FCB Financial Holdings, Inc. Reports Record First Quarter 2016 Financial Results

WESTON, Fla.--()--FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported first quarter 2016 net income of $22.5 million, or $0.52 per share on a fully diluted basis, and record core net income of $22.7 million, or $0.53 per share on a fully diluted basis. Core net income rose 26% year-over-year and core net income per diluted share rose 24%. These resulted in a ROA of 119 basis points and a core ROA of 121 basis points, and continue to reflect improvements on a year-over-year basis.

  • Total net revenue of $69.9 million;
  • Core EPS of $0.53 per share on a fully diluted basis;
  • Total loan portfolio grew sequentially at an annualized rate of 35%;
  • New loan fundings of $512.1 million during the quarter;
  • Total deposits grew sequentially at an annualized rate of 35%;
  • Total deposits grew by $472 million during the quarter;
  • Demand deposits grew by $140 million, or 45% annualized, during the quarter;
  • Core efficiency ratio of 45.4%;
  • Core ROA of 121 basis points; and
  • Tangible book value per share was $19.77.

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 2016 include $0.2 million of severance and other operating expenses, $0.1 million of cease use expense related to branch closures and $54 thousand loss on sale of 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, “This was another record quarter for our Company, highlighted by new loan and deposit growth in excess of $450 million. This continued momentum across our fundamental core businesses is creating a foundation for sustainable growth and producing strong financial results within a framework of safety and soundness.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $450.5 million to $5.6 billion at March 31, 2016, an increase of 9% from $5.2 billion as of December 31, 2015 and 37% from $4.1 billion as of March 31, 2015.

The Bank’s new loan portfolio totaled $5.1 billion as of March 31, 2016, an increase of 11% from $4.6 billion as of December 31, 2015 and 52% from $3.4 billion as of March 31, 2015. Loan growth during the quarter was a result of $512.1 million of new loan fundings, consisting of $327.3 million of organic production and $184.7 million of purchased residential mortgages. Organic loan production for the quarter consisted of $134.8 million of commercial and industrial, $76.0 million of commercial real estate and $116.5 million of residential and consumer. As the acquired portfolio continues to resolve, the Bank may periodically supplement organic production with high quality purchased residential mortgages as part of its overall balance sheet management strategy. As of March 31, 2016 new loans made up 91% of the total loan portfolio as compared to 89% and 81% as of December 31, 2015 and March 31, 2015, respectively.

The Bank’s acquired loan portfolio totaled $535.1 million as of March 31, 2016, a decrease of 8% from $582.4 million as of December 31, 2015 and a decrease of 30% from $764.6 million as of March 31, 2015. The decrease in the current quarter was driven by the resolution of $31.4 million of loans as well as scheduled loan amortization. As of March 31, 2016, acquired loans made up 9% of our total loan portfolio as compared to 11% and 19% as of December 31, 2015 and March 31, 2015, respectively.

Asset Quality

The provision for loan losses of $1.4 million recorded for the first quarter of 2016 includes a $2.6 million provision for new loans and net recoupment of valuation allowance of $1.2 million for the acquired loan portfolio due to recoveries and better than expected performance on resolution of acquired loans. The provision for new loans served to increase the related allowance to $26.3 million, or 0.52% of the $5.1 billion in new loans outstanding. The nonperforming new loan ratio as of March 31, 2016 was 0.02%.

Deposits and Borrowings

Deposits totaled $5.9 billion as of March 31, 2016, an increase of 9% from $5.4 billion as of December 31, 2015 and an increase of 40% from $4.2 billion as of March 31, 2015. During the first quarter of 2016, demand deposits increased by $140.2 million, or 11%, from December 31, 2015 and increased by $594.1 million, or 75%, from March 31, 2015. Demand deposits represent 23% of total deposits as of March 31, 2016 as compared to 23% and 19% as of December 31, 2015 and March 31, 2015, respectively. The cost of deposits was 66 basis points for the quarter, representing a 6 basis point increase from the fourth quarter of 2015 and an 11 basis point increase from the first quarter of 2015.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2016 was 3.65%, a decrease of 4 basis points from the fourth quarter of 2015 and an increase of 7 basis points from the first quarter of 2015. The decrease from the fourth quarter of 2015 was due primarily to an increase of cost of time deposits and borrowings more than offsetting the increase in yield on the new loan portfolio.

Net interest income totaled $64.4 million in the first quarter of 2016, an increase of 4% from $62.0 million in the fourth quarter of 2015 and an increase of 32% from $48.9 million in the first quarter of 2015. Interest income totaled $75.7 million for the first quarter of 2016, an increase of 6% from $71.2 million in the fourth quarter of 2015 and an increase of 37% from $55.4 million in the first quarter of 2015. Interest income from new loans increased by $5.5 million, or 15%, from the fourth quarter of 2015 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $1.1 million, or 6%, from the fourth quarter as balance runoff more than offset better than expected cash flow performance. Interest expense was $11.3 million for the first quarter of 2016, an increase of 23% from $9.2 million in the fourth quarter of 2015 and an increase 72% from $6.6 million in the first quarter of 2015. The increase from the fourth quarter of 2015 was a result of an increase of $395.2 million of average interest-bearing liabilities coupled with increased costs associated with the addition of longer duration deposits and borrowings.

Noninterest Income and Noninterest Expense

Noninterest income totaled $5.4 million for the first quarter of 2016 as compared to $7.5 million for the fourth quarter of 2015 and ($54.1) million for the first quarter of 2015. The primary components of noninterest income for the quarter were loan and other fees and bank-owned life insurance income of $2.0 million and $1.3 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, 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 $33.3 million for the first quarter of 2016, in line with expense of $33.2 million in the fourth quarter of 2015 and an increase of 9% from $30.7 million in the first quarter of 2015. For the quarter, the Company recorded non-core expenses of $0.3 million consisting of severance and other salary expense of $0.2 million and cease use expense of $0.1 million relating to branch closures.

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 10.4%, 9.6% and 11.1% for the first quarter of 2016 respectively, compared to 10.9%, 10.3% and 12.1% for the fourth quarter of 2015, respectively. Stockholders’ equity totaled $889.3 million as of March 31, 2016, an increase of 1.5% from $876.1 million as of December 31, 2015 as net income of $22.5 million was partially offset by $13.6 million in treasury stock repurchases. During the quarter, the Company repurchased 421,564 shares at a cost of $13.6 million. Tangible book value per common share is $19.77 as of March 31, 2016.

Conference Call

The Company will host a conference call today, Thursday, April 21, 2016 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 21, 2016, by dialing (877) 344-7529 and entering pass code 10083380.

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.

With $7.8 billion in assets, Florida Community Bank (FCB) is the third largest Florida-based independent bank. Listed on the New York Stock Exchange, (NYSE: FCB), the bank serves the state with 47 full service banking centers. The presence of FCB blankets both Florida coasts from Daytona Beach to Miami-Dade, Naples through Tampa Bay, as well as the I-4 Corridor. FCB is among the most highly capitalized banks in the state with capital ratios exceeding the regulatory standard to be considered “well capitalized.” Complete information outlining the depth and breadth of the company is found at www.FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
         
Three Months Ended
March 31,

December 31,

September 30, June 30, March 31,
2016 2015 2015 2015   2015
(Dollars in thousands, except share and per share data)
 

Interest income:

Interest and fees on loans $ 61,288 $ 56,945 $ 51,670 $ 44,202 $ 43,306
Interest and dividends on investment securities 14,374 14,147 13,315 13,169 12,110
Other interest income   66   65   38   40   33
Total interest income   75,728   71,157   65,023   57,411   55,449
Interest expense:
Interest on deposits 9,293 7,719 6,846 5,991 5,585
Interest on borrowings   1,993   1,469   1,408   1,246   980
Total interest expense   11,286   9,188   8,254   7,237   6,565
Net interest income 64,442 61,969 56,769 50,174 48,884
Provision for loan losses   1,440   2,329   675   2,470   1,349
Net interest income after provision for loan losses   63,002   59,640   56,094   47,704   47,535
Noninterest income:
Service charges and fees 806 826 823 778 757
Loan and other fees 2,014 2,425 1,783 1,906 2,497
Bank-owned life insurance income 1,285 1,315 1,101 1,097 1,097
FDIC loss share indemnification loss - - - - (65,529)
Income from resolution of acquired assets 680 1,110 2,225 2,898 3,372
Gain (loss) on sales of other real estate owned (110) 709 228 5,605 1,565
Gain (loss) on investment securities (54) (28) 166 761 1,007
Other noninterest income   813   1,186   746   1,107   1,145
Total noninterest income   5,434   7,543   7,072   14,152   (54,089)
Noninterest expense:
Salaries and employee benefits 18,645 17,750 16,840 17,856 16,575
Occupancy and equipment expenses 3,572 3,946 3,368 3,806 3,277
Loan and other real estate related expenses 1,820 2,300 1,939 1,425 2,076
Professional services 1,337 1,651 1,166 1,189 1,406
Data processing and network 2,863 2,719 2,433 2,801 2,718
Regulatory assessments and insurance 2,117 2,066 1,919 2,092 2,119
Amortization of intangibles 379 400 400 407 424
Other operating expenses   2,567   2,369   2,641   2,471   2,055
Total noninterest expense   33,300   33,201   30,706   32,047   30,650
Income (loss) before income tax expense (benefit) 35,136 33,982 32,460 29,809 (37,204)
Income tax expense (benefit)   12,684   4,233   11,320   10,433   (20,330)
Net income (loss) $ 22,452 $ 29,749 $ 21,140 $ 19,376 $ (16,874)
 
Earnings (loss) per share:
Basic $ 0.55 $ 0.73 $ 0.51 $ 0.47 $ (0.41)
Diluted $ 0.52 $ 0.68 $ 0.48 $ 0.45 $ (0.41)
 
Weighted average shares outstanding:
Basic 40,698,866 40,976,006 41,381,482 41,428,588 41,421,854
Diluted 42,840,157 43,643,408 43,798,378 43,106,131 41,421,854
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
             
March 31,

December 31,

September 30,

June 30, March 31,
2016

2015

2015

2015 2015
(Dollars in thousands)
Assets:
Cash and due from banks $   48,449 $   44,696 $   38,045 $   32,161 $   46,043
Interest-earning deposits in other banks 77,624 57,764 46,714 109,125 66,034
Investment securities:
Available for sale securities, at fair value 1,525,145 1,524,622 1,467,819 1,430,149 1,447,776
Federal Home Loan Bank and other bank stock,

at cost

    59,321     59,477     65,955     70,505     65,289
Total investment securities     1,584,466     1,584,099     1,533,774     1,500,654     1,513,065
Loans held for sale 900 2,514 2,573 4,782 1,308
Loans:
New loans 5,108,538 4,610,763 4,158,997 3,807,547 3,354,452
Acquired loans 535,129 582,424 647,139 720,175 764,597
Allowance for loan losses     (31,995)     (29,126)     (27,394)     (27,046)     (24,513)
Loans, net     5,611,672     5,164,061     4,778,742     4,500,676     4,094,536
Premises and equipment, net 36,686 36,954 37,351 37,641 38,291
Other real estate owned 43,522 39,340 40,405 42,654 75,017
Goodwill and other intangible assets 86,705 87,084 87,484 87,884 88,291
Deferred tax assets, net 74,420 75,176 78,090 76,720 69,656
Bank-owned life insurance 169,531 168,246 166,931 140,830 139,733
Other assets     102,149     71,552     78,580     74,071     85,109

Total assets

$   7,836,124 $   7,331,486 $   6,888,689 $   6,607,198 $   6,217,083
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 737,875 $ 637,047 $ 618,741 $ 621,845 $ 595,389
Interest-bearing     3,276,896     2,935,418     2,678,410     2,586,491     2,411,142
Total transaction accounts 4,014,771 3,572,465 3,297,151 3,208,336 3,006,531
Time deposits     1,887,608     1,858,173     1,524,693     1,257,751     1,219,470
Total deposits 5,902,379 5,430,638 4,821,844 4,466,087 4,226,001
Borrowings 950,462 983,183 1,149,920 1,232,893 1,091,118
Other liabilities     93,984     41,556     61,047     50,739     53,130
Total liabilities     6,946,825     6,455,377     6,032,811     5,749,719     5,370,249
Stockholders' Equity:
Class A common stock 39 39 39 37 37
Class B common stock 4 4 4 6 6
Additional paid-in capital 853,726 850,609 846,017 839,265 836,720
Retained earnings 110,987 88,535 58,786 37,646 18,270
Accumulated other comprehensive income (loss) (8,240) (9,443) (2,905) 78 10,552
Treasury stock, at cost     (67,217)     (53,635)     (46,063)     (19,553)     (18,751)
Total stockholders' equity     889,299     876,109     855,878     857,479     846,834
Total liabilities and stockholders' equity $   7,836,124 $   7,331,486 $   6,888,689 $   6,607,198 $   6,217,083
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
  Three Months Ended
  March 31,   December 31,  

September 30,

  June 30,   March 31,
  2016 2015

2015

2015 2015

Performance Ratios

Interest rate spread 3.49% 3.56% 3.49% 3.28% 3.42%
Net interest margin 3.65% 3.69% 3.62% 3.43% 3.58%
Return on average assets 1.19% 1.66% 1.26% 1.22% -1.13%
Return on average equity 10.28% 13.65% 9.73% 8.99% -7.97%
Efficiency ratio (company level) 47.11% 47.19% 47.47% 49.19% -580.71%
Average interest-earning assets to average
interest bearing liabilities 118.42% 119.25% 120.40% 121.22% 121.55%
Loans receivable to deposits 95.62% 95.63% 99.67% 101.38% 97.47%
Yield on interest-earning assets 4.24% 4.21% 4.12% 3.88% 4.00%
Cost of interest-bearing liabilities 0.75% 0.65% 0.63% 0.60% 0.58%
Asset and Credit Quality Ratios - Total loans
Nonperforming loans to loans receivable 0.33% 0.35% 0.36% 0.39% 0.40%
Nonperforming assets to total assets 0.79% 0.79% 0.84% 0.91% 1.47%
ALL to nonperforming assets 51.51% 50.47% 47.43% 44.83% 26.77%
ALL to total gross loans 0.57% 0.56% 0.57% 0.60% 0.60%
Asset and Credit Quality Ratios - New Loans
Nonperforming new loans to new loans receivable 0.02% 0.03% 0.01% 0.00% 0.00%
New loan ALL to total gross new loans 0.52% 0.52% 0.52% 0.51% 0.52%
Asset and Credit Quality Ratios - Acquired
Loans
Nonperforming acquired loans to acquired
loans receivable 3.32% 2.90% 2.61% 2.45% 2.16%
Acquired loan ALL to total gross acquired loans 1.06% 0.92% 0.92% 1.04% 0.94%
Capital Ratios (Company)
Average equity to average total assets 11.6% 12.1% 13.0% 13.5% 14.2%
Tangible average equity to tangible average
assets 10.6% 11.0% 11.8% 12.3% 12.9%
Tangible common equity ratio (1) 10.4% 10.9% 11.3% 11.8% 12.4%
Tier 1 leverage ratio 9.6% 10.3% 10.6% 11.3% 11.7%
Tier 1 risk-based capital ratio 11.1% 12.1% 12.6% 13.3% 14.1%
Total risk-based capital ratio 11.1% 12.1% 12.6% 13.3% 14.1%
Capital Ratios (Bank)
Average equity to average total assets 10.6% 11.0% 11.5% 11.8% 11.8%
Tangible common equity ratio 9.4% 9.7% 10.0% 10.2% 10.6%
Tier 1 leverage ratio 9.5% 9.9% 10.3% 10.7% 10.8%
Tier 1 risk-based capital ratio 11.1% 11.6% 12.2% 13.0% 13.4%
Total risk-based capital ratio 11.1% 11.6% 12.8% 13.5% 14.0%
 
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
         
As of
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands)
New Loans:
Commercial real estate $   1,067,594 $   998,141 $   991,451 $   942,424 $   903,629
Owner-occupied commercial real estate 558,659 524,728 452,991 400,438 325,972
1-4 single family residential 1,833,190 1,541,255 1,326,180 1,248,625 1,044,480
Construction, land and development 543,540 537,494 430,690 349,659 248,623
Home equity loans and lines of credit     34,973     30,945     28,185     22,798     20,459
Total real estate loans $   4,037,956 $   3,632,563 $   3,229,497 $   2,963,944 $   2,543,163
Commercial and industrial 1,064,873 972,803 925,285 837,270 805,233
Consumer     5,709     5,397     4,215     6,333     6,056
Total new loans $   5,108,538 $   4,610,763 $   4,158,997 $   3,807,547 $   3,354,452
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 212,041 $ 247,628 $ 259,411 $ 286,337 $ 309,758
1-4 single family residential 40,061 40,922 69,915 76,849 77,685
Construction, land and development     27,973     28,017     32,996     55,453     56,403
Total real estate loans $   280,075 $   316,567 $   362,322 $   418,639 $   443,846
Commercial and industrial 33,413 36,783 46,233 58,045 63,441
Consumer     2,287     2,390     2,434     2,524     2,588
Total Acquired ASC 310-30 Loans $   315,775 $   355,740 $   410,989 $   479,208 $   509,875
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 55,731 $ 55,985 $ 60,804 $ 62,473 $ 69,917
Owner-occupied commercial real estate 20,814 21,101 19,699 19,860 13,287
1-4 single family residential 80,199 84,111 86,832 86,754 97,450
Construction, land and development 6,338 6,338 6,319 8,610 9,801
Home equity loans and lines of credit     47,362     49,407     50,566     52,971     52,762
Total real estate loans $   210,444 $   216,942 $   224,220 $   230,668 $   243,217
Commercial and industrial 8,478 9,312 11,504 9,654 10,825
Consumer     432     430     426     645     680
Total Acquired Non-ASC 310-30 Loans     219,354     226,684     236,150     240,967     254,722
Total loans $   5,643,667 $   5,193,187 $   4,806,136 $   4,527,722 $   4,119,049
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
         
As of
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands)
 
Noninterest-bearing demand deposits $   737,875 $   637,047 $   618,741 $   621,845 $   595,389
Interest-bearing demand deposits 647,824 608,454 404,085 288,990 196,192
Interest-bearing NOW accounts 441,476 347,832 350,602 414,795 439,400
Savings and money market accounts 2,187,596 1,979,132 1,923,723 1,882,706 1,775,550
Time deposits     1,887,608     1,858,173     1,524,693     1,257,751     1,219,470
Total deposits $   5,902,379 $   5,430,638 $   4,821,844 $   4,466,087 $   4,226,001
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
           

Three Months Ended March 31,

 

Three Months Ended December 31,

2016 2015
Average Interest/ Annualized Average Interest/ Annualized
Balance (1) Expense (2) Yield/Rate(3) Balance (1) Expense (2) Yield/Rate(3)
(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $   86,711 $   66 0.31% $   142,637 $   65 0.18%
New loans 4,856,809 42,712 3.48% 4,314,707 37,230 3.38%
Acquired loans (4) 556,923 18,576 13.34% 622,110 19,715 12.68%
Investment securities     1,576,617     14,374 3.61%     1,575,963     14,147 3.51%
Total interest-earning assets     7,077,060     75,728 4.24%     6,655,417     71,157 4.21%
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets     477,018     467,682
Total assets $   7,554,078 $

 

7,123,099
Interest-bearing liabilities:
Interest-bearing demand deposits $ 635,500 $ 784 0.49% $ 567,610 $ 616 0.43%
Interest-bearing NOW accounts 391,158 372 0.38% 319,586 284 0.35%
Savings and money market accounts 2,041,197 2,843 0.56% 1,906,896 2,369 0.49%
Time deposits 1,901,109 5,294 1.12% 1,680,997 4,450 1.05%
FHLB advances and other borrowings     1,007,239     1,993 0.78%     1,105,878     1,469 0.52%
Total interest-bearing
liabilities $   5,976,203 $   11,286 0.75% $   5,580,967 $   9,188 0.65%
Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing demand deposits $ 646,442 $ 620,508
Other liabilities 55,374 56,970
Stockholders' equity     876,059     864,654
Total liabilities and
stockholders' equity $   7,554,078   $   7,123,099  
Net interest income $   64,442   $   61,969  
Net interest spread 3.49% 3.56%
Net interest margin 3.65% 3.69%
 
(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,
2016 2015
Average Interest/ Annualized Average Interest/ Annualized
Balance (1) Expense (2) Yield/Rate(3) Balance (1) Expense (2) Yield/Rate(3)
(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $   86,711 $   66 0.31% $   78,344 $   33 0.17%
New loans 4,856,809 42,712 3.48% 3,179,879 26,585 3.34%
Acquired loans (4) 556,923 18,576 13.34% 796,571 16,721 8.40%
Investment securities     1,576,617     14,374 3.61%     1,483,886     12,110 3.26%
Total interest-earning assets     7,077,060     75,728 4.24%     5,538,680     55,449 4.00%
Non-earning assets:
FDIC loss share indemnification asset - 44,045
Noninterest-earning assets     477,018     456,245
Total assets $   7,554,078 $   6,038,970
Interest-bearing liabilities:
Interest-bearing demand deposits $ 635,500 $ 784 0.49% $ 141,879 $ 132 0.38%
Interest-bearing NOW accounts 391,158 372 0.38% 392,318 336 0.35%
Savings and money market accounts 2,041,197 2,843 0.56% 1,843,078 2,454 0.54%
Time deposits 1,901,109 5,294 1.12% 1,146,475 2,663 0.94%
FHLB advances and other borrowings     1,007,239     1,993 0.78%     1,032,908     980 0.38%
Total interest-bearing liabilities $   5,976,203 $   11,286 0.75% $   4,556,658 $   6,565 0.58%
Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing demand deposits $ 646,442 $ 569,304
Other liabilities 55,374 53,997
Stockholders' equity     876,059     859,011

Total liabilities and stockholders'

equity

$   7,554,078   $   6,038,970  
Net interest income $   64,442   $   48,884  
Net interest spread 3.49% 3.42%
Net interest margin 3.65% 3.58%
 
(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, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands)
 
Net Income (loss) $   22,452 $   29,749 $   21,140 $   19,376 $   (16,874 )
 
Pre-tax Adjustments
Noninterest income
Less: Gain (loss) on investment securities (54 ) (28 ) 166 761 1,007
FDIC loss share indemnification loss - - - - (65,529 )
Noninterest expense
Salaries and employee benefits 240 48 3 (17 ) 185
Occupancy and equipment 103 512 - - -
Loan and other real estate related
expenses - - - - -
Professional services - - - 45 245
Data processing and network fees - - - - 2
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 7 88 20 203 64
Taxes
Tax Effect of adjustments (1)     (146 )     (7,897 )     50       186       (30,065 )
Core Net Income $   22,710   $   22,528   $   21,047   $   19,031   $   18,079  
 
Average assets $ 7,554,078 $ 7,123,099 $ 6,650,260 $ 6,325,073 $ 6,038,970
ROA (2) 1.19 % 1.66 % 1.26 % 1.23 % -1.13 %
Core ROA (3) 1.21 % 1.25 % 1.26 % 1.21 % 1.21 %
 
(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items including $9.1

million release of deferred tax asset valuation reserve in Q4 2015. Core tax rate of 35% in 2015 and 36.1% in 2016.

(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, December 31,

September 30,

June 30, March 31,
2016 2015

2015

2015 2015
(Dollars in thousands)
 
Reported: Net interest income $   64,442 $   61,969 $   56,769 $   50,174 $   48,884
FTE adjustment     975     1,044     1,043     986     777
Core net interest income $   65,417 $   63,013 $   57,812 $   51,160 $   49,661
 
Reported: Noninterest income $ 5,434 $ 7,543 $ 7,072 $ 14,152 $ (54,089)
FTE adjustment 822 841 704 701 702
Less: Gain (loss) on investment securities (54) (28) 166 761 1,007
FDIC loss share indemnification loss     -     -     -     -     (65,529)
Core noninterest income (loss) $   6,310 $   8,412 $   7,610 $   14,092 $   11,135
Reported: Noninterest expense $ 33,300 $ 33,201 $ 30,706 $ 32,047 $ 30,650
Less:
Salaries and employee benefits 240 48 3 (17) 185
Occupancy and equipment 103 512 - - -
Loan and other real estate related expenses - - - - -
Professional services - - - 45 245
Data processing and network fees - - - - 2
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses     7     88     20     203     64
Core noninterest expense $   32,950 $   32,553 $   30,683 $   31,816 $   30,154
Efficiency ratio (1) 47.11% 47.19% 47.47% 49.19% -580.71%
Core efficiency ratio (2) 45.41% 45.02% 46.29% 48.14% 48.90%
 
(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,
2016 2015 2015 2015 2015
(Dollars in thousands, except share and per share data)
 
Total assets $   7,836,124 $   7,331,486 $   6,888,689 $   6,607,198 $   6,217,083
Less:
Goodwill and other intangible assets     86,705     87,084     87,484     87,884     88,291
Tangible assets $   7,749,419 $   7,244,402 $   6,801,205 $   6,519,314 $   6,128,792
Total stockholders' equity $ 889,299 $ 876,109 $ 855,878 $ 857,479 $ 846,834
Less:
Goodwill and other intangible assets     86,705     87,084     87,484     87,884     88,291
Tangible stockholders' equity $   802,594 $   789,025 $   768,394 $   769,595 $   758,543
Shares outstanding 40,595,787 40,860,453 40,984,200 41,423,199 41,443,031
Tangible book value per share $ 19.77 $ 19.31 $ 18.75 $ 18.58 $ 18.30
Average assets $ 7,554,078 $ 7,123,099 $ 6,650,260 $ 6,325,073 $ 6,038,970
Average equity 876,059 864,654 861,971 855,128 859,011
Average goodwill and other intangible assets 86,917 87,291 87,701 88,091 88,536
Tangible average equity to tangible average assets 10.6% 11.0% 11.8% 12.3% 12.9%
Tangible common equity ratio 10.4% 10.9% 11.3% 11.8% 12.4%

Contacts

FCB Financial Holdings, Inc.
Matthew Paluch, 305-668-5420
IR@fcb1923.com

Release Summary

FCB Financial Holdings, Inc. Reports Record First Quarter 2016 Financial Results

Contacts

FCB Financial Holdings, Inc.
Matthew Paluch, 305-668-5420
IR@fcb1923.com