[April 24, 2018]

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

FCB Financial Holdings, Inc. (NYSE:FCB) (the "Company") today reported first quarter 2018 net income of $40.1 million, or $0.84 per share on a fully diluted basis, and adjusted net income of $40.7 million, or $0.85 per share on a fully diluted basis. Net income rose 3% year-over-year and pre-tax income increased by 12% to $48.2 million. Adjusted net income rose 40% year-over-year and adjusted net income per diluted share rose 34%. This resulted in a ROA of 148 basis points and an adjusted ROA of 150 basis points.

• Fully tax equivalent net revenue of $91.7 million;
• Reported and Adjusted EPS of $0.84 and $0.85 per share, respectively, on a fully diluted basis;
• Net Interest Margin and adjusted Net Interest Margin expanded by 5 basis points during the quarter to 3.18% and 3.14%, respectively;
• New loan portfolio grew sequentially at an annualized rate of 18% when excluding the impact of syndication sales and paydowns;
• New loan fundings of $495.4 million during the quarter;
• Demand deposits grew by $163.9 million, or 25% annualized, during the quarter;
• Reported and Adjusted Efficiency ratio of 43.5% and 39.6%, respectively;
• Reported and Adjusted ROA of 148 and 150 basis points, respectively; and
• Tangible book value per share was $24.80.

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 first quarter of 2018 primarily relate to merger related expenses associated with the acquisition of Floridian Community Holdings, Inc. ("Floridian Community") that was completed on March 1, 2018. Non-operating adjustments include $911 thousand of professional services expense, $826 thousand of severance and salary related expense, $539 thousand of data processing and system conversion expense and $277 thousand of other operating expense, and $1.4 million losses 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 first quarter was another great quarter for FCB, as we grew the balance sheet by nearly $1 billion while increasing our net interest margin by 5 basis points, closed our Floridian Community acquisition in less than 3 months and continued our organic momentum with over $435 million of organic deposit growth and over $495 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 $726.6 million to $8.7 billion as of March 31, 2018, an increase of 9% from $8.0 billion as of December 31, 2017, and 26% from $6.9 billion as of March 31, 2017.

The Bank's new loan portfolio totaled $8.0 billion as of March 31, 2018, an increase of 4% from $7.7 billion as of December 31, 2017 and 22% from $6.6 billion as of March 31, 2017. Loan growth during the quarter was a result of $495.4 million of organic new loan fundings, consisting of $246.1 million of commercial and industrial, $161.9 million of commercial real estate and $87.4 million of residential and consumer. Additionally, during the quarter, the Company decreased its syndicated loan portfolio by $24 million with the total syndicated portfolio representing only 3% of total loans. As of March 31, 2018, new loans made up 92% of the total loan portfolio as compared to 96% and 95% as of December 31, 2017 and March 31, 2017, respectively.

The Bank's acquired loan portfolio totaled $728.1 million as of March 31, 2018, an increase of 130% from $316.4 million as of December 31, 2017 and an increase of 99% from $366.2 million as of March 31, 2017. The increase in the current quarter was primarily driven by the acquisition of Floridian Community. As of March 31, 2018, acquired loans made up 8% of our total loan portfolio as compared to 4% and 5% as of December 31, 2017 and March 31, 2017, respectively.

Asset Quality

The provision for loan losses of $2.1 million recorded for the first quarter of 2018 includes a $2.1 million provision for new loans and a valuation allowance of $16 thousand for the acquired loan portfolio. The provision for new loans served to increase the related allowance to $46.2 million, or 0.58% of the $8.0 billion in new loans outstanding. The nonperforming new loan ratio as of March 31, 2018 was 0.04%.

Deposits and Borrowings

Deposits totaled $9.5 billion as of March 31, 2018, an increase of 9% from $8.7 billion as of December 31, 2017 and an increase of 24% from $7.7 billion as of March 31, 2017. During the first quarter of 2018, demand deposits increased by $163.9 million, or 6%, from December 31, 2017 and increased by $727.4 million, or 34%, from March 31, 2017. Demand deposits represent 30% of total deposits as of March 31, 2018 as compared to 31% and 28% as of December 31, 2017 and March 31, 2017, respectively. The cost of deposits was 107 basis points for the quarter, representing a 12 basis point increase from the fourth quarter of 2017 and a 32 basis point increase from the first quarter of 2017. The primary driver of the increase over the periods is attributable to the Federal Reserve rate hikes in March, June and December 2017 and March 2018.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2018 was 3.18%, an increase of 5 basis points from the fourth quarter of 2017 and a decrease of 6 basis points from the first quarter of 2017. The increase from the fourth quarter of 2017 was due primarily to the 12 basis point increase in yield on interest-earning assets partially offset by the 10 basis point increase in cost of interest-bearing liabilities.

Net interest income totaled $82.2 million in the first quarter of 2018, an increase of 5% from $78.1 million in the fourth quarter of 2017 and an increase of 18% from $69.7 million in the first quarter of 2017. Interest income totaled $108.6 million for the first quarter of 2018, an increase of 7% from $101.5 million in the fourth quarter of 2017 and an increase of 27% from $85.2 million in the first quarter of 2017. Interest income from new loans increased by $5.8 million, or 8%, from the fourth quarter of 2017 due to yield expansion and continued growth in the new loan portfolio. Interest income on acquired loans increased by $0.9 million, or 14%, from the fourth quarter due to the acquisition of Floridian Community. Interest expense was $26.4 million for the first quarter of 2018, an increase of 13% from $23.4 million in the fourth quarter of 2017 and an increase of 70% from $15.6 million in the first quarter of 2017. The increase from the fourth quarter of 2017 was a result of a 10 basis point increase on cost of interest-bearing liabilities associated with increased time deposit duration as well as the impact of the December 2017 and March 2018 Federal Reserve rate hikes on deposit costs.

Noninterest Income and Noninterest Expense

Noninterest income totaled $7.2 million for the first quarter of 2018 as compared to $7.7 million for the fourth quarter of 2017 and $10.0 million for the first quarter of 2017. The primary components of noninterest income for the quarter were loan and other fees, bank-owned life insurance income and other noninterest income of $4.9 million, $1.4 million and $1.1 million, respectively.

Noninterest expense totaled $39.2 million for the first quarter of 2018, an increase of 8% from $36.1 million in the fourth quarter of 2017 and an increase of 12% from $35.1 million in the first quarter of 2017. Non-operating adjustments for the first quarter of 2018 primarily relate to merger related expenses associated with the acquisition of Floridian Community that was completed on March 1, 2018. Non-operating adjustments include $911 thousand of professional services expense, $826 thousand of severance and salary related expense, $539 thousand of data processing and system conversion expense and $277 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%, 10.7% and 12.2% for the first quarter of 2018 respectively, compared to 10.3%, 10.5% and 12.4% for the fourth quarter of 2017, respectively. Stockholders' equity totaled $1.30 billion as of March 31, 2018, an increase of 10.6% from $1.18 billion as of December 31, 2017 due to net income of $40.1 million and an increase of $100.7 million of additional paid-in capital partially offset by a decrease in accumulated other comprehensive income of $15.1 million. The Company did not repurchase common stock during the quarter. Tangible book value per common share is $24.80 as of March 31, 2018.

Conference Call

The Company will host a conference call today, Tuesday, April 24, 2018 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 May 24, 2018, by dialing (877) 344-7529 and entering pass code 10118528.

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 include, but are not limited to, the expected completion date, financial benefits and other effects of the proposed merger of FCB and Floridian Community. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "expects," "can," "could," "may," "predicts," "potential," "opportunity," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "seeks," "intends" and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in them, and are not guarantees of timing, future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management's current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, readers are cautioned not to place undue reliance on such statements. Factors that may cause such a difference include, but are not limited to, the reaction to the transaction of the companies' customers, employees and counterparties; customer disintermediation; inflation; expected synergies, cost savings and other financial benefits of the proposed transaction might not be realized within the expected timeframes or might be less than projected; the requisite shareholder and regulatory approvals for the proposed transaction might not be obtained; credit and interest rate risks associated with FCB's and Floridian Community's respective businesses, customers, borrowings, repayment, investment, and deposit practices; general economic conditions, either nationally or in the market areas in which FCB and Floridian Community operate or anticipate doing business, are less favorable than expected; new regulatory or legal requirements or obligations; and other risks; certain risks and important factors that could affect FCB's future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2017 and other reports filed with the SEC, including among other things under the heading "Risk Factors" in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and FCB undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

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 $11 billion, with capital ratios that exceed regulatory standards. Since its founding in 2010, FCB has been steadfast in its commitment to delivering personalized service, innovation, and products and services equal to those offered by the national banks. Similarly, FCB recognizes the importance of community, fostering a corporate culture that promotes employee volunteerism at all levels, while supporting community-based programs and partnerships that help promote greater financial independence and improved quality of life for families. FCB serves individuals, businesses and communities across the state with 50 full-service banking centers from east to west, and from Daytona Beach to Miami-Dade. For more information, visit FloridaCommunityBank.com. Equal Housing Lender, Member FDIC.

(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

(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)

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