IPO Report: FCB Financial Holdings (FCB)

FCB Financial Holdings (FCB) is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida.

Nineteen other companies are scheduled to IPO for the week of July 28, 2014. The full IPO calendar is available at IPOpremium.

The manager and co-managers are Deutsche Bank Securities, J.P. Morgan, BofA Merrill Lynch/ UBS Investment Bank.  The joint managers are Keefe, Bruyette & Woods, Guggenheim Securities, Hovde Group.

FCB scheduled a $223 million IPO with a market capitalization of $1.02 billion at a price range midpoint of $25.50 for Friday, August 1, 2014 on the NYSE.  SEC filings

FCB IPO Overview

FCB is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida.

Valuation for FCB

Glossary

Conclusion on FCB IPO

The rating is neutral.

Good organic growth, 58 P/E on 2013 yr

(2013 yr because pro forma figures available)

FCB Business

FCB is a bank holding company with one wholly-owned national bank subsidiary, Florida Community Bank, National Association, headquartered in Weston, Florida, which operates 54 branches in Florida.

As of March 31, 2014, FCB had $5.17 billion in assets, $3.73 billion in deposits and $723.9 million in stockholders’ equity.

Since its first acquisition in January 2010, FCB has grown to become one of the largest independent banks headquartered in Florida.

Further, FCB believes that its loan growth over 2012 and 2013, a two year cumulative annual growth rate, or CAGR, of approximately 39%, compared to the median of approximately 15% for the top-10 fastest organically growing U.S. regional banks with assets from $3 to $30 billion, excluding internet-based banks, reflects the Bank’s industry-leading organic loan growth.

During the year ended December 31, 2013, FCB had net new commercial loan growth of $734.5 million and net new residential and consumer loan growth of $306.5 million.

As of December 31, 2013, FCB’s new loan portfolio aggregated $1.77 billion, representing approximately 78.4% of its aggregate loan portfolio, of which over $1.4 billion represented new commercial loans and approximately $371 million represented new residential and consumer loans.

FCB Dividend Policy

FCB has never paid a cash dividend on its common stock; however, FCB may pay dividends on shares of its common stock in the future. FCB is a bank holding company and accordingly, any dividends paid by it is subject to various regulatory limitations and also may be subject to the ability of its subsidiary depository institution to make distributions or pay dividends to us.

FCB's Competition

FCB competes with commercial banks, credit unions, savings and loan associations, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds and other mutual funds, as well as super-regional, national and international financial institutions that operate offices within its market areas and beyond.

FCB’s largest banking competitors in its markets include Bank of America, BankUnited, BB&T, JPMorgan Chase, Regions Bank, SunTrust Bank, TD Bank and Wells Fargo.

5% Stockholders

Franklin Mutual Advisers LLC 9.3%

Elliott Management 8.5%

Bond Street Investors LLC 6.4%

American Funds Insurance Series – Growth Fund 5.8%           

Use of Proceeds

FCB intends to use the $99 million in proceeds from its IPO as follows:

for general corporate purposes, including to fund organic growth as well as the opportunistic acquisition of depository institutions, and selective acquisitions of assets, deposits and branches that FCB believes present attractive risk-adjusted returns or provide a strategic benefit to FCB’s growth strategy.