Exhibit 99.1
FCB Financial Holdings, Inc. Reports Record Fourth Quarter 2015 Financial Results
Weston, Fla. – FCB Financial Holdings, Inc. (NYSE:FCB) (the “Company”) today reported fourth quarter 2015 net income of $29.7 million, or $0.68 per share on a fully diluted basis, and record core net income of $22.5 million, or $0.52 per share on a fully diluted basis. Core net income rose 79% year-over-year and core net income per diluted share rose 73%. These resulted in a ROA of 166 basis points and a core ROA of 125 basis points, and continue to reflect improvements on a year-over-year basis.
| | • | | Total net revenue of $69.5 million, up 26% year-over-year |
| | • | | Core EPS of $0.52 per share on a fully diluted basis |
| | • | | Total loan portfolio grew sequentially at an annualized rate of 32%; |
| | • | | New loan fundings of $518.6 million during the quarter; |
| | • | | Total deposits grew sequentially at an annualized rate of 50%; |
| | • | | Demand deposits grew to 23% of total deposits during the quarter; |
| | • | | Core efficiency ratio improved to 45.0%; |
| | • | | Core ROA of 125 basis points; and |
| | • | | Tangible book value per share was $19.31; |
The Company views certain non-recurring items, including but not limited to merger related and restructuring charges, gain/(loss) on investment securities and their corresponding tax effect, as core adjustments to net income. Core adjustments for the fourth quarter of 2015 include the release of a $9.1 million deferred tax asset valuation reserve related to the Great Florida Acquisition, $0.5 million of cease use expense related to branch closures, $0.1 million of severance and other operating expenses and $28 thousand loss on sale of investment securities. During the quarter and relating to the fiscal year, the Company recorded an additional $1.4 million of true-up tax 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, are included in tabular form at the end of this release.
Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “This was yet another record quarter for our Company, providing a strong finish to an eventful year for FCB. We are pleased by our results this quarter highlighted by surpassing $7 billion in assets, as new loans grew by over $450 million and deposits grew over $600 million. This continued momentum across our fundamental core businesses is all a reflection of our mission to build Florida’s leading independent banking franchise. As of year-end, we are the 3rd largest independent bank and the largest pure play in the state of Florida.”
Loan Portfolio and Composition
During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $387.1 million to $5.2 billion at December 31, 2015, an increase of 8% from $4.8 billion as of September 30, 2015 and 32% from $3.9 billion as of December 31, 2014.
The Bank’s new loan portfolio totaled $4.6 billion as of December 31, 2015, an increase of 11% from $4.2 billion as of September 30, 2015 and 49% from $3.1 billion as of December 31, 2014. Loan growth during the quarter was a result of $518.6 million of new loan fundings, consisting of $372.9 million of organic production and $145.7 million of purchased residential mortgages. Organic loan production for the quarter consisted of $154.7 million of commercial and industrial, $106.0 million of commercial real estate and $112.2 million of residential and consumer. As the acquired portfolio continues to resolve, the Bank may periodically supplement organic production with high quality purchased residential mortgages as part of its overall balance sheet management strategy. As of December 31, 2015 new loans made up 89% of our total loan portfolio as compared to 87% and 79% as of September 30, 2015 and December 31, 2014, respectively.
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The Bank’s acquired loan portfolio totaled $582.4 million as of December 31, 2015, a decrease of 10% from $647.1 million as of September 30, 2015 and a decrease of 30% from $826.2 million as of December 31, 2014. The decrease in the current quarter was driven by the resolution of $32.6 million of loans as well as scheduled loan amortization. As of December 31, 2015, acquired loans made up 11% of our total loan portfolio as compared to 13% and 21% as of September 30, 2015 and December 31, 2014, respectively.
Asset Quality
The provision for loan losses of $2.3 million recorded for the fourth quarter of 2015 includes a $2.3 million provision for new loans and net recoupment of valuation allowance of $12 thousand for the acquired loan portfolio due to better than expected performance on resolution of acquired loans. The provision for new loans served to increase the related allowance to $23.7 million, or 0.52% of the $4.6 billion in new loans outstanding. The nonperforming new loan ratio as of December 31, 2015 was 0.03%.
Deposits and Borrowings
Deposits totaled $5.4 billion as of December 31, 2015, an increase of 13% from $4.8 billion as of September 30, 2015 and an increase of 36% from $4.0 billion as of December 31, 2014. During the fourth quarter of 2015, demand deposits increased by $222.7 million, or 22%, from September 30, 2015 and increased by $530.1 million, or 74%, from December 31, 2014. Demand deposits represent 23% of total deposits as of December 31, 2015 as compared to 21% and 18% as of September 30, 2015 and December 31, 2014, respectively. The cost of deposits was 60 basis points for the quarter, representing one basis point increase from the third quarter of 2015 and a 4 basis point increase from the fourth quarter of 2014.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2015 was 3.69%, an increase of 7 basis points from both the third quarter of 2015 and the fourth quarter of 2014. The increase from the third quarter of 2015 was due primarily to an increase in yield on the acquired loan portfolio resulting from better than expected cash flow performance.
Net interest income totaled $62.0 million in the fourth quarter of 2015, an increase of 9% from $56.8 million in the third quarter of 2015 and an increase of 24% from $49.8 million in the fourth quarter of 2014. Interest income totaled $71.2 million for the fourth quarter of 2015, an increase of 9% from $65.0 million in the third quarter of 2015 and an increase of 26% from $56.4 million in the fourth quarter of 2014. Interest income from new loans increased by $3.4 million, or 10%, from the third quarter of 2015 due to continued growth in the new loan portfolio. Interest income on acquired loans increased by $1.9 million, or 10%, from the third quarter as balance runoff was more than offset by better than expected cash flow performance. Interest expense was $9.2 million for the fourth quarter of 2015, an increase of 11% from $8.3 million in the third quarter of 2015 and an increase 39% from $6.6 million in the fourth quarter of 2014. The increase from the third quarter of 2015 was a result of an increase of $418.1 million of average interest-bearing liabilities coupled with increased costs associated with the addition of longer duration deposits.
Noninterest Income and Noninterest Expense
Noninterest income totaled $7.5 million for the fourth quarter of 2015 as compared to $7.1 million for the third quarter of 2015 and $5.4 million for the fourth quarter of 2014. The primary components of noninterest income for the quarter were loan and other fees and income from resolution of acquired assets of $2.4 million and $1.1 million, respectively. The Company continues to realize resolution of acquired asset income and gain on sales of other real estate owned stemming from its acquired asset portfolio. As a result of the early termination of the FDIC loss share agreements, the Company recognized all recoveries and gain on sales related to what were previously “covered assets” in its consolidated statement of income as these amounts are no longer shared with the FDIC.
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Noninterest expense totaled $33.2 million for the fourth quarter of 2015, an increase of 8% from $30.7 million in the third quarter of 2015 and 6% from $31.5 million in the fourth quarter of 2014. For the quarter, the Company recorded non-core expenses of $0.6 million consisting of severance and other salary expense of $48 thousand, cease use expense of $0.5 million and other operating expenses of $88 thousand relating to branch closures.
Financial Position
Capital ratios continue to be strong and well in excess of regulatory requirements. Our tangible common equity, Tier 1 leverage, and total risk-based capital ratios were 10.9%, 11.2% and 13.6% for the fourth quarter of 2015 respectively, compared to 11.3%, 11.5% and 14.2% for the third quarter of 2015, respectively. Stockholders’ equity totaled $876.1 million as of December 31, 2015, an increase of 2.4% from $855.9 million as of September 30, 2015 as net income of $29.7 million was partially offset by $7.6 million in treasury stock repurchases and a $6.5 million increase in accumulated other comprehensive loss. During the quarter, the Company repurchased 211,159 shares at a cost of $7.6 million. Tangible book value per common share is $19.31 as of December 31, 2015.
Conference Call
The Company will host a conference call today, Monday, January 25, 2016 at 5:00 p.m. Eastern Time. Presentation materials related to the conference call are available on the Company’s website,www.floridacommunitybank.com, by navigating to Investor Relations.
The number to call for this interactive teleconference is (855) 238-8125, and please ask to join the FCB Financial Holdings, Inc. or FCB teleconference. Please dial in 10 minutes prior to the beginning of the call.
A telephonic replay of the conference call will be available through February 25, 2016, by dialing (877) 344-7529 and entering pass code 10078277.
The live broadcast of the conference call will also be available online at the Company’s website by following the link to Investor Relations. An on-line replay of the call will be available at the Company’s website for 90 days.
Forward-Looking Statements
This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our most recent Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and FCB Financial Holdings, Inc. undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.
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Use of Non-GAAP Financial Measures
Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP financial measures used in this release. A reconciliation to what we believe to be the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total net interest income, total noninterest income and total noninterest expense in the case of core efficiency ratio, and total shareholders’ equity in the case of tangible book value and tangible book value per share - appears in tabular form at the end of this release. The Company believes each of core net income, core efficiency ratio, and core ROA is useful for both investors and management to understand the effects of certain noninterest items and provides additional perspective on the Company’s performance over time and in comparison to the Company’s competitors. Neither core net income nor core ROA should be viewed as a substitute for net income, nor should core efficiency ratio be viewed as a substitute for total net interest income, total noninterest income and total noninterest expense. The Company believes that tangible book value and tangible book value per share are useful for both investors and management, among other things, as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total stockholders’ equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial results and analyses of results reported under GAAP, and should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About FCB Financial Holdings, Inc.
With $7.3 billion in assets, Florida Community Bank (FCB) is the third largest Florida-based independent bank. Listed on the New York Stock Exchange, (NYSE: FCB), the bank serves the state with 49 full service banking centers. The presence of FCB blankets both Florida coasts from Daytona Beach to Miami-Dade, Naples through Tampa Bay, as well as the I-4 Corridor. FCB is among the most highly capitalized banks in the state with capital ratios exceeding the regulatory standard to be considered “well capitalized.” Complete information outlining the depth and breadth of the company is found at www.FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.
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FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31,
2015 | | | September 30,
2015 | | | June 30,
2015 | | | March 31,
2015 | | | December 31,
2014 | |
| | | (Dollars in thousands, except share and per share data) | |
Interest income: | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 56,945 | | | $ | 51,670 | | | $ | 44,202 | | | $ | 43,306 | | | $ | 43,900 | |
Interest and dividends on investment securities | | | 14,147 | | | | 13,315 | | | | 13,169 | | | | 12,110 | | | | 12,451 | |
Other interest income | | | 65 | | | | 38 | | | | 40 | | | | 33 | | | | 53 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest income | | | 71,157 | | | | 65,023 | | | | 57,411 | | | | 55,449 | | | | 56,404 | |
| | | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | 7,719 | | | | 6,846 | | | | 5,991 | | | | 5,585 | | | | 5,492 | |
Interest on borrowings | | | 1,469 | | | | 1,408 | | | | 1,246 | | | | 980 | | | | 1,133 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 9,188 | | | | 8,254 | | | | 7,237 | | | | 6,565 | | | | 6,625 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 61,969 | | | | 56,769 | | | | 50,174 | | | | 48,884 | | | | 49,779 | |
Provision for loan losses | | | 2,329 | | | | 675 | | | | 2,470 | | | | 1,349 | | | | 3,112 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 59,640 | | | | 56,094 | | | | 47,704 | | | | 47,535 | | | | 46,667 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | |
Service charges and fees | | | 826 | | | | 823 | | | | 778 | | | | 757 | | | | 780 | |
Loan and other fees | | | 2,425 | | | | 1,783 | | | | 1,906 | | | | 2,497 | | | | 2,270 | |
Bank-owned life insurance income | | | 1,315 | | | | 1,101 | | | | 1,097 | | | | 1,097 | | | | 1,168 | |
FDIC loss share indemnification loss | | | — | | | | — | | | | — | | | | (65,529 | ) | | | (5,324 | ) |
Income from resolution of acquired assets | | | 1,110 | | | | 2,225 | | | | 2,898 | | | | 3,372 | | | | 1,061 | |
Gain (loss) on sales of other real estate owned | | | 709 | | | | 228 | | | | 5,605 | | | | 1,565 | | | | 200 | |
Gain (loss) on investment securities | | | (28 | ) | | | 166 | | | | 761 | | | | 1,007 | | | | 2,377 | |
Other noninterest income | | | 1,186 | | | | 746 | | | | 1,107 | | | | 1,145 | | | | 2,912 | |
| | | | | | | | | | | | | | | | | | | | |
Total noninterest income | | | 7,543 | | | | 7,072 | | | | 14,152 | | | | (54,089 | ) | | | 5,444 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 17,750 | | | | 16,840 | | | | 17,856 | | | | 16,575 | | | | 14,885 | |
Occupancy and equipment expenses | | | 3,946 | | | | 3,368 | | | | 3,806 | | | | 3,277 | | | | 3,248 | |
Loan and other real estate related expenses | | | 2,300 | | | | 1,939 | | | | 1,425 | | | | 2,076 | | | | 4,566 | |
Professional services | | | 1,651 | | | | 1,166 | | | | 1,189 | | | | 1,406 | | | | 1,242 | |
Data processing and network | | | 2,719 | | | | 2,433 | | | | 2,801 | | | | 2,718 | | | | 2,639 | |
Regulatory assessments and insurance | | | 2,066 | | | | 1,919 | | | | 2,092 | | | | 2,119 | | | | 1,679 | |
Amortization of intangibles | | | 400 | | | | 400 | | | | 407 | | | | 424 | | | | 425 | |
Other operating expenses | | | 2,369 | | | | 2,641 | | | | 2,471 | | | | 2,055 | | | | 2,779 | |
| | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 33,201 | | | | 30,706 | | | | 32,047 | | | | 30,650 | | | | 31,463 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before income tax expense (benefit) | | | 33,982 | | | | 32,460 | | | | 29,809 | | | | (37,204 | ) | | | 20,648 | |
Income tax expense (benefit) | | | 4,233 | | | | 11,320 | | | | 10,433 | | | | (20,330 | ) | | | 7,548 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 29,749 | | | $ | 21,140 | | | $ | 19,376 | | | $ | (16,874 | ) | | $ | 13,100 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.73 | | | $ | 0.51 | | | $ | 0.47 | | | $ | (0.41 | ) | | $ | 0.32 | |
Diluted | | $ | 0.68 | | | $ | 0.48 | | | $ | 0.45 | | | $ | (0.41 | ) | | $ | 0.31 | |
| | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 40,976,006 | | | | 41,381,482 | | | | 41,428,588 | | | | 41,421,854 | | | | 41,409,698 | |
Diluted | | | 43,643,408 | | | | 43,798,378 | | | | 43,106,131 | | | | 41,421,854 | | | | 42,154,781 | |
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FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | December 31,
2015 | | | September 30,
2015 | | | June 30,
2015 | | | March 31,
2015 | | | December 31,
2014 | |
| | | (Dollars in thousands) | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 44,696 | | | $ | 38,045 | | | $ | 32,161 | | | $ | 46,043 | | | $ | 25,397 | |
Interest-earning deposits in other banks | | | 57,764 | | | | 46,714 | | | | 109,125 | | | | 66,034 | | | | 81,688 | |
Investment securities: | | | | | | | | | | | | | | | | | | | | |
Held to maturity securities | | | — | | | | — | | | | — | | | | — | | | | — | |
Available for sale securities, at fair value | | | 1,524,622 | | | | 1,467,819 | | | | 1,430,149 | | | | 1,447,776 | | | | 1,359,098 | |
Federal Home Loan Bank and other bank stock, at cost | | | 59,477 | | | | 65,955 | | | | 70,505 | | | | 65,289 | | | | 66,891 | |
| | | | | | | | | | | | | | | | | | | | |
Total investment securities | | | 1,584,099 | | | | 1,533,774 | | | | 1,500,654 | | | | 1,513,065 | | | | 1,425,989 | |
| | | | | | | | | | | | | | | | | | | | |
Loans held for sale | | | 2,514 | | | | 2,573 | | | | 4,782 | | | | 1,308 | | | | 707 | |
Loans: | | | | | | | | | | | | | | | | | | | | |
New loans | | | 4,610,763 | | | | 4,158,997 | | | | 3,807,547 | | | | 3,354,452 | | | | 3,103,417 | |
Acquired loans | | | 582,424 | | | | 647,139 | | | | 720,175 | | | | 764,597 | | | | 826,173 | |
Allowance for loan losses | | | (29,126 | ) | | | (27,394 | ) | | | (27,046 | ) | | | (24,513 | ) | | | (22,880 | ) |
| | | | | | | | | | | | | | | | | | | | |
Loans, net | | | 5,164,061 | | | | 4,778,742 | | | | 4,500,676 | | | | 4,094,536 | | | | 3,906,710 | |
| | | | | | | | | | | | | | | | | | | | |
FDIC Loss share indemnification asset | | | — | | | | — | | | | — | | | | — | | | | 63,168 | |
Due from Federal Deposit Insurance Corporation (“FDIC”) | | | — | | | | — | | | | — | | | | — | | | | 1,735 | |
Premises and equipment, net | | | 36,954 | | | | 37,351 | | | | 37,641 | | | | 38,291 | | | | 38,962 | |
Other real estate owned | | | 39,340 | | | | 40,405 | | | | 42,654 | | | | 75,017 | | | | 74,527 | |
Goodwill and other intangible assets | | | 87,084 | | | | 87,484 | | | | 87,884 | | | | 88,291 | | | | 88,615 | |
Deferred tax assets, net | | | 75,176 | | | | 78,090 | | | | 76,720 | | | | 69,656 | | | | 47,441 | |
Bank-owned life insurance | | | 168,246 | | | | 166,931 | | | | 140,830 | | | | 139,733 | | | | 139,829 | |
Other assets | | | 71,552 | | | | 78,580 | | | | 74,071 | | | | 85,109 | | | | 62,860 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 7,331,486 | | | $ | 6,888,689 | | | $ | 6,607,198 | | | $ | 6,217,083 | | | $ | 5,957,628 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
Transaction accounts: | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | $ | 637,047 | | | $ | 618,741 | | | $ | 621,845 | | | $ | 595,389 | | | $ | 593,025 | |
Interest-bearing | | | 2,935,418 | | | | 2,678,410 | | | | 2,586,491 | | | | 2,411,142 | | | | 2,308,657 | |
| | | | | | | | | | | | | | | | | | | | |
Total transaction accounts | | | 3,572,465 | | | | 3,297,151 | | | | 3,208,336 | | | | 3,006,531 | | | | 2,901,682 | |
Time deposits | | | 1,858,173 | | | | 1,524,693 | | | | 1,257,751 | | | | 1,219,470 | | | | 1,076,853 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 5,430,638 | | | | 4,821,844 | | | | 4,466,087 | | | | 4,226,001 | | | | 3,978,535 | |
Borrowings | | | 983,183 | | | | 1,149,920 | | | | 1,232,893 | | | | 1,091,118 | | | | 1,067,981 | |
Other liabilities | | | 41,556 | | | | 61,047 | | | | 50,739 | | | | 53,130 | | | | 59,459 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 6,455,377 | | | | 6,032,811 | | | | 5,749,719 | | | | 5,370,249 | | | | 5,105,975 | |
| | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | | |
Class A common stock | | | 39 | | | | 39 | | | | 37 | | | | 37 | | | | 36 | |
Class B common stock | | | 4 | | | | 4 | | | | 6 | | | | 6 | | | | 7 | |
Additional paid-in capital | | | 850,609 | | | | 846,017 | | | | 839,265 | | | | 836,720 | | | | 834,538 | |
Retained earnings | | | 88,535 | | | | 58,786 | | | | 37,646 | | | | 18,270 | | | | 35,144 | |
Accumulated other comprehensive income (loss) | | | (9,443 | ) | | | (2,905 | ) | | | 78 | | | | 10,552 | | | | 679 | |
Treasury stock, at cost | | | (53,635 | ) | | | (46,063 | ) | | | (19,553 | ) | | | (18,751 | ) | | | (18,751 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 876,109 | | | | 855,878 | | | | 857,479 | | | | 846,834 | | | | 851,653 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 7,331,486 | | | $ | 6,888,689 | | | $ | 6,607,198 | | | $ | 6,217,083 | | | $ | 5,957,628 | |
| | | | | | | | | | | | | | | | | | | | |
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FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31,
2015 | | | September 30,
2015 | | | June 30,
2015 | | | March 31,
2015 | | | December 31,
2014 | |
Performance Ratios | | | | | | | | | | | | | | | | | | | | |
Interest rate spread | | | 3.56 | % | | | 3.49 | % | | | 3.28 | % | | | 3.42 | % | | | 3.50 | % |
Net interest margin | | | 3.69 | % | | | 3.62 | % | | | 3.43 | % | | | 3.58 | % | | | 3.62 | % |
Return on average assets | | | 1.66 | % | | | 1.26 | % | | | 1.22 | % | | | -1.13 | % | | | 0.87 | % |
Return on average equity | | | 13.65 | % | | | 9.73 | % | | | 8.99 | % | | | -7.97 | % | | | 6.15 | % |
Efficiency ratio (company level) | | | 47.19 | % | | | 47.47 | % | | | 49.19 | % | | | -580.71 | % | | | 56.97 | % |
Average interest-earning assets to average interest bearing liabilities | | | 119.25 | % | | | 120.40 | % | | | 121.22 | % | | | 121.55 | % | | | 119.64 | % |
Loans receivable to deposits | | | 95.63 | % | | | 99.67 | % | | | 101.38 | % | | | 97.47 | % | | | 98.77 | % |
Yield on interest-earning assets | | | 4.21 | % | | | 4.12 | % | | | 3.88 | % | | | 4.00 | % | | | 4.08 | % |
Cost of interest-bearing liabilities | | | 0.65 | % | | | 0.63 | % | | | 0.60 | % | | | 0.58 | % | | | 0.58 | % |
Asset and Credit Quality Ratios - Total loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to loans receivable | | | 0.35 | % | | | 0.36 | % | | | 0.39 | % | | | 0.40 | % | | | 0.49 | % |
Nonperforming assets to total assets | | | 0.79 | % | | | 0.84 | % | | | 0.91 | % | | | 1.47 | % | | | 1.58 | % |
Covered loans to total gross loans | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 6.96 | % |
ALL to nonperforming assets | | | 50.47 | % | | | 47.43 | % | | | 44.83 | % | | | 26.77 | % | | | 24.36 | % |
ALL to total gross loans | | | 0.56 | % | | | 0.57 | % | | | 0.60 | % | | | 0.60 | % | | | 0.58 | % |
Asset and Credit Quality Ratios - New Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming new loans to new loans receivable | | | 0.03 | % | | | 0.01 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % |
New loan ALL to total gross new loans | | | 0.52 | % | | | 0.52 | % | | | 0.51 | % | | | 0.52 | % | | | 0.52 | % |
Asset and Credit Quality Ratios - Acquired Loans | | | | | | | | | | | | | | | | | | | | |
Nonperforming acquired loans to acquired loans receivable | | | 2.90 | % | | | 2.61 | % | | | 2.45 | % | | | 2.16 | % | | | 2.34 | % |
Covered acquired loans to total gross acquired loans | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 33.09 | % |
Acquired loan ALL to total gross acquired loans | | | 0.92 | % | | | 0.92 | % | | | 1.04 | % | | | 0.94 | % | | | 0.83 | % |
Capital Ratios (Company) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 12.1 | % | | | 13.0 | % | | | 13.5 | % | | | 14.2 | % | | | 14.2 | % |
Tangible average equity to tangible average assets | | | 11.0 | % | | | 11.8 | % | | | 12.3 | % | | | 12.9 | % | | | 12.9 | % |
Tangible common equity ratio (1) | | | 10.9 | % | | | 11.3 | % | | | 11.8 | % | | | 12.4 | % | | | 13.0 | % |
Tier 1 leverage ratio | | | 11.2 | % | | | 11.5 | % | | | 12.3 | % | | | 12.6 | % | | | 12.8 | % |
Tier 1 risk-based capital ratio | | | 13.1 | % | | | 13.6 | % | | | 14.5 | % | | | 15.2 | % | | | 17.0 | % |
Total risk-based capital ratio | | | 13.6 | % | | | 14.2 | % | | | 15.0 | % | | | 15.7 | % | | | 17.6 | % |
Capital Ratios (Bank) | | | | | | | | | | | | | | | | | | | | |
Average equity to average total assets | | | 11.0 | % | | | 11.5 | % | | | 11.8 | % | | | 11.8 | % | | | 11.7 | % |
Tangible common equity ratio | | | 9.7 | % | | | 10.0 | % | | | 10.2 | % | | | 10.6 | % | | | 10.4 | % |
Tier 1 leverage ratio | | | 10.0 | % | | | 10.3 | % | | | 10.7 | % | | | 10.8 | % | | | 10.4 | % |
Tier 1 risk-based capital ratio | | | 11.7 | % | | | 12.2 | % | | | 13.0 | % | | | 13.4 | % | | | 13.9 | % |
Total risk-based capital ratio | | | 12.2 | % | | | 12.8 | % | | | 13.5 | % | | | 14.0 | % | | | 14.5 | % |
| (1) | See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value |
7
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2015 | | | 2015 | | | 2015 | | | 2015 | | | 2014 | |
| | | (Dollars in thousands) | |
New Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 998,141 | | | $ | 991,451 | | | $ | 942,424 | | | $ | 903,629 | | | $ | 853,074 | |
Owner-occupied commercial real estate | | | 524,728 | | | | 452,991 | | | | 400,438 | | | | 325,972 | | | | 281,703 | |
1-4 single family residential | | | 1,541,255 | | | | 1,326,180 | | | | 1,248,625 | | | | 1,044,480 | | | | 922,657 | |
Construction, land and development | | | 537,494 | | | | 430,690 | | | | 349,659 | | | | 248,623 | | | | 232,601 | |
Home equity loans and lines of credit | | | 30,945 | | | | 28,185 | | | | 22,798 | | | | 20,459 | | | | 11,826 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 3,632,563 | | | $ | 3,229,497 | | | $ | 2,963,944 | | | $ | 2,543,163 | | | $ | 2,301,861 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 972,803 | | | | 925,285 | | | | 837,270 | | | | 805,233 | | | | 795,000 | |
Consumer | | | 5,397 | | | | 4,215 | | | | 6,333 | | | | 6,056 | | | | 6,556 | |
| | | | | | | | | | | | | | | | | | | | |
Total new loans | | $ | 4,610,763 | | | $ | 4,158,997 | | | $ | 3,807,547 | | | $ | 3,354,452 | | | $ | 3,103,417 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 247,628 | | | $ | 259,411 | | | $ | 286,337 | | | $ | 309,758 | | | $ | 336,935 | |
1-4 single family residential | | | 40,922 | | | | 69,915 | | | | 76,849 | | | | 77,685 | | | | 86,308 | |
Construction, land and development | | | 28,017 | | | | 32,996 | | | | 55,453 | | | | 56,403 | | | | 66,700 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 316,567 | | | $ | 362,322 | | | $ | 418,639 | | | $ | 443,846 | | | $ | 489,943 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 36,783 | | | | 46,233 | | | | 58,045 | | | | 63,441 | | | | 67,498 | |
Consumer | | | 2,390 | | | | 2,434 | | | | 2,524 | | | | 2,588 | | | | 2,803 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired ASC 310-30 Loans | | $ | 355,740 | | | $ | 410,989 | | | $ | 479,208 | | | $ | 509,875 | | | $ | 560,244 | |
| | | | | | | | | | | | | | | | | | | | |
Acquired Non-ASC 310-30 Loans: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 55,985 | | | $ | 60,804 | | | $ | 62,473 | | | $ | 69,917 | | | $ | 70,146 | |
Owner-occupied commercial real estate | | | 21,101 | | | | 19,699 | | | | 19,860 | | | | 13,287 | | | | 14,842 | |
1-4 single family residential | | | 84,111 | | | | 86,832 | | | | 86,754 | | | | 97,450 | | | | 102,279 | |
Construction, land and development | | | 6,338 | | | | 6,319 | | | | 8,610 | | | | 9,801 | | | | 9,729 | |
Home equity loans and lines of credit | | | 49,407 | | | | 50,566 | | | | 52,971 | | | | 52,762 | | | | 54,704 | |
| | | | | | | | | | | | | | | | | | | | |
Total real estate loans | | $ | 216,942 | | | $ | 224,220 | | | $ | 230,668 | | | $ | 243,217 | | | $ | 251,700 | |
| | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 9,312 | | | | 11,504 | | | | 9,654 | | | | 10,825 | | | | 13,548 | |
Consumer | | | 430 | | | | 426 | | | | 645 | | | | 680 | | | | 681 | |
| | | | | | | | | | | | | | | | | | | | |
Total Acquired Non-ASC 310-30 Loans | | | 226,684 | | | | 236,150 | | | | 240,967 | | | | 254,722 | | | | 265,929 | |
| | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 5,193,187 | | | $ | 4,806,136 | | | $ | 4,527,722 | | | $ | 4,119,049 | | | $ | 3,929,590 | |
| | | | | | | | | | | | | | | | | | | | |
8
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2015 | | | 2015 | | | 2015 | | | 2015 | | | 2014 | |
| | | (Dollars in thousands) | |
Noninterest-bearing demand deposits | | $ | 637,047 | | | $ | 618,741 | | | $ | 621,845 | | | $ | 595,389 | | | $ | 593,025 | |
Interest-bearing demand deposits | | | 608,454 | | | | 404,085 | | | | 288,990 | | | | 196,192 | | | | 122,380 | |
Interest-bearing NOW accounts | | | 347,832 | | | | 350,602 | | | | 414,795 | | | | 439,400 | | | | 374,399 | |
Savings and money market accounts | | | 1,979,132 | | | | 1,923,723 | | | | 1,882,706 | | | | 1,775,550 | | | | 1,811,878 | |
Time deposits | | | 1,858,173 | | | | 1,524,693 | | | | 1,257,751 | | | | 1,219,470 | | | | 1,076,853 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 5,430,638 | | | $ | 4,821,844 | | | $ | 4,466,087 | | | $ | 4,226,001 | | | $ | 3,978,535 | |
| | | | | | | | | | | | | | | | | | | | |
9
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Three Months Ended
September 30, | |
| | | 2015 | | | 2015 | |
| | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning deposits in other banks | | $ | 142,637 | | | $ | 65 | | | | 0.18 | % | | $ | 79,951 | | | $ | 38 | | | | 0.19 | % |
New loans | | | 4,314,707 | | | | 37,230 | | | | 3.38 | % | | | 3,950,873 | | | | 33,823 | | | | 3.35 | % |
Acquired loans (4) | | | 622,110 | | | | 19,715 | | | | 12.68 | % | | | 685,403 | | | | 17,847 | | | | 10.42 | % |
Investment securities | | | 1,575,963 | | | | 14,147 | | | | 3.51 | % | | | 1,499,640 | | | | 13,315 | | | | 3.47 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 6,655,417 | | | | 71,157 | | | | 4.21 | % | | | 6,215,867 | | | | 65,023 | | | | 4.12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | — | | | | | | | | | | | | — | | | | | | | | | |
Noninterest-earning assets | | | 467,682 | | | | | | | | | | | | 434,393 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 7,123,099 | | | | | | | | | | | $ | 6,650,260 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 567,610 | | | $ | 616 | | | | 0.43 | % | | $ | 369,381 | | | $ | 431 | | | | 0.46 | % |
Interest-bearing NOW accounts | | | 319,586 | | | | 284 | | | | 0.35 | % | | | 397,831 | | | | 342 | | | | 0.34 | % |
Savings and money market accounts | | | 1,906,896 | | | | 2,369 | | | | 0.49 | % | | | 1,895,582 | | | | 2,569 | | | | 0.54 | % |
Time deposits | | | 1,680,997 | | | | 4,450 | | | | 1.05 | % | | | 1,380,658 | | | | 3,504 | | | | 1.01 | % |
FHLB advances and other borrowings | | | 1,105,878 | | | | 1,469 | | | | 0.52 | % | | | 1,119,429 | | | | 1,408 | | | | 0.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 5,580,967 | | | $ | 9,188 | | | | 0.65 | % | | $ | 5,162,881 | | | $ | 8,254 | | | | 0.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 620,508 | | | | | | | | | | | $ | 578,699 | | | | | | | | | |
Other liabilities | | | 56,970 | | | | | | | | | | | | 46,709 | | | | | | | | | |
Stockholders’ equity | | | 864,654 | | | | | | | | | | | | 861,971 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 7,123,099 | | | | | | | | | | | $ | 6,650,260 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 61,969 | | | | | | | | | | | $ | 56,769 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.56 | % | | | | | | | | | | | 3.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.69 | % | | | | | | | | | | | 3.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average balances presented are derived from daily average balances. |
| (2) | Interest income is presented on an actual basis and does not include taxable equivalent adjustments. |
| (3) | Average rates are presented on an annualized basis. |
| (4) | Includes loans on non-accrual status. |
10
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2015 | | | 2014 | |
| | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning deposits in other banks | | $ | 142,637 | | | $ | 65 | | | | 0.18 | % | | $ | 103,597 | | | $ | 53 | | | | 0.20 | % |
New loans | | | 4,314,707 | | | | 37,230 | | | | 3.38 | % | | | 2,844,186 | | | | 24,631 | | | | 3.39 | % |
Acquired loans (4) | | | 622,110 | | | | 19,715 | | | | 12.68 | % | | | 847,438 | | | | 19,269 | | | | 9.10 | % |
Investment securities | | | 1,575,963 | | | | 14,147 | | | | 3.51 | % | | | 1,662,139 | | | | 12,451 | | | | 2.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 6,655,417 | | | | 71,157 | | | | 4.21 | % | | | 5,457,360 | | | | 56,404 | | | | 4.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | — | | | | | | | | | | | | 67,521 | | | | | | | | | |
Noninterest-earning assets | | | 467,682 | | | | | | | | | | | | 428,823 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 7,123,099 | | | | | | | | | | | $ | 5,953,704 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 567,610 | | | $ | 616 | | | | 0.43 | % | | $ | 103,062 | | | $ | 53 | | | | 0.20 | % |
Interest-bearing NOW accounts | | | 319,586 | | | | 284 | | | | 0.35 | % | | | 370,777 | | | | 323 | | | | 0.34 | % |
Savings and money market accounts | | | 1,906,896 | | | | 2,369 | | | | 0.49 | % | | | 1,770,403 | | | | 2,608 | | | | 0.58 | % |
Time deposits | | | 1,680,997 | | | | 4,450 | | | | 1.05 | % | | | 1,120,326 | | | | 2,508 | | | | 0.89 | % |
FHLB advances and other borrowings | | | 1,105,878 | | | | 1,469 | | | | 0.52 | % | | | 1,196,942 | | | | 1,133 | | | | 0.37 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 5,580,967 | | | $ | 9,188 | | | | 0.65 | % | | $ | 4,561,510 | | | $ | 6,625 | | | | 0.58 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 620,508 | | | | | | | | | | | $ | 499,058 | | | | | | | | | |
Other liabilities | | | 56,970 | | | | | | | | | | | | 48,564 | | | | | | | | | |
Stockholders’ equity | | | 864,654 | | | | | | | | | | | | 844,572 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 7,123,099 | | | | | | | | | | | $ | 5,953,704 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 61,969 | | | | | | | | | | | $ | 49,779 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.56 | % | | | | | | | | | | | 3.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.69 | % | | | | | | | | | | | 3.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average balances presented are derived from daily average balances. |
| (2) | Interest income is presented on an actual basis and does not include taxable equivalent adjustments. |
| (3) | Average rates are presented on an annualized basis. |
| (4) | Includes loans on non-accrual status. |
11
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Average Balances and Yields
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Years Ended
December 31, | |
| | | 2015 | | | 2014 | |
| | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | | | Average
Balance (1) | | | Interest/
Expense (2) | | | Annualized
Yield/Rate(3) | |
| | | (Dollars in thousands) | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning deposits in other banks | | $ | 94,162 | | | $ | 176 | | | | 0.19 | % | | $ | 100,849 | | | $ | 211 | | | | 0.21 | % |
New loans | | | 3,734,285 | | | | 126,895 | | | | 3.35 | % | | | 2,299,940 | | | | 81,353 | | | | 3.49 | % |
Acquired loans (4) | | | 708,203 | | | | 69,228 | | | | 9.78 | % | | | 888,444 | | | | 77,317 | | | | 8.70 | % |
Investment securities | | | 1,537,840 | | | | 52,741 | | | | 3.38 | % | | | 1,673,594 | | | | 44,545 | | | | 2.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 6,074,490 | | | | 249,040 | | | | 4.06 | % | | | 4,962,827 | | | | 203,426 | | | | 4.06 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC loss share indemnification asset | | | 10,860 | | | | | | | | | | | | 76,851 | | | | | | | | | |
Noninterest-earning assets | | | 452,288 | | | | | | | | | | | | 407,289 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 6,537,638 | | | | | | | | | | | $ | 5,446,967 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 324,053 | | | $ | 1,405 | | | | 0.43 | % | | $ | 25,977 | | | $ | 53 | | | | 0.20 | % |
Interest-bearing NOW accounts | | | 381,081 | | | | 1,310 | | | | 0.34 | % | | | 245,998 | | | | 749 | | | | 0.30 | % |
Savings and money market accounts | | | 1,860,403 | | | | 9,726 | | | | 0.52 | % | | | 1,708,507 | | | | 9,845 | | | | 0.58 | % |
Time deposits | | | 1,364,064 | | | | 13,700 | | | | 1.00 | % | | | 1,338,016 | | | | 12,111 | | | | 0.91 | % |
FHLB advances and other borrowings | | | 1,110,135 | | | | 5,103 | | | | 0.45 | % | | | 871,296 | | | | 5,496 | | | | 0.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 5,039,736 | | | $ | 31,244 | | | | 0.63 | % | | $ | 4,189,794 | | | $ | 28,254 | | | | 0.68 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities and shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 586,473 | | | | | | | | | | | $ | 433,330 | | | | | | | | | |
Other liabilities | | | 51,218 | | | | | | | | | | | | 48,856 | | | | | | | | | |
Stockholders’ equity | | | 860,211 | | | | | | | | | | | | 774,987 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 6,537,638 | | | | | | | | | | | $ | 5,446,967 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 217,796 | | | | | | | | | | | $ | 175,172 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.43 | % | | | | | | | | | | | 3.38 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.59 | % | | | | | | | | | | | 3.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Average balances presented are derived from daily average balances. |
| (2) | Interest income is presented on an actual basis and does not include taxable equivalent adjustments. |
| (3) | Average rates are presented on an annualized basis. |
| (4) | Includes loans on non-accrual status. |
12
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31,
2015 | | | September 30,
2015 | | | June 30,
2015 | | | March 31,
2015 | | | December 31,
2014 | |
| | | (Dollars in thousands) | |
Net Income (loss) | | $ | 29,749 | | | $ | 21,140 | | | $ | 19,376 | | | $ | (16,874 | ) | | $ | 13,100 | |
Pre-tax Adjustments | | | | | | | | | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | | | | | | | | |
Less: Gain (loss) on investment securities | | | (28 | ) | | | 166 | | | | 761 | | | | 1,007 | | | | 2,377 | |
FDIC loss share indemnification loss | | | — | | | | — | | | | — | | | | (65,529 | ) | | | — | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 48 | | | | 3 | | | | (17 | ) | | | 185 | | | | 1 | |
Occupancy and equipment | | | 512 | | | | — | | | | — | | | | — | | | | — | |
Loan and other real estate related expenses | | | — | | | | — | | | | — | | | | — | | | | — | |
Professional services | | | — | | | | — | | | | 45 | | | | 245 | | | | — | |
Data processing and network fees | | | — | | | | — | | | | — | | | | 2 | | | | — | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Amortization of intangibles | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses | | | 88 | | | | 20 | | | | 203 | | | | 64 | | | | (6 | ) |
Taxes | | | | | | | | | | | | | | | | | | | | |
Tax Effect of adjustments (1) | | | (7,897 | ) | | | 50 | | | | 186 | | | | (30,065 | ) | | | 1,881 | |
| | | | | | | | | | | | | | | | | | | | |
Core Net Income | | $ | 22,528 | | | $ | 21,047 | | | $ | 19,031 | | | $ | 18,079 | | | $ | 12,599 | |
| | | | | | | | | | | | | | | | | | | | |
Average assets | | $ | 7,123,099 | | | $ | 6,650,260 | | | $ | 6,325,073 | | | $ | 6,038,970 | | | $ | 5,953,704 | |
ROA (2) | | | 1.66 | % | | | 1.26 | % | | | 1.23 | % | | | -1.13 | % | | | 0.87 | % |
Core ROA (3) | | | 1.25 | % | | | 1.26 | % | | | 1.21 | % | | | 1.21 | % | | | 0.84 | % |
| (1) | Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items including $9.1 million release of deferred tax asset valuation reserve in Q4 2015. Core tax rate of 35% in 2015. |
| (2) | Return on assets: Annualized net income / average assets |
| (3) | Core return on assets: Annualized core net income / average assets |
13
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Efficiency Ratio
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December 31,
2015 | | | September 30,
2015 | | | June 30,
2015 | | | March 31,
2015 | | | December 31,
2014 | |
| | | (Dollars in thousands) | |
Reported: Net interest income | | $ | 61,969 | | | $ | 56,769 | | | $ | 50,174 | | | $ | 48,884 | | | $ | 49,779 | |
FTE adjustment | | | 1,044 | | | | 1,043 | | | | 986 | | | | 777 | | | | 711 | |
| | | | | | | | | | | | | | | | | | | | |
Core net interest income | | $ | 63,013 | | | $ | 57,812 | | | $ | 51,160 | | | $ | 49,661 | | | $ | 50,490 | |
| | | | | | | | | | | | | | | | | | | | |
Reported: Noninterest income | | $ | 7,543 | | | $ | 7,072 | | | $ | 14,152 | | | $ | (54,089 | ) | | $ | 5,444 | |
FTE adjustment | | | 841 | | | | 704 | | | | 701 | | | | 702 | | | | 747 | |
Less: Gain (loss) on investment securities | | | (28 | ) | | | 166 | | | | 761 | | | | 1,007 | | | | 2,377 | |
FDIC loss share indemnification loss | | | — | | | | — | | | | — | | | | (65,529 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Core noninterest income (loss) | | $ | 8,412 | | | $ | 7,610 | | | $ | 14,092 | | | $ | 11,135 | | | $ | 3,814 | |
| | | | | | | | | | | | | | | | | | | | |
Reported: Noninterest expense | | $ | 33,201 | | | $ | 30,706 | | | $ | 32,047 | | | $ | 30,650 | | | $ | 31,463 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 48 | | | | 3 | | | | (17 | ) | | | 185 | | | | 1 | |
Occupancy and equipment | | | 512 | | | | — | | | | — | | | | — | | | | — | |
Loan and other real estate related expenses | | | — | | | | — | | | | — | | | | — | | | | — | |
Professional services | | | — | | | | — | | | | 45 | | | | 245 | | | | — | |
Data processing and network fees | | | — | | | | — | | | | — | | | | 2 | | | | — | |
Regulatory assessments and insurance | | | — | | | | — | | | | — | | | | — | | | | — | |
Amortization of intangibles | | | — | | | | — | | | | — | | | | — | | | | — | |
Other operating expenses | | | 88 | | | | 20 | | | | 203 | | | | 64 | | | | (6 | ) |
| | | | | | | | | | | | | | | | | | | | |
Core noninterest expense | | $ | 32,553 | | | $ | 30,683 | | | $ | 31,816 | | | $ | 30,154 | | | $ | 31,468 | |
| | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (1) | | | 47.19 | % | | | 47.47 | % | | | 49.19 | % | | | -580.71 | % | | | 56.97 | % |
Core efficiency ratio (2) | | | 45.02 | % | | | 46.29 | % | | | 48.14 | % | | | 48.90 | % | | | 57.95 | % |
| (1) | Efficiency ratio: Noninterest expense less amortization of intangibles / (noninterest income + net interest income) |
| (2) | Core efficiency ratio: Core noninterest expense less amortization of intangibles / (core noninterest income + core net interest income) |
14
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures - Tangible Book Value Per Share
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | December 31 | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2015 | | | 2015 | | | 2015 | | | 2015 | | | 2014 | |
| | | (Dollars in thousands, except share and per share data) | |
Total assets | | $ | 7,331,486 | | | $ | 6,888,689 | | | $ | 6,607,198 | | | $ | 6,217,083 | | | $ | 5,957,628 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 87,084 | | | | 87,484 | | | | 87,884 | | | | 88,291 | | | | 88,615 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible assets | | $ | 7,244,402 | | | $ | 6,801,205 | | | $ | 6,519,314 | | | $ | 6,128,792 | | | $ | 5,869,013 | |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | $ | 876,109 | | | $ | 855,878 | | | $ | 857,479 | | | $ | 846,834 | | | $ | 851,653 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Goodwill and other intangible assets | | | 87,084 | | | | 87,484 | | | | 87,884 | | | | 88,291 | | | | 88,615 | |
| | | | | | | | | | | | | | | | | | | | |
Tangible stockholders’ equity | | $ | 789,025 | | | $ | 768,394 | | | $ | 769,595 | | | $ | 758,543 | | | $ | 763,038 | |
| | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 40,860,453 | | | | 40,984,200 | | | | 41,423,199 | | | | 41,443,031 | | | | 41,409,698 | |
Tangible book value per share | | $ | 19.31 | | | $ | 18.75 | | | $ | 18.58 | | | $ | 18.30 | | | $ | 18.43 | |
Average assets | | $ | 7,123,099 | | | $ | 6,650,260 | | | $ | 6,325,073 | | | $ | 6,038,970 | | | $ | 5,953,704 | |
Average equity | | | 864,654 | | | | 861,971 | | | | 855,128 | | | | 859,011 | | | | 844,572 | |
Average goodwill and other intangible assets | | | 87,291 | | | | 87,701 | | | | 88,091 | | | | 88,536 | | | | 88,835 | |
Tangible average equity to tangible average assets | | | 11.0 | % | | | 11.8 | % | | | 12.3 | % | | | 12.9 | % | | | 12.9 | % |
Tangible common equity ratio | | | 10.9 | % | | | 11.3 | % | | | 11.8 | % | | | 12.4 | % | | | 13.0 | % |
For questions please contact:
Matthew Paluch
305-668-5420
IR@fcb1923.com
15
