FCB FINANCIAL HOLDINGS, INC. (NYSE:FCB) Files An 8-K Other EventsItem 8.01 Other Events
Impact of Tax Reform on FCB Financial Holdings, Inc.
FCB Financial Holdings, Inc. (the "Company") announced today that as a result of the “Tax Cuts and Jobs Act” (the “TCJA”), the Company is required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts. The reduction in the federal corporate tax rate will negatively impact the Company’s fourth quarter 2017 results but is expected to positively impact the Company’s future after-tax earnings.
The Company has performed a preliminary analysis as of December 31, 2017 estimating the impact of this one-time non-cash charge to the income statement of approximately $14.3 million that will reduce the Company’s fourth quarter 2017 results. to the Company’s analysis, the fourth quarter earnings impact will be approximately $(0.31) per share and the tangible book value impact will be approximately $(0.32) per share based on fourth quarter weighted average diluted shares of 46,565,052 and total shares outstanding of 44,380,580 at year end, respectively.
These preliminary estimates of the impact of the TCJA on the Company should not be viewed as a substitute for full financial statements prepared in accordance with U.S. generally accepted accounting principles, and are not necessarily indicative of the results to be achieved for any future periods. The estimates have been prepared by management and the Company's independent auditors have not completed their audit or review of such information.
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.
About FCB FINANCIAL HOLDINGS, INC. (NYSE:FCB)
FCB Financial Holdings, Inc. is a bank holding company with one national bank subsidiary, Florida Community Bank, National Association (the Bank). The Company operates in the Community Banking segment. Through the Bank, the Company provides a range of retail and commercial banking services. The Company provides a range of financial products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities through approximately 50 branches in south and central Florida. The Company targets retail customers and commercial customers engaged in various industries, including healthcare and professional services; retail and wholesale trade; tourism; agricultural services; manufacturing; distribution and distribution-related industries; technology; automotive; aviation; food products; building materials; residential housing, and commercial real estate. It also selectively participates in syndicated loans to national credits.