FCB Financial Holdings, Inc. Reports Third Quarter 2014 Financial Results

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 at www.floridacommunitybank.com by navigating to Investor Relations or directly at http://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,
20142014201420132013
(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,
20142014201420132013
(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,
20142014

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,
20142013

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,
20142013

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 expense - - 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,
20142014201420132013
(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 %

Contacts:

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

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