 | $ | 830,910 | $ | 789,019 | $ | 737,875 | ||||||||||
Interest-bearing demand deposits | 1,057,539 | 1,004,452 | 905,687 | 725,896 | 647,824 | |||||||||||||||
Interest-bearing NOW accounts | 422,329 | 398,823 | 420,207 | 425,464 | 441,476 | |||||||||||||||
Savings and money market accounts | 3,091,965 | 2,780,697 | 2,468,321 | 2,338,828 | 2,187,596 | |||||||||||||||
Time deposits | 2,032,793 | 2,215,794 | 2,292,438 | 2,188,459 | 1,887,608 | |||||||||||||||
Total deposits | $ | 7,674,371 | $ | 7,305,671 | $ | 6,917,563 | $ | 6,467,666 | $ | 5,902,379 | ||||||||||
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
Three Months Ended | ||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | |||||||||||||||||||||
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 | $ | 33,990 | $ | 72 | 0.86 | % | $ | 63,533 | $ | 90 | 0.56 | % | ||||||||||
New loans | 6,342,488 | 58,691 | 3.70 | % | 5,982,383 | 54,025 | 3.53 | % | ||||||||||||||
Acquired loans (4)(5) | 368,305 | 7,898 | 8.58 | % | 409,681 | 14,558 | 14.21 | % | ||||||||||||||
Investment securities | 1,986,083 | 18,561 | 3.74 | % | 1,815,854 | 16,907 | 3.64 | % | ||||||||||||||
Total interest-earning assets | 8,730,866 | 85,222 | 3.90 | % | 8,271,451 | 85,580 | 4.06 | % | ||||||||||||||
Non-earning assets: | ||||||||||||||||||||||
Noninterest-earning assets | 465,617 | 493,487 | ||||||||||||||||||||
Total assets | $ | 9,196,483 | $ | 8,764,938 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,013,185 | $ | 1,712 | 0.69 | % | $ | 999,239 | $ | 1,531 | 0.61 | % | ||||||||||
Interest-bearing NOW accounts | 404,483 | 473 | 0.47 | % | 385,979 | 347 | 0.36 | % | ||||||||||||||
Savings and money market accounts | 2,791,959 | 5,116 | 0.74 | % | 2,662,325 | 4,424 | 0.66 | % | ||||||||||||||
Time deposits (6) | 2,150,522 | 6,217 | 1.17 | % | 2,253,993 | 6,658 | 1.17 | % | ||||||||||||||
FHLB advances and other borrowings (6) | 843,929 | 2,034 | 0.96 | % | 548,290 | 1,554 | 1.11 | % | ||||||||||||||
Total interest-bearing liabilities | $ | 7,204,078 | $ | 15,552 | 0.87 | % | $ | 6,849,826 | $ | 14,514 | 0.84 | % | ||||||||||
Noninterest-bearing liabilities and stockholders’ equity: | ||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 945,494 | $ | 880,828 | ||||||||||||||||||
Other liabilities | 32,072 | 59,740 | ||||||||||||||||||||
Stockholders’ equity | 1,014,839 | 974,544 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,196,483 | $ | 8,764,938 | ||||||||||||||||||
Net interest income | $ | 69,670 | $ | 71,066 | ||||||||||||||||||
Net interest rate spread | 3.03 | % | 3.22 | % | ||||||||||||||||||
Net interest margin | 3.24 | % | 3.41 | % | ||||||||||||||||||
(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.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
Three Months Ended March 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
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 | $ | 33,990 | $ | 72 | 0.86 | % | $ | 86,711 | $ | 66 | 0.31 | % | ||||||||||
New loans | 6,342,488 | 58,691 | 3.70 | % | 4,856,809 | 42,712 | 3.48 | % | ||||||||||||||
Acquired loans (4)(5) | 368,305 | 7,898 | 8.58 | % | 556,923 | 18,576 | 13.34 | % | ||||||||||||||
Investment securities | 1,986,083 | 18,561 | 3.74 | % | 1,576,617 | 14,374 | 3.61 | % | ||||||||||||||
Total interest-earning assets | 8,730,866 | 85,222 | 3.90 | % | 7,077,060 | 75,728 | 4.24 | % | ||||||||||||||
Non-earning assets: | ||||||||||||||||||||||
Noninterest-earning assets | 465,617 | 477,018 | ||||||||||||||||||||
Total assets | $ | 9,196,483 | $ | 7,554,078 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,013,185 | $ | 1,712 | 0.69 | % | $ | 635,500 | $ | 784 | 0.49 | % | ||||||||||
Interest-bearing NOW accounts | 404,483 | 473 | 0.47 | % | 391,158 | 372 | 0.38 | % | ||||||||||||||
Savings and money market accounts | 2,791,959 | 5,116 | 0.74 | % | 2,041,197 | 2,843 | 0.56 | % | ||||||||||||||
Time deposits (6) | 2,150,522 | 6,217 | 1.17 | % | 1,901,109 | 5,294 | 1.12 | % | ||||||||||||||
FHLB advances and other borrowings (6) | 843,929 | 2,034 | 0.96 | % | 1,007,239 | 1,993 | 0.78 | % | ||||||||||||||
Total interest-bearing liabilities | $ | 7,204,078 | $ | 15,552 | 0.87 | % | $ | 5,976,203 | $ | 11,286 | 0.75 | % | ||||||||||
Noninterest-bearing liabilities and stockholders’ equity: | ||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 945,494 | $ | 646,442 | ||||||||||||||||||
Other liabilities | 32,072 | 55,374 | ||||||||||||||||||||
Stockholders’ equity | 1,014,839 | 876,059 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,196,483 | $ | 7,554,078 | ||||||||||||||||||
Net interest income | $ | 69,670 | $ | 64,442 | ||||||||||||||||||
Net interest rate spread | 3.03 | % | 3.49 | % | ||||||||||||||||||
Net interest margin | 3.24 | % | 3.65 | % | ||||||||||||||||||
(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.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
Three Months Ended | ||||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Net Income | $ | 38,989 | $ | 27,896 | $ | 26,064 | $ | 23,504 | $ | 22,452 | ||||||||||
Pre-tax Adjustments | ||||||||||||||||||||
Noninterest income | ||||||||||||||||||||
Less: Gain (loss) on investment securities | 777 | 800 | 749 | 324 | (54 | ) | ||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 56 | 132 | 72 | 1,018 | 240 | |||||||||||||||
Occupancy and equipment | — | 43 | — | — | 103 | |||||||||||||||
Loan and other real estate related expenses | — | — | — | — | — | |||||||||||||||
Professional services | — | — | — | — | — | |||||||||||||||
Data processing and network fees | — | — | — | — | — | |||||||||||||||
Regulatory assessments and insurance | — | — | — | — | — | |||||||||||||||
Amortization of intangibles | — | — | — | — | — | |||||||||||||||
Other operating expenses | 12 | 66 | 7 | — | 7 | |||||||||||||||
Taxes | ||||||||||||||||||||
Tax Effect of adjustments (1) | (9,147 | ) | (160 | ) | (10 | ) | 17 | (146 | ) | |||||||||||
Core Net Income | $ | 29,133 | $ | 27,177 | $ | 25,384 | $ | 24,215 | $ | 22,710 | ||||||||||
Average assets | $ | 9,196,483 | $ | 8,764,938 | $ | 8,247,690 | $ | 7,899,230 | $ | 7,554,078 | ||||||||||
ROA (2) | 1.72 | % | 1.26 | % | 1.25 | % | 1.19 | % | 1.19 | % | ||||||||||
Core ROA (3) | 1.28 | % | 1.23 | % | 1.22 | % | 1.23 | % | 1.21 | % | ||||||||||
(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items. Core tax rate of 36.1% in 2016 and 30-32% in 2017.
(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, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Reported: Net interest income | $ | 69,670 | $ | 71,066 | $ | 67,278 | $ | 64,930 | $ | 64,442 | ||||||||||
FTE adjustment | 1,288 | 1,132 | 989 | 865 | 975 | |||||||||||||||
Core net interest income | $ | 70,958 | $ | 72,198 | $ | 68,267 | $ | 65,795 | $ | 65,417 | ||||||||||
Reported: Noninterest income | $ | 9,987 | $ | 7,919 | $ | 8,142 | $ | 8,222 | $ | 5,434 | ||||||||||
FTE adjustment | 904 | 852 | 824 | 822 | 822 | |||||||||||||||
Less: Gain (loss) on investment securities | 777 | 800 | 749 | 324 | (54 | ) | ||||||||||||||
Core noninterest income | $ | 10,114 | $ | 7,971 | $ | 8,217 | $ | 8,720 | $ | 6,310 | ||||||||||
Reported: Noninterest expense | $ | 35,084 | $ | 33,646 | $ | 33,036 | $ | 33,975 | $ | 33,300 | ||||||||||
Less: | ||||||||||||||||||||
Salaries and employee benefits | 56 | 132 | 72 | 1,018 | 240 | |||||||||||||||
Occupancy and equipment | — | 43 | — | — | 103 | |||||||||||||||
Loan and other real estate related expenses | — | — | — | — | — | |||||||||||||||
Professional services | — | — | — | — | — | |||||||||||||||
Data processing and network fees | — | — | — | — | — | |||||||||||||||
Regulatory assessments and insurance | — | — | — | — | — | |||||||||||||||
Amortization of intangibles | — | — | — | — | — | |||||||||||||||
Other operating expenses | 12 | 66 | 7 | — | 7 | |||||||||||||||
Core noninterest expense | $ | 35,016 | $ | 33,405 | $ | 32,957 | $ | 32,957 | $ | 32,950 | ||||||||||
Efficiency ratio (1) | 43.72 | % | 42.27 | % | 43.46 | % | 46.04 | % | 47.11 | % | ||||||||||
Core efficiency ratio (2) | 42.88 | % | 41.35 | % | 42.75 | % | 43.83 | % | 45.41 | % | ||||||||||
(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 Financial Measures - Tangible Book Value Per Share
(Unaudited)
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||||||||||||
Total assets | $ | 9,533,222 | $ | 9,090,134 | $ | 8,531,152 | $ | 8,221,222 | $ | 7,836,124 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill and other intangible assets | 85,639 | 85,895 | 86,151 | 86,408 | 86,705 | |||||||||||||||
Tangible assets | $ | 9,447,583 | $ | 9,004,239 | $ | 8,445,001 | $ | 8,134,814 | $ | 7,749,419 | ||||||||||
Total stockholders’ equity | $ | 1,055,247 | $ | 982,441 | $ | 966,085 | $ | 923,172 | $ | 889,299 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill and other intangible assets | 85,639 | 85,895 | 86,151 | 86,408 | 86,705 | |||||||||||||||
Tangible stockholders’ equity | $ | 969,608 | $ | 896,546 | $ | 879,934 | $ | 836,764 | $ | 802,594 | ||||||||||
Shares outstanding | 42,432,062 | 41,157,571 | 40,912,571 | 40,537,913 | 40,595,787 | |||||||||||||||
Tangible book value per share | $ | 22.85 | $ | 21.78 | $ | 21.51 | $ | 20.64 | $ | 19.77 | ||||||||||
Average assets | $ | 9,196,483 | $ | 8,764,938 | $ | 8,247,690 | $ | 7,899,230 | $ | 7,554,078 | ||||||||||
Average equity | 1,014,839 | 974,544 | 943,168 | 905,728 | 876,059 | |||||||||||||||
Average goodwill and other intangible assets | 85,766 | 86,029 | 86,276 | 86,564 | 86,917 | |||||||||||||||
Tangible average equity to tangible average assets | 10.2 | % | 10.2 | % | 10.5 | % | 10.5 | % | 10.6 | % | ||||||||||
Tangible common equity ratio | 10.3 | % | 10.0 | % | 10.4 | % | 10.3 | % | 10.4 | % | ||||||||||
For questions please contact:
Matthew Paluch
305-668-5420
IR@fcb1923.com