FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported fourth quarter 2015 net income of $29.7 million, or $0.68 per share on a fully diluted basis, and record core net income of $22.5 million, or $0.52 per share on a fully diluted basis. Core net income rose 79% year-over-year and core net income per diluted share rose 73%. These resulted in a ROA of 166 basis points and a core ROA of 125 basis points, and continue to reflect improvements on a year-over-year basis.

  • Total net revenue of $69.5 million, up 26% year-over-year
  • Core EPS of $0.52 per share on a fully diluted basis
  • Total loan portfolio grew sequentially at an annualized rate of 32%;
  • New loan fundings of $518.6 million during the quarter;
  • Total deposits grew sequentially at an annualized rate of 50%;
  • Demand deposits grew to 23% of total deposits during the quarter;
  • Core efficiency ratio improved to 45.0%;
  • Core ROA of 125 basis points; and
  • Tangible book value per share was $19.31;

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 2015 include the release of a $9.1 million deferred tax asset valuation reserve related to the Great Florida Acquisition, $0.5 million of cease use expense related to branch closures, $0.1 million of severance and other operating expenses and $28 thousand loss on sale of investment securities. During the quarter and relating to the fiscal year, the Company recorded an additional $1.4 million of true-up tax expense.

The reconciliation of non-GAAP measures (including core net income, core efficiency ratio, core ROA, tangible book value and tangible book value per share), which the Company believes facilitate the assessment of its banking operations and peer comparability, 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 another record quarter for our Company, providing a strong finish to an eventful year for FCB. We are pleased by our results this quarter highlighted by surpassing $7 billion in assets, as new loans grew by over $450 million and deposits grew over $600 million. This continued momentum across our fundamental core businesses is all a reflection of our mission to build Florida’s leading independent banking franchise. As of year-end, we are the 3rd largest independent bank and the largest pure play in the state of Florida.”

Loan Portfolio and Composition

During the quarter, the total loan portfolio, gross of the allowance for loan losses, grew by $387.1 million to $5.2 billion at December 31, 2015, an increase of 8% from $4.8 billion as of September 30, 2015 and 32% from $3.9 billion as of December 31, 2014.

The Bank’s new loan portfolio totaled $4.6 billion as of December 31, 2015, an increase of 11% from $4.2 billion as of September 30, 2015 and 49% from $3.1 billion as of December 31, 2014. Loan growth during the quarter was a result of $518.6 million of new loan fundings, consisting of $372.9 million of organic production and $145.7 million of purchased residential mortgages. Organic loan production for the quarter consisted of $154.7 million of commercial and industrial, $106.0 million of commercial real estate and $112.2 million of residential and consumer. As the acquired portfolio continues to resolve, the Bank may periodically supplement organic production with high quality purchased residential mortgages as part of its overall balance sheet management strategy. As of December 31, 2015 new loans made up 89% of our total loan portfolio as compared to 87% and 79% as of September 30, 2015 and December 31, 2014, respectively.

The Bank’s acquired loan portfolio totaled $582.4 million as of December 31, 2015, a decrease of 10% from $647.1 million as of September 30, 2015 and a decrease of 30% from $826.2 million as of December 31, 2014. The decrease in the current quarter was driven by the resolution of $32.6 million of loans as well as scheduled loan amortization. As of December 31, 2015, acquired loans made up 11% of our total loan portfolio as compared to 13% and 21% as of September 30, 2015 and December 31, 2014, respectively.

Asset Quality

The provision for loan losses of $2.3 million recorded for the fourth quarter of 2015 includes a $2.3 million provision for new loans and net recoupment of valuation allowance of $12 thousand for the acquired loan portfolio due to better than expected performance on resolution of acquired loans. The provision for new loans served to increase the related allowance to $23.7 million, or 0.52% of the $4.6 billion in new loans outstanding. The nonperforming new loan ratio as of December 31, 2015 was 0.03%.

Deposits and Borrowings

Deposits totaled $5.4 billion as of December 31, 2015, an increase of 13% from $4.8 billion as of September 30, 2015 and an increase of 36% from $4.0 billion as of December 31, 2014. During the fourth quarter of 2015, demand deposits increased by $222.7 million, or 22%, from September 30, 2015 and increased by $530.1 million, or 74%, from December 31, 2014. Demand deposits represent 23% of total deposits as of December 31, 2015 as compared to 21% and 18% as of September 30, 2015 and December 31, 2014, respectively. The cost of deposits was 60 basis points for the quarter, representing one basis point increase from the third quarter of 2015 and a 4 basis point increase from the fourth quarter of 2014.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2015 was 3.69%, an increase of 7 basis points from both the third quarter of 2015 and the fourth quarter of 2014. The increase from the third quarter of 2015 was due primarily to an increase in yield on the acquired loan portfolio resulting from better than expected cash flow performance.

Net interest income totaled $62.0 million in the fourth quarter of 2015, an increase of 9% from $56.8 million in the third quarter of 2015 and an increase of 24% from $49.8 million in the fourth quarter of 2014. Interest income totaled $71.2 million for the fourth quarter of 2015, an increase of 9% from $65.0 million in the third quarter of 2015 and an increase of 26% from $56.4 million in the fourth quarter of 2014. Interest income from new loans increased by $3.4 million, or 10%, from the third quarter of 2015 due to continued growth in the new loan portfolio. Interest income on acquired loans increased by $1.9 million, or 10%, from the third quarter as balance runoff was more than offset by better than expected cash flow performance. Interest expense was $9.2 million for the fourth quarter of 2015, an increase of 11% from $8.3 million in the third quarter of 2015 and an increase 39% from $6.6 million in the fourth quarter of 2014. The increase from the third quarter of 2015 was a result of an increase of $418.1 million of average interest-bearing liabilities coupled with increased costs associated with the addition of longer duration deposits.

Noninterest Income and Noninterest Expense

Noninterest income totaled $7.5 million for the fourth quarter of 2015 as compared to $7.1 million for the third quarter of 2015 and $5.4 million for the fourth quarter of 2014. The primary components of noninterest income for the quarter were loan and other fees and income from resolution of acquired assets of $2.4 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 $33.2 million for the fourth quarter of 2015, an increase of 8% from $30.7 million in the third quarter of 2015 and 6% from $31.5 million in the fourth quarter of 2014. For the quarter, the Company recorded non-core expenses of $0.6 million consisting of severance and other salary expense of $48 thousand, cease use expense of $0.5 million and other operating expenses of $88 thousand relating to branch closures.

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 10.9%, 11.2% and 13.6% for the fourth quarter of 2015 respectively, compared to 11.3%, 11.5% and 14.2% for the third quarter of 2015, respectively. Stockholders’ equity totaled $876.1 million as of December 31, 2015, an increase of 2.4% from $855.9 million as of September 30, 2015 as net income of $29.7 million was partially offset by $7.6 million in treasury stock repurchases and a $6.5 million increase in accumulated other comprehensive loss. During the quarter, the Company repurchased 211,159 shares at a cost of $7.6 million. Tangible book value per common share is $19.31 as of December 31, 2015.

Conference Call

The Company will host a conference call today, Monday, January 25, 2016 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, 2016, by dialing (877) 344-7529 and entering pass code 10078277.

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.

With $7.3 billion in assets, Florida Community Bank (FCB) is the third largest Florida-based independent bank. Listed on the New York Stock Exchange, (NYSE: FCB), the bank serves the state with 49 full service banking centers. The presence of FCB blankets both Florida coasts from Daytona Beach to Miami-Dade, Naples through Tampa Bay, as well as the I-4 Corridor. FCB is among the most highly capitalized banks in the state with capital ratios exceeding the regulatory standard to be considered “well capitalized.” Complete information outlining the depth and breadth of the company is found at www.FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
         
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
(Dollars in thousands, except share and per share data)
 
Interest income:
Interest and fees on loans $ 56,945 $ 51,670 $ 44,202 $ 43,306 $ 43,900
Interest and dividends on investment securities 14,147 13,315 13,169 12,110 12,451
Other interest income   65     38   40   33     53  
Total interest income   71,157     65,023   57,411   55,449     56,404  
Interest expense:
Interest on deposits 7,719 6,846 5,991 5,585 5,492
Interest on borrowings   1,469     1,408   1,246   980     1,133  
Total interest expense   9,188     8,254   7,237   6,565     6,625  
Net interest income 61,969 56,769 50,174 48,884 49,779
Provision for loan losses   2,329     675   2,470   1,349     3,112  
Net interest income after provision for loan losses   59,640     56,094   47,704   47,535     46,667  
Noninterest income:
Service charges and fees 826 823 778 757 780
Loan and other fees 2,425 1,783 1,906 2,497 2,270
Bank-owned life insurance income 1,315 1,101 1,097 1,097 1,168
FDIC loss share indemnification loss - - - (65,529 ) (5,324 )
Income from resolution of acquired assets 1,110 2,225 2,898 3,372 1,061
Gain (loss) on sales of other real estate owned 709 228 5,605 1,565 200
Gain (loss) on investment securities (28 ) 166 761 1,007 2,377
Other noninterest income   1,186     746   1,107   1,145     2,912  
Total noninterest income   7,543     7,072   14,152   (54,089 )   5,444  
Noninterest expense:
Salaries and employee benefits 17,750 16,840 17,856 16,575 14,885
Occupancy and equipment expenses 3,946 3,368 3,806 3,277 3,248
Loan and other real estate related expenses 2,300 1,939 1,425 2,076 4,566
Professional services 1,651 1,166 1,189 1,406 1,242
Data processing and network 2,719 2,433 2,801 2,718 2,639
Regulatory assessments and insurance 2,066 1,919 2,092 2,119 1,679
Amortization of intangibles 400 400 407 424 425
Other operating expenses   2,369     2,641   2,471   2,055     2,779  
Total noninterest expense   33,201     30,706   32,047   30,650     31,463  
Income (loss) before income tax expense (benefit) 33,982 32,460 29,809 (37,204 ) 20,648
Income tax expense (benefit)   4,233     11,320   10,433   (20,330 )   7,548  
Net income (loss) $ 29,749   $ 21,140 $ 19,376 $ (16,874 ) $ 13,100  
 
Earnings (loss) per share:
Basic $ 0.73 $ 0.51 $ 0.47 $ (0.41 ) $ 0.32
Diluted $ 0.68 $ 0.48 $ 0.45 $ (0.41 ) $ 0.31
 
Weighted average shares outstanding:
Basic 40,976,006 41,381,482 41,428,588 41,421,854 41,409,698
Diluted 43,643,408 43,798,378 43,106,131 41,421,854 42,154,781
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
           
December 31, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
(Dollars in thousands)
Assets:
Cash and due from banks $ 44,696 $ 38,045 $ 32,161 $ 46,043 $ 25,397
Interest-earning deposits in other banks 57,764 46,714 109,125 66,034 81,688
Investment securities:
Held to maturity securities - - - - -
Available for sale securities, at fair value 1,524,622 1,467,819 1,430,149 1,447,776 1,359,098
Federal Home Loan Bank and other bank stock, at cost   59,477     65,955     70,505     65,289     66,891  
Total investment securities   1,584,099     1,533,774     1,500,654     1,513,065     1,425,989  
Loans held for sale 2,514 2,573 4,782 1,308 707
Loans:
New loans 4,610,763 4,158,997 3,807,547 3,354,452 3,103,417
Acquired loans 582,424 647,139 720,175 764,597 826,173
Allowance for loan losses   (29,126 )   (27,394 )   (27,046 )   (24,513 )   (22,880 )
Loans, net   5,164,061     4,778,742     4,500,676     4,094,536     3,906,710  
FDIC Loss share indemnification asset - - - - 63,168
Due from Federal Deposit Insurance Corporation ("FDIC") - - - - 1,735
Premises and equipment, net 36,954 37,351 37,641 38,291 38,962
Other real estate owned 39,340 40,405 42,654 75,017 74,527
Goodwill and other intangible assets 87,084 87,484 87,884 88,291 88,615
Deferred tax assets, net 75,176 78,090 76,720 69,656 47,441
Bank-owned life insurance 168,246 166,931 140,830 139,733 139,829
Other assets   71,552     78,580     74,071     85,109     62,860  
Total assets $ 7,331,486   $ 6,888,689   $ 6,607,198   $ 6,217,083   $ 5,957,628  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 637,047 $ 618,741 $ 621,845 $ 595,389 $ 593,025
Interest-bearing   2,935,418     2,678,410     2,586,491     2,411,142     2,308,657  
Total transaction accounts 3,572,465 3,297,151 3,208,336 3,006,531 2,901,682
Time deposits   1,858,173     1,524,693     1,257,751     1,219,470     1,076,853  
Total deposits 5,430,638 4,821,844 4,466,087 4,226,001 3,978,535
Borrowings 983,183 1,149,920 1,232,893 1,091,118 1,067,981
Other liabilities   41,556     61,047     50,739     53,130     59,459  
Total liabilities   6,455,377     6,032,811     5,749,719     5,370,249     5,105,975  
Stockholders' Equity:
Class A common stock 39 39 37 37 36
Class B common stock 4 4 6 6 7
Additional paid-in capital 850,609 846,017 839,265 836,720 834,538
Retained earnings 88,535 58,786 37,646 18,270 35,144
Accumulated other comprehensive income (loss) (9,443 ) (2,905 ) 78 10,552 679
Treasury stock, at cost   (53,635 )   (46,063 )   (19,553 )   (18,751 )   (18,751 )
Total stockholders' equity   876,109     855,878     857,479     846,834     851,653  
Total liabilities and stockholders' equity $ 7,331,486   $ 6,888,689   $ 6,607,198   $ 6,217,083   $ 5,957,628  
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
 
  Three Months Ended
December 31,   September 30,   June 30,   March 31,   December 31,
2015 2015 2015 2015 2014
Performance Ratios
Interest rate spread 3.56% 3.49% 3.28% 3.42% 3.50%
Net interest margin 3.69% 3.62% 3.43% 3.58% 3.62%
Return on average assets 1.66% 1.26% 1.22% -1.13% 0.87%
Return on average equity 13.65% 9.73% 8.99% -7.97% 6.15%
Efficiency ratio (company level) 47.19% 47.47% 49.19% -580.71% 56.97%
Average interest-earning assets to average interest bearing liabilities 119.25% 120.40% 121.22% 121.55% 119.64%
Loans receivable to deposits 95.63% 99.67% 101.38% 97.47% 98.77%
Yield on interest-earning assets 4.21% 4.12% 3.88% 4.00% 4.08%
Cost of interest-bearing liabilities 0.65% 0.63% 0.60% 0.58% 0.58%
Asset and Credit Quality Ratios - Total loans
Nonperforming loans to loans receivable 0.35% 0.36% 0.39% 0.40% 0.49%
Nonperforming assets to total assets 0.79% 0.84% 0.91% 1.47% 1.58%
Covered loans to total gross loans 0.00% 0.00% 0.00% 0.00% 6.96%
ALL to nonperforming assets 50.47% 47.43% 44.83% 26.77% 24.36%
ALL to total gross loans 0.56% 0.57% 0.60% 0.60% 0.58%
Asset and Credit Quality Ratios - New Loans
Nonperforming new loans to new loans receivable 0.03% 0.01% 0.00% 0.00% 0.00%
New loan ALL to total gross new loans 0.52% 0.52% 0.51% 0.52% 0.52%
Asset and Credit Quality Ratios - Acquired Loans
Nonperforming acquired loans to acquired loans receivable 2.90% 2.61% 2.45% 2.16% 2.34%
Covered acquired loans to total gross acquired loans 0.00% 0.00% 0.00% 0.00% 33.09%
Acquired loan ALL to total gross acquired loans 0.92% 0.92% 1.04% 0.94% 0.83%
Capital Ratios (Company)
Average equity to average total assets 12.1% 13.0% 13.5% 14.2% 14.2%
Tangible average equity to tangible average assets 11.0% 11.8% 12.3% 12.9% 12.9%
Tangible common equity ratio (1) 10.9% 11.3% 11.8% 12.4% 13.0%
Tier 1 leverage ratio 11.2% 11.5% 12.3% 12.6% 12.8%
Tier 1 risk-based capital ratio 13.1% 13.6% 14.5% 15.2% 17.0%
Total risk-based capital ratio 13.6% 14.2% 15.0% 15.7% 17.6%
Capital Ratios (Bank)
Average equity to average total assets 11.0% 11.5% 11.8% 11.8% 11.7%
Tangible common equity ratio 9.7% 10.0% 10.2% 10.6% 10.4%
Tier 1 leverage ratio 10.0% 10.3% 10.7% 10.8% 10.4%
Tier 1 risk-based capital ratio 11.7% 12.2% 13.0% 13.4% 13.9%
Total risk-based capital ratio 12.2% 12.8% 13.5% 14.0% 14.5%
 
(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,
2015 2015 2015 2015 2014
(Dollars in thousands)
New Loans:
Commercial real estate $ 998,141 $ 991,451 $ 942,424 $ 903,629 $ 853,074
Owner-occupied commercial real estate 524,728 452,991 400,438 325,972 281,703
1-4 single family residential 1,541,255 1,326,180 1,248,625 1,044,480 922,657
Construction, land and development 537,494 430,690 349,659 248,623 232,601
Home equity loans and lines of credit   30,945   28,185   22,798   20,459   11,826
Total real estate loans $ 3,632,563 $ 3,229,497 $ 2,963,944 $ 2,543,163 $ 2,301,861
Commercial and industrial 972,803 925,285 837,270 805,233 795,000
Consumer   5,397   4,215   6,333   6,056   6,556
Total new loans $ 4,610,763 $ 4,158,997 $ 3,807,547 $ 3,354,452 $ 3,103,417
 
Acquired ASC 310-30 Loans:
Commercial real estate $ 247,628 $ 259,411 $ 286,337 $ 309,758 $ 336,935
1-4 single family residential 40,922 69,915 76,849 77,685 86,308
Construction, land and development   28,017   32,996   55,453   56,403   66,700
Total real estate loans $ 316,567 $ 362,322 $ 418,639 $ 443,846 $ 489,943
Commercial and industrial 36,783 46,233 58,045 63,441 67,498
Consumer   2,390   2,434   2,524   2,588   2,803
Total Acquired ASC 310-30 Loans $ 355,740 $ 410,989 $ 479,208 $ 509,875 $ 560,244
 
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 55,985 $ 60,804 $ 62,473 $ 69,917 $ 70,146
Owner-occupied commercial real estate 21,101 19,699 19,860 13,287 14,842
1-4 single family residential 84,111 86,832 86,754 97,450 102,279
Construction, land and development 6,338 6,319 8,610 9,801 9,729
Home equity loans and lines of credit   49,407   50,566   52,971   52,762   54,704
Total real estate loans $ 216,942 $ 224,220 $ 230,668 $ 243,217 $ 251,700
Commercial and industrial 9,312 11,504 9,654 10,825 13,548
Consumer   430   426   645   680   681
Total Acquired Non-ASC 310-30 Loans   226,684   236,150   240,967   254,722   265,929
Total loans $ 5,193,187 $ 4,806,136 $ 4,527,722 $ 4,119,049 $ 3,929,590
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
         
As of
December 31, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
(Dollars in thousands)
 
Noninterest-bearing demand deposits $ 637,047 $ 618,741 $ 621,845 $ 595,389 $ 593,025
Interest-bearing demand deposits 608,454 404,085 288,990 196,192 122,380
Interest-bearing NOW accounts 347,832 350,602 414,795 439,400 374,399
Savings and money market accounts 1,979,132 1,923,723 1,882,706 1,775,550 1,811,878
Time deposits   1,858,173   1,524,693   1,257,751   1,219,470   1,076,853
Total deposits $ 5,430,638 $ 4,821,844 $ 4,466,087 $ 4,226,001 $ 3,978,535

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Quarterly Average Balances and Yields
(Unaudited)
                   

Three Months Ended December 31,

      

Three Months Ended September 30,

2015 2015
Average Interest/ Annualized Average Interest/ Annualized
Balance (1) Expense (2) Yield/Rate(3)   Balance (1) Expense (2) Yield/Rate(3)
(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 142,637 $ 65 0.18 % $ 79,951 $ 38 0.19 %
New loans 4,314,707 37,230 3.38 % 3,950,873 33,823 3.35 %
Acquired loans (4) 622,110 19,715 12.68 % 685,403 17,847 10.42 %
Investment securities   1,575,963   14,147 3.51 %   1,499,640   13,315 3.47 %
Total interest-earning assets   6,655,417   71,157 4.21 %   6,215,867   65,023 4.12 %
Non-earning assets:
FDIC loss share indemnification asset - -
Noninterest-earning assets   467,682   434,393
Total assets $ 7,123,099 $ 6,650,260
Interest-bearing liabilities:
Interest-bearing demand deposits $ 567,610 $ 616 0.43 % $ 369,381 $ 431 0.46 %
Interest-bearing NOW accounts 319,586 284 0.35 % 397,831 342 0.34 %
Savings and money market accounts 1,906,896 2,369 0.49 % 1,895,582 2,569 0.54 %
Time deposits 1,680,997 4,450 1.05 % 1,380,658 3,504 1.01 %
FHLB advances and other borrowings   1,105,878   1,469 0.52 %   1,119,429   1,408 0.49 %
Total interest-bearing liabilities $ 5,580,967 $ 9,188 0.65 % $ 5,162,881 $ 8,254 0.63 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 620,508 $ 578,699
Other liabilities 56,970 46,709
Stockholders' equity   864,654   861,971
Total liabilities and stockholders' equity $ 7,123,099   $ 6,650,260  
Net interest income $ 61,969   $ 56,769  
Net interest spread 3.56 % 3.49 %
Net interest margin 3.69 % 3.62 %
 
(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,
2015   2014  
Average Interest/ Annualized Average Interest/ Annualized
Balance (1) Expense (2) Yield/Rate(3) Balance (1) Expense (2) Yield/Rate(3)
(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 142,637 $ 65 0.18 % $ 103,597 $ 53 0.20 %
New loans 4,314,707 37,230 3.38 % 2,844,186 24,631 3.39 %
Acquired loans (4) 622,110 19,715 12.68 % 847,438 19,269 9.10 %
Investment securities   1,575,963   14,147 3.51 %   1,662,139   12,451 2.93 %
Total interest-earning assets   6,655,417   71,157 4.21 %   5,457,360   56,404 4.08 %
Non-earning assets:
FDIC loss share indemnification asset - 67,521
Noninterest-earning assets   467,682   428,823
Total assets $ 7,123,099 $ 5,953,704
Interest-bearing liabilities:
Interest-bearing demand deposits $ 567,610 $ 616 0.43 % $ 103,062 $ 53 0.20 %
Interest-bearing NOW accounts 319,586 284 0.35 % 370,777 323 0.34 %
Savings and money market accounts 1,906,896 2,369 0.49 % 1,770,403 2,608 0.58 %
Time deposits 1,680,997 4,450 1.05 % 1,120,326 2,508 0.89 %
FHLB advances and other borrowings   1,105,878   1,469 0.52 %   1,196,942   1,133 0.37 %
Total interest-bearing liabilities $ 5,580,967 $ 9,188 0.65 % $ 4,561,510 $ 6,625 0.58 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 620,508 $ 499,058
Other liabilities 56,970 48,564
Stockholders' equity   864,654   844,572
Total liabilities and stockholders' equity $ 7,123,099   $ 5,953,704  
Net interest income $ 61,969   $ 49,779  
Net interest spread 3.56 % 3.50 %
Net interest margin 3.69 % 3.62 %
 
(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,

2015 2014
Average Interest/ Annualized Average Interest/ Annualized
Balance (1) Expense (2) Yield/Rate(3)   Balance (1) Expense (2) Yield/Rate(3)
(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 94,162 $ 176 0.19 % $ 100,849 $ 211 0.21 %
New loans 3,734,285 126,895 3.35 % 2,299,940 81,353 3.49 %
Acquired loans (4) 708,203 69,228 9.78 % 888,444 77,317 8.70 %
Investment securities   1,537,840   52,741 3.38 %   1,673,594   44,545 2.63 %
Total interest-earning assets   6,074,490   249,040 4.06 %   4,962,827   203,426 4.06 %
Non-earning assets:
FDIC loss share indemnification asset 10,860 76,851
Noninterest-earning assets   452,288   407,289
Total assets $ 6,537,638 $ 5,446,967
Interest-bearing liabilities:
Interest-bearing demand deposits $ 324,053 $ 1,405 0.43 % $ 25,977 $ 53 0.20 %
Interest-bearing NOW accounts 381,081 1,310 0.34 % 245,998 749 0.30 %
Savings and money market accounts 1,860,403 9,726 0.52 % 1,708,507 9,845 0.58 %
Time deposits 1,364,064 13,700 1.00 % 1,338,016 12,111 0.91 %
FHLB advances and other borrowings   1,110,135   5,103 0.45 %   871,296   5,496 0.62 %
Total interest-bearing liabilities $ 5,039,736 $ 31,244 0.63 % $ 4,189,794 $ 28,254 0.68 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 586,473 $ 433,330
Other liabilities 51,218 48,856
Stockholders' equity   860,211   774,987
Total liabilities and stockholders' equity $ 6,537,638   $ 5,446,967  
Net interest income $ 217,796   $ 175,172  
Net interest spread 3.43 % 3.38 %
Net interest margin 3.59 % 3.53 %
 
(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
Reconciliation of Non-GAAP Financial Measures - Core Net Income
(Unaudited)
       
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
(Dollars in thousands)
 
Net Income (loss) $ 29,749 $ 21,140 $ 19,376 $ (16,874 ) $ 13,100
 
Pre-tax Adjustments
Noninterest income
Less: Gain (loss) on investment securities (28 ) 166 761 1,007 2,377
FDIC loss share indemnification loss - - - (65,529 ) -
Noninterest expense
Salaries and employee benefits 48 3 (17 ) 185 1
Occupancy and equipment 512 - - - -
Loan and other real estate related expenses - - - - -
Professional services - - 45 245 -
Data processing and network fees - - - 2 -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 88 20 203 64 (6 )
Taxes
Tax Effect of adjustments (1)   (7,897 )   50     186     (30,065 )   1,881  
Core Net Income $ 22,528   $ 21,047   $ 19,031   $ 18,079   $ 12,599  
 
Average assets $ 7,123,099 $ 6,650,260 $ 6,325,073 $ 6,038,970 $ 5,953,704
ROA (2) 1.66 % 1.26 % 1.23 % -1.13 % 0.87 %
Core ROA (3) 1.25 % 1.26 % 1.21 % 1.21 % 0.84 %
 
(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.
(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, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
(Dollars in thousands)
 
Reported: Net interest income $ 61,969 $ 56,769 $ 50,174 $ 48,884 $ 49,779
FTE adjustment   1,044     1,043     986     777     711  
Core net interest income $ 63,013   $ 57,812   $ 51,160   $ 49,661   $ 50,490  
 
Reported: Noninterest income $ 7,543 $ 7,072 $ 14,152 $ (54,089 ) $ 5,444
FTE adjustment 841 704 701 702 747
Less: Gain (loss) on investment securities (28 ) 166 761 1,007 2,377
FDIC loss share indemnification loss   -     -     -     (65,529 )   -  
Core noninterest income (loss) $ 8,412   $ 7,610   $ 14,092   $ 11,135   $ 3,814  
Reported: Noninterest expense $ 33,201 $ 30,706 $ 32,047 $ 30,650 $ 31,463
Less:
Salaries and employee benefits 48 3 (17 ) 185 1
Occupancy and equipment 512 - - - -
Loan and other real estate related expenses - - - - -
Professional services - - 45 245 -
Data processing and network fees - - - 2 -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses   88     20     203     64     (6 )
Core noninterest expense $ 32,553   $ 30,683   $ 31,816   $ 30,154   $ 31,468  
Efficiency ratio (1) 47.19 % 47.47 % 49.19 % -580.71 % 56.97 %
Core efficiency ratio (2) 45.02 % 46.29 % 48.14 % 48.90 % 57.95 %
 
(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,
2015   2015   2015   2015   2014  
(Dollars in thousands, except share and per share data)
 
Total assets $ 7,331,486 $ 6,888,689 $ 6,607,198 $ 6,217,083 $ 5,957,628
Less:
Goodwill and other intangible assets   87,084     87,484     87,884     88,291     88,615  
Tangible assets $ 7,244,402   $ 6,801,205   $ 6,519,314   $ 6,128,792   $ 5,869,013  
Total stockholders' equity $ 876,109 $ 855,878 $ 857,479 $ 846,834 $ 851,653
Less:
Goodwill and other intangible assets   87,084     87,484     87,884     88,291     88,615  
Tangible stockholders' equity $ 789,025   $ 768,394   $ 769,595   $ 758,543   $ 763,038  
Shares outstanding 40,860,453 40,984,200 41,423,199 41,443,031 41,409,698
Tangible book value per share $ 19.31 $ 18.75 $ 18.58 $ 18.30 $ 18.43
Average assets $ 7,123,099 $ 6,650,260 $ 6,325,073 $ 6,038,970 $ 5,953,704
Average equity 864,654 861,971 855,128 859,011 844,572
Average goodwill and other intangible assets 87,291 87,701 88,091 88,536 88,835
Tangible average equity to tangible average assets 11.0 % 11.8 % 12.3 % 12.9 % 12.9 %
Tangible common equity ratio 10.9 % 11.3 % 11.8 % 12.4 % 13.0 %