Exhibit 99.1
FCB Financial Holdings, Inc. Reports Second Quarter Net Income of $9.2 Million, or $0.26 Per Diluted Share, Up 114% Year Over Year
| | • | | Total loan portfolio grew sequentially at an annualized rate of 44%; |
| | • | | Record new loan fundings of $477 million during the quarter; up 89% sequentially and 75% year over year, |
| | • | | Net Interest Income of $41.2 million, up 35% year over year; |
| | • | | Efficiency ratio declined to 64.3%; |
| | • | | ROA increased to 69 basis points; and |
| | • | | Tangible book value per share increased to $18.11. |
Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported second quarter 2014 net income of $9.2 million, or $0.26 per diluted share, and core net income of $7.4 million, or $0.21 per diluted share. Net income rose 114% year over year and net income per diluted share rose 117%. Core net income rose 113% year over year and core net income per diluted share rose 133%. This resulted in a ROA of 69 basis points and a core ROA of 55 basis points, both of which reflect continued improvements on a sequential and year-over-year basis.
Core adjustments for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of FDIC equity appreciation agreements (“EAA”) expense. 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, is 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 very pleased with our strong financial momentum as we continue to grow into the scalable platform we have built. Our industry leading loan growth, core deposit momentum and strong asset quality are a result of consistent execution by our teammates throughout the bank.”
Loan Portfolio and Composition
The total loan portfolio, gross of the allowance for loan losses, grew by $326.8 million to $3.3 billion at June 30, 2014, an increase of 11% from $2.9 billion as of March 31, 2014 and 97% from $1.7 billion as of June 30, 2013.
Our new loan portfolio totaled $2.3 billion as of June 30, 2014, an increase of 19% from $1.9 billion as of March 31, 2014 and 112% from $1.1 billion as of June 30, 2013. Our loan growth during the quarter was a result of $477 million of new loan fundings, including $71 million of purchased residential mortgages which was partially offset by the sale of $23 million in new residential loans during the period. As of June 30, 2014 new loans made up 71% of our total loan portfolio as compared to 66% as of March 31, 2014 and June 30, 2013, respectively.
Our acquired loan portfolio totaled $957.3 million as of June 30, 2014, a decrease of 5% from $1.0 billion as of March 31, 2014 and an increase of 68% from $568.6 million as of June 30, 2013. The decrease in the current quarter was driven by resolutions totaling $36 million as well as scheduled loan amortization while the increase from June 30, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of June 30, 2014, acquired loans made up 29% of our total loan portfolio as compared to 34% as of March 31, 2014 and June 30, 2013, respectively.
Asset Quality
The provision for loan losses of $3.2 million recorded for the second quarter of 2014 includes a $3.3 million provision for new loans and ($0.1) million in recoupment due to better than expected performance in the acquired loan portfolio. Net new loan charge-offs for the second quarter of 2014 were $0.3 million. The provision for new
loans served to increase the related allowance to $12.4 million, or 0.54% of the $2.3 billion in new loans outstanding. Non-performing new loans (“NPL”) as a percentage of the new loan portfolio remained de minimis at 0.01% for new loan allowance to NPL coverage of 62.7 times.
Deposits and Borrowings
Deposits totaled $4.0 billion as of June 30, 2014, an increase of 6% from $3.7 billion as of March 31, 2014 and 61% from $2.5 billion as of June 30, 2013. The increase for the quarter was primarily driven by increased core deposits of $310.3 million offset by reduction in time deposits of $81.7 million. The cost of deposits remained flat at 62 basis points from the first quarter of 2014 and declined 16 basis points from the second quarter of 2013. Continued planned reduction of high cost legacy time deposits drove the improvement year over year. Core deposits include all checking, savings and money market accounts and now represent 64% of total deposits.
Net Interest Income and Net Interest Margin
Net interest income totaled $41.2 million in the second quarter of 2014, an increase of 7% from $38.3 million in the first quarter of 2014 and 35% from $30.5 million in the second quarter of 2013. Interest income increased to $48.5 million for the second quarter of 2014, an increase of 8% from $44.9 million in the first quarter of 2014 and 34% from $36.2 million in the second quarter of 2013. Interest income from new loans increased by $2.1 million from the first quarter of 2014 and $8.7 million from the second quarter of 2013 due to continued growth in the new loan portfolio. Additionally, interest income from acquired loans increased by $0.9 million from the first quarter of 2014 and $2.8 million from the second quarter of 2013 as the acquisition of GFB on January 31, 2014 offset average balance reductions attributable to loan resolution, prepayment and amortization. Interest expense increased to $7.3 million for the second quarter of 2014 from $6.6 million for the first quarter of 2014 and $5.7 million for the second quarter of 2013. The increase in interest expense was driven by growth of $302.4 million in average interest bearing deposits from March 31, 2014 and $1.3 billion from June 30, 2013.
The net interest margin for the second quarter of 2014 was 3.39%, a decline of 23 basis points sequentially and 49 basis points year over year. The decline over the first quarter reflects the growth and increasing mix of new loans at lower rates, as compared to the rate on our acquired loan portfolio and a decrease in yield on the securities portfolio from 2.64% to 2.44%.
Non-Interest Income and Non-Interest Expense
Non-interest income totaled $6.7 million in the second quarter of 2014, an increase of 163% from $2.5 million in the first quarter of 2014 and 83% from $3.7 million in the second quarter of 2013. Non-interest income during the second quarter of 2014 includes gain on investment sales, loan fees and negative indemnification asset amortization of $4.4 million, $2.6 million and ($5.9) million, respectively.
Non-interest expense totaled $30.7 million for the second quarter of 2014, a decrease of 11% from $34.5 million for the first quarter of 2014 and an increase of 12% from $27.5 million for the second quarter of 2013. The sequential decline was largely driven by the elimination of $4.8 million of non-core expenses associated with the GFB acquisition. Non-core expenses for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of EAA expense.
Financial Position
Capital ratios continue to be strong and well in excess of regulatory requirements. Our Tier 1 leverage and total risk-based capital ratios were 12.0% and 16.5% for the second quarter of 2014 respectively, compared to 13.4% and 18.1% for the first quarter of 2014, respectively. Stockholders’ equity totaled $739.4 million as of June 30, 2014, an increase of 2% from $723.9 million as of March 31, 2014 driven by strong quarterly net income and an increase in other comprehensive income. Tangible book value per common share increased to $18.11 as of June 30, 2014 from $17.65 as of March 31, 2014.
Conference Call
The Company plans on hosting quarterly conference calls beginning with the third quarter 2014 earnings announcement.
Forward-Looking Statements
This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our recent Registration Statement on Form S-1. 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 non-interest income and total non-interest 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 non-interest 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 non-interest income and total non-interest 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 shareholders’ equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial results and analyses of results reported under GAAP, and should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About FCB Financial Holdings, Inc.
FCB Financial Holdings, Inc. is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida. Florida Community Bank offers a comprehensive range of traditional banking products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities in its market areas. The Bank targets commercial customers engaged in a wide variety of industries including healthcare and professional services, retail and wholesale trade, tourism, agricultural services, manufacturing, distribution and distribution-related industries, technology, automotive, aviation, food products, building materials, residential housing and commercial real estate.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | | | June 30,
2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 37,833 | | | $ | 34,852 | | | $ | 30,474 | | | $ | 26,232 | | | $ | 26,297 | |
Interest and dividends on investment securities | | | 10,032 | | | | 9,463 | | | | 8,261 | | | | 8,874 | | | | 9,528 | |
Other interest income | | | 587 | | | | 603 | | | | 397 | | | | 414 | | | | 329 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest income | | | 48,452 | | | | 44,918 | | | | 39,132 | | | | 35,520 | | | | 36,154 | |
| | | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | 5,833 | | | | 5,309 | | | | 4,695 | | | | 4,886 | | | | 4,644 | |
Interest on borrowings | | | 1,466 | | | | 1,264 | | | | 1,255 | | | | 1,052 | | | | 1,038 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 7,299 | | | | 6,573 | | | | 5,950 | | | | 5,938 | | | | 5,682 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 41,153 | | | | 38,345 | | | | 33,182 | | | | 29,582 | | | | 30,472 | |
Provision for loan losses | | | 3,236 | | | | 1,090 | | | | 1,976 | | | | (631 | ) | | | 473 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 37,917 | | | | 37,255 | | | | 31,206 | | | | 30,213 | | | | 29,999 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest income: | | | | | | | | | | | | | | | | | | | | |
Service charges and fees | | | 707 | | | | 738 | | | | 693 | | | | 610 | | | | 554 | |
Loan and other fees | | | 2,569 | | | | 716 | | | | 1,560 | | | | 1,356 | | | | 1,436 | |
Bank-owned life insurance income | | | 1,038 | | | | 818 | | | | 257 | | | | — | | | | — | |
FDIC loss share indemnification loss | | | (5,247 | ) | | | (4,992 | ) | | | (5,006 | ) | | | (5,009 | ) | | | (4,729 | ) |
Income from resolution of acquired assets | | | 1,692 | | | | 1,037 | | | | 1,292 | | | | 1,268 | | | | 4,116 | |
Gain/(loss) on sales of other real estate owned | | | (378 | ) | | | 432 | | | | 194 | | | | 50 | | | | (446 | ) |
Gain on sales of investment securities | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | | | | 1,710 | |
Other non-interest income | | | 1,861 | | | | 1,304 | | | | 1,125 | | | | 622 | | | | 1,019 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest income | | | 6,690 | | | | 2,548 | | | | 3,595 | | | | 1,003 | | | | 3,660 | |
Non-interest expense: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 13,411 | | | | 16,420 | | | | 12,932 | | | | 10,625 | | | | 12,057 | |
Occupancy and equipment expenses | | | 3,777 | | | | 3,433 | | | | 2,447 | | | | 2,413 | | | | 2,571 | |
Other real estate and acquired assets resolution related expenses | | | 3,338 | | | | 3,761 | | | | 2,851 | | | | 4,522 | | | | 6,094 | |
Professional services | | | 1,352 | | | | 1,832 | | | | 1,621 | | | | 1,278 | | | | 1,498 | |
Data processing and network | | | 2,357 | | | | 3,210 | | | | 1,897 | | | | 1,944 | | | | 1,807 | |
Regulatory assessments and insurance | | | 1,920 | | | | 1,774 | | | | 1,445 | | | | 1,402 | | | | 1,278 | |
Amortization of intangibles | | | 443 | | | | 416 | | | | 367 | | | | 368 | | | | 380 | |
Other operating expenses | | | 4,146 | | | | 3,620 | | | | 2,508 | | | | 1,706 | | | | 1,770 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest expense | | | 30,744 | | | | 34,466 | | | | 26,068 | | | | 24,258 | | | | 27,455 | |
| | | | | | | | | | | | | | | | | | | | |
Income before income tax provision expense | | | 13,863 | | | | 5,337 | | | | 8,733 | | | | 6,958 | | | | 6,204 | |
Income tax provision expense | | | 4,697 | | | | 1,809 | | | | 2,809 | | | | 2,486 | | | | 1,927 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 9,166 | | | $ | 3,528 | | | $ | 5,924 | | | $ | 4,472 | | | $ | 4,277 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.26 | | | $ | 0.10 | | | $ | 0.16 | | | $ | 0.12 | | | $ | 0.12 | |
Diluted | | $ | 0.26 | | | $ | 0.10 | | | $ | 0.16 | | | $ | 0.12 | | | $ | 0.12 | |
| | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 35,892,154 | | | | 35,892,154 | | | | 36,756,073 | | | | 37,011,598 | | | | 37,011,598 | |
Diluted | | | 35,896,207 | | | | 35,896,445 | | | | 36,760,364 | | | | 37,015,889 | | | | 37,015,889 | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | |
| | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Assets: | | | | | | | | | | | | |
Cash and due from banks | | $ | 29,976 | | | $ | 34,162 | | | $ | 28,819 | |
Interest-earning deposits in other banks | | | 100,634 | | | | 53,535 | | | | 210,398 | |
Investment securities: | | | | | | | | | | | | |
Held to maturity securities | | | — | | | | 369 | | | | 365 | |
Available for sale securities, at fair value | | | 1,724,702 | | | | 1,612,386 | | | | 1,145,771 | |
Federal Home Loan Bank and other bank stock, at cost | | | 56,328 | | | | 43,354 | | | | 36,187 | |
| | | | | | | | | | | | |
Total investment securities | | | 1,781,030 | | | | 1,656,109 | | | | 1,182,323 | |
| | | | | | | | | | | | |
Loans held for sale | | | 1,492 | | | | — | | | | — | |
Loans: | | | | | | | | | | | | |
New loans | | | 2,306,337 | | | | 1,932,196 | | | | 1,770,711 | |
Acquired loans | | | 957,315 | | | | 1,006,166 | | | | 488,073 | |
Allowance for loan losses | | | (17,884 | ) | | | (15,494 | ) | | | (14,733 | ) |
| | | | | | | | | | | | |
Loans, net | | | 3,245,768 | | | | 2,922,868 | | | | 2,244,051 | |
FDIC Loss share indemnification asset | | | 74,853 | | | | 80,605 | | | | 87,229 | |
Due from Federal Deposit Insurance Corporation (“FDIC”) | | | 969 | | | | 1,938 | | | | 3,659 | |
Premises and equipment, net | | | 42,122 | | | | 43,533 | | | | 40,941 | |
Other real estate owned | | | 80,988 | | | | 86,244 | | | | 34,682 | |
Goodwill and other intangible assets | | | 89,466 | | | | 90,317 | | | | 39,369 | |
Deferred tax assets, net | | | 35,439 | | | | 39,183 | | | | 5,828 | |
Bank owned life insurance | | | 117,113 | | | | 116,075 | | | | 75,257 | |
Other assets | | | 41,858 | | | | 42,931 | | | | 20,814 | |
| | | | | | | | | | | | |
Total assets | | $ | 5,641,708 | | | $ | 5,167,500 | | | $ | 3,973,370 | |
| | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
Transaction accounts: | | | | | | | | | | | | |
Non-interest bearing | | $ | 435,055 | | | $ | 417,529 | | | $ | 291,658 | |
Interest bearing | | | 2,090,290 | | | | 1,797,976 | | | | 1,336,679 | |
| | | | | | | | | | | | |
Total transaction accounts | | | 2,525,345 | | | | 2,215,505 | | | | 1,628,337 | |
Time deposits | | | 1,432,921 | | | | 1,514,164 | | | | 1,165,196 | |
| | | | | | | | | | | | |
Total deposits | | | 3,958,266 | | | | 3,729,669 | | | | 2,793,533 | |
Total borrowings | | | 855,300 | | | | 665,829 | | | | 435,866 | |
Investment securities purchased not yet settled | | | 41,601 | | | | 6,998 | | | | — | |
Other liabilities | | | 47,093 | | | | 41,135 | | | | 27,857 | |
| | | | | | | | | | | | |
Total liabilities | | | 4,902,260 | | | | 4,443,631 | | | | 3,257,256 | |
| | | | | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | | | |
Class A common stock | | | 29 | | | | 29 | | | | 29 | |
Class B common stock | | | 8 | | | | 8 | | | | 8 | |
Additional paid-in capital | | | 724,519 | | | | 724,067 | | | | 723,631 | |
Retained earnings | | | 25,466 | | | | 16,300 | | | | 12,772 | |
Accumulated other comprehensive income (loss) | | | 8,177 | | | | 2,216 | | | | (1,575 | ) |
Treasury stock, at cost | | | (18,751 | ) | | | (18,751 | ) | | | (18,751 | ) |
| | | | | | | | | | | | |
Total stockholders’ equity | | | 739,448 | | | | 723,869 | | | | 716,114 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,641,708 | | | $ | 5,167,500 | | | $ | 3,973,370 | |
| | | | | | | | | | | | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | | | June 30,
2013 | |
Performance Ratios | | | | | | | | | | | | | | | | | | | | |
Interest rate spread | | | 3.26 | % | | | 3.45 | % | | | 3.55 | % | | | 3.31 | % | | | 3.60 | % |
Net interest margin | | | 3.39 | % | | | 3.62 | % | | | 3.76 | % | | | 3.54 | % | | | 3.88 | % |
Return on average assets | | | 0.69 | % | | | 0.30 | % | | | 0.62 | % | | | 0.49 | % | | | 0.50 | % |
Return on average equity | | | 5.02 | % | | | 1.98 | % | | | 3.21 | % | | | 2.43 | % | | | 2.33 | % |
Efficiency ratio (company level) | | | 64.26 | % | | | 84.28 | % | | | 70.88 | % | | | 79.31 | % | | | 80.44 | % |
Average interest-earning assets to average interest bearing liabilities | | | 117.15 | % | | | 118.86 | % | | | 128.09 | % | | | 130.25 | % | | | 132.32 | % |
Loans receivable to deposits | | | 82.45 | % | | | 78.78 | % | | | 80.86 | % | | | 72.59 | % | | | 67.14 | % |
Yield on interest-earning assets | | | 3.96 | % | | | 4.19 | % | | | 4.41 | % | | | 4.23 | % | | | 4.56 | % |
Cost of interest-bearing liabilities | | | 0.70 | % | | | 0.74 | % | | | 0.86 | % | | | 0.92 | % | | | 0.96 | % |
Asset and Credit Quality Ratios - Total loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to loans receivable | | | 1.07 | % | | | 0.90 | % | | | 1.51 | % | | | 1.65 | % | | | 1.78 | % |
Nonperforming assets to total assets | | | 2.06 | % | | | 2.18 | % | | | 1.73 | % | | | 2.12 | % | | | 2.09 | % |
Covered loans to total gross loans | | | 10.00 | % | | | 11.47 | % | | | 15.90 | % | | | 20.56 | % | | | 25.87 | % |
ALL to nonperforming assets | | | 15.42 | % | | | 13.76 | % | | | 21.40 | % | | | 16.94 | % | | | 21.21 | % |
ALL to total gross loans | | | 0.55 | % | | | 0.53 | % | | | 0.65 | % | | | 0.71 | % | | | 0.95 | % |
Asset and Credit Quality Ratios - New Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming new loans to new loans receivable | | | 0.01 | % | | | 0.00 | % | | | 0.06 | % | | | 0.00 | % | | | 0.00 | % |
Covered new loans to total gross new loans | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % |
New loan ALL to total gross new loans | | | 0.54 | % | | | 0.49 | % | | | 0.47 | % | | | 0.43 | % | | | 0.50 | % |
Asset and Credit Quality Ratios - Acquired Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming acquired loans to acquired loans receivable | | | 3.63 | % | | | 2.62 | % | | | 6.78 | % | | | 5.93 | % | | | 5.18 | % |
Covered acquired loans to total gross acquired loans | | | 34.11 | % | | | 33.51 | % | | | 73.60 | % | | | 73.82 | % | | | 75.32 | % |
Acquired loan ALL to total gross acquired loans | | | 0.57 | % | | | 0.60 | % | | | 1.32 | % | | | 1.42 | % | | | 1.82 | % |
Capital Ratios (Company) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 13.7 | % | | | 15.3 | % | | | 19.4 | % | | | 20.3 | % | | | 21.5 | % |
Tangible average equity to tangible average assets | | | 12.2 | % | | | 13.9 | % | | | 18.5 | % | | | 19.4 | % | | | 20.6 | % |
Tangible common equity ratio (1) | | | 11.7 | % | | | 12.5 | % | | | 17.2 | % | | | 19.2 | % | | | 19.6 | % |
Tier 1 leverage ratio | | | 12.0 | % | | | 13.4 | % | | | 18.0 | % | | | 19.3 | % | | | 20.2 | % |
Tier 1 risk-based capital ratio | | | 16.0 | % | | | 17.6 | % | | | 24.8 | % | | | 27.9 | % | | | 30.9 | % |
Total risk-based capital ratio | | | 16.5 | % | | | 18.1 | % | | | 25.3 | % | | | 28.5 | % | | | 31.6 | % |
Capital Ratios (Bank) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 11.9 | % | | | 12.3 | % | | | 12.5 | % | | | 13.0 | % | | | 13.8 | % |
Tangible common equity ratio | | | 10.4 | % | | | 10.5 | % | | | 11.5 | % | | | 11.8 | % | | | 12.1 | % |
Tier 1 leverage ratio | | | 10.8 | % | | | 11.2 | % | | | 12.0 | % | | | 11.9 | % | | | 12.4 | % |
Tier 1 risk-based capital ratio | | | 14.4 | % | | | 14.9 | % | | | 16.7 | % | | | 17.5 | % | | | 19.2 | % |
Total risk-based capital ratio | | | 14.9 | % | | | 15.4 | % | | | 17.3 | % | | | 18.0 | % | | | 20.0 | % |
| (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, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
New Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate (1) | | $ | 892,999 | | | $ | 735,432 | | | $ | 669,711 | | | $ | 475,514 | | | $ | 395,497 | |
1-4 single family residential | | | 523,987 | | | | 384,076 | | | | 359,818 | | | | 164,022 | | | | 103,407 | |
Construction, land and development | | | 123,169 | | | | 79,215 | | | | 75,666 | | | | 63,455 | | | | 55,688 | |
Home equity loans and lines of credit | | | 9,631 | | | | 22,559 | | | | 19,303 | | | | 13,466 | | | | 1,654 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 1,549,786 | | | $ | 1,221,282 | | | $ | 1,124,498 | | | $ | 716,457 | | | $ | 556,246 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 753,984 | | | | 709,506 | | | | 645,037 | | | | 612,555 | | | | 526,105 | |
Consumer | | | 2,567 | | | | 1,408 | | | | 1,176 | | | | 7,880 | | | | 4,729 | |
| | | | | | | | | | | | | | | | | | | | |
Total New loans | | $ | 2,306,337 | | | $ | 1,932,196 | | | $ | 1,770,711 | | | $ | 1,336,892 | | | $ | 1,087,080 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 413,154 | | | $ | 426,940 | | | $ | 274,147 | | | $ | 290,476 | | | $ | 306,181 | |
1-4 single family residential | | | 98,802 | | | | 103,776 | | | | 56,745 | | | | 58,039 | | | | 60,861 | |
Construction, land and development | | | 76,210 | | | | 82,833 | | | | 55,936 | | | | 60,429 | | | | 88,389 | |
Home equity loans and lines of credit | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 588,166 | | | $ | 613,549 | | | $ | 386,828 | | | $ | 408,944 | | | $ | 455,431 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 81,444 | | | | 85,360 | | | | 57,047 | | | | 60,085 | | | | 64,235 | |
Consumer | | | 3,345 | | | | 3,674 | | | | 3,992 | | | | 4,317 | | | | 4,636 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired ASC 310-30 Loans | | $ | 672,955 | | | $ | 702,583 | | | $ | 447,867 | | | $ | 473,346 | | | $ | 524,302 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired Non-ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 90,661 | | | $ | 97,440 | | | $ | 12,705 | | | $ | 12,734 | | | $ | 12,528 | |
1-4 single family residential | | | 111,056 | | | | 100,450 | | | | 10,174 | | | | 11,618 | | | | 10,436 | |
Construction, land and development | | | 8,077 | | | | 8,061 | | | | — | | | | — | | | | 1,078 | |
Home equity loans and lines of credit | | | 56,926 | | | | 65,340 | | | | 11,998 | | | | 11,891 | | | | 13,487 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 266,720 | | | $ | 271,291 | | | $ | 34,877 | | | $ | 36,243 | | | $ | 37,529 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 16,519 | | | | 30,831 | | | | 5,040 | | | | 6,083 | | | | 6,501 | |
Consumer | | | 1,121 | | | | 1,461 | | | | 289 | | | | 303 | | | | 304 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired Non-ASC 310-30 Loans | | | 284,360 | | | | 303,583 | | | | 40,206 | | | | 42,629 | | | | 44,334 | |
| | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 3,263,652 | | | $ | 2,938,362 | | | $ | 2,258,784 | | | $ | 1,852,867 | | | $ | 1,655,716 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | Owner Occupied Commercial Real Estate in the new loan portfolio is $230.5 MM, $166.0 MM, $155.0 MM, $113.9 MM and $109.7 MM, respectively. |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
Non-interest bearing demand deposits | | $ | 435,055 | | | $ | 417,529 | | | $ | 291,658 | | | $ | 282,487 | | | $ | 273,619 | |
Interest-bearing demand deposits | | | 120,197 | | | | 103,063 | | | | 84,837 | | | | 70,617 | | | | 75,162 | |
Savings and money market accounts | | | 1,970,093 | | | | 1,694,913 | | | | 1,251,842 | | | | 1,031,726 | | | | 996,848 | |
Time deposits | | | 1,432,921 | | | | 1,514,164 | | | | 1,165,196 | | | | 1,167,677 | | | | 1,120,345 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 3,958,266 | | | $ | 3,729,669 | | | $ | 2,793,533 | | | $ | 2,552,507 | | | $ | 2,465,974 | |
| | | | | | | | | | | | | | | | | | | | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | | Three Months Ended March 31, | |
| | | 2014 | | | 2014 | |
| | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash & equivalents | | $ | 97,493 | | | $ | 53 | | | | 0.22 | % | | $ | 126,136 | | | $ | 67 | | | | 0.22 | % |
New loans | | | 2,087,601 | | | | 18,475 | | | | 3.50 | % | | | 1,814,109 | | | | 16,381 | | | | 3.61 | % |
Acquired loans | | | 967,986 | | | | 19,358 | | | | 8.00 | % | | | 834,093 | | | | 18,471 | | | | 8.86 | % |
Investment securities and other | | | 1,710,662 | | | | 10,566 | | | | 2.44 | % | | | 1,517,598 | | | | 9,999 | | | | 2.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 4,863,742 | | | | 48,452 | | | | 3.96 | % | | | 4,291,936 | | | | 44,918 | | | | 4.19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 78,916 | | | | | | | | | | | | 85,998 | | | | | | | | | |
Non-interest earning assets | | | 411,602 | | | | | | | | | | | | 347,185 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,354,260 | | | | | | | | | | | $ | 4,725,119 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing transaction accounts | | $ | 112,752 | | | $ | 43 | | | | 0.15 | % | | $ | 99,470 | | | $ | 36 | | | | 0.15 | % |
Savings and money market accounts | | | 1,787,574 | | | | 2,564 | | | | 0.58 | % | | | 1,552,067 | | | | 1,883 | | | | 0.49 | % |
Time deposits | | | 1,464,728 | | | | 3,226 | | | | 0.88 | % | | | 1,411,109 | | | | 3,390 | | | | 0.97 | % |
FHLB advances and other borrowings | | | 786,513 | | | | 1,466 | | | | 0.74 | % | | | 548,267 | | | | 1,264 | | | | 0.92 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 4,151,567 | | | $ | 7,299 | | | | 0.70 | % | | $ | 3,610,913 | | | $ | 6,573 | | | | 0.74 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 420,420 | | | | | | | | | | | $ | 353,023 | | | | | | | | | |
Other liabilities | | | 49,896 | | | | | | | | | | | | 38,962 | | | | | | | | | |
Stockholders’ equity | | | 732,377 | | | | | | | | | | | | 722,221 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,354,260 | | | | | | | | | | | $ | 4,725,119 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 41,153 | | | | | | | | | | | $ | 38,345 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.39 | % | | | | | | | | | | | 3.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average rates are presented on an annualized basis based on the respective method of interest accrual. |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2014 | | | 2013 | |
| | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash & equivalents | | $ | 97,493 | | | $ | 53 | | | | 0.22 | % | | $ | 95,730 | | | $ | 40 | | | | 0.17 | % |
New loans | | | 2,087,601 | | | | 18,475 | | | | 3.50 | % | | | 982,080 | | | | 9,748 | | | | 3.93 | % |
Acquired loans | | | 967,986 | | | | 19,358 | | | | 8.00 | % | | | 569,623 | | | | 16,549 | | | | 11.62 | % |
Investment securities and other | | | 1,710,662 | | | | 10,566 | | | | 2.44 | % | | | 1,502,313 | | | | 9,817 | | | | 2.58 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 4,863,742 | | | | 48,452 | | | | 3.96 | % | | | 3,149,746 | | | | 36,154 | | | | 4.56 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 78,916 | | | | | | | | | | | | 110,615 | | | | | | | | | |
Non-interest earning assets | | | 411,602 | | | | | | | | | | | | 164,961 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,354,260 | | | | | | | | | | | $ | 3,425,322 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing transaction accounts | | $ | 112,752 | | | $ | 43 | | | | 0.15 | % | | $ | 69,137 | | | $ | 17 | | | | 0.10 | % |
Savings and money market accounts | | | 1,787,574 | | | | 2,564 | | | | 0.58 | % | | | 940,687 | | | | 1,179 | | | | 0.50 | % |
Time deposits | | | 1,464,728 | | | | 3,226 | | | | 0.88 | % | | | 1,098,457 | | | | 3,448 | | | | 1.26 | % |
FHLB advances and other borrowings | | | 786,513 | | | | 1,466 | | | | 0.74 | % | | | 272,050 | | | | 1,038 | | | | 1.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 4,151,567 | | | $ | 7,299 | | | | 0.70 | % | | $ | 2,380,331 | | | $ | 5,682 | | | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 420,420 | | | | | | | | | | | $ | 267,078 | | | | | | | | | |
Other liabilities | | | 49,896 | | | | | | | | | | | | 41,825 | | | | | | | | | |
Stockholders’ equity | | | 732,377 | | | | | | | | | | | | 736,088 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,354,260 | | | | | | | | | | | $ | 3,425,322 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 41,153 | | | | | | | | | | | $ | 30,472 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.39 | % | | | | | | | | | | | 3.88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average rates are presented on an annualized basis based on the respective method of interest accrual. |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Year to Date Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2014 | | | 2013 | |
| | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | | | Average
Balance | | | Interest/
Expense | | | Annualized
Yield/Rate (1) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash & equivalents | | $ | 111,736 | | | $ | 121 | | | | 0.22 | % | | $ | 75,791 | | | $ | 70 | | | | 0.19 | % |
New loans | | | 1,951,611 | | | | 34,856 | | | | 3.55 | % | | | 886,459 | | | | 17,847 | | | | 4.00 | % |
Acquired loans | | | 901,409 | | | | 37,829 | | | | 8.39 | % | | | 585,063 | | | | 33,968 | | | | 11.61 | % |
Investment securities and other | | | 1,614,663 | | | | 20,564 | | | | 2.53 | % | | | 1,495,056 | | | | 18,726 | | | | 2.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 4,579,419 | | | | 93,370 | | | | 4.06 | % | | | 3,042,369 | | | | 70,611 | | | | 4.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 82,437 | | | | | | | | | | | | 116,389 | | | | | | | | | |
Non-interest earning assets | | | 379,571 | | | | | | | | | | | | 157,013 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,041,427 | | | | | | | | | | | $ | 3,315,771 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing transaction accounts | | $ | 106,148 | | | $ | 79 | | | | 0.15 | % | | $ | 68,149 | | | $ | 32 | | | | 0.10 | % |
Savings and money market accounts | | | 1,670,470 | | | | 4,447 | | | | 0.54 | % | | | 872,543 | | | | 2,059 | | | | 0.48 | % |
Time deposits | | | 1,438,067 | | | | 6,616 | | | | 0.93 | % | | | 1,075,858 | | | | 6,865 | | | | 1.29 | % |
FHLB advances and other borrowings | | | 668,048 | | | | 2,730 | | | | 0.81 | % | | | 277,781 | | | | 2,096 | | | | 1.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 3,882,733 | | | $ | 13,872 | | | | 0.72 | % | | $ | 2,294,331 | | | $ | 11,052 | | | | 0.97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 386,908 | | | | | | | | | | | $ | 247,029 | | | | | | | | | |
Other liabilities | | | 44,459 | | | | | | | | | | | | 40,920 | | | | | | | | | |
Stockholders’ equity | | | 727,327 | | | | | | | | | | | | 733,491 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,041,427 | | | | | | | | | | | $ | 3,315,771 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 79,498 | | | | | | | | | | | $ | 59,559 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.34 | % | | | | | | | | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.50 | % | | | | | | | | | | | 3.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average rates are presented on an annualized basis based on the respective method of interest accrual. |
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, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
| | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 9,166 | | | $ | 3,528 | | | $ | 5,924 | | | $ | 4,472 | | | $ | 4,277 | |
| | | | | |
Pre-tax Adjustments | | | | | | | | | | | | | | | | | | | | |
Non-interest income | | | | | | | | | | | | | | | | | | | | |
Less: Gain on sales of investment securities | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | | | | 1,710 | |
Non-interest expense | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | — | | | | 2,220 | | | | 65 | | | | 232 | | | | 91 | |
Occupancy and equipment | | | 225 | | | | — | | | | — | | | | — | | | | — | |
OREO & acquired assets resolution related expense | | | — | | | | 135 | | | | — | | | | — | | | | — | |
Professional services | | | — | | | | 379 | | | | 347 | | | | 64 | | | | 158 | |
Data processing and network fees | | | — | | | | 893 | | | | 125 | | | | — | | | | 116 | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses | | | 1,290 | | | | 1,467 | | | | 40 | | | | 137 | | | | 11 | |
Taxes | | | | | | | | | | | | | | | | | | | | |
Tax Effect of adjustments (1) | | | 1,144 | | | | (1,014 | ) | | | 1,132 | | | | 652 | | | | 520 | |
| | | | | | | | | | | | | | | | | | | | |
Core Net Income | | $ | 7,377 | | | $ | 5,113 | | | $ | 4,153 | | | $ | 3,451 | | | $ | 3,463 | |
| | | | | | | | | | | | | | | | | | | | |
Average assets | | $ | 5,354,260 | | | $ | 4,725,119 | | | $ | 3,781,231 | | | $ | 3,590,388 | | | $ | 3,425,322 | |
ROA (2) | | | 0.69 | % | | | 0.30 | % | | | 0.62 | % | | | 0.49 | % | | | 0.50 | % |
Core ROA (3) | | | 0.55 | % | | | 0.44 | % | | | 0.44 | % | | | 0.38 | % | | | 0.41 | % |
| (1) | Tax effected at marginal income tax rate of 39% |
| (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, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
Reported: Net interest income | | $ | 41,153 | | | $ | 38,345 | | | $ | 33,182 | | | $ | 29,582 | | | $ | 30,472 | |
FTE adjustment | | | 487 | | | | 492 | | | | 556 | | | | 547 | | | | 719 | |
| | | | | | | | | | | | | | | | | | | | |
Core net interest income | | $ | 41,640 | | | $ | 38,837 | | | $ | 33,738 | | | $ | 30,129 | | | $ | 31,191 | |
| | | | | | | | | | | | | | | | | | | | |
Reported: Non-interest income | | $ | 6,690 | | | $ | 2,548 | | | $ | 3,595 | | | $ | 1,003 | | | $ | 3,660 | |
FTE adjustment | | | 664 | | | | 523 | | | | 164 | | | | — | | | | — | |
Less: Gain on sales of investment securities | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | | | | 1,710 | |
| | | | | | | | | | | | | | | | | | | | |
Core non-interest income | | $ | 2,906 | | | $ | 576 | | | $ | 279 | | | $ | (1,103 | ) | | $ | 1,950 | |
| | | | | | | | | | | | | | | | | | | | |
Reported: Non-interest expense | | $ | 30,744 | | | $ | 34,466 | | | $ | 26,068 | | | $ | 24,258 | | | $ | 27,455 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | — | | | | 2,220 | | | | 65 | | | | 232 | | | | 91 | |
Occupancy and equipment | | | 225 | | | | — | | | | — | | | | — | | | | — | |
OREO & acquired assets resolution related exp | | | — | | | | 135 | | | | — | | | | — | | | | — | |
Professional services | | | — | | | | 379 | | | | 347 | | | | 64 | | | | 158 | |
Data processing and network fees | | | — | | | | 893 | | | | 125 | | | | — | | | | 116 | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses | | | 1,290 | | | | 1,467 | | | | 40 | | | | 137 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | |
Core non-interest expense | | $ | 29,229 | | | $ | 29,372 | | | $ | 25,491 | | | $ | 23,825 | | | $ | 27,079 | |
| | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (1) | | | 64.26 | % | | | 84.28 | % | | | 70.88 | % | | | 79.31 | % | | | 80.44 | % |
Core efficiency ratio (2) | | | 65.62 | % | | | 74.52 | % | | | 74.94 | % | | | 82.08 | % | | | 81.71 | % |
| (1) | Efficiency ratio: Non-interest expense / (non-interest income + net interest income) |
| (2) | Core efficiency ratio: Core non-interest expense / (core non-interest 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, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Total assets | | $ | 5,641,708 | | | $ | 5,167,500 | | | $ | 3,973,370 | | | $ | 3,638,095 | | | $ | 3,554,590 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 89,466 | | | | 90,317 | | | | 39,369 | | | | 39,736 | | | | 40,104 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 5,552,242 | | | $ | 5,077,183 | | | $ | 3,934,001 | | | $ | 3,598,359 | | | $ | 3,514,486 | |
| | | | | | | | | | | | | | | | | | | | |
Total stockholder’s equity | | $ | 739,448 | | | $ | 723,869 | | | $ | 716,114 | | | $ | 729,253 | | | $ | 729,908 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 89,466 | | | | 90,317 | | | | 39,369 | | | | 39,736 | | | | 40,104 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible stockholder’s equity | | $ | 649,982 | | | $ | 633,552 | | | $ | 676,745 | | | $ | 689,517 | | | $ | 689,804 | |
| | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 35,892,154 | | | | 35,892,154 | | | | 35,892,154 | | | | 37,011,598 | | | | 37,011,598 | |
Tangible book value per share | | $ | 18.11 | | | $ | 17.65 | | | $ | 18.85 | | | $ | 18.63 | | | $ | 18.64 | |
Average assets | | $ | 5,354,260 | | | $ | 4,725,119 | | | $ | 3,781,231 | | | $ | 3,590,388 | | | $ | 3,425,322 | |
Average equity | | | 732,377 | | | | 722,221 | | | | 732,824 | | | | 728,693 | | | | 736,088 | |
Average goodwill and other intangible assets | | | 90,431 | | | | 73,427 | | | | 39,521 | | | | 39,908 | | | | 40,248 | |
Tangible average equity to tangible average assets | | | 12.2 | % | | | 13.9 | % | | | 18.5 | % | | | 19.4 | % | | | 20.6 | % |
Tangible common equity ratio | | | 11.7 | % | | | 12.5 | % | | | 17.2 | % | | | 19.2 | % | | | 19.6 | % |
For questions please contact:
Matthew Paluch
305-668-5420
IR@fcb1923.com
