Capital Bank Financial Corp. (Nasdaq:CBF) (the “Company”) today
reported net income for the third quarter of 2016 of $18.5 million,
or $0.42 per diluted share and core net income of $18.5 million, or
$0.42 per diluted share. Net income rose 21% year over year, while
net income per diluted share rose 27%.
Core adjustments for the third quarter of 2016
included $1.5 million of legal settlement expense and $0.3 million
of tax deductible merger related expenses, offset by a $1.1 million
tax adjustment and $0.1 million of gains on sales of investment
securities.
Gene Taylor, Chairman and Chief Executive
Officer of Capital Bank Financial Corp., commented, “We look
forward to completion of the CommunityOne merger, a
carefully-executed conversion, and an expanded footprint in North
Carolina.”
Chris Marshall, Chief Financial Officer of
Capital Bank Financial Corp., added, “We are pleased with this
quarter's results and are positioning to end the year strongly and
enter 2017 with good momentum.”
Loan Portfolio and Composition
During the third quarter, the loan portfolio was
up $191.0 million at $5.9 billion. New loans of $471 million
were offset by loan resolutions and payoffs totaling $280
million.
The relative composition of the Company’s loan
portfolio at the end of the third and second quarters of 2016 and
fourth quarter of 2015 was as follows:
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Dec 31, 2015 |
Commercial real
estate |
|
22 |
% |
|
22 |
% |
|
22 |
% |
C&I |
|
43 |
% |
|
44 |
% |
|
43 |
% |
Consumer |
|
32 |
% |
|
31 |
% |
|
32 |
% |
Other |
|
3 |
% |
|
3 |
% |
|
3 |
% |
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
Deposits Composition and Cost of Funds
During the third quarter, total deposits
increased by $226.1 million to $6.0 billion. The cost of total
deposits remained flat at 0.41% basis points, while the cost of
core deposits increased one basis point to 0.19%. Core
deposits include all checking, savings and money market accounts,
excluding brokered, now represent 70% of total deposits. The
contractual cost of total deposits, which excludes purchase
accounting was 0.41%, a decline of one basis point
sequentially.
Net Interest Income and Net Interest
Margin
Net interest income increased $1.1 million to
$62.6 million from $61.5 million for the second quarter of 2016 and
increased $1.0 million from $61.6 million for the third quarter of
2015. The net interest margin for the third quarter of 2016 was
3.58%, a decline of four basis points sequentially and 24 basis
points year over year. The sequential and year over year net
interest margin decline was mostly due to the lower average yield
on new loans as compared to the yields of the Company's legacy
acquired loans. New and acquired non-impaired loans represent $5.0
billion with an average yield of 3.67%, compared to $0.9 billion of
acquired impaired loans outstanding with an average yield of
8.55%.
Non-Interest Income
Non-interest income increased $0.4 million to
$12.4 million from $11.9 million for the second quarter of 2016 and
increased $1.0 million from $11.4 million for the third quarter of
2015. The sequential increase was mainly driven by higher
service charges on deposit accounts and fees on mortgage loans
originated and sold, as fees for residential mortgages sold
increased 17% quarter over quarter, partially offset by a decline
in investment advisory income.
The year over year increase was mainly due to
the absence of $1.4 million of FDIC indemnification asset expense
recorded in the prior year and an increase of fees on mortgage
loans originated and sold. Partially offsetting the increase was a
$0.7 million decline in service charges and a $0.6 million decline
in investment advisory income.
Provision for Loan and Lease Losses and Credit
Quality
The provision of $0.6 million recorded for the
third quarter of 2016 included a $0.6 million provision for new and
acquired non-impaired loans and a $48 thousand reversal on acquired
impaired loans. Net charge-offs for the third quarter of 2016 were
$1.5 million, remaining at the same level of the second quarter of
2016.
At September 30, 2016, the allowance for
loan and lease losses was $44.0 million, of which $23.7 million
related to acquired impaired loans and $20.3 million related to new
and acquired non-impaired loans. The allowance for loan and lease
losses represents 0.75% of the Company's total $5.9 billion loan
portfolio.
At September 30, 2016, non-performing loans
were $60.4 million, a decrease of 7% from June 30, 2016, and a
decrease of 26%, from September 30, 2015, mainly as a result
of resolutions and upgrades.
Non-Interest Expense
Non-interest expense increased $3.0 million to
$47.5 million from $44.5 million for the second quarter of 2016 and
declined $0.8 million from $48.3 million for the third quarter of
2015. The sequential increase was mainly due to $1.5 million
legal settlement expense and increased salaries and benefit expense
of $0.8 million. Partially offsetting the increase was a $0.8
million decrease in conversion and merger expense.
The year over year decline was mainly due to a
$1.7 million decrease in salaries and benefit expense resulting
from cost saving initiatives and lower OREO valuation expenses of
$1.3 million, partially offset by $1.5 million legal settlement
expense occurring in the third quarter of 2016.
Income Tax Expense
Income tax expense was $8.4 million for the
third quarter of 2016, an effective rate of 31%, compared to $10.3
million and 37% for the second quarter of 2016. Income tax expense
was $8.6 million and 36% for the third quarter of 2015. The change
in effective income tax rate was mainly due to a favorable
adjustment for discrete items, partially offset by an increase in
rate change and state taxes and lower tax-exempt interest
income.
Financial Position
Total assets increased by $171.2 million to $7.8
billion as of September 30, 2016, from $7.6 billion as of
June 30, 2016. During the quarter, the Company’s loan
portfolio increased $191.0 million to $5.9 billion. Total
deposits increased by $226.1 million to $6.0 billion, and core
deposits increased by $101.8 million, or a 10% annualized rate.
FHLB borrowings decreased $75.0 million. Book value per share was
$23.82 as of September 30, 2016, an increase of $0.30 and
$0.82 over June 30, 2016 and September 30, 2015,
respectively. Tangible book value per share was $20.53 as of
September 30, 2016, an increase of $0.31 and $0.78 over
June 30, 2016 and September 30, 2015, respectively.
During the third quarter, the Company did not repurchase shares of
common stock. The Company has $101 million remaining under the
current board authorized stock repurchase program.
The Company’s bank subsidiary, Capital Bank
Corporation, had preliminary Tier 1 Leverage, Tier 1 Common, Tier 1
Risk-Based and Total Risk-Based capital ratios of 10.5%, 12.0%,
12.0% and 12.7%, respectively, as of September 30, 2016, under
currently applicable regulations.
The GreenBank CVR expired on September 7, 2016
and based on portfolio losses exceeding the stipulated amount,
there was no payout to CVR holders.
The Company declared a cash dividend of $0.12
per share, payable on November 22, 2016, to shareholders of record
as of November 9, 2016.
Conference Call
The Company will host a conference call today at
10:00 a.m. Eastern Time. The number to call for this
interactive teleconference is (913) 312-0720, and the confirmation
pass code is 5829592. Please dial in 10 minutes prior to the
beginning of the call. A telephonic replay of the conference call
will be available through October 28, 2016, by dialing (719)
457-0820 and entering pass code 5829592. The live broadcast of the
conference call will be available online at the Company’s web site
at www.capitalbank-us.com, by following the link to Investor
Relations. An on-line replay of the call will be available at
the same site for 90 days.
Forward-Looking Statements
Information in this press release contains
forward-looking statements. Any statements about our
expectations, beliefs, plans, predictions, forecasts, objectives,
assumptions or 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
“anticipate,” “believes,” “can,” “could,” “may,” “predicts,”
“potential,” “should,” “will,” “estimate,” “plans,” “projects,”
“continuing,” “ongoing,” “expects,” “intends” and similar words or
phrases. Accordingly, these statements are only predictions
and involve estimates, known and unknown risks, assumptions and
uncertainties that could cause actual results to differ materially
from those expressed in them. Our actual results could differ
materially from those anticipated in such forward-looking
statements as a result of several factors more fully described
under the caption “Risk Factors” in the annual report on Form 10-K
and other periodic reports filed by us with the Securities and
Exchange Commission. Any or all of our forward-looking
statements in this press release may turn out to be
inaccurate. The inclusion of this forward-looking information
should not be regarded as a representation by us or any other
person that the future plans, estimates or expectations
contemplated by us will be achieved. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. There are important
factors that could cause our actual results, level of activity,
performance or achievements to differ materially from the results,
level of activity, performance or achievements expressed or implied
by the forward looking statements including, but not limited to:
(1) changes in general economic and financial market conditions;
(2) changes in the regulatory environment; (3) economic conditions
generally and in the financial services industry; (4) changes in
the economy affecting real estate values; (5) our ability to
achieve loan and deposit growth; (6) the completion of future
acquisitions or business combinations and our ability to integrate
any acquired businesses into our business model; (7) projected
population and income growth in our targeted market areas; (8)
competitive pressures in our markets and industry; (9) our ability
to attract and retain key personnel; (10) changes in accounting
policies or judgments and (11) volatility and direction of market
interest rates and a weakening of the economy which could
materially impact credit quality trends and the ability to generate
loans. All forward-looking statements are necessarily only
estimates of future results, and actual results may differ
materially from expectations. You are, therefore, cautioned
not to place undue reliance on such statements, which should be
read in conjunction with the other cautionary statements that are
included elsewhere in this press release. Further, any
forward-looking statement speaks only as of the date on which it is
made, and we undertake no obligation to update or revise any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the
occurrence of unanticipated events.
Use of Non-GAAP Financial
Measures
Core net income, core efficiency ratio, core
return-on-assets (“core ROA”), tangible book value and tangible
book value per share are each non-GAAP measures used in this
report. A reconciliation to the most directly comparable
GAAP financial measures – net income in the case of core net income
and core ROA, total non-interest income and total non-interest
expense in the case of core 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 core net income,
the core efficiency ratio and core ROA are useful for both
investors and management to understand the effects of certain
non-interest items and provide an alternative view of the Company’s
performance over time and in comparison to the Company’s
competitors. These measures should not be viewed as a substitute
for net income. The Company believes that tangible book
value and tangible book value per share are useful for both
investors and management 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 shareholders’ equity.
The Company uses these non-GAAP measures for
various purposes, including measuring performance for incentive
compensation and as a basis for strategic planning and
forecasting.
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 analysis of results reported under
GAAP. These non-GAAP measures may not be comparable to
similarly titled measures reported by other companies.
About Capital Bank Financial
Corp.
Capital Bank Financial Corp. is a bank holding
company, formed in 2009 to create a premier regional banking
franchise in the southeastern United States. CBF is the parent of
Capital Bank Corporation, a State of North Carolina chartered
financial institution with $7.8 billion in total assets as of
September 30, 2016, and 151 full-service banking offices
throughout Florida, North and South Carolina, Tennessee and
Virginia. To learn more about Capital Bank Financial Corp, please
visit www.capitalbank-us.com.
|
|
CAPITAL BANK FINANCIAL CORP. |
CONSOLIDATED STATEMENTS OF
INCOME |
(Dollars and shares in thousands, except per
share data) |
(Unaudited) |
|
|
Three Months Ended |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Interest and dividend
income |
$ |
70,929 |
|
|
$ |
69,579 |
|
|
$ |
69,472 |
|
|
$ |
69,553 |
|
|
$ |
68,718 |
|
Interest expense |
8,302 |
|
|
8,064 |
|
|
8,105 |
|
|
7,475 |
|
|
7,081 |
|
Net Interest
Income |
62,627 |
|
|
61,515 |
|
|
61,367 |
|
|
62,078 |
|
|
61,637 |
|
Provision for loan and
lease losses |
586 |
|
|
1,172 |
|
|
1,375 |
|
|
1,089 |
|
|
799 |
|
Net interest income
after provision for loan and lease losses |
62,041 |
|
|
60,343 |
|
|
59,992 |
|
|
60,989 |
|
|
60,838 |
|
Non-Interest
Income |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
4,777 |
|
|
4,486 |
|
|
4,811 |
|
|
4,911 |
|
|
5,472 |
|
Debit card income |
3,389 |
|
|
3,235 |
|
|
3,086 |
|
|
3,029 |
|
|
3,113 |
|
Fees on mortgage loans
originated and sold |
1,334 |
|
|
1,140 |
|
|
971 |
|
|
875 |
|
|
990 |
|
Investment advisory and
trust fees |
290 |
|
|
455 |
|
|
497 |
|
|
597 |
|
|
860 |
|
FDIC indemnification
asset expense |
— |
|
|
— |
|
|
— |
|
|
(1,526 |
) |
|
(1,418 |
) |
Termination of loss
share agreements |
— |
|
|
— |
|
|
(9,178 |
) |
|
— |
|
|
— |
|
Investment securities
gains (losses), net |
71 |
|
|
117 |
|
|
40 |
|
|
54 |
|
|
(43 |
) |
Other income |
2,509 |
|
|
2,489 |
|
|
2,339 |
|
|
2,657 |
|
|
2,444 |
|
Total non-interest
income |
12,370 |
|
|
11,922 |
|
|
2,566 |
|
|
10,597 |
|
|
11,418 |
|
Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
20,935 |
|
|
20,139 |
|
|
22,162 |
|
|
20,219 |
|
|
22,620 |
|
Stock-based
compensation expense |
790 |
|
|
467 |
|
|
317 |
|
|
— |
|
|
309 |
|
Net occupancy and
equipment expense |
7,340 |
|
|
7,355 |
|
|
7,703 |
|
|
7,385 |
|
|
7,621 |
|
Computer services |
3,153 |
|
|
3,274 |
|
|
3,575 |
|
|
3,479 |
|
|
3,471 |
|
Software expense |
1,948 |
|
|
2,000 |
|
|
2,036 |
|
|
2,061 |
|
|
2,198 |
|
Telecommunication
expense |
1,790 |
|
|
1,558 |
|
|
1,532 |
|
|
1,168 |
|
|
1,515 |
|
OREO valuation
expense |
742 |
|
|
1,119 |
|
|
467 |
|
|
341 |
|
|
2,075 |
|
Net gains on sales of
OREO |
(159 |
) |
|
(413 |
) |
|
(679 |
) |
|
(801 |
) |
|
(351 |
) |
Foreclosed asset
related expense |
397 |
|
|
399 |
|
|
285 |
|
|
405 |
|
|
872 |
|
Loan workout
expense |
206 |
|
|
71 |
|
|
244 |
|
|
650 |
|
|
194 |
|
Conversion and merger
related expense |
394 |
|
|
1,236 |
|
|
1,687 |
|
|
704 |
|
|
— |
|
Professional fees |
1,642 |
|
|
1,353 |
|
|
1,612 |
|
|
1,529 |
|
|
1,958 |
|
Restructuring charges,
net |
(113 |
) |
|
5 |
|
|
142 |
|
|
4,248 |
|
|
23 |
|
Legal settlement
expense |
1,500 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Regulatory
assessments |
841 |
|
|
1,259 |
|
|
1,275 |
|
|
1,486 |
|
|
1,423 |
|
Other expense |
6,124 |
|
|
4,714 |
|
|
4,580 |
|
|
4,882 |
|
|
4,418 |
|
Total non-interest
expense |
47,530 |
|
|
44,536 |
|
|
46,938 |
|
|
47,756 |
|
|
48,346 |
|
Income before income
taxes |
26,881 |
|
|
27,729 |
|
|
15,620 |
|
|
23,830 |
|
|
23,910 |
|
Income tax expense |
8,393 |
|
|
10,327 |
|
|
5,780 |
|
|
8,809 |
|
|
8,589 |
|
Net
income |
$ |
18,488 |
|
|
$ |
17,402 |
|
|
$ |
9,840 |
|
|
$ |
15,021 |
|
|
$ |
15,321 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.43 |
|
|
$ |
0.40 |
|
|
$ |
0.23 |
|
|
$ |
0.35 |
|
|
$ |
0.34 |
|
Diluted |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.22 |
|
|
$ |
0.34 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
43,028 |
|
|
43,011 |
|
|
43,063 |
|
|
43,499 |
|
|
45,359 |
|
Diluted |
43,909 |
|
|
43,879 |
|
|
43,904 |
|
|
44,550 |
|
|
46,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
CONSOLIDATED BALANCE SHEETS |
(Dollars and shares in thousands) |
(Unaudited) |
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Dec 31, 2015 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
88,171 |
|
|
$ |
84,038 |
|
|
$ |
87,985 |
|
Interest-bearing
deposits in other banks |
116,136 |
|
|
135,977 |
|
|
56,711 |
|
Total cash and cash
equivalents |
204,307 |
|
|
220,015 |
|
|
144,696 |
|
Trading securities |
3,701 |
|
|
3,536 |
|
|
3,013 |
|
Investment securities
available-for-sale at fair value (amortized cost $639,687 $637,072
and $640,455, respectively) |
652,945 |
|
|
650,470 |
|
|
637,329 |
|
Investment securities
held-to-maturity at amortized cost (fair value $474,834 $477,731
and $475,134, respectively) |
466,063 |
|
|
468,943 |
|
|
472,505 |
|
Loans held for
sale |
95,253 |
|
|
6,446 |
|
|
10,569 |
|
Loans, net of deferred
loan costs and fees |
5,840,680 |
|
|
5,738,459 |
|
|
5,622,147 |
|
Less: Allowance for
loan and lease losses |
43,984 |
|
|
44,883 |
|
|
45,034 |
|
Loans, net |
5,796,696 |
|
|
5,693,576 |
|
|
5,577,113 |
|
Other real estate
owned |
46,007 |
|
|
44,236 |
|
|
52,776 |
|
FDIC indemnification
asset |
— |
|
|
— |
|
|
6,725 |
|
Receivable from
FDIC |
— |
|
|
— |
|
|
678 |
|
Premises and equipment,
net |
157,863 |
|
|
158,305 |
|
|
159,149 |
|
Goodwill |
134,522 |
|
|
134,522 |
|
|
134,522 |
|
Intangible assets,
net |
12,288 |
|
|
13,231 |
|
|
15,100 |
|
Deferred income tax
asset, net |
80,418 |
|
|
92,277 |
|
|
105,316 |
|
Other assets |
142,395 |
|
|
135,668 |
|
|
129,988 |
|
Total
Assets |
$ |
7,792,458 |
|
|
$ |
7,621,225 |
|
|
$ |
7,449,479 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing demand |
$ |
1,207,800 |
|
|
$ |
1,172,481 |
|
|
$ |
1,121,160 |
|
Interest bearing demand |
1,463,520 |
|
|
1,456,558 |
|
|
1,382,732 |
|
Money market |
1,291,948 |
|
|
1,155,475 |
|
|
1,190,121 |
|
Savings |
401,205 |
|
|
403,106 |
|
|
418,879 |
|
Time deposits |
1,668,784 |
|
|
1,619,507 |
|
|
1,747,318 |
|
Total deposits |
6,033,257 |
|
|
5,807,127 |
|
|
5,860,210 |
|
Federal Home Loan Bank
advances |
575,751 |
|
|
650,800 |
|
|
460,898 |
|
Short-term
borrowings |
15,428 |
|
|
16,785 |
|
|
12,410 |
|
Long-term
borrowings |
87,445 |
|
|
86,883 |
|
|
85,777 |
|
Accrued expenses and other
liabilities |
50,736 |
|
|
43,132 |
|
|
43,919 |
|
Total
liabilities |
$ |
6,762,617 |
|
|
$ |
6,604,727 |
|
|
$ |
6,463,214 |
|
Shareholders’
equity |
|
|
|
|
|
Preferred stock $0.01 par
value: 50,000 shares authorized, 0 shares issued |
— |
|
|
— |
|
|
— |
|
Common stock-Class A $0.01
par value: 200,000 shares authorized, 37,253issued and 26,381
outstanding, 37,237 issued 26,665 outstanding and 37,012 issued and
26,589 outstanding, respectively. |
373 |
|
|
372 |
|
|
370 |
|
Common stock-Class B $0.01
par value: 200,000 shares authorized, 18,627issued and 16,854
outstanding, 18,327 issued and 16,554 outstanding and 18,327 issued
and 16,554 outstanding, respectively. |
186 |
|
|
183 |
|
|
183 |
|
Additional paid in
capital |
1,078,746 |
|
|
1,077,769 |
|
|
1,076,415 |
|
Retained earnings |
241,554 |
|
|
227,370 |
|
|
208,742 |
|
Accumulated other
comprehensive (loss) income |
7,621 |
|
|
9,443 |
|
|
(5,196 |
) |
Treasury stock, at cost,
12,645, 12,345 and 12,196 shares, respectively |
(298,639 |
) |
|
(298,639 |
) |
|
(294,249 |
) |
Total shareholders’
equity |
1,029,841 |
|
|
1,016,498 |
|
|
986,265 |
|
Total
Liabilities and Shareholders’ Equity |
$ |
7,792,458 |
|
|
$ |
7,621,225 |
|
|
$ |
7,449,479 |
|
|
|
CAPITAL BANK FINANCIAL CORP. |
KEY METRICS |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months Ended |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Performance
Ratios |
|
|
|
|
|
|
|
|
|
Interest rate spread |
3.43 |
% |
|
3.48 |
% |
|
3.50 |
% |
|
3.57 |
% |
|
3.68 |
% |
Net interest margin |
3.58 |
% |
|
3.62 |
% |
|
3.64 |
% |
|
3.70 |
% |
|
3.82 |
% |
Return on average assets |
0.97 |
% |
|
0.93 |
% |
|
0.53 |
% |
|
0.82 |
% |
|
0.86 |
% |
Return on average shareholders'
equity |
7.24 |
% |
|
6.87 |
% |
|
3.96 |
% |
|
5.99 |
% |
|
5.85 |
% |
Efficiency ratio |
63.38 |
% |
|
60.65 |
% |
|
73.42 |
% |
|
65.71 |
% |
|
66.18 |
% |
Average interest-earning assets to
average interest-bearing liabilities |
131.43 |
% |
|
131.21 |
% |
|
129.54 |
% |
|
129.55 |
% |
|
132.10 |
% |
Average loans receivable to average
deposits |
98.46 |
% |
|
96.56 |
% |
|
95.66 |
% |
|
96.68 |
% |
|
96.01 |
% |
Yield on interest-earning
assets |
4.05 |
% |
|
4.09 |
% |
|
4.11 |
% |
|
4.14 |
% |
|
4.26 |
% |
Cost of interest-bearing
liabilities |
0.62 |
% |
|
0.62 |
% |
|
0.62 |
% |
|
0.57 |
% |
|
0.58 |
% |
Asset and
Credit Quality Ratios-Total Loans |
|
|
|
|
|
|
|
|
|
Non-accrual loans |
$ |
11,873 |
|
|
$ |
9,016 |
|
|
$ |
8,526 |
|
|
$ |
8,945 |
|
|
$ |
9,647 |
|
Nonperforming acquired loans |
$ |
48,477 |
|
|
$ |
56,108 |
|
|
$ |
56,041 |
|
|
$ |
59,194 |
|
|
$ |
72,023 |
|
Nonperforming loans to loans
receivable |
1.02 |
% |
|
1.13 |
% |
|
1.15 |
% |
|
1.21 |
% |
|
1.51 |
% |
Nonperforming assets to total
assets |
1.37 |
% |
|
1.44 |
% |
|
1.51 |
% |
|
1.63 |
% |
|
1.88 |
% |
Covered loans to total gross
loans |
— |
% |
|
— |
% |
|
— |
% |
|
1.30 |
% |
|
1.45 |
% |
ALLL to nonperforming assets |
41.29 |
% |
|
40.98 |
% |
|
39.97 |
% |
|
37.13 |
% |
|
33.88 |
% |
ALLL to total gross loans |
0.75 |
% |
|
0.78 |
% |
|
0.80 |
% |
|
0.80 |
% |
|
0.86 |
% |
Annualized net charge-offs/average
loans |
0.10 |
% |
|
0.11 |
% |
|
0.08 |
% |
|
0.17 |
% |
|
0.20 |
% |
Asset and
Credit Quality Ratios-New Loans |
|
|
|
|
|
|
|
|
|
Nonperforming new loans to total
new loans receivable |
0.19 |
% |
|
0.12 |
% |
|
0.11 |
% |
|
0.11 |
% |
|
0.17 |
% |
New loans ALLL to total gross new
loans |
0.43 |
% |
|
0.46 |
% |
|
0.47 |
% |
|
0.47 |
% |
|
0.51 |
% |
Asset and
Credit Quality Ratios-Acquired Loans |
|
|
|
|
|
|
|
|
|
Nonperforming acquired loans to
total acquired loans receivable |
4.65 |
% |
|
5.08 |
% |
|
4.67 |
% |
|
4.69 |
% |
|
5.21 |
% |
Covered acquired loans to total
gross acquired loans |
— |
% |
|
— |
% |
|
— |
% |
|
5.43 |
% |
|
5.45 |
% |
Acquired loans ALLL to total gross
acquired loans |
2.15 |
% |
|
2.04 |
% |
|
1.93 |
% |
|
1.83 |
% |
|
1.80 |
% |
Capital Ratios
(Company) |
|
|
|
|
|
|
|
|
|
Total average shareholders' equity
to total average assets |
13.46 |
% |
|
13.55 |
% |
|
13.35 |
% |
|
13.67 |
% |
|
14.79 |
% |
Tangible common equity ratio
(1) |
11.55 |
% |
|
11.62 |
% |
|
11.57 |
% |
|
11.46 |
% |
|
12.26 |
% |
Tier 1 leverage capital ratio |
12.89 |
% |
|
12.64 |
% |
|
12.49 |
% |
|
12.67 |
% |
|
13.60 |
% |
Tier 1 common capital ratio |
13.27 |
% |
|
13.38 |
% |
|
13.38 |
% |
|
14.73 |
% |
|
14.44 |
% |
Tier 1 risk-based capital
ratio |
14.44 |
% |
|
14.57 |
% |
|
14.58 |
% |
|
13.63 |
% |
|
15.60 |
% |
Total risk-based capital ratio |
15.12 |
% |
|
15.29 |
% |
|
15.32 |
% |
|
15.47 |
% |
|
16.38 |
% |
Capital Ratios
(Bank) |
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
(1) |
10.74 |
% |
|
10.71 |
% |
|
11.45 |
% |
|
11.20 |
% |
|
11.36 |
% |
Tier 1 leverage capital ratio |
10.53 |
% |
|
10.42 |
% |
|
11.10 |
% |
|
11.09 |
% |
|
11.19 |
% |
Tier 1 common capital ratio |
11.98 |
% |
|
11.97 |
% |
|
12.95 |
% |
|
12.89 |
% |
|
12.85 |
% |
Tier 1 risk-based capital
ratio |
11.98 |
% |
|
11.97 |
% |
|
12.95 |
% |
|
12.89 |
% |
|
12.85 |
% |
Total risk-based capital ratio |
12.70 |
% |
|
12.72 |
% |
|
13.72 |
% |
|
13.68 |
% |
|
13.69 |
% |
(1) See "Reconciliation of Non-GAAP Measures"
|
|
CAPITAL BANK FINANCIAL CORP. |
LOANS AND DEPOSITS |
(Dollars in thousands) |
(Unaudited) |
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Loans |
|
|
|
|
|
|
|
|
|
Non-owner occupied
commercial real estate |
$ |
920,521 |
|
|
$ |
891,830 |
|
|
$ |
850,766 |
|
|
$ |
866,392 |
|
|
$ |
847,225 |
|
Other commercial
construction and land |
222,794 |
|
|
212,315 |
|
|
194,971 |
|
|
196,795 |
|
|
192,283 |
|
Multifamily commercial
real estate |
76,296 |
|
|
74,328 |
|
|
75,737 |
|
|
80,708 |
|
|
82,762 |
|
1-4 family residential
construction and land |
111,954 |
|
|
100,306 |
|
|
96,703 |
|
|
93,242 |
|
|
87,193 |
|
Total commercial
real estate |
1,331,565 |
|
|
1,278,779 |
|
|
1,218,177 |
|
|
1,237,137 |
|
|
1,209,463 |
|
Owner occupied commercial
real estate |
1,072,586 |
|
|
1,075,306 |
|
|
1,095,460 |
|
|
1,104,972 |
|
|
1,065,875 |
|
Commercial and
industrial |
1,458,523 |
|
|
1,448,698 |
|
|
1,375,233 |
|
|
1,309,704 |
|
|
1,219,101 |
|
Lease financing |
525 |
|
|
877 |
|
|
1,088 |
|
|
1,256 |
|
|
1,488 |
|
Total
commercial |
2,531,634 |
|
|
2,524,881 |
|
|
2,471,781 |
|
|
2,415,932 |
|
|
2,286,464 |
|
1-4 family
residential |
1,168,468 |
|
|
1,039,309 |
|
|
1,015,071 |
|
|
1,017,791 |
|
|
985,982 |
|
Home equity loans |
364,117 |
|
|
364,169 |
|
|
368,510 |
|
|
375,276 |
|
|
373,993 |
|
Indirect auto loans |
254,736 |
|
|
285,618 |
|
|
317,863 |
|
|
351,817 |
|
|
318,841 |
|
Other consumer loans |
94,277 |
|
|
85,964 |
|
|
84,108 |
|
|
84,661 |
|
|
82,483 |
|
Total
consumer |
1,881,598 |
|
|
1,775,060 |
|
|
1,785,552 |
|
|
1,829,545 |
|
|
1,761,299 |
|
Other |
191,136 |
|
|
166,185 |
|
|
159,447 |
|
|
150,102 |
|
|
147,718 |
|
Total
loans |
$ |
5,935,933 |
|
|
$ |
5,744,905 |
|
|
$ |
5,634,957 |
|
|
$ |
5,632,716 |
|
|
$ |
5,404,944 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand |
$ |
1,207,800 |
|
|
$ |
1,172,481 |
|
|
$ |
1,190,831 |
|
|
$ |
1,121,160 |
|
|
$ |
1,099,252 |
|
Interest bearing
demand |
1,463,520 |
|
|
1,456,558 |
|
|
1,402,342 |
|
|
1,382,732 |
|
|
1,251,365 |
|
Money market |
1,166,918 |
|
|
1,105,460 |
|
|
1,162,546 |
|
|
1,040,086 |
|
|
927,391 |
|
Savings |
401,205 |
|
|
403,106 |
|
|
420,073 |
|
|
418,879 |
|
|
436,385 |
|
Total core
deposits |
4,239,443 |
|
|
4,137,605 |
|
|
4,175,792 |
|
|
3,962,857 |
|
|
3,714,393 |
|
Wholesale money
market |
125,030 |
|
|
50,015 |
|
|
100,035 |
|
|
150,035 |
|
|
78,015 |
|
Time deposits |
1,668,784 |
|
|
1,619,507 |
|
|
1,663,906 |
|
|
1,747,318 |
|
|
1,773,170 |
|
Total
deposits |
$ |
6,033,257 |
|
|
$ |
5,807,127 |
|
|
$ |
5,939,733 |
|
|
$ |
5,860,210 |
|
|
$ |
5,565,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
LEGACY CREDIT EXPENSES |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months Ended |
|
Sep 30,2016 |
|
June 30,2016 |
|
Mar 31,2016 |
|
Dec 31,2015 |
|
Sep 30,2015 |
Provision (reversal) on
legacy loans |
$ |
48 |
|
|
$ |
(778 |
) |
|
$ |
9 |
|
|
$ |
(1,161 |
) |
|
$ |
492 |
|
FDIC indemnification
asset expense |
— |
|
|
— |
|
|
— |
|
|
1,526 |
|
|
1,418 |
|
OREO valuation
expense |
742 |
|
|
1,119 |
|
|
467 |
|
|
341 |
|
|
2,075 |
|
Termination of loss
share agreements |
— |
|
|
— |
|
|
9,178 |
|
|
— |
|
|
— |
|
Net gains on sales of
OREO |
(159 |
) |
|
(413 |
) |
|
(679 |
) |
|
(801 |
) |
|
(351 |
) |
Foreclosed asset
related expense |
397 |
|
|
399 |
|
|
285 |
|
|
405 |
|
|
872 |
|
Loan workout
expense |
206 |
|
|
71 |
|
|
244 |
|
|
650 |
|
|
194 |
|
Salaries and employee
benefits |
511 |
|
|
519 |
|
|
522 |
|
|
549 |
|
|
797 |
|
Total legacy
credit expenses |
$ |
1,745 |
|
|
$ |
917 |
|
|
$ |
10,026 |
|
|
$ |
1,509 |
|
|
$ |
5,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
QUARTERLY AVERAGE BALANCES AND YIELDS |
(Dollars in thousands) |
(Unaudited) |
|
|
|
Three Months Ended September 30,
2016 |
|
Three Months Ended June 30, 2016 |
|
|
Average Balances |
|
Interest |
|
Yield /Rate |
|
Average Balances |
|
Interest |
|
Yield /Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
5,786,171 |
|
|
$ |
64,055 |
|
|
4.40 |
% |
|
$ |
5,653,647 |
|
|
$ |
62,999 |
|
|
4.48 |
% |
Investment securities (1) |
|
1,133,031 |
|
|
6,924 |
|
|
2.43 |
% |
|
1,131,791 |
|
|
6,612 |
|
|
2.35 |
% |
Interest bearing deposits in other
banks |
|
60,373 |
|
|
69 |
|
|
0.45 |
% |
|
64,802 |
|
|
74 |
|
|
0.46 |
% |
Other earning assets (2) |
|
29,788 |
|
|
337 |
|
|
4.50 |
% |
|
26,696 |
|
|
330 |
|
|
4.97 |
% |
Total interest earning
assets |
|
7,009,363 |
|
|
$ |
71,385 |
|
|
4.05 |
% |
|
6,876,936 |
|
|
$ |
70,015 |
|
|
4.09 |
% |
Non-interest earning
assets |
|
583,413 |
|
|
|
|
|
|
607,429 |
|
|
|
|
|
Total assets |
|
$ |
7,592,776 |
|
|
|
|
|
|
$ |
7,484,365 |
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
$ |
1,613,502 |
|
|
$ |
3,992 |
|
|
0.98 |
% |
|
$ |
1,620,023 |
|
|
$ |
4,018 |
|
|
1.00 |
% |
Money market |
|
1,225,743 |
|
|
1,132 |
|
|
0.37 |
% |
|
1,184,532 |
|
|
1,028 |
|
|
0.35 |
% |
Interest bearing demand |
|
1,444,305 |
|
|
752 |
|
|
0.21 |
% |
|
1,451,666 |
|
|
749 |
|
|
0.21 |
% |
Savings |
|
404,187 |
|
|
205 |
|
|
0.20 |
% |
|
411,496 |
|
|
208 |
|
|
0.20 |
% |
Total interest bearing
deposits |
|
4,687,737 |
|
|
6,081 |
|
|
0.52 |
% |
|
4,667,717 |
|
|
6,003 |
|
|
0.52 |
% |
Short-term borrowings and
FHLB advances |
|
558,313 |
|
|
635 |
|
|
0.45 |
% |
|
485,850 |
|
|
515 |
|
|
0.43 |
% |
Long-term borrowings |
|
87,095 |
|
|
1,586 |
|
|
7.24 |
% |
|
87,496 |
|
|
1,547 |
|
|
7.11 |
% |
Total interest bearing
liabilities |
|
5,333,145 |
|
|
8,302 |
|
|
0.62 |
% |
|
5,241,063 |
|
|
8,065 |
|
|
0.62 |
% |
Non-interest bearing
demand |
|
1,188,771 |
|
|
|
|
|
|
1,187,056 |
|
|
|
|
|
Other liabilities |
|
48,997 |
|
|
|
|
|
|
42,319 |
|
|
|
|
|
Shareholders’ equity |
|
1,021,863 |
|
|
|
|
|
|
1,013,927 |
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
7,592,776 |
|
|
|
|
|
|
$ |
7,484,365 |
|
|
|
|
|
Net interest income and
spread |
|
|
|
$ |
63,083 |
|
|
3.43 |
% |
|
|
|
$ |
61,950 |
|
|
3.48 |
% |
Net interest
margin |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.62 |
% |
(1) Presented on a fully tax equivalent basis(2) Includes
Federal Home Loan Bank stocks
|
|
CAPITAL BANK FINANCIAL CORP. |
QUARTERLY AVERAGE BALANCES AND YIELDS |
(Dollars in thousands) |
(Unaudited) |
|
|
|
Three Months Ended September 30,
2016 |
|
Three Months Ended September 30,
2015 |
|
|
Average Balances |
|
Interest |
|
Yield /Rate |
|
Average Balances |
|
Interest |
|
Yield /Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
5,786,171 |
|
|
$ |
64,055 |
|
|
4.40 |
% |
|
$ |
5,261,793 |
|
|
$ |
62,461 |
|
|
4.71 |
% |
Investment securities (1) |
|
1,133,031 |
|
|
6,924 |
|
|
2.43 |
% |
|
1,088,818 |
|
|
5,885 |
|
|
2.14 |
% |
Interest bearing deposits in other
banks |
|
60,373 |
|
|
69 |
|
|
0.45 |
% |
|
36,596 |
|
|
19 |
|
|
0.21 |
% |
Other earning assets (2) |
|
29,788 |
|
|
337 |
|
|
4.50 |
% |
|
54,960 |
|
|
760 |
|
|
5.49 |
% |
Total interest earning
assets |
|
7,009,363 |
|
|
$ |
71,385 |
|
|
4.05 |
% |
|
6,442,167 |
|
|
$ |
69,125 |
|
|
4.26 |
% |
Non-interest earning
assets |
|
583,413 |
|
|
|
|
|
|
645,715 |
|
|
|
|
|
Total assets |
|
$ |
7,592,776 |
|
|
|
|
|
|
$ |
7,087,882 |
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
$ |
1,613,502 |
|
|
$ |
3,992 |
|
|
0.98 |
% |
|
$ |
1,642,745 |
|
|
$ |
3,957 |
|
|
0.96 |
% |
Money market |
|
1,225,743 |
|
|
1,132 |
|
|
0.37 |
% |
|
977,273 |
|
|
658 |
|
|
0.27 |
% |
Interest bearing demand |
|
1,444,305 |
|
|
752 |
|
|
0.21 |
% |
|
1,291,439 |
|
|
540 |
|
|
0.17 |
% |
Savings |
|
404,187 |
|
|
205 |
|
|
0.20 |
% |
|
452,058 |
|
|
241 |
|
|
0.21 |
% |
Total interest bearing
deposits |
|
4,687,737 |
|
|
6,081 |
|
|
0.52 |
% |
|
4,363,515 |
|
|
5,396 |
|
|
0.49 |
% |
Short-term borrowings and
FHLB advances |
|
558,313 |
|
|
635 |
|
|
0.45 |
% |
|
428,249 |
|
|
272 |
|
|
0.25 |
% |
Long-term borrowings |
|
87,095 |
|
|
1,586 |
|
|
7.24 |
% |
|
84,922 |
|
|
1,413 |
|
|
6.60 |
% |
Total interest bearing
liabilities |
|
5,333,145 |
|
|
8,302 |
|
|
0.62 |
% |
|
4,876,686 |
|
|
7,081 |
|
|
0.58 |
% |
Non-interest bearing
demand |
|
1,188,771 |
|
|
|
|
|
|
1,116,757 |
|
|
|
|
|
Other liabilities |
|
48,997 |
|
|
|
|
|
|
46,117 |
|
|
|
|
|
Shareholders’ equity |
|
1,021,863 |
|
|
|
|
|
|
1,048,322 |
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
7,592,776 |
|
|
|
|
|
|
$ |
7,087,882 |
|
|
|
|
|
Net interest income and
spread |
|
|
|
$ |
63,083 |
|
|
3.43 |
% |
|
|
|
$ |
62,044 |
|
|
3.68 |
% |
Net interest
margin |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.82 |
% |
|
|
Nine Months Ended September 30,
2016 |
|
Nine Months Ended September 30,
2015 |
|
|
Average Balances |
|
Interest |
|
Yield /Rate |
|
Average Balances |
|
Interest |
|
Yield /Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
$ |
5,684,143 |
|
|
$ |
190,063 |
|
|
4.47 |
% |
|
$ |
5,129,607 |
|
|
$ |
184,889 |
|
|
4.82 |
% |
Investment securities (1) |
|
1,129,129 |
|
|
20,020 |
|
|
2.37 |
% |
|
1,047,451 |
|
|
16,324 |
|
|
2.08 |
% |
Interest bearing deposits in other
banks |
|
66,100 |
|
|
227 |
|
|
0.46 |
% |
|
50,187 |
|
|
88 |
|
|
0.23 |
% |
Other earning assets (2) |
|
27,216 |
|
|
981 |
|
|
4.81 |
% |
|
51,167 |
|
|
2,093 |
|
|
5.47 |
% |
Total interest earning
assets |
|
6,906,588 |
|
|
$ |
211,291 |
|
|
4.09 |
% |
|
6,278,412 |
|
|
$ |
203,394 |
|
|
4.33 |
% |
Non-interest earning
assets |
|
602,904 |
|
|
|
|
|
|
665,016 |
|
|
|
|
|
Total assets |
|
$ |
7,509,492 |
|
|
|
|
|
|
$ |
6,943,428 |
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
$ |
1,640,959 |
|
|
$ |
12,130 |
|
|
0.99 |
% |
|
$ |
1,506,488 |
|
|
$ |
10,357 |
|
|
0.92 |
% |
Money market |
|
1,219,227 |
|
|
3,227 |
|
|
0.35 |
% |
|
945,170 |
|
|
1,811 |
|
|
0.26 |
% |
Interest bearing demand |
|
1,422,389 |
|
|
2,149 |
|
|
0.20 |
% |
|
1,356,300 |
|
|
1,710 |
|
|
0.17 |
% |
Savings |
|
411,729 |
|
|
640 |
|
|
0.21 |
% |
|
477,698 |
|
|
765 |
|
|
0.21 |
% |
Total interest bearing
deposits |
|
4,694,304 |
|
|
$ |
18,146 |
|
|
0.52 |
% |
|
4,285,656 |
|
|
$ |
14,643 |
|
|
0.46 |
% |
Short-term borrowings and
FHLB advances |
|
501,892 |
|
|
1,680 |
|
|
0.45 |
% |
|
336,791 |
|
|
597 |
|
|
0.24 |
% |
Long-term borrowings |
|
86,860 |
|
|
4,644 |
|
|
7.14 |
% |
|
116,922 |
|
|
4,784 |
|
|
5.47 |
% |
Total interest bearing
liabilities |
|
5,283,056 |
|
|
24,470 |
|
|
0.62 |
% |
|
4,739,369 |
|
|
20,024 |
|
|
0.56 |
% |
Non-interest bearing
demand |
|
1,171,599 |
|
|
|
|
|
|
1,102,393 |
|
|
|
|
|
Other liabilities |
|
44,594 |
|
|
|
|
|
|
44,891 |
|
|
|
|
|
Shareholders’ equity |
|
1,010,244 |
|
|
|
|
|
|
1,056,775 |
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
7,509,493 |
|
|
|
|
|
|
$ |
6,943,428 |
|
|
|
|
|
Net interest income and
spread |
|
|
|
$ |
186,821 |
|
|
3.47 |
% |
|
|
|
$ |
183,370 |
|
|
3.77 |
% |
Net interest
margin |
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.90 |
% |
(1) Presented on a fully tax equivalent basis(2) Includes
Federal Home Loan Bank stocks
|
|
CAPITAL BANK FINANCIAL CORP. |
RECONCILIATION OF NON-GAAP
MEASURES |
(Dollars in thousands) |
(Unaudited) |
|
CORE NET
INCOME |
|
Three Months Ended |
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Dec 31, 2015 |
Net
Income |
|
$ |
18,488 |
|
|
$ |
18,488 |
|
|
$ |
17,402 |
|
|
$ |
17,402 |
|
|
$ |
15,021 |
|
|
$ |
15,021 |
|
|
|
Pre-Tax |
|
After-Tax |
|
Pre-Tax |
|
After-Tax |
|
Pre-Tax |
|
After-Tax |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
Security (gains) losses* |
|
(71 |
) |
|
(44 |
) |
|
(117 |
) |
|
(72 |
) |
|
(54 |
) |
|
(33 |
) |
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Legal Settlement |
|
1,500 |
|
|
927 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Tax Adjustment |
|
(1,067 |
) |
|
(1,067 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Restructuring expense* |
|
(113 |
) |
|
(70 |
) |
|
5 |
|
|
3 |
|
|
32 |
|
|
20 |
|
Conversion costs and merger tax
deductible* |
|
331 |
|
|
205 |
|
|
881 |
|
|
544 |
|
|
33 |
|
|
20 |
|
Legal merger non deductible |
|
61 |
|
|
61 |
|
|
355 |
|
|
355 |
|
|
673 |
|
|
673 |
|
Contract termination* |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,215 |
|
|
2,594 |
|
Tax effect of adjustments* |
|
(629 |
) |
|
N/A |
|
(294 |
) |
|
N/A |
|
(1,625 |
) |
|
N/A |
Core Net
Income |
|
$ |
18,500 |
|
|
$ |
18,500 |
|
|
$ |
18,232 |
|
|
$ |
18,232 |
|
|
$ |
18,295 |
|
|
$ |
18,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
43,909 |
|
|
|
|
43,879 |
|
|
|
|
44,550 |
|
|
|
Core Net Income per share |
|
$ |
0.42 |
|
|
|
|
$ |
0.42 |
|
|
|
|
$ |
0.41 |
|
|
|
Average Assets |
|
7,592,776 |
|
|
|
|
7,484,365 |
|
|
|
|
7,332,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROA** |
|
0.97 |
% |
|
|
|
0.93 |
% |
|
|
|
0.82 |
% |
|
|
Core ROA*** |
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
1.00 |
% |
|
|
* Tax effected at an income tax rate of 38%
** ROA: Annualized net income / Average assets*** Core ROA:
Annualized core net income / Average assets
|
|
CAPITAL BANK FINANCIAL CORP. |
RECONCILIATION OF NON-GAAP MEASURES
(Continuation) |
(Dollars in thousands) |
(Unaudited) |
|
CORE EFFICIENCY
RATIO |
Three Months Ended |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Net interest
income |
$ |
62,627 |
|
|
$ |
61,515 |
|
|
$ |
61,367 |
|
|
$ |
62,078 |
|
|
$ |
61,637 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
income |
12,370 |
|
|
11,922 |
|
|
2,566 |
|
|
10,597 |
|
|
11,418 |
|
Indemnification asset
termination |
— |
|
|
— |
|
|
(9,178 |
) |
|
— |
|
|
— |
|
Less: Securities gains
(losses) |
71 |
|
|
117 |
|
|
40 |
|
|
54 |
|
|
(43 |
) |
Core non-interest income |
$ |
12,299 |
|
|
$ |
11,805 |
|
|
$ |
11,704 |
|
|
$ |
10,543 |
|
|
$ |
11,461 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
expense |
$ |
47,530 |
|
|
$ |
44,536 |
|
|
$ |
46,938 |
|
|
$ |
47,756 |
|
|
$ |
48,346 |
|
Less: Severance expense |
— |
|
|
— |
|
|
75 |
|
|
— |
|
|
63 |
|
Conversion costs and merger tax
deductible |
331 |
|
|
881 |
|
|
1,107 |
|
|
33 |
|
|
— |
|
Legal settlement |
1,500 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Legal merger non deductible |
61 |
|
|
355 |
|
|
580 |
|
|
— |
|
|
— |
|
Restructuring expense |
(113 |
) |
|
5 |
|
|
142 |
|
|
— |
|
|
23 |
|
Contract termination |
— |
|
|
— |
|
|
— |
|
|
4,215 |
|
|
— |
|
Conversion and severance expenses
(conversion and merger expenses and salaries and employees
benefits) |
— |
|
|
— |
|
|
— |
|
|
704 |
|
|
— |
|
Core
non-interest expense |
$ |
45,751 |
|
|
$ |
43,295 |
|
|
$ |
45,034 |
|
|
$ |
42,804 |
|
|
$ |
48,260 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio* |
63.38 |
% |
|
60.65 |
% |
|
73.42 |
% |
|
65.71 |
% |
|
66.18 |
% |
Core efficiency
ratio** |
61.06 |
% |
|
59.05 |
% |
|
61.63 |
% |
|
58.94 |
% |
|
66.02 |
% |
* Efficiency Ratio: Non-interest expense /
(Non-interest income + Net interest income) ** Core
Efficiency Ratio: Core non-interest expense / (Core non-interest
income + Net interest income)
|
|
CAPITAL BANK FINANCIAL CORP. |
RECONCILIATION OF NON-GAAP MEASURES
(Continuation) |
(Dollars and shares in thousands, except per
share data) |
(Unaudited) |
|
TANGIBLE BOOK
VALUE |
|
Three Months Ended |
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Total shareholders'
equity |
|
$ |
1,029,841 |
|
|
$ |
1,016,498 |
|
|
$ |
996,993 |
|
|
$ |
986,265 |
|
|
$ |
1,022,642 |
|
Less: goodwill and
intangible assets, net of taxes |
|
(142,141 |
) |
|
(142,725 |
) |
|
(143,304 |
) |
|
(143,863 |
) |
|
(144,447 |
) |
Tangible book
value* |
|
$ |
887,700 |
|
|
$ |
873,773 |
|
|
$ |
853,689 |
|
|
$ |
842,402 |
|
|
$ |
878,195 |
|
Common shares
outstanding |
|
43,235 |
|
|
43,219 |
|
|
43,189 |
|
|
43,143 |
|
|
44,466 |
|
Tangible book
value per share |
|
$ |
20.53 |
|
|
$ |
20.22 |
|
|
$ |
19.77 |
|
|
$ |
19.53 |
|
|
$ |
19.75 |
|
* Tangible book value is equal to book value less
goodwill and core deposit intangibles, net of related deferred tax
liabilities.
TANGIBLE COMMON
EQUITY RATIO |
|
Three Months Ended |
|
|
Sep 30, 2016 |
|
Jun 30, 2016 |
|
Mar 31, 2016 |
|
Dec 31, 2015 |
|
Sep 30, 2015 |
Total shareholders'
equity |
|
$ |
1,029,841 |
|
|
$ |
1,016,498 |
|
|
$ |
996,993 |
|
|
$ |
986,265 |
|
|
$ |
1,022,642 |
|
Less: goodwill and
intangible assets |
|
(146,810 |
) |
|
(147,753 |
) |
|
(148,688 |
) |
|
(149,622 |
) |
|
(150,567 |
) |
Tangible common
equity |
|
$ |
883,031 |
|
|
$ |
868,745 |
|
|
$ |
848,305 |
|
|
$ |
836,643 |
|
|
$ |
872,075 |
|
Total assets |
|
$ |
7,792,458 |
|
|
$ |
7,621,225 |
|
|
$ |
7,479,798 |
|
|
$ |
7,449,479 |
|
|
$ |
7,261,196 |
|
Less: goodwill and
intangible assets |
|
(146,810 |
) |
|
(147,753 |
) |
|
(148,688 |
) |
|
(149,622 |
) |
|
(150,567 |
) |
Tangible assets |
|
$ |
7,645,648 |
|
|
$ |
7,473,472 |
|
|
$ |
7,331,110 |
|
|
$ |
7,299,857 |
|
|
$ |
7,110,629 |
|
Tangible common
equity ratio |
|
11.55 |
% |
|
11.62 |
% |
|
11.57 |
% |
|
11.46 |
% |
|
12.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
Kenneth A. Posner
Chief of Strategic Planning and Investor Relations
Phone: (212) 399-4020
E-mail: Kposner@cbfcorp.com
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