FCB Financial Holdings, Inc. Surpasses $8 Billion in Assets and Reports Record Second Quarter 2016 Financial Results

WESTON, Fla.--()--FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported second quarter 2016 net income of $23.5 million, or $0.55 per share on a fully diluted basis, and record core net income of $24.2 million, or $0.56 per share on a fully diluted basis. Core net income rose 27% year-over-year and core net income per diluted share rose 28%. These resulted in a ROA of 119 basis points and a core ROA of 123 basis points.

  • Total net revenue of $73.2 million
  • Core EPS of $0.56 per share on a fully diluted basis
  • Total loan portfolio grew sequentially at an annualized rate of 25%;
  • New loan fundings of $508.5 million during the quarter;
  • Total deposits grew sequentially at an annualized rate of 38%;
  • Total deposits grew by $565.3 million during the quarter,
  • Demand deposits grew by $129.2 million, or 37% annualized, during the quarter;
  • Core efficiency ratio of 43.8%;
  • Core ROA of 123 basis points; and
  • Tangible book value per share was $20.64;

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 second quarter of 2016 include $1.0 million expense related to restructuring of employment contracts and severance expense and $324 thousand gain 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, “We are pleased by our results this quarter highlighted by surpassing $8 billion in assets, as new loans grew by over $400 million and deposits grew over $550 million. This continued momentum across our fundamental core businesses is all a reflection of our mission to build Florida’s leading independent banking franchise.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $353.5 million to $6.0 billion at June 30, 2016, an increase of 6% from $5.6 billion as of March 31, 2016 and 32% from $4.5 billion as of June 30, 2015.

The Bank’s new loan portfolio totaled $5.5 billion as of June 30, 2016, an increase of 8% from $5.1 billion as of March 31, 2016 and 45% from $3.8 billion as of June 30, 2015. Loan growth during the quarter was a result of $508.5 million of organic new loan fundings, consisting of $185.8 million of commercial and industrial, $174.7 million of commercial real estate and $148.1 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. There were no residential mortgage purchases during the second quarter of 2016. As of June 30, 2016 new loans made up 92% of the total loan portfolio as compared to 91% and 84% as of March 31, 2016 and June 30, 2015, respectively.

The Bank’s acquired loan portfolio totaled $474.1 million as of June 30, 2016, a decrease of 11% from $535.1 million as of March 31, 2016 and a decrease of 34% from $720.2 million as of June 30, 2015. The decrease in the current quarter was driven by the resolution of $24.9 million of loans as well as scheduled loan amortization. As of June 30, 2016, acquired loans made up 8% of our total loan portfolio as compared to 9% and 16% as of March 31, 2016 and June 30, 2015, respectively.

Asset Quality

The provision for loan losses of $2.0 million recorded for the second quarter of 2016 includes a $2.2 million provision for new loans and net recoupment of valuation allowance of $0.2 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 $28.5 million, or 0.52% of the $5.5 billion in new loans outstanding. The nonperforming new loan ratio as of June 30, 2016 was 0.01%.

Deposits and Borrowings

Deposits totaled $6.5 billion as of June 30, 2016, an increase of 10% from $5.9 billion as of March 31, 2016 and an increase of 45% from $4.5 billion as of June 30, 2015. During the second quarter of 2016, demand deposits increased by $129.2 million, or 9%, from March 31, 2016 and increased by $604.1 million, or 66%, from June 30, 2015. Demand deposits represent 23% of total deposits as of June 30, 2016 as compared to 23% and 20% as of March 31, 2016 and June 30, 2015, respectively. The cost of deposits was 69 basis points for the quarter, representing a 3 basis point increase from the first quarter of 2016 and a 12 basis point increase from the second quarter of 2015.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2016 was 3.51%, a decrease of 14 basis points from the first quarter of 2016 and an increase of 8 basis points from the second quarter of 2015. The decrease from the first quarter of 2016 was due primarily to an increase of cost of time deposits and borrowings as well as the continued attrition of the acquired loan portfolio.

Net interest income totaled $64.9 million in the second quarter of 2016, an increase of 1% from $64.4 million in the first quarter of 2016 and an increase of 29% from $50.2 million in the second quarter of 2015. Interest income totaled $77.2 million for the second quarter of 2016, an increase of 2% from $75.7 million in the first quarter of 2016 and an increase of 34% from $57.4 million in the second quarter of 2015. Interest income from new loans increased by $3.4 million, or 8%, from the first quarter of 2016 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $2.0 million, or 11%, from the first quarter as balance runoff more than offset better than expected cash flow performance. Interest expense was $12.3 million for the second quarter of 2016, an increase of 9% from $11.3 million in the first quarter of 2016 and an increase 70% from $7.2 million in the second quarter of 2015. The increase from the first quarter of 2016 was a result of an increase of $235.4 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 $8.2 million for the second quarter of 2016 as compared to $5.4 million for the first quarter of 2016 and 14.2 million for the second quarter of 2015. The primary components of noninterest income for the quarter were loan and other fees, gain on sales of other real estate owned and bank-owned life insurance income of $2.2 million, $2.1 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 $34.0 million for the second quarter of 2016, an increase of 2% from $33.3 million in the first quarter of 2016 and an increase of 6% from $32.0 million in the second quarter of 2015. For the quarter, the Company recorded non-core expenses of $1.0 million related to restructuring of employment contracts and severance 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%, 9.8% and 11.3% for the second quarter of 2016 respectively, compared to 10.4%, 9.6% and 11.1% for the first quarter of 2016, respectively. Stockholders’ equity totaled $923.2 million as of June 30, 2016, an increase of 3.8% from $889.3 million as of March 31, 2016 due to net income of $23.5 million and an increase in accumulated other comprehensive income of $13.1 million that was partially offset by $6.7 million in treasury stock repurchases. During the quarter, the Company repurchased 195,986 shares at a cost of $6.7 million. Tangible book value per common share is $20.64 as of June 30, 2016.

Conference Call

The Company will host a conference call today, Thursday, July 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 August 21, 2016, by dialing (877) 344-7529 and entering pass code 10088002.

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 over $8.0 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
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands, except share and per share data)
 
Interest income:
Interest and fees on loans $ 62,642 $ 61,288 $ 56,945 $ 51,670

 

$ 44,202
Interest and dividends on investment securities 14,470 14,374 14,147 13,315 13,169
Other interest income   96   66     65     38   40
Total interest income   77,208   75,728     71,157     65,023   57,411
Interest expense:
Interest on deposits 10,340 9,293 7,719 6,846 5,991
Interest on borrowings   1,938   1,993     1,469     1,408   1,246
Total interest expense   12,278   11,286     9,188     8,254   7,237
Net interest income 64,930 64,442 61,969 56,769 50,174
Provision for loan losses   1,976   1,440     2,329     675   2,470
Net interest income after provision for loan losses   62,954   63,002     59,640     56,094   47,704
Noninterest income:
Service charges and fees 842 806 826 823 778
Loan and other fees 2,248 2,014 2,425 1,783 1,906
Bank-owned life insurance income 1,286 1,285 1,315 1,101 1,097
FDIC loss share indemnification loss - - - - -
Income from resolution of acquired assets 478 680 1,110 2,225 2,898
Gain (loss) on sales of other real estate owned 2,102 (110 ) 709 228 5,605
Gain (loss) on investment securities 324 (54 ) (28 ) 166 761
Other noninterest income   942   813     1,186     746   1,107
Total noninterest income   8,222   5,434     7,543     7,072   14,152
Noninterest expense:
Salaries and employee benefits 19,614 18,645 17,750 16,840 17,856
Occupancy and equipment expenses 3,034 3,572 3,946 3,368 3,806
Loan and other real estate related expenses 2,235 1,820 2,300 1,939 1,425
Professional services 1,105 1,337 1,651 1,166 1,189
Data processing and network 2,796 2,863 2,719 2,433 2,801
Regulatory assessments and insurance 1,840 2,117 2,066 1,919 2,092
Amortization of intangibles 297 379 400 400 407
Other operating expenses   3,054   2,567     2,369     2,641   2,471
Total noninterest expense   33,975   33,300     33,201     30,706   32,047
Income (loss) before income tax expense (benefit) 37,201 35,136 33,982 32,460 29,809
Income tax expense (benefit)   13,697   12,684     4,233     11,320   10,433
Net income (loss) $ 23,504 $ 22,452   $ 29,749   $ 21,140 $ 19,376
 
Earnings (loss) per share:
Basic $ 0.58 $ 0.55 $ 0.73 $ 0.51 $ 0.47
Diluted $ 0.55 $ 0.52 $ 0.68 $ 0.48 $ 0.45
 
Weighted average shares outstanding:
Basic 40,646,498 40,698,866 40,976,006 41,381,482 41,428,588
Diluted 42,997,811 42,840,157 43,643,408 43,798,378 43,106,131
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
           
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands)
Assets:
Cash and due from banks $ 51,277 $ 48,449 $ 44,696 $ 38,045 $ 32,161
Interest-earning deposits in other banks 107,588 77,624 57,764 46,714 109,125
Investment securities:
Available for sale securities, at fair value 1,562,049 1,525,145 1,524,622 1,467,819 1,430,149
Federal Home Loan Bank and other bank stock, at cost   51,557     59,321     59,477     65,955     70,505  
Total investment securities   1,613,606     1,584,466     1,584,099     1,533,774     1,500,654  
Loans held for sale 5,363 900 2,514 2,573 4,782
Loans:
New loans 5,523,071 5,108,538 4,610,763 4,158,997 3,807,547
Acquired loans 474,076 535,129 582,424 647,139 720,175
Allowance for loan losses   (33,706 )   (31,995 )   (29,126 )   (27,394 )   (27,046 )
Loans, net   5,963,441     5,611,672     5,164,061     4,778,742     4,500,676  
Premises and equipment, net 37,939 36,686 36,954 37,351 37,641
Other real estate owned 29,290 43,522 39,340 40,405 42,654
Goodwill and other intangible assets 86,408 86,705 87,084 87,484 87,884
Deferred tax assets, net 66,213 74,420 75,176 78,090 76,720
Bank-owned life insurance 170,817 169,531 168,246 166,931 140,830
Other assets   89,280     102,149     71,552     78,580     74,071  
Total assets $ 8,221,222   $ 7,836,124   $ 7,331,486   $ 6,888,689   $ 6,607,198  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 789,019 $ 737,875 $ 637,047 $ 618,741 $ 621,845
Interest-bearing   3,490,188     3,276,896     2,935,418     2,678,410     2,586,491  
Total transaction accounts 4,279,207 4,014,771 3,572,465 3,297,151 3,208,336
Time deposits   2,188,459     1,887,608     1,858,173     1,524,693     1,257,751  
Total deposits 6,467,666 5,902,379 5,430,638 4,821,844 4,466,087
Borrowings 756,759 950,462 983,183 1,149,920 1,232,893
Other liabilities   73,625     93,984     41,556     61,047     50,739  
Total liabilities   7,298,050     6,946,825     6,455,377     6,032,811     5,749,719  
Stockholders' Equity:
Class A common stock 40 39 39 39 37
Class B common stock 3 4 4 4 6
Additional paid-in capital 857,721 853,726 850,609 846,017 839,265
Retained earnings 134,491 110,987 88,535 58,786 37,646
Accumulated other comprehensive income (loss) 4,816 (8,240 ) (9,443 ) (2,905 ) 78
Treasury stock, at cost   (73,899 )   (67,217 )   (53,635 )   (46,063 )   (19,553 )
Total stockholders' equity   923,172     889,299     876,109     855,878     857,479  
Total liabilities and stockholders' equity $ 8,221,222   $ 7,836,124   $ 7,331,486   $ 6,888,689   $ 6,607,198  
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
 
  Three Months Ended
June 30,   March 31,   December 31,   September 30,   June 30,
2016 2016 2015 2015 2015
Performance Ratios
Interest rate spread 3.33% 3.49% 3.56% 3.49% 3.28%
Net interest margin 3.51% 3.65% 3.69% 3.62% 3.43%
Return on average assets 1.19% 1.19% 1.66% 1.26% 1.22%
Return on average equity 10.41% 10.28% 13.65% 9.73% 8.99%
Efficiency ratio (company level) 46.04% 47.11% 47.19% 47.47% 49.19%
Average interest-earning assets to average interest bearing liabilities 119.60% 118.42% 119.25% 120.40% 121.22%
Loans receivable to deposits 92.73% 95.62% 95.63% 99.67% 101.38%
Yield on interest-earning assets 4.12% 4.24% 4.21% 4.12% 3.88%
Cost of interest-bearing liabilities 0.79% 0.75% 0.65% 0.63% 0.60%
Asset and Credit Quality Ratios - Total loans
Nonperforming loans to loans receivable 0.30% 0.33% 0.35% 0.36% 0.39%
Nonperforming assets to total assets 0.57% 0.79% 0.79% 0.84% 0.91%
ALL to nonperforming assets 71.59% 51.51% 50.47% 47.43% 44.83%
ALL to total gross loans 0.56% 0.57% 0.56% 0.57% 0.60%
Asset and Credit Quality Ratios - New Loans
Nonperforming new loans to new loans receivable 0.01% 0.02% 0.03% 0.01% 0.00%
New loan ALL to total gross new loans 0.52% 0.52% 0.52% 0.52% 0.51%
Asset and Credit Quality Ratios - Acquired Loans
Nonperforming acquired loans to acquired loans receivable 3.69% 3.32% 2.90% 2.61% 2.45%
Acquired loan ALL to total gross acquired loans 1.10% 1.06% 0.92% 0.92% 1.04%
Capital Ratios (Company)
Average equity to average total assets 11.5% 11.6% 12.1% 13.0% 13.5%
Tangible average equity to tangible average assets 10.5% 10.6% 11.0% 11.8% 12.3%
Tangible common equity ratio (1) 10.3% 10.4% 10.9% 11.3% 11.8%
Tier 1 leverage ratio 9.8% 9.6% 10.3% 10.6% 11.3%
Tier 1 risk-based capital ratio 11.3% 11.1% 12.1% 12.6% 13.3%
Total risk-based capital ratio 11.3% 11.1% 12.1% 12.6% 13.3%
Capital Ratios (Bank)
Average equity to average total assets 10.5% 10.6% 11.0% 11.5% 11.8%
Tangible common equity ratio 9.4% 9.4% 9.7% 10.0% 10.2%
Tier 1 leverage ratio 9.6% 9.5% 9.9% 10.3% 10.7%
Tier 1 risk-based capital ratio 11.1% 11.1% 11.6% 12.2% 13.0%
Total risk-based capital ratio 11.2% 11.1% 11.6% 12.8% 13.5%
 
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
       
As of
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015   2015 2015
(Dollars in thousands)
New Loans:
Commercial real estate $ 1,209,762 $ 1,067,594 $ 998,141 $ 991,451 $ 942,424
Owner-occupied commercial real estate 571,558 558,659 524,728 452,991 400,438
1-4 single family residential 1,923,092 1,833,190 1,541,255 1,326,180 1,248,625
Construction, land and development 582,615 543,540 537,494 430,690 349,659
Home equity loans and lines of credit   43,730   34,973   30,945   28,185   22,798
Total real estate loans $ 4,330,757 $ 4,037,956 $ 3,632,563 $ 3,229,497 $ 2,963,944
Commercial and industrial 1,187,788 1,064,873 972,803 925,285 837,270
Consumer   4,526   5,709   5,397   4,215   6,333
Total new loans $ 5,523,071 $ 5,108,538 $ 4,610,763 $ 4,158,997 $ 3,807,547
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 182,828 $ 212,041 $ 247,628 $ 259,411 $ 286,337
1-4 single family residential 35,400 40,061 40,922 69,915 76,849
Construction, land and development   25,296   27,973   28,017   32,996   55,453
Total real estate loans $ 243,524 $ 280,075 $ 316,567 $ 362,322 $ 418,639
Commercial and industrial 28,984 33,413 36,783 46,233 58,045
Consumer   2,216   2,287   2,390   2,434   2,524
Total Acquired ASC 310-30 Loans $ 274,724 $ 315,775 $ 355,740 $ 410,989 $ 479,208
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 44,680 $ 55,731 $ 55,985 $ 60,804 $ 62,473
Owner-occupied commercial real estate 19,256 20,814 21,101 19,699 19,860
1-4 single family residential 74,568 80,199 84,111 86,832 86,754
Construction, land and development 6,338 6,338 6,338 6,319 8,610
Home equity loans and lines of credit   46,269   47,362   49,407   50,566   52,971
Total real estate loans $ 191,111 $ 210,444 $ 216,942 $ 224,220 $ 230,668
Commercial and industrial 7,801 8,478 9,312 11,504 9,654
Consumer   440   432   430   426   645
Total Acquired Non-ASC 310-30 Loans   199,352   219,354   226,684   236,150   240,967
Total loans $ 5,997,147 $ 5,643,667 $ 5,193,187 $ 4,806,136 $ 4,527,722
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
         
As of
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 789,019 $ 737,875 $ 637,047 $ 618,741 $ 621,845
Interest-bearing demand deposits 725,896 647,824 608,454 404,085 288,990
Interest-bearing NOW accounts 425,464 441,476 347,832 350,602 414,795
Savings and money market accounts 2,338,828 2,187,596 1,979,132 1,923,723 1,882,706
Time deposits   2,188,459   1,887,608   1,858,173   1,524,693   1,257,751
Total deposits $ 6,467,666 $ 5,902,379 $ 5,430,638 $ 4,821,844 $ 4,466,087
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
                     
Three Months Ended Three Months Ended
June 30,   March 31,
2016 2016
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 $ 92,582 $ 96 0.42 % $ 86,711 $ 66 0.31 %
New loans 5,235,352 46,074 3.48 % 4,856,809 42,712 3.48 %
Acquired loans (4) 508,657 16,568 13.03 % 556,923 18,576 13.34 %
Investment securities   1,592,399   14,470 3.59 %   1,576,617   14,374 3.61 %
Total interest-earning assets   7,428,990   77,208 4.12 %   7,077,060   75,728 4.24 %
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets   470,240   477,018
Total assets $ 7,899,230 $ 7,554,078
Interest-bearing liabilities:
Interest-bearing demand deposits $ 671,023 $ 843 0.50 % $ 635,500 $ 784 0.48 %
Interest-bearing NOW accounts 452,759 434 0.38 % 391,158 372 0.38 %
Savings and money market accounts 2,222,786 3,418 0.62 % 2,041,197 2,843 0.56 %
Time deposits 1,973,438 5,645 1.15 % 1,901,109 5,294 1.12 %
FHLB advances and other borrowings   891,580   1,938 0.86 %   1,007,239   1,993 0.78 %
Total interest-bearing liabilities $ 6,211,586 $ 12,278 0.79 % $ 5,976,203 $ 11,286 0.75 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 716,806 $ 646,442
Other liabilities 65,110 55,374
Stockholders' equity   905,728   876,059
Total liabilities and stockholders' equity $ 7,899,230   $ 7,554,078  
Net interest income $ 64,930   $ 64,442  
Net interest spread 3.33 % 3.49 %
Net interest margin 3.51 % 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.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
                     
Three Months Ended June 30,

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 $ 92,582 $ 96 0.42 % $ 75,166 $ 40 0.21 %
New loans 5,235,352 46,074 3.48 % 3,476,829 29,257 3.33 %
Acquired loans (4) 508,657 16,568 13.03 % 730,895 14,945 8.18 %
Investment securities   1,592,399   14,470 3.59 %   1,591,279   13,169 3.27 %
Total interest-earning assets   7,428,990   77,208 4.12 %   5,874,169   57,411 3.88 %
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets   470,240   450,904
Total assets $ 7,899,230 $ 6,325,073
Interest-bearing liabilities:
Interest-bearing demand deposits $ 671,023 $ 843 0.50 % $ 212,164 $ 226 0.43 %
Interest-bearing NOW accounts 452,759 434 0.38 % 415,206 349 0.34 %
Savings and money market accounts 2,222,786 3,418 0.62 % 1,794,967 2,333 0.52 %
Time deposits 1,973,438 5,645 1.15 % 1,242,071 3,083 1.00 %
FHLB advances and other borrowings   891,580   1,938 0.86 %   1,181,419   1,246 0.42 %
Total interest-bearing liabilities $ 6,211,586 $ 12,278 0.79 % $ 4,845,827 $ 7,237 0.60 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 716,806 $ 576,905
Other liabilities 65,110 47,213
Stockholders' equity   905,728   855,128
Total liabilities and stockholders' equity $ 7,899,230   $ 6,325,073  
Net interest income $ 64,930   $ 50,174  
Net interest spread 3.33 % 3.28 %
Net interest margin 3.51 % 3.43 %
 
(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
Average Balances and Yields
(Unaudited)
                     
Six Months Ended June 30,
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 $ 89,646 $ 162 0.36 % $ 76,746 $ 73 0.19 %
New loans 5,046,080 88,786 3.48 % 3,329,174 55,842 3.34 %
Acquired loans (4) 532,790 35,144 13.19 % 763,551 31,666 8.29 %
Investment securities   1,584,508   28,844 3.60 %   1,537,879   25,279 3.27 %
Total interest-earning assets   7,253,024   152,936 4.18 %   5,707,350   112,860 3.94 %
Non-earning assets:
FDIC loss share indemnification asset - 21,901
Noninterest-earning assets   473,630   453,561
Total assets $ 7,726,654 $ 6,182,812
Interest-bearing liabilities:
Interest-bearing demand deposits $ 653,261 $ 1,627 0.50 % $ 177,215 $ 358 0.41 %
Interest-bearing NOW accounts 421,958 806 0.38 % 403,825 685 0.34 %
Savings and money market accounts 2,131,992 6,261 0.59 % 1,818,890 4,787 0.53 %
Time deposits 1,937,274 10,939 1.13 % 1,194,537 5,746 0.97 %
FHLB advances and other borrowings   949,410   3,931 0.82 %   1,107,574   2,226 0.40 %
Total interest-bearing liabilities $ 6,093,895 $ 23,564 0.77 % $ 4,702,041 $ 13,802 0.60 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 681,624 $ 573,126
Other liabilities 60,241 50,586
Stockholders' equity   890,894   857,059
Total liabilities and stockholders' equity $ 7,726,654   $ 6,182,812  
Net interest income $ 129,372   $ 99,058  
Net interest spread 3.41 % 3.34 %
Net interest margin 3.58 % 3.50 %
 
(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
June 30, March 31, December 31, September 30, June 30,
2016   2016   2015   2015   2015
(Dollars in thousands)
 
Net Income (loss) $ 23,504 $ 22,452 $ 29,749 $ 21,140 $ 19,376
 
Pre-tax Adjustments
Noninterest income
Less: Gain (loss) on investment securities 324 (54 ) (28 ) 166 761
FDIC loss share indemnification loss - - - - -
Noninterest expense
Salaries and employee benefits 1,018 240 48 3 (17 )
Occupancy and equipment - 103 512 - -
Loan and other real estate related expenses - - - - -
Professional services - - - - 45
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses - 7 88 20 203
Taxes
Tax Effect of adjustments (1)   17     (146 )   (7,897 )   50     186  
Core Net Income $ 24,215   $ 22,710   $ 22,528   $ 21,047   $ 19,031  
 
Average assets $ 7,899,230 $ 7,554,078 $ 7,123,099 $ 6,650,260 $ 6,325,073
ROA (2) 1.19 % 1.19 % 1.66 % 1.26 % 1.23 %
Core ROA (3) 1.23 % 1.21 % 1.25 % 1.26 % 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
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands)
 
Reported: Net interest income $ 64,930 $ 64,442 $ 61,969 $ 56,769 $ 50,174
FTE adjustment 865 975 1,044 1,043 986
Core net interest income $ 65,795 $ 65,417 $ 63,013 $ 57,812 $ 51,160
 
Reported: Noninterest income $ 8,222 $ 5,434 $ 7,543 $ 7,072 $ 14,152
FTE adjustment 822 822 841 704 701
Less: Gain (loss) on investment securities 324 (54) (28) 166 761
FDIC loss share indemnification loss - - - - -
Core noninterest income (loss) $ 8,720 $ 6,310 $ 8,412 $ 7,610 $ 14,092
Reported: Noninterest expense $ 33,975 $ 33,300 $ 33,201 $ 30,706 $ 32,047
Less:
Salaries and employee benefits 1,018 240 48 3 (17)
Occupancy and equipment - 103 512 - -
Loan and other real estate related expenses - - - - -
Professional services - - - - 45
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses - 7 88 20 203
Core noninterest expense $ 32,957 $ 32,950 $ 32,553 $ 30,683 $ 31,816
Efficiency ratio (1) 46.04% 47.11% 47.19% 47.47% 49.19%
Core efficiency ratio (2) 43.83% 45.41% 45.02% 46.29% 48.14%
 
(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)
       
June 30, March 31, December 31 September 30, June 30,
2016   2016 2015 2015 2015  
(Dollars in thousands, except share and per share data)
 
Total assets $ 8,221,222 $ 7,836,124 $ 7,331,486 $ 6,888,689 $ 6,607,198
Less:
Goodwill and other intangible assets   86,408     86,705     87,084     87,484     87,884  
Tangible assets $ 8,134,814   $ 7,749,419   $ 7,244,402   $ 6,801,205   $ 6,519,314  
Total stockholders' equity $ 923,172 $ 889,299 $ 876,109 $ 855,878 $ 857,479
Less:
Goodwill and other intangible assets   86,408     86,705     87,084     87,484     87,884  
Tangible stockholders' equity $ 836,764   $ 802,594   $ 789,025   $ 768,394   $ 769,595  
Shares outstanding 40,537,913 40,595,787 40,860,453 40,984,200 41,423,199
Tangible book value per share $ 20.64 $ 19.77 $ 19.31 $ 18.75 $ 18.58
Average assets $ 7,899,230 $ 7,554,078 $ 7,123,099 $ 6,650,260 $ 6,325,073
Average equity 905,728 876,059 864,654 861,971 855,128
Average goodwill and other intangible assets 86,564 86,917 87,291 87,701 88,091
Tangible average equity to tangible average assets 10.5 % 10.6 % 11.0 % 11.8 % 12.3 %
Tangible common equity ratio 10.3 % 10.4 % 10.9 % 11.3 % 11.8 %

Contacts

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

Release Summary

FCB Financial Holdings, Inc. Surpasses $8 Billion in Assets and Reports Record Second Quarter 2016 Financial Results

Contacts

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