News Column

FCB Financial Holdings, Inc. Reports Second Quarter Net Income of $9.2 Million, or $0.26 Per Diluted Share, Up 114% Year Over Year

August 12, 2014

  • Total loan portfolio grew sequentially at an annualized rate of 44%;
  • Record new loan fundings of $477 million during the quarter; up 89% sequentially and 75% year over year,
  • Net Interest Income of $41.2 million, up 35% year over year;
  • Efficiency ratio declined to 64.3%;
  • ROA increased to 69 basis points; and
  • Tangible book value per share increased to $18.11.

    WESTON, Fla.--(BUSINESS WIRE)-- FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported second quarter 2014 net income of $9.2 million, or $0.26 per diluted share, and core net income of $7.4 million, or $0.21 per diluted share. Net income rose 114% year over year and net income per diluted share rose 117%. Core net income rose 113% year over year and core net income per diluted share rose 133%. This resulted in a ROA of 69 basis points and a core ROA of 55 basis points, both of which reflect continued improvements on a sequential and year-over-year basis.

    Core adjustments for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of FDIC equity appreciation agreements ("EAA") expense. The reconciliation of non-GAAP measures (including core net income, core efficiency ratio, core ROA, tangible book value and tangible book value per share), which the Company believes facilitate the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

    Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “We are very pleased with our strong financial momentum as we continue to grow into the scalable platform we have built. Our industry leading loan growth, core deposit momentum and strong asset quality are a result of consistent execution by our teammates throughout the bank.”

    Loan Portfolio and Composition

    The total loan portfolio, gross of the allowance for loan losses, grew by $326.8 million to $3.3 billion at June 30, 2014, an increase of 11% from $2.9 billion as of March 31, 2014 and 97% from $1.7 billion as of June 30, 2013.

    Our new loan portfolio totaled $2.3 billion as of June 30, 2014, an increase of 19% from $1.9 billion as of March 31, 2014 and 112% from $1.1 billion as of June 30, 2013. Our loan growth during the quarter was a result of $477 million of new loan fundings, including $71 million of purchased residential mortgages which was partially offset by the sale of $23 million in new residential loans during the period. As of June 30, 2014 new loans made up 71% of our total loan portfolio as compared to 66% as of March 31, 2014 and June 30, 2013, respectively.

    Our acquired loan portfolio totaled $957.3 million as of June 30, 2014, a decrease of 5% from $1.0 billion as of March 31, 2014 and an increase of 68% from $568.6 million as of June 30, 2013. The decrease in the current quarter was driven by resolutions totaling $36 million as well as scheduled loan amortization while the increase from June 30, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of June 30, 2014, acquired loans made up 29% of our total loan portfolio as compared to 34% as of March 31, 2014 and June 30, 2013, respectively.

    Asset Quality

    The provision for loan losses of $3.2 million recorded for the second quarter of 2014 includes a $3.3 million provision for new loans and ($0.1) million in recoupment due to better than expected performance in the acquired loan portfolio. Net new loan charge-offs for the second quarter of 2014 were $0.3 million. The provision for new loans served to increase the related allowance to $12.4 million, or 0.54% of the $2.3 billion in new loans outstanding. Non-performing new loans (“NPL”) as a percentage of the new loan portfolio remained de minimis at 0.01% for new loan allowance to NPL coverage of 62.7 times.

    Deposits and Borrowings

    Deposits totaled $4.0 billion as of June 30, 2014, an increase of 6% from $3.7 billion as of March 31, 2014 and 61% from $2.5 billion as of June 30, 2013. The increase for the quarter was primarily driven by increased core deposits of $310.3 million offset by reduction in time deposits of $81.7 million. The cost of deposits remained flat at 62 basis points from the first quarter of 2014 and declined 16 basis points from the second quarter of 2013. Continued planned reduction of high cost legacy time deposits drove the improvement year over year. Core deposits include all checking, savings and money market accounts and now represent 64% of total deposits.

    Net Interest Income and Net Interest Margin

    Net interest income totaled $41.2 million in the second quarter of 2014, an increase of 7% from $38.3 million in the first quarter of 2014 and 35% from $30.5 million in the second quarter of 2013. Interest income increased to $48.5 million for the second quarter of 2014, an increase of 8% from $44.9 million in the first quarter of 2014 and 34% from $36.2 million in the second quarter of 2013. Interest income from new loans increased by $2.1 million from the first quarter of 2014 and $8.7 million from the second quarter of 2013 due to continued growth in the new loan portfolio. Additionally, interest income from acquired loans increased by $0.9 million from the first quarter of 2014 and $2.8 million from the second quarter of 2013 as the acquisition of GFB on January 31, 2014 offset average balance reductions attributable to loan resolution, prepayment and amortization. Interest expense increased to $7.3 million for the second quarter of 2014 from $6.6 million for the first quarter of 2014 and $5.7 million for the second quarter of 2013. The increase in interest expense was driven by growth of $302.4 million in average interest bearing deposits from March 31, 2014 and $1.3 billion from June 30, 2013.

    The net interest margin for the second quarter of 2014 was 3.39%, a decline of 23 basis points sequentially and 49 basis points year over year. The decline over the first quarter reflects the growth and increasing mix of new loans at lower rates, as compared to the rate on our acquired loan portfolio and a decrease in yield on the securities portfolio from 2.64% to 2.44%.

    Non-Interest Income and Non-Interest Expense

    Non-interest income totaled $6.7 million in the second quarter of 2014, an increase of 163% from $2.5 million in the first quarter of 2014 and 83% from $3.7 million in the second quarter of 2013. Non-interest income during the second quarter of 2014 includes gain on investment sales, loan fees and negative indemnification asset amortization of $4.4 million, $2.6 million and ($5.9) million, respectively.

    Non-interest expense totaled $30.7 million for the second quarter of 2014, a decrease of 11% from $34.5 million for the first quarter of 2014 and an increase of 12% from $27.5 million for the second quarter of 2013. The sequential decline was largely driven by the elimination of $4.8 million of non-core expenses associated with the GFB acquisition. Non-core expenses for the second quarter of 2014 included $1.0 million of expense related to branch closures and $0.5 million of EAA expense.

    Financial Position

    Capital ratios continue to be strong and well in excess of regulatory requirements. Our Tier 1 leverage and total risk-based capital ratios were 12.0% and 16.5% for the second quarter of 2014 respectively, compared to 13.4% and 18.1% for the first quarter of 2014, respectively. Stockholders’ equity totaled $739.4 million as of June 30, 2014, an increase of 2% from $723.9 million as of March 31, 2014 driven by strong quarterly net income and an increase in other comprehensive income. Tangible book value per common share increased to $18.11 as of June 30, 2014 from $17.65 as of March 31, 2014.

    Conference Call

    The Company plans on hosting quarterly conference calls beginning with the third quarter 2014 earnings announcement.

    Forward-Looking Statements

    This release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, you are cautioned not to place undue reliance on such statements. Additional information regarding certain risks, uncertainties and other factors that could cause actual strategies, actions and results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including under the heading “Risk Factors” in our recent Registration Statement on Form S-1. Any forward-looking statement speaks only as of the date on which it is made, and FCB Financial Holdings, Inc. undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

    Use of Non-GAAP Financial Measures

    Core net income, core efficiency ratio, core return-on-assets ("core ROA"), tangible book value and tangible book value per share are each non-GAAP financial measures used in this release. A reconciliation to what we believe to be the most directly comparable GAAP financial measures - net income in the case of core net income and core ROA, total net interest income, total non-interest income and total non-interest expense in the case of core efficiency ratio, and total shareholders' equity in the case of tangible book value and tangible book value per share - appears in tabular form at the end of this release. The Company believes each of core net income, core efficiency ratio, and core ROA is useful for both investors and management to understand the effects of certain non-interest items and provides additional perspective on the Company’s performance over time and in comparison to the Company's competitors. Neither core net income nor core ROA should be viewed as a substitute for net income, nor should core efficiency ratio be viewed as a substitute for total net interest income, total non-interest income and total non-interest expense. The Company believes that tangible book value and tangible book value per share are useful for both investors and management, among other things, as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.

    These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial results and analyses of results reported under GAAP, and should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

    About FCB Financial Holdings, Inc.

    FCB Financial Holdings, Inc. is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida. Florida Community Bank offers a comprehensive range of traditional banking products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities in its market areas. The Bank targets commercial customers engaged in a wide variety of industries including healthcare and professional services, retail and wholesale trade, tourism, agricultural services, manufacturing, distribution and distribution-related industries, technology, automotive, aviation, food products, building materials, residential housing and commercial real estate.

           
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Consolidated Statements Of Income
    (Unaudited)
       
    Three Months Ended

    June 30,

    2014

    March 31,

    2014

    December 31,

    2013

    September 30,

    2013

    June 30,

    2013

    (Dollars in thousands, except share and per share data)
     
    Interest income:
    Interest and fees on loans $ 37,833 $ 34,852 $ 30,474 $ 26,232 $ 26,297
    Interest and dividends on investment securities 10,032 9,463 8,261 8,874 9,528
    Other interest income   587     603     397     414     329  
    Total interest income   48,452     44,918     39,132     35,520     36,154  
    Interest expense:
    Interest on deposits 5,833 5,309 4,695 4,886 4,644
    Interest on borrowings   1,466     1,264     1,255     1,052     1,038  
    Total interest expense   7,299     6,573     5,950     5,938     5,682  
    Net interest income 41,153 38,345 33,182 29,582 30,472
    Provision for loan losses   3,236     1,090     1,976     (631 )   473  
    Net interest income after provision for loan losses   37,917     37,255     31,206     30,213     29,999  
    Non-interest income:
    Service charges and fees 707 738 693 610 554
    Loan and other fees 2,569 716 1,560 1,356 1,436
    Bank-owned life insurance income 1,038 818 257 - -
    FDIC loss share indemnification loss (5,247 ) (4,992 ) (5,006 ) (5,009 ) (4,729 )
    Income from resolution of acquired assets 1,692 1,037 1,292 1,268 4,116
    Gain/(loss) on sales of other real estate owned (378 ) 432 194 50 (446 )
    Gain on sales of investment securities 4,448 2,495 3,480 2,106 1,710
    Other non-interest income   1,861     1,304     1,125     622     1,019  
    Total non-interest income 6,690 2,548 3,595 1,003 3,660
    Non-interest expense:
    Salaries and employee benefits 13,411 16,420 12,932 10,625 12,057
    Occupancy and equipment expenses 3,777 3,433 2,447 2,413 2,571
    Other real estate and acquired assets resolution related expenses 3,338 3,761 2,851 4,522 6,094
    Professional services 1,352 1,832 1,621 1,278 1,498
    Data processing and network 2,357 3,210 1,897 1,944 1,807
    Regulatory assessments and insurance 1,920 1,774 1,445 1,402 1,278
    Amortization of intangibles 443 416 367 368 380
    Other operating expenses   4,146     3,620     2,508     1,706     1,770  
    Total non-interest expense   30,744     34,466     26,068     24,258     27,455  
    Income before income tax provision expense 13,863 5,337 8,733 6,958 6,204
    Income tax provision expense   4,697     1,809     2,809     2,486     1,927  
    Net income $ 9,166   $ 3,528   $ 5,924   $ 4,472   $ 4,277  
     
    Earnings per share:
    Basic $ 0.26 $ 0.10 $ 0.16 $ 0.12 $ 0.12
    Diluted $ 0.26 $ 0.10 $ 0.16 $ 0.12 $ 0.12
     
    Weighted average shares outstanding:
    Basic 35,892,154 35,892,154 36,756,073 37,011,598 37,011,598
    Diluted 35,896,207 35,896,445 36,760,364 37,015,889 37,015,889
     
       
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Unaudited)
         

    June 30,

    2014

    March 31,

    2014

    December 31,

    2013

    (Dollars in thousands, except share and per share data)
    Assets:
    Cash and due from banks $ 29,976 $ 34,162 $ 28,819
    Interest-earning deposits in other banks 100,634 53,535 210,398
    Investment securities:
    Held to maturity securities - 369 365
    Available for sale securities, at fair value 1,724,702 1,612,386 1,145,771
    Federal Home Loan Bank and other bank stock, at cost   56,328     43,354     36,187  
    Total investment securities   1,781,030     1,656,109     1,182,323  
    Loans held for sale 1,492 - -
    Loans:
    New loans 2,306,337 1,932,196 1,770,711
    Acquired loans 957,315 1,006,166 488,073
    Allowance for loan losses   (17,884 )   (15,494 )   (14,733 )
    Loans, net 3,245,768 2,922,868 2,244,051
    FDIC Loss share indemnification asset 74,853 80,605 87,229
    Due from Federal Deposit Insurance Corporation ("FDIC") 969 1,938 3,659
    Premises and equipment, net 42,122 43,533 40,941
    Other real estate owned 80,988 86,244 34,682
    Goodwill and other intangible assets 89,466 90,317 39,369
    Deferred tax assets, net 35,439 39,183 5,828
    Bank owned life insurance 117,113 116,075 75,257
    Other assets   41,858     42,931     20,814  
    Total assets$5,641,708   $5,167,500   $3,973,370  
    Liabilities and Stockholders' Equity
    Deposits:
    Transaction accounts:
    Non-interest bearing $ 435,055 $ 417,529 $ 291,658
    Interest bearing   2,090,290     1,797,976     1,336,679  
    Total transaction accounts 2,525,345 2,215,505 1,628,337
    Time deposits   1,432,921     1,514,164     1,165,196  
    Total deposits 3,958,266 3,729,669 2,793,533
    Total borrowings 855,300 665,829 435,866
    Investment securities purchased not yet settled 41,601 6,998 -
    Other liabilities   47,093     41,135     27,857  
    Total liabilities   4,902,260     4,443,631     3,257,256  
    Stockholders' Equity:
    Class A common stock 29 29 29
    Class B common stock 8 8 8
    Additional paid-in capital 724,519 724,067 723,631
    Retained earnings 25,466 16,300 12,772
    Accumulated other comprehensive income (loss) 8,177 2,216 (1,575 )
    Treasury stock, at cost   (18,751 )   (18,751 )   (18,751 )
    Total stockholders' equity   739,448     723,869     716,114  
    Total liabilities and stockholders' equity$5,641,708   $5,167,500   $3,973,370  
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Key Metrics
    (Unaudited)
     
      Three Months Ended

    June 30,

    2014

     

    March 31,

    2014

     

    December 31,

    2013

     

    September 30,

    2013

     

    June 30,

    2013

    Performance Ratios
    Interest rate spread 3.26 % 3.45 % 3.55 % 3.31 % 3.60 %
    Net interest margin 3.39 % 3.62 % 3.76 % 3.54 % 3.88 %
    Return on average assets 0.69 % 0.30 % 0.62 % 0.49 % 0.50 %
    Return on average equity 5.02 % 1.98 % 3.21 % 2.43 % 2.33 %
    Efficiency ratio (company level) 64.26 % 84.28 % 70.88 % 79.31 % 80.44 %
    Average interest-earning assets to average interest bearing liabilities 117.15 % 118.86 % 128.09 % 130.25 % 132.32 %
    Loans receivable to deposits 82.45 % 78.78 % 80.86 % 72.59 % 67.14 %
    Yield on interest-earning assets 3.96 % 4.19 % 4.41 % 4.23 % 4.56 %
    Cost of interest-bearing liabilities 0.70 % 0.74 % 0.86 % 0.92 % 0.96 %
    Asset and Credit Quality Ratios - Total loans
    Nonperforming loans to loans receivable 1.07 % 0.90 % 1.51 % 1.65 % 1.78 %
    Nonperforming assets to total assets 2.06 % 2.18 % 1.73 % 2.12 % 2.09 %
    Covered loans to total gross loans 10.00 % 11.47 % 15.90 % 20.56 % 25.87 %
    ALL to nonperforming assets 15.42 % 13.76 % 21.40 % 16.94 % 21.21 %
    ALL to total gross loans 0.55 % 0.53 % 0.65 % 0.71 % 0.95 %
    Asset and Credit Quality Ratios - New Loans
    Nonperforming new loans to new loans receivable 0.01 % 0.00 % 0.06 % 0.00 % 0.00 %
    Covered new loans to total gross new loans 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %
    New loan ALL to total gross new loans 0.54 % 0.49 % 0.47 % 0.43 % 0.50 %
    Asset and Credit Quality Ratios - Acquired Loans
    Nonperforming acquired loans to acquired loans receivable 3.63 % 2.62 % 6.78 % 5.93 % 5.18 %
    Covered acquired loans to total gross acquired loans 34.11 % 33.51 % 73.60 % 73.82 % 75.32 %
    Acquired loan ALL to total gross acquired loans 0.57 % 0.60 % 1.32 % 1.42 % 1.82 %
    Capital Ratios (Company)
    Average equity to average total assets 13.7 % 15.3 % 19.4 % 20.3 % 21.5 %
    Tangible average equity to tangible average assets 12.2 % 13.9 % 18.5 % 19.4 % 20.6 %
    Tangible common equity ratio (1) 11.7 % 12.5 % 17.2 % 19.2 % 19.6 %
    Tier 1 leverage ratio 12.0 % 13.4 % 18.0 % 19.3 % 20.2 %
    Tier 1 risk-based capital ratio 16.0 % 17.6 % 24.8 % 27.9 % 30.9 %
    Total risk-based capital ratio 16.5 % 18.1 % 25.3 % 28.5 % 31.6 %
    Capital Ratios (Bank)
    Average equity to average total assets 11.9 % 12.3 % 12.5 % 13.0 % 13.8 %
    Tangible common equity ratio 10.4 % 10.5 % 11.5 % 11.8 % 12.1 %
    Tier 1 leverage ratio 10.8 % 11.2 % 12.0 % 11.9 % 12.4 %
    Tier 1 risk-based capital ratio 14.4 % 14.9 % 16.7 % 17.5 % 19.2 %
    Total risk-based capital ratio 14.9 % 15.4 % 17.3 % 18.0 % 20.0 %
     
    (1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Loan Composition
    (Unaudited)
             
    As of
    June 30,March 31,December 31,September 30,June 30,
    20142014201320132013
    (Dollars in thousands)
    New Loans:
    Commercial real estate (1) $ 892,999 $ 735,432 $ 669,711 $ 475,514 $ 395,497
    1-4 single family residential 523,987 384,076 359,818 164,022 103,407
    Construction, land and development 123,169 79,215 75,666 63,455 55,688
    Home equity loans and lines of credit   9,631   22,559   19,303   13,466   1,654
    Total real estate loans $ 1,549,786 $ 1,221,282 $ 1,124,498 $ 716,457 $ 556,246
    Commercial and industrial 753,984 709,506 645,037 612,555 526,105
    Consumer   2,567   1,408   1,176   7,880   4,729
    Total New loans $ 2,306,337 $ 1,932,196 $ 1,770,711 $ 1,336,892 $ 1,087,080
     
    Acquired ASC 310-30 Loans:
    Commercial real estate $ 413,154 $ 426,940 $ 274,147 $ 290,476 $ 306,181
    1-4 single family residential 98,802 103,776 56,745 58,039 60,861
    Construction, land and development 76,210 82,833 55,936 60,429 88,389
    Home equity loans and lines of credit   -   -   -   -   -
    Total real estate loans $ 588,166 $ 613,549 $ 386,828 $ 408,944 $ 455,431
    Commercial and industrial 81,444 85,360 57,047 60,085 64,235
    Consumer   3,345   3,674   3,992   4,317   4,636
    Total Acquired ASC 310-30 Loans $ 672,955 $ 702,583 $ 447,867 $ 473,346 $ 524,302
     
    Acquired Non-ASC 310-30 Loans:
    Commercial real estate $ 90,661 $ 97,440 $ 12,705 $ 12,734 $ 12,528
    1-4 single family residential 111,056 100,450 10,174 11,618 10,436
    Construction, land and development 8,077 8,061 - - 1,078
    Home equity loans and lines of credit   56,926   65,340   11,998   11,891   13,487
    Total real estate loans $ 266,720 $ 271,291 $ 34,877 $ 36,243 $ 37,529
    Commercial and industrial 16,519 30,831 5,040 6,083 6,501
    Consumer   1,121   1,461   289   303   304
    Total Acquired Non-ASC 310-30 Loans   284,360   303,583   40,206   42,629   44,334
    Total Loans $ 3,263,652 $ 2,938,362 $ 2,258,784 $ 1,852,867 $ 1,655,716
     
    (1) Owner Occupied Commercial Real Estate in the new loan portfolio is $230.5 MM, $166.0 MM, $155.0 MM, $113.9 MM and $109.7 MM, respectively.
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Deposit Composition
    (Unaudited)
             
    As of
    June 30,March 31,December 31,September 30,June 30,
    20142014201320132013
    (Dollars in thousands)
     
    Non-interest bearing demand deposits $ 435,055 $ 417,529 $ 291,658 $ 282,487 $ 273,619
    Interest-bearing demand deposits 120,197 103,063 84,837 70,617 75,162
    Savings and money market accounts 1,970,093 1,694,913 1,251,842 1,031,726 996,848
    Time deposits   1,432,921   1,514,164   1,165,196   1,167,677   1,120,345
    Total deposits $ 3,958,266 $ 3,729,669 $ 2,793,533 $ 2,552,507 $ 2,465,974
     
           
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Quarterly Average Balances and Yields
    (Unaudited)
       
    Three Months Ended June 30,Three Months Ended March 31,
    20142014

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    (Dollars in thousands)
    Interest-earning assets:
    Cash & equivalents $ 97,493 $ 53 0.22 % $ 126,136 $ 67 0.22 %
    New loans 2,087,601 18,475 3.50 % 1,814,109 16,381 3.61 %
    Acquired loans 967,986 19,358 8.00 % 834,093 18,471 8.86 %
    Investment securities and other   1,710,662   10,566 2.44 %   1,517,598   9,999 2.64 %
    Total interest earning assets   4,863,742   48,452 3.96 %   4,291,936   44,918 4.19 %
    Non-earning assets:
    FDIC loss share indemnification asset 78,916 85,998
    Non-interest earning assets   411,602   347,185

    Total assets

    $ 5,354,260 $ 4,725,119
    Interest bearing liabilities:
    Interest bearing transaction accounts $ 112,752 $ 43 0.15 % $ 99,470 $ 36 0.15 %
    Savings and money market accounts 1,787,574 2,564 0.58 % 1,552,067 1,883 0.49 %
    Time deposits 1,464,728 3,226 0.88 % 1,411,109 3,390 0.97 %
    FHLB advances and other borrowings   786,513   1,466 0.74 %   548,267   1,264 0.92 %
    Total interest-bearing liabilities $ 4,151,567 $ 7,299 0.70 % $ 3,610,913 $ 6,573 0.74 %

    Non-interest bearing liabilities and shareholders' equity:

    Non-interest bearing demand deposits $ 420,420 $ 353,023
    Other liabilities 49,896 38,962
    Stockholders' equity   732,377   722,221
    Total liabilities and stockholders' equity $ 5,354,260   $ 4,725,119  
    Net interest income $ 41,153   $ 38,345  
    Net interest spread 3.26 % 3.45 %
    Net interest margin 3.39 % 3.62 %
     
    (1) Average rates are presented on an annualized basis based on the respective method of interest accrual.
     
             
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Quarterly Average Balances and Yields
    (Unaudited)
     
    Three Months Ended June 30,
    20142013

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    (Dollars in thousands)
    Interest-earning assets:
    Cash & equivalents $ 97,493 $ 53 0.22 % $ 95,730 $ 40 0.17 %
    New loans 2,087,601 18,475 3.50 % 982,080 9,748 3.93 %
    Acquired loans 967,986 19,358 8.00 % 569,623 16,549 11.62 %
    Investment securities and other   1,710,662   10,566 2.44 %   1,502,313   9,817 2.58 %
    Total interest earning assets   4,863,742   48,452 3.96 %   3,149,746   36,154 4.56 %
    Non-earning assets:
    FDIC loss share indemnification asset 78,916 110,615
    Non-interest earning assets   411,602   164,961
    Total assets $ 5,354,260 $ 3,425,322
    Interest bearing liabilities:
    Interest bearing transaction accounts $ 112,752 $ 43 0.15 % $ 69,137 $ 17 0.10 %
    Savings and money market accounts 1,787,574 2,564 0.58 % 940,687 1,179 0.50 %
    Time deposits 1,464,728 3,226 0.88 % 1,098,457 3,448 1.26 %
    FHLB advances and other borrowings   786,513   1,466 0.74 %   272,050   1,038 1.51 %
    Total interest-bearing liabilities $ 4,151,567 $ 7,299 0.70 % $ 2,380,331 $ 5,682 0.96 %

    Non-interest bearing liabilities and shareholders' equity:

    Non-interest bearing demand deposits $ 420,420 $ 267,078
    Other liabilities 49,896 41,825
    Stockholders' equity   732,377   736,088
    Total liabilities and stockholders' equity $ 5,354,260   $ 3,425,322  
    Net interest income $ 41,153   $ 30,472  
    Net interest spread 3.26 % 3.60 %
    Net interest margin 3.39 % 3.88 %
     
    (1) Average rates are presented on an annualized basis based on the respective method of interest accrual.
     
               
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Year to Date Average Balances and Yields
    (Unaudited)
     
    Six Months Ended June 30,
    20142013

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    Average

    Balance

    Interest/

    Expense

    Annualized

    Yield/Rate (1)

    (Dollars in thousands)
    Interest-earning assets:
    Cash & equivalents $ 111,736 $ 121 0.22 % $ 75,791 $ 70 0.19 %
    New loans 1,951,611 34,856 3.55 % 886,459 17,847 4.00 %
    Acquired loans 901,409 37,829 8.39 % 585,063 33,968 11.61 %
    Investment securities and other   1,614,663   20,564 2.53 %   1,495,056   18,726 2.49 %
    Total interest earning assets   4,579,419   93,370 4.06 %   3,042,369   70,611 4.63 %
    Non-earning assets:
    FDIC loss share indemnification asset 82,437 116,389
    Non-interest earning assets   379,571   157,013
    Total assets $ 5,041,427 $ 3,315,771
    Interest bearing liabilities:
    Interest bearing transaction accounts $ 106,148 $ 79 0.15 % $ 68,149 $ 32 0.10 %
    Savings and money market accounts 1,670,470 4,447 0.54 % 872,543 2,059 0.48 %
    Time deposits 1,438,067 6,616 0.93 % 1,075,858 6,865 1.29 %
    FHLB advances and other borrowings   668,048   2,730 0.81 %   277,781   2,096 1.50 %
    Total interest-bearing liabilities $ 3,882,733 $ 13,872 0.72 % $ 2,294,331 $ 11,052 0.97 %

    Non-interest bearing liabilities and shareholders' equity:

    Non-interest bearing demand deposits $ 386,908 $ 247,029
    Other liabilities 44,459 40,920
    Stockholders' equity   727,327   733,491
    Total liabilities and stockholders' equity $ 5,041,427   $ 3,315,771  
    Net interest income $ 79,498   $ 59,559  
    Net interest spread 3.34 % 3.66 %
    Net interest margin 3.50 % 3.95 %
     
    (1) Average rates are presented on an annualized basis based on the respective method of interest accrual.
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Reconciliation of Non-GAAP Financial Measures - Core Net Income
    (Unaudited)
             
    Three Months Ended
    June 30,March 31,December 31,September 30,June 30,
    20142014201320132013
    (Dollars in thousands)
     
    Net Income$9,166$3,528$5,924$4,472$4,277
     
    Pre-tax Adjustments
    Non-interest income
    Less: Gain on sales of investment securities 4,448 2,495 3,480 2,106 1,710
    Non-interest expense
    Salaries and employee benefits - 2,220 65 232 91
    Occupancy and equipment 225 - - - -
    OREO & acquired assets resolution related expense - 135 - - -
    Professional services - 379 347 64 158
    Data processing and network fees - 893 125 - 116
    Regulatory assessments and insurance - - - - -
    Other operating expenses 1,290 1,467 40 137 11
    Taxes
    Tax Effect of adjustments (1)   1,144     (1,014 )   1,132     652     520  
    Core Net Income$7,377   $5,113   $4,153   $3,451   $3,463  
     
    Average assets $ 5,354,260 $ 4,725,119 $ 3,781,231 $ 3,590,388 $ 3,425,322
    ROA (2) 0.69 % 0.30 % 0.62 % 0.49 % 0.50 %
    Core ROA (3) 0.55 % 0.44 % 0.44 % 0.38 % 0.41 %
     
    (1) Tax effected at marginal income tax rate of 39%
    (2) Return on assets: Annualized net income / average assets
    (3) Core return on assets: Annualized core net income / average assets
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Reconciliation of Non-GAAP Financial Measures - Core Efficiency Ratio
    (Unaudited)
             
    Three months ended
    June 30,March 31,December 31,September 30,June 30,
    20142014201320132013
    (Dollars in thousands)
     
    Reported: Net interest income $ 41,153 $ 38,345 $ 33,182 $ 29,582 $ 30,472
    FTE adjustment   487     492     556     547     719  
    Core net interest income$41,640   $38,837   $33,738   $30,129   $31,191  
     
    Reported: Non-interest income $ 6,690 $ 2,548 $ 3,595 $ 1,003 $ 3,660
    FTE adjustment 664 523 164 - -
    Less: Gain on sales of investment securities   4,448     2,495     3,480     2,106     1,710  
    Core non-interest income $2,906   $576   $279   $(1,103)$1,950  
    Reported: Non-interest expense $ 30,744 $ 34,466 $ 26,068 $ 24,258 $ 27,455
    Less:
    Salaries and employee benefits - 2,220 65 232 91
    Occupancy and equipment 225 - - - -
    OREO & acquired assets resolution related exp - 135 - - -
    Professional services - 379 347 64 158
    Data processing and network fees - 893 125 - 116
    Regulatory assessments and insurance - - - - -
    Other operating expenses   1,290     1,467     40     137     11  
    Core non-interest expense $29,229   $29,372   $25,491   $23,825   $27,079  
    Efficiency ratio (1)64.26%84.28%70.88%79.31%80.44%
    Core efficiency ratio (2)65.62%74.52%74.94%82.08%81.71%
     
    (1) Efficiency ratio: Non-interest expense / (non-interest income + net interest income)
    (2) Core efficiency ratio: Core non-interest expense / (core non-interest income + core net interest income)
     
     
    FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
    Reconciliation of Non-GAAP Measures - Tangible Book Value Per Share
    (Unaudited)
             
    June 30,March 31,December 31,September 30,June 30,
    20142014201320132013
    (Dollars in thousands, except share and per share data)
     
    Total assets $ 5,641,708 $ 5,167,500 $ 3,973,370 $ 3,638,095 $ 3,554,590
    Less:
    Goodwill and other intangible assets   89,466     90,317     39,369     39,736     40,104  
    Tangible assets $ 5,552,242   $ 5,077,183   $ 3,934,001   $ 3,598,359   $ 3,514,486  
    Total stockholder's equity $ 739,448 $ 723,869 $ 716,114 $ 729,253 $ 729,908
    Less:
    Goodwill and other intangible assets   89,466     90,317     39,369     39,736     40,104  
    Tangible stockholder's equity $ 649,982   $ 633,552   $ 676,745   $ 689,517   $ 689,804  
    Shares outstanding 35,892,154 35,892,154 35,892,154 37,011,598 37,011,598
    Tangible book value per share $ 18.11 $ 17.65 $ 18.85 $ 18.63 $ 18.64
    Average assets $ 5,354,260 $ 4,725,119 $ 3,781,231 $ 3,590,388 $ 3,425,322
    Average equity 732,377 722,221 732,824 728,693 736,088
    Average goodwill and other intangible assets 90,431 73,427 39,521 39,908 40,248
    Tangible average equity to tangible average assets 12.2 % 13.9 % 18.5 % 19.4 % 20.6 %
    Tangible common equity ratio 11.7 % 12.5 % 17.2 % 19.2 % 19.6 %
     





    FCB Financial Holdings, Inc.

    Matthew Paluch, 305-668-5420

    IR@fcb1923.com


    Source: FCB Financial Holdings, Inc.


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