FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported fourth quarter 2016 net income of $27.9 million, or $0.64 per share on a fully diluted basis, and record core net income of $27.2 million, or $0.62 per share on a fully diluted basis. Core net income rose 21% year-over-year and core net income per diluted share rose 20%. This resulted in a ROA of 126 basis points and a core ROA of 123 basis points.

  • Total net revenue of $79.0 million
  • Core EPS of $0.62 per share on a fully diluted basis
  • New loan portfolio grew sequentially at an annualized rate of 29%;
  • Record New loan fundings of $549.0 million during the quarter;
  • Total deposits grew sequentially at an annualized rate of 22%;
  • Total deposits grew by $388.1 million during the quarter,
  • Demand deposits grew by $173.8 million, or 40% annualized, during the quarter;
  • Core efficiency ratio of 41.3%;
  • Core ROA of 123 basis points; and
  • Tangible book value per share was $21.78;

The Company views certain non-recurring items, including but not limited to merger related and restructuring charges, gain/(loss) on investment securities and their corresponding tax effect, as core adjustments to net income. Core adjustments for the fourth quarter of 2016 include $132 thousand of severance expense, $43 thousand of cease use expense, $66 thousand of other operating expense and $800 thousand gain on sale of investment securities.

The reconciliation of non-GAAP measures (including core net income, core efficiency ratio, core ROA, tangible book value and tangible book value per share), which the Company believes facilitate the assessment of its banking operations and peer comparability, are included in tabular form at the end of this release.

Kent Ellert, Chief Executive Officer and President of FCB Financial Holdings, Inc., commented, “This was, yet again, a record quarter for FCB and a great way to punctuate our second full year as a public company. The fourth quarter of 2016 marks 16 consecutive quarters, or four straight years, of improving core operating results. We are pleased by our results this quarter highlighted by our organic growth, as record new loan fundings of $549 million and core deposit growth of $465 million continue our momentum into the New Year.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $365.4 million to $6.6 billion at December 31, 2016, an increase of 6% from $6.3 billion as of September 30, 2016 and 28% from $5.2 billion as of December 31, 2015.

The Bank’s new loan portfolio totaled $6.3 billion as of December 31, 2016, an increase of 7% from $5.8 billion as of September 30, 2016 and 36% from $4.6 billion as of December 31, 2015. Loan growth during the quarter was a result of $549.0 million of organic new loan fundings, consisting of $244.5 million of commercial and industrial, $166.7 million of commercial real estate and $137.8 million of residential and consumer. There were no residential mortgage purchases during the fourth quarter of 2016. As of December 31, 2016 new loans made up 94% of the total loan portfolio as compared to 93% and 89% as of September 30, 2016 and December 31, 2015, respectively.

The Bank’s acquired loan portfolio totaled $375.5 million as of December 31, 2016, a decrease of 13% from $431.7 million as of September 30, 2016 and a decrease of 36% from $582.4 million as of December 31, 2015. The decrease in the current quarter was driven by the resolution of $22.9 million of loans as well as scheduled loan amortization. As of December 31, 2016, acquired loans made up 6% of our total loan portfolio as compared to 7% and 11% as of September 30, 2016 and December 31, 2015, respectively.

Asset Quality

The provision for loan losses of $2.2 million recorded for the fourth quarter of 2016 includes a $3.0 million provision for new loans and net recoupment of valuation allowance of $0.8 million for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $33.5 million, or 0.54% of the $6.3 billion in new loans outstanding. The nonperforming new loan ratio as of December 31, 2016 was 0.04%.

Deposits and Borrowings

Deposits totaled $7.3 billion as of December 31, 2016, an increase of 6% from $6.9 billion as of September 30, 2016 and an increase of 35% from $5.4 billion as of December 31, 2015. During the fourth quarter of 2016, demand deposits increased by $173.8 million, or 10%, from September 30, 2016 and increased by $664.9 million, or 53%, from December 31, 2015. Demand deposits represent 26% of total deposits as of December 31, 2016 as compared to 25% and 23% as of September 30, 2016 and December 31, 2015, respectively. The cost of deposits was 72 basis points for the quarter, representing a basis point increase from the third quarter of 2016 and a 12 basis point increase from the fourth quarter of 2015.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2016 was 3.41%, a decrease of 3 basis points from the third quarter of 2016 and a decrease of 28 basis points from the fourth quarter of 2015. The decrease from the third quarter of 2016 was due primarily to the continued attrition of the acquired loan portfolio.

Net interest income totaled $71.1 million in the fourth quarter of 2016, an increase of 6% from $67.3 million in the third quarter of 2016 and an increase of 15% from $62.0 million in the fourth quarter of 2015. Interest income totaled $85.6 million for the fourth quarter of 2016, an increase of 6% from $80.8 million in the third quarter of 2016 and an increase of 20% from $71.2 million in the fourth quarter of 2015. Interest income from new loans increased by $4.2 million, or 8%, from the third quarter of 2016 due to continued growth in the new loan portfolio. Interest income on acquired loans decreased by $1.4 million, or 9%, from the third quarter as balance runoff offset better than expected cash flow performance. Interest expense was $14.5 million for the fourth quarter of 2016, an increase of 7% from $13.5 million in the third quarter of 2016 and an increase of 58% from $9.2 million in the fourth quarter of 2015. The increase from the third quarter of 2016 was a result of a 7%, or $433.0 million, increase of average interest-bearing liabilities.

Noninterest Income and Noninterest Expense

Noninterest income totaled $7.9 million for the fourth quarter of 2016 as compared to $8.1 million for the third quarter of 2016 and $7.5 million for the fourth quarter of 2015. The primary components of noninterest income for the quarter were loan and other fees, bank-owned life insurance income and income from the resolution of acquired assets of $2.5 million, $1.3 million and $1.1 million, respectively. The Company continues to realize resolution of acquired asset income and gain on sales of other real estate owned stemming from its acquired asset portfolio. As a result of the early termination of the FDIC loss share agreements, the Company recognized all recoveries and gain on sales related to what were previously “covered assets” in its consolidated statement of income as these amounts are no longer shared with the FDIC.

Noninterest expense totaled $33.6 million for the fourth quarter of 2016, an increase of 2% from $33.0 million in the third quarter of 2016 and an increase of 1% from $33.2 million in the fourth quarter of 2015. For the quarter, the Company recorded non-core expenses of $241 thousand consisting of $132 thousand of severance expense, $43 thousand of cease use expense and $66 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 10.0%, 10.3% and 12.5% for the fourth quarter of 2016 respectively, compared to 10.4%, 10.3% and 12.0% for the third quarter of 2016, respectively. Stockholders’ equity totaled $982.4 million as of December 31, 2016, an increase of 1.7% from $966.1 million as of September 30, 2016 due to net income of $27.9 million that was partially offset by a decrease in accumulated other comprehensive income of $20.2 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $21.78 as of December 31, 2016.

Conference Call

The Company will host a conference call today, Wednesday, January 25, 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 February 25, 2017, by dialing (877) 344-7529 and entering pass code 10098372.

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 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
December 31,

2016

   September 30,

2016

   June 30,

2016

   March 31,

2016

   December 31,

2015

(Dollars in thousands, except share and per share data)
       
Interest income:
Interest and fees on loans $ 68,583 $ 65,748 $ 62,642 $ 61,288 $ 56,945
Interest and dividends on investment securities 16,907 14,955 14,470 14,374 14,147
Other interest income   90   97   96   66     65  
Total interest income   85,580   80,800   77,208   75,728     71,157  
Interest expense:
Interest on deposits 12,960 11,736 10,340 9,293 7,719
Interest on borrowings   1,554   1,786   1,938   1,993     1,469  
Total interest expense   14,514   13,522   12,278   11,286     9,188  
Net interest income 71,066 67,278 64,930 64,442 61,969
Provision for loan losses   2,249   1,990   1,976   1,440     2,329  
Net interest income after provision for loan losses   68,817   65,288   62,954   63,002     59,640  
Noninterest income:
Service charges and fees 935 884 842 806 826
Loan and other fees 2,488 2,145 2,248 2,014 2,425
Bank-owned life insurance income 1,333 1,288 1,286 1,285 1,315
Income from resolution of acquired assets 1,135 1,052 478 680 1,110
Gain (loss) on sales of other real estate owned 209 925 2,102 (110 ) 709
Gain (loss) on investment securities 800 749 324 (54 ) (28 )
Other noninterest income   1,019   1,099   942   813     1,186  
Total noninterest income   7,919   8,142   8,222   5,434     7,543  
Noninterest expense:
Salaries and employee benefits 19,261 18,711 19,614 18,645 17,750
Occupancy and equipment expenses 3,505 3,480 3,034 3,572 3,946
Loan and other real estate related expenses 1,467 1,834 2,235 1,820 2,300
Professional services 1,585 1,180 1,105 1,337 1,651
Data processing and network 2,920 2,882 2,796 2,863 2,719
Regulatory assessments and insurance 2,055 1,860 1,840 2,117 2,066
Amortization of intangibles 256 257 297 379 400
Other operating expenses   2,597   2,832   3,054   2,567     2,369  
Total noninterest expense   33,646   33,036   33,975   33,300     33,201  
Income before income tax expense 43,090 40,394 37,201 35,136 33,982
Income tax expense   15,194   14,330   13,697   12,684     4,233  
Net income $ 27,896 $ 26,064 $ 23,504 $ 22,452   $ 29,749  
 
Earnings per share:
Basic $ 0.68 $ 0.64 $ 0.58 $ 0.55 $ 0.73
Diluted $ 0.64 $ 0.60 $ 0.55 $ 0.52 $ 0.68
 
Weighted average shares outstanding:
Basic 40,911,326 40,608,706 40,646,498 40,698,866 40,976,006
Diluted 43,728,282 43,150,813 42,997,811 42,840,157 43,643,408
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
 
    December 31,

2016

   September 30,

2016

   June 30,

2016

   March 31,

2016

   December 31,

2015

(Dollars in thousands)
Assets:        
Cash and due from banks $ 52,903 $ 67,324 $ 51,277 $ 48,449 $ 44,696
Interest-earning deposits in other banks 30,973 20,010 107,588 77,624 57,764
Investment securities:
Available for sale securities, at fair value 1,876,434 1,672,089 1,562,049 1,525,145 1,524,622
Federal Home Loan Bank and other bank stock, at cost 51,656 43,486 51,557 59,321 59,477
Total investment securities 1,928,090 1,715,575 1,613,606 1,584,466 1,584,099
Loans held for sale 20,220 15,748 5,363 900 2,514
Loans:
New loans 6,259,406 5,837,759 5,523,071 5,108,538 4,610,763
Acquired loans 375,488 431,734 474,076 535,129 582,424
Allowance for loan losses (37,897) (35,785) (33,706) (31,995) (29,126)
Loans, net 6,596,997 6,233,708 5,963,441 5,611,672 5,164,061
Premises and equipment, net 36,652 38,112 37,939 36,686 36,954
Other real estate owned 19,228 25,654 29,290 43,522 39,340
Goodwill and other intangible assets 85,895 86,151 86,408 86,705 87,084
Deferred tax assets, net 61,391 59,081 66,213 74,420 75,176
Bank-owned life insurance 198,438 172,105 170,817 169,531 168,246
Other assets 59,347 97,684 89,280 102,149 71,552
Total assets $ 9,090,134 $ 8,531,152 $ 8,221,222 $ 7,836,124 $ 7,331,486
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 905,905 $ 830,910 $ 789,019 $ 737,875 $ 637,047
Interest-bearing 4,183,972 3,794,215 3,490,188 3,276,896 2,935,418
Total transaction accounts 5,089,877 4,625,125 4,279,207 4,014,771 3,572,465
Time deposits 2,215,794 2,292,438 2,188,459 1,887,608 1,858,173
Total deposits 7,305,671 6,917,563 6,467,666 5,902,379 5,430,638
Borrowings 751,103 568,175 756,759 950,462 983,183
Other liabilities 50,919 79,329 73,625 93,984 41,556
Total liabilities 8,107,693 7,565,067 7,298,050 6,946,825 6,455,377
Stockholders' Equity:
Class A common stock 44 41 40 39 39
Class B common stock - 3 3 4 4
Additional paid-in capital 875,314 866,673 857,721 853,726 850,609
Retained earnings 188,451 160,555 134,491 110,987 88,535
Accumulated other comprehensive income (loss) (3,995) 16,186 4,816 (8,240) (9,443)
Treasury stock, at cost (77,373) (77,373) (73,899) (67,217) (53,635)
Total stockholders' equity 982,441 966,085 923,172 889,299 876,109
Total liabilities and stockholders' equity $ 9,090,134 $ 8,531,152 $ 8,221,222 $ 7,836,124 $ 7,331,486
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
  Three Months Ended
December 31,

2016

       September 30,

2016

       June 30,

2016

       March 31,

2016

       December 31,

2015

Performance Ratios  
Interest rate spread 3.22% 3.26% 3.33% 3.49% 3.56%
Net interest margin 3.41% 3.44% 3.51% 3.65% 3.69%
Return on average assets 1.26% 1.25% 1.19% 1.19% 1.66%
Return on average equity 11.36% 10.96% 10.41% 10.28% 13.65%
Efficiency ratio (company level) 42.27% 43.46% 46.04% 47.11% 47.19%
Average interest-earning assets to average interest bearing liabilities 120.75% 120.89% 119.60% 118.42% 119.25%
Loans receivable to deposits 90.82% 90.63% 92.73% 95.62% 95.63%
Yield on interest-earning assets 4.06% 4.09% 4.12% 4.24% 4.21%
Cost of interest-bearing liabilities 0.84% 0.83% 0.79% 0.75% 0.65%
Asset and Credit Quality Ratios - Total loans
Nonperforming loans to loans receivable 0.39% 0.27% 0.30% 0.33% 0.35%
Nonperforming assets to total assets 0.50% 0.50% 0.57% 0.79% 0.79%
ALL to nonperforming assets 84.08% 83.92% 71.59% 51.51% 50.47%
ALL to total gross loans 0.57% 0.57% 0.56% 0.57% 0.56%
Asset and Credit Quality Ratios - New Loans
Nonperforming new loans to new loans receivable 0.04% 0.01% 0.01% 0.02% 0.03%
New loan ALL to total gross new loans 0.54% 0.52% 0.52% 0.52% 0.52%
Asset and Credit Quality Ratios - Acquired Loans
Nonperforming acquired loans to acquired loans receivable 6.18% 3.76% 3.69% 3.32% 2.90%
Acquired loan ALL to total gross acquired loans 1.16% 1.22% 1.10% 1.06% 0.92%
Capital Ratios (Company)
Average equity to average total assets 11.1% 11.4% 11.5% 11.6% 12.1%
Tangible average equity to tangible average assets 10.2% 10.5% 10.5% 10.6% 11.0%
Tangible common equity ratio (1) 10.0% 10.4% 10.3% 10.4% 10.9%
Tier 1 leverage ratio 10.3% 10.3% 9.8% 9.6% 10.3%
Tier 1 risk-based capital ratio 11.9% 11.8% 11.3% 11.1% 12.1%
Total risk-based capital ratio 12.5% 12.0% 11.3% 11.1% 12.1%
Capital Ratios (Bank)
Average equity to average total assets 10.2% 10.6% 10.5% 10.6% 11.0%
Tangible common equity ratio 9.0% 9.5% 9.4% 9.4% 9.7%
Tier 1 leverage ratio 9.3% 9.6% 9.6% 9.5% 9.9%
Tier 1 risk-based capital ratio 10.9% 11.1% 11.1% 11.1% 11.6%
Total risk-based capital ratio 11.4% 11.5% 11.2% 11.1% 11.6%
 
(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,
2016 2016 2016 2016 2015
(Dollars in thousands)
New Loans:
Commercial real estate $ 1,438,427 $ 1,272,150 $ 1,209,762 $ 1,067,594 $ 998,141
Owner-occupied commercial real estate 769,814 596,131 571,558 558,659 524,728
1-4 single family residential 2,012,856 1,982,340 1,923,092 1,833,190 1,541,255
Construction, land and development 651,253 639,626 582,615 543,540 537,494
Home equity loans and lines of credit 49,819 47,508 43,730 34,973 30,945
Total real estate loans $ 4,922,169 $ 4,537,755 $ 4,330,757 $ 4,037,956 $ 3,632,563
Commercial and industrial 1,332,869 1,295,324 1,187,788 1,064,873 972,803
Consumer 4,368 4,680 4,526 5,709 5,397
Total new loans $ 6,259,406 $ 5,837,759 $ 5,523,071 $ 5,108,538 $ 4,610,763
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 130,628 $ 160,219 $ 182,828 $ 212,041 $ 247,628
1-4 single family residential 31,476 34,329 35,400 40,061 40,922
Construction, land and development 17,657 25,156 25,296 27,973 28,017
Home equity loans and lines of credit - - - - -
Total real estate loans $ 179,761 $ 219,704 $ 243,524 $ 280,075 $ 316,567
Commercial and industrial 15,147 21,985 28,984 33,413 36,783
Consumer 1,681 2,074 2,216 2,287 2,390
Total Acquired ASC 310-30 Loans $ 196,589 $ 243,763 $ 274,724 $ 315,775 $ 355,740
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 38,786 $ 39,769 $ 44,680 $ 55,731 $ 55,985
Owner-occupied commercial real estate 18,477 20,042 19,256 20,814 21,101
1-4 single family residential 66,854 71,302 74,568 80,199 84,111
Construction, land and development 6,338 6,338 6,338 6,338 6,338
Home equity loans and lines of credit 42,295 43,096 46,269 47,362 49,407
Total real estate loans $ 172,750 $ 180,547 $ 191,111 $ 210,444 $ 216,942
Commercial and industrial 5,815 7,001 7,801 8,478 9,312
Consumer 334 423 440 432 430
Total Acquired Non-ASC 310-30 Loans 178,899 187,971 199,352 219,354 226,684
Total loans $ 6,634,894 $ 6,269,493 $ 5,997,147 $ 5,643,667 $ 5,193,187
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
 
    As of
December 31,   September 30,   June 30,   March 31,   December 31,
  2016   2016   2016   2016   2015
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 905,905 $ 830,910 $ 789,019 $ 737,875 $ 637,047
Interest-bearing demand deposits 1,004,452 905,687 725,896 647,824 608,454
Interest-bearing NOW accounts 398,823 420,207 425,464 441,476 347,832
Savings and money market accounts 2,780,697 2,468,321 2,338,828 2,187,596 1,979,132
Time deposits   2,215,794   2,292,438   2,188,459   1,887,608   1,858,173
Total deposits $ 7,305,671 $ 6,917,563 $ 6,467,666 $ 5,902,379 $ 5,430,638
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
 
  Three Months Ended

December 31,

   Three Months Ended

September 30,

2016     2016  
Average

Balance (1)

   Interest/

Expense (2)

   Annualized

Yield/Rate(3)

   Average

Balance (1)

   Interest/

Expense (2)

   Annualized

Yield/Rate(3)

(Dollars in thousands)
Interest-earning assets:        
Interest-earning deposits in other banks $ 63,533 $ 90 0.56 % $ 71,489 $ 97 0.53 %
New loans 5,982,383 54,025 3.53 % 5,595,402 49,831 3.48 %
Acquired loans (4) 409,681 14,558 14.21 % 447,232 15,917 14.24 %
Investment securities   1,815,854   16,907 3.64 %   1,643,102   14,955 3.56 %
Total interest-earning assets   8,271,451   85,580 4.06 %   7,757,225   80,800 4.09 %
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets   493,487   490,465
Total assets $ 8,764,938 $ 8,247,690
Interest-bearing liabilities:
Interest-bearing demand deposits $ 999,239 $ 1,531 0.61 % $ 761,462 $ 1,053 0.55 %
Interest-bearing NOW accounts 385,979 347 0.36 % 421,050 386 0.36 %
Savings and money market accounts 2,662,325 4,424 0.66 % 2,375,041 3,932 0.66 %
Time deposits 2,253,993 6,658 1.17 % 2,167,355 6,365 1.17 %
FHLB advances and other borrowings   548,290   1,554 1.11 %   691,901   1,786 1.01 %
Total interest-bearing liabilities $ 6,849,826 $ 14,514 0.84 % $ 6,416,809 $ 13,522 0.83 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 880,828 $ 810,374
Other liabilities 59,740 77,339
Stockholders' equity   974,544   943,168
Total liabilities and stockholders' equity $ 8,764,938   $ 8,247,690  
Net interest income $ 71,066   $ 67,278  
Net interest spread 3.22 % 3.26 %
Net interest margin 3.41 % 3.44 %
 
(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.
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
           
Three Months Ended December 31,
2016   2015  
Average

Balance (1)

  

Interest/

Expense (2)

   Annualized

Yield/Rate(3)

   Average

Balance (1)

   Interest/

Expense (2)

   Annualized

Yield/Rate(3)

(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 63,533 $ 90 0.56 % $ 142,637 $ 65 0.18 %
New loans 5,982,383 54,025 3.53 % 4,314,707 37,230 3.38 %
Acquired loans (4) 409,681 14,558 14.21 % 622,110 19,715 12.68 %
Investment securities   1,815,854   16,907 3.64 %   1,575,963   14,147 3.51 %
Total interest-earning assets   8,271,451   85,580 4.06 %   6,655,417   71,157 4.21 %
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets   493,487   467,682
Total assets $ 8,764,938 $ 7,123,099
Interest-bearing liabilities:
Interest-bearing demand deposits $ 999,239 $ 1,531 0.61 % $ 567,610 $ 616 0.43 %
Interest-bearing NOW accounts 385,979 347 0.36 % 319,586 284 0.35 %
Savings and money market accounts 2,662,325 4,424 0.66 % 1,906,896 2,369 0.49 %
Time deposits 2,253,993 6,658 1.17 % 1,680,997 4,450 1.05 %
FHLB advances and other borrowings   548,290   1,554 1.11 %   1,105,878   1,469 0.52 %
Total interest-bearing liabilities $ 6,849,826 $ 14,514 0.84 % $ 5,580,967 $ 9,188 0.65 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 880,828 $ 620,508
Other liabilities 59,740 56,970
Stockholders' equity   974,544   864,654
Total liabilities and stockholders' equity $ 8,764,938   $ 7,123,099  
Net interest income $ 71,066   $ 61,969  
Net interest spread 3.22 % 3.56 %
Net interest margin 3.41 % 3.69 %
 
(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.
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Average Balances and Yields
(Unaudited)
 
  Years Ended December 31,
2016     2015  
Average

Balance (1)

   Interest/

Expense (2)

   Annualized

Yield/Rate

   Average

Balance (1)

   Interest/

Expense (2)

   Annualized

Yield/Rate

(Dollars in thousands)
Interest-earning assets:        
Interest-earning deposits in other banks $ 78,496 $ 349 0.44 % $ 94,162 $ 176 0.19 %
New loans 5,421,058 192,642 3.50 % 3,734,285 126,895 3.35 %
Acquired loans (3) 480,129 65,619 13.67 % 708,203 69,228 9.78 %
Investment securities   1,657,610   60,706 3.61 %   1,537,840   52,741 3.38 %
Total interest-earning assets   7,637,293   319,316 4.13 %   6,074,490   249,040 4.06 %
Non-earning assets:
FDIC loss share indemnification asset - 10,860
Noninterest-earning assets   482,868   452,288
Total assets $ 8,120,161 $ 6,537,638
Interest-bearing liabilities:
Interest-bearing demand deposits $ 767,788 $ 4,211 0.55 % $ 324,053 $ 1,405 0.43 %
Interest-bearing NOW accounts 412,745 1,538 0.37 % 381,081 1,310 0.34 %
Savings and money market accounts 2,327,175 14,617 0.63 % 1,860,403 9,726 0.52 %
Time deposits 2,075,196 23,963 1.15 % 1,364,064 13,700 1.00 %
FHLB advances and other borrowings   783,241   7,271 0.92 %   1,110,135   5,103 0.45 %
Total interest-bearing liabilities $ 6,366,145 $ 51,600 0.84 % $ 5,039,736 $ 31,244 0.63 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 764,383 $ 586,473
Other liabilities 64,438 51,218
Stockholders' equity   925,195   860,211
Total liabilities and stockholders' equity $ 8,120,161   $ 6,537,638  
Net interest income $ 267,716   $ 217,796  
Net interest spread 3.29 % 3.43 %
Net interest margin 3.51 % 3.59 %
 
(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) Includes loans on non-accrual status.
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
 
  Three Months Ended
December 31,

2016

   September 30,

2016

   June 30,

2016

   March 31,

2016

   December 31,

2015

(Dollars in thousands)
       
Net Income (loss) $ 27,896 $ 26,064 $ 23,504 $ 22,452 $ 29,749
 
Pre-tax Adjustments
Noninterest income
Less: Gain (loss) on investment securities 800 749 324 (54 ) (28 )
Noninterest expense
Salaries and employee benefits 132 72 1,018 240 48
Occupancy and equipment 43 - - 103 512
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 66 7 - 7 88
Taxes
Tax Effect of adjustments (1)   (160 )   (10 )   17     (146 )   (7,897 )
Core Net Income $ 27,177   $ 25,384   $ 24,215   $ 22,710   $ 22,528  
 
Average assets $ 8,764,938 $ 8,247,690 $ 7,899,230 $ 7,554,078 $ 7,123,099
ROA (2) 1.26 % 1.25 % 1.19 % 1.19 % 1.66 %
Core ROA (3) 1.23 % 1.22 % 1.23 % 1.21 % 1.25 %
 

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items including $9.1 million release of deferred tax asset valuation reserve in Q4 2015. Core tax rate of 35% in 2015 and 36.1% in 2016.

(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,

2016

   September 30,

2016

   June 30,

2016

   March 31,

2016

   December 31,

2015

(Dollars in thousands)
       
Reported: Net interest income $ 71,066 $ 67,278 $ 64,930 $ 64,442 $ 61,969
FTE adjustment   1,132     989     865     975     1,044  
Core net interest income $ 72,198   $ 68,267   $ 65,795   $ 65,417   $ 63,013  
 
Reported: Noninterest income $ 7,919 $ 8,142 $ 8,222 $ 5,434 $ 7,543
FTE adjustment 852 824 822 822 841
Less: Gain (loss) on investment securities   800     749     324     (54 )   (28 )
Core noninterest income (loss) $ 7,971   $ 8,217   $ 8,720   $ 6,310   $ 8,412  
Reported: Noninterest expense $ 33,646 $ 33,036 $ 33,975 $ 33,300 $ 33,201
Less:
Salaries and employee benefits 132 72 1,018 240 48
Occupancy and equipment 43 - - 103 512
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses   66     7     -     7     88  
Core noninterest expense $ 33,405   $ 32,957   $ 32,957   $ 32,950   $ 32,553  
Efficiency ratio (1) 42.27 % 43.46 % 46.04 % 47.11 % 47.19 %
Core efficiency ratio (2) 41.35 % 42.75 % 43.83 % 45.41 % 45.02 %
 
(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)
         
December 31, September 30, June 30, March 31, December 31
  2016     2016     2016     2016     2015  
(Dollars in thousands, except share and per share data)
 
Total assets $ 9,090,134 $ 8,531,152 $ 8,221,222 $ 7,836,124 $ 7,331,486
Less:
Goodwill and other intangible assets   85,895     86,151     86,408     86,705     87,084  
Tangible assets $ 9,004,239   $ 8,445,001   $ 8,134,814   $ 7,749,419   $ 7,244,402  
Total stockholders' equity $ 982,441 $ 966,085 $ 923,172 $ 889,299 $ 876,109
Less:
Goodwill and other intangible assets   85,895     86,151     86,408     86,705     87,084  
Tangible stockholders' equity $ 896,546   $ 879,934   $ 836,764   $ 802,594   $ 789,025  
Shares outstanding 41,157,571 40,912,571 40,537,913 40,595,787 40,860,453
Tangible book value per share $ 21.78 $ 21.51 $ 20.64 $ 19.77 $ 19.31
Average assets $ 8,764,938 $ 8,247,690 $ 7,899,230 $ 7,554,078 $ 7,123,099
Average equity 974,544 943,168 905,728 876,059 864,654
Average goodwill and other intangible assets 86,029 86,276 86,564 86,917 87,291
Tangible average equity to tangible average assets 10.2 % 10.5 % 10.5 % 10.6 % 11.0 %
Tangible common equity ratio 10.0 % 10.4 % 10.3 % 10.4 % 10.9 %