Market Overview

FCB Financial Holdings, Inc. Reports Record Second Quarter 2018 Financial Results

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FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company" or "FCB") today
announced a merger with Synovus Financial Corp. ("Synovus"). The details
of the merger are contained within a joint press release issued by the
two companies today. The Company reported second quarter 2018 net income
of $42.7 million, or $0.87 per share on a fully diluted basis, and
adjusted net income of $46.0 million, or $0.94 per share on a fully
diluted basis. Net income rose 22% year-over-year and pre-tax income
increased by 30% to $56.3 million. Adjusted net income rose 41%
year-over-year and adjusted net income per diluted share rose 33%. This
resulted in a ROA of 146 basis points and an adjusted ROA of 157 basis
points.

  • Fully tax equivalent net revenue of $99.7 million;
  • Reported and Adjusted EPS of $0.87 and $0.94 per share, respectively,
    on a fully diluted basis;
  • Net Interest Margin and Adjusted Net Interest Margin expanded by 7 and
    5 basis points during the quarter to 3.25% and 3.19%, respectively;
  • New loan portfolio grew sequentially at an annualized rate of 13% when
    excluding the impact of syndication paydowns;
  • New loan fundings of $483.1 million during the quarter;
  • Demand deposits grew by $174.5 million, or 25% annualized, during the
    quarter;
  • Reported and Adjusted Efficiency ratio of 41.1% and 38.0%,
    respectively;
  • Reported and Adjusted ROA of 146 and 157 basis points, respectively;
    and
  • Tangible book value per share was $25.44.

The Company views certain non-operating items, including, but not
limited to, merger related and restructuring charges, gain/(loss) on
investment securities and their corresponding tax effect, as adjustments
to net income. Non-operating adjustments for the second quarter of 2018
primarily relate to merger related expenses associated with the
acquisition of Floridian Community Holdings, Inc. ("Floridian
Community") that was completed on March 1, 2018. Non-operating
adjustments include $2 million of severance and salary related expense,
$436 thousand occupancy expense primarily related to cease use expense,
and $219 thousand of professional services, data processing and other
operating expense, as well as $116 thousand gain on investment
securities. Additionally, the Company expects its 2018 annual GAAP tax
rate to be between 20-23%.

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

Kent Ellert, Chief Executive Officer and President of FCB Financial
Holdings, Inc., commented, "The FCB team is excited to be joining the
Synovus family and we look forward to being part of one of the most
prominent and successful regional banks in the country. We are
enthusiastic by our similar cultures which are community and customer
centric. We believe this combination affords us an opportunity to
maintain and expand our great client relationships comprising over $11
billion of organic loan production which had led to FCB's 22 consecutive
quarters of record operating results."

Mr. Ellert added, "The second quarter was another strong quarter for
FCB, as we expanded our net interest margin by 5 basis points, fully
integrated our Floridian Community acquisition in less than 3 months and
continued our organic momentum with over $370 million of organic deposit
growth and over $480 million of organic loan fundings. Our organic
growth and customer centric approach continues to differentiate us in
the market as Florida's largest community banking company."

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for
loan losses, grew by $217.2 million to $8.9 billion as of June 30, 2018,
an increase of 2.5% from $8.7 billion as of March 31, 2018, and 23% from
$7.3 billion as of June 30, 2017.

The Bank's new loan portfolio totaled $8.2 billion as of June 30, 2018,
an increase of 3% from $8.0 billion as of March 31, 2018 and 19% from
$6.9 billion as of June 30, 2017. Loan growth during the quarter was a
result of $483.1 million of organic new loan fundings, consisting of
$187.3 million of commercial and industrial, $235.7 million of
commercial real estate and $60.1 million of residential and consumer.
Additionally, during the quarter, the Company decreased its syndicated
loan portfolio by $12 million with the total syndicated portfolio
representing only 3% of total loans. As of June 30, 2018, new loans made
up 92% of the total loan portfolio as compared to 92% and 95% as of
March 31, 2018 and June 30, 2017, respectively.

The Bank's acquired loan portfolio totaled $702.4 million as of June 30,
2018, a decrease of 4% from $728.1 million as of March 31, 2018 and an
increase of 100% from $351.0 million as of June 30, 2017. The increase
as compared to 2017 was primarily driven by the acquisition of Floridian
Community in March 2018. As of June 30, 2018, acquired loans made up 8%
of our total loan portfolio as compared to 8% and 5% as of March 31,
2018 and June 30, 2017, respectively.

Asset Quality

The provision for loan losses of $1.5 million recorded for the second
quarter of 2018 includes a $1.6 million provision for new loans and a
recoupment of valuation allowance of $129 thousand for the acquired loan
portfolio. The provision for new loans served to increase the related
allowance to $47.8 million, or 0.58% of the $8.2 billion in new loans
outstanding. The nonperforming new loan ratio as of June 30, 2018 was
0.06%.

Deposits and Borrowings

Deposits totaled $9.9 billion as of June 30, 2018, an increase of 4%
from $9.5 billion as of March 31, 2018 and an increase of 28% from $7.7
billion as of June 30, 2017. During the second quarter of 2018, demand
deposits increased by $174.5 million, or 6%, from March 31, 2018 and
increased by $775.9 million, or 34%, from June 30, 2017. Demand deposits
represent 31% of total deposits as of June 30, 2018 as compared to 30%
and 29% as of March 31, 2018 and June 30, 2017, respectively. The cost
of deposits was 121 basis points for the quarter, representing a 14
basis point increase from the first quarter of 2018 and a 39 basis point
increase from the second quarter of 2017. The primary driver of the
increase over the periods is attributable to the Federal Reserve rate
hikes in June and December 2017 and March and June 2018.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2018 was 3.25%, an
increase of 7 basis points from the first quarter of 2018 and an
increase of 9 basis points from the second quarter of 2017. The increase
from the first quarter of 2018 was due primarily to the 18 basis point
increase in yield on interest-earning assets partially offset by the 15
basis point increase in cost of interest-bearing liabilities.

Net interest income totaled $90.8 million in the second quarter of 2018,
an increase of 11% from $82.2 million in the first quarter of 2018 and
an increase of 26% from $71.9 million in the second quarter of 2017.
Interest income totaled $122.6 million for the second quarter of 2018,
an increase of 13% from $108.6 million in the first quarter of 2018 and
an increase of 35% from $90.6 million in the second quarter of 2017.
Interest income from new loans increased by $7.3 million, or 9%, from
the first quarter of 2018 due to yield expansion and continued growth in
the new loan portfolio. Interest income on acquired loans increased by
$4.0 million, or 57%, from the first quarter due to the acquisition of
Floridian Community. Interest expense was $31.7 million for the second
quarter of 2018, an increase of 20% from $26.4 million in the first
quarter of 2018 and an increase of 70% from $18.7 million in the second
quarter of 2017. The increase from the first quarter of 2018 was a
result of a 15 basis point increase on cost of interest-bearing
liabilities associated with increased time deposit duration as well as
the impact of the March and June 2018 Federal Reserve rate hikes on
deposit costs.

Noninterest Income and Noninterest Expense

Noninterest income totaled $8.0 million for the second quarter of 2018
as compared to $7.2 million for the first quarter of 2018 and $8.9
million for the second quarter of 2017. The primary components of
noninterest income for the quarter were loan and other fees, bank-owned
life insurance income and other noninterest income of $3.3 million, $1.4
million and $1.6 million, respectively.

Noninterest expense totaled $40.9 million for the second quarter of
2018, an increase of 5% from $39.2 million in the first quarter of 2018
and an increase of 16% from $35.3 million in the second quarter of 2017.
Non-operating adjustments for the second quarter of 2018 primarily
relate to merger related expenses associated with the acquisition of
Floridian Community that was completed on March 1, 2018. Non-operating
adjustments include $2 million of severance and salary related expense,
$436 thousand occupancy expense primarily related to cease use expense,
and $219 thousand of professional services, data processing and 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 9.9%, 10.3% and 12.1% for the second
quarter of 2018 respectively, compared to 10.0%, 10.7% and 12.2% for the
first quarter of 2018, respectively. Stockholders' equity totaled $1.34
billion as of June 30, 2018, an increase of 2.5% from $1.30 billion as
of March 31, 2018 due to net income of $42.7 million and an increase of
$2.7 million of additional paid-in capital partially offset by a
decrease in accumulated other comprehensive income of $12.7 million. The
Company did not repurchase common stock during the quarter. Tangible
book value per common share is $25.44 as of June 30, 2018.

Conference Call

In light of today's merger announcement with Synovus, the Company will
not be hosting a conference call today to discuss earnings as previously
scheduled.

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 include, but are not limited to, the expected completion
date, financial benefits and other effects of the proposed merger of FCB
and Floridian Community. 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, readers
are cautioned not to place undue reliance on such statements. Factors
that may cause such a difference include, but are not limited to, the
occurrence of any event, change or other circumstances that could give
rise to the right of one or both of the parties to terminate any
definitive merger agreement between Synovus and FCB; the outcome of any
legal proceedings that may be instituted against Synovus or FCB; the
ability to obtain regulatory approvals and meet other closing conditions
to the merger, including approval by Synovus and FCB shareholders on the
expected terms and schedule, including the risk that regulatory
approvals required for the merger are not obtained or are obtained
subject to conditions that are not anticipated; delay in closing the
merger; difficulties and delays in integrating the FCB business or fully
realizing cost savings and other benefits; the reaction to the
transaction of the companies' customers, employees and counterparties;
customer disintermediation; inflation; expected synergies, cost savings
and other financial benefits of the proposed transaction might not be
realized within the expected timeframes or might be less than projected;
the requisite shareholder and regulatory approvals for the proposed
transaction might not be obtained; credit and interest rate risks
associated with FCB's and Floridian Community's respective businesses,
customers, borrowings, repayment, investment, and deposit practices;
general economic conditions, either nationally or in the market areas in
which FCB and Floridian Community operate or anticipate doing business,
are less favorable than expected; new regulatory or legal requirements
or obligations; and other risks; certain risks and important factors
that could affect FCB's future results are identified in its Annual
Report on Form 10-K for the year ended December 31, 2017 and other
reports filed with the SEC, including among other things under the
heading "Risk Factors" in such Annual Report on Form 10-K. Any
forward-looking statement speaks only as of the date on which it is
made, and FCB 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.

Important Additional Information and Where to Find It

This communication is being made in respect of the proposed merger
transaction between Synovus and FCB. In connection with the proposed
merger, Synovus will file with the SEC a Registration Statement on Form
S-4 that will include the Joint Proxy Statement of Synovus and FCB and a
Prospectus of Synovus, as well as other relevant documents regarding the
proposed transaction. A definitive Joint Proxy Statement/Prospectus will
also be sent to Synovus shareholders and FCB stockholders. This
communication does not constitute an offer to sell or the solicitation
of an offer to buy any securities or a solicitation of any vote or
approval, nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction. INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND
THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT
BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION.

A free copy of the Joint Proxy Statement/Prospectus, as well as other
filings containing information about Synovus and FCB, may be obtained at
the SEC's Internet site (http://www.sec.gov).
You will also be able to obtain these documents, free of charge, from
Synovus at http://investor.synovus.com/Docs
or from FCB by accessing FCB's website at FloridaCommunityBank.com.
Copies of the Joint Proxy Statement/Prospectus can also be obtained,
free of charge, by directing a request to Synovus Investor Relations at
Investor Relations, Synovus Financial Corp., 1111 Bay Avenue, Suite 500,
P.O. Box 120, Columbus, GA 31901, by calling (888) SYNOVUS, or by
sending an e-mail to steveadams@synovus.com
or to FCB Investor Relations at Investor Relations, FCB Financial
Holdings, Inc., 2500 Weston Road, Suite 300, Weston, Florida 33331, by
calling (305) 668-5420 or by sending an e-mail to IR@fcb1923.com.

Synovus and FCB and certain of their respective directors and executive
officers may be deemed to be participants in the solicitation of proxies
from the respective shareholders of Synovus and FCB in respect of the
transaction described in the Joint Proxy Statement/Prospectus.
Information regarding Synovus's directors and executive officers is
contained in Synovus's Annual Report on Form 10-K for the year ended
December 31, 2017 and its Proxy Statement on Schedule 14A, dated March
16, 2018, which are filed with the SEC. Information regarding FCB's
directors and executive officers is contained in FCB's Annual Report on
Form 10-K for the year ended December 31, 2017 and its Proxy Statement
on Schedule 14A, dated April 4, 2018, which are filed with the SEC.
Additional information regarding the interests of those participants and
other persons who may be deemed participants in the transaction may be
obtained by reading the Joint Proxy Statement/Prospectus regarding the
proposed merger when it becomes available. Free copies of this document
may be obtained as described in the preceding paragraph.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted efficiency ratio, adjusted
return-on-assets ("adjusted 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 adjusted
net income and adjusted ROA, total net interest income, total
noninterest income and total noninterest expense in the case of adjusted
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 adjusted net
income, adjusted efficiency ratio, and adjusted 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 Adjusted net income nor Adjusted ROA should be viewed as a
substitute for net income, nor should Adjusted 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 largest community
banking company and the second largest Florida-based independent bank,
and among the most highly capitalized banks in the state. Recently, FCB
was ranked #8 among Forbes' "Best Banks in America," marking the second
consecutive year FCB was included among the publication's top 10 leading
U.S. banks. FCB was also awarded a five-star rating from Bauer
Financial™, FCB assets are more than $12 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 50 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

June 30,
2018

March 31,
2018

December 31,
2017

September 30,
2017

June 30,
2017

(Dollars in thousands, except share and per share data)
 
Interest income:
Interest and fees on loans $ 98,749 $ 87,466 $ 80,830 $ 76,465 $ 71,516
Interest and dividends on investment securities 23,443 20,854 20,479 20,215 18,921
Other interest income   367   237     181     136     136  
Total interest income   122,559   108,557     101,490     96,816     90,573  
Interest expense:
Interest on deposits 28,448 23,649 19,789 17,134 15,625
Interest on borrowings   3,292   2,725     3,587     3,901     3,061  
Total interest expense   31,740   26,374     23,376     21,035     18,686  
Net interest income 90,819 82,183 78,114 75,781 71,887
Provision for loan losses   1,505   2,076     2,786     2,871     2,115  
Net interest income after provision for loan losses   89,314   80,107     75,328     72,910     69,772  
Noninterest income:
Service charges and fees 1,183 1,054 978 941 902
Loan and other fees 3,318 4,900 3,041 2,831 3,048
Bank-owned life insurance income 1,422 1,367 1,397 1,422 1,414
Income from resolution of acquired assets 327 74 425 466 320
Gain (loss) on sales of other real estate owned 8 105 (55 ) (143 ) (23 )
Gain (loss) on investment securities 116 (1,404 ) 211 690 255
Other noninterest income   1,580   1,127     1,734     2,218     2,957  
Total noninterest income   7,954   7,223     7,731     8,425     8,873  
Noninterest expense:
Salaries and employee benefits 23,732 21,945 21,987 20,860 21,486
Occupancy and equipment expenses 4,302 3,558 3,447 3,283 3,336
Loan and other real estate related expenses 1,294 1,111 371 837 1,188
Professional services 1,141 2,265 1,690 1,390 1,508
Data processing and network 4,017 3,566 3,113 3,397 3,090
Regulatory assessments and insurance 2,196 2,497 2,280 2,330 2,184
Amortization of intangibles 370 294 255 256 256
Other operating expenses   3,874   3,925     2,976     2,886     2,204  
Total noninterest expense   40,926   39,161     36,119     35,239     35,252  
Income before income tax expense 56,342 48,169 46,940 46,096 43,393
Income tax expense   13,608   8,070     27,976     13,936     8,312  
Net income $ 42,734 $ 40,099   $ 18,964   $ 32,160   $ 35,081  
 
Earnings per share:
Basic $ 0.92 $ 0.89 $ 0.43 $ 0.74 $ 0.82
Diluted $ 0.87 $ 0.84 $ 0.41 $ 0.70 $ 0.76
 
Weighted average shares outstanding:
Basic 46,660,992 45,239,988 43,797,291 43,333,947 42,659,101
Diluted 48,979,864 47,579,309 46,565,439 46,189,468 46,042,552
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
             

June 30,
2018

March 31,
2018

December 31,
2017

September 30,
2017

June 30,
2017

(Dollars in thousands)
Assets:
Cash and due from banks $ 93,226 $ 63,640 $ 60,787 $ 62,695 $ 62,578
Interest-earning deposits in other banks 195,050 85,385 55,134 49,732 37,424
Investment securities:
Available for sale securities, at fair value 2,409,326 2,269,046 2,120,803 2,102,711 2,046,488
Federal Home Loan Bank and other bank stock, at cost   66,414     58,184     56,881     61,838     68,372  
Total investment securities   2,475,740     2,327,230     2,177,684     2,164,549     2,114,860  
Loans held for sale 2,323 4,167 12,736 13,503 24,145
Loans:
New loans 8,219,145 7,976,251 7,661,385 7,164,480 6,900,380
Acquired loans 702,428 728,141 316,399 333,725 351,021
Allowance for loan losses   (50,570 )   (49,213 )   (47,145 )   (44,291 )   (41,334 )
Loans, net   8,871,003     8,655,179     7,930,639     7,453,914     7,210,067  
Premises and equipment, net 42,075 39,424 36,144 35,741 36,111
Other real estate owned 11,159 14,072 14,906 17,599 18,540
Goodwill and other intangible assets 147,113 147,738 84,872 85,127 85,383
Deferred tax assets, net 38,914 34,933 27,043 51,521 50,612
Bank-owned life insurance 213,982 212,925 201,069 199,672 198,250
Other assets   101,714     77,420     76,065     95,279     63,422  
Total assets $ 12,192,299   $ 11,662,113   $ 10,677,079   $ 10,229,332   $ 9,901,392  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 1,530,718 $ 1,478,837 $ 1,236,685 $ 1,242,562 $ 1,135,922
Interest-bearing   4,642,679     4,770,265     4,830,525     4,486,085     4,489,554  
Total transaction accounts 6,173,397 6,249,102 6,067,210 5,728,647 5,625,476
Time deposits   3,684,788     3,237,174     2,606,717     2,377,446     2,069,714  
Total deposits 9,858,185 9,486,276 8,673,927 8,106,093 7,695,190
Borrowings 860,377 753,921 749,113 874,222 1,019,494
Other liabilities   136,806     117,774     74,867     92,944     69,430  
Total liabilities   10,855,368     10,357,971     9,497,907     9,073,259     8,784,114  
Stockholders' Equity:
Class A common stock 49 49 47 46 46
Additional paid-in capital 1,037,437 1,034,687 933,960 924,462 916,360
Retained earnings 395,752 353,019 313,645 294,681 262,521
Accumulated other comprehensive income (loss) (18,934 ) (6,240 ) 8,893 14,257 15,724
Treasury stock, at cost   (77,373 )   (77,373 )   (77,373 )   (77,373 )   (77,373 )
Total stockholders' equity   1,336,931     1,304,142     1,179,172     1,156,073     1,117,278  
Total liabilities and stockholders' equity $ 12,192,299   $ 11,662,113   $ 10,677,079   $ 10,229,332   $ 9,901,392  
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
 
Three Months Ended

June 30,
2018

 

March 31,
2018

 

December 31,
2017

 

September 30,
2017

 

June 30,
2017

Performance Ratios:
Interest rate spread 2.90% 2.87% 2.85% 2.90% 2.92%
Net interest margin 3.25% 3.18% 3.13% 3.17% 3.16%
Return on average assets 1.46% 1.48% 0.72% 1.28% 1.47%
Return on average equity 12.98% 13.24% 6.41% 11.21% 12.95%
Efficiency ratio (company level) 41.06% 43.47% 41.78% 41.54% 43.33%
Average interest-earning assets to average interest-bearing
liabilities
125.24% 124.25% 125.00% 124.57% 123.38%
Loans receivable to deposits 90.50% 91.76% 91.97% 92.50% 94.23%
Yield on interest-earning assets 4.32% 4.14% 4.02% 3.99% 3.93%
Cost of interest-bearing liabilities 1.42% 1.27% 1.17% 1.09% 1.01%
Asset and Credit Quality Ratios - Total loans:
Nonperforming loans to loans receivable 0.21% 0.19% 0.21% 0.28% 0.22%
Nonperforming assets to total assets 0.24% 0.26% 0.29% 0.38% 0.35%
ALL to nonperforming assets 169.85% 161.18% 150.41% 114.60% 120.11%
ALL to total gross loans 0.57% 0.57% 0.59% 0.59% 0.57%
Asset and Credit Quality Ratios - New Loans:
Nonperforming new loans to new loans receivable 0.06% 0.04% 0.04% 0.05% 0.02%
New loan ALL to total gross new loans 0.58% 0.58% 0.58% 0.57% 0.55%
Asset and Credit Quality Ratios - Acquired Loans:
Nonperforming acquired loans to acquired loans receivable 1.99% 1.83% 4.15% 5.23% 4.05%
Acquired loan ALL to total gross acquired loans 0.39% 0.42% 0.95% 1.01% 1.06%
Capital Ratios (Company):
Average equity to average total assets 11.2% 11.2% 11.3% 11.4% 11.3%
Tangible average equity to tangible average assets (1) 10.1% 10.3% 10.6% 10.6% 10.5%
Tangible common equity ratio (1) 9.9% 10.0% 10.3% 10.6% 10.5%
Tier 1 leverage ratio 10.3% 10.7% 10.5% 10.6% 10.6%
Tier 1 risk-based capital ratio 11.6% 11.6% 11.9% 12.2% 12.3%
Total risk-based capital ratio 12.1% 12.2% 12.4% 12.7% 12.9%
Capital Ratios (Bank):
Average equity to average total assets 10.0% 10.0% 10.1% 10.2% 10.1%
Tangible common equity ratio 9.0% 9.1% 9.0% 9.3% 9.3%
Tier 1 leverage ratio 9.4% 9.7% 9.2% 9.4% 9.3%
Tier 1 risk-based capital ratio 10.6% 10.5% 10.4% 10.8% 10.9%
Total risk-based capital ratio 11.1% 11.1% 11.0% 11.4% 11.4%
 
(1) See Reconciliation of Non-GAAP Financial Measures - Tangible
Book Value Per Share
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Loan Composition
(Unaudited)
         
As of
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
(Dollars in thousands)
New Loans:
Commercial real estate $ 2,361,475 $ 2,168,606 $ 2,103,788 $ 1,934,246 $ 1,811,977
Owner-occupied commercial real estate 1,119,816 1,074,076 987,781 933,439 856,050
1-4 single family residential 2,226,835 2,232,791 2,185,362 2,126,006 2,133,883
Construction, land and development 708,497 732,551 684,462 682,354 706,866
Home equity loans and lines of credit   60,888   61,856   59,636   52,945   47,686
Total real estate loans $ 6,477,511 $ 6,269,880 $ 6,021,029 $ 5,728,990 $ 5,556,462
Commercial and industrial 1,737,485 1,701,651 1,634,372 1,431,445 1,339,591
Consumer   4,149   4,720   5,984   4,045   4,327
Total new loans $ 8,219,145 $ 7,976,251 $ 7,661,385 $ 7,164,480 $ 6,900,380
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 137,591 $ 138,853 $ 104,335 $ 111,416 $ 120,781
1-4 single family residential 33,532 35,264 27,513 28,044 28,792
Construction, land and development 29,860 31,188 13,167 13,791 15,060
Home equity loans and lines of credit   -   202   -   -   -
Total real estate loans $ 200,983 $ 205,507 $ 145,015 $ 153,251 $ 164,633
Commercial and industrial 19,972 22,434 12,631 13,145 13,612
Consumer   1,289   1,373   1,423   1,447   1,478
Total acquired ASC 310-30 loans $ 222,244 $ 229,314 $ 159,069 $ 167,843 $ 179,723
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 106,523 $ 111,294 $ 37,736 $ 37,896 $ 38,043
Owner-occupied commercial real estate 79,203 82,534 16,100 18,097 18,266
1-4 single family residential 155,792 164,188 57,695 60,374 62,485
Construction, land and development 33,121 32,413 5,889 5,890 5,890
Home equity loans and lines of credit   42,000   42,435   34,589   38,007   40,809
Total real estate loans $ 416,639 $ 432,864 $ 152,009 $ 160,264 $ 165,493
Commercial and industrial 47,307 47,760 5,062 5,284 5,499
Consumer   16,238   18,203   259   334   306
Total Acquired Non-ASC 310-30 Loans   480,184   498,827   157,330   165,882   171,298
Total loans $ 8,921,573 $ 8,704,392 $ 7,977,784 $ 7,498,205 $ 7,251,401
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
         
As of
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 1,530,718 $ 1,478,837 $ 1,236,685 $ 1,242,562 $ 1,135,922
Interest-bearing demand deposits 1,498,421 1,375,820 1,454,097 1,232,116 1,117,280
Interest-bearing NOW accounts 440,896 474,737 363,191 368,796 401,845
Savings and money market accounts 2,703,362 2,919,708 3,013,237 2,885,173 2,970,429
Time deposits   3,684,788   3,237,174   2,606,717   2,377,446   2,069,714
Total deposits $ 9,858,185 $ 9,486,276 $ 8,673,927 $ 8,106,093 $ 7,695,190
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
         
Three Months Ended

June 30,

  Three Months Ended

March 31,

2018 2018

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 $ 76,323 $ 367 1.93 % $ 60,702 $ 237 1.58 %
New loans (4) 8,036,916 87,594 4.31 % 7,755,641 80,344 4.14 %
Acquired loans (4)(5) 711,663 11,155 6.27 % 455,649 7,122 6.25 %
Investment securities   2,396,679   23,443 3.87 %   2,205,548   20,854 3.78 %
Total interest-earning assets   11,221,581   122,559 4.32 %   10,477,540   108,557 4.14 %
Non-earning assets:
Noninterest-earning assets   539,358   484,864
Total assets $ 11,760,939 $ 10,962,404
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,356,018 $ 4,107 1.21 % $ 1,413,175 $ 3,841 1.10 %
Interest-bearing NOW accounts 474,313 1,253 1.06 % 446,304 977 0.89 %
Savings and money market accounts 2,761,374 8,647 1.26 % 2,995,900 8,369 1.13 %
Time deposits (6) 3,425,429 14,441 1.69 % 2,824,322 10,462 1.50 %
FHLB advances and other borrowings (6)   943,033   3,292 1.38 %   753,009   2,725 1.45 %
Total interest-bearing liabilities $ 8,960,167 $ 31,740 1.42 % $ 8,432,710 $ 26,374 1.27 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,415,899 $ 1,252,912
Other liabilities 64,627 48,382
Stockholders' equity   1,320,246   1,228,400
Total liabilities and stockholders' equity $ 11,760,939   $ 10,962,404  
Net interest income $ 90,819   $ 82,183  
Net interest spread 2.90 % 2.87 %
Net interest margin 3.25 % 3.18 %
 
(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 nonaccrual 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 June 30,
2018 2017

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 $ 76,323 $ 367 1.93 % $ 51,078 $ 136 1.07 %
New loans (4) 8,036,916 87,594 4.31 % 6,695,380 64,575 3.82 %
Acquired loans (4)(5) 711,663 11,155 6.27 % 355,721 6,941 7.80 %
Investment securities   2,396,679   23,443 3.87 %   2,025,060   18,921 3.70 %
Total interest-earning assets   11,221,581   122,559 4.32 %   9,127,239   90,573 3.93 %
Non-earning assets:
Noninterest-earning assets   539,358   475,115
Total assets $ 11,760,939 $ 9,602,354
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,356,018 $ 4,107 1.21 % $ 1,073,823 $ 2,289 0.85 %
Interest-bearing NOW accounts 474,313 1,253 1.06 % 419,774 637 0.61 %
Savings and money market accounts 2,761,374 8,647 1.26 % 3,071,859 6,857 0.90 %
Time deposits (6) 3,425,429 14,441 1.69 % 2,007,097 5,842 1.17 %
FHLB advances and other borrowings (6)   943,033   3,292 1.38 %   825,154   3,061 1.47 %
Total interest-bearing liabilities $ 8,960,167 $ 31,740 1.42 % $ 7,397,707 $ 18,686 1.01 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,415,899 $ 1,070,311
Other liabilities 64,627 47,782
Stockholders' equity   1,320,246   1,086,554
Total liabilities and stockholders' equity $ 11,760,939   $ 9,602,354  
Net interest income $ 90,819   $ 71,887  
Net interest spread 2.90 % 2.92 %
Net interest margin 3.25 % 3.16 %
 
(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 nonaccrual status.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Average Balances and Yields
(Unaudited)
           
Six months ended June 30,
2018 2017

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 $ 68,556 $ 604 1.78 % $ 42,581 $ 208 0.99 %
New loans (4) 7,897,056 167,937 4.23 % 6,519,909 123,266 3.76 %
Acquired loans (4)(5) 584,363 18,278 6.26 % 361,978 14,839 8.20 %
Investment securities   2,301,641   44,297 3.83 %   2,005,679   37,482 3.72 %
Total interest-earning assets   10,851,616   231,116 4.24 %   8,930,147   175,795 3.92 %
Non-earning assets:
Noninterest-earning assets   512,261   470,392
Total assets $ 11,363,877 $ 9,400,539
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,384,438 $ 7,948 1.16 % $ 1,043,672 $ 4,000 0.77 %
Interest-bearing NOW accounts 460,386 2,231 0.98 % 412,171 1,111 0.54 %
Savings and money market accounts 2,877,989 17,015 1.19 % 2,932,682 11,973 0.82 %
Time deposits (6) 3,126,536 24,903 1.61 % 2,078,413 12,059 1.17 %
FHLB advances and other borrowings (6)   848,546   6,017 1.41 %   834,489   5,095 1.21 %
Total interest-bearing liabilities $ 8,697,895 $ 58,114 1.35 % $ 7,301,427 $ 34,238 0.94 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,334,856 $ 1,008,247
Other liabilities 56,549 39,970
Stockholders' equity   1,274,577   1,050,895
Total liabilities and stockholders' equity $ 11,363,877   $ 9,400,539  
Net interest income $ 173,002   $ 141,557  
Net interest spread 2.89 % 2.98 %
Net interest margin 3.21 % 3.20 %
 
(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 nonaccrual status.
(5) Net of allowance for loan losses.
(6) Interest expense includes the impact from premium amortization.
 
 
Reconciliation of Non-GAAP Financial Measures - Adjusted Net
Income
(Unaudited)
         
Three Months Ended

June 30,
2018

March 31,
2018

December 31,
2017

September 30,
2017

June 30,
2017

(Dollars in thousands)
 
Net Income $ 42,734 $ 40,099 $ 18,964 $ 32,160 $ 35,081
 
Pre-tax Adjustments:
Noninterest income:
Less: Gain (loss) on investment securities 116 (1,404 ) 211 690 255
Noninterest expense:
Salaries and employee benefits 2,031 826 115 51 223
Occupancy and equipment 436 3 - - -
Loan and other real estate related expenses - - - - -
Professional services 9 911 148 - -
Data processing and network fees 4 539 - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 207 277 65 125 21
Taxes:
Tax Effect of adjustments (1)   646     (3,398 )   16,212     2,541     (2,534 )
Adjusted Net Income $ 45,951   $ 40,661   $ 35,293   $ 34,187   $ 32,536  
 
Average assets $ 11,760,939 $ 10,962,404 $ 10,382,043 $ 9,971,003 $ 9,602,354
ROA (2) 1.46 % 1.48 % 0.72 % 1.28 % 1.47 %
Adjusted ROA (3) 1.57 % 1.50 % 1.35 % 1.36 % 1.36 %
 
(1) Tax effected at marginal income tax rate of 25% except for non
tax deductible and discreet items. Adjusted tax rate 25% for
full-year 2017 and 20-23% for full-year 2018.
(2) Return on assets: Annualized net income / average assets
(3) Adjusted return on assets: Annualized adjusted net income /
average assets
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures - Adjusted
Efficiency Ratio
(Unaudited)
         
Three Months Ended

June 30,
2018

March 31,
2018

December 31,
2017

September 30,
2017

June 30,
2017

(Dollars in thousands)
 
Reported: Net interest income $ 90,819 $ 82,183 $ 78,114 $ 75,781 $ 71,887
FTE adjustment   543     479     1,245     1,357     1,348  
Adjusted net interest income $ 91,362   $ 82,662   $ 79,359   $ 77,138   $ 73,235  
 
Reported: Noninterest income $ 7,954 $ 7,223 $ 7,731 $ 8,425 $ 8,873
FTE adjustment 474 456 879 894 904
Less: Gain (loss) on investment securities   116     (1,404 )   211     690     255  
Adjusted noninterest income $ 8,312   $ 9,083   $ 8,399   $ 8,629   $ 9,522  
Reported: Noninterest expense $ 40,926 $ 39,161 $ 36,119 $ 35,239 $ 35,252
Less:
Salaries and employee benefits 2,031 826 115 51 223
Occupancy and equipment 436 3 - - -
Loan and other real estate related expenses - - - - -
Professional services 9 911 148 - -
Data processing and network fees 4 539 - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses   207     277     65     125     21  
Adjusted noninterest expense $ 38,239   $ 36,605   $ 35,791   $ 35,063   $ 35,008  
Efficiency ratio (1) 41.06 % 43.47 % 41.78 % 41.54 % 43.33 %
Adjusted efficiency ratio (2) 37.99 % 39.58 % 40.49 % 40.58 % 41.99 %
 
(1) Efficiency ratio: Noninterest expense less amortization of
intangibles / (noninterest income + net interest income)
(2) Adjusted efficiency ratio: Adjusted noninterest expense less
amortization of intangibles / (adjusted noninterest income +
adjusted net interest income)
 
 
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures - Tangible Book Value Per
Share
(Unaudited)
         
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
(Dollars in thousands, except share and per share data)
 
Total assets $ 12,192,299 $ 11,662,113 $ 10,677,079 $ 10,229,332 $ 9,901,392
Less:
Goodwill and other intangible assets   147,113     147,738     84,872     85,127     85,383  
Tangible assets $ 12,045,186   $ 11,514,375   $ 10,592,207   $ 10,144,205   $ 9,816,009  
Total stockholders' equity $ 1,336,931 $ 1,304,142 $ 1,179,172 $ 1,156,073 $ 1,117,278
Less:
Goodwill and other intangible assets   147,113     147,738     84,872     85,127     85,383  
Tangible stockholders' equity $ 1,189,818   $ 1,156,404   $ 1,094,300   $ 1,070,946   $ 1,031,895  
Shares outstanding 46,765,902 46,620,627 44,380,580 43,728,302 43,208,418
Tangible book value per share $ 25.44 $ 24.80 $ 24.66 $ 24.49 $ 23.88
Average assets $ 11,760,939 $ 10,962,404 $ 10,382,043 $ 9,971,003 $ 9,602,354
Average equity 1,320,246 1,228,400 1,173,488 1,137,834 1,086,554
Average goodwill and other intangible assets 147,525 105,988 84,996 85,257 85,511
Tangible average equity to tangible average assets 10.1 % 10.3 % 10.6 % 10.6 % 10.5 %
Tangible common equity ratio 9.9 % 10.0 % 10.3 % 10.6 % 10.5 %
 

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