FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported fourth quarter 2014 net income of $13.1 million, or $0.31 per diluted share, and core net income of $12.6 million, or $0.30 per diluted share. Net income rose 121% year-over-year and net income per diluted share rose 93%. Core net income rose 203% year-over-year and core net income per diluted share rose 164%. This resulted in a ROA of 87 basis points and a core ROA of 84 basis points, both of which reflect continued improvements on a sequential and year-over-year basis.

  • Net interest income of $49.8 million, up 50% year-over-year;
  • Total loan portfolio grew sequentially at an annualized rate of 41%;
  • New loan fundings of $477 million during the quarter;
  • Demand deposits grew to 18% of total deposits during the quarter;
  • Core efficiency ratio declined to 57.9%, down from 61.5% in the third quarter of 2014;
  • Core ROA increased to 84 basis points, up from 68 basis points in the third quarter of 2014; and
  • Tangible book value per share increased to $18.43.

Core adjustments for the fourth quarter of 2014 included $2.4 million of gain on investment securities. 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. 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 record fourth quarter operating results providing a strong finish to a successful 2014. 2014 was a year filled with Company milestones, these include: improving and record core net income every quarter, originating $1.3 billion in new loans, progress in transforming our deposit base from 10% to 18% demand deposits, closing and integrating a $1 billion acquisition and successfully completing our IPO. We are excited about the Company’s outlook as we look to continue that momentum into 2015.”

Loan Portfolio and Composition

During the quarter the total loan portfolio, gross of the allowance for loan losses, grew by $369.8 million to $3.9 billion at December 31, 2014, an increase of 10% from $3.6 billion as of September 30, 2014 and 74% from $2.3 billion as of December 31, 2013.

Our new loan portfolio totaled $3.1 billion as of December 31, 2014, an increase of 16% from $2.7 billion as of September 30, 2014 and 75% from $1.8 billion as of December 31, 2013. Our loan growth during the quarter was a result of $477 million of new loan fundings, consisting of $339 million of organic production and $138 million of purchased residential mortgages. As of December 31, 2014 new loans made up 79% of our total loan portfolio as compared to 75% and 78% as of September 30, 2014 and December 31, 2013, respectively.

Our acquired loan portfolio totaled $826.2 million as of December 31, 2014, a decrease of 5% from $873.8 million as of September 30, 2014 and an increase of 69% from $488.1 million as of December 31, 2013. The decrease in the current quarter was driven by resolutions totaling $39.0 million as well as scheduled loan amortization while the increase from December 31, 2013 was primarily due to the acquisition of Great Florida Bank (“GFB”) on January 31, 2014. As of December 31, 2014, acquired loans made up 21% of our total loan portfolio as compared to 25% and 22% as of September 30, 2014 and December 31, 2013, respectively.

Asset Quality

The provision for loan losses of $3.1 million recorded for the fourth quarter of 2014 includes a $1.9 million provision for new loans and a $1.2 million provision for the acquired loan portfolio. There were no new loan portfolio charge-offs in the fourth quarter of 2014. The provision for new loans served to increase the related allowance to $16.0 million, or 0.52% of the $3.1 billion in new loans outstanding. New loan portfolio nonperforming loans were 0.0% of total new loans as of December 31, 2014.

Deposits and Borrowings

Deposits totaled $3.98 billion as of December 31, 2014, in line with deposits of $3.99 billion as of September 30, 2014 and an increase of 42% from $2.79 billion as of December 31, 2013. During the fourth quarter of 2014, noninterest-bearing deposits increased by $67.9 million, or 13%, and overall transaction accounts increased by $155.3 million, or 6%. This increase was offset by a $168.1 million reduction in higher priced time deposits. Transaction accounts represent 73% of total deposits as of December 31, 2014 as compared to 69% and 58% as of September 30, 2014 and December 31, 2013, respectively. The cost of deposits improved to 56 basis points for the quarter, representing a 6 basis point decline from the third quarter of 2014 and a 16 basis point decline from the fourth quarter of 2013. Continued growth in demand deposits drove the improvements sequentially and year-over-year. Contractual cost of deposits, excluding time deposit premium amortization in conjunction with the GFB acquisition, declined to 56 basis points in the fourth quarter of 2014 from 62 basis points and 69 basis points in the third quarter of 2014 and the fourth quarter of 2013, respectively.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2014 was 3.62%, an increase of 13 basis points sequentially and a decline of 14 basis points year-over-year. The increase over the third quarter is due to a 3 basis point increase to yield on earning assets and an 11 basis point reduction in cost of funds.

Net interest income totaled $49.8 million in the fourth quarter of 2014, an increase of 8% from $45.9 million in the third quarter of 2014 and 50% from $33.2 million in the fourth quarter of 2013. Interest income increased to $56.4 million for the fourth quarter of 2014, an increase of 5% from $53.7 million in the third quarter of 2014 and 44% from $39.1 million in the fourth quarter of 2013. Interest income from new loans increased by $2.8 million, or 13%, from the third quarter of 2014 due to continued growth in the new loan portfolio. Additionally, interest income on investment securities totaled $12.5 million in the fourth quarter of 2014, an increase of $0.9 million from the third quarter of 2014, due to a 42 basis point increase in yield partially offset by a reduction in average investments of $138.8 million. Lower yielding investments were sold during the fourth quarter to redeploy the funds in higher yielding new loans. Interest expense decreased to $6.6 million for the fourth quarter of 2014 from $7.8 million for the third quarter of 2014 and increased from $6.0 million for the fourth quarter of 2013. The decrease in interest expense was driven by the lower cost of deposits and borrowings.

Noninterest Income and Noninterest Expense

Noninterest income totaled $5.4 million in the fourth quarter of 2014, an increase of $3.1 million from the third quarter of 2014 and an increase of $1.8 million from the fourth quarter of 2013. The increase from the third quarter of 2014 is primarily driven by an increase in loan and other fee income, income from acquired loans and OREO and insurance settlements. Noninterest income during the fourth quarter of 2014 includes gain on investment securities, loan and other fees and indemnification asset amortization of $2.4 million, $2.3 million and ($7.3) million, respectively.

Noninterest expense totaled $31.5 million for the fourth quarter of 2014, a decrease of $17.5 million from the third quarter of 2014 and an increase of $5.4 million from the fourth quarter of 2013. The decrease from prior quarter was primarily driven by non-core IPO related expenses of $19.3 million in the third quarter of 2014.

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 13.0%, 12.8% and 18.3% for the fourth quarter of 2014 respectively, compared to 12.5%, 13.1% and 17.7% for the third quarter of 2014, respectively. Stockholders’ equity totaled $851.7 million as of December 31, 2014, an increase of 2% from $835.7 million as of September 30, 2014 primarily driven by net income of $13.1 million. Tangible book value per common share is $18.43 as of December 31, 2014.

Conference Call

The Company will host a conference call today, Thursday, January 29, 2015 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 March 1, 2015, by dialing (877) 344-7529 and entering pass code 10059016.

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 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 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 52 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

December 31,
2014

September 30,
2014

June 30,
2014

March 31,
2014

December 31,
2013

(Dollars in thousands, except share and per share data)
 
Interest income:
Interest and fees on loans $ 43,900 $ 42,085 $ 37,833 $ 34,852 $ 30,474
Interest and dividends on investment securities 12,451 11,530 10,566 9,998 8,609
Other interest income   53     37     53     68     49  
Total interest income   56,404     53,652     48,452     44,918     39,132  
Interest expense:
Interest on deposits 5,492 6,124 5,833 5,309 4,695
Interest on borrowings   1,133     1,633     1,466     1,264     1,256  
Total interest expense   6,625     7,757     7,299     6,573     5,951  
Net interest income 49,779 45,895 41,153 38,345 33,181
Provision for loan losses   3,112     2,805     3,236     1,090     1,976  
Net interest income after provision for loan losses   46,667     43,090     37,917     37,255     31,205  
Noninterest income:
Service charges and fees 780 738 707 738 693
Loan and other fees 2,270 1,238 2,569 716 1,560
Bank-owned life insurance income 1,168 1,151 1,038 818 257
FDIC loss share indemnification loss (5,324 ) (5,862 ) (5,247 ) (4,992 ) (5,005 )
Income from resolution of acquired assets 1,061 1,109 1,692 1,037 1,292
Gain (loss) on sales of other real estate owned 200 (128 ) (359 ) 431 194
Gain on investment securities 2,377 2,785 4,448 2,495 3,480
Other noninterest income   2,912     1,319     1,842     1,305     1,124  
Total noninterest income 5,444 2,350 6,690 2,548 3,595
Noninterest expense:
Salaries and employee benefits 14,885 28,525 13,411 16,420 12,932
Occupancy and equipment expenses 3,248 3,606 3,777 3,433 2,448
Loan and other real estate related expenses 4,566 3,203 3,338 3,761 2,849
Professional services 1,242 1,203 1,352 1,832 1,621
Data processing and network 2,639 2,538 2,357 3,210 1,897
Regulatory assessments and insurance 1,679 2,466 1,920 1,774 1,445
Amortization of intangibles 425 426 443 416 367
Other operating expenses   2,779     6,992     4,146     3,620     2,507  
Total noninterest expense   31,463     48,959     30,744     34,466     26,066  
Income before income tax provision expense 20,648 (3,519 ) 13,863 5,337 8,734
Income tax provision expense (benefit)   7,548     (97 )   4,697     1,809     2,809  
Net income (loss) $ 13,100   $ (3,422 ) $ 9,166   $ 3,528   $ 5,925  
 
Earnings (loss) per share:
Basic $ 0.32 $ (0.09 ) $ 0.26 $ 0.10 $ 0.16
Diluted $ 0.31 $ (0.09 ) $ 0.26 $ 0.10 $ 0.16
 
Weighted average shares outstanding:
Basic 41,409,698 38,952,127 35,892,154 35,892,154 36,756,073
Diluted 42,154,781 38,952,127 35,896,207 35,896,445 36,760,364
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
     

December 31,
2014

September 30,
2014

December 31,
2013

(Dollars in thousands)
Assets:
Cash and due from banks $ 25,397 $ 28,288 $ 28,819
Interest-earning deposits in other banks 81,688 112,342 210,398
Investment securities:
Held to maturity securities - - 365
Available for sale securities, at fair value 1,359,098 1,771,321 1,145,771
Federal Home Loan Bank and other bank stock, at cost   66,891     71,217     36,187  
Total investment securities   1,425,989     1,842,538     1,182,323  
Loans held for sale 707 108 -
Loans:
New loans 3,103,417 2,686,043 1,770,711
Acquired loans 826,173 873,761 488,073
Allowance for loan losses   (22,880 )   (20,440 )   (14,733 )
Loans, net 3,906,710 3,539,364 2,244,051
FDIC Loss share indemnification asset 63,168 69,920 87,229
Due from Federal Deposit Insurance Corporation ("FDIC") 1,735 104 3,659
Premises and equipment, net 38,962 39,256 40,992
Other real estate owned 74,527 78,512 34,682
Goodwill and other intangible assets 88,615 89,040 39,369
Deferred tax assets, net 40,148 41,257 5,828
Bank owned life insurance 139,829 138,264 75,257
Other assets   62,860     75,951     20,763  
Total assets $ 5,950,335   $ 6,054,944   $ 3,973,370  
Liabilities and Stockholders' Equity
Deposits:
Transaction accounts:
Noninterest-bearing $ 593,025 $ 525,152 $ 291,658
Interest-bearing   2,308,657     2,221,250     1,336,679  
Total transaction accounts 2,901,682 2,746,402 1,628,337
Time deposits   1,076,853     1,244,958     1,165,196  
Total deposits 3,978,535 3,991,360 2,793,533
Total borrowings 1,067,981 1,164,404 435,866
Other liabilities   52,166     63,453     27,857  
Total liabilities   5,098,682     5,219,217     3,257,256  
Stockholders' Equity:
Class A common stock 36 36 29
Class B common stock 7 7 8
Additional paid-in capital 834,538 833,478 723,631
Retained earnings 35,144 22,044 12,772
Accumulated other comprehensive income (loss) 679 (1,087 ) (1,575 )
Treasury stock, at cost   (18,751 )   (18,751 )   (18,751 )
Total stockholders' equity   851,653     835,727     716,114  
Total liabilities and stockholders' equity $ 5,950,335   $ 6,054,944   $ 3,973,370  
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
 
  Three Months Ended

December 31,
2014

  

September 30,
2014

  

June 30,
2014

  

March 31,
2014

  

December 31,
2013

Performance Ratios
Interest rate spread 3.49 % 3.36 % 3.26 % 3.45 % 3.55 %
Net interest margin 3.62 % 3.49 % 3.39 % 3.62 % 3.76 %
Return on average assets 0.87 % -0.24 % 0.69 % 0.30 % 0.62 %
Return on average equity 6.15 % -1.70 % 5.02 % 1.98 % 3.21 %
Efficiency ratio (company level) 56.97 % 101.48 % 64.26 % 84.28 % 70.88 %
Average interest-earning assets to average interest bearing liabilities 119.64 % 118.11 % 117.15 % 118.86 % 128.09 %
Loans receivable to deposits 98.77 % 89.19 % 82.45 % 78.78 % 80.86 %
Yield on interest-earning assets 4.08 % 4.05 % 3.96 % 4.19 % 4.41 %
Cost of interest-bearing liabilities 0.58 % 0.69 % 0.70 % 0.74 % 0.86 %
Asset and Credit Quality Ratios - Total loans
Nonperforming loans to loans receivable 0.49 % 0.62 % 1.07 % 0.90 % 1.51 %
Nonperforming assets to total assets 1.58 % 1.66 % 2.06 % 2.18 % 1.73 %
Covered loans to total gross loans 6.96 % 8.05 % 10.00 % 11.47 % 15.90 %
ALL to nonperforming assets 24.36 % 20.35 % 15.42 % 13.76 % 21.40 %
ALL to total gross loans 0.58 % 0.57 % 0.55 % 0.53 % 0.65 %
Asset and Credit Quality Ratios - New Loans
Nonperforming new loans to new loans receivable 0.00 % 0.00 % 0.01 % 0.00 % 0.06 %
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 0.52 % 0.53 % 0.54 % 0.49 % 0.47 %
Asset and Credit Quality Ratios - Acquired Loans
Nonperforming acquired loans to acquired loans receivable 2.34 % 2.51 % 3.63 % 2.62 % 6.78 %
Covered acquired loans to total gross acquired loans 33.09 % 32.78 % 34.11 % 33.51 % 73.60 %
Acquired loan ALL to total gross acquired loans 0.83 % 0.72 % 0.57 % 0.60 % 1.32 %
Capital Ratios (Company)
Average equity to average total assets 14.2 % 13.9 % 13.7 % 15.3 % 19.4 %
Tangible average equity to tangible average assets 12.9 % 12.6 % 12.2 % 13.9 % 18.5 %
Tangible common equity ratio (1) 13.0 % 12.5 % 11.7 % 12.5 % 17.2 %
Tier 1 leverage ratio 12.8 % 13.1 % 12.0 % 13.4 % 18.0 %
Tier 1 risk-based capital ratio 17.7 % 17.2 % 16.0 % 17.6 % 24.8 %
Total risk-based capital ratio 18.3 % 17.7 % 16.5 % 18.1 % 25.3 %
Capital Ratios (Bank)
Average equity to average total assets 11.7 % 11.8 % 11.9 % 12.3 % 12.5 %
Tangible common equity ratio 10.4 % 10.1 % 10.4 % 10.5 % 11.5 %
Tier 1 leverage ratio 10.4 % 10.6 % 10.8 % 11.2 % 12.0 %
Tier 1 risk-based capital ratio 14.5 % 14.0 % 14.4 % 14.9 % 16.7 %
Total risk-based capital ratio 15.0 % 14.6 % 14.9 % 15.4 % 17.3 %
 
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible Book Value
 
         
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
 
As of
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
(Dollars in thousands)
New Loans:
Commercial real estate $ 853,074 $ 721,676 $ 662,199 $ 569,094 $ 514,612
Owner-occupied commercial real estate 281,703 261,549 230,546 166,031 154,983
1-4 single family residential 922,657 734,608 523,987 384,076 359,818
Construction, land and development 232,601 160,899 123,169 79,215 75,666
Home equity loans and lines of credit   11,826   12,774   9,631   22,559   19,303
Total real estate loans $ 2,301,861 $ 1,891,756 $ 1,549,786 $ 1,221,282 $ 1,124,498
Commercial and industrial 795,000 791,843 753,984 709,506 645,037
Consumer   6,556   2,444   2,567   1,408   1,176
Total new loans $ 3,103,417 $ 2,686,043 $ 2,306,337 $ 1,932,196 $ 1,770,711
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 336,935 $ 364,753 $ 413,154 $ 426,940 $ 274,147
1-4 single family residential 86,308 90,752 98,802 103,776 56,745
Construction, land and development 66,700 71,053 76,210 82,833 55,936
Home equity loans and lines of credit   -   -   -   -   -
Total real estate loans $ 489,943 $ 526,558 $ 588,166 $ 613,549 $ 386,828
Commercial and industrial 67,498 72,948 81,444 85,360 57,047
Consumer   2,803   2,936   3,345   3,674   3,992
Total Acquired ASC 310-30 Loans $ 560,244 $ 602,442 $ 672,955 $ 702,583 $ 447,867
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 70,146 $ 68,578 $ 76,120 $ 83,026 $ 9,098
Owner-occupied commercial real estate 14,842 16,640 14,294 13,989 3,014
1-4 single family residential 102,279 105,561 111,056 100,450 10,174
Construction, land and development 9,729 9,744 8,077 8,061 -
Home equity loans and lines of credit   54,704   56,170   56,926   65,340   11,998
Total real estate loans $ 251,700 $ 256,693 $ 266,473 $ 270,866 $ 34,284
Commercial and industrial 13,548 13,817 16,766 31,256 5,633
Consumer   681   809   1,121   1,461   289
Total Acquired Non-ASC 310-30 Loans   265,929   271,319   284,360   303,583   40,206
Total loans $ 3,929,590 $ 3,559,804 $ 3,263,652 $ 2,938,362 $ 2,258,784
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
         
As of
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 593,025 $ 525,152 $ 435,055 $ 417,525 $ 291,658
Interest-bearing demand deposits 122,380 - - - -
Interest-bearing NOW accounts 374,399 526,013 120,197 103,063 84,837
Savings and money market accounts 1,811,878 1,695,237 1,970,093 1,694,913 1,251,842
Time deposits   1,076,853   1,244,958   1,432,921   1,514,168   1,165,196
Total deposits $ 3,978,535 $ 3,991,360 $ 3,958,266 $ 3,729,669 $ 2,793,533
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
         
Three Months Ended December 31,   Three Months Ended September 30,
2014 2014

Average
Balance

Interest/
Expense

Annualized
Yield/Rate (1)

Average
Balance

Interest/
Expense

Annualized
Yield/Rate (1)

(Dollars in thousands)
Interest-earning assets:
Cash and cash equivalents $ 103,597 $ 53 0.20 % $ 76,682 $ 37 0.19 %
New loans 2,844,186 24,631 3.39 % 2,440,992 21,866 3.51 %
Acquired loans 847,438 19,269 9.10 % 903,941 20,219 8.95 %
Investment securities and other   1,662,139   12,451 2.93 %   1,800,988   11,530 2.51 %
Total interest-earning assets   5,457,360   56,404 4.08 %   5,222,603   53,652 4.05 %
Non-earning assets:
FDIC loss share indemnification asset 67,521 75,191
Noninterest-earning assets   428,744   440,293
Total assets $ 5,953,625 $ 5,738,087
Interest-bearing liabilities:
Interest-bearing demand deposits $ 103,062 $ 53 0.20 % $ - $ - 0.00 %
Interest-bearing NOW accounts 370,777 323 0.34 % 396,361 347 0.35 %
Savings and money market accounts 1,770,403 2,608 0.58 % 1,721,444 2,790 0.64 %
Time deposits 1,120,326 2,508 0.89 % 1,358,610 2,987 0.87 %
FHLB advances and other borrowings   1,196,942   1,133 0.37 %   945,519   1,633 0.68 %
Total interest-bearing liabilities $ 4,561,510 $ 6,625 0.58 % $ 4,421,934 $ 7,757 0.69 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 499,058 $ 459,189
Other liabilities 48,485 57,797
Stockholders' equity   844,572   799,167
Total liabilities and stockholders' equity $ 5,953,625   $ 5,738,087  
Net interest income $ 49,779   $ 45,895  
Net interest spread 3.49 % 3.36 %
Net interest margin 3.62 % 3.49 %
 
(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 December 31,

2014

2013

Average
Balance

Interest/
Expense

Annualized
Yield/Rate (1)

Average
Balance

Interest/
Expense

Annualized
Yield/Rate (1)

(Dollars in thousands)
Interest-earning assets:
Cash and cash equivalents $ 103,597 $ 53 0.20 % $ 98,046 $ 49 0.20 %
New loans 2,844,186 24,631 3.39 % 1,580,075 14,716 3.64 %
Acquired loans 847,438 19,269 9.10 % 493,271 15,758 12.78 %
Investment securities and other   1,662,139   12,451 2.93 %   1,328,920   8,609 2.53 %
Total interest-earning assets   5,457,360   56,404 4.08 %   3,500,312   39,132 4.41 %
Non-earning assets:
FDIC loss share indemnification asset 67,521 94,504
Noninterest-earning assets   428,744   186,415
Total assets $ 5,953,625 $ 3,781,231
Interest-bearing liabilities:
Interest-bearing demand deposits $ 103,062 $ 53 0.20 % $ - $ - 0.00 %
Interest-bearing NOW accounts 370,777 323 0.34 % 75,155 26 0.14 %
Savings and money market accounts 1,770,403 2,608 0.58 % 1,063,875 1,150 0.43 %
Time deposits 1,120,326 2,508 0.89 % 1,161,145 3,519 1.20 %
FHLB advances and other borrowings   1,196,942   1,133 0.37 %   432,423   1,256 1.14 %
Total interest-bearing liabilities $ 4,561,510 $ 6,625 0.58 % $ 2,732,598 $ 5,951 0.86 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 499,058 $ 277,141
Other liabilities 48,485 38,668
Stockholders' equity   844,572   732,824
Total liabilities and stockholders' equity $ 5,953,625   $ 3,781,231  
Net interest income $ 49,779   $ 33,181  
Net interest spread 3.49 % 3.55 %
Net interest margin 3.62 % 3.76 %
 
(1) Average rates are presented on an annualized basis based on the respective method of interest accrual.
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Average Balances and Yields
(Unaudited)
         
Years Ended December 31,
2014 2013

Average
Balance

Interest/
Expense

Yield/Rate

Average
Balance

Interest/
Expense

Yield/Rate

(Dollars in thousands)
Interest-earning assets:
Cash and cash equivalents $ 100,849 $ 211 0.21 % $ 100,293 $ 224 0.22 %
New loans 2,299,940 81,353 3.49 % 1,134,928 43,668 3.79 %
Acquired loans 888,444 77,317 8.70 % 548,111 64,853 11.83 %
Investment securities and other   1,673,594   44,545 2.63 %   1,443,957   36,518 2.49 %
Total interest-earning assets   4,962,827   203,426 4.06 %   3,227,289   145,263 4.47 %
Non-earning assets:
FDIC loss share indemnification asset 76,851 107,153
Noninterest-earning assets   407,269   167,869
Total assets $ 5,446,947 $ 3,502,311
Interest-bearing liabilities:
Interest-bearing demand deposits $ 25,977 $ 53 0.20 % $ - $ - 0.00 %
Interest-bearing NOW accounts 245,998 749 0.30 % 70,454 76 0.11 %
Savings and money market accounts 1,708,507 9,845 0.58 % 961,986 4,425 0.46 %
Time deposits 1,338,016 12,111 0.91 % 1,121,100 14,036 1.25 %
FHLB advances and other borrowings   871,296   5,496 0.62 %   315,099   4,403 1.38 %
Total interest-bearing liabilities $ 4,189,794 $ 28,254 0.68 % $ 2,468,639 $ 22,940 0.93 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 433,330 $ 260,994
Other liabilities 48,836 40,564
Stockholders' equity   774,987   732,114
Total liabilities and stockholders' equity $ 5,446,947   $ 3,502,311  
Net interest income $ 175,172   $ 122,323  
Net interest spread 3.38 % 3.54 %
Net interest margin 3.53 % 3.79 %
 
       
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
 
Three Months Ended

December 31,
2014

September 30,
2014

June 30,
2014

March 31,
2014

December 31,
2013

(Dollars in thousands)
 
Net Income (loss) $ 13,100 $ (3,422 ) $ 9,166 $ 3,528 $ 5,925
 
Pre-tax Adjustments
Noninterest income
Less: Gain on investment securities 2,377 2,785 4,448 2,495 3,480
Noninterest expense
Salaries and employee benefits 1 15,379 - 2,220 65
Occupancy and equipment - - 225 - -
Loan and other real estate related expenses - - - 135 -
Professional services - - - 379 347
Data processing and network fees - - - 893 125
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses (7 ) 4,895 1,290 1,467 40
Taxes
Tax Effect of adjustments (1)   1,881     (4,254 )   1,144     (1,014 )   1,132  
Core Net Income $ 12,599   $ 9,813   $ 7,377   $ 5,113   $ 4,154  
 
Average assets $ 5,953,625 $ 5,738,087 $ 5,354,260 $ 4,725,119 $ 3,781,231
ROA (2) 0.87 % -0.24 % 0.69 % 0.30 % 0.62 %
Core ROA (3) 0.84 % 0.68 % 0.55 % 0.44 % 0.44 %
 

(1) Tax effected at marginal income tax rate of 39% and except for non tax deductible items. Core tax rate of 32% in 2014.

(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

December 31,
2014

September 30,
2014

June 30,
2014

March 31,
2014

December 31,
2013

(Dollars in thousands)
 
Reported: Net interest income $ 49,779 $ 45,895 $ 41,153 $ 38,345 $ 33,181
FTE adjustment   711     475     487     492     556  
Core net interest income $ 50,490   $ 46,370   $ 41,640   $ 38,837   $ 33,737  
 
Reported: Noninterest income $ 5,444 $ 2,350 $ 6,690 $ 2,548 $ 3,595
FTE adjustment 747 736 664 523 164
Less: Gain on investment securities   2,377     2,785     4,448     2,495     3,480  
Core noninterest income (loss) $ 3,814   $ 301   $ 2,906   $ 576   $ 279  
Reported: Noninterest expense $ 31,463 $ 48,959 $ 30,744 $ 34,466 $ 26,066
Less:
Salaries and employee benefits 1 15,379 - 2,220 65
Occupancy and equipment - - 225 - -
Loan and other real estate related expenses - - - 135 -
Professional services - - - 379 347
Data processing and network fees - - - 893 125
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses   (7 )   4,895     1,290     1,467     40  
Core noninterest expense $ 31,468   $ 28,685   $ 29,229   $ 29,372   $ 25,489  
Efficiency ratio (1) 56.97 % 101.48 % 64.26 % 84.28 % 70.88 %
Core efficiency ratio (2) 57.95 % 61.46 % 65.62 % 74.52 % 74.93 %
 
(1) Efficiency ratio: Noninterest expense / (noninterest income + net interest income)
(2) Core efficiency ratio: Core noninterest expense / (core noninterest income + core net interest income)
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures - Tangible Book Value Per Share
(Unaudited)
         
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
(Dollars in thousands, except share and per share data)
 
Total assets $ 5,950,335 $ 6,054,944 $ 5,641,708 $ 5,167,500 $ 3,973,370
Less:
Goodwill and other intangible assets   88,615     89,040     89,466     90,317     39,369  
Tangible assets $ 5,861,720   $ 5,965,904   $ 5,552,242   $ 5,077,183   $ 3,934,001  
Total stockholders' equity $ 851,653 $ 835,727 $ 739,448 $ 723,869 $ 716,114
Less:
Goodwill and other intangible assets   88,615     89,040     89,466     90,317     39,369  
Tangible stockholders' equity $ 763,038   $ 746,687   $ 649,982   $ 633,552   $ 676,745  
Shares outstanding 41,409,698 41,409,698 35,892,154 35,892,154 35,892,154
Tangible book value per share $ 18.43 $ 18.03 $ 18.11 $ 17.65 $ 18.85
Average assets $ 5,953,625 $ 5,738,087 $ 5,354,260 $ 4,725,119 $ 3,781,231
Average equity 844,572 799,167 732,377 722,221 732,824
Average goodwill and other intangible assets 88,835 89,276 90,431 73,427 39,521
Tangible average equity to tangible average assets 12.9 % 12.6 % 12.2 % 13.9 % 18.5 %
Tangible common equity ratio 13.0 % 12.5 % 11.7 % 12.5 % 17.2 %