FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today
reported third quarter 2018 net income of $43.5 million, or $0.89
per share on a fully diluted basis, and adjusted net income of
$47.3 million, or $0.97 per share on a fully diluted basis. Net
income rose 35% year-over-year and pre-tax income increased by 23%
to $56.9 million. Adjusted net income rose 38% year-over-year and
adjusted net income per diluted share rose 31%. This resulted in a
ROA of 142 basis points and an adjusted ROA of 155 basis
points.
- Fully tax equivalent net revenue of
$102.6 million;
- Reported and Adjusted EPS of $0.89 and
$0.97 per share, respectively, on a fully diluted basis;
- New loan portfolio grew sequentially at
an annualized rate of 20%;
- New loan fundings of $491.0 million
during the quarter;
- Deposits grew sequentially at an
annualized rate of 12%;
- Reported and Adjusted Efficiency ratio
of 41.4% and 37.3%, respectively;
- Reported and Adjusted ROA of 142 and
155 basis points, respectively; and
- Tangible book value per share was
$26.29.
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 third quarter of 2018 primarily relate to merger related
expenses associated with the pending merger with Synovus Financial
Corp (“Synovus”). Non-operating adjustments include $3 million of
transaction related expenses for our pending merger, $332 thousand
of data processing and $292 thousand of other operating expense, as
well as $184 thousand loss 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 third quarter of 2018
marks 23 consecutive quarters of improving core operating results.
We are once again pleased with our results this quarter as we
continued our organic momentum with over $400 million of loan
growth and nearly $300 million of deposit growth. 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 $395.2 million to $9.3 billion
as of September 30, 2018, an increase of 4.4% from $8.9 billion as
of June 30, 2018, and 24% from $7.5 billion as of September 30,
2017.
The Bank’s new loan portfolio totaled $8.6 billion as of
September 30, 2018, an increase of 5% from $8.2 billion as of June
30, 2018 and 20% from $7.2 billion as of September 30, 2017. Loan
growth during the quarter was a result of $491.0 million of organic
new loan fundings, consisting of $240.5 million of commercial and
industrial, $204.3 million of commercial real estate and $46.2
million of residential and consumer. As of quarter end, the total
syndicated portfolio continues to represent only 3% of total loans.
As of September 30, 2018, new loans made up 93% of the total loan
portfolio as compared to 92% and 96% as of June 30, 2018 and
September 30, 2017, respectively.
The Bank’s acquired loan portfolio totaled $687.4 million as of
September 30, 2018, a decrease of 2% from $702.4 million as of June
30, 2018 and an increase of 106% from $333.7 million as of
September 30, 2017. The increase as compared to 2017 was driven by
the acquisition of Floridian Community Bank in March 2018. As of
September 30, 2018, acquired loans made up 7% of our total loan
portfolio as compared to 8% and 4% as of June 30, 2018 and
September 30, 2017, respectively.
Asset Quality
The provision for loan losses of $2.2 million recorded for the
third quarter of 2018 includes a $2.3 million provision for new
loans and a recoupment of valuation allowance of $56 thousand for
the acquired loan portfolio. The provision for new loans served to
increase the related allowance to $50.1 million, or 0.58% of the
$8.6 billion in new loans outstanding. The nonperforming new loan
ratio as of September 30, 2018 was 0.09%.
Deposits and Borrowings
Deposits totaled $10.2 billion as of September 30, 2018, an
increase of 3% from $9.9 billion as of June 30, 2018 and an
increase of 25% from $8.1 billion as of September 30, 2017. Demand
deposits represent 27% of total deposits as of September 30, 2018
as compared to 31% as of June 30, 2018 and September 30, 2017,
respectively. The cost of deposits was 136 basis points for the
quarter, representing a 15 basis point increase from the second
quarter of 2018 and a 48 basis point increase from the third
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, June and September 2018.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2018 was 3.18%,
a decrease of 7 basis points from the second quarter of 2018 and an
increase of one basis point from the third quarter of 2017. The
decrease from the second quarter of 2018 was primarily due to the
14 basis point increase in cost of interest-bearing liabilities and
33 basis point decrease in yield on acquired loans partially offset
by the 9 basis point increase in yield on new loans.
Net interest income totaled $92.6 million in the third quarter
of 2018, an increase of 2% from $90.8 million in the second quarter
of 2018 and an increase of 22% from $75.8 million in the third
quarter of 2017. Interest income totaled $129.0 million for the
third quarter of 2018, an increase of 5% from $122.6 million in the
second quarter of 2018 and an increase of 33% from $96.8 million in
the third quarter of 2017. Interest income from new loans increased
by $6.3 million, or 7%, from the second quarter of 2018 due to
yield expansion and continued growth in the new loan portfolio.
Interest income on acquired loans decreased by $880 thousand, or
8%, from the second quarter due to attrition of the acquired loan
portfolio. Interest expense was $36.4 million for the third quarter
of 2018, an increase of 15% from $31.7 million in the second
quarter of 2018 and an increase of 73% from $21.0 million in the
third quarter of 2017. The increase from the second quarter of 2018
was a result of a 14 basis point increase on cost of
interest-bearing liabilities associated with increased time deposit
duration as well as the impact of the June and September 2018
Federal Reserve rate hikes on deposit costs.
Noninterest Income and Noninterest Expense
Noninterest income totaled $8.8 million for the third quarter of
2018 as compared to $8.0 million for the second quarter of 2018 and
$8.4 million for the third quarter of 2017. The primary components
of noninterest income for the quarter were loan and other fees,
bank-owned life insurance income and service charges and fee income
of $5.0 million, $1.4 million and $1.3 million, respectively.
Noninterest expense totaled $42.3 million for the third quarter
of 2018, an increase of 3% from $40.9 million in the second quarter
of 2018 and an increase of 20% from $35.2 million in the third
quarter of 2017. Non-operating adjustments for the third quarter of
2018 primarily relate to merger related expenses associated with
the pending acquisition by Synovus and the acquisition of Floridian
Community that was completed on March 1, 2018. Non-operating
adjustments include $3 million of transaction related expenses for
our pending merger, $332 thousand of data processing and $292
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%, 10.4% and
12.2% for the third quarter of 2018 respectively, compared to 9.9%,
10.3% and 12.1% for the second quarter of 2018, respectively.
Stockholders’ equity totaled $1.38 billion as of September 30,
2018, an increase of 3% from $1.34 billion as of June 30, 2018 due
to net income of $43.5 million and an increase of $2.9 million of
additional paid-in capital partially offset by an increase in
accumulated other comprehensive loss of $5.8 million. The Company
did not repurchase common stock during the quarter. Tangible book
value per common share is $26.29 as of September 30, 2018.
Conference Call
Considering the pending merger with Synovus, the Company will
not be hosting a conference call to discuss earnings.
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 Synovus. 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 respective businesses, customers,
borrowings, repayment, investment, and deposit practices; general
economic conditions, either nationally or in the market areas in
which FCB operates or anticipates 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 filed 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 51 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
September 30, June 30, March 31, December
31, September 30, 2018 2018 2018
2017 2017 (Dollars in thousands, except share and
per share data) Interest income: Interest and
fees on loans $ 104,137 $ 98,749 $ 87,466 $ 80,830 $ 76,465
Interest and dividends on investment securities 24,425 23,443
20,854 20,479 20,215 Other interest income 448
367 237 181 136 Total
interest income 129,010 122,559 108,557
101,490 96,816
Interest
expense: Interest on deposits 33,300 28,448 23,649 19,789
17,134 Interest on borrowings 3,072 3,292
2,725 3,587 3,901 Total
interest expense 36,372 31,740 26,374
23,376 21,035
Net interest
income 92,638 90,819 82,183 78,114 75,781
Provision for loan
losses 2,220 1,505 2,076
2,786 2,871
Net interest income
after provision for loan losses 90,418
89,314 80,107 75,328 72,910
Noninterest income: Service charges and fees 1,266
1,183 1,054 978 941 Loan and other fees 5,043 3,318 4,900 3,041
2,831 Bank-owned life insurance income 1,439 1,422 1,367 1,397
1,422 Income from resolution of acquired assets 202 327 74 425 466
Gain (loss) on sales of other real estate owned (70 ) 8 105 (55 )
(143 ) Gain (loss) on investment securities (184 ) 116 (1,404 ) 211
690 Other noninterest income 1,068 1,580
1,127 1,734 2,218 Total
noninterest income 8,764 7,954 7,223
7,731 8,425
Noninterest
expense: Salaries and employee benefits 23,023 23,732 21,945
21,987 20,860 Occupancy and equipment expenses 4,012 4,302 3,558
3,447 3,283 Loan and other real estate related expenses 545 1,294
1,111 371 837 Professional services 3,929 1,141 2,265 1,690 1,390
Data processing and network 3,911 4,017 3,566 3,113 3,397
Regulatory assessments and insurance 2,564 2,196 2,497 2,280 2,330
Amortization of intangibles 371 370 294 255 256 Other operating
expenses 3,973 3,874 3,925
2,976 2,886 Total noninterest expense
42,328 40,926 39,161
36,119 35,239
Income before income tax
expense 56,854 56,342 48,169 46,940 46,096 Income tax expense
13,374 13,608 8,070
27,976 13,936
Net income $ 43,480
$ 42,734 $ 40,099 $ 18,964 $ 32,160
Earnings per share: Basic $ 0.93 $ 0.92 $ 0.89
$ 0.43 $ 0.74
Diluted $ 0.89 $ 0.87 $ 0.84 $ 0.41 $ 0.70
Weighted average shares outstanding: Basic
46,693,707 46,660,992 45,239,988 43,797,291 43,333,947
Diluted 48,804,871 48,979,864 47,579,309 46,565,439
46,189,468
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
September 30, June 30,
March 31, December 31, September 30,
2018 2018 2018 2017 2017
(Dollars in thousands) Assets: Cash and due
from banks $ 76,633 $ 93,226 $ 63,640 $ 60,787 $ 62,695
Interest-earning deposits in other banks 123,876 195,050 85,385
55,134 49,732 Investment securities: Available for sale securities,
at fair value 2,346,718 2,409,326 2,269,046 2,120,803 2,102,711
Federal Home Loan Bank and other bank stock, at cost 65,847
66,414 58,184 56,881
61,838 Total investment securities
2,412,565 2,475,740 2,327,230
2,177,684 2,164,549 Loans held for sale
980 2,323 4,167 12,736 13,503 Loans: New loans 8,629,402 8,219,145
7,976,251 7,661,385 7,164,480 Acquired loans 687,406 702,428
728,141 316,399 333,725 Allowance for loan losses (53,148 )
(50,570 ) (49,213 ) (47,145 ) (44,291 )
Loans, net 9,263,660 8,871,003
8,655,179 7,930,639 7,453,914
Premises and equipment, net 42,645 42,075 39,424 36,144 35,741
Other real estate owned 10,534 11,159 14,072 14,906 17,599 Goodwill
and other intangible assets 146,742 147,113 147,738 84,872 85,127
Deferred tax assets, net 40,743 38,914 34,933 27,043 51,521
Bank-owned life insurance 215,421 213,982 212,925 201,069 199,672
Other assets 99,557 101,714
77,420 76,065 95,279
Total
assets $ 12,433,356 $
12,192,299 $ 11,662,113 $
10,677,079 $ 10,229,332
Liabilities and Stockholders' Equity Liabilities:
Deposits: Transaction accounts: Noninterest-bearing $ 1,577,741 $
1,530,718 $ 1,478,837 $ 1,236,685 $ 1,242,562 Interest-bearing
4,225,178 4,642,679 4,770,265
4,830,525 4,486,085 Total
transaction accounts 5,802,919 6,173,397 6,249,102 6,067,210
5,728,647 Time deposits 4,353,196 3,684,788
3,237,174 2,606,717
2,377,446 Total deposits 10,156,115 9,858,185 9,486,276
8,673,927 8,106,093 Borrowings 825,558 860,377 753,921 749,113
874,222 Other liabilities 74,197 136,806
117,774 74,867 92,944
Total liabilities 11,055,870 10,855,368
10,357,971 9,497,907
9,073,259
Stockholders' Equity: Class A common stock
50 49 49 47 46 Additional paid-in capital 1,040,358 1,037,437
1,034,687 933,960 924,462 Retained earnings 439,233 395,752 353,019
313,645 294,681 Accumulated other comprehensive income (loss)
(24,782 ) (18,934 ) (6,240 ) 8,893 14,257 Treasury stock, at cost
(77,373 ) (77,373 ) (77,373 ) (77,373 )
(77,373 ) Total stockholders' equity 1,377,486
1,336,931 1,304,142 1,179,172
1,156,073
Total liabilities and
stockholders' equity $ 12,433,356 $
12,192,299 $ 11,662,113 $
10,677,079 $ 10,229,332 FCB
FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES Key Metrics
(Unaudited) Three Months Ended September
30, June 30, March 31,
December 31, September 30, 2018 2018
2018 2017 2017 Performance Ratios:
Interest rate spread 2.81 % 2.90 % 2.87 % 2.85 % 2.90 % Net
interest margin 3.18 % 3.25 % 3.18 % 3.13 % 3.17 % Return on
average assets 1.42 % 1.46 % 1.48 % 0.72 % 1.28 % Return on average
equity 12.71 % 12.98 % 13.24 % 6.41 % 11.21 % Efficiency ratio
(company level) 41.38 % 41.06 % 43.47 % 41.78 % 41.54 % Average
interest-earning assets to average interest-bearing liabilities
125.66 % 125.24 % 124.25 % 125.00 % 124.57 % Loans receivable to
deposits 91.74 % 90.50 % 91.76 % 91.97 % 92.50 % Yield on
interest-earning assets 4.37 % 4.32 % 4.14 % 4.02 % 3.99 % Cost of
interest-bearing liabilities 1.56 % 1.42 % 1.27 % 1.17 % 1.09 %
Asset and Credit Quality Ratios - Total loans: Nonperforming
loans to loans receivable 0.24 % 0.21 % 0.19 % 0.21 % 0.28 %
Nonperforming assets to total assets 0.27 % 0.24 % 0.26 % 0.29 %
0.38 % ALL to nonperforming assets 161.20 % 169.85 % 161.18 %
150.41 % 114.60 % ALL to total gross loans 0.57 % 0.57 % 0.57 %
0.59 % 0.59 %
Asset and Credit Quality Ratios - New Loans:
Nonperforming new loans to new loans receivable 0.09 % 0.06 % 0.04
% 0.04 % 0.05 % New loan ALL to total gross new loans 0.58 % 0.58 %
0.58 % 0.58 % 0.57 %
Asset and Credit Quality Ratios - Acquired
Loans: Nonperforming acquired loans to acquired loans
receivable 2.20 % 1.99 % 1.83 % 4.15 % 5.23 % Acquired loan ALL to
total gross acquired loans 0.44 % 0.39 % 0.42 % 0.95 % 1.01 %
Capital Ratios (Company): Average equity to average total
assets 11.2 % 11.2 % 11.2 % 11.3 % 11.4 % Tangible average equity
to tangible average assets (1) 10.1 % 10.1 % 10.3 % 10.6 % 10.6 %
Tangible common equity ratio (1) 10.0 % 9.9 % 10.0 % 10.3 % 10.6 %
Tier 1 leverage ratio 10.4 % 10.3 % 10.7 % 10.5 % 10.6 % Tier 1
risk-based capital ratio 11.7 % 11.6 % 11.6 % 11.9 % 12.2 % Total
risk-based capital ratio 12.2 % 12.1 % 12.2 % 12.4 % 12.7 %
Capital Ratios (Bank): Average equity to average total
assets 10.2 % 10.0 % 10.0 % 10.1 % 10.2 % Tangible common equity
ratio 9.1 % 9.0 % 9.1 % 9.0 % 9.3 % Tier 1 leverage ratio 9.5 % 9.4
% 9.7 % 9.2 % 9.4 % Tier 1 risk-based capital ratio 10.7 % 10.6 %
10.5 % 10.4 % 10.8 % Total risk-based capital ratio 11.2 % 11.1 %
11.1 % 11.0 % 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
September 30, June 30, March 31, December
31, September 30, 2018 2018
2018 2017 2017
(Dollars in thousands) New Loans: Commercial real
estate $ 2,528,748 $ 2,361,475 $ 2,168,606 $ 2,103,788 $ 1,934,246
Owner-occupied commercial real estate 1,134,793 1,119,816 1,074,076
987,781 933,439 1-4 single family residential 2,245,139 2,226,835
2,232,791 2,185,362 2,126,006 Construction, land and development
754,972 708,497 732,551 684,462 682,354 Home equity loans and lines
of credit 59,729 60,888 61,856 59,636
52,945 Total real estate loans $ 6,723,381 $ 6,477,511 $
6,269,880 $ 6,021,029 $ 5,728,990 Commercial and industrial
1,902,045 1,737,485 1,701,651 1,634,372 1,431,445 Consumer
3,976 4,149 4,720 5,984 4,045 Total new
loans $ 8,629,402 $ 8,219,145 $ 7,976,251 $ 7,661,385 $ 7,164,480
Acquired ASC 310-30 Loans: Commercial real estate $
133,778 $ 137,591 $ 138,853 $ 104,335 $ 111,416 1-4 single family
residential 32,240 33,532 35,264 27,513 28,044 Construction, land
and development 28,590 29,860 31,188 13,167 13,791 Home equity
loans and lines of credit - - 202 -
- Total real estate loans $ 194,608 $ 200,983 $ 205,507 $
145,015 $ 153,251 Commercial and industrial 19,503 19,972 22,434
12,631 13,145 Consumer 1,259 1,289 1,373
1,423 1,447 Total acquired ASC 310-30 loans $ 215,370
$ 222,244 $ 229,314 $ 159,069 $ 167,843
Acquired Non-ASC
310-30 Loans: Commercial real estate $ 104,364 $ 106,523 $
111,294 $ 37,736 $ 37,896 Owner-occupied commercial real estate
81,408 79,203 82,534 16,100 18,097 1-4 single family residential
148,659 155,792 164,188 57,695 60,374 Construction, land and
development 36,881 33,121 32,413 5,889 5,890 Home equity loans and
lines of credit 40,131 42,000 42,435
34,589 38,007 Total real estate loans $ 411,443 $ 416,639 $
432,864 $ 152,009 $ 160,264 Commercial and industrial 46,643 47,307
47,760 5,062 5,284 Consumer 13,950 16,238
18,203 259 334 Total Acquired Non-ASC 310-30 Loans
472,036 480,184 498,827 157,330
165,882 Total loans $ 9,316,808 $ 8,921,573 $ 8,704,392 $ 7,977,784
$ 7,498,205
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition (Unaudited)
As of September 30, June
30, March 31, December 31, September 30,
2018 2018 2018 2017 2017
(Dollars in thousands) Noninterest-bearing demand
deposits $ 1,577,741 $ 1,530,718 $ 1,478,837 $ 1,236,685 $
1,242,562 Interest-bearing demand deposits 1,207,859 1,498,421
1,375,820 1,454,097 1,232,116 Interest-bearing NOW accounts 410,226
440,896 474,737 363,191 368,796 Savings and money market accounts
2,607,093 2,703,362 2,919,708 3,013,237 2,885,173 Time deposits
4,353,196 3,684,788 3,237,174 2,606,717
2,377,446 Total deposits $ 10,156,115 $ 9,858,185 $
9,486,276 $ 8,673,927 $ 8,106,093
FCB FINANCIAL HOLDINGS, INC.
AND SUBSIDIARIES Quarterly Average Balances and Yields
(Unaudited)
Three Months Ended Three Months Ended September
30, June 30, 2018 2018
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 $ 92,937 $ 448
1.91 % $ 76,323 $ 367 1.93 % New loans (4) 8,344,858 93,862 4.40 %
8,036,916 87,594 4.31 % Acquired loans (4)(5) 691,785 10,275 5.94 %
711,663 11,155 6.27 % Investment securities 2,438,498
24,425 3.92 % 2,396,679 23,443 3.87 % Total
interest-earning assets 11,568,078 129,010 4.37 %
11,221,581 122,559 4.32 % Non-earning assets:
Noninterest-earning assets 552,311 539,358 Total
assets $ 12,120,389 $ 11,760,939 Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,290,691 $ 4,093 1.26 % $
1,356,018 $ 4,107 1.21 % Interest-bearing NOW accounts 419,712
1,252 1.18 % 474,313 1,253 1.06 % Savings and money market accounts
2,636,801 9,249 1.39 % 2,761,374 8,647 1.26 % Time deposits (6)
3,895,326 18,706 1.91 % 3,425,429 14,441 1.69 % FHLB advances and
other borrowings (6) 963,607 3,072 1.25 %
943,033 3,292 1.38 % Total interest-bearing liabilities $
9,206,137 $ 36,372 1.56 % $ 8,960,167 $ 31,740 1.42 %
Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing demand deposits $ 1,482,827 $ 1,415,899 Other
liabilities 74,606 64,627 Stockholders' equity 1,356,819
1,320,246 Total liabilities and stockholders' equity $
12,120,389 $ 11,760,939 Net interest income $ 92,638
$ 90,819 Net interest spread 2.81 % 2.90 % Net
interest margin 3.18 % 3.25 % (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 September 30, 2018 2017
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 $ 92,937 $ 448 1.91 % $
39,646 $ 136 1.36 % New loans (4) 8,344,858 93,862 4.40 % 6,982,158
69,709 3.91 % Acquired loans (4)(5) 691,785 10,275 5.94 % 341,056
6,756 7.92 % Investment securities 2,438,498 24,425
3.92 % 2,134,162 20,215 3.71 % Total interest-earning
assets 11,568,078 129,010 4.37 % 9,497,022
96,816 3.99 % Non-earning assets: Noninterest-earning assets
552,311 473,981 Total assets $ 12,120,389 $ 9,971,003
Interest-bearing liabilities: Interest-bearing demand deposits $
1,290,691 $ 4,093 1.26 % $ 1,147,669 $ 2,694 0.93 %
Interest-bearing NOW accounts 419,712 1,252 1.18 % 398,322 763 0.76
% Savings and money market accounts 2,636,801 9,249 1.39 %
2,885,716 6,901 0.95 % Time deposits (6) 3,895,326 18,706 1.91 %
2,161,905 6,776 1.24 % FHLB advances and other borrowings (6)
963,607 3,072 1.25 % 1,030,437 3,901
1.48 % Total interest-bearing liabilities $ 9,206,137 $ 36,372 1.56
% $ 7,624,049 $ 21,035 1.09 % Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing demand deposits $ 1,482,827 $ 1,149,981 Other
liabilities 74,606 59,139 Stockholders' equity 1,356,819
1,137,834 Total liabilities and stockholders' equity $
12,120,389 $ 9,971,003 Net interest income $ 92,638
$ 75,781 Net interest spread 2.81 % 2.90 % Net
interest margin 3.18 % 3.17 % (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)
Nine months ended September 30,
2018 2017 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 $
76,772 $ 1,052 1.83 % $ 41,592 $ 344 1.11 % New loans (4) 8,047,963
261,799 4.29 % 6,675,685 192,975 3.81 % Acquired loans (4)(5)
620,564 28,553 6.13 % 354,928 21,595 8.11 % Investment securities
2,347,762 68,722 3.86 % 2,048,977
57,697 3.71 % Total interest-earning assets 11,093,061
360,126 4.28 % 9,121,182 272,611 3.95 %
Non-earning assets: Noninterest-earning assets 525,758
471,602 Total assets $ 11,618,819 $ 9,592,784
Interest-bearing liabilities: Interest-bearing demand deposits $
1,352,846 $ 12,041 1.19 % $ 1,078,718 $ 6,694 0.83 %
Interest-bearing NOW accounts 446,679 3,483 1.04 % 407,504 1,874
0.61 % Savings and money market accounts 2,796,710 26,264 1.26 %
2,916,855 18,874 0.87 % Time deposits (6) 3,385,615 43,609 1.72 %
2,106,550 18,835 1.20 % FHLB advances and other borrowings (6)
887,321 9,089 1.35 % 900,523 8,996 1.32
% Total interest-bearing liabilities $ 8,869,171 $ 94,486 1.42 % $
7,410,150 $ 55,273 1.00 % Noninterest-bearing liabilities and
shareholders' equity:
Noninterest-bearing demand deposits $ 1,384,722 $ 1,056,011 Other
liabilities 62,634 46,430 Stockholders' equity 1,302,292
1,080,193 Total liabilities and stockholders' equity $
11,618,819 $ 9,592,784 Net interest income $ 265,640
$ 217,338 Net interest spread 2.86 % 2.95 % Net
interest margin 3.20 % 3.19 % (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 Reconciliation of Non-GAAP Financial
Measures - Adjusted Net Income (Unaudited)
Three Months Ended September 30,
June 30, March 31, December 31, September
30, 2018 2018 2018 2017 2017
(Dollars in thousands) Net Income $
43,480 $ 42,734 $
40,099 $ 18,964 $
32,160 Pre-tax Adjustments: Noninterest
income: Less: Gain (loss) on investment securities (184 ) 116
(1,404 ) 211 690
Noninterest expense: Salaries and employee
benefits 36 2,031 826 115 51 Occupancy and equipment - 436 3 - -
Loan and other real estate related expenses - - - - - Professional
services 3,000 9 911 148 - Data processing and network fees 332 4
539 - - Regulatory assessments and insurance - - - - - Amortization
of intangibles - - - - - Other operating expenses 292 207 277 65
125
Taxes: Tax Effect of adjustments (1) 19
646 (3,398 )
16,212 2,541
Adjusted Net Income
$ 47,343 $ 45,951
$ 40,661 $ 35,293
$ 34,187 Average assets $
12,120,389 $ 11,760,939 $ 10,962,404 $ 10,382,043 $ 9,971,003 ROA
(2) 1.42 % 1.46 % 1.48 % 0.72 % 1.28 % Adjusted ROA (3) 1.55 % 1.57
% 1.50 % 1.35 % 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 September 30, June 30, March 31,
December 31, September 30, 2018 2018
2018 2017 2017 (Dollars in thousands)
Reported: Net interest income $ 92,638 $ 90,819 $ 82,183 $
78,114 $ 75,781 FTE adjustment 554 543
479 1,245 1,357
Adjusted net interest income $ 93,192
$ 91,362 $ 82,662
$ 79,359 $ 77,138
Reported: Noninterest income $ 8,764 $ 7,954 $ 7,223 $ 7,731 $
8,425 FTE adjustment 480 474 456 879 894 Less: Gain (loss) on
investment securities (184 ) 116 (1,404
) 211 690 Adjusted noninterest income
$ 9,428 $ 8,312 $
9,083 $ 8,399 $
8,629 Reported: Noninterest expense $ 42,328 $ 40,926
$ 39,161 $ 36,119 $ 35,239 Less: Salaries and employee benefits 36
2,031 826 115 51 Occupancy and equipment - 436 3 - - Loan and other
real estate related expenses - - - - - Professional services 3,000
9 911 148 - Data processing and network fees 332 4 539 - -
Regulatory assessments and insurance - - - - - Amortization of
intangibles - - - - - Other operating expenses 292
207 277 65 125
Adjusted noninterest expense
$ 38,668
$ 38,239 $ 36,605
$ 35,791 $ 35,063
Efficiency ratio (1) 41.38 % 41.06
% 43.47 % 41.78 % 41.54
% Adjusted efficiency ratio (2) 37.32 %
37.99 % 39.58 % 40.49 %
40.58 % (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)
September 30, June 30, March
31, December 31, September 30, 2018
2018 2018 2017 2017 (Dollars in
thousands, except share and per share data) Total assets
$ 12,433,356 $ 12,192,299 $ 11,662,113 $ 10,677,079 $ 10,229,332
Less: Goodwill and other intangible assets 146,742 147,113 147,738
84,872 85,127 Tangible assets $ 12,286,614 $ 12,045,186 $
11,514,375 $ 10,592,207 $ 10,144,205 Total stockholders' equity $
1,377,486 $ 1,336,931 $ 1,304,142 $ 1,179,172 $ 1,156,073 Less:
Goodwill and other intangible assets 146,742 147,113 147,738 84,872
85,127 Tangible stockholders' equity $ 1,230,744 $ 1,189,818 $
1,156,404 $ 1,094,300 $ 1,070,946 Shares outstanding 46,809,305
46,765,902 46,620,627 44,380,580 43,728,302 Tangible book value per
share $ 26.29 $ 25.44 $ 24.80 $ 24.66 $ 24.49 Average assets $
12,120,389 $ 11,760,939 $ 10,962,404 $ 10,382,043 $ 9,971,003
Average equity 1,356,819 1,320,246 1,228,400 1,173,488 1,137,834
Average goodwill and other intangible assets 146,934 147,525
105,988 84,996 85,257 Tangible average equity to tangible average
assets 10.1% 10.1% 10.3% 10.6% 10.6% Tangible common equity ratio
10.0% 9.9% 10.0% 10.3% 10.6%
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version on businesswire.com: https://www.businesswire.com/news/home/20181023005129/en/
FCB Financial Holdings, Inc.Matthew Paluch,
305-668-5420IR@fcb1923.com
FCB FINANCIAL HOLDINGS, INC. (NYSE:FCB)
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