Capital Bank Financial Corp. (Nasdaq:CBF) (the “Company”) today
reported second quarter GAAP net income of $23.8 million, which
increased 14% quarter over quarter. GAAP net income per diluted
share was $0.45. Core net income increased to $26.7 million, up 12%
quarter over quarter. Core net income per diluted share was
$0.50. Core pre-tax adjustments for the second quarter of
2017 included $3.0 million of branch closure expenses and $1.0
million of merger related expenses, offset by $0.1 million net gain
on investment securities. The reconciliation of non-GAAP financial
measures (including core net income, core net income per diluted
share, and core ROA) are included in tabular form at the end of
this release.
Highlights of the quarter include:
- Announcement of a definitive agreement to merge with First
Horizon National Corporation;
- GAAP ROA of 0.95%, up 11 bps quarter over quarter and core ROA
of 1.06%, up 10 bps quarter over quarter;
- GAAP efficiency ratio of 60.2%; and
- Declared quarterly dividend of $0.12 per common share.
“We are very excited about joining with First Horizon in
creating a $40 billion regional bank with strong growth and high
returns. Comprehensive pre-merger integration planning is off to a
fast start,” said Gene Taylor, Chairman and Chief Executive Officer
of Capital Bank Financial Corp.
“We are pleased with this quarter's results
which demonstrated very significant progress toward our
profitability and return targets for 2017. We continue to execute
on cost savings initiatives and are well-positioned to carry our
momentum into the second half of the year,” added Chris Marshall,
Chief Financial Officer of Capital Bank Financial Corp.
Loan Portfolio and Composition
During the second quarter, the loan portfolio
increased by $58.2 million to $7.6 billion, consisting of a $95.4
million increase in commercial real estate and commercial and
industrial loans, a $43.9 million decrease in consumer loans, and a
$6.7 million increase in other loans. New loan production of
$481.9 million was in line with plan and partially offset by strong
special assets resolutions of $42.8 million, continued run-off of
the prime indirect loan portfolio of $25.1 million, and the sale of
$14.1 million in loans.
The relative composition of the Company’s loan
portfolio at the end of the second and first quarter of 2017 and
fourth quarter of 2016 was as follows:
|
|
|
|
|
|
|
|
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
Commercial real
estate |
|
26 |
% |
|
24 |
% |
|
23 |
% |
C&I |
|
36 |
% |
|
37 |
% |
|
38 |
% |
Consumer |
|
35 |
% |
|
36 |
% |
|
36 |
% |
Other |
|
3 |
% |
|
3 |
% |
|
3 |
% |
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
Deposits Composition and Cost of Funds
During the second quarter, total deposits
decreased by $17.6 million to $8.1 billion. The quarterly average
balance on deposits, which is less sensitive to individual customer
activity, increased by $65.2 million. Contributing to the
fluctuation in deposits was a commercial deposit of $50.1 million
that was recorded late in the first quarter and subsequently
withdrawn early in the second quarter. The cost of total deposits
increased by two basis points sequentially to 0.41%, and was flat
year over year, as the Company continues to implement carefully
targeted pricing strategies.
Net Interest Income and Net Interest
Margin
Net interest income increased $3.1 million to
$85.2 million from $82.1 million for the first quarter of 2017 and
increased $23.7 million from $61.5 million for the second quarter
of 2016. The net interest margin for the second quarter of 2017 was
3.75%, an increase of two basis points sequentially and 13 basis
points year over year.
Non-Interest Income
Non-interest income increased $0.1 million to
$16.0 million from $15.9 million for the first quarter of 2017 and
increased $4.1 million from $11.9 million for the second quarter of
2016. The sequential increase was mainly driven by a $0.3
million increase in debit card income that was partially offset by
a $0.1 million decrease in service charges on deposit accounts. The
year over year increase was mainly due to the acquisition of
CommunityOne and includes a $1.8 million increase in debit card
income, a $1.4 million increase in other income (includes BOLI,
credit card and merchant service income), and a $0.8 million
increase in service charges.
Provision for Loan and Lease Losses and Credit
Quality
The provision of $2.3 million recorded for the
second quarter of 2017 included a $1.5 million provision for
non-purchased credit impaired loans and a $0.8 million provision on
purchased credit impaired loans. Net charge-offs for the second
quarter of 2017 were $1.6 million, $1.0 million lower than the
first quarter of 2017.
At June 30, 2017, the allowance for loan
and lease losses was $44.6 million of which $24.0 million related
to purchase credit impaired loans and $20.6 million related to
non-purchased credit impaired loans. The allowance for loan and
lease losses represents 0.59% of the Company’s total $7.6 billion
loan portfolio.
At June 30, 2017, non-performing loans were
$68.2 million, or 0.90% of loans, and decreased 4.7% from
March 31, 2017, mainly as a result of resolutions and
upgrades. The balance on non-performing loans increased 4.8% from
June 30, 2016, due primarily to the acquisition of
CommunityOne.
Non-Interest Expense
Non-interest expense declined $1.7 million to
$61.0 million from $62.7 million for the first quarter of 2017 and
increased $16.5 million from $44.5 million for the second quarter
of 2016. The sequential decrease was mainly due to a decrease
of $2.1 million in conversion and merger expense and $1.5 million
in salaries and benefits. Partially offsetting the decrease was a
$1.1 million increase in restructuring charges. The year over year
increase was mainly due to increases of $7.5 million in salaries
and benefit expense, $3.0 million in restructuring charges, and
$1.5 million in occupancy and equipment expense, which were mostly
related to the acquisition of CommunityOne. The Company benefited
from cost savings associated with the integration of CommunityOne
and continues to review opportunities for additional cost
savings.
Income Tax Expense
Income tax expense was $14.1 million for the
second quarter of 2017 with an effective tax rate of 37%, compared
to $11.0 million and 34% for the first quarter of 2017. Income tax
expense was $10.3 million and an effective tax rate of 37% for the
second quarter of 2016.
Financial Position
Total assets decreased by $4.3 million to $10.1
billion as of June 30, 2017, from $10.1 billion as of
March 31, 2017. During the quarter, the Company’s loan
portfolio increased $58.2 million to $7.6 billion. Total
deposits decreased by $17.6 million to $8.1 billion. Core deposits
include all checking, savings and money market accounts, excluding
brokered, and represent 71% of total deposits. FHLB borrowings
decreased $20.1 million. Book value per share was $25.62 as of
June 30, 2017, an increase of $0.45 and $2.10 from
March 31, 2017 and June 30, 2016, respectively. Tangible
book value per share was $20.76 as of June 30, 2017, an
increase of $0.47 and $0.54 from March 31, 2017 and
June 30, 2016, respectively. During the second quarter, the
Company did not repurchase shares of common stock. The Company has
$88 million remaining under the current board authorized stock
repurchase program. The reconciliation of non-GAAP financial
measures (including tangible book value and tangible book value per
share) are included in tabular form at the end of this release.
The Company declared a cash dividend of $0.12
per share, payable on August 21, 2017, to shareholders of record as
of August 7, 2017.
Adoption of New Accounting
Guidance
The Company elected to early adopt ASU 2016-09
in the fourth quarter of 2016, which addresses, among other items,
the accounting for income taxes and forfeitures. Upon adoption,
excess tax benefits generated when stock awards vest or settle are
no longer recognized in equity but are instead recognized as a
reduction to provision for income taxes. The Company reflected the
adjustments on a modified prospective basis as of January 1, 2016,
the beginning of the annual period that includes the interim period
of adoption.
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,
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 the most directly comparable GAAP measure.
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 $10.1 billion in total assets as of
June 30, 2017, and 189 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 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
Interest and dividend
income |
$ |
97,286 |
|
|
$ |
92,937 |
|
|
$ |
87,746 |
|
|
$ |
70,929 |
|
|
$ |
69,579 |
|
Interest expense |
12,044 |
|
|
10,821 |
|
|
9,927 |
|
|
8,302 |
|
|
8,064 |
|
Net interest
income |
85,242 |
|
|
82,116 |
|
|
77,819 |
|
|
62,627 |
|
|
61,515 |
|
Provision for loan and
lease losses |
2,303 |
|
|
3,392 |
|
|
1,980 |
|
|
586 |
|
|
1,172 |
|
Net interest income
after provision for loan and lease losses |
82,939 |
|
|
78,724 |
|
|
75,839 |
|
|
62,041 |
|
|
60,343 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
5,237 |
|
|
5,375 |
|
|
5,949 |
|
|
4,777 |
|
|
4,486 |
|
Debit card income |
5,051 |
|
|
4,765 |
|
|
4,211 |
|
|
3,389 |
|
|
3,235 |
|
Fees on mortgage loans
originated and sold |
1,150 |
|
|
1,248 |
|
|
1,402 |
|
|
1,334 |
|
|
1,140 |
|
Investment advisory and
trust fees |
596 |
|
|
641 |
|
|
591 |
|
|
290 |
|
|
455 |
|
Investment securities
gains, net |
70 |
|
|
67 |
|
|
1,894 |
|
|
71 |
|
|
117 |
|
Other income |
3,896 |
|
|
3,756 |
|
|
2,969 |
|
|
2,509 |
|
|
2,489 |
|
Total non-interest
income |
16,000 |
|
|
15,852 |
|
|
17,016 |
|
|
12,370 |
|
|
11,922 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
27,662 |
|
|
29,166 |
|
|
26,134 |
|
|
20,935 |
|
|
20,139 |
|
Stock-based
compensation expense |
964 |
|
|
900 |
|
|
531 |
|
|
790 |
|
|
467 |
|
Net occupancy and
equipment expense |
8,826 |
|
|
8,992 |
|
|
8,374 |
|
|
7,340 |
|
|
7,355 |
|
Computer services |
4,280 |
|
|
3,873 |
|
|
4,364 |
|
|
3,153 |
|
|
3,274 |
|
Software expense |
2,573 |
|
|
2,662 |
|
|
2,391 |
|
|
1,948 |
|
|
2,000 |
|
Telecommunication
expense |
1,939 |
|
|
2,424 |
|
|
2,147 |
|
|
1,790 |
|
|
1,558 |
|
OREO valuation
expense |
262 |
|
|
247 |
|
|
677 |
|
|
742 |
|
|
1,119 |
|
Net gains on sales of
OREO |
(204 |
) |
|
(308 |
) |
|
(150 |
) |
|
(159 |
) |
|
(413 |
) |
Foreclosed asset
related expense |
376 |
|
|
364 |
|
|
513 |
|
|
397 |
|
|
399 |
|
Loan workout
expense |
281 |
|
|
201 |
|
|
327 |
|
|
206 |
|
|
71 |
|
Conversion and merger
related expense, net |
981 |
|
|
3,037 |
|
|
18,525 |
|
|
394 |
|
|
1,236 |
|
Professional fees |
1,800 |
|
|
2,096 |
|
|
1,761 |
|
|
1,642 |
|
|
1,353 |
|
Restructuring charges,
net |
2,978 |
|
|
1,912 |
|
|
4 |
|
|
(113 |
) |
|
5 |
|
Legal settlement
expense |
45 |
|
|
— |
|
|
1,361 |
|
|
1,500 |
|
|
— |
|
Regulatory
assessments |
1,145 |
|
|
719 |
|
|
1,092 |
|
|
841 |
|
|
1,259 |
|
Other expense |
7,077 |
|
|
6,418 |
|
|
5,943 |
|
|
6,124 |
|
|
4,714 |
|
Total non-interest
expense |
60,985 |
|
|
62,703 |
|
|
73,994 |
|
|
47,530 |
|
|
44,536 |
|
Income before income
taxes |
37,954 |
|
|
31,873 |
|
|
18,861 |
|
|
26,881 |
|
|
27,729 |
|
Income tax expense
(1) |
14,148 |
|
|
10,990 |
|
|
6,509 |
|
|
8,370 |
|
|
10,288 |
|
Net
income (1) |
$ |
23,806 |
|
|
$ |
20,883 |
|
|
$ |
12,352 |
|
|
$ |
18,511 |
|
|
$ |
17,441 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic (1) |
$ |
0.46 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
|
$ |
0.43 |
|
|
$ |
0.41 |
|
Diluted (1) |
$ |
0.45 |
|
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
51,683 |
|
|
51,634 |
|
|
49,334 |
|
|
43,028 |
|
|
43,011 |
|
Diluted (1) |
53,226 |
|
|
53,127 |
|
|
50,722 |
|
|
44,118 |
|
|
44,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We elected to early adopt ASU 2016-09
in the fourth quarter of 2016. The impacts of adoption have been
reflected in our consolidated statements of income for the three
months ended December 31, 2016, September 30, 2016, and June 30,
2016, and did not have a material effect. Accordingly, adjustments
were made using the modified prospective approach and resulted in,
among other items, a $0.1 million decrease to net income for the
three months ended December 31, 2016, and a $0.0 million increase
to net income for the three months ended September 30, 2016 and
June 30, 2016. Additionally, there was an increase of $0.01 to the
basic earnings per share for the three months ended June 30, 2016.
See “Adoption of New Accounting Guidance” above for additional
information.
|
|
CAPITAL BANK FINANCIAL CORP. |
CONSOLIDATED BALANCE
SHEETS |
(Dollars and shares in
thousands) |
(Unaudited) |
|
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
106,164 |
|
|
$ |
100,134 |
|
|
$ |
107,707 |
|
Interest-bearing
deposits in other banks |
49,247 |
|
|
60,413 |
|
|
201,348 |
|
Total cash and cash
equivalents |
155,411 |
|
|
160,547 |
|
|
309,055 |
|
Trading securities |
4,290 |
|
|
4,150 |
|
|
3,791 |
|
Investment securities
available-for-sale at fair value (amortized cost $1,152,613,
$1,168,995, and $927,266, respectively) |
1,145,712 |
|
|
1,154,496 |
|
|
912,250 |
|
Investment securities
held-to-maturity at amortized cost (fair value $431,269, $445,696,
and $460,911, respectively) |
430,411 |
|
|
446,020 |
|
|
463,959 |
|
Loans held for
sale |
3,533 |
|
|
4,980 |
|
|
12,874 |
|
Loans, net of deferred
loan costs and fees |
7,566,581 |
|
|
7,506,975 |
|
|
7,393,318 |
|
Less: Allowance for
loan and lease losses |
44,638 |
|
|
43,891 |
|
|
43,065 |
|
Loans,
net |
7,521,943 |
|
|
7,463,084 |
|
|
7,350,253 |
|
Other real estate
owned |
41,364 |
|
|
51,050 |
|
|
53,482 |
|
Premises and equipment,
net |
184,939 |
|
|
199,167 |
|
|
205,425 |
|
Goodwill |
234,158 |
|
|
234,158 |
|
|
235,500 |
|
Intangible assets,
net |
29,750 |
|
|
31,553 |
|
|
33,370 |
|
Deferred income tax
asset, net |
134,452 |
|
|
146,724 |
|
|
150,272 |
|
Bank owned life
insurance |
100,672 |
|
|
100,251 |
|
|
99,702 |
|
Other assets |
107,066 |
|
|
101,862 |
|
|
100,724 |
|
Total
Assets |
$ |
10,093,701 |
|
|
$ |
10,098,042 |
|
|
$ |
9,930,657 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing demand |
$ |
1,662,416 |
|
|
$ |
1,680,243 |
|
|
$ |
1,590,164 |
|
Interest
bearing demand |
1,884,674 |
|
|
1,960,187 |
|
|
1,930,143 |
|
Money
market |
1,828,889 |
|
|
1,821,474 |
|
|
1,725,838 |
|
Savings |
480,590 |
|
|
496,230 |
|
|
497,171 |
|
Time
deposits |
2,218,444 |
|
|
2,134,473 |
|
|
2,137,312 |
|
Total deposits |
8,075,013 |
|
|
8,092,607 |
|
|
7,880,628 |
|
Federal Home Loan Bank
advances |
470,600 |
|
|
490,650 |
|
|
545,701 |
|
Short-term
borrowings |
32,637 |
|
|
21,125 |
|
|
19,157 |
|
Long-term
borrowings |
118,096 |
|
|
117,272 |
|
|
116,456 |
|
Accrued expenses and
other liabilities |
65,271 |
|
|
68,457 |
|
|
76,668 |
|
Total
liabilities |
$ |
8,761,617 |
|
|
$ |
8,790,111 |
|
|
$ |
8,638,610 |
|
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, 46,624 issued and
35,357 outstanding, 46,479 issued 35,212 outstanding, and 46,178
issued and 34,911 outstanding, respectively. |
466 |
|
|
465 |
|
|
462 |
|
Common stock-Class B
$0.01 par value: 200,000 shares authorized, 18,407 issued and
16,634 outstanding, 18,527 issued and 16,754 outstanding, and
18,627 issued and 16,854 outstanding, respectively. |
184 |
|
|
185 |
|
|
186 |
|
Additional paid in
capital |
1,371,224 |
|
|
1,369,689 |
|
|
1,368,459 |
|
Retained earnings |
279,914 |
|
|
262,443 |
|
|
247,758 |
|
Accumulated other
comprehensive loss |
(7,320 |
) |
|
(12,467 |
) |
|
(12,434 |
) |
Treasury stock, at
cost, 13,040, 13,040, and 13,040 shares, respectively |
(312,384 |
) |
|
(312,384 |
) |
|
(312,384 |
) |
Total shareholders’
equity |
1,332,084 |
|
|
1,307,931 |
|
|
1,292,047 |
|
Total
Liabilities and Shareholders’ Equity |
$ |
10,093,701 |
|
|
$ |
10,098,042 |
|
|
$ |
9,930,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
KEY METRICS |
(Dollars in
thousands) |
(Unaudited) |
|
|
Three Months Ended |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
Performance
Ratios |
|
|
|
|
|
|
|
|
|
Interest
rate spread (1) |
3.59 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.43 |
% |
|
3.48 |
% |
Net
interest margin (1) |
3.75 |
% |
|
3.73 |
% |
|
3.67 |
% |
|
3.58 |
% |
|
3.62 |
% |
Return on
average assets (3) |
0.95 |
% |
|
0.84 |
% |
|
0.53 |
% |
|
0.98 |
% |
|
0.93 |
% |
Return on
average shareholders’ equity (3) |
7.20 |
% |
|
6.43 |
% |
|
4.03 |
% |
|
7.25 |
% |
|
6.88 |
% |
Efficiency ratio |
60.24 |
% |
|
64.00 |
% |
|
78.02 |
% |
|
63.38 |
% |
|
60.65 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
130.70 |
% |
|
129.53 |
% |
|
130.22 |
% |
|
131.43 |
% |
|
131.21 |
% |
Average
loans receivable to average deposits |
93.97 |
% |
|
93.41 |
% |
|
94.57 |
% |
|
98.46 |
% |
|
96.56 |
% |
Yield on
interest-earning assets (1) |
4.27 |
% |
|
4.21 |
% |
|
4.13 |
% |
|
4.05 |
% |
|
4.09 |
% |
Cost of
interest-bearing liabilities |
0.69 |
% |
|
0.63 |
% |
|
0.61 |
% |
|
0.62 |
% |
|
0.62 |
% |
Asset and
Credit Quality Ratios-Total Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
$ |
13,821 |
|
|
$ |
13,608 |
|
|
$ |
11,449 |
|
|
$ |
11,873 |
|
|
$ |
9,016 |
|
Nonperforming purchase credit impaired loans |
$ |
54,399 |
|
|
$ |
57,969 |
|
|
$ |
63,668 |
|
|
$ |
48,477 |
|
|
$ |
56,108 |
|
Nonperforming loans to loans receivable |
0.90 |
% |
|
0.95 |
% |
|
1.01 |
% |
|
1.02 |
% |
|
1.13 |
% |
Nonperforming assets to total assets |
1.09 |
% |
|
1.22 |
% |
|
1.30 |
% |
|
1.37 |
% |
|
1.44 |
% |
ALLL to
nonperforming assets |
40.64 |
% |
|
35.73 |
% |
|
33.45 |
% |
|
41.29 |
% |
|
40.98 |
% |
ALLL to
loans held for investment |
0.59 |
% |
|
0.58 |
% |
|
0.58 |
% |
|
0.75 |
% |
|
0.78 |
% |
Annualized net charge-offs/average loans |
0.08 |
% |
|
0.14 |
% |
|
0.17 |
% |
|
0.10 |
% |
|
0.11 |
% |
Capital Ratios
(Company) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
average shareholders’ equity to total average assets |
13.1 |
% |
|
13.1 |
% |
|
13.2 |
% |
|
13.5 |
% |
|
13.5 |
% |
Tier 1
leverage capital ratio |
11.8 |
% |
|
11.6 |
% |
|
12.2 |
% |
|
12.9 |
% |
|
12.6 |
% |
Tier 1
common capital ratio |
12.5 |
% |
|
12.2 |
% |
|
12.4 |
% |
|
13.3 |
% |
|
13.4 |
% |
Tier 1
risk-based capital ratio |
13.8 |
% |
|
13.4 |
% |
|
13.5 |
% |
|
14.4 |
% |
|
14.6 |
% |
Total
risk-based capital ratio |
14.3 |
% |
|
14.0 |
% |
|
14.0 |
% |
|
15.1 |
% |
|
15.3 |
% |
Capital Ratios
(Bank) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage capital ratio |
10.7 |
% |
|
10.7 |
% |
|
11.2 |
% |
|
10.5 |
% |
|
10.4 |
% |
Tier 1
common capital ratio |
12.6 |
% |
|
12.3 |
% |
|
12.4 |
% |
|
12.0 |
% |
|
12.0 |
% |
Tier 1
risk-based capital ratio |
12.6 |
% |
|
12.3 |
% |
|
12.4 |
% |
|
12.0 |
% |
|
12.0 |
% |
Total
risk-based capital ratio |
13.1 |
% |
|
12.9 |
% |
|
12.9 |
% |
|
12.7 |
% |
|
12.7 |
% |
(1) Presented on a fully tax equivalent basis.(2) Capital Ratios
are preliminary. (3) We elected to early adopt ASU
2016-09 in the fourth quarter of 2016. The impacts of adoption have
been reflected in our consolidated statements of income for the
three months ended December 31, 2016, September 30, 2016, and June
30, 2016, and did not have a material effect. Accordingly,
adjustments were made using the modified prospective approach and
resulted in, among other items, a one basis point increase to
return on average assets for the three months ended September 30,
2016. Additionally, there were changes to return on average
shareholders’ equity consisting of a two basis point decrease for
the three months ended December 31, 2016, and a one basis point
increase for both three months ended September and June 2016. See
“Adoption of New Accounting Guidance” above for additional
information.
|
CAPITAL BANK FINANCIAL CORP. |
LOANS AND
DEPOSITS |
(Dollars in
thousands) |
(Unaudited) |
|
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
Loans |
|
|
|
|
|
|
|
|
|
Non-owner occupied
commercial real estate |
$ |
1,265,576 |
|
|
$ |
1,187,344 |
|
|
$ |
1,130,883 |
|
|
$ |
920,521 |
|
|
$ |
891,830 |
|
Other commercial
construction and land |
384,581 |
|
|
350,401 |
|
|
327,622 |
|
|
222,794 |
|
|
212,315 |
|
Multifamily commercial
real estate |
147,365 |
|
|
115,996 |
|
|
117,515 |
|
|
76,296 |
|
|
74,328 |
|
1-4 family residential
construction and land |
153,761 |
|
|
157,920 |
|
|
140,030 |
|
|
111,954 |
|
|
100,306 |
|
Total
commercial real estate |
1,951,283 |
|
|
1,811,661 |
|
|
1,716,050 |
|
|
1,331,565 |
|
|
1,278,779 |
|
Owner occupied
commercial real estate |
1,287,811 |
|
|
1,313,086 |
|
|
1,321,405 |
|
|
1,072,586 |
|
|
1,075,306 |
|
Commercial and
industrial |
1,424,862 |
|
|
1,443,828 |
|
|
1,468,874 |
|
|
1,458,523 |
|
|
1,448,698 |
|
Lease financing |
— |
|
|
— |
|
|
— |
|
|
525 |
|
|
877 |
|
Total
commercial |
2,712,673 |
|
|
2,756,914 |
|
|
2,790,279 |
|
|
2,531,634 |
|
|
2,524,881 |
|
1-4 family
residential |
1,782,799 |
|
|
1,787,097 |
|
|
1,714,702 |
|
|
1,168,468 |
|
|
1,039,309 |
|
Home equity loans |
489,497 |
|
|
502,099 |
|
|
507,759 |
|
|
364,117 |
|
|
364,169 |
|
Indirect auto
loans |
174,861 |
|
|
199,951 |
|
|
226,717 |
|
|
254,736 |
|
|
285,618 |
|
Other consumer
loans |
220,946 |
|
|
222,824 |
|
|
222,255 |
|
|
94,277 |
|
|
85,964 |
|
Total
consumer |
2,668,103 |
|
|
2,711,971 |
|
|
2,671,433 |
|
|
1,881,598 |
|
|
1,775,060 |
|
Other |
238,055 |
|
|
231,409 |
|
|
228,430 |
|
|
191,136 |
|
|
166,185 |
|
Total
loans |
$ |
7,570,114 |
|
|
$ |
7,511,955 |
|
|
$ |
7,406,192 |
|
|
$ |
5,935,933 |
|
|
$ |
5,744,905 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand |
$ |
1,662,416 |
|
|
$ |
1,680,243 |
|
|
$ |
1,590,164 |
|
|
$ |
1,207,800 |
|
|
$ |
1,172,481 |
|
Interest bearing
demand |
1,884,674 |
|
|
1,960,187 |
|
|
1,930,143 |
|
|
1,463,520 |
|
|
1,456,558 |
|
Money market |
1,678,842 |
|
|
1,746,444 |
|
|
1,651,023 |
|
|
1,166,918 |
|
|
1,105,460 |
|
Savings |
480,590 |
|
|
496,230 |
|
|
497,171 |
|
|
401,205 |
|
|
403,106 |
|
Total core
deposits |
5,706,522 |
|
|
5,883,104 |
|
|
5,668,501 |
|
|
4,239,443 |
|
|
4,137,605 |
|
Wholesale money
market |
150,047 |
|
|
75,030 |
|
|
74,815 |
|
|
125,030 |
|
|
50,015 |
|
Time deposits |
2,218,444 |
|
|
2,134,473 |
|
|
2,137,312 |
|
|
1,668,784 |
|
|
1,619,507 |
|
Total
deposits |
$ |
8,075,013 |
|
|
$ |
8,092,607 |
|
|
$ |
7,880,628 |
|
|
$ |
6,033,257 |
|
|
$ |
5,807,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
QUARTERLY AVERAGE BALANCES AND
YIELDS |
(Dollars in
thousands) |
(Unaudited) |
|
|
|
Three Months Ended June 30, 2017 |
|
Three Months Ended March 31,
2017 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,515,169 |
|
|
$ |
86,405 |
|
|
4.61 |
% |
|
$ |
7,409,284 |
|
|
$ |
83,753 |
|
|
4.58 |
% |
Investment securities (1) |
|
1,596,382 |
|
|
11,005 |
|
|
2.77 |
% |
|
1,501,816 |
|
|
9,312 |
|
|
2.51 |
% |
Interest
bearing deposits in other banks |
|
42,140 |
|
|
93 |
|
|
0.89 |
% |
|
58,269 |
|
|
97 |
|
|
0.68 |
% |
Other
earning assets (2) |
|
32,074 |
|
|
388 |
|
|
4.85 |
% |
|
29,053 |
|
|
357 |
|
|
4.98 |
% |
Total interest earning
assets (1) |
|
9,185,765 |
|
|
$ |
97,891 |
|
|
4.27 |
% |
|
8,998,422 |
|
|
$ |
93,519 |
|
|
4.21 |
% |
Non-interest earning
assets |
|
884,900 |
|
|
|
|
|
|
|
909,138 |
|
|
|
|
|
|
Total assets |
|
$ |
10,070,665 |
|
|
|
|
|
|
|
$ |
9,907,560 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,152,086 |
|
|
$ |
4,789 |
|
|
0.89 |
% |
|
$ |
2,141,806 |
|
|
$ |
4,539 |
|
|
0.86 |
% |
Money
market |
|
1,787,200 |
|
|
1,963 |
|
|
0.44 |
% |
|
1,777,343 |
|
|
1,756 |
|
|
0.40 |
% |
Interest
bearing demand |
|
1,914,622 |
|
|
1,255 |
|
|
0.26 |
% |
|
1,922,687 |
|
|
1,138 |
|
|
0.24 |
% |
Savings |
|
488,123 |
|
|
220 |
|
|
0.18 |
% |
|
494,538 |
|
|
220 |
|
|
0.18 |
% |
Total interest bearing
deposits |
|
6,342,031 |
|
|
8,227 |
|
|
0.52 |
% |
|
6,336,374 |
|
|
7,653 |
|
|
0.49 |
% |
Short-term borrowings
and FHLB advances |
|
568,575 |
|
|
1,433 |
|
|
1.01 |
% |
|
493,643 |
|
|
887 |
|
|
0.73 |
% |
Long-term
borrowings |
|
117,576 |
|
|
2,384 |
|
|
8.13 |
% |
|
116,744 |
|
|
2,281 |
|
|
7.92 |
% |
Total interest bearing
liabilities |
|
7,028,182 |
|
|
12,044 |
|
|
0.69 |
% |
|
6,946,761 |
|
|
10,821 |
|
|
0.63 |
% |
Non-interest bearing
demand |
|
1,655,233 |
|
|
|
|
|
|
|
1,595,695 |
|
|
|
|
|
|
Other liabilities |
|
64,318 |
|
|
|
|
|
|
|
65,753 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,322,932 |
|
|
|
|
|
|
|
1,299,351 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
10,070,665 |
|
|
|
|
|
|
|
$ |
9,907,560 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
85,847 |
|
|
3.59 |
% |
|
|
|
$ |
82,698 |
|
|
3.58 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
85,847 |
|
|
|
|
|
|
$ |
82,698 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(605 |
) |
|
|
|
|
|
(582 |
) |
|
|
Net interest
income |
|
|
|
$ |
85,242 |
|
|
|
|
|
|
$ |
82,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2017 |
|
Three Months Ended June 30, 2016 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,515,169 |
|
|
$ |
86,405 |
|
|
4.61 |
% |
|
$ |
5,653,647 |
|
|
$ |
62,999 |
|
|
4.48 |
% |
Investment securities (1) |
|
1,596,382 |
|
|
11,005 |
|
|
2.77 |
% |
|
1,131,791 |
|
|
6,612 |
|
|
2.35 |
% |
Interest
bearing deposits in other banks |
|
42,140 |
|
|
93 |
|
|
0.89 |
% |
|
64,802 |
|
|
74 |
|
|
0.46 |
% |
Other
earning assets (2) |
|
32,074 |
|
|
388 |
|
|
4.85 |
% |
|
26,696 |
|
|
330 |
|
|
4.97 |
% |
Total interest earning
assets (1) |
|
9,185,765 |
|
|
$ |
97,891 |
|
|
4.27 |
% |
|
6,876,936 |
|
|
$ |
70,015 |
|
|
4.09 |
% |
Non-interest earning
assets |
|
884,900 |
|
|
|
|
|
|
|
607,429 |
|
|
|
|
|
|
Total assets |
|
$ |
10,070,665 |
|
|
|
|
|
|
|
$ |
7,484,365 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,152,086 |
|
|
$ |
4,789 |
|
|
0.89 |
% |
|
$ |
1,620,023 |
|
|
$ |
4,018 |
|
|
1.00 |
% |
Money
market |
|
1,787,200 |
|
|
1,963 |
|
|
0.44 |
% |
|
1,184,532 |
|
|
1,028 |
|
|
0.35 |
% |
Interest
bearing demand |
|
1,914,622 |
|
|
1,255 |
|
|
0.26 |
% |
|
1,451,666 |
|
|
749 |
|
|
0.21 |
% |
Savings |
|
488,123 |
|
|
220 |
|
|
0.18 |
% |
|
411,496 |
|
|
208 |
|
|
0.20 |
% |
Total interest bearing
deposits |
|
6,342,031 |
|
|
8,227 |
|
|
0.52 |
% |
|
4,667,717 |
|
|
6,003 |
|
|
0.52 |
% |
Short-term borrowings
and FHLB advances |
|
568,575 |
|
|
1,433 |
|
|
1.01 |
% |
|
485,850 |
|
|
515 |
|
|
0.43 |
% |
Long-term
borrowings |
|
117,576 |
|
|
2,384 |
|
|
8.13 |
% |
|
87,496 |
|
|
1,547 |
|
|
7.11 |
% |
Total interest bearing
liabilities |
|
7,028,182 |
|
|
12,044 |
|
|
0.69 |
% |
|
5,241,063 |
|
|
8,065 |
|
|
0.62 |
% |
Non-interest bearing
demand |
|
1,655,233 |
|
|
|
|
|
|
|
1,187,056 |
|
|
|
|
|
|
Other liabilities |
|
64,318 |
|
|
|
|
|
|
|
42,319 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,322,932 |
|
|
|
|
|
|
|
1,013,927 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
10,070,665 |
|
|
|
|
|
|
|
$ |
7,484,365 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
85,847 |
|
|
3.59 |
% |
|
|
|
$ |
61,950 |
|
|
3.48 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
85,847 |
|
|
|
|
|
|
$ |
61,950 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(605 |
) |
|
|
|
|
|
(435 |
) |
|
|
Net interest
income |
|
|
|
$ |
85,242 |
|
|
|
|
|
|
$ |
61,515 |
|
|
|
(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) |
|
|
|
Six Months Ended June 30, 2017 |
|
Six Months Ended June 30, 2016 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,462,519 |
|
|
$ |
170,157 |
|
|
4.60 |
% |
|
$ |
5,632,568 |
|
|
$ |
126,007 |
|
|
4.50 |
% |
Investment securities (1) |
|
1,549,360 |
|
|
20,318 |
|
|
2.64 |
% |
|
1,127,157 |
|
|
13,096 |
|
|
2.34 |
% |
Interest
bearing deposits in other banks |
|
50,160 |
|
|
190 |
|
|
0.76 |
% |
|
68,995 |
|
|
158 |
|
|
0.46 |
% |
Other
earning assets (2) |
|
30,572 |
|
|
745 |
|
|
4.91 |
% |
|
25,916 |
|
|
644 |
|
|
5.00 |
% |
Total interest earning
assets (1) |
|
9,092,611 |
|
|
$ |
191,410 |
|
|
4.25 |
% |
|
6,854,636 |
|
|
$ |
139,905 |
|
|
4.10 |
% |
Non-interest earning
assets |
|
896,951 |
|
|
|
|
|
|
|
612,758 |
|
|
|
|
|
|
Total assets |
|
$ |
9,989,562 |
|
|
|
|
|
|
|
$ |
7,467,394 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,146,974 |
|
|
$ |
9,327 |
|
|
0.88 |
% |
|
$ |
1,654,838 |
|
|
$ |
8,138 |
|
|
0.99 |
% |
Money
market |
|
1,782,299 |
|
|
3,720 |
|
|
0.42 |
% |
|
1,215,933 |
|
|
2,094 |
|
|
0.35 |
% |
Interest
bearing demand |
|
1,918,632 |
|
|
2,393 |
|
|
0.25 |
% |
|
1,411,311 |
|
|
1,397 |
|
|
0.20 |
% |
Savings |
|
491,313 |
|
|
440 |
|
|
0.18 |
% |
|
415,542 |
|
|
435 |
|
|
0.21 |
% |
Total interest bearing
deposits |
|
6,339,218 |
|
|
15,880 |
|
|
0.51 |
% |
|
4,697,624 |
|
|
12,064 |
|
|
0.52 |
% |
Short-term borrowings
and FHLB advances |
|
531,316 |
|
|
2,320 |
|
|
0.88 |
% |
|
473,371 |
|
|
1,046 |
|
|
0.44 |
% |
Long-term
borrowings |
|
117,162 |
|
|
4,664 |
|
|
8.03 |
% |
|
86,741 |
|
|
3,058 |
|
|
7.09 |
% |
Total interest bearing
liabilities |
|
6,987,696 |
|
|
22,864 |
|
|
0.66 |
% |
|
5,257,736 |
|
|
16,168 |
|
|
0.62 |
% |
Non-interest bearing
demand |
|
1,625,628 |
|
|
|
|
|
|
|
1,162,919 |
|
|
|
|
|
|
Other liabilities |
|
65,032 |
|
|
|
|
|
|
|
42,369 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,311,206 |
|
|
|
|
|
|
|
1,004,370 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
9,989,562 |
|
|
|
|
|
|
|
$ |
7,467,394 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
168,546 |
|
|
3.59 |
% |
|
|
|
$ |
123,737 |
|
|
3.49 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.74 |
% |
|
|
|
|
|
3.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
168,546 |
|
|
|
|
|
|
$ |
123,737 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(1,188 |
) |
|
|
|
|
|
(855 |
) |
|
|
Net interest
income |
|
|
|
$ |
167,358 |
|
|
|
|
|
|
$ |
122,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
Net Income (1) |
|
$ |
23,806 |
|
|
$ |
23,806 |
|
|
$ |
20,883 |
|
|
$ |
20,883 |
|
|
$ |
12,352 |
|
|
$ |
12,352 |
|
|
|
Pre-Tax |
|
After-Tax |
|
Pre-Tax |
|
After-Tax |
|
Pre-Tax |
|
After-Tax |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Securities gains, net (2) |
|
(70 |
) |
|
(43 |
) |
|
(67 |
) |
|
(41 |
) |
|
(1,894 |
) |
|
(1,170 |
) |
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Conversion and merger related expense tax deductible, net (2) |
|
(237 |
) |
|
(146 |
) |
|
3,037 |
|
|
1,877 |
|
|
18,245 |
|
|
11,270 |
|
Conversion and merger related expense non tax deductible |
|
1,218 |
|
|
1,218 |
|
|
— |
|
|
— |
|
|
280 |
|
|
280 |
|
Restructuring expense (2) |
|
2,978 |
|
|
1,840 |
|
|
1,912 |
|
|
1,181 |
|
|
4 |
|
|
3 |
|
Legal
Settlement (2) |
|
45 |
|
|
28 |
|
|
— |
|
|
— |
|
|
1,361 |
|
|
841 |
|
Tax
Adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,350 |
) |
|
(1,350 |
) |
Severance
expense (2) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
|
4 |
|
Tax
effect of adjustments (2) |
|
(1,037 |
) |
|
N/A |
|
|
(1,865 |
) |
|
N/A |
|
|
(6,775 |
) |
|
N/A |
|
Core Net
Income (1) |
|
$ |
26,703 |
|
|
$ |
26,703 |
|
|
$ |
23,900 |
|
|
$ |
23,900 |
|
|
$ |
22,230 |
|
|
$ |
22,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares (1) |
|
53,226 |
|
|
|
|
53,127 |
|
|
|
|
50,722 |
|
|
|
Core Net
Income per share (1) |
|
$ |
0.50 |
|
|
|
|
$ |
0.45 |
|
|
|
|
$ |
0.44 |
|
|
|
Average
Assets |
|
10,070,665 |
|
|
|
|
9,907,560 |
|
|
|
|
9,329,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROA (1)
(3) |
|
0.95 |
% |
|
|
|
0.84 |
% |
|
|
|
0.53 |
% |
|
|
Core ROA
(1) (4) |
|
1.06 |
% |
|
|
|
0.96 |
% |
|
|
|
0.95 |
% |
|
|
(1) We elected to early adopt ASU 2016-09 in the
fourth quarter of 2016. The impacts of adoption have been reflected
in our consolidated statements of income for the three months ended
December 31, 2016, and did not have a material effect. Accordingly,
adjustments were made using the modified prospective approach and
resulted in, among other items, a $0.1 million decrease to net
income and core net income as well as a one basis point decrease to
core ROA for the three months ended December 31, 2016. See
“Adoption of New Accounting Guidance” above for additional
information.(2) Tax effected at a blended income tax rate of
38%.(3) ROA: Annualized net income / Average
assets.(4) 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 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
Net interest
income |
$ |
85,242 |
|
|
$ |
82,116 |
|
|
$ |
77,819 |
|
|
$ |
62,627 |
|
|
$ |
61,515 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
income |
16,000 |
|
|
15,852 |
|
|
17,016 |
|
|
12,370 |
|
|
11,922 |
|
Less:
Securities gains, net |
70 |
|
|
67 |
|
|
1,894 |
|
|
71 |
|
|
117 |
|
Core
non-interest income |
$ |
15,930 |
|
|
$ |
15,785 |
|
|
$ |
15,122 |
|
|
$ |
12,299 |
|
|
$ |
11,805 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
expense |
$ |
60,985 |
|
|
$ |
62,703 |
|
|
$ |
73,994 |
|
|
$ |
47,530 |
|
|
$ |
44,536 |
|
Less:
Conversion and merger related expense tax deductible, net |
(237 |
) |
|
3,037 |
|
|
18,245 |
|
|
331 |
|
|
881 |
|
Conversion and merger related expense non tax deductible |
1,218 |
|
|
— |
|
|
280 |
|
|
61 |
|
|
355 |
|
Restructuring expense, net |
2,978 |
|
|
1,912 |
|
|
4 |
|
|
(113 |
) |
|
5 |
|
Legal
settlement |
45 |
|
|
— |
|
|
1,361 |
|
|
1,500 |
|
|
— |
|
Severance
expense |
— |
|
|
— |
|
|
7 |
|
|
— |
|
|
— |
|
Core non-interest expense |
$ |
56,981 |
|
|
$ |
57,754 |
|
|
$ |
54,097 |
|
|
$ |
45,751 |
|
|
$ |
43,295 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) |
60.24 |
% |
|
64.00 |
% |
|
78.02 |
% |
|
63.38 |
% |
|
60.65 |
% |
Core efficiency ratio (2) |
56.32 |
% |
|
58.99 |
% |
|
58.21 |
% |
|
61.06 |
% |
|
59.05 |
% |
(1) Efficiency Ratio: Non-interest expense / (Non-interest
income + Net interest income).(2) 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 |
|
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
|
Jun 30, 2016 |
Total shareholders’
equity |
|
$ |
1,332,084 |
|
|
$ |
1,307,931 |
|
|
$ |
1,292,047 |
|
|
$ |
1,029,841 |
|
|
$ |
1,016,498 |
|
Less: goodwill |
|
(234,158 |
) |
|
(234,158 |
) |
|
(235,500 |
) |
|
(134,522 |
) |
|
(134,522 |
) |
Less: intangibles |
|
(29,750 |
) |
|
(31,553 |
) |
|
(33,370 |
) |
|
(12,288 |
) |
|
(13,231 |
) |
Tax effect on
intangible assets (1) |
|
11,159 |
|
|
12,003 |
|
|
12,694 |
|
|
4,669 |
|
|
5,028 |
|
Tangible book value
(2) |
|
$ |
1,079,335 |
|
|
$ |
1,054,223 |
|
|
$ |
1,035,871 |
|
|
$ |
887,700 |
|
|
$ |
873,773 |
|
Common shares
outstanding |
|
51,991 |
|
|
51,966 |
|
|
51,765 |
|
|
43,235 |
|
|
43,219 |
|
Tangible book
value per share |
|
$ |
20.76 |
|
|
$ |
20.29 |
|
|
$ |
20.01 |
|
|
$ |
20.53 |
|
|
$ |
20.22 |
|
(1) Tax effected at a blended income tax rate of
38%.(2) Tangible book value is equal to shareholders’ equity
less goodwill and intangibles net of taxes.
CONTACT:
Kenneth A. Posner
Chief of Strategic Planning and Investor Relations
Phone: (212) 399-4020
E-mail: Kposner@cbfcorp.com
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