Capital Bank Financial Corp. (Nasdaq:CBF) (the “Company”) today
reported third quarter GAAP net income of $25.8 million, which
increased 8% quarter over quarter. GAAP net income per diluted
share was $0.48. Core net income decreased to $26.5 million, down
1% quarter over quarter. Core net income per diluted share was
$0.50. Core pre-tax adjustments for the third quarter of 2017
included $0.6 million of branch closure expenses and $0.6 million
of merger related expenses, partially offset by $0.1 million net
gain on investment securities. The reconciliation of non-GAAP
financial measures (including core net income and core net income
per diluted share) are included in tabular form at the end of this
release.
Highlights of the quarter include:
- Reported ROA of 1.02%, up 7 bps quarter over quarter;
- Reported efficiency ratio of 56.6%; down 365 bps quarter over
quarter;
- Sustained only temporary disruption in our branch network
associated with Hurricane Irma and reopened all but two offices
within a matter of days;
- Shareholders voted to approve merger with First Horizon
National Corporation; and
- Declared quarterly dividend of $0.12 per common share.
“We are working hard to prepare for the merger with First
Horizon, while at the same time sustaining profitability and
customer momentum,” said Gene Taylor, Chairman and Chief Executive
Officer of Capital Bank Financial Corp.
“We achieved strong results in the third
quarter, which are in line with the goals we outlined at the
beginning of the year. We also made significant progress in
planning our integration with First Horizon, and we are well
positioned to continue our momentum following our close,” added
Chris Marshall, Chief Financial Officer of Capital Bank Financial
Corp.
Hurricane Irma
On September 10, 2017, Hurricane Irma struck the
south coast of Florida, temporarily disrupting our branch network.
However within a matter of days, all but two of our offices were
back open and assisting customers, while the remaining two offices
will open during the fourth quarter. The Company incurred property
costs associated with Hurricane Irma of approximately $0.2 million,
which are reflected in third quarter results. The Company has also
reviewed its lending and deposit portfolio and determined no
impairment was indicated at this time as a result of Hurricane
Irma. In working with its borrowers and depositors affected by this
hurricane, the Company has entered into temporary payment deferral
agreements of 90 days or less on loans covering $78.6 million of
outstanding principle. Each of these loans were assessed
individually and were determined to not be a troubled debt
restructuring. The review process is on-going and we will continue
to monitor the impact on our loan portfolio.
Loan Portfolio and Composition
During the third quarter, the loan portfolio
increased by $42.5 million to $7.6 billion, consisting of a $53.1
million increase in commercial real estate and commercial and
industrial loans, a $14.0 million decrease in consumer loans, and a
$3.4 million increase in other loans. New loan production of $485.4
million was offset by payoffs of $408.7 million and special assets
resolutions of $34.2 million.
The relative composition of the Company’s loan
portfolio at the end of the third and second quarter of 2017 and
fourth quarter of 2016 was as follows:
|
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Dec 31, 2016 |
Commercial real
estate |
|
26 |
% |
|
26 |
% |
|
23 |
% |
C&I |
|
36 |
% |
|
36 |
% |
|
38 |
% |
Consumer |
|
35 |
% |
|
35 |
% |
|
36 |
% |
Other |
|
3 |
% |
|
3 |
% |
|
3 |
% |
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
Deposits Composition and Cost of Funds
During the third quarter, total deposits
increased by $46.6 million sequentially to $8.1 billion. The cost
of total deposits increased by seven basis points sequentially to
0.48% and increased seven basis points year over year.
Net Interest Income and Net Interest
Margin
Net interest income increased $0.7 million to
$85.9 million from $85.2 million for the second quarter of 2017 and
increased $23.3 million from $62.6 million for the third quarter of
2016. The year over year increase was mainly due to the acquisition
of CommunityOne. The net interest margin for the third quarter of
2017 was 3.71%, a decline of four basis points sequentially and an
increase of 13 basis points year over year.
Non-Interest Income
Non-interest income declined $1.2 million to
$14.8 million from $16.0 million for the second quarter of 2017 and
increased $2.4 million from $12.4 million for the third quarter of
2016. The year over year increase was mainly due to the
acquisition of CommunityOne and includes a $1.4 million increase in
debit card income, a $0.6 million increase in other income
(includes BOLI, credit card and merchant service income), and a
$0.5 million increase in service charges.
Provision for Loan and Lease Losses and Credit
Quality
The provision of $3.0 million recorded for the
third quarter of 2017 included a $2.8 million provision for
non-purchased credit impaired loans and a $0.2 million provision on
purchased credit impaired loans. Net charge-offs for the third
quarter of 2017 were $2.3 million, $0.7 million higher than the
second quarter of 2017.
At September 30, 2017, the allowance for
loan and lease losses was $45.4 million, of which $24.2 million
related to purchase credit impaired loans and $21.2 million related
to non-purchased credit impaired loans. The allowance for loan and
lease losses represents 0.60% of the Company’s total $7.6 billion
loan portfolio.
At September 30, 2017, non-performing loans
were $63.8 million, or 0.84% of loans, and decreased 6.48% from
June 30, 2017, mainly as a result of resolutions and upgrades.
The balance on non-performing loans increased 5.72% from
September 30, 2016, due primarily to the acquisition of
CommunityOne.
Non-Interest Expense
Non-interest expense declined $4.0 million to
$57.0 million from $61.0 million for the second quarter of 2017 and
increased $9.5 million from $47.5 million for the third quarter of
2016. Contributing to the sequential decrease was a decrease
of $2.4 million in restructuring charges related to branch closures
during the second quarter, a $1.0 million decrease in salaries and
benefits and a $0.5 million decrease in computer services as part
of cost savings initiatives. Partially offsetting the sequential
decrease was a $0.5 million increase in stock based compensation.
The year over year increase was mainly due to increases of $5.8
million in salaries and benefit expense and $1.6 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 $14.9 million for the
third quarter of 2017 with an effective tax rate of 37%, compared
to $14.1 million and 37% for the second quarter of 2017. Income tax
expense was $8.4 million and an effective tax rate of 31% for the
third quarter of 2016.
Financial Position
Total assets increased by $46.3 million to $10.1
billion as of September 30, 2017, from $10.1 billion as of
June 30, 2017. During the quarter, the Company’s loan
portfolio increased $42.5 million to $7.6 billion. Total
deposits increased by $46.6 million to $8.1 billion. Core deposits
include all checking, savings and money market accounts, excluding
brokered, and represent 70% of total deposits. FHLB borrowings
decreased $30.1 million. Book value per share was $26.04 as of
September 30, 2017, an increase of $0.42 and $2.22 from
June 30, 2017 and September 30, 2016, respectively.
Tangible book value per share was $21.26 as of September 30,
2017, an increase of $0.50 and $0.73 from June 30, 2017 and
September 30, 2016, respectively. During the third quarter,
the Company did not repurchase shares of common stock. 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 November 13, 2017, to shareholders of record
as of November 3, 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
September 30, 2017, and 178 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, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
Interest and dividend
income |
$ |
99,711 |
|
|
$ |
97,286 |
|
|
$ |
92,937 |
|
|
$ |
87,746 |
|
|
$ |
70,929 |
|
Interest expense |
13,795 |
|
|
12,044 |
|
|
10,821 |
|
|
9,927 |
|
|
8,302 |
|
Net interest
income |
85,916 |
|
|
85,242 |
|
|
82,116 |
|
|
77,819 |
|
|
62,627 |
|
Provision for loan and
lease losses |
3,042 |
|
|
2,303 |
|
|
3,392 |
|
|
1,980 |
|
|
586 |
|
Net interest income
after provision for loan and lease losses |
82,874 |
|
|
82,939 |
|
|
78,724 |
|
|
75,839 |
|
|
62,041 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
5,311 |
|
|
5,237 |
|
|
5,375 |
|
|
5,949 |
|
|
4,777 |
|
Debit card income |
4,822 |
|
|
5,051 |
|
|
4,765 |
|
|
4,211 |
|
|
3,389 |
|
Fees on mortgage loans
originated and sold |
931 |
|
|
1,150 |
|
|
1,248 |
|
|
1,402 |
|
|
1,334 |
|
Investment advisory and
trust fees |
537 |
|
|
596 |
|
|
641 |
|
|
591 |
|
|
290 |
|
Investment securities
gains, net |
98 |
|
|
70 |
|
|
67 |
|
|
1,894 |
|
|
71 |
|
Other income |
3,074 |
|
|
3,896 |
|
|
3,756 |
|
|
2,969 |
|
|
2,509 |
|
Total non-interest
income |
14,773 |
|
|
16,000 |
|
|
15,852 |
|
|
17,016 |
|
|
12,370 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
26,708 |
|
|
27,662 |
|
|
29,166 |
|
|
26,134 |
|
|
20,935 |
|
Stock-based
compensation expense |
1,441 |
|
|
964 |
|
|
900 |
|
|
531 |
|
|
790 |
|
Net occupancy and
equipment expense |
8,894 |
|
|
8,826 |
|
|
8,992 |
|
|
8,374 |
|
|
7,340 |
|
Computer services |
3,794 |
|
|
4,280 |
|
|
3,873 |
|
|
4,364 |
|
|
3,153 |
|
Software expense |
2,524 |
|
|
2,573 |
|
|
2,662 |
|
|
2,391 |
|
|
1,948 |
|
Telecommunication
expense |
1,968 |
|
|
1,939 |
|
|
2,424 |
|
|
2,147 |
|
|
1,790 |
|
OREO valuation
expense |
249 |
|
|
262 |
|
|
247 |
|
|
677 |
|
|
742 |
|
Net losses (gains) on
sales of OREO |
1 |
|
|
(204 |
) |
|
(308 |
) |
|
(150 |
) |
|
(159 |
) |
Foreclosed asset
related expense |
487 |
|
|
376 |
|
|
364 |
|
|
513 |
|
|
397 |
|
Loan workout
expense |
281 |
|
|
281 |
|
|
201 |
|
|
327 |
|
|
206 |
|
Conversion and merger
related expense, net |
591 |
|
|
981 |
|
|
3,037 |
|
|
18,525 |
|
|
394 |
|
Professional fees |
2,071 |
|
|
1,800 |
|
|
2,096 |
|
|
1,761 |
|
|
1,642 |
|
Restructuring charges,
net |
595 |
|
|
2,978 |
|
|
1,912 |
|
|
4 |
|
|
(113 |
) |
Legal settlement
expense |
— |
|
|
45 |
|
|
— |
|
|
1,361 |
|
|
1,500 |
|
Regulatory
assessments |
1,020 |
|
|
1,145 |
|
|
719 |
|
|
1,092 |
|
|
841 |
|
Other expense |
6,360 |
|
|
7,077 |
|
|
6,418 |
|
|
5,943 |
|
|
6,124 |
|
Total non-interest
expense |
56,984 |
|
|
60,985 |
|
|
62,703 |
|
|
73,994 |
|
|
47,530 |
|
Income before income
taxes |
40,663 |
|
|
37,954 |
|
|
31,873 |
|
|
18,861 |
|
|
26,881 |
|
Income tax expense
(1) |
14,905 |
|
|
14,148 |
|
|
10,990 |
|
|
6,509 |
|
|
8,370 |
|
Net
income (1) |
$ |
25,758 |
|
|
$ |
23,806 |
|
|
$ |
20,883 |
|
|
$ |
12,352 |
|
|
$ |
18,511 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic (1) |
$ |
0.50 |
|
|
$ |
0.46 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
|
$ |
0.43 |
|
Diluted (1) |
$ |
0.48 |
|
|
$ |
0.45 |
|
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
51,705 |
|
|
51,683 |
|
|
51,634 |
|
|
49,334 |
|
|
43,028 |
|
Diluted (1) |
53,226 |
|
|
53,226 |
|
|
53,127 |
|
|
50,722 |
|
|
44,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 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. See "Adoption of New
Accounting Guidance" above for additional information.
|
|
CAPITAL BANK FINANCIAL CORP. |
CONSOLIDATED BALANCE
SHEETS |
(Dollars and shares in
thousands) |
(Unaudited) |
|
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Dec 31, 2016 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
97,147 |
|
|
$ |
106,164 |
|
|
$ |
107,707 |
|
Interest-bearing
deposits in other banks |
86,982 |
|
|
49,247 |
|
|
201,348 |
|
Total cash and cash
equivalents |
184,129 |
|
|
155,411 |
|
|
309,055 |
|
Trading securities |
4,458 |
|
|
4,290 |
|
|
3,791 |
|
Investment securities
available-for-sale at fair value (amortized cost $1,161,024,
$1,152,613, and $927,266, respectively) |
1,155,694 |
|
|
1,145,712 |
|
|
912,250 |
|
Investment securities
held-to-maturity at amortized cost (fair value $415,238, $431,269,
and $460,911, respectively) |
412,051 |
|
|
430,411 |
|
|
463,959 |
|
Loans held for
sale |
3,060 |
|
|
3,533 |
|
|
12,874 |
|
Loans, net of deferred
loan costs and fees |
7,609,540 |
|
|
7,566,581 |
|
|
7,393,318 |
|
Less: Allowance for
loan and lease losses |
45,428 |
|
|
44,638 |
|
|
43,065 |
|
Loans,
net |
7,564,112 |
|
|
7,521,943 |
|
|
7,350,253 |
|
Other real estate
owned |
44,416 |
|
|
41,364 |
|
|
53,482 |
|
Premises and equipment
held for sale |
17,378 |
|
|
18,494 |
|
|
2,599 |
|
Premises and equipment,
net |
183,734 |
|
|
184,939 |
|
|
205,425 |
|
Goodwill |
231,292 |
|
|
234,158 |
|
|
235,500 |
|
Intangible assets,
net |
27,938 |
|
|
29,750 |
|
|
33,370 |
|
Deferred income tax
asset, net |
113,073 |
|
|
134,452 |
|
|
150,272 |
|
Bank owned life
insurance |
100,611 |
|
|
100,672 |
|
|
99,702 |
|
Other assets |
98,039 |
|
|
88,572 |
|
|
98,125 |
|
Total
Assets |
$ |
10,139,985 |
|
|
$ |
10,093,701 |
|
|
$ |
9,930,657 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing demand |
$ |
1,631,526 |
|
|
$ |
1,662,416 |
|
|
$ |
1,590,164 |
|
Interest
bearing demand |
1,846,172 |
|
|
1,884,674 |
|
|
1,930,143 |
|
Money
market |
1,885,180 |
|
|
1,828,889 |
|
|
1,725,838 |
|
Savings |
471,931 |
|
|
480,590 |
|
|
497,171 |
|
Time
deposits |
2,286,815 |
|
|
2,218,444 |
|
|
2,137,312 |
|
Total deposits |
8,121,624 |
|
|
8,075,013 |
|
|
7,880,628 |
|
Federal Home Loan Bank
advances |
440,549 |
|
|
470,600 |
|
|
545,701 |
|
Short-term
borrowings |
34,802 |
|
|
32,637 |
|
|
19,157 |
|
Long-term
borrowings |
118,929 |
|
|
118,096 |
|
|
116,456 |
|
Accrued expenses and
other liabilities |
69,462 |
|
|
65,271 |
|
|
76,668 |
|
Total
liabilities |
$ |
8,785,366 |
|
|
$ |
8,761,617 |
|
|
$ |
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, 50,632 issued and
39,365 outstanding, 46,624 issued 35,357 outstanding, and 46,178
issued and 34,911 outstanding, respectively. |
506 |
|
|
466 |
|
|
462 |
|
Common stock-Class B
$0.01 par value: 200,000 shares authorized, 14,435 issued and
12,661 outstanding, 18,407 issued and 16,634 outstanding, and
18,627 issued and 16,854 outstanding, respectively. |
144 |
|
|
184 |
|
|
186 |
|
Additional paid in
capital |
1,373,227 |
|
|
1,371,224 |
|
|
1,368,459 |
|
Retained earnings |
299,432 |
|
|
279,914 |
|
|
247,758 |
|
Accumulated other
comprehensive loss |
(6,306 |
) |
|
(7,320 |
) |
|
(12,434 |
) |
Treasury stock, at
cost, 13,040, 13,040, and 13,040 shares, respectively |
(312,384 |
) |
|
(312,384 |
) |
|
(312,384 |
) |
Total shareholders’
equity |
1,354,619 |
|
|
1,332,084 |
|
|
1,292,047 |
|
Total
Liabilities and Shareholders’ Equity |
$ |
10,139,985 |
|
|
$ |
10,093,701 |
|
|
$ |
9,930,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
KEY METRICS |
(Dollars in
thousands) |
(Unaudited) |
|
|
Three Months Ended |
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
Performance
Ratios |
|
|
|
|
|
|
|
|
|
Interest
rate spread (1) |
3.53 |
% |
|
3.59 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.43 |
% |
Net
interest margin (1) |
3.71 |
% |
|
3.75 |
% |
|
3.73 |
% |
|
3.67 |
% |
|
3.58 |
% |
Return on
average assets (2) |
1.02 |
% |
|
0.95 |
% |
|
0.84 |
% |
|
0.53 |
% |
|
0.98 |
% |
Return on
average shareholders’ equity (2) |
7.66 |
% |
|
7.20 |
% |
|
6.43 |
% |
|
4.03 |
% |
|
7.25 |
% |
Efficiency ratio |
56.59 |
% |
|
60.24 |
% |
|
64.00 |
% |
|
78.02 |
% |
|
63.38 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
131.12 |
% |
|
130.70 |
% |
|
129.53 |
% |
|
130.22 |
% |
|
131.43 |
% |
Average
loans receivable to average deposits |
93.46 |
% |
|
93.97 |
% |
|
93.41 |
% |
|
94.57 |
% |
|
98.46 |
% |
Yield on
interest-earning assets (1) |
4.31 |
% |
|
4.27 |
% |
|
4.21 |
% |
|
4.13 |
% |
|
4.05 |
% |
Cost of
interest-bearing liabilities |
0.78 |
% |
|
0.69 |
% |
|
0.63 |
% |
|
0.61 |
% |
|
0.62 |
% |
Asset and
Credit Quality Ratios-Total Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
$ |
18,126 |
|
|
$ |
13,821 |
|
|
$ |
13,608 |
|
|
$ |
11,449 |
|
|
$ |
11,873 |
|
Nonperforming purchase credit impaired loans |
$ |
45,674 |
|
|
$ |
54,399 |
|
|
$ |
57,969 |
|
|
$ |
63,668 |
|
|
$ |
48,477 |
|
Nonperforming loans to loans receivable |
0.84 |
% |
|
0.90 |
% |
|
0.95 |
% |
|
1.01 |
% |
|
1.02 |
% |
Nonperforming assets to total assets |
1.07 |
% |
|
1.09 |
% |
|
1.22 |
% |
|
1.30 |
% |
|
1.37 |
% |
ALLL to
nonperforming assets |
41.85 |
% |
|
40.64 |
% |
|
35.73 |
% |
|
33.45 |
% |
|
41.29 |
% |
ALLL to
loans held for investment |
0.60 |
% |
|
0.59 |
% |
|
0.58 |
% |
|
0.58 |
% |
|
0.75 |
% |
Annualized net charge-offs/average loans |
0.12 |
% |
|
0.08 |
% |
|
0.14 |
% |
|
0.17 |
% |
|
0.10 |
% |
(1) Presented on a fully tax equivalent
basis. (2) 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 September 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 the three months ended September 30,
2016. See "Adoption of New Accounting Guidance" above for
additional information.
|
|
CAPITAL BANK FINANCIAL CORP. |
LOANS AND
DEPOSITS |
(Dollars in
thousands) |
(Unaudited) |
|
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
Loans |
|
|
|
|
|
|
|
|
|
Non-owner occupied
commercial real estate |
$ |
1,293,647 |
|
|
$ |
1,265,576 |
|
|
$ |
1,187,344 |
|
|
$ |
1,130,883 |
|
|
$ |
920,521 |
|
Other commercial
construction and land |
402,250 |
|
|
384,581 |
|
|
350,401 |
|
|
327,622 |
|
|
222,794 |
|
Multifamily commercial
real estate |
148,192 |
|
|
147,365 |
|
|
115,996 |
|
|
117,515 |
|
|
76,296 |
|
1-4 family residential
construction and land |
143,807 |
|
|
153,761 |
|
|
157,920 |
|
|
140,030 |
|
|
111,954 |
|
Total
commercial real estate |
1,987,896 |
|
|
1,951,283 |
|
|
1,811,661 |
|
|
1,716,050 |
|
|
1,331,565 |
|
Owner occupied
commercial real estate |
1,226,211 |
|
|
1,287,811 |
|
|
1,313,086 |
|
|
1,321,405 |
|
|
1,072,586 |
|
Commercial and
industrial |
1,502,939 |
|
|
1,424,862 |
|
|
1,443,828 |
|
|
1,468,874 |
|
|
1,458,523 |
|
Lease financing |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
525 |
|
Total
commercial |
2,729,150 |
|
|
2,712,673 |
|
|
2,756,914 |
|
|
2,790,279 |
|
|
2,531,634 |
|
1-4 family
residential |
1,787,690 |
|
|
1,782,799 |
|
|
1,787,097 |
|
|
1,714,702 |
|
|
1,168,468 |
|
Home equity loans |
481,696 |
|
|
489,497 |
|
|
502,099 |
|
|
507,759 |
|
|
364,117 |
|
Indirect auto
loans |
155,371 |
|
|
174,861 |
|
|
199,951 |
|
|
226,717 |
|
|
254,736 |
|
Other consumer
loans |
229,357 |
|
|
220,946 |
|
|
222,824 |
|
|
222,255 |
|
|
94,277 |
|
Total
consumer |
2,654,114 |
|
|
2,668,103 |
|
|
2,711,971 |
|
|
2,671,433 |
|
|
1,881,598 |
|
Other |
241,440 |
|
|
238,055 |
|
|
231,409 |
|
|
228,430 |
|
|
191,136 |
|
Total
loans |
$ |
7,612,600 |
|
|
$ |
7,570,114 |
|
|
$ |
7,511,955 |
|
|
$ |
7,406,192 |
|
|
$ |
5,935,933 |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand |
$ |
1,631,526 |
|
|
$ |
1,662,416 |
|
|
$ |
1,680,243 |
|
|
$ |
1,590,164 |
|
|
$ |
1,207,800 |
|
Interest bearing
demand |
1,846,172 |
|
|
1,884,674 |
|
|
1,960,187 |
|
|
1,930,143 |
|
|
1,463,520 |
|
Money market |
1,735,107 |
|
|
1,678,842 |
|
|
1,746,444 |
|
|
1,651,023 |
|
|
1,166,918 |
|
Savings |
471,931 |
|
|
480,590 |
|
|
496,230 |
|
|
497,171 |
|
|
401,205 |
|
Total core
deposits |
5,684,736 |
|
|
5,706,522 |
|
|
5,883,104 |
|
|
5,668,501 |
|
|
4,239,443 |
|
Wholesale money
market |
150,073 |
|
|
150,047 |
|
|
75,030 |
|
|
74,815 |
|
|
125,030 |
|
Time deposits |
2,286,815 |
|
|
2,218,444 |
|
|
2,134,473 |
|
|
2,137,312 |
|
|
1,668,784 |
|
Total
deposits |
$ |
8,121,624 |
|
|
$ |
8,075,013 |
|
|
$ |
8,092,607 |
|
|
$ |
7,880,628 |
|
|
$ |
6,033,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK FINANCIAL CORP. |
QUARTERLY AVERAGE BALANCES AND
YIELDS |
(Dollars in
thousands) |
(Unaudited) |
|
|
|
Three Months Ended September 30,
2017 |
|
Three Months Ended June 30, 2017 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,557,263 |
|
|
$ |
90,064 |
|
|
4.73 |
% |
|
$ |
7,515,169 |
|
|
$ |
86,405 |
|
|
4.61 |
% |
Investment securities (1) |
|
1,589,185 |
|
|
9,704 |
|
|
2.42 |
% |
|
1,596,382 |
|
|
11,005 |
|
|
2.77 |
% |
Interest
bearing deposits in other banks |
|
68,435 |
|
|
198 |
|
|
1.15 |
% |
|
42,140 |
|
|
93 |
|
|
0.89 |
% |
Other
earning assets (2) |
|
28,249 |
|
|
367 |
|
|
5.15 |
% |
|
32,074 |
|
|
388 |
|
|
4.85 |
% |
Total interest earning
assets (1) |
|
9,243,132 |
|
|
$ |
100,333 |
|
|
4.31 |
% |
|
9,185,765 |
|
|
$ |
97,891 |
|
|
4.27 |
% |
Non-interest earning
assets |
|
857,224 |
|
|
|
|
|
|
|
884,900 |
|
|
|
|
|
|
Total assets |
|
$ |
10,100,356 |
|
|
|
|
|
|
|
$ |
10,070,665 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,274,258 |
|
|
$ |
5,896 |
|
|
1.03 |
% |
|
$ |
2,152,086 |
|
|
$ |
4,789 |
|
|
0.89 |
% |
Money
market |
|
1,858,223 |
|
|
2,451 |
|
|
0.52 |
% |
|
1,787,200 |
|
|
1,963 |
|
|
0.44 |
% |
Interest
bearing demand |
|
1,839,844 |
|
|
1,296 |
|
|
0.28 |
% |
|
1,914,622 |
|
|
1,255 |
|
|
0.26 |
% |
Savings |
|
477,530 |
|
|
219 |
|
|
0.18 |
% |
|
488,123 |
|
|
220 |
|
|
0.18 |
% |
Total interest bearing
deposits |
|
6,449,855 |
|
|
9,862 |
|
|
0.61 |
% |
|
6,342,031 |
|
|
8,227 |
|
|
0.52 |
% |
Short-term borrowings
and FHLB advances |
|
480,830 |
|
|
1,457 |
|
|
1.20 |
% |
|
568,575 |
|
|
1,433 |
|
|
1.01 |
% |
Long-term
borrowings |
|
118,423 |
|
|
2,476 |
|
|
8.30 |
% |
|
117,576 |
|
|
2,384 |
|
|
8.13 |
% |
Total interest bearing
liabilities |
|
7,049,108 |
|
|
13,795 |
|
|
0.78 |
% |
|
7,028,182 |
|
|
12,044 |
|
|
0.69 |
% |
Non-interest bearing
demand |
|
1,636,625 |
|
|
|
|
|
|
|
1,655,233 |
|
|
|
|
|
|
Other liabilities |
|
70,245 |
|
|
|
|
|
|
|
64,318 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,344,378 |
|
|
|
|
|
|
|
1,322,932 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
10,100,356 |
|
|
|
|
|
|
|
$ |
10,070,665 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
86,538 |
|
|
3.53 |
% |
|
|
|
$ |
85,847 |
|
|
3.59 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
86,538 |
|
|
|
|
|
|
$ |
85,847 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(622 |
) |
|
|
|
|
|
(605 |
) |
|
|
Net interest
income |
|
|
|
$ |
85,916 |
|
|
|
|
|
|
$ |
85,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2017 |
|
Three Months Ended September 30,
2016 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,557,263 |
|
|
$ |
90,064 |
|
|
4.73 |
% |
|
$ |
5,786,171 |
|
|
$ |
64,055 |
|
|
4.40 |
% |
Investment securities (1) |
|
1,589,185 |
|
|
9,704 |
|
|
2.42 |
% |
|
1,133,031 |
|
|
6,924 |
|
|
2.43 |
% |
Interest
bearing deposits in other banks |
|
68,435 |
|
|
198 |
|
|
1.15 |
% |
|
60,373 |
|
|
69 |
|
|
0.45 |
% |
Other
earning assets (2) |
|
28,249 |
|
|
367 |
|
|
5.15 |
% |
|
29,788 |
|
|
337 |
|
|
4.50 |
% |
Total interest earning
assets (1) |
|
9,243,132 |
|
|
$ |
100,333 |
|
|
4.31 |
% |
|
7,009,363 |
|
|
$ |
71,385 |
|
|
4.05 |
% |
Non-interest earning
assets |
|
857,224 |
|
|
|
|
|
|
|
583,413 |
|
|
|
|
|
|
Total assets |
|
$ |
10,100,356 |
|
|
|
|
|
|
|
$ |
7,592,776 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,274,258 |
|
|
$ |
5,896 |
|
|
1.03 |
% |
|
$ |
1,613,502 |
|
|
$ |
3,992 |
|
|
0.98 |
% |
Money
market |
|
1,858,223 |
|
|
2,451 |
|
|
0.52 |
% |
|
1,225,743 |
|
|
1,132 |
|
|
0.37 |
% |
Interest
bearing demand |
|
1,839,844 |
|
|
1,296 |
|
|
0.28 |
% |
|
1,444,305 |
|
|
752 |
|
|
0.21 |
% |
Savings |
|
477,530 |
|
|
219 |
|
|
0.18 |
% |
|
404,187 |
|
|
205 |
|
|
0.20 |
% |
Total interest bearing
deposits |
|
6,449,855 |
|
|
9,862 |
|
|
0.61 |
% |
|
4,687,737 |
|
|
6,081 |
|
|
0.52 |
% |
Short-term borrowings
and FHLB advances |
|
480,830 |
|
|
1,457 |
|
|
1.20 |
% |
|
558,313 |
|
|
635 |
|
|
0.45 |
% |
Long-term
borrowings |
|
118,423 |
|
|
2,476 |
|
|
8.30 |
% |
|
87,095 |
|
|
1,586 |
|
|
7.24 |
% |
Total interest bearing
liabilities |
|
7,049,108 |
|
|
13,795 |
|
|
0.78 |
% |
|
5,333,145 |
|
|
8,302 |
|
|
0.62 |
% |
Non-interest bearing
demand |
|
1,636,625 |
|
|
|
|
|
|
|
1,188,771 |
|
|
|
|
|
|
Other liabilities |
|
70,245 |
|
|
|
|
|
|
|
48,997 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,344,378 |
|
|
|
|
|
|
|
1,021,863 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
10,100,356 |
|
|
|
|
|
|
|
$ |
7,592,776 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
86,538 |
|
|
3.53 |
% |
|
|
|
$ |
63,083 |
|
|
3.43 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
86,538 |
|
|
|
|
|
|
$ |
63,083 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(622 |
) |
|
|
|
|
|
(456 |
) |
|
|
Net interest
income |
|
|
|
$ |
85,916 |
|
|
|
|
|
|
$ |
62,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
Nine Months Ended September 30,
2017 |
|
Nine Months Ended September 30,
2016 |
|
|
Average Balances |
|
Interest |
|
Yield / Rate |
|
Average Balances |
|
Interest |
|
Yield / Rate |
Interest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
$ |
7,494,448 |
|
|
$ |
260,222 |
|
|
4.64 |
% |
|
$ |
5,684,143 |
|
|
$ |
190,063 |
|
|
4.47 |
% |
Investment securities (1) |
|
1,562,781 |
|
|
30,022 |
|
|
2.57 |
% |
|
1,129,129 |
|
|
20,020 |
|
|
2.37 |
% |
Interest
bearing deposits in other banks |
|
56,319 |
|
|
388 |
|
|
0.92 |
% |
|
66,100 |
|
|
227 |
|
|
0.46 |
% |
Other
earning assets (2) |
|
29,789 |
|
|
1,113 |
|
|
4.99 |
% |
|
27,216 |
|
|
981 |
|
|
4.81 |
% |
Total interest earning
assets (1) |
|
9,143,337 |
|
|
$ |
291,745 |
|
|
4.27 |
% |
|
6,906,588 |
|
|
$ |
211,291 |
|
|
4.09 |
% |
Non-interest earning
assets |
|
883,562 |
|
|
|
|
|
|
|
602,904 |
|
|
|
|
|
|
Total assets |
|
$ |
10,026,899 |
|
|
|
|
|
|
|
$ |
7,509,492 |
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
$ |
2,189,869 |
|
|
$ |
15,224 |
|
|
0.93 |
% |
|
$ |
1,640,959 |
|
|
$ |
12,130 |
|
|
0.99 |
% |
Money
market |
|
1,807,885 |
|
|
6,171 |
|
|
0.46 |
% |
|
1,219,227 |
|
|
3,227 |
|
|
0.35 |
% |
Interest
bearing demand |
|
1,892,081 |
|
|
3,689 |
|
|
0.26 |
% |
|
1,422,389 |
|
|
2,149 |
|
|
0.20 |
% |
Savings |
|
486,668 |
|
|
659 |
|
|
0.18 |
% |
|
411,729 |
|
|
640 |
|
|
0.21 |
% |
Total interest bearing
deposits |
|
6,376,503 |
|
|
25,743 |
|
|
0.54 |
% |
|
4,694,304 |
|
|
18,146 |
|
|
0.52 |
% |
Short-term borrowings
and FHLB advances |
|
514,303 |
|
|
3,777 |
|
|
0.98 |
% |
|
501,892 |
|
|
1,680 |
|
|
0.45 |
% |
Long-term
borrowings |
|
117,587 |
|
|
7,140 |
|
|
8.12 |
% |
|
86,860 |
|
|
4,644 |
|
|
7.14 |
% |
Total interest bearing
liabilities |
|
7,008,393 |
|
|
36,660 |
|
|
0.70 |
% |
|
5,283,056 |
|
|
24,470 |
|
|
0.62 |
% |
Non-interest bearing
demand |
|
1,629,334 |
|
|
|
|
|
|
|
1,171,599 |
|
|
|
|
|
|
Other liabilities |
|
66,787 |
|
|
|
|
|
|
|
44,593 |
|
|
|
|
|
|
Shareholders’
equity |
|
1,322,385 |
|
|
|
|
|
|
|
1,010,244 |
|
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
10,026,899 |
|
|
|
|
|
|
|
$ |
7,509,492 |
|
|
|
|
|
|
Net interest income and
spread (1) |
|
|
|
$ |
255,085 |
|
|
3.57 |
% |
|
|
|
$ |
186,821 |
|
|
3.47 |
% |
Net interest
margin (1) |
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE) (1) |
|
|
|
$ |
255,085 |
|
|
|
|
|
|
$ |
186,821 |
|
|
|
Tax equivalent
adjustment |
|
|
|
(1,811 |
) |
|
|
|
|
|
(1,312 |
) |
|
|
Net interest
income |
|
|
|
$ |
253,274 |
|
|
|
|
|
|
$ |
185,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2017 |
|
Jun 30, 2017 |
|
Dec 31, 2016 |
Net
Income (1) |
|
$ |
25,758 |
|
|
$ |
25,758 |
|
|
$ |
23,806 |
|
|
$ |
23,806 |
|
|
$ |
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) |
|
(98 |
) |
|
(61 |
) |
|
(70 |
) |
|
(43 |
) |
|
(1,894 |
) |
|
(1,170 |
) |
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Conversion and merger related expense tax deductible, net (2) |
|
589 |
|
|
364 |
|
|
(237 |
) |
|
(146 |
) |
|
18,245 |
|
|
11,270 |
|
Conversion and merger related expense non-tax deductible |
|
2 |
|
|
2 |
|
|
1,218 |
|
|
1,218 |
|
|
280 |
|
|
280 |
|
Restructuring expense (2) |
|
595 |
|
|
367 |
|
|
2,978 |
|
|
1,840 |
|
|
4 |
|
|
3 |
|
Legal
Settlement (2) |
|
— |
|
|
— |
|
|
45 |
|
|
28 |
|
|
1,361 |
|
|
841 |
|
Tax
Adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,350 |
) |
|
(1,350 |
) |
Severance
expense (2) |
|
33 |
|
|
21 |
|
|
— |
|
|
— |
|
|
7 |
|
|
4 |
|
Tax
effect of adjustments (2) |
|
(428 |
) |
|
N/A |
|
|
(1,037 |
) |
|
N/A |
|
|
(6,775 |
) |
|
N/A |
|
Core Net
Income (1) |
|
$ |
26,451 |
|
|
$ |
26,451 |
|
|
$ |
26,703 |
|
|
$ |
26,703 |
|
|
$ |
22,230 |
|
|
$ |
22,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares (1) |
|
53,226 |
|
|
|
|
53,226 |
|
|
|
|
50,722 |
|
|
|
Core Net
Income per share (1) |
|
$ |
0.50 |
|
|
|
|
$ |
0.50 |
|
|
|
|
$ |
0.44 |
|
|
|
Average
Assets |
|
10,100,356 |
|
|
|
|
10,070,665 |
|
|
|
|
9,329,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROA (1)
(3) |
|
1.02 |
% |
|
|
|
0.95 |
% |
|
|
|
0.53 |
% |
|
|
Core ROA
(1) (4) |
|
1.05 |
% |
|
|
|
1.06 |
% |
|
|
|
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 |
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
Net interest
income |
$ |
85,916 |
|
|
$ |
85,242 |
|
|
$ |
82,116 |
|
|
$ |
77,819 |
|
|
$ |
62,627 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
income |
14,773 |
|
|
16,000 |
|
|
15,852 |
|
|
17,016 |
|
|
12,370 |
|
Less:
Securities gains, net |
98 |
|
|
70 |
|
|
67 |
|
|
1,894 |
|
|
71 |
|
Core
non-interest income |
$ |
14,675 |
|
|
$ |
15,930 |
|
|
$ |
15,785 |
|
|
$ |
15,122 |
|
|
$ |
12,299 |
|
|
|
|
|
|
|
|
|
|
|
Reported non-interest
expense |
$ |
56,984 |
|
|
$ |
60,985 |
|
|
$ |
62,703 |
|
|
$ |
73,994 |
|
|
$ |
47,530 |
|
Less:
Conversion and merger related expense tax deductible, net |
589 |
|
|
(237 |
) |
|
3,037 |
|
|
18,245 |
|
|
331 |
|
Conversion and merger related expense non-tax deductible |
2 |
|
|
1,218 |
|
|
— |
|
|
280 |
|
|
61 |
|
Restructuring expense, net |
595 |
|
|
2,978 |
|
|
1,912 |
|
|
4 |
|
|
(113 |
) |
Legal
settlement |
— |
|
|
45 |
|
|
— |
|
|
1,361 |
|
|
1,500 |
|
Severance
expense |
33 |
|
|
— |
|
|
— |
|
|
7 |
|
|
— |
|
Core non-interest expense |
$ |
55,765 |
|
|
$ |
56,981 |
|
|
$ |
57,754 |
|
|
$ |
54,097 |
|
|
$ |
45,751 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) |
56.59 |
% |
|
60.24 |
% |
|
64.00 |
% |
|
78.02 |
% |
|
63.38 |
% |
Core efficiency ratio (2) |
55.44 |
% |
|
56.32 |
% |
|
58.99 |
% |
|
58.21 |
% |
|
61.06 |
% |
(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 |
|
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Sep 30, 2016 |
Total shareholders’
equity |
|
$ |
1,354,619 |
|
|
$ |
1,332,084 |
|
|
$ |
1,307,931 |
|
|
$ |
1,292,047 |
|
|
$ |
1,029,841 |
|
Less: goodwill |
|
(231,292 |
) |
|
(234,158 |
) |
|
(234,158 |
) |
|
(235,500 |
) |
|
(134,522 |
) |
Less: intangibles |
|
(27,938 |
) |
|
(29,750 |
) |
|
(31,553 |
) |
|
(33,370 |
) |
|
(12,288 |
) |
Tax effect on
intangible assets (1) |
|
10,480 |
|
|
11,159 |
|
|
12,003 |
|
|
12,694 |
|
|
4,669 |
|
Tangible book value
(2) |
|
$ |
1,105,869 |
|
|
$ |
1,079,335 |
|
|
$ |
1,054,223 |
|
|
$ |
1,035,871 |
|
|
$ |
887,700 |
|
Common
shares outstanding |
|
52,027 |
|
|
51,991 |
|
|
51,966 |
|
|
51,765 |
|
|
43,235 |
|
Book Value per
share |
|
$ |
26.04 |
|
|
$ |
25.62 |
|
|
$ |
25.17 |
|
|
$ |
24.96 |
|
|
$ |
23.82 |
|
Tangible book
value per share |
|
$ |
21.26 |
|
|
$ |
20.76 |
|
|
$ |
20.29 |
|
|
$ |
20.01 |
|
|
$ |
20.53 |
|
(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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