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FCB Financial Holdings, Inc. Surpasses $10 Billion in Assets and Reports Third Quarter 2017 Financial Results

WESTON, Fla.--(BUSINESS WIRE)-- FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported third quarter 2017 net income of $32.2 million, or $0.70 per share on a fully diluted basis, and adjusted net income of $34.2 million, or $0.74 per share on a fully diluted basis. Net income rose 23% year-over-year and net income per diluted share rose 15%. Adjusted net income rose 35% year-over-year and adjusted net income per diluted share rose 26%. This resulted in a ROA of 128 basis points and an adjusted ROA of 136 basis points.

  • Fully tax equivalent net revenue of $86.5 million;
  • Reported and Adjusted EPS of $0.70 and $0.74 per share, respectively, on a fully diluted basis;
  • New loan portfolio grew sequentially at an annualized rate of 19% when excluding the impact of mortgage sales;
  • New loan fundings of $484.8 million during the quarter and mortgage portfolio sales of $68.4 million;
  • Demand deposits grew by $221.5 million, or 39% annualized, during the quarter;
  • Reported and Adjusted Efficiency ratio of 41.5% and 40.6%, respectively;
  • Reported and Adjusted ROA of 128 and 136 basis points, respectively; and
  • Tangible book value per share was $24.49.

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 2017 include $51 thousand of stay bonus and severance expense, $125 thousand of other operating expense, including $115 thousand of Hurricane Irma related expenses, and $690 thousand gain on sale of investment securities. Additionally, the Company expects its 2017 annual GAAP tax rate to be between 20-25% due to the accounting impact of option and warrant exercises in concordance with ASU 2016-09 which was effective January 1, 2017.

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 was a milestone quarter for FCB, as we surpassed $10 billion in assets, executed a best in class hurricane response effort and continued our organic momentum with over $410 million of deposit growth and over $480 million of organic loan fundings. Our organic growth and community centric approach continues to differentiate us in the market as we solidify our position 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 $246.8 million to $7.5 billion as of September 30, 2017, an increase of 3% from $7.3 billion as of June 30, 2017, and 20% from $6.3 billion as of September 30, 2016.

The Bank’s new loan portfolio totaled $7.2 billion as of September 30, 2017, an increase of 4% from $6.9 billion as of June 30, 2017 and 23% from $5.8 billion as of September 30, 2016. Loan growth during the quarter was a result of $484.8 million of organic new loan fundings, consisting of $260.9 million of commercial and industrial, $115.5 million of commercial real estate and $108.4 million of residential and consumer. Additionally, during the quarter the Company sold $68.4 million of residential loans. As of September 30, 2017, new loans made up 96% of the total loan portfolio as compared to 95% and 93% as of June 30, 2017 and September 30, 2016, respectively.

The Bank’s acquired loan portfolio totaled $333.7 million as of September 30, 2017, a decrease of 5% from $351.0 million as of June 30, 2017 and a decrease of 23% from $431.7 million as of September 30, 2016. The decrease in the current quarter was driven by the resolution of $6.0 million of loans as well as scheduled loan amortization. As of September 30, 2017, acquired loans made up 4% of our total loan portfolio as compared to 5% and 7% as of June 30, 2017 and September 30, 2016, respectively.

Asset Quality

The provision for loan losses of $2.9 million recorded for the third quarter of 2017 includes a $3.3 million provision for new loans and net recoupment of valuation allowance of $0.4 million for the acquired loan portfolio. The provision for new loans includes an unallocated reserve of $1.5 million related to uncertainty surrounding potential credit and borrower recovery impact due to Hurricane Irma. The provision for new loans served to increase the related allowance to $40.9 million, or 0.57% of the $7.2 billion in new loans outstanding. The nonperforming new loan ratio as of September 30, 2017 was 0.05%.

Deposits and Borrowings

Deposits totaled $8.1 billion as of September 30, 2017, an increase of 5% from $7.7 billion as of June 30, 2017 and an increase of 17% from $6.9 billion as of September 30, 2016. During the third quarter of 2017, demand deposits increased by $221.5 million, or 10%, from June 30, 2017 and increased by $738.1 million, or 43%, from September 30, 2016. Demand deposits represent 31% of total deposits as of September 30, 2017 as compared to 29% and 25% as of June 30, 2017 and September 30, 2016, respectively. The cost of deposits was 88 basis points for the quarter, representing a 6 basis points increase from the second quarter of 2017 and a 17 basis point increase from the third quarter of 2016. The primary driver of the increase over the periods is attributable to the Federal Reserve rate hikes in December 2016, March 2017 and June 2017.

Net Interest Margin and Net Interest Income

The net interest margin for the third quarter of 2017 was 3.17%, an increase of one basis point from the second quarter of 2017 and a decrease of 27 basis points from the third quarter of 2016. The increase from the second quarter of 2017 was due primarily to the 9 basis point increase in new loan yields.

Net interest income totaled $75.8 million in the third quarter of 2017, an increase of 5% from $71.9 million in the second quarter of 2017 and an increase of 13% from $67.3 million in the third quarter of 2016. Interest income totaled $96.8 million for the third quarter of 2017, an increase of 7% from $90.6 million in the second quarter of 2017 and an increase of 20% from $80.8 million in the third quarter of 2016. Interest income from new loans increased by $5.1 million, or 8%, from the second quarter of 2017 due to yield expansion and continued growth in the new loan portfolio. Interest income on acquired loans decreased by $0.2 million, or 3%, from the second quarter due to balance runoff and a reduction in loan resolutions. Interest expense was $21.0 million for the third quarter of 2017, an increase of 13% from $18.7 million in the second quarter of 2017 and an increase of 56% from $13.5 million in the third quarter of 2016. The increase from the second quarter of 2017 was a result of an 8 basis point increase on cost of interest-bearing liabilities associated with increased time deposit duration as well as the impact of the March 2017 and June 2017 Federal Reserve rate hikes on deposit costs.

Noninterest Income and Noninterest Expense

Noninterest income totaled $8.4 million for the third quarter of 2017 as compared to $8.9 million for the second quarter of 2017 and $8.1 million for the third quarter of 2016. The primary components of noninterest income for the quarter were loan and other fees, bank-owned life insurance income and other noninterest income of $2.8 million, $1.4 million and $2.2 million, respectively.

Noninterest expense totaled $35.2 million for the third quarter of 2017, in line with $35.3 million in the second quarter of 2017 and an increase of 7% from $33.0 million in the third quarter of 2016. For the quarter, the Company recorded non-operating expenses of $176 thousand consisting of $51 thousand of stay bonus and severance expense and $125 thousand of other operating expense, including $115 thousand of Hurricane Irma related expenses.

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 10.6%, 10.6% and 12.7% for the third quarter of 2017 respectively, compared to 10.5%, 10.6% and 12.9% for the second quarter of 2017, respectively. Stockholders’ equity totaled $1.16 billion as of September 30, 2017, an increase of 3.5% from $1.12 billion as of June 30, 2017 due to net income of $32.2 million and $8.1 million of additional paid-in capital partially offset by a decrease in accumulated other comprehensive income of $1.5 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $24.49 as of September 30, 2017.

Conference Call

The Company will host a conference call today, Tuesday, October 24, 2017 at 5:00 p.m. Eastern Time. Presentation materials related to the conference call are available on the Company's website, www.floridacommunitybank.com, by navigating to Investor Relations.

The number to call for this interactive teleconference is (855) 238-8125, and please ask to join the FCB Financial Holdings, Inc. or FCB teleconference. Please dial in 10 minutes prior to the beginning of the call.

A telephonic replay of the conference call will be available through November 24, 2017, by dialing (877) 344-7529 and entering pass code 10112299.

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

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. Awarded a five-star rating from Bauer Financial™, FCB assets are more than $10 billion, with capital ratios that exceed regulatory standards. Since its founding in 2010, FCB has been steadfast in its commitment to delivering personalized service, innovation, and products and services equal to those offered by the national banks. Similarly, FCB recognizes the importance of community, fostering a corporate culture that promotes employee volunteerism at all levels, while supporting community-based programs and partnerships that help promote greater financial independence and improved quality of life for families. FCB serves individuals, businesses and communities across the state with 46 full-service banking centers from east to west, and from Daytona Beach to Miami-Dade. For more information, visit FloridaCommunityBank.com., Equal Housing Lender, Member FDIC.

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Income
(Unaudited)
Three Months Ended

September 30,
2017

June 30,
2017

March 31,
2017

December 31,
2016

September 30,
2016

(Dollars in thousands, except share and per share data)
Interest income:
Interest and fees on loans $ 76,465 $ 71,516 $ 66,589 $ 68,583 $ 65,748
Interest and dividends on investment securities 20,215 18,921 18,561 16,907 14,955
Other interest income 136 136 72 90 97
Total interest income 96,816 90,573 85,222 85,580 80,800
Interest expense:
Interest on deposits 17,134 15,625 13,518 12,960 11,736
Interest on borrowings 3,901 3,061 2,034 1,554 1,786
Total interest expense 21,035 18,686 15,552 14,514 13,522
Net interest income 75,781 71,887 69,670 71,066 67,278
Provision for loan losses 2,871 2,115 1,643 2,249 1,990
Net interest income after provision for loan losses 72,910 69,772 68,027 68,817 65,288
Noninterest income:
Service charges and fees 941 902 915 935 884
Loan and other fees 2,831 3,048 2,495 2,488 2,145
Bank-owned life insurance income 1,422 1,414 1,414 1,333 1,288
Income from resolution of acquired assets 466 320 762 1,135 1,052
Gain (loss) on sales of other real estate owned (143 ) (23 ) 45 209 925
Gain on investment securities 690 255 777 800 749
Other noninterest income 2,218 2,957 3,579 1,019 1,099
Total noninterest income 8,425 8,873 9,987 7,919 8,142
Noninterest expense:
Salaries and employee benefits 20,860 21,486 20,497 19,261 18,711
Occupancy and equipment expenses 3,283 3,336 3,397 3,505 3,480
Loan and other real estate related expenses 837 1,188 1,227 1,467 1,834
Professional services 1,390 1,508 1,352 1,585 1,180
Data processing and network 3,397 3,090 2,965 2,920 2,882
Regulatory assessments and insurance 2,330 2,184 2,177 2,055 1,860
Amortization of intangibles 256 256 256 256 257
Other operating expenses 2,886 2,204 3,213 2,597 2,832
Total noninterest expense 35,239 35,252 35,084 33,646 33,036
Income before income tax expense 46,096 43,393 42,930 43,090 40,394
Income tax expense 13,936 8,312 3,941 15,194 14,330
Net income $ 32,160 $ 35,081 $ 38,989 $ 27,896 $ 26,064
Earnings per share:
Basic $ 0.74 $ 0.82 $ 0.93 $ 0.68 $ 0.64
Diluted $ 0.70 $ 0.76 $ 0.86 $ 0.64 $ 0.60
Weighted average shares outstanding:
Basic 43,333,947 42,659,101 41,730,610 40,911,326 40,608,706
Diluted 46,189,468 46,042,552 45,573,213 43,728,282 43,150,813
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)

September 30,
2017

June 30,
2017

March 31,
2017

December 31,
2016

September 30,
2016

(Dollars in thousands)
Assets:
Cash and due from banks $ 62,695 $ 62,578 $ 70,908 $ 52,903 $ 67,324
Interest-earning deposits in other banks 49,732 37,424 62,929 30,973 20,010
Investment securities:
Available for sale securities, at fair value 2,102,711 2,046,488 1,976,252 1,876,434 1,672,089
Federal Home Loan Bank and other bank stock, at cost 61,838 68,372 55,652 51,656 43,486
Total investment securities 2,164,549 2,114,860 2,031,904 1,928,090 1,715,575
Loans held for sale 13,503 24,145 21,251 20,220 15,748
Loans:
New loans 7,164,480 6,900,380 6,552,214 6,259,406 5,837,759
Acquired loans 333,725 351,021 366,156 375,488 431,734
Allowance for loan losses (44,291 ) (41,334 ) (39,431 ) (37,897 ) (35,785 )
Loans, net 7,453,914 7,210,067 6,878,939 6,596,997 6,233,708
Premises and equipment, net 35,741 36,111 36,278 36,652 38,112
Other real estate owned 17,599 18,540 18,761 19,228 25,654
Goodwill and other intangible assets 85,127 85,383 85,639 85,895 86,151
Deferred tax assets, net 51,521 50,612 56,178 61,391 59,081
Bank-owned life insurance 199,672 198,250 198,089 198,438 172,105
Other assets 95,279 63,422 72,346 59,347 97,684
Total assets $ 10,229,332 $ 9,901,392 $ 9,533,222 $ 9,090,134 $ 8,531,152
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing $ 1,242,562 $ 1,135,922 $ 1,069,745 $ 905,905 $ 830,910
Interest-bearing 4,486,085 4,489,554 4,571,833 4,183,972 3,794,215
Total transaction accounts 5,728,647 5,625,476 5,641,578 5,089,877 4,625,125
Time deposits 2,377,446 2,069,714 2,032,793 2,215,794 2,292,438
Total deposits 8,106,093 7,695,190 7,674,371 7,305,671 6,917,563
Borrowings 874,222 1,019,494 739,519 751,103 568,175
Other liabilities 92,944 69,430 64,085 50,919 79,329
Total liabilities 9,073,259 8,784,114 8,477,975 8,107,693 7,565,067
Stockholders' Equity:
Class A common stock 46 46 45 44 41
Class B common stock - - - - 3
Additional paid-in capital 924,462 916,360 898,394 875,314 866,673
Retained earnings 294,681 262,521 227,440 188,451 160,555
Accumulated other comprehensive income (loss) 14,257 15,724 6,741 (3,995 ) 16,186
Treasury stock, at cost (77,373 ) (77,373 ) (77,373 ) (77,373 ) (77,373 )
Total stockholders' equity 1,156,073 1,117,278 1,055,247 982,441 966,085
Total liabilities and stockholders' equity $ 10,229,332 $ 9,901,392 $ 9,533,222 $ 9,090,134 $ 8,531,152
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Key Metrics
(Unaudited)
Three Months Ended

September 30,
2017

June 30,
2017

March 31,
2017

December 31,
2016

September 30,
2016

Performance Ratios:
Interest rate spread 2.90 % 2.92 % 3.03 % 3.22 % 3.26 %
Net interest margin 3.17 % 3.16 % 3.24 % 3.41 % 3.44 %
Return on average assets 1.28 % 1.47 % 1.72 % 1.26 % 1.25 %
Return on average equity 11.21 % 12.95 % 15.58 % 11.36 % 10.96 %
Efficiency ratio (company level) 41.54 % 43.33 % 43.72 % 42.27 % 43.46 %
Average interest-earning assets to average interest-bearing liabilities 124.57 % 123.38 % 121.19 % 120.75 % 120.89 %
Loans receivable to deposits 92.50 % 94.23 % 90.15 % 90.82 % 90.63 %
Yield on interest-earning assets 3.99 % 3.93 % 3.90 % 4.06 % 4.09 %
Cost of interest-bearing liabilities 1.09 % 1.01 % 0.87 % 0.84 % 0.83 %
Asset and Credit Quality Ratios - Total loans:
Nonperforming loans to loans receivable 0.28 % 0.22 % 0.24 % 0.39 % 0.27 %
Nonperforming assets to total assets 0.38 % 0.35 % 0.37 % 0.50 % 0.50 %
ALL to nonperforming assets 114.60 % 120.11 % 111.81 % 84.08 % 83.92 %
ALL to total gross loans 0.59 % 0.57 % 0.57 % 0.57 % 0.57 %
Asset and Credit Quality Ratios - New Loans:
Nonperforming new loans to new loans receivable 0.05 % 0.02 % 0.02 % 0.04 % 0.01 %
New loan ALL to total gross new loans 0.57 % 0.55 % 0.54 % 0.54 % 0.52 %
Asset and Credit Quality Ratios - Acquired Loans:
Nonperforming acquired loans to acquired loans receivable 5.23 % 4.05 % 4.15 % 6.18 % 3.76 %
Acquired loan ALL to total gross acquired loans 1.01 % 1.06 % 1.11 % 1.16 % 1.22 %
Capital Ratios (Company):
Average equity to average total assets 11.4 % 11.3 % 11.0 % 11.1 % 11.4 %

Tangible average equity to tangible average assets (1)

10.6 % 10.5 % 10.2 % 10.2 % 10.5 %

Tangible common equity ratio (1)

10.6 % 10.5 % 10.3 % 10.0 % 10.4 %
Tier 1 leverage ratio 10.6 % 10.6 % 10.5 % 10.3 % 10.3 %
Tier 1 risk-based capital ratio 12.2 % 12.3 % 12.2 % 11.9 % 11.8 %
Total risk-based capital ratio 12.7 % 12.9 % 12.8 % 12.5 % 12.0 %
Capital Ratios (Bank):
Average equity to average total assets 10.2 % 10.1 % 10.0 % 10.2 % 10.6 %
Tangible common equity ratio 9.3 % 9.3 % 9.1 % 9.0 % 9.5 %
Tier 1 leverage ratio 9.4 % 9.3 % 9.3 % 9.3 % 9.6 %
Tier 1 risk-based capital ratio 10.8 % 10.9 % 10.9 % 10.9 % 11.1 %
Total risk-based capital ratio 11.4 % 11.4 % 11.5 % 11.4 % 11.5 %

(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,
2017 2017 2017 2016 2016
(Dollars in thousands)
New Loans:
Commercial real estate $ 1,934,246 $ 1,811,977 $ 1,703,790 $ 1,438,427 $ 1,272,150
Owner-occupied commercial real estate 933,439 856,050 790,062 769,814 596,131
1-4 single family residential 2,126,006 2,133,883 2,084,966 2,012,856 1,982,340
Construction, land and development 682,354 706,866 627,894 651,253 639,626
Home equity loans and lines of credit 52,945 47,686 50,815 49,819 47,508
Total real estate loans $ 5,728,990 $ 5,556,462 $ 5,257,527 $ 4,922,169 $ 4,537,755
Commercial and industrial 1,431,445 1,339,591 1,290,456 1,332,869 1,295,324
Consumer 4,045 4,327 4,231 4,368 4,680
Total new loans $ 7,164,480 $ 6,900,380 $ 6,552,214 $ 6,259,406 $ 5,837,759
Acquired ASC 310-30 Loans:
Commercial real estate $ 111,416 $ 120,781 $ 129,317 $ 130,628 $ 160,219
1-4 single family residential 28,044 28,792 30,115 31,476 34,329
Construction, land and development 13,791 15,060 15,912 17,657 25,156
Total real estate loans $ 153,251 $ 164,633 $ 175,344 $ 179,761 $ 219,704
Commercial and industrial 13,145 13,612 14,234 15,147 21,985
Consumer 1,447 1,478 1,554 1,681 2,074
Total Acquired ASC 310-30 Loans $ 167,843 $ 179,723 $ 191,132 $ 196,589 $ 243,763
Acquired Non-ASC 310-30 Loans:
Commercial real estate $ 37,896 $ 38,043 $ 38,352 $ 38,786 $ 39,769
Owner-occupied commercial real estate 18,097 18,266 18,465 18,477 20,042
1-4 single family residential 60,374 62,485 64,669 66,854 71,302
Construction, land and development 5,890 5,890 5,890 6,338 6,338
Home equity loans and lines of credit 38,007 40,809 41,835 42,295 43,096
Total real estate loans $ 160,264 $ 165,493 $ 169,211 $ 172,750 $ 180,547
Commercial and industrial 5,284 5,499 5,487 5,815 7,001
Consumer 334 306 326 334 423
Total Acquired Non-ASC 310-30 Loans 165,882 171,298 175,024 178,899 187,971
Total loans $ 7,498,205 $ 7,251,401 $ 6,918,370 $ 6,634,894 $ 6,269,493
FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES
Deposit Composition
(Unaudited)
As of
September 30, June 30, March 31, December 31, September 30,
2017 2017 2017 2016 2016
(Dollars in thousands)
Noninterest-bearing demand deposits $ 1,242,562 $ 1,135,922 $ 1,069,745 $ 905,905 $ 830,910
Interest-bearing demand deposits 1,232,116 1,117,280 1,057,539 1,004,452 905,687
Interest-bearing NOW accounts 368,796 401,845 422,329 398,823 420,207
Savings and money market accounts 2,885,173 2,970,429 3,091,965 2,780,697 2,468,321
Time deposits 2,377,446 2,069,714 2,032,793 2,215,794 2,292,438
Total deposits $ 8,106,093 $ 7,695,190 $ 7,674,371 $ 7,305,671 $ 6,917,563

FCB FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Quarterly Average Balances and Yields

(Unaudited)

Three Months Ended
September 30,

Three Months Ended
June 30,

2017 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 $ 39,646 $ 136 1.36 % $ 51,078 $ 136 1.07 %

New loans (4)

6,982,158 69,709 3.91 % 6,695,380 64,575 3.82 %

Acquired loans (4)(5)

341,056 6,756 7.92 % 355,721 6,941 7.80 %
Investment securities 2,134,162 20,215 3.71 % 2,025,060 18,921 3.70 %
Total interest-earning assets 9,497,022 96,816 3.99 % 9,127,239 90,573 3.93 %
Non-earning assets:
Noninterest-earning assets 473,981 475,115
Total assets $ 9,971,003 $ 9,602,354
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,147,669 $ 2,694 0.93 % $ 1,073,823 $ 2,289 0.85 %
Interest-bearing NOW accounts 398,322 763 0.76 % 419,774 637 0.61 %
Savings and money market accounts 2,885,716 6,901 0.95 % 3,071,859 6,857 0.90 %

Time deposits (6)

2,161,905 6,776 1.24 % 2,007,097 5,842 1.17 %

FHLB advances and other borrowings (6)

1,030,437 3,901 1.48 % 825,154 3,061 1.47 %
Total interest-bearing liabilities $ 7,624,049 $ 21,035 1.09 % $ 7,397,707 $ 18,686 1.01 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,149,981 $ 1,070,311
Other liabilities 59,139 47,782
Stockholders' equity 1,137,834 1,086,554
Total liabilities and stockholders' equity $ 9,971,003 $ 9,602,354
Net interest income $ 75,781 $ 71,887
Net interest spread 2.90 % 2.92 %
Net interest margin 3.17 % 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
Quarterly Average Balances and Yields
(Unaudited)
Three Months Ended September 30,
2017 2016
Average

Balance (1)

Interest/

Expense (2)

Annualized

Yield/Rate(3)

Average

Balance (1)

Interest/

Expense (2)

Annualized

Yield/Rate(3)

(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 39,646 $ 136 1.36 % $ 71,489 $ 97 0.53 %

New loans (4)

6,982,158 69,709 3.91 % 5,595,402 49,831 3.48 %

Acquired loans (4)(5)

341,056 6,756 7.92 % 447,232 15,917 14.24 %
Investment securities 2,134,162 20,215 3.71 % 1,643,102 14,955 3.56 %
Total interest-earning assets 9,497,022 96,816 3.99 % 7,757,225 80,800 4.09 %
Non-earning assets:
Noninterest-earning assets 473,981 490,465
Total assets $ 9,971,003 $ 8,247,690
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,147,669 $ 2,694 0.93 % $ 761,462 $ 1,053 0.55 %
Interest-bearing NOW accounts 398,322 763 0.76 % 421,050 386 0.36 %
Savings and money market accounts 2,885,716 6,901 0.95 % 2,375,041 3,932 0.66 %

Time deposits (6)

2,161,905 6,776 1.24 % 2,167,355 6,365 1.17 %

FHLB advances and other borrowings (6)

1,030,437 3,901 1.48 % 691,901 1,786 1.01 %
Total interest-bearing liabilities $ 7,624,049 $ 21,035 1.09 % $ 6,416,809 $ 13,522 0.83 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,149,981 $ 810,374
Other liabilities 59,139 77,339
Stockholders' equity 1,137,834 943,168
Total liabilities and stockholders' equity $ 9,971,003 $ 8,247,690
Net interest income $ 75,781 $ 67,278
Net interest spread 2.90 % 3.26 %
Net interest margin 3.17 % 3.44 %

(1) Average balances presented are derived from daily average balances.

(2) Interest income is presented on an actual basis and does not include taxable equivalent adjustments.

(3) Average rates are presented on an annualized basis.

(4) Includes loans on 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 Balance and Yields

(Unaudited)

Year to date September 30,

2017

2016

Average
Balance (1)

Interest/
Expense (2)

Annualized
Yield/Rate (3)

Average
Balance (1)

Interest/
Expense (2)

Annualized
Yield/Rate (3)

(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks $ 41,592 $ 344 1.11 % $ 83,538 $ 259 0.41 %

New loans (4)

6,675,685 192,975 3.81 % 5,231,893 138,617 3.49 %

Acquired loans (4)(5)

354,928 21,595 8.11 % 503,869 51,061 13.51 %
Investment securities 2,048,977 57,697 3.71 % 1,604,283 43,799 3.60 %
Total interest-earning assets 9,121,182 272,611 3.95 % 7,423,583 233,736 4.16 %
Non-earning assets:
Noninterest-earning assets 471,602 479,290
Total assets $ 9,592,784 $ 7,902,873
Interest-bearing liabilities:
Interest-bearing demand deposits $ 1,078,718 $ 6,694 0.83 % $ 689,790 $ 2,680 0.52 %
Interest-bearing NOW accounts 407,504 1,874 0.61 % 421,765 1,191 0.38 %
Savings and money market accounts 2,916,855 18,874 0.87 % 2,214,231 10,193 0.62 %

Time deposits (6)

2,106,550 18,835 1.20 % 2,014,943 17,305 1.15 %

FHLB advances and other borrowings (6)

900,523 8,996 1.32 % 862,418 5,717 0.87 %
Total interest-bearing liabilities $ 7,410,150 $ 55,273 1.00 % $ 6,203,147 $ 37,086 0.80 %
Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits $ 1,056,011 $ 725,141
Other liabilities 46,430 66,021
Stockholders' equity 1,080,193 908,564
Total liabilities and stockholders' equity $ 9,592,784 $ 7,902,873
Net interest income $ 217,338 $ 196,650
Net interest spread 2.95 % 3.36 %
Net interest margin 3.19 % 3.54 %

(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,
2017

June 30,
2017

March 31,
2017

December 31,
2016

September 30,
2016

(Dollars in thousands)
Net Income $ 32,160 $ 35,081 $ 38,989 $ 27,896 $ 26,064
Pre-tax Adjustments:
Noninterest income:
Less: Gain on investment securities 690 255 777 800 749
Noninterest expense:
Salaries and employee benefits 51 223 56 132 72
Occupancy and equipment - - - 43 -
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 125 21 12 66 7
Taxes:

Tax Effect of adjustments (1)

2,541 (2,534 ) (9,147 ) (160 ) (10 )
Adjusted Net Income $ 34,187 $ 32,536 $ 29,133 $ 27,177 $ 25,384
Average assets $ 9,971,003 $ 9,602,354 $ 9,196,483 $ 8,764,938 $ 8,247,690

ROA (2)

1.28 % 1.47 % 1.72 % 1.26 % 1.25 %

Adjusted ROA (3)

1.36 % 1.36 % 1.28 % 1.23 % 1.22 %

(1) Tax effected at marginal income tax rate of 39% except for non tax deductible and discreet items. Adjusted tax rate of 36% in 2016 and 20-25% for full-year 2017.

(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,
2017

June 30,
2017

March 31,
2017

December 31,
2016

September 30,
2016

(Dollars in thousands)
Reported: Net interest income $ 75,781 $ 71,887 $ 69,670 $ 71,066 $ 67,278
FTE adjustment 1,357 1,348 1,288 1,132 989
Adjusted net interest income $ 77,138 $ 73,235 $ 70,958 $ 72,198 $ 68,267
Reported: Noninterest income $ 8,425 $ 8,873 $ 9,987 $ 7,919 $ 8,142
FTE adjustment 894 904 904 852 824
Less: Gain on investment securities 690 255 777 800 749
Adjusted noninterest income $ 8,629 $ 9,522 $ 10,114 $ 7,971 $ 8,217
Reported: Noninterest expense $ 35,239 $ 35,252 $ 35,084 $ 33,646 $ 33,036
Less:
Salaries and employee benefits 51 223 56 132 72
Occupancy and equipment - - - 43 -
Loan and other real estate related expenses - - - - -
Professional services - - - - -
Data processing and network fees - - - - -
Regulatory assessments and insurance - - - - -
Amortization of intangibles - - - - -
Other operating expenses 125 21 12 66 7
Adjusted noninterest expense $ 35,063 $ 35,008 $ 35,016 $ 33,405 $ 32,957

Efficiency ratio (1)

41.54 % 43.33 % 43.72 % 42.27 % 43.46 %

Adjusted efficiency ratio (2)

40.58 % 41.99 % 42.88 % 41.35 % 42.75 %

(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,
2017 2017 2017 2016 2016
(Dollars in thousands, except share and per share data)
Total assets $ 10,229,332 $ 9,901,392 $ 9,533,222 $ 9,090,134 $ 8,531,152
Less:
Goodwill and other intangible assets 85,127 85,383 85,639 85,895 86,151
Tangible assets $ 10,144,205 $ 9,816,009 $ 9,447,583 $ 9,004,239 $ 8,445,001
Total stockholders' equity $ 1,156,073 $ 1,117,278 $ 1,055,247 $ 982,441 $ 966,085
Less:
Goodwill and other intangible assets 85,127 85,383 85,639 85,895 86,151
Tangible stockholders' equity $ 1,070,946 $ 1,031,895 $ 969,608 $ 896,546 $ 879,934
Shares outstanding 43,728,302 43,208,418 42,432,062 41,157,571 40,912,571
Tangible book value per share $ 24.49 $ 23.88 $ 22.85 $ 21.78 $ 21.51
Average assets $ 9,971,003 $ 9,602,354 $ 9,196,483 $ 8,764,938 $ 8,247,690
Average equity 1,137,834 1,086,554 1,014,839 974,544 943,168
Average goodwill and other intangible assets 85,257 85,511 85,766 86,029 86,276
Tangible average equity to tangible average assets 10.6 % 10.5 % 10.2 % 10.2 % 10.5 %
Tangible common equity ratio 10.6 % 10.5 % 10.3 % 10.0 % 10.4 %

View source version on businesswire.com: http://www.businesswire.com/news/home/20171024006358/en/

FCB Financial Holdings, Inc.
Matthew Paluch, 305-668-5420
IR@fcb1923.com

Source: FCB Financial Holdings, Inc.