FCB FINANCIAL HOLDINGS, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - FCB FINANCIAL HOLDINGS, INC.	a8-kcover102417.htm

Exhibit 99.1

FCB Financial Holdings, Inc. Surpasses $10 Billion in Assets and Reports Third Quarter 2017 Financial Results

Weston, Fla. - FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported third quarter 2017 net income of $32.2 million, or $0.70 per share on a fully diluted basis, and adjusted net income of $34.2 million, or $0.74 per share on a fully diluted basis. Net income rose 23% year-over-year and net income per diluted share rose 15%. Adjusted net income rose 35% year-over-year and adjusted net income per diluted share rose 26%. This resulted in a ROA of 128 basis points and an adjusted ROA of 136 basis points.


•	Fully tax equivalent net revenue of $86.5 million;


•	Reported and Adjusted EPS of $0.70 and $0.74 per share, respectively, on a fully diluted basis;


•	New loan portfolio grew sequentially at an annualized rate of 19% when excluding the impact of mortgage sales;


•	New loan fundings of $484.8 million during the quarter and mortgage portfolio sales of $68.4 million;


•	Demand deposits grew by $221.5 million, or 39% annualized, during the quarter;


•	Reported and Adjusted Efficiency ratio of 41.5% and 40.6%, respectively;


•	Reported and Adjusted ROA of 128 and 136 basis points, respectively; and


•	Tangible book value per share was $24.49.

The Company views certain non-operating items, including but not limited to merger related and restructuring charges, gain/(loss) on investment securities and their corresponding tax effect, as adjustments to net income. Non-operating adjustments for the third quarter of 2017 include $51 thousand of stay bonus and severance expense, $125 thousand of other operating expense, including $115 thousand of Hurricane Irma related expenses, and $690 thousand gain on sale of investment securities. Additionally, the Company expects its 2017 annual GAAP tax rate to be between 20-25% 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 adjusted net income, adjusted efficiency ratio, adjusted ROA, tangible book value and tangible book value per share), which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “The third quarter was a milestone quarter for FCB, as we surpassed $10 billion in assets, executed a best in class hurricane response effort and continued our organic momentum with over $410 million of deposit growth and over $480 million of organic loan fundings. Our organic growth and community centric approach continues to differentiate us in the market as we solidify our position as Florida’s largest community banking company.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $246.8 million to $7.5 billion as of September 30, 2017, an increase of 3% from $7.3 billion as of June 30, 2017, and 20% from $6.3 billion as of September 30, 2016.

The Bank’s new loan portfolio totaled $7.2 billion as of September 30, 2017, an increase of 4% from $6.9 billion as of June 30, 2017 and 23% from $5.8 billion as of September 30, 2016. Loan growth during the quarter was a result of $484.8 million of organic new loan fundings, consisting of $260.9 million of commercial and industrial, $115.5 million of commercial real estate and $108.4 million of residential and consumer. Additionally, during the quarter the Company sold $68.4 million of residential loans. As of September 30, 2017, new loans made up 96% of the total loan portfolio as compared to 95% and 93% as of June 30, 2017 and September 30, 2016, respectively.

The Bank’s acquired loan portfolio totaled $333.7 million as of September 30, 2017, a decrease of 5% from $351.0 million as of June 30, 2017 and a decrease of 23% from $431.7 million as of September 30, 2016. The decrease in the current quarter was driven by the resolution of $6.0 million of loans as well as scheduled loan amortization. As of September 30, 2017, acquired loans made up 4% of our total loan portfolio as compared to 5% and 7% as of June 30, 2017 and September 30, 2016, respectively.

Asset Quality

The provision for loan losses of $2.9 million recorded for the third quarter of 2017 includes a $3.3 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 includes an unallocated reserve of $1.5 million related to uncertainty surrounding potential credit and borrower recovery impact due to Hurricane Irma. The provision for new loans served to increase the related allowance to $40.9 million, or 0.57% of the $7.2 billion in new loans outstanding. The nonperforming new loan ratio as of September 30, 2017 was 0.05%.

Deposits and Borrowings

Deposits totaled $8.1 billion as of September 30, 2017, an increase of 5% from $7.7 billion as of June 30, 2017 and an increase of 17% from $6.9 billion as of September 30, 2016. During the third quarter of 2017, demand deposits increased by $221.5 million, or 10%, from June 30, 2017 and increased by $738.1 million, or 43%, from September 30, 2016. Demand deposits represent 31% of total deposits as of September 30, 2017 as compared to 29% and 25% as of June 30, 2017 and September 30, 2016, respectively. The cost of deposits was 88 basis points for the quarter, representing a 6 basis points increase from the second quarter of 2017 and a 17 basis points increase from the third quarter of 2016. The primary driver of the increase over the periods is attributable to the Federal Reserve rate hikes in December 2016, March 2017 and June 2017.

Net Interest Margin and Net Interest Income

The net interest margin for the third quarter of 2017 was 3.17%, an increase of one basis point from the second quarter of 2017 and a decrease of 27 basis points from the third quarter of 2016. The increase from the second quarter of 2017 was due primarily to the 9 basis point increase in new loan yields.

Net interest income totaled $75.8 million in the third quarter of 2017, an increase of 5% from $71.9 million in the second quarter of 2017 and an increase of 13% from $67.3 million in the third quarter of 2016. Interest income totaled $96.8 million for the third quarter of 2017, an increase of 7% from $90.6 million in the second quarter of 2017 and an increase of 20% from $80.8 million in the third quarter of 2016. Interest income from new loans increased by $5.1 million, or 8%, from the second quarter of 2017 due to yield expansion and continued growth in the new loan portfolio. Interest income on acquired loans decreased by $0.2 million, or 3%, from the second quarter due to balance runoff and a reduction in loan resolutions. Interest expense was $21.0 million for the third quarter of 2017, an increase of 13% from $18.7 million in the second quarter of 2017 and an increase of 56% from $13.5 million in the third quarter of 2016. The increase from the second quarter of 2017 was a result of an 8 basis point increase on cost of interest-bearing liabilities associated with increased time deposit duration as well as the impact of the March 2017 and June 2017 Federal Reserve rate hikes on deposit costs.

Noninterest Income and Noninterest Expense

Noninterest income totaled $8.4 million for the third quarter of 2017 as compared to $8.9 million for the second quarter of 2017 and $8.1 million for the third 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 $2.8 million, $1.4 million and $2.2 million, respectively.

Noninterest expense totaled $35.2 million for the third quarter of 2017, in line with $35.3 million in the second quarter of 2017 and an increase of 7% from $33.0 million in the third quarter of 2016. For the quarter, the Company recorded non-operating expenses of $176 thousand consisting of $51 thousand of stay bonus and severance expense and $125 thousand of other operating expense, including $115 thousand of Hurricane Irma related 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 10.6%, 10.6% and 12.7% for the third quarter of 2017 respectively, compared to 10.5%, 10.6% and 12.9% for the second quarter of 2017, respectively. Stockholders’ equity totaled $1.16 billion as of September 30, 2017, an increase of 3.5% from $1.12 billion as of June 30, 2017 due to net income of $32.2 million and $8.1 million of additional paid-in capital partially offset by a decrease in accumulated other comprehensive income of $1.5 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $24.49 as of September 30, 2017.

Conference Call

The Company will host a conference call today, Tuesday, October 24, 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 November 24, 2017, by dialing (877) 344-7529 and entering pass code 10112299.

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

Adjusted net income, adjusted efficiency ratio, adjusted return-on-assets ("adjusted 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 adjusted net income and adjusted ROA, total net interest income, total noninterest income and total noninterest expense in the case of adjusted 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 adjusted net income, adjusted efficiency ratio, and adjusted 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 Adjusted net income nor Adjusted ROA should be viewed as a substitute for net income, nor should Adjusted 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 largest community banking company and the second 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 $10 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
	September 30, 2017			June 30, 2017			March 31, 2017		December 31, 2016		September 30, 2016
	(Dollars in thousands, except share and per share data)
Interest income:
Interest and fees on loans	$	76,465		$	71,516		$	66,589	$	68,583	$	65,748
Interest and dividends on investment securities	20,215			18,921			18,561		16,907		14,955
Other interest income	136			136			72		90		97
Total interest income	96,816			90,573			85,222		85,580		80,800
Interest expense:
Interest on deposits	17,134			15,625			13,518		12,960		11,736
Interest on borrowings	3,901			3,061			2,034		1,554		1,786
Total interest expense	21,035			18,686			15,552		14,514		13,522
Net interest income	75,781			71,887			69,670		71,066		67,278
Provision for loan losses	2,871			2,115			1,643		2,249		1,990
Net interest income after provision for loan losses	72,910			69,772			68,027		68,817		65,288
Noninterest income:
Service charges and fees	941			902			915		935		884
Loan and other fees	2,831			3,048			2,495		2,488		2,145
Bank-owned life insurance income	1,422			1,414			1,414		1,333		1,288
Income from resolution of acquired assets	466			320			762		1,135		1,052
Gain (loss) on sales of other real estate owned	(143		)	(23		)	45		209		925
Gain (loss) on investment securities	690			255			777		800		749
Other noninterest income	2,218			2,957			3,579		1,019		1,099
Total noninterest income	8,425			8,873			9,987		7,919		8,142
Noninterest expense:
Salaries and employee benefits	20,860			21,486			20,497		19,261		18,711
Occupancy and equipment expenses	3,283			3,336			3,397		3,505		3,480
Loan and other real estate related expenses	837			1,188			1,227		1,467		1,834
Professional services	1,390			1,508			1,352		1,585		1,180
Data processing and network	3,397			3,090			2,965		2,920		2,882
Regulatory assessments and insurance	2,330			2,184			2,177		2,055		1,860
Amortization of intangibles	256			256			256		256		257
Marketing and promotions	1,130			947			1,346		730		956
Other operating expenses	1,756			1,257			1,867		1,867		1,876
Total noninterest expense	35,239			35,252			35,084		33,646		33,036
Income before income tax expense	46,096			43,393			42,930		43,090		40,394
Income tax expense	13,936			8,312			3,941		15,194		14,330
Net income	$	32,160		$	35,081		$	38,989	$	27,896	$	26,064
Earnings per share:
Basic	$	0.74		$	0.82		$	0.93	$	0.68	$	0.64
Diluted	$	0.70		$	0.76		$	0.86	$	0.64	$	0.60
Weighted average shares outstanding:
Basic	43,333,947			42,659,101			41,730,610		40,911,326		40,608,706
Diluted	46,189,468			46,042,552			45,573,213		43,728,282		43,150,813

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
	(Dollars in thousands)
Assets:
Cash and due from banks	$	62,695		$	62,578		$	70,908		$	52,903		$	67,324
Interest-earning deposits in other banks	49,732			37,424			62,929			30,973			20,010
Investment securities:
Available for sale securities, at fair value	2,102,711			2,046,488			1,976,252			1,876,434			1,672,089
Federal Home Loan Bank and other bank stock, at cost	61,838			68,372			55,652			51,656			43,486
Total investment securities	2,164,549			2,114,860			2,031,904			1,928,090			1,715,575
Loans held for sale	13,503			24,145			21,251			20,220			15,748
Loans:
New loans	7,164,480			6,900,380			6,552,214			6,259,406			5,837,759
Acquired loans	333,725			351,021			366,156			375,488			431,734
Allowance for loan losses	(44,291		)	(41,334		)	(39,431		)	(37,897		)	(35,785		)
Loans, net	7,453,914			7,210,067			6,878,939			6,596,997			6,233,708
Premises and equipment, net	35,741			36,111			36,278			36,652			38,112
Other real estate owned	17,599			18,540			18,761			19,228			25,654
Goodwill and other intangible assets	85,127			85,383			85,639			85,895			86,151
Deferred tax assets, net	51,521			50,612			56,178			61,391			59,081
Bank-owned life insurance	199,672			198,250			198,089			198,438			172,105
Other assets	95,279			63,422			72,346			59,347			97,684
Total assets	$	10,229,332		$	9,901,392		$	9,533,222		$	9,090,134		$	8,531,152
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	1,242,562		$	1,135,922		$	1,069,745		$	905,905		$	830,910
Interest-bearing	4,486,085			4,489,554			4,571,833			4,183,972			3,794,215
Total transaction accounts	5,728,647			5,625,476			5,641,578			5,089,877			4,625,125
Time deposits	2,377,446			2,069,714			2,032,793			2,215,794			2,292,438
Total deposits	8,106,093			7,695,190			7,674,371			7,305,671			6,917,563
Borrowings	874,222			1,019,494			739,519			751,103			568,175
Other liabilities	92,944			69,430			64,085			50,919			79,329
Total liabilities	9,073,259			8,784,114			8,477,975			8,107,693			7,565,067

Stockholders’ Equity:
Class A common stock	46			46			45			44			41
Class B common stock	—			—			—			—			3
Additional paid-in capital	924,462			916,360			898,394			875,314			866,673
Retained earnings	294,681			262,521			227,440			188,451			160,555
Accumulated other comprehensive income (loss)	14,257			15,724			6,741			(3,995		)	16,186
Treasury stock, at cost	(77,373		)	(77,373		)	(77,373		)	(77,373		)	(77,373		)
Total stockholders’ equity	1,156,073			1,117,278			1,055,247			982,441			966,085
Total liabilities and stockholders’ equity	$	10,229,332		$	9,901,392		$	9,533,222		$	9,090,134		$	8,531,152

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Key Metrics

(Unaudited)



	Three Months Ended
	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016
Performance Ratios:
Interest rate spread	2.90	%	2.92	%	3.03	%	3.22	%	3.26	%
Net interest margin	3.17	%	3.16	%	3.24	%	3.41	%	3.44	%
Return on average assets	1.28	%	1.47	%	1.72	%	1.26	%	1.25	%
Return on average equity	11.21	%	12.95	%	15.58	%	11.36	%	10.96	%
Efficiency ratio (company level)	41.54	%	43.33	%	43.72	%	42.27	%	43.46	%
Average interest-earning assets to average interest bearing liabilities	124.57	%	123.38	%	121.19	%	120.75	%	120.89	%
Loans receivable to deposits	92.50	%	94.23	%	90.15	%	90.82	%	90.63	%
Yield on interest-earning assets	3.99	%	3.93	%	3.90	%	4.06	%	4.09	%
Cost of interest-bearing liabilities	1.09	%	1.01	%	0.87	%	0.84	%	0.83	%
Asset and Credit Quality Ratios - Total loans:
Nonperforming loans to loans receivable	0.28	%	0.22	%	0.24	%	0.39	%	0.27	%
Nonperforming assets to total assets	0.38	%	0.35	%	0.37	%	0.50	%	0.50	%
ALL to nonperforming assets	114.60	%	120.11	%	111.81	%	84.08	%	83.92	%
ALL to total gross loans	0.59	%	0.57	%	0.57	%	0.57	%	0.57	%
Asset and Credit Quality Ratios - New Loans:
Nonperforming new loans to new loans receivable	0.05	%	0.02	%	0.02	%	0.04	%	0.01	%
New loan ALL to total gross new loans	0.57	%	0.55	%	0.54	%	0.54	%	0.52	%
Asset and Credit Quality Ratios - Acquired Loans:
Nonperforming acquired loans to acquired loans receivable	5.23	%	4.05	%	4.15	%	6.18	%	3.76	%
Acquired loan ALL to total gross acquired loans	1.01	%	1.06	%	1.11	%	1.16	%	1.22	%
Capital Ratios (Company):
Average equity to average total assets	11.4	%	11.3	%	11.0	%	11.1	%	11.4	%
Tangible average equity to tangible average assets	10.6	%	10.5	%	10.2	%	10.2	%	10.5	%
Tangible common equity ratio (1)	10.6	%	10.5	%	10.3	%	10.0	%	10.4	%
Tier 1 leverage ratio	10.6	%	10.6	%	10.5	%	10.3	%	10.3	%
Tier 1 risk-based capital ratio	12.2	%	12.3	%	12.2	%	11.9	%	11.8	%
Total risk-based capital ratio	12.7	%	12.9	%	12.8	%	12.5	%	12.0	%
Capital Ratios (Bank):
Average equity to average total assets	10.2	%	10.1	%	10.0	%	10.2	%	10.6	%
Tangible common equity ratio	9.3	%	9.3	%	9.1	%	9.0	%	9.5	%
Tier 1 leverage ratio	9.4	%	9.3	%	9.3	%	9.3	%	9.6	%
Tier 1 risk-based capital ratio	10.8	%	10.9	%	10.9	%	10.9	%	11.1	%
Total risk-based capital ratio	11.4	%	11.4	%	11.5	%	11.4	%	11.5	%

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

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Loan Composition

(Unaudited)



	As of
	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016
	(Dollars in thousands)
New Loans:
Commercial real estate	$	1,934,246	$	1,811,977	$	1,703,790	$	1,438,427	$	1,272,150
Owner-occupied commercial real estate	933,439		856,050		790,062		769,814		596,131
1-4 single family residential	2,126,006		2,133,883		2,084,966		2,012,856		1,982,340
Construction, land and development	682,354		706,866		627,894		651,253		639,626
Home equity loans and lines of credit	52,945		47,686		50,815		49,819		47,508
Total real estate loans	$	5,728,990	$	5,556,462	$	5,257,527	$	4,922,169	$	4,537,755
Commercial and industrial	1,431,445		1,339,591		1,290,456		1,332,869		1,295,324
Consumer	4,045		4,327		4,231		4,368		4,680
Total new loans	$	7,164,480	$	6,900,380	$	6,552,214	$	6,259,406	$	5,837,759

Acquired ASC 310-30 Loans:
Commercial real estate	$	111,416	$	120,781	$	129,317	$	130,628	$	160,219
1-4 single family residential	28,044		28,792		30,115		31,476		34,329
Construction, land and development	13,791		15,060		15,912		17,657		25,156
Total real estate loans	$	153,251	$	164,633	$	175,344	$	179,761	$	219,704
Commercial and industrial	13,145		13,612		14,234		15,147		21,985
Consumer	1,447		1,478		1,554		1,681		2,074
Total Acquired ASC 310-30 Loans	$	167,843	$	179,723	$	191,132	$	196,589	$	243,763

Acquired Non-ASC 310-30 Loans:
Commercial real estate	$	37,896	$	38,043	$	38,352	$	38,786	$	39,769
Owner-occupied commercial real estate	18,097		18,266		18,465		18,477		20,042
1-4 single family residential	60,374		62,485		64,669		66,854		71,302
Construction, land and development	5,890		5,890		5,890		6,338		6,338
Home equity loans and lines of credit	38,007		40,809		41,835		42,295		43,096
Total real estate loans	$	160,264	$	165,493	$	169,211	$	172,750	$	180,547
Commercial and industrial	5,284		5,499		5,487		5,815		7,001
Consumer	334		306		326		334		423
Total Acquired Non-ASC 310-30 Loans	$	165,882	$	171,298	$	175,024	$	178,899	$	187,971
Total loans	$	7,498,205	$	7,251,401	$	6,918,370	$	6,634,894	$	6,269,493

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Deposit Composition

(Unaudited)



	As of
	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	1,242,562	$	1,135,922	$	1,069,745	$	905,905	$	830,910
Interest-bearing demand deposits	1,232,116		1,117,280		1,057,539		1,004,452		905,687
Interest-bearing NOW accounts	368,796		401,845		422,329		398,823		420,207
Savings and money market accounts	2,885,173		2,970,429		3,091,965		2,780,697		2,468,321
Time deposits	2,377,446		2,069,714		2,032,793		2,215,794		2,292,438
Total deposits	$	8,106,093	$	7,695,190	$	7,674,371	$	7,305,671	$	6,917,563

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)



	Three Months Ended
	September 30, 2017						June 30, 2017
	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	$	39,646	$	136	1.36	%	$	51,078	$	136	1.07	%
New loans (4)	6,982,158		69,709		3.91	%	6,695,380		64,575		3.82	%
Acquired loans (4)(5)	341,056		6,756		7.92	%	355,721		6,941		7.80	%
Investment securities	2,134,162		20,215		3.71	%	2,025,060		18,921		3.70	%
Total interest-earning assets	$	9,497,022	$	96,816	3.99	%	$	9,127,239	$	90,573	3.93	%
Non-earning assets:
Noninterest-earning assets	473,981						475,115
Total assets	$	9,971,003					$	9,602,354
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,147,669	$	2,694	0.93	%	$	1,073,823	$	2,289	0.85	%
Interest-bearing NOW accounts	398,322		763		0.76	%	419,774		637		0.61	%
Savings and money market accounts	2,885,716		6,901		0.95	%	3,071,859		6,857		0.90	%
Time deposits (6)	2,161,905		6,776		1.24	%	2,007,097		5,842		1.17	%
FHLB advances and other borrowings (6)	1,030,437		3,901		1.48	%	825,154		3,061		1.47	%
Total interest-bearing liabilities	$	7,624,049	$	21,035	1.09	%	$	7,397,707	$	18,686	1.01	%
Noninterest-bearing liabilities and stockholders’ equity:
Noninterest-bearing demand deposits	$	1,149,981					$	1,070,311
Other liabilities	59,139						47,782
Stockholders’ equity	1,137,834						1,086,554
Total liabilities and stockholders’ equity	$	9,971,003					$	9,602,354
Net interest income			$	75,781					$	71,887
Net interest spread					2.90	%					2.92	%
Net interest margin					3.17	%					3.16	%

(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 September 30,
	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	$	39,646	$	136	1.36	%	$	71,489	$	97	0.53	%
New loans (4)	6,982,158		69,709		3.91	%	5,595,402		49,831		3.48	%
Acquired loans (4)(5)	341,056		6,756		7.92	%	447,232		15,917		14.24	%
Investment securities	2,134,162		20,215		3.71	%	1,643,102		14,955		3.56	%
Total interest-earning assets	$	9,497,022	$	96,816	3.99	%	$	7,757,225	$	80,800	4.09	%
Non-earning assets:
Noninterest-earning assets	473,981						490,465
Total assets	$	9,971,003					$	8,247,690
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,147,669	$	2,694	0.93	%	$	761,462	$	1,053	0.55	%
Interest-bearing NOW accounts	398,322		763		0.76	%	421,050		386		0.36	%
Savings and money market accounts	2,885,716		6,901		0.95	%	2,375,041		3,932		0.66	%
Time deposits (6)	2,161,905		6,776		1.24	%	2,167,355		6,365		1.17	%
FHLB advances and other borrowings (6)	1,030,437		3,901		1.48	%	691,901		1,786		1.01	%
Total interest-bearing liabilities	$	7,624,049	$	21,035	1.09	%	$	6,416,809	$	13,522	0.83	%
Noninterest-bearing liabilities and stockholders’ equity:
Noninterest-bearing demand deposits	$	1,149,981					$	810,374
Other liabilities	59,139						77,339
Stockholders’ equity	1,137,834						943,168
Total liabilities and stockholders’ equity	$	9,971,003					$	8,247,690
Net interest income			$	75,781					$	67,278
Net interest spread					2.90	%					3.26	%
Net interest margin					3.17	%					3.44	%

(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.



	Year to date September 30,
	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	$	41,592	$	344	1.11	%	$	83,538	$	259	0.41	%
New loans (4)	6,675,685		192,975		3.81	%	5,231,893		138,617		3.49	%
Acquired loans (4)(5)	354,928		21,595		8.11	%	503,869		51,061		13.51	%
Investment securities	2,048,977		57,697		3.71	%	1,604,283		43,799		3.60	%
Total interest-earning assets	$	9,121,182	$	272,611	3.95	%	$	7,423,583	$	233,736	4.16	%
Non-earning assets:
Noninterest-earning assets	471,602						479,290
Total assets	$	9,592,784					$	7,902,873
Interest-bearing liabilities:
Interest-bearing demand deposits	$	1,078,718	$	6,694	0.83	%	$	689,790	$	2,680	0.52	%
Interest-bearing NOW accounts	407,504		1,874		0.61	%	421,765		1,191		0.38	%
Savings and money market accounts	2,916,855		18,874		0.87	%	2,214,231		10,193		0.62	%
Time deposits (6)	2,106,550		18,835		1.20	%	2,014,943		17,305		1.15	%
FHLB advances and other borrowings (6)	900,523		8,996		1.32	%	862,418		5,717		0.87	%
Total interest-bearing liabilities	$	7,410,150	$	55,273	1.00	%	$	6,203,147	$	37,086	0.80	%
Noninterest-bearing liabilities and stockholders’ equity:
Noninterest-bearing demand deposits	$	1,056,011					$	725,141
Other liabilities	46,430						66,021
Stockholders’ equity	1,080,193						908,564
Total liabilities and stockholders’ equity	$	9,592,784					$	7,902,873
Net interest income			$	217,338					$	196,650
Net interest spread					2.95	%					3.36	%
Net interest margin					3.19	%					3.54	%

(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 - Adjusted Net Income

(Unaudited)



	Three Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
	(Dollars in thousands)
Net Income	$	32,160		$	35,081		$	38,989		$	27,896		$	26,064
Pre-tax Adjustments
Noninterest income
Less: Gain (loss) on investment securities	690			255			777			800			749
Noninterest expenses
Salaries and employee benefits	51			223			56			132			72
Occupancy and equipment	—			—			—			43			—
Loan and other real estate related expenses	—			—			—			—			—
Professional services	—			—			—			—			—
Data processing and network fees	—			—			—			—			—
Regulatory assessments and insurance	—			—			—			—			—
Amortization of intangibles	—			—			—			—			—
Other operating expenses	125			21			12			66			7
Taxes
Tax Effect of adjustments (1)	2,541			(2,534		)	(9,147		)	(160		)	(10		)
Adjusted Net Income	$	34,187		$	32,536		$	29,133		$	27,177		$	25,384

Average assets	$	9,971,003		$	9,602,354		$	9,196,483		$	8,764,938		$	8,247,690
ROA (2)	1.28		%	1.47		%	1.72		%	1.26		%	1.25		%
Adjusted ROA (3)	1.36		%	1.36		%	1.28		%	1.23		%	1.22		%

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items. Adjusted tax rate of 36% in 2016 and 20-25% in 2017.

(2) Return on assets: Annualized net income / average assets

(3) Adjusted return on assets: Annualized adjusted net income / average assets

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures - Adjusted Efficiency Ratio

(Unaudited)



	Three Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
	(Dollars in thousands)
Reported: Net interest income	$	75,781		$	71,887		$	69,670		$	71,066		$	67,278
FTE adjustment	1,357			1,348			1,288			1,132			989
Adjusted net interest income	$	77,138		$	73,235		$	70,958		$	72,198		$	68,267

Reported: Noninterest income	$	8,425		$	8,873		$	9,987		$	7,919		$	8,142
FTE adjustment	894			904			904			852			824
Less: Gain (loss) on investment securities	690			255			777			800			749
Adjusted noninterest income	$	8,629		$	9,522		$	10,114		$	7,971		$	8,217
Reported: Noninterest expense	$	35,239		$	35,252		$	35,084		$	33,646		$	33,036
Less:
Salaries and employee benefits	51			223			56			132			72
Occupancy and equipment	—			—			—			43			—
Loan and other real estate related expenses	—			—			—			—			—
Professional services	—			—			—			—			—
Data processing and network fees	—			—			—			—			—
Regulatory assessments and insurance	—			—			—			—			—
Amortization of intangibles	—			—			—			—			—
Other operating expenses	125			21			12			66			7
Adjusted noninterest expense	$	35,063		$	35,008		$	35,016		$	33,405		$	32,957
Efficiency ratio (1)	41.54		%	43.33		%	43.72		%	42.27		%	43.46		%
Adjusted efficiency ratio (2)	40.58		%	41.99		%	42.88		%	41.35		%	42.75		%

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

(2) Adjusted efficiency ratio: Adjusted noninterest expense less amortization of intangibles / (adjusted noninterest income + adjusted net interest income)

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

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

(Unaudited)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
	(Dollars in thousands, except share and per share data)
Total assets	$	10,229,332		$	9,901,392		$	9,533,222		$	9,090,134		$	8,531,152
Less:
Goodwill and other intangible assets	85,127			85,383			85,639			85,895			86,151
Tangible assets	$	10,144,205		$	9,816,009		$	9,447,583		$	9,004,239		$	8,445,001
Total stockholders’ equity	$	1,156,073		$	1,117,278		$	1,055,247		$	982,441		$	966,085
Less:
Goodwill and other intangible assets	85,127			85,383			85,639			85,895			86,151
Tangible stockholders’ equity	$	1,070,946		$	1,031,895		$	969,608		$	896,546		$	879,934
Shares outstanding	43,728,302			43,208,418			42,432,062			41,157,571			40,912,571
Tangible book value per share	$	24.49		$	23.88		$	22.85		$	21.78		$	21.51
Average assets	$	9,971,003		$	9,602,354		$	9,196,483		$	8,764,938		$	8,247,690
Average equity	$	1,137,834		$	1,086,554		$	1,014,839		$	974,544		$	943,168
Average goodwill and other intangible assets	$	85,257		$	85,511		$	85,766		$	86,029		$	86,276
Tangible average equity to tangible average assets	10.6		%	10.5		%	10.2		%	10.2		%	10.5		%
Tangible common equity ratio	10.6		%	10.5		%	10.3		%	10.0		%	10.4		%

For questions please contact:

Matthew Paluch

305-668-5420

IR@fcb1923.com

FCB FINANCIAL HOLDINGS, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 24, 2017

Attached files

FCB FINANCIAL HOLDINGS, INC. Reports