FCB Financial Holdings, Inc. Surpasses $9.5 Billion in Assets and Reports Record First Quarter 2017 Financial Results

WESTON, Fla.--()--FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported first quarter 2017 net income of $39.0 million, or $0.86 per share on a fully diluted basis, and record core net income of $29.1 million, or $0.64 per share on a fully diluted basis. Core net income rose 28% year-over-year and core net income per diluted share rose 21%. This resulted in a ROA of 172 basis points and a core ROA of 128 basis points.

  • Total fully tax equivalent core net revenue of $81.1 million;
  • Core EPS of $0.64 per share on a fully diluted basis;
  • New loan portfolio grew sequentially at an annualized rate of 27% when excluding the impact of reducing the Syndicated loan portfolio;
  • New loan fundings of $492.2 million during the quarter and reduction of Syndicated loan portfolio of $120.5 million;
  • Total deposits grew sequentially at an annualized rate of 20%;
  • Total deposits grew by $368.7 million during the quarter;
  • Demand deposits grew by $216.9 million, or 46% annualized, during the quarter;
  • Core efficiency ratio of 42.9%;
  • Core ROA of 128 basis points; and
  • Tangible book value per share was $22.85.

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 first quarter of 2017 include $56 thousand of severance expense, $12 thousand of other operating expense and $777 thousand gain on sale of investment securities. Additionally, the Company expects its 2017 annual GAAP tax rate to be between 30-32% due to the accounting impact of option and warrant exercises in concordance with ASU 2016-09 which was effective January 1, 2017.

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, “The first quarter was yet again a record quarter for FCB, marking the 17th consecutive quarter of improving core operating results. We are pleased by our consistent and quality organic growth results this quarter highlighted by new loan fundings of $492 million and core deposit growth of $552 million. Once again these results were coupled with continued strong credit quality and are a reflection of our unique brand in Florida.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $283.5 million to $6.9 billion at March 31, 2017, an increase of 4% from $6.6 billion as of December 31, 2016, and 23% from $5.6 billion as of March 31, 2016.

The Bank’s new loan portfolio totaled $6.6 billion as of March 31, 2017, an increase of 5% from $6.3 billion as of December 31, 2016 and 28% from $5.1 billion as of March 31, 2016. Loan growth during the quarter was a result of $492.2 million of organic new loan fundings, consisting of $159.2 million of commercial and industrial, $209.4 million of commercial real estate and $123.6 million of residential and consumer. Additionally, during the quarter the Company reduced its syndicated loan portfolio by $120.4 million to $314.9 million. As of March 31, 2017 new loans made up 95% of the total loan portfolio as compared to 94% and 91% as of December 31, 2016 and March 31, 2016, respectively.

The Bank’s acquired loan portfolio totaled $366.2 million as of March 31, 2017, a decrease of 2% from $375.5 million as of December 31, 2016 and a decrease of 32% from $535.1 million as of March 31, 2016. The decrease in the current quarter was driven by the resolution of $3.4 million of loans as well as scheduled loan amortization. As of March 31, 2017, acquired loans made up 5% of our total loan portfolio as compared to 6% and 9% as of December 31, 2016 and March 31, 2016, respectively.

Asset Quality

The provision for loan losses of $1.6 million recorded for the first quarter of 2017 includes a $2.0 million provision for new loans and net recoupment of valuation allowance of $0.4 million for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $35.4 million, or 0.54% of the $6.6 billion in new loans outstanding. The nonperforming new loan ratio as of March 31, 2017 was 0.02%.

Deposits and Borrowings

Deposits totaled $7.7 billion as of March 31, 2017, an increase of 5% from $7.3 billion as of December 31, 2016 and an increase of 30% from $5.9 billion as of March 31, 2016. During the first quarter of 2017, demand deposits increased by $216.9 million, or 11%, from December 31, 2016 and increased by $741.6 million, or 54%, from March 31, 2016. Demand deposits represent 28% of total deposits as of March 31, 2017 as compared to 26% and 23% as of December 31, 2016 and March 31, 2016, respectively. The cost of deposits was 75 basis points for the quarter, representing a three basis points increase from the fourth quarter of 2016 and a 9 basis points increase from the first quarter of 2016. The primary driver of the increase over the periods is attributable to the Federal Reserve rate hikes in December 2015, December 2016 and March 2017.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2017 was 3.24%, a decrease of 17 basis points from the fourth quarter of 2016 and a decrease of 41 basis points from the first quarter of 2016. The decrease from the fourth quarter of 2016 was due primarily to the continued attrition of the acquired loan portfolio.

Net interest income totaled $69.7 million in the first quarter of 2017, a decrease of 2% from $71.1 million in the fourth quarter of 2016 and an increase of 8% from $64.4 million in the first quarter of 2016. Interest income totaled $85.2 million for the first quarter of 2017, in line with $85.6 million in the fourth quarter of 2016 and an increase of 13% from $75.7 million in the first quarter of 2016. Interest income from new loans increased by $4.7 million, or 9%, from the fourth quarter of 2016 due to yield expansion and continued growth in the new loan portfolio. Interest income on acquired loans decreased by $6.7 million, or 46%, from the fourth quarter due to balance runoff and a reduction in loan resolutions. Interest expense was $15.6 million for the first quarter of 2017, an increase of 7% from $14.5 million in the fourth quarter of 2016 and an increase of 38% from $11.3 million in the first quarter of 2016. The increase from the fourth quarter of 2016 was a result of a 5%, or $354.3 million, increase of average interest-bearing liabilities and the impact of the December 2016 and March 2017 Federal Reserve rate hikes on funding costs.

Noninterest Income and Noninterest Expense

Noninterest income totaled $10.0 million for the first quarter of 2017 as compared to $7.9 million for the fourth quarter of 2016 and $5.4 million for the first quarter of 2016. The primary components of noninterest income for the quarter were loan and other fees, bank-owned life insurance income and other noninterest income of $2.5 million, $1.4 million and $3.6 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 in March 2015, 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.

Noninterest expense totaled $35.1 million for the first quarter of 2017, an increase of 4% from $33.6 million in the fourth quarter of 2016 and an increase of 5% from $33.3 million in the first quarter of 2016. For the quarter, the Company recorded non-core expenses of $68 thousand consisting of $56 thousand of severance expense and $12 thousand of other operating expense.

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 10.3%, 10.5% and 12.8% for the first quarter of 2017 respectively, compared to 10.0%, 10.3% and 12.5% for the fourth quarter of 2016, respectively. Stockholders’ equity totaled $1.1 billion as of March 31, 2017, an increase of 7.4% from $982.4 million as of December 31, 2016 due to net income of $39.0 million, $23.1 million of additional paid-in capital and an increase in accumulated other comprehensive income of $10.7 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $22.85 as of March 31, 2017.

Conference Call

The Company will host a conference call today, Thursday, April 20, 2017 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 May 20, 2017, by dialing (877) 344-7529 and entering pass code 10102767.

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.

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.

FCB Financial Holdings, Inc. (NYSE: FCB) is the third largest Florida-based independent bank, and among the most highly capitalized banks in the state. Awarded a five-star rating from Bauer Financial™, FCB assets are more than $9.5 billion, with capital ratios that exceed regulatory standards. Since its founding in 2010, FCB has been steadfast in its commitment to delivering personalized service, innovation, and products and services equal to those offered by the national banks. Similarly, FCB recognizes the importance of community, fostering a corporate culture that promotes employee volunteerism at all levels, while supporting community-based programs and partnerships that help promote greater financial independence and improved quality of life for families. FCB serves individuals, businesses and communities across the state with 46 full-service banking centers from east to west, and from Daytona Beach to Miami-Dade. For more information, visit FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
                 
Three Months Ended  
March 31, December 31, September 30, June 30, March 31,
2017   2016   2016   2016   2016  
(Dollars in thousands, except share and per share data)
 
Interest income:
Interest and fees on loans $ 66,589 $ 68,583 $ 65,748 $ 62,642 $ 61,288
Interest and dividends on investment securities 18,561 16,907 14,955 14,470 14,374
Other interest income   72   90   97   96   66  
Total interest income   85,222   85,580   80,800   77,208   75,728  
Interest expense:
Interest on deposits 13,518 12,960 11,736 10,340 9,293
Interest on borrowings   2,034   1,554   1,786   1,938   1,993  
Total interest expense   15,552   14,514   13,522   12,278   11,286  
Net interest income 69,670 71,066 67,278 64,930 64,442
Provision for loan losses   1,643   2,249   1,990   1,976   1,440  
Net interest income after provision for loan losses   68,027   68,817   65,288   62,954   63,002  
Noninterest income:
Service charges and fees 915 935 884 842 806
Loan and other fees 2,495 2,488 2,145 2,248 2,014
Bank-owned life insurance income 1,414 1,333 1,288 1,286 1,285
Income from resolution of acquired assets 762 1,135 1,052 478 680
Gain (loss) on sales of other real estate owned 45 209 925 2,102 (110 )
Gain (loss) on investment securities 777 800 749 324 (54 )
Other noninterest income   3,579   1,019   1,099   942   813  
Total noninterest income   9,987   7,919   8,142   8,222   5,434  
Noninterest expense:
Salaries and employee benefits 20,497 19,261 18,711 19,614 18,645
Occupancy and equipment expenses 3,397 3,505 3,480 3,034 3,572
Loan and other real estate related expenses 1,227 1,467 1,834 2,235 1,820
Professional services 1,352 1,585 1,180 1,105 1,337
Data processing and network 2,965 2,920 2,882 2,796 2,863
Regulatory assessments and insurance 2,177 2,055 1,860 1,840 2,117
Amortization of intangibles 256 256 257 297 379
Other operating expenses   3,213   2,597   2,832   3,054   2,567  
Total noninterest expense   35,084   33,646   33,036   33,975   33,300  
Income before income tax expense 42,930 43,090 40,394 37,201 35,136
Income tax expense   3,941   15,194   14,330   13,697   12,684  
Net income $ 38,989 $ 27,896 $ 26,064 $ 23,504 $ 22,452  
 
Earnings per share:
Basic $ 0.93 $ 0.68 $ 0.64 $ 0.58 $ 0.55
Diluted $ 0.86 $ 0.64 $ 0.60 $ 0.55 $ 0.52
 
Weighted average shares outstanding:
Basic 41,730,610 40,911,326 40,608,706 40,646,498 40,698,866
Diluted 45,573,213 43,728,282 43,150,813 42,997,811 42,840,157
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
                 
March 31, December 31,

September 30,

June 30, March 31,
2017     2016    

2016

    2016     2016  
(Dollars in thousands)
Assets:
Cash and due from banks $ 70,908 $ 52,903 $ 67,324 $ 51,277 $ 48,449
Interest-earning deposits in other banks 62,929 30,973 20,010 107,588 77,624
Investment securities:
Available for sale securities, at fair value 1,976,252 1,876,434 1,672,089 1,562,049 1,525,145
Federal Home Loan Bank and other bank stock, at cost   55,652     51,656     43,486     51,557     59,321  
Total investment securities   2,031,904     1,928,090     1,715,575     1,613,606     1,584,466  
Loans held for sale 21,251 20,220 15,748 5,363 900
Loans:
New loans 6,552,214 6,259,406 5,837,759 5,523,071 5,108,538
Acquired loans 366,156 375,488 431,734 474,076 535,129
Allowance for loan losses   (39,431 )   (37,897 )   (35,785 )   (33,706 )   (31,995 )
Loans, net   6,878,939     6,596,997     6,233,708     5,963,441     5,611,672  
Premises and equipment, net 36,278 36,652 38,112 37,939 36,686
Other real estate owned 18,761 19,228 25,654 29,290 43,522
Goodwill and other intangible assets 85,639 85,895 86,151 86,408 86,705
Deferred tax assets, net 56,178 61,391 59,081 66,213 74,420
Bank-owned life insurance 198,089 198,438 172,105 170,817 169,531
Other assets   72,346     59,347     97,684     89,280     102,149  
Total assets $ 9,533,222   $ 9,090,134   $ 8,531,152   $ 8,221,222   $ 7,836,124  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 1,069,745 $ 905,905 $ 830,910 $ 789,019 $ 737,875
Interest-bearing   4,571,833     4,183,972     3,794,215     3,490,188     3,276,896  
Total transaction accounts 5,641,578 5,089,877 4,625,125 4,279,207 4,014,771
Time deposits   2,032,793     2,215,794     2,292,438     2,188,459     1,887,608  
Total deposits 7,674,371 7,305,671 6,917,563 6,467,666 5,902,379
Borrowings 739,519 751,103 568,175 756,759 950,462
Other liabilities   64,085     50,919     79,329     73,625     93,984  
Total liabilities   8,477,975     8,107,693     7,565,067     7,298,050     6,946,825  
Stockholders' Equity:
Class A common stock 45 44 41 40 39
Class B common stock - - 3 3 4
Additional paid-in capital 898,394 875,314 866,673 857,721 853,726
Retained earnings 227,440 188,451 160,555 134,491 110,987
Accumulated other comprehensive income (loss) 6,741 (3,995 ) 16,186 4,816 (8,240 )
Treasury stock, at cost   (77,373 )   (77,373 )   (77,373 )   (73,899 )   (67,217 )
Total stockholders' equity   1,055,247     982,441     966,085     923,172     889,299  
Total liabilities and stockholders' equity $ 9,533,222   $ 9,090,134   $ 8,531,152   $ 8,221,222   $ 7,836,124  
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
  Three Months Ended
March 31,     December 31,     September 30,     June 30,     March 31,
2017   2016   2016   2016   2016
Performance Ratios:
Interest rate spread 3.03% 3.22% 3.26% 3.33% 3.49%
Net interest margin 3.24% 3.41% 3.44% 3.51% 3.65%
Return on average assets 1.72% 1.26% 1.25% 1.19% 1.19%
Return on average equity 15.58% 11.36% 10.96% 10.41% 10.28%
Efficiency ratio (company level) 43.72% 42.27% 43.46% 46.04% 47.11%
Average interest-earning assets to average interest bearing liabilities 121.19% 120.75% 120.89% 119.60% 118.42%
Loans receivable to deposits 90.15% 90.82% 90.63% 92.73% 95.62%
Yield on interest-earning assets 3.90% 4.06% 4.09% 4.12% 4.24%
Cost of interest-bearing liabilities 0.87% 0.84% 0.83% 0.79% 0.75%
Asset and Credit Quality Ratios - Total loans:
Nonperforming loans to loans receivable 0.24% 0.39% 0.27% 0.30% 0.33%
Nonperforming assets to total assets 0.37% 0.50% 0.50% 0.57% 0.79%
ALL to nonperforming assets 111.81% 84.08% 83.92% 71.59% 51.51%
ALL to total gross loans 0.57% 0.57% 0.57% 0.56% 0.57%
Asset and Credit Quality Ratios - New Loans:
Nonperforming new loans to new loans receivable 0.02% 0.04% 0.01% 0.01% 0.02%
New loan ALL to total gross new loans 0.54% 0.54% 0.52% 0.52% 0.52%
Asset and Credit Quality Ratios - Acquired Loans:
Nonperforming acquired loans to acquired loans receivable 4.15% 6.18% 3.76% 3.69% 3.32%
Acquired loan ALL to total gross acquired loans 1.11% 1.16% 1.22% 1.10% 1.06%
Capital Ratios (Company):
Average equity to average total assets 11.0% 11.1% 11.4% 11.5% 11.6%
Tangible average equity to tangible average assets 10.2% 10.2% 10.5% 10.5% 10.6%
Tangible common equity ratio (1) 10.3% 10.0% 10.4% 10.3% 10.4%
Tier 1 leverage ratio 10.5% 10.3% 10.3% 9.8% 9.6%
Tier 1 risk-based capital ratio 12.2% 11.9% 11.8% 11.3% 11.1%
Total risk-based capital ratio 12.8% 12.5% 12.0% 11.3% 11.1%
Capital Ratios (Bank):
Average equity to average total assets 10.0% 10.2% 10.6% 10.5% 10.6%
Tangible common equity ratio 9.1% 9.0% 9.5% 9.4% 9.4%
Tier 1 leverage ratio 9.3% 9.3% 9.6% 9.6% 9.5%
Tier 1 risk-based capital ratio 10.9% 10.9% 11.1% 11.1% 11.1%
Total risk-based capital ratio 11.5% 11.4% 11.5% 11.2% 11.1%
 
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
         
As of
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
(Dollars in thousands)
New Loans:
Commercial real estate $ 1,703,790 $ 1,438,427 $ 1,272,150 $ 1,209,762 $ 1,067,594
Owner-occupied commercial real estate 790,062 769,814 596,131 571,558 558,659
1-4 single family residential 2,084,966 2,012,856 1,982,340 1,923,092 1,833,190
Construction, land and development 627,894 651,253 639,626 582,615 543,540
Home equity loans and lines of credit 50,815 49,819 47,508 43,730 34,973
Total real estate loans $ 5,257,527 $ 4,922,169 $ 4,537,755 $ 4,330,757 $ 4,037,956
Commercial and industrial 1,290,456 1,332,869 1,295,324 1,187,788 1,064,873
Consumer 4,231 4,368 4,680 4,526 5,709
Total new loans $ 6,552,214 $ 6,259,406 $ 5,837,759 $ 5,523,071 $ 5,108,538
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 129,317 $ 130,628 $ 160,219 $ 182,828 $ 212,041
1-4 single family residential 30,115 31,476 34,329 35,400 40,061
Construction, land and development 15,912 17,657 25,156 25,296 27,973
Total real estate loans $ 175,344 $ 179,761 $ 219,704 $ 243,524 $ 280,075
Commercial and industrial 14,234 15,147 21,985 28,984 33,413
Consumer 1,554 1,681 2,074 2,216 2,287
Total Acquired ASC 310-30 Loans $ 191,132 $ 196,589 $ 243,763 $ 274,724 $ 315,775
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 38,352 $ 38,786 $ 39,769 $ 44,680 $ 55,731
Owner-occupied commercial real estate 18,465 18,477 20,042 19,256 20,814
1-4 single family residential 64,669 66,854 71,302 74,568 80,199
Construction, land and development 5,890 6,338 6,338 6,338 6,338
Home equity loans and lines of credit 41,835 42,295 43,096 46,269 47,362
Total real estate loans $ 169,211 $ 172,750 $ 180,547 $ 191,111 $ 210,444
Commercial and industrial 5,487 5,815 7,001 7,801 8,478
Consumer 326 334 423 440 432
Total Acquired Non-ASC 310-30 Loans 175,024 178,899 187,971 199,352 219,354
Total loans $ 6,918,370 $ 6,634,894 $ 6,269,493 $ 5,997,147 $ 5,643,667
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
       
As of
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 1,069,745 $ 905,905 $ 830,910 $ 789,019 $ 737,875
Interest-bearing demand deposits 1,057,539 1,004,452 905,687 725,896 647,824
Interest-bearing NOW accounts 422,329 398,823 420,207 425,464 441,476
Savings and money market accounts 3,091,965 2,780,697 2,468,321 2,338,828 2,187,596
Time deposits   2,032,793   2,215,794   2,292,438   2,188,459   1,887,608
Total deposits $ 7,674,371 $ 7,305,671 $ 6,917,563 $ 6,467,666 $ 5,902,379
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
                     
Three Months Ended Three Months Ended
March 31,   December 31,
2017 2016
Average Interest/ Annualized Average Interest/ Annualized
Balance (1)   Expense (2)  

Yield/Rate (3)

  Balance (1)   Expense (2)  

Yield/Rate (3)

(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 33,990 $ 72 0.86 % $ 63,533 $ 90 0.56 %
New loans 6,342,488 58,691 3.70 % 5,982,383 54,025 3.53 %
Acquired loans (4)(5) 368,305 7,898 8.58 % 409,681 14,558 14.21 %
Investment securities   1,986,083   18,561 3.74 %   1,815,854   16,907 3.64 %
Total interest-earning assets   8,730,866   85,222 3.90 %   8,271,451   85,580 4.06 %
Non-earning assets:
Noninterest-earning assets   465,617   493,487
Total assets $ 9,196,483 $ 8,764,938
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,013,185 $ 1,712 0.69 % $ 999,239 $ 1,531 0.61 %
Interest-bearing NOW accounts 404,483 473 0.47 % 385,979 347 0.36 %
Savings and money market accounts 2,791,959 5,116 0.74 % 2,662,325 4,424 0.66 %
Time deposits (6) 2,150,522 6,217 1.17 % 2,253,993 6,658 1.17 %
FHLB advances and other borrowings (6)   843,929   2,034 0.96 %   548,290   1,554 1.11 %
Total interest-bearing liabilities $ 7,204,078 $ 15,552 0.87 % $ 6,849,826 $ 14,514 0.84 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 945,494 $ 880,828
Other liabilities 32,072 59,740
Stockholders' equity   1,014,839   974,544
Total liabilities and stockholders' equity $ 9,196,483   $ 8,764,938  
Net interest income $ 69,670   $ 71,066  
Net interest spread 3.03 % 3.22 %
Net interest margin 3.24 % 3.41 %
 
(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.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
                     
Three Months Ended March 31,
2017 2016
Average Interest/ Annualized Average Interest/ Annualized
Balance (1)   Expense (2)  

Yield/Rate (3)

  Balance (1)   Expense (2)  

Yield/Rate (3)

(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 33,990 $ 72 0.86 % $ 86,711 $ 66 0.31 %
New loans 6,342,488 58,691 3.70 % 4,856,809 42,712 3.48 %
Acquired loans (4)(5) 368,305 7,898 8.58 % 556,923 18,576 13.34 %
Investment securities   1,986,083   18,561 3.74 %   1,576,617   14,374 3.61 %
Total interest-earning assets   8,730,866   85,222 3.90 %   7,077,060   75,728 4.24 %
Non-earning assets:
Noninterest-earning assets   465,617   477,018
Total assets $ 9,196,483 $ 7,554,078
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,013,185 $ 1,712 0.69 % $ 635,500 $ 784 0.49 %
Interest-bearing NOW accounts 404,483 473 0.47 % 391,158 372 0.38 %
Savings and money market accounts 2,791,959 5,116 0.74 % 2,041,197 2,843 0.56 %
Time deposits (6) 2,150,522 6,217 1.17 % 1,901,109 5,294 1.12 %
FHLB advances and other borrowings (6)   843,929   2,034 0.96 %   1,007,239   1,993 0.78 %
Total interest-bearing liabilities $ 7,204,078 $ 15,552 0.87 % $ 5,976,203 $ 11,286 0.75 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 945,494 $ 646,442
Other liabilities 32,072 55,374
Stockholders' equity   1,014,839   876,059
Total liabilities and stockholders' equity $ 9,196,483   $ 7,554,078  
Net interest income $ 69,670   $ 64,442  
Net interest spread 3.03 % 3.49 %
Net interest margin 3.24 % 3.65 %
 
(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.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
                 
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2017   2016   2016   2016   2016
(Dollars in thousands)
 
Net Income $ 38,989 $ 27,896 $ 26,064 $ 23,504 $ 22,452
 
Pre-tax Adjustments:
Noninterest income:
Less: Gain (loss) on investment securities 777 800 749 324 (54 )
Noninterest expense:
Salaries and employee benefits 56 132 72 1,018 240
Occupancy and equipment - 43 - - 103
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 12 66 7 - 7
Taxes:
Tax Effect of adjustments (1)   (9,147 )   (160 )   (10 )   17     (146 )
Core Net Income $ 29,133   $ 27,177   $ 25,384   $ 24,215   $ 22,710  
 
Average assets $ 9,196,483 $ 8,764,938 $ 8,247,690 $ 7,899,230 $ 7,554,078
ROA (2) 1.72 % 1.26 % 1.25 % 1.19 % 1.19 %
Core ROA (3) 1.28 % 1.23 % 1.22 % 1.23 % 1.21 %
 
(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items. Core tax rate of 36.1% in 2016 and 30-32% in 2017.
(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
March 31, December 31, September 30, June 30, March 31,
2017     2016   2016   2016   2016
(Dollars in thousands)
 
Reported: Net interest income $ 69,670 $ 71,066 $ 67,278 $ 64,930 $ 64,442
FTE adjustment   1,288     1,132     989     865     975  
Core net interest income $ 70,958   $ 72,198   $ 68,267   $ 65,795   $ 65,417  
 
Reported: Noninterest income $ 9,987 $ 7,919 $ 8,142 $ 8,222 $ 5,434
FTE adjustment 904 852 824 822 822
Less: Gain (loss) on investment securities   777     800     749     324     (54 )
Core noninterest income $ 10,114   $ 7,971   $ 8,217   $ 8,720   $ 6,310  
Reported: Noninterest expense $ 35,084 $ 33,646 $ 33,036 $ 33,975 $ 33,300
Less:
Salaries and employee benefits 56 132 72 1,018 240
Occupancy and equipment - 43 - - 103
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses   12     66     7     -     7  
Core noninterest expense $ 35,016   $ 33,405   $ 32,957   $ 32,957   $ 32,950  
Efficiency ratio (1) 43.72 % 42.27 % 43.46 % 46.04 % 47.11 %
Core efficiency ratio (2) 42.88 % 41.35 % 42.75 % 43.83 % 45.41 %
 
(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)
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures - Tangible Book Value Per Share
(Unaudited)
         
March 31, December 31, September 30, June 30, March 31,
2017   2016   2016   2016   2016  
(Dollars in thousands, except share and per share data)
 
Total assets $ 9,533,222 $ 9,090,134 $ 8,531,152 $ 8,221,222 $ 7,836,124
Less:
Goodwill and other intangible assets   85,639     85,895     86,151     86,408     86,705  
Tangible assets $ 9,447,583   $ 9,004,239   $ 8,445,001   $ 8,134,814   $ 7,749,419  
Total stockholders' equity $ 1,055,247 $ 982,441 $ 966,085 $ 923,172 $ 889,299
Less:
Goodwill and other intangible assets   85,639     85,895     86,151     86,408     86,705  
Tangible stockholders' equity $ 969,608   $ 896,546   $ 879,934   $ 836,764   $ 802,594  
Shares outstanding 42,432,062 41,157,571 40,912,571 40,537,913 40,595,787
Tangible book value per share $ 22.85 $ 21.78 $ 21.51 $ 20.64 $ 19.77
Average assets $ 9,196,483 $ 8,764,938 $ 8,247,690 $ 7,899,230 $ 7,554,078
Average equity 1,014,839 974,544 943,168 905,728 876,059
Average goodwill and other intangible assets 85,766 86,029 86,276 86,564 86,917
Tangible average equity to tangible average assets 10.2 % 10.2 % 10.5 % 10.5 % 10.6 %
Tangible common equity ratio 10.3 % 10.0 % 10.4 % 10.3 % 10.4 %

Contacts

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

Release Summary

FCB Financial Holdings, Inc. Surpasses $9.5 Billion in Assets and Reports Record First Quarter 2017 Financial Results

Contacts

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