Exhibit 99.1
FCB Financial Holdings, Inc. Reports Third Quarter 2014 Financial Results
Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today announced financial results for the third quarter of 2014. For the quarter ended September 30, 2014, after deducting previously disclosed one-time charges of $20.1 million in conjunction with the Company’s initial public offering (“IPO”), the Company reported a net loss of $3.4 million, or $0.09 per diluted share.
Core net income for the third quarter of 2014 was $9.8 million, or $0.25 per diluted share. Core net income rose 184% year over year and 33% sequentially. This resulted in a core ROA of 68 basis points.
| | • | | Net interest income of $45.9 million, up 55% year over year; |
| | • | | Total loan portfolio grew sequentially at an annualized rate of 36%; |
| | • | | New loan fundings of $455 million during the quarter; |
| | • | | Core efficiency ratio declined to 61.5%, down from 65.6% in the second quarter of 2014; |
| | • | | Core ROA increased to 68 basis points, up from 55 basis points in the second quarter of 2014; |
| | • | | On August 6, 2014, the Company closed its IPO of 8,240,000 shares of common stock at $22.00 per share. Of the 8,240,000 shares sold, 5,274,045 shares were sold by the Company, including 720,000 shares sold pursuant to the over-allotment option, and 2,965,955 shares were sold by certain selling stockholders; and |
| | • | | In conjunction with the IPO, the company recorded $19.3 million of stock option and warrant expense that resulted in an offsetting increase in paid-in capital and thus did not affect the Company’s capital position. |
Core adjustments for the third quarter of 2014 included $20.1 million of one-time charges in conjunction with the IPO, $0.2 million of severance expense and $2.8 million of gain on investment securities. The $20.1 million consists of $19.3 million in stock option and warrant expense and $0.8 million of FDIC equity appreciation agreements (“EAA”) expense. The $19.3 million of stock option and warrant expense resulted in an offsetting increase in paid-in capital and thus did not affect the Company’s capital position. The core adjustments for the quarter reduced net income by $13.2 million as the warrant and incentive stock option expenses were not tax deductible. The company views 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. 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 third quarter operating results, especially the continued robust, high quality organic growth in our loan portfolio and the ongoing transformation of our deposit base. This continued momentum coupled with the completion of our initial public offering positions us well to become Florida’s leading commercial bank in the communities we serve.”
Loan Portfolio and Composition
The total loan portfolio, gross of the allowance for loan losses, grew by $296.2 million to $3.6 billion at September 30, 2014, an increase of 9% from $3.3 billion as of June 30, 2014 and 92% from $1.9 billion as of September 30, 2013.
Our new loan portfolio totaled $2.7 billion as of September 30, 2014, an increase of 16% from $2.3 billion as of June 30, 2014 and 101% from $1.3 billion as of September 30, 2013. Our loan growth during the quarter was a result of $455 million of new loan fundings, consisting of $301 million of organic production and $154 million of purchased residential mortgages. As of September 30, 2014 new loans made up 75% of our total loan portfolio as compared to 71% and 72% as of June 30, 2014 and September 30, 2013, respectively.
Our acquired loan portfolio totaled $873.8 million as of September 30, 2014, a decrease of 9% from $957.3 million as of June 30, 2014 and an increase of 69% from $516.0 million as of September 30, 2013. The decrease in the current quarter was driven by resolutions totaling $49.9 million as well as scheduled loan amortization while the increase from September 30, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of September 30, 2014, acquired loans made up 25% of our total loan portfolio as compared to 29% and 28% as of June 30, 2014 and September 30, 2013, respectively.
Asset Quality
The provision for loan losses of $2.8 million recorded for the third quarter of 2014 includes a $1.7 million provision for new loans and a $1.1 million provision for the acquired loan portfolio. There were no new loan portfolio charge-offs in the third quarter of 2014. The provision for new loans served to increase the related allowance to $14.2 million, or 0.53% of the $2.7 billion in new loans outstanding. The new loan portfolio had no non-performing loans as of September 30, 2014.
Deposits and Borrowings
Deposits totaled $3.99 billion as of September 30, 2014, an increase of 1% from $3.96 billion as of June 30, 2014 and 56% from $2.55 billion as of September 30, 2013. During the third quarter of 2014, non-interest bearing deposits increased by $90.1 million, or 21%, and overall transaction accounts increased by $221.1 million, or 9%. This increase was offset by a $188.0 million reduction in high priced time deposits. Transaction accounts represent 69% of total deposits as of September 30, 2014 as compared to 64% and 54% as of June 30, 2014 and September 30, 2013, respectively. The cost of deposits remained flat at 62 basis points from the second quarter of 2014 and declined 14 basis points from the third quarter of 2013. Continued mix shift to transaction accounts drove the improvement year over year. Contractual cost of deposits, excluding time deposit premium amortization in conjunction with the GFB acquisition, declined to 62 basis points in the third quarter of 2014 from 66 basis points and 75 basis points in the second quarter of 2014 and the third quarter of 2013, respectively.
Net Interest Income and Net Interest Margin
Net interest income totaled $45.9 million in the third quarter of 2014, an increase of 12% from $41.2 million in the second quarter of 2014 and 55% from $29.6 million in the third quarter of 2013. Interest income increased to $53.7 million for the third quarter of 2014, an increase of 11% from $48.5 million in the second quarter of 2014 and 51% from $35.5 million in the third quarter of 2013. Interest income from new loans increased by $3.4 million, or 18%, from the second quarter of 2014 due to continued growth in the new loan portfolio. Additionally, interest income from acquired loans increased by $0.9 million from the second quarter of 2014 as increased yields due to better than expected performance offset average balance reductions attributable to loan resolution, prepayment and amortization. Interest expense increased to $7.8 million for the third quarter of 2014 from $7.3 million for the second quarter of 2014 and $5.9 million for the third quarter of 2013. The increase in interest expense was driven by growth of $270.1 million in average interest bearing liabilities from June 30, 2014 and $1.9 billion from September 30, 2013.
The net interest margin for the third quarter of 2014 was 3.49%, an increase of 10 basis points sequentially and a decline of 5 basis points year over year. The increase over the second quarter reflects new loan activity and better than expected performance leading to higher yields on the acquired loan portfolio.
Non-Interest Income and Non-Interest Expense
Non-interest income totaled $2.4 million in the third quarter of 2014, a decrease of $4.3 million from the second quarter of 2014 and an increase of $1.3 million from the third quarter of 2013. The decline from the second quarter of 2014 is primarily driven by fluctuations in gain on investment securities and increased indemnification asset amortization due to better than expected performance on the acquired loan portfolio, together accounting for $3.1 million of the change from prior quarter. Non-interest income during the third quarter of 2014 includes gain on investment securities, loan fees and indemnification asset amortization of $2.8 million, $1.2 million and ($7.3) million, respectively.
Non-interest expense totaled $49.0 million for the third quarter of 2014, an increase of $18.2 million from the second quarter of 2014 and an increase of $24.7 million from the third quarter of 2013. The increase from prior quarters was driven by non-core expenses of $20.3 million for the third quarter of 2014 including $19.3 million in stock option and warrant expense and $0.8 million of EAA expense recognized in conjunction with the Company’s IPO and $0.2 million in severance 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 13.1% and 17.7% for the third quarter of 2014 respectively, compared to 12.0% and 16.5% for the second quarter of 2014, respectively. Stockholders’ equity totaled $835.7 million as of September 30, 2014, an increase of 13% from $739.4 million as of June 30, 2014 primarily driven by proceeds from the Company’s IPO offset by a decrease in other comprehensive income. Tangible book value per common share is $18.03 as of September 30, 2014.
Conference Call
The Company will host a conference call today, Thursday, October 23, 2014 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.
Participants can register for this conference call atwww.floridacommunitybank.com by navigating to Investor Relations or directly athttp://dpregister.com/10052807. Registered participants will receive dial in information upon registration. Please dial in 10 minutes prior to the beginning of the call.
If you are unable to register for the conference call, you can access the conference call by dialing (888)-317-6016 and asking for the FCB call.
A telephonic replay of the conference call will be available through November 7, 2014, by dialing (877) 344-7529 and entering pass code 10052807.
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 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 | |
| | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 42,085 | | | $ | 37,833 | | | $ | 34,852 | | | $ | 30,474 | | | $ | 26,232 | |
Interest and dividends on investment securities | | | 11,530 | | | | 10,566 | | | | 9,998 | | | | 8,609 | | | | 9,184 | |
Other interest income | | | 37 | | | | 53 | | | | 68 | | | | 49 | | | | 104 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest income | | | 53,652 | | | | 48,452 | | | | 44,918 | | | | 39,132 | | | | 35,520 | |
| | | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | 6,124 | | | | 5,833 | | | | 5,309 | | | | 4,695 | | | | 4,886 | |
Interest on borrowings | | | 1,633 | | | | 1,466 | | | | 1,264 | | | | 1,256 | | | | 1,051 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 7,757 | | | | 7,299 | | | | 6,573 | | | | 5,951 | | | | 5,937 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 45,895 | | | | 41,153 | | | | 38,345 | | | | 33,181 | | | | 29,583 | |
Provision for loan losses | | | 2,805 | | | | 3,236 | | | | 1,090 | | | | 1,976 | | | | (631 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 43,090 | | | | 37,917 | | | | 37,255 | | | | 31,205 | | | | 30,214 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest income: | | | | | | | | | | | | | | | | | | | | |
Service charges and fees | | | 738 | | | | 707 | | | | 738 | | | | 693 | | | | 610 | |
Loan and other fees | | | 1,238 | | | | 2,569 | | | | 716 | | | | 1,560 | | | | 1,356 | |
Bank-owned life insurance income | | | 1,151 | | | | 1,038 | | | | 818 | | | | 257 | | | | — | |
FDIC loss share indemnification loss | | | (5,862 | ) | | | (5,247 | ) | | | (4,992 | ) | | | (5,005 | ) | | | (5,010 | ) |
Income from resolution of acquired assets | | | 1,109 | | | | 1,692 | | | | 1,037 | | | | 1,292 | | | | 1,268 | |
Gain/(loss) on sales of other real estate owned | | | (128 | ) | | | (359 | ) | | | 431 | | | | 194 | | | | 73 | |
Gain on investment securities | | | 2,785 | | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | |
Other non-interest income | | | 1,319 | | | | 1,842 | | | | 1,305 | | | | 1,124 | | | | 600 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest income | | | 2,350 | | | | 6,690 | | | | 2,548 | | | | 3,595 | | | | 1,003 | |
Non-interest expense: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 28,525 | | | | 13,411 | | | | 16,420 | | | | 12,932 | | | | 10,625 | |
Occupancy and equipment expenses | | | 3,606 | | | | 3,777 | | | | 3,433 | | | | 2,448 | | | | 2,412 | |
Other real estate and acquired assets resolution related expenses | | | 3,203 | | | | 3,338 | | | | 3,761 | | | | 2,849 | | | | 4,524 | |
Professional services | | | 1,203 | | | | 1,352 | | | | 1,832 | | | | 1,621 | | | | 1,278 | |
Data processing and network | | | 2,538 | | | | 2,357 | | | | 3,210 | | | | 1,897 | | | | 1,944 | |
Regulatory assessments and insurance | | | 2,466 | | | | 1,920 | | | | 1,774 | | | | 1,445 | | | | 1,403 | |
Amortization of intangibles | | | 426 | | | | 443 | | | | 416 | | | | 367 | | | | 367 | |
Other operating expenses | | | 6,992 | | | | 4,146 | | | | 3,620 | | | | 2,507 | | | | 1,707 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest expense | | | 48,959 | | | | 30,744 | | | | 34,466 | | | | 26,066 | | | | 24,260 | |
| | | | | | | | | | | | | | | | | | | | |
Income before income tax provision expense | | | (3,519 | ) | | | 13,863 | | | | 5,337 | | | | 8,734 | | | | 6,957 | |
Income tax provision expense (benefit) | | | (97 | ) | | | 4,697 | | | | 1,809 | | | | 2,809 | | | | 2,486 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (3,422 | ) | | $ | 9,166 | | | $ | 3,528 | | | $ | 5,925 | | | $ | 4,471 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | (0.09 | ) | | $ | 0.26 | | | $ | 0.10 | | | $ | 0.16 | | | $ | 0.12 | |
Diluted | | $ | (0.09 | ) | | $ | 0.26 | | | $ | 0.10 | | | $ | 0.16 | | | $ | 0.12 | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 38,952,127 | | | | 35,892,154 | | | | 35,892,154 | | | | 36,756,073 | | | | 37,011,598 | |
Diluted | | | 38,952,127 | | | | 35,896,207 | | | | 35,896,445 | | | | 36,760,364 | | | | 37,019,163 | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | |
| | | September 30,
2014 | | | June 30,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Assets: | | | | | | | | | | | | |
Cash and due from banks | | $ | 28,288 | | | $ | 29,976 | | | $ | 28,819 | |
Interest-earning deposits in other banks | | | 112,342 | | | | 100,634 | | | | 210,398 | |
Investment securities: | | | | | | | | | | | | |
Held to maturity securities | | | — | | | | — | | | | 365 | |
Available for sale securities, at fair value | | | 1,771,321 | | | | 1,724,702 | | | | 1,145,771 | |
Federal Home Loan Bank and other bank stock, at cost | | | 71,217 | | | | 56,328 | | | | 36,187 | |
| | | | | | | | | | | | |
Total investment securities | | | 1,842,538 | | | | 1,781,030 | | | | 1,182,323 | |
| | | | | | | | | | | | |
Loans held for sale | | | 108 | | | | 1,492 | | | | — | |
Loans: | | | | | | | | | | | | |
New loans | | | 2,686,043 | | | | 2,306,337 | | | | 1,770,711 | |
Acquired loans | | | 873,761 | | | | 957,315 | | | | 488,073 | |
Allowance for loan losses | | | (20,440 | ) | | | (17,884 | ) | | | (14,733 | ) |
| | | | | | | | | | | | |
Loans, net | | | 3,539,364 | | | | 3,245,768 | | | | 2,244,051 | |
FDIC Loss share indemnification asset | | | 69,920 | | | | 74,853 | | | | 87,229 | |
Due from Federal Deposit Insurance Corporation (“FDIC”) | | | 104 | | | | 969 | | | | 3,659 | |
Premises and equipment, net | | | 42,226 | | | | 42,122 | | | | 40,992 | |
Other real estate owned | | | 78,512 | | | | 80,988 | | | | 34,682 | |
Goodwill and other intangible assets | | | 89,040 | | | | 89,466 | | | | 39,369 | |
Deferred tax assets, net | | | 41,257 | | | | 35,439 | | | | 5,828 | |
Bank owned life insurance | | | 138,264 | | | | 117,113 | | | | 75,257 | |
Other assets | | | 72,981 | | | | 41,858 | | | | 20,763 | |
| | | | | | | | | | | | |
Total assets | | $ | 6,054,944 | | | $ | 5,641,708 | | | $ | 3,973,370 | |
| | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
Transaction accounts: | | | | | | | | | | | | |
Non-interest bearing | | $ | 525,152 | | | $ | 435,055 | | | $ | 291,658 | |
Interest bearing | | | 2,221,250 | | | | 2,090,290 | | | | 1,336,679 | |
| | | | | | | | | | | | |
Total transaction accounts | | | 2,746,402 | | | | 2,525,345 | | | | 1,628,337 | |
Time deposits | | | 1,244,958 | | | | 1,432,921 | | | | 1,165,196 | |
| | | | | | | | | | | | |
Total deposits | | | 3,991,360 | | | | 3,958,266 | | | | 2,793,533 | |
Total borrowings | | | 1,164,404 | | | | 855,300 | | | | 435,866 | |
Investment securities purchased not yet settled | | | 6,283 | | | | 41,601 | | | | — | |
Other liabilities | | | 57,170 | | | | 47,093 | | | | 27,857 | |
| | | | | | | | | | | | |
Total liabilities | | | 5,219,217 | | | | 4,902,260 | | | | 3,257,256 | |
| | | | | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | | | |
Class A common stock | | | 36 | | | | 29 | | | | 29 | |
Class B common stock | | | 7 | | | | 8 | | | | 8 | |
Additional paid-in capital | | | 833,478 | | | | 724,519 | | | | 723,631 | |
Retained earnings | | | 22,044 | | | | 25,466 | | | | 12,772 | |
Accumulated other comprehensive income (loss) | | | (1,087 | ) | | | 8,177 | | | | (1,575 | ) |
Treasury stock, at cost | | | (18,751 | ) | | | (18,751 | ) | | | (18,751 | ) |
| | | | | | | | | | | | |
Total stockholders’ equity | | | 835,727 | | | | 739,448 | | | | 716,114 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 6,054,944 | | | $ | 5,641,708 | | | $ | 3,973,370 | |
| | | | | | | | | | | | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | |
Performance Ratios | | | | | | | | | | | | | | | | | | | | |
Interest rate spread | | | 3.36 | % | | | 3.26 | % | | | 3.45 | % | | | 3.55 | % | | | 3.31 | % |
Net interest margin | | | 3.49 | % | | | 3.39 | % | | | 3.62 | % | | | 3.76 | % | | | 3.54 | % |
Return on average assets | | | -0.24 | % | | | 0.69 | % | | | 0.30 | % | | | 0.62 | % | | | 0.49 | % |
Return on average equity | | | -1.70 | % | | | 5.02 | % | | | 1.98 | % | | | 3.21 | % | | | 2.43 | % |
Efficiency ratio (company level) | | | 101.48 | % | | | 64.26 | % | | | 84.28 | % | | | 70.88 | % | | | 79.31 | % |
Average interest-earning assets to average interest bearing liabilities | | | 118.11 | % | | | 117.15 | % | | | 118.86 | % | | | 128.09 | % | | | 130.25 | % |
Loans receivable to deposits | | | 89.19 | % | | | 82.45 | % | | | 78.78 | % | | | 80.86 | % | | | 72.59 | % |
Yield on interest-earning assets | | | 4.05 | % | | | 3.96 | % | | | 4.19 | % | | | 4.41 | % | | | 4.23 | % |
Cost of interest-bearing liabilities | | | 0.69 | % | | | 0.70 | % | | | 0.74 | % | | | 0.86 | % | | | 0.92 | % |
Asset and Credit Quality Ratios - Total loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to loans receivable | | | 0.62 | % | | | 1.07 | % | | | 0.90 | % | | | 1.51 | % | | | 1.65 | % |
Nonperforming assets to total assets | | | 1.66 | % | | | 2.06 | % | | | 2.18 | % | | | 1.73 | % | | | 2.12 | % |
Covered loans to total gross loans | | | 8.05 | % | | | 10.00 | % | | | 11.47 | % | | | 15.90 | % | | | 20.56 | % |
ALL to nonperforming assets | | | 20.35 | % | | | 15.42 | % | | | 13.76 | % | | | 21.40 | % | | | 16.94 | % |
ALL to total gross loans | | | 0.57 | % | | | 0.55 | % | | | 0.53 | % | | | 0.65 | % | | | 0.71 | % |
Asset and Credit Quality Ratios - New Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming new loans to new loans receivable | | | 0.00 | % | | | 0.01 | % | | | 0.00 | % | | | 0.06 | % | | | 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 | | | 0.53 | % | | | 0.54 | % | | | 0.49 | % | | | 0.47 | % | | | 0.43 | % |
Asset and Credit Quality Ratios - Acquired Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming acquired loans to acquired loans receivable | | | 2.51 | % | | | 3.63 | % | | | 2.62 | % | | | 6.78 | % | | | 5.93 | % |
Covered acquired loans to total gross acquired loans | | | 32.78 | % | | | 34.11 | % | | | 33.51 | % | | | 73.60 | % | | | 73.82 | % |
Acquired loan ALL to total gross acquired loans | | | 0.72 | % | | | 0.57 | % | | | 0.60 | % | | | 1.32 | % | | | 1.42 | % |
Capital Ratios (Company) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 13.9 | % | | | 13.7 | % | | | 15.3 | % | | | 19.4 | % | | | 20.3 | % |
Tangible average equity to tangible average assets | | | 12.6 | % | | | 12.2 | % | | | 13.9 | % | | | 18.5 | % | | | 19.4 | % |
Tangible common equity ratio (1) | | | 12.5 | % | | | 11.7 | % | | | 12.5 | % | | | 17.2 | % | | | 19.2 | % |
Tier 1 leverage ratio | | | 13.1 | % | | | 12.0 | % | | | 13.4 | % | | | 18.0 | % | | | 19.3 | % |
Tier 1 risk-based capital ratio | | | 17.2 | % | | | 16.0 | % | | | 17.6 | % | | | 24.8 | % | | | 27.9 | % |
Total risk-based capital ratio | | | 17.7 | % | | | 16.5 | % | | | 18.1 | % | | | 25.3 | % | | | 28.5 | % |
Capital Ratios (Bank) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 11.8 | % | | | 11.9 | % | | | 12.3 | % | | | 12.5 | % | | | 13.0 | % |
Tangible common equity ratio | | | 10.1 | % | | | 10.4 | % | | | 10.5 | % | | | 11.5 | % | | | 11.8 | % |
Tier 1 leverage ratio | | | 10.6 | % | | | 10.8 | % | | | 11.2 | % | | | 12.0 | % | | | 11.9 | % |
Tier 1 risk-based capital ratio | | | 14.0 | % | | | 14.4 | % | | | 14.9 | % | | | 16.7 | % | | | 17.5 | % |
Total risk-based capital ratio | | | 14.6 | % | | | 14.9 | % | | | 15.4 | % | | | 17.3 | % | | | 18.0 | % |
| (1) | See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2014 | | | 2014 | | | 2014 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
New Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate (1) | | $ | 983,475 | | | $ | 892,999 | | | $ | 735,432 | | | $ | 669,711 | | | $ | 475,514 | |
1-4 single family residential | | | 734,608 | | | | 523,987 | | | | 384,076 | | | | 359,818 | | | | 164,022 | |
Construction, land and development | | | 160,899 | | | | 123,169 | | | | 79,215 | | | | 75,666 | | | | 63,455 | |
Home equity loans and lines of credit | | | 12,774 | | | | 9,631 | | | | 22,559 | | | | 19,303 | | | | 13,466 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 1,891,756 | | | $ | 1,549,786 | | | $ | 1,221,282 | | | $ | 1,124,498 | | | $ | 716,457 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 791,843 | | | | 753,984 | | | | 709,506 | | | | 645,037 | | | | 612,555 | |
Consumer | | | 2,444 | | | | 2,567 | | | | 1,408 | | | | 1,176 | | | | 7,880 | |
| | | | | | | | | | | | | | | | | | | | |
Total New loans | | $ | 2,686,043 | | | $ | 2,306,337 | | | $ | 1,932,196 | | | $ | 1,770,711 | | | $ | 1,336,892 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 364,753 | | | $ | 413,154 | | | $ | 426,940 | | | $ | 274,147 | | | $ | 290,476 | |
1-4 single family residential | | | 90,752 | | | | 98,802 | | | | 103,776 | | | | 56,745 | | | | 58,039 | |
Construction, land and development | | | 71,053 | | | | 76,210 | | | | 82,833 | | | | 55,936 | | | | 60,429 | |
Home equity loans and lines of credit | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 526,558 | | | $ | 588,166 | | | $ | 613,549 | | | $ | 386,828 | | | $ | 408,944 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 72,948 | | | | 81,444 | | | | 85,360 | | | | 57,047 | | | | 60,085 | |
Consumer | | | 2,936 | | | | 3,345 | | | | 3,674 | | | | 3,992 | | | | 4,317 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired ASC 310-30 Loans | | $ | 602,442 | | | $ | 672,955 | | | $ | 702,583 | | | $ | 447,867 | | | $ | 473,346 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired Non-ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 85,474 | | | $ | 90,661 | | | $ | 97,440 | | | $ | 12,705 | | | $ | 12,734 | |
1-4 single family residential | | | 105,561 | | | | 111,056 | | | | 100,450 | | | | 10,174 | | | | 11,618 | |
Construction, land and development | | | 9,744 | | | | 8,077 | | | | 8,061 | | | | — | | | | — | |
Home equity loans and lines of credit | | | 56,170 | | | | 56,926 | | | | 65,340 | | | | 11,998 | | | | 11,891 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 256,949 | | | $ | 266,720 | | | $ | 271,291 | | | $ | 34,877 | | | $ | 36,243 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 13,561 | | | | 16,519 | | | | 30,831 | | | | 5,040 | | | | 6,083 | |
Consumer | | | 809 | | | | 1,121 | | | | 1,461 | | | | 289 | | | | 303 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired Non-ASC 310-30 Loans | | | 271,319 | | | | 284,360 | | | | 303,583 | | | | 40,206 | | | | 42,629 | |
| | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 3,559,804 | | | $ | 3,263,652 | | | $ | 2,938,362 | | | $ | 2,258,784 | | | $ | 1,852,867 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | Owner Occupied Commercial Real Estate in the new loan portfolio is $261.5 MM, $230.5 MM, $166.0 MM, $155.0 MM, and $113.9 MM, respectively. |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2014 | | | 2014 | | | 2014 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands) | |
Non-interest bearing demand deposits | | $ | 525,152 | | | $ | 435,055 | | | $ | 417,529 | | | $ | 291,658 | | | $ | 282,487 | |
Interest bearing NOW accounts | | | 526,013 | | | | 120,197 | | | | 103,063 | | | | 84,837 | | | | 70,617 | |
Savings and money market accounts | | | 1,695,237 | | | | 1,970,093 | | | | 1,694,913 | | | | 1,251,842 | | | | 1,031,726 | |
Time deposits | | | 1,244,958 | | | | 1,432,921 | | | | 1,514,164 | | | | 1,165,196 | | | | 1,167,677 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 3,991,360 | | | $ | 3,958,266 | | | $ | 3,729,669 | | | $ | 2,793,533 | | | $ | 2,552,507 | |
| | | | | | | | | | | | | | | | | | | | |
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Three Months Ended June 30, | |
| | | 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 and cash equivalents | | $ | 76,682 | | | $ | 37 | | | | 0.19 | % | | $ | 97,493 | | | $ | 53 | | | | 0.22 | % |
New loans | | | 2,440,992 | | | | 21,866 | | | | 3.51 | % | | | 2,087,601 | | | | 18,475 | | | | 3.50 | % |
Acquired loans | | | 903,941 | | | | 20,219 | | | | 8.95 | % | | | 967,986 | | | | 19,358 | | | | 8.00 | % |
Investment securities and other | | | 1,800,988 | | | | 11,530 | | | | 2.51 | % | | | 1,710,662 | | | | 10,566 | | | | 2.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 5,222,603 | | | | 53,652 | | | | 4.05 | % | | | 4,863,742 | | | | 48,452 | | | | 3.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 75,191 | | | | | | | | | | | | 78,916 | | | | | | | | | |
Non-interest-earning assets | | | 440,293 | | | | | | | | | | | | 411,602 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,738,087 | | | | | | | | | | | $ | 5,354,260 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing NOW accounts | | $ | 396,361 | | | $ | 347 | | | | 0.35 | % | | $ | 112,752 | | | $ | 43 | | | | 0.15 | % |
Savings and money market accounts | | | 1,721,444 | | | | 2,790 | | | | 0.64 | % | | | 1,787,574 | | | | 2,564 | | | | 0.58 | % |
Time deposits | | | 1,358,610 | | | | 2,987 | | | | 0.87 | % | | | 1,464,960 | | | | 3,226 | | | | 0.88 | % |
FHLB advances and other borrowings | | | 945,519 | | | | 1,633 | | | | 0.68 | % | | | 786,513 | | | | 1,466 | | | | 0.74 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 4,421,934 | | | $ | 7,757 | | | | 0.69 | % | | $ | 4,151,799 | | | $ | 7,299 | | | | 0.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing demand deposits | | $ | 459,189 | | | | | | | | | | | $ | 420,188 | | | | | | | | | |
Other liabilities | | | 57,797 | | | | | | | | | | | | 49,896 | | | | | | | | | |
Stockholders’ equity | | | 799,167 | | | | | | | | | | | | 732,377 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,738,087 | | | | | | | | | | | $ | 5,354,260 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 45,895 | | | | | | | | | | | $ | 41,153 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.36 | % | | | | | | | | | | | 3.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.49 | % | | | | | | | | | | | 3.39 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (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 September 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 and cash equivalents | | $ | 76,682 | | | $ | 37 | | | | 0.19 | % | | $ | 150,747 | | | $ | 104 | | | | 0.27 | % |
New loans | | | 2,440,992 | | | | 21,866 | | | | 3.51 | % | | | 1,178,618 | | | | 11,106 | | | | 3.69 | % |
Acquired loans | | | 903,941 | | | | 20,219 | | | | 8.95 | % | | | 530,253 | | | | 15,126 | | | | 11.41 | % |
Investment securities and other | | | 1,800,988 | | | | 11,530 | | | | 2.51 | % | | | 1,458,462 | | | | 9,184 | | | | 2.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 5,222,603 | | | | 53,652 | | | | 4.05 | % | | | 3,318,080 | | | | 35,520 | | | | 4.23 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 75,191 | | | | | | | | | | | | 101,629 | | | | | | | | | |
Non-interest-earning assets | | | 440,293 | | | | | | | | | | | | 170,679 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,738,087 | | | | | | | | | | | $ | 3,590,388 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing NOW accounts | | $ | 396,361 | | | $ | 347 | | | | 0.35 | % | | $ | 70,288 | | | $ | 18 | | | | 0.10 | % |
Savings and money market accounts | | | 1,721,444 | | | | 2,790 | | | | 0.64 | % | | | 1,036,066 | | | | 1,216 | | | | 0.47 | % |
Time deposits | | | 1,358,610 | | | | 2,987 | | | | 0.87 | % | | | 1,170,038 | | | | 3,652 | | | | 1.24 | % |
FHLB advances and other borrowings | | | 945,519 | | | | 1,633 | | | | 0.68 | % | | | 271,195 | | | | 1,051 | | | | 1.52 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 4,421,934 | | | $ | 7,757 | | | | 0.69 | % | | $ | 2,547,587 | | | $ | 5,937 | | | | 0.92 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing demand deposits | | $ | 459,189 | | | | | | | | | | | $ | 272,350 | | | | | | | | | |
Other liabilities | | | 57,797 | | | | | | | | | | | | 41,758 | | | | | | | | | |
Stockholders’ equity | | | 799,167 | | | | | | | | | | | | 728,693 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,738,087 | | | | | | | | | | | $ | 3,590,388 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 45,895 | | | | | | | | | | | $ | 29,583 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.36 | % | | | | | | | | | | | 3.31 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.49 | % | | | | | | | | | | | 3.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (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)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 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 and cash equivalents | | $ | 99,923 | | | $ | 158 | | | | 0.21 | % | | $ | 101,051 | | | $ | 175 | | | | 0.23 | % |
New loans | | | 2,116,530 | | | | 56,722 | | | | 3.53 | % | | | 984,915 | | | | 28,953 | | | | 3.88 | % |
Acquired loans | | | 902,262 | | | | 58,048 | | | | 8.58 | % | | | 566,592 | | | | 49,094 | | | | 11.55 | % |
Investment securities and other | | | 1,677,454 | | | | 32,094 | | | | 2.52 | % | | | 1,482,724 | | | | 27,909 | | | | 2.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 4,796,169 | | | | 147,022 | | | | 4.06 | % | | | 3,135,282 | | | | 106,131 | | | | 4.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 79,996 | | | | | | | | | | | | 111,415 | | | | | | | | | |
Non-interest-earning assets | | | 400,034 | | | | | | | | | | | | 161,619 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 5,276,199 | | | | | | | | | | | $ | 3,408,316 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing NOW accounts | | $ | 203,949 | | | $ | 426 | | | | 0.28 | % | | $ | 68,870 | | | $ | 50 | | | | 0.10 | % |
Savings and money market accounts | | | 1,687,648 | | | | 7,237 | | | | 0.57 | % | | | 927,650 | | | | 3,275 | | | | 0.47 | % |
Time deposits | | | 1,411,376 | | | | 9,603 | | | | 0.91 | % | | | 1,107,605 | | | | 10,517 | | | | 1.27 | % |
FHLB advances and other borrowings | | | 761,555 | | | | 4,363 | | | | 0.76 | % | | | 275,562 | | | | 3,147 | | | | 1.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 4,064,528 | | | $ | 21,629 | | | | 0.71 | % | | $ | 2,379,687 | | | $ | 16,989 | | | | 0.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing demand deposits | | $ | 411,180 | | | | | | | | | | | $ | 255,553 | | | | | | | | | |
Other liabilities | | | 48,955 | | | | | | | | | | | | 41,202 | | | | | | | | | |
Stockholders’ equity | | | 751,536 | | | | | | | | | | | | 731,874 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 5,276,199 | | | | | | | | | | | $ | 3,408,316 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 125,393 | | | | | | | | | | | $ | 89,142 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.35 | % | | | | | | | | | | | 3.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.50 | % | | | | | | | | | | | 3.80 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (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 | |
| | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | |
| | | (Dollars in thousands) | |
Net Income (loss) | | | $ (3,422 | ) | | $ | 9,166 | | | $ | 3,528 | | | $ | 5,925 | | | $ | 4,471 | |
Pre-tax Adjustments | | | | | | | | | | | | | | | | | | | | |
Non-interest income | | | | | | | | | | | | | | | | | | | | |
Less: Gain on investment securities | | | 2,785 | | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | |
Non-interest expense | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits (1) | | | 15,379 | | | | — | | | | 2,220 | | | | 65 | | | | 232 | |
Occupancy and equipment | | | — | | | | 225 | | | | — | | | | — | | | | — | |
OREO & acquired assets resolution related expense | | | — | | | | — | | | | 135 | | | | — | | | | — | |
Professional services | | | — | | | | — | | | | 379 | | | | 347 | | | | 64 | |
Data processing and network fees | | | — | | | | — | | | | 893 | | | | 125 | | | | — | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Amortization of intangibles | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses (2) | | | 4,895 | | | | 1,290 | | | | 1,467 | | | | 40 | | | | 137 | |
Taxes | | | | | | | | | | | | | | | | | | | | |
Tax Effect of adjustments (3) | | | (4,254 | ) | | | 1,144 | | | | (1,014 | ) | | | 1,132 | | | | 652 | |
| | | | | | | | | | | | | | | | | | | | |
Core Net Income | | $ | 9,813 | | | $ | 7,377 | | | $ | 5,113 | | | $ | 4,154 | | | $ | 3,450 | |
| | | | | | | | | | | | | | | | | | | | |
Average assets | | $ | 5,738,087 | | | $ | 5,354,260 | | | $ | 4,725,119 | | | $ | 3,781,231 | | | $ | 3,590,388 | |
ROA (4) | | | -0.24 | % | | | 0.69 | % | | | 0.30 | % | | | 0.62 | % | | | 0.49 | % |
Core ROA (5) | | | 0.68 | % | | | 0.55 | % | | | 0.44 | % | | | 0.44 | % | | | 0.38 | % |
| (1) | Includes $15.2 million in stock option expense in conjunction to the IPO and $0.2 million of severance expense in most recent quarter. |
| (2) | Includes $4.1 million in warrant expense in conjunction to the IPO and $0.8 million of EAA expense in most recent quarter. |
| (3) | Tax effected at marginal income tax rate of 39% except for non tax deductible items |
| (4) | Return on assets: Annualized net income / average assets |
| (5) | 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 | |
| | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | | | September 30,
2013 | |
| | | (Dollars in thousands) | |
Reported: Net interest income | | $ | 45,895 | | | $ | 41,153 | | | $ | 38,345 | | | $ | 33,181 | | | $ | 29,583 | |
FTE adjustment | | | 475 | | | | 487 | | | | 492 | | | | 556 | | | | 547 | |
| | | | | | | | | | | | | | | | | | | | |
Core net interest income | | $ | 46,370 | | | $ | 41,640 | | | $ | 38,837 | | | $ | 33,737 | | | $ | 30,130 | |
| | | | | | | | | | | | | | | | | | | | |
Reported: Non-interest income | | $ | 2,350 | | | $ | 6,690 | | | $ | 2,548 | | | $ | 3,595 | | | $ | 1,003 | |
FTE adjustment | | | 736 | | | | 664 | | | | 523 | | | | 164 | | | | — | |
Less: Gain on investment securities | | | 2,785 | | | | 4,448 | | | | 2,495 | | | | 3,480 | | | | 2,106 | |
| | | | | | | | | | | | | | | | | | | | |
Core non-interest income (loss) | | $ | 301 | | | $ | 2,906 | | | $ | 576 | | | $ | 279 | | | $ | (1,103 | ) |
| | | | | | | | | | | | | | | | | | | | |
Reported: Non-interest expense | | $ | 48,959 | | | $ | 30,744 | | | $ | 34,466 | | | $ | 26,066 | | | $ | 24,260 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 15,379 | | | | — | | | | 2,220 | | | | 65 | | | | 232 | |
Occupancy and equipment | | | — | | | | 225 | | | | — | | | | — | | | | — | |
OREO & acquired assets resolution related exp | | | — | | | | — | | | | 135 | | | | — | | | | — | |
Professional services | | | — | | | | — | | | | 379 | | | | 347 | | | | 64 | |
Data processing and network fees | | | — | | | | — | | | | 893 | | | | 125 | | | | — | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Amortization of intangibles | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses | | | 4,895 | | | | 1,290 | | | | 1,467 | | | | 40 | | | | 137 | |
| | | | | | | | | | | | | | | | | | | | |
Core non-interest expense | | $ | 28,685 | | | $ | 29,229 | | | $ | 29,372 | | | $ | 25,489 | | | $ | 23,827 | |
| | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (1) | | | 101.48 | % | | | 64.26 | % | | | 84.28 | % | | | 70.88 | % | | | 79.32 | % |
Core efficiency ratio (2) | | | 61.46 | % | | | 65.62 | % | | | 74.52 | % | | | 74.93 | % | | | 82.09 | % |
| (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)
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2014 | | | 2014 | | | 2014 | | | 2013 | | | 2013 | |
| | | (Dollars in thousands, except share and per share data) | |
Total assets | | $ | 6,054,944 | | | $ | 5,641,708 | | | $ | 5,167,500 | | | $ | 3,973,370 | | | $ | 3,638,095 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 89,040 | | | | 89,466 | | | | 90,317 | | | | 39,369 | | | | 39,736 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 5,965,904 | | | $ | 5,552,242 | | | $ | 5,077,183 | | | $ | 3,934,001 | | | $ | 3,598,359 | |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | $ | 835,727 | | | $ | 739,448 | | | $ | 723,869 | | | $ | 716,114 | | | $ | 729,253 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 89,040 | | | | 89,466 | | | | 90,317 | | | | 39,369 | | | | 39,736 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible stockholders’ equity | | $ | 746,687 | | | $ | 649,982 | | | $ | 633,552 | | | $ | 676,745 | | | $ | 689,517 | |
| | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 41,409,698 | | | | 35,892,154 | | | | 35,892,154 | | | | 35,892,154 | | | | 37,011,598 | |
Tangible book value per share | | $ | 18.03 | | | $ | 18.11 | | | $ | 17.65 | | | $ | 18.85 | | | $ | 18.63 | |
Average assets | | $ | 5,738,087 | | | $ | 5,354,260 | | | $ | 4,725,119 | | | $ | 3,781,231 | | | $ | 3,590,388 | |
Average equity | | | 799,167 | | | | 732,377 | | | | 722,221 | | | | 732,824 | | | | 728,693 | |
Average goodwill and other intangible assets | | | 89,276 | | | | 90,431 | | | | 73,427 | | | | 39,521 | | | | 39,908 | |
Tangible average equity to tangible average assets | | | 12.6 | % | | | 12.2 | % | | | 13.9 | % | | | 18.5 | % | | | 19.4 | % |
Tangible common equity ratio | | | 12.5 | % | | | 11.7 | % | | | 12.5 | % | | | 17.2 | % | | | 19.2 | % |
For questions please contact:
Matthew Paluch
305-668-5420
IR@fcb1923.com
