RALEIGH, N.C., Nov. 9, 2011 /PRNewswire/ -- Capital Bank
Corporation (the "Company") (Nasdaq: CBKN), a majority-owned
subsidiary of North American Financial Holdings, Inc. ("NAFH"),
today reported unaudited financial results for the third quarter of
2011. Operating and financial highlights include the following:
- Net income totaled $1.9 million,
or $0.02 per share, in the third
quarter of 2011 and totaled $2.6
million, or $0.03 per share,
in the successor period from January 29 to
September 30, 2011;
- GreenBank, which was the wholly-owned banking subsidiary of
Green Bankshares, Inc. ("Green Bankshares"), was merged with and
into Capital Bank, NA on September 7,
2011;
- Following the GreenBank merger, the Company held a 26%
ownership interest in Capital Bank, NA, which has $6.6 billion in assets and operates 146 branches
in Florida, North Carolina, South Carolina, Tennessee and Virginia; and
- The Company's technology platform was converted to NAFH's
technology platform.
"We are delighted to welcome our new Tennessee teammates to Capital Bank, and we
are excited to serve our Tennessee
customers. With strong capital, we are in position to help
customers grow and achieve their financial objectives across our
Southeastern footprint," stated Gene
Taylor, Chairman and Chief Executive Officer of NAFH and
Capital Bank Corporation.
"We saw significant progress in virtually every area of the bank
during the third quarter. Our strong loan originations, deposit
growth and efficiency improvements are strong indicators of
continued growth in profitability," commented Chris Marshall, Chief Financial Officer of NAFH
and Capital Bank Corporation.
Bank Merger
On June 30, 2011, Capital Bank,
formerly a wholly-owned subsidiary of the Company ("Old Capital
Bank"), merged with and into NAFH National Bank, a national banking
association, with NAFH National Bank as the surviving entity. In
connection with the Bank Merger, NAFH National Bank changed its
name to Capital Bank, NA. On September
7, 2011, NAFH acquired a controlling interest in Green
Bankshares and merged its banking subsidiary, GreenBank, with and
into Capital Bank, NA. Following the GreenBank merger,
Capital Bank, NA is now owned by the Company, NAFH, TIB Financial
Corp. ("TIB Financial") and Green Bankshares. NAFH is the owner of
approximately 83% of the Company's common stock, approximately 94%
of TIB Financial's common stock and approximately 90% of Green
Bankshares' common stock.
Capital Bank, NA (formerly NAFH Bank) was formed on July 16, 2010 in connection with the purchase and
assumption of assets and deposits of three banks – Metro Bank of
Dade County (Miami, Florida),
Turnberry Bank (Aventura, Florida)
and First National Bank of the South (Spartanburg, South Carolina) – from the
Federal Deposit Insurance Corporation (the "FDIC") and is a party
to loss sharing agreements with the FDIC covering the large
majority of the loans it acquired from the FDIC. On
April 29, 2011, Capital Bank, NA
merged with TIB Bank, then a wholly-owned subsidiary of TIB
Financial.
The Bank Merger occurred pursuant to the terms of an Agreement
of Merger entered into by and between Old Capital Bank and Capital
Bank, NA, dated as of June 30, 2011.
In the Bank Merger, each share of Old Capital Bank common stock was
converted into the right to receive shares of Capital Bank, NA
common stock based on each entity's relative tangible book value on
March 31, 2011. Following the
GreenBank merger, the Company now owns approximately 26% of Capital
Bank, NA, with NAFH having a direct ownership of 19%, TIB Financial
owning 21%, and Green Bankshares owning the remaining 34%.
As of September 30, 2011, Capital
Bank, NA operated 146 branches in Florida, North
Carolina, South Carolina,
Tennessee and Virginia and had total assets of $6.6 billion, total deposits of $5.3 billion and shareholders' equity of
$931.1 million.
The Bank Merger, the preceding merger of TIB Bank and Capital
Bank, NA, and the succeeding merger of GreenBank and Capital Bank,
NA were restructuring transactions between commonly-controlled
entities. At the time of the Bank Merger, due to the
de-consolidation of Old Capital Bank, the balance of accumulated
other comprehensive income was reclassified to common stock within
shareholders' equity. Immediately following the Bank Merger, on
June 30, 2011, NAFH, the Company and
TIB Financial made cash contributions of additional capital to
Capital Bank, NA of $4.7 million,
$6.1 million and $5.2 million, respectively, in proportion to
their respective ownership interests in Capital Bank, NA. On
September 30, 2011, the Company made
a $10.0 million contribution of
additional capital to Capital Bank, NA in exchange for additional
shares of Capital Bank, NA. These capital contributions were made
to provide additional capital support for the general business
operations of Capital Bank, NA.
The Company reports its investment in Capital Bank, NA on the
Consolidated Balance Sheet as an equity method investment in that
entity. As of September 30, 2011, the
Company's investment in Capital Bank, NA totaled $241.5 million, which reflected the Company's pro
rata ownership of Capital Bank, NA's total shareholders' equity.
The Company also had an advance to Capital Bank, NA totaling
$3.4 million as of September 30, 2011. In the quarter ended
September 30, 2011, the Company
increased the equity investment balance by $2.2 million based on its equity in Capital Bank,
NA's net income and increased the equity investment balance by
$836 thousand based on its equity in
Capital Bank, NA's other comprehensive income.
The following table presents summarized financial information
for the Company's equity method investee, Capital Bank, NA:
(Dollars in
thousands)
|
|
Three
Months
Ended
Sep. 30, 2011
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
60,782
|
|
|
Interest expense
|
|
|
8,543
|
|
|
Net interest income
|
|
|
52,239
|
|
|
Provision for loan
losses
|
|
|
9,764
|
|
|
Noninterest
income
|
|
|
12,840
|
|
|
Noninterest expense
|
|
|
44,778
|
|
|
Net income
|
|
$
|
6,858
|
|
|
|
|
|
|
|
Potential Merger of the Company and NAFH
On September 1, 2011, the Boards
of Directors of NAFH and the Company approved and adopted a merger
agreement. The merger agreement provides for the merger, following
the receipt of shareholder approval by the Company's shareholders
(including NAFH), of the Company with and into NAFH, with NAFH
continuing as the surviving entity. In the merger, each share of
the Company's common stock issued and outstanding immediately prior
to the completion of the merger, except for shares for which
appraisal rights are properly exercised and certain shares held by
NAFH or the Company, will be converted into the right to receive
0.1354 of a share of NAFH Class A common stock. No fractional
shares of Class A common stock will be issued in connection with
the merger, and holders of the Company's common stock will be
entitled to receive cash in lieu thereof.
Since NAFH is the majority shareholder of the Company, NAFH will
be able to determine the outcome of the shareholder vote needed to
approve the merger.
Net Interest Income
Net interest income in the third quarter of 2011 was
significantly impacted by the Bank Merger, upon which Old Capital
Bank's earning assets and interest-bearing liabilities were
de-consolidated from the Company. Following the Bank Merger on
June 30, 2011, the Company's
interest-bearing liabilities, which consisted of subordinated
debentures, significantly exceeded interest-earning assets, thus
creating negative net interest income and a negative net interest
margin. Net interest income for the quarter ended September 30, 2011 (Successor) and the quarter
ended September 30, 2010
(Predecessor) totaled ($270) thousand
and $13.4 million, respectively. Net
interest margin decreased from 3.48% in the third quarter of 2010
(Predecessor) to (31.57)% in the third quarter of 2011 (Successor)
primarily due to the Bank Merger.
Further, net interest income for the period of January 29 to September 30, 2011 (Successor), the
period of January 1 to January 28,
2011 (Predecessor), and the nine months ended September 30, 2010 (Predecessor) totaled
$23.6 million, $4.0 million and $38.7
million, respectively. Net interest margin increased from
3.30% in the first nine months of 2010 (Predecessor) to 3.85% for
the period of January 29 to September 30,
2011 (Successor) primarily due to a decline in funding costs
as the average rate on total interest-bearing liabilities fell from
1.94% to 1.11% over that period. Average earning assets decreased
from $1.61 billion in the nine months
ended September 30, 2010
(Predecessor) to $1.54 billion in the
period of January 1 to January 28,
2011 (Predecessor) to $943.2
million in the period of January 29
to September 30, 2011 (Successor). The decline in average
earning assets in the successor period was primarily related to the
Bank Merger.
Provision for Loan Losses
Due to the Bank Merger, there was no provision for loan losses
in the quarter ended September 30,
2011 (Successor). Provision for loan losses for the quarter
ended September 30, 2010
(Predecessor) totaled $6.8 million.
In addition, provision for loan losses for the period of
January 29 to September 30, 2011
(Successor), the period of January 1 to
January 28, 2011 (Predecessor), and the nine months ended
September 30, 2010 (Predecessor)
totaled $1.7 million, $40 thousand and $38.5
million, respectively. The loan loss provision in the
successor period reflects $752
thousand of estimated losses inherent in loans originated
subsequent to the NAFH Investment date, $561
thousand of impairment related to probable decreases in cash
flows expected to be collected on certain PCI loan pools, and
$339 thousand of losses on acquired
non-PCI loans.
Noninterest Income
Noninterest income for the quarter ended September 30, 2011 (Successor) and the quarter
ended September 30, 2010
(Predecessor) totaled $2.2 million
and $2.5 million, respectively.
Noninterest income in the third quarter of 2011 (Successor) was
solely related to the Company's equity income from its investment
in Capital Bank, NA.
Further, noninterest income for the period of January 29 to September 30, 2011 (Successor), the
period of January 1 to January 28,
2011 (Predecessor), and the nine months ended September 30, 2010 (Predecessor) totaled
$5.5 million, $832 thousand and $7.5
million, respectively. Noninterest income in the successor
period was significantly impacted by the Company's $2.2 million of equity income from its investment
in Capital Bank, NA. Additionally, noninterest income in the first
nine months of 2010 (Predecessor) benefited from $511 thousand of gains recorded on the sale of
investment securities while no gains or losses were recognized in
the period from January 29 to September 30,
2011 (Successor) or the period from January 1 to January 28, 2011 (Predecessor).
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2011 (Successor) and the quarter
ended September 30, 2010
(Predecessor) totaled $76 thousand
and $14.2 million, respectively.
Expenses in the successor period were significantly reduced by the
Bank Merger and related de-consolidation of Old Capital Bank.
Further, noninterest expense for the period from January 29 to September 30, 2011 (Successor), the
period from January 1 to January 28,
2011 (Predecessor) and the nine months ended September 30, 2010 (Predecessor) totaled
$25.1 million, $4.2 million and $39.2
million, respectively. Additionally, expenses in the first
nine months of 2011 were significantly reduced by the Bank Merger
and related de-consolidation of Old Capital Bank. Expenses in the
period from January 29 to September 30,
2011 (Successor) were impacted by a $4.0 million contract termination fee related to
the conversion and integration of the Company's operations onto a
common technology platform utilized across the NAFH enterprise.
This system conversion is intended to create operating efficiencies
and better position the Company for future growth.
Forward-looking Statements
Information in this press release contains forward-looking
statements. Such forward looking statements can be identified by
the use of forward looking terminology such as "may," "will,"
"expect," "anticipate," "estimate," "believe," or "continue," or
the negative thereof or other variations thereof or comparable
terminology. These statements involve risks and uncertainties that
could cause actual results to differ materially, including without
limitation, market and economic conditions, the management of our
growth, the risks associated with Capital Bank, NA's loan portfolio
and real estate holdings, local economic conditions affecting
retail and commercial real estate, ability to integrate our new
management and directors without encountering potential
difficulties, the Company's geographic concentration in the
southeastern region of the United
States, ability to integrate the operations of Old Capital
Bank with those of Capital Bank, NA, the potential for the
interests of the other shareholders of Capital Bank, NA to differ
from those of the Company, restrictions imposed by Capital Bank,
NA's loss sharing agreements with the FDIC, the assumptions and
judgments required by loss share accounting and the acquisition
method of accounting, competition within the industry, dependence
on key personnel, government legislation and regulation, the risks
associated with identification, completion and integration of any
future acquisitions, risks related to Capital Bank, NA's technology
and information systems, the fact that the Company has experienced
net losses during the last three fiscal years, risks associated
with the controlling interest of NAFH in the Company, and risks
associated with the limited liquidity of the Company's common
stock. Additional factors that could cause actual results to differ
materially are discussed in Capital Bank Corporation's filings with
the Securities and Exchange Commission, including without
limitation its Annual Report on Form 10-K, its Quarterly Reports on
Form 10-Q and its Current Reports on Form 8-K. Capital Bank
Corporation does not undertake a duty to update any forward-looking
statements in this press release.
CAPITAL BANK
CORPORATION
Results of
Operations
|
|
|
|
|
|
Successor
Company
|
|
Predecessor
Company
|
|
(Dollars in thousands except per
share data)
|
|
Three Months
Ended
Sep. 30, 2011
|
|
Three Months
Ended
Jun. 30, 2011
|
|
Jan. 29, 2011
to
Mar. 31, 2011
|
|
|
Jan. 1, 2011
to
Jan. 28, 2011
|
|
Three Months
Ended
Dec. 31, 2010
|
|
Three Months
Ended
Sep. 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
85
|
|
$
|
17,440
|
|
$
|
12,281
|
|
|
$
|
5,955
|
|
$
|
18,327
|
|
$
|
19,535
|
|
|
Interest expense
|
|
|
355
|
|
|
3,551
|
|
|
2,260
|
|
|
|
1,996
|
|
|
6,040
|
|
|
6,153
|
|
|
Net interest income
(loss)
|
|
|
(270)
|
|
|
13,889
|
|
|
10,021
|
|
|
|
3,959
|
|
|
12,287
|
|
|
13,382
|
|
|
Provision for loan
losses
|
|
|
–
|
|
|
1,485
|
|
|
167
|
|
|
|
40
|
|
|
20,011
|
|
|
6,763
|
|
|
Net interest income (loss) after
provision
|
|
|
(270)
|
|
|
12,404
|
|
|
9,854
|
|
|
|
3,919
|
|
|
(7,724)
|
|
|
6,619
|
|
|
Noninterest income
|
|
|
2,169
|
|
|
2,065
|
|
|
1,252
|
|
|
|
832
|
|
|
8,004
|
|
|
2,500
|
|
|
Noninterest expense
|
|
|
76
|
|
|
12,753
|
|
|
12,229
|
|
|
|
4,155
|
|
|
15,129
|
|
|
14,210
|
|
|
Net income (loss) before
taxes
|
|
|
1,823
|
|
|
1,716
|
|
|
(1,123)
|
|
|
|
596
|
|
|
(14,849)
|
|
|
(5,091)
|
|
|
Income tax expense
(benefit)
|
|
|
(117)
|
|
|
449
|
|
|
(549)
|
|
|
|
–
|
|
|
18,634
|
|
|
3,975
|
|
|
Net income (loss)
|
|
|
1,940
|
|
|
1,267
|
|
|
(574)
|
|
|
|
596
|
|
|
(33,483)
|
|
|
(9,066)
|
|
|
Dividends and accretion on
preferred stock
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
|
861
|
|
|
589
|
|
|
588
|
|
|
Net income (loss) attributable
to common shareholders
|
|
$
|
1,940
|
|
$
|
1,267
|
|
$
|
(574)
|
|
|
$
|
(265)
|
|
$
|
(34,072)
|
|
$
|
(9,654)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share –
basic and diluted
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
$
|
(2.59)
|
|
$
|
(0.74)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period
Balances
|
|
|
|
|
|
Successor
Company
|
|
Predecessor
Company
|
|
(Dollars in thousands except per
share data)
|
|
Sep. 30,
2011
|
|
Jun. 30,
2011
|
|
Mar. 31,
2011
|
|
|
Dec. 31,
2010
|
|
Sep. 30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
247,606
|
|
$
|
247,576
|
|
$
|
1,704,656
|
|
|
$
|
1,585,547
|
|
$
|
1,649,699
|
|
|
Total earning assets
|
|
|
3,393
|
|
|
3,393
|
|
|
1,531,366
|
|
|
|
1,537,863
|
|
|
1,579,489
|
|
|
Cash and cash
equivalents
|
|
|
2,435
|
|
|
12,477
|
|
|
116,650
|
|
|
|
66,745
|
|
|
68,069
|
|
|
Investment securities
|
|
|
–
|
|
|
–
|
|
|
304,902
|
|
|
|
223,292
|
|
|
196,046
|
|
|
Loans
|
|
|
–
|
|
|
–
|
|
|
1,125,260
|
|
|
|
1,254,479
|
|
|
1,324,932
|
|
|
Allowance for loan
losses
|
|
|
–
|
|
|
–
|
|
|
167
|
|
|
|
36,061
|
|
|
36,249
|
|
|
Investment in and advance to
Capital Bank, NA
|
|
|
244,863
|
|
|
234,671
|
|
|
–
|
|
|
|
–
|
|
|
–
|
|
|
Intangible assets
|
|
|
–
|
|
|
–
|
|
|
35,807
|
|
|
|
1,774
|
|
|
2,006
|
|
|
Deposits
|
|
|
–
|
|
|
–
|
|
|
1,349,661
|
|
|
|
1,343,286
|
|
|
1,359,411
|
|
|
Borrowings
|
|
|
–
|
|
|
–
|
|
|
93,513
|
|
|
|
121,000
|
|
|
129,000
|
|
|
Subordinated
debentures
|
|
|
18,625
|
|
|
18,561
|
|
|
19,431
|
|
|
|
34,323
|
|
|
34,323
|
|
|
Shareholders' equity
|
|
|
222,831
|
|
|
228,377
|
|
|
228,760
|
|
|
|
76,688
|
|
|
116,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
$
|
2.60
|
|
$
|
2.66
|
|
$
|
2.68
|
|
|
$
|
2.75
|
|
$
|
5.81
|
|
|
Tangible book value
|
|
|
2.25
|
|
|
2.29
|
|
|
2.26
|
|
|
|
2.61
|
|
|
5.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
|
85,802,164
|
|
|
85,802,164
|
|
|
85,489,260
|
|
|
|
12,877,846
|
|
|
12,880,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK
CORPORATION
Average Balances and
Yields/Rates
|
|
|
|
|
|
Successor
Company
|
|
Predecessor
Company
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
Sep. 30, 2011
|
|
Three Months
Ended
Jun. 30, 2011
|
|
Jan. 29,
2011
to
Mar. 31, 2011
|
|
|
Jan. 1,
2011
to
Jan. 28, 2011
|
|
Three Months
Ended
Dec. 31, 2010
|
|
Three Months
Ended
Sep. 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
251,092
|
|
$
|
1,702,281
|
|
$
|
1,693,890
|
|
|
$
|
1,592,750
|
|
$
|
1,648,467
|
|
$
|
1,665,975
|
|
|
Total earning assets
|
|
|
3,393
|
|
|
1,518,835
|
|
|
1,520,847
|
|
|
|
1,542,617
|
|
|
1,577,651
|
|
|
1,578,241
|
|
|
Investment securities
|
|
|
–
|
|
|
338,035
|
|
|
242,622
|
|
|
|
223,854
|
|
|
198,524
|
|
|
218,883
|
|
|
Loans
|
|
|
–
|
|
|
1,127,603
|
|
|
1,138,367
|
|
|
|
1,249,787
|
|
|
1,295,748
|
|
|
1,342,835
|
|
|
Deposits
|
|
|
–
|
|
|
1,343,599
|
|
|
1,340,741
|
|
|
|
1,350,336
|
|
|
1,366,905
|
|
|
1,345,562
|
|
|
Borrowings
|
|
|
–
|
|
|
93,349
|
|
|
98,599
|
|
|
|
120,032
|
|
|
126,130
|
|
|
150,478
|
|
|
Subordinated
debentures
|
|
|
18,603
|
|
|
18,848
|
|
|
19,313
|
|
|
|
34,323
|
|
|
34,323
|
|
|
34,323
|
|
|
Shareholders' equity
|
|
|
231,778
|
|
|
231,107
|
|
|
226,423
|
|
|
|
78,724
|
|
|
110,788
|
|
|
125,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields/Rates(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on earning
assets
|
|
|
9.94
|
%
|
|
4.68
|
%
|
|
5.07
|
%
|
|
|
4.61
|
%
|
|
4.68
|
%
|
|
5.04
|
%
|
|
Cost of interest-bearing
liabilities
|
|
|
7.57
|
|
|
1.07
|
|
|
1.04
|
|
|
|
1.69
|
|
|
1.71
|
|
|
1.76
|
|
|
Net interest spread
|
|
|
2.37
|
|
|
3.61
|
|
|
4.03
|
|
|
|
2.92
|
|
|
2.97
|
|
|
3.28
|
|
|
Net interest margin
|
|
|
(31.57)
|
|
|
3.74
|
|
|
4.15
|
|
|
|
3.09
|
|
|
3.16
|
|
|
3.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Annualized and on a fully
taxable equivalent basis.
|
|
|
|
|
|
CAPITAL BANK
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
(Dollars in
thousands)
|
|
Sep. 30,
2011
|
|
|
Dec. 31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
2,435
|
|
|
$
|
13,646
|
|
|
Interest-bearing deposits
with banks
|
|
|
–
|
|
|
|
53,099
|
|
|
Total cash and cash
equivalents
|
|
|
2,435
|
|
|
|
66,745
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
Investment
securities – available for sale, at fair value
|
|
|
–
|
|
|
|
214,991
|
|
|
Other
investments
|
|
|
–
|
|
|
|
8,301
|
|
|
Total investment securities
|
|
|
–
|
|
|
|
223,292
|
|
|
Mortgage loans held for
sale
|
|
|
–
|
|
|
|
6,993
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
Loans – net
of unearned income and deferred fees
|
|
|
–
|
|
|
|
1,254,479
|
|
|
Allowance
for loan losses
|
|
|
–
|
|
|
|
(36,061)
|
|
|
Net loans
|
|
|
–
|
|
|
|
1,218,418
|
|
|
Investment in and advance to
Capital Bank, NA
|
|
|
244,863
|
|
|
|
–
|
|
|
Other real estate
|
|
|
–
|
|
|
|
18,334
|
|
|
Premises and equipment,
net
|
|
|
–
|
|
|
|
25,034
|
|
|
Other intangible assets,
net
|
|
|
–
|
|
|
|
1,774
|
|
|
Other assets
|
|
|
308
|
|
|
|
24,957
|
|
|
Total
assets
|
|
$
|
247,606
|
|
|
$
|
1,585,547
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
$
|
–
|
|
|
$
|
116,113
|
|
|
NOW accounts
|
|
|
–
|
|
|
|
185,782
|
|
|
Money market
accounts
|
|
|
–
|
|
|
|
137,422
|
|
|
Savings
deposits
|
|
|
–
|
|
|
|
30,639
|
|
|
Time deposits
|
|
|
–
|
|
|
|
873,330
|
|
|
Total deposits
|
|
|
–
|
|
|
|
1,343,286
|
|
|
Borrowings
|
|
|
–
|
|
|
|
121,000
|
|
|
Subordinated
debentures
|
|
|
18,625
|
|
|
|
34,323
|
|
|
Other liabilities
|
|
|
6,150
|
|
|
|
10,250
|
|
|
Total
liabilities
|
|
|
24,775
|
|
|
|
1,508,859
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Preferred stock, $1,000 par
value; 100,000 shares authorized; 41,279 shares issued
and outstanding (liquidation
preference of $41,279) at December 31, 2010
|
|
|
–
|
|
|
|
40,418
|
|
|
Common stock, no par value;
300,000,000 shares authorized; 85,802,164 and
12,877,846 shares issued and
outstanding
|
|
|
219,362
|
|
|
|
145,594
|
|
|
Retained earnings (accumulated
deficit)
|
|
|
2,633
|
|
|
|
(108,027)
|
|
|
Accumulated other comprehensive
income (loss)
|
|
|
836
|
|
|
|
(1,297)
|
|
|
Total shareholders'
equity
|
|
|
222,831
|
|
|
|
76,688
|
|
|
Total
liabilities and shareholders' equity
|
|
$
|
247,606
|
|
|
$
|
1,585,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK
CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
(Dollars in thousands except per
share data)
|
|
Three Months
Ended
Sep. 30, 2011
|
|
|
Three Months
Ended
Sep. 30, 2010
|
|
Jan. 29,
2011
to
Sep. 30, 2011
|
|
|
Jan. 1,
2011
to
Jan. 28, 2011
|
|
Nine Months
Ended
Sep. 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loan
fees
|
|
$
|
–
|
|
|
$
|
17,357
|
|
$
|
25,971
|
|
|
$
|
5,479
|
|
$
|
52,080
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable interest
income
|
|
|
–
|
|
|
|
1,854
|
|
|
3,206
|
|
|
|
391
|
|
|
5,851
|
|
|
Tax-exempt interest
income
|
|
|
–
|
|
|
|
285
|
|
|
398
|
|
|
|
74
|
|
|
1,369
|
|
|
Dividends
|
|
|
–
|
|
|
|
22
|
|
|
59
|
|
|
|
–
|
|
|
58
|
|
|
Federal funds and other
interest income
|
|
|
85
|
|
|
|
17
|
|
|
172
|
|
|
|
11
|
|
|
37
|
|
|
Total interest
income
|
|
|
85
|
|
|
|
19,535
|
|
|
29,806
|
|
|
|
5,955
|
|
|
59,395
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
–
|
|
|
|
4,683
|
|
|
4,560
|
|
|
|
1,551
|
|
|
16,438
|
|
|
Borrowings and
subordinated debentures
|
|
|
355
|
|
|
|
1,470
|
|
|
1,606
|
|
|
|
445
|
|
|
4,281
|
|
|
Total interest
expense
|
|
|
355
|
|
|
|
6,153
|
|
|
6,166
|
|
|
|
1,996
|
|
|
20,719
|
|
|
Net interest income
(loss)
|
|
|
(270)
|
|
|
|
13,382
|
|
|
23,640
|
|
|
|
3,959
|
|
|
38,676
|
|
|
Provision for loan
losses
|
|
|
–
|
|
|
|
6,763
|
|
|
1,652
|
|
|
|
40
|
|
|
38,534
|
|
|
Net interest income (loss)
after provision for loan losses
|
|
|
(270)
|
|
|
|
6,619
|
|
|
21,988
|
|
|
|
3,919
|
|
|
142
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and other
fees
|
|
|
–
|
|
|
|
746
|
|
|
1,355
|
|
|
|
291
|
|
|
2,468
|
|
|
Bank card
services
|
|
|
–
|
|
|
|
521
|
|
|
847
|
|
|
|
174
|
|
|
1,479
|
|
|
Mortgage origination and
other loan fees
|
|
|
–
|
|
|
|
442
|
|
|
518
|
|
|
|
210
|
|
|
1,108
|
|
|
Brokerage fees
|
|
|
–
|
|
|
|
271
|
|
|
308
|
|
|
|
78
|
|
|
743
|
|
|
Bank-owned life
insurance
|
|
|
–
|
|
|
|
138
|
|
|
134
|
|
|
|
10
|
|
|
632
|
|
|
Equity income from
investment in Capital Bank, NA
|
|
|
2,169
|
|
|
|
–
|
|
|
2,169
|
|
|
|
–
|
|
|
–
|
|
|
Net gain on sale of
investment securities
|
|
|
–
|
|
|
|
185
|
|
|
–
|
|
|
|
–
|
|
|
511
|
|
|
Other
|
|
|
–
|
|
|
|
197
|
|
|
155
|
|
|
|
69
|
|
|
604
|
|
|
Total noninterest
income
|
|
|
2,169
|
|
|
|
2,500
|
|
|
5,486
|
|
|
|
832
|
|
|
7,545
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
–
|
|
|
|
5,918
|
|
|
9,525
|
|
|
|
1,977
|
|
|
16,637
|
|
|
Occupancy
|
|
|
–
|
|
|
|
1,460
|
|
|
2,926
|
|
|
|
548
|
|
|
4,418
|
|
|
Furniture and
equipment
|
|
|
–
|
|
|
|
867
|
|
|
1,401
|
|
|
|
275
|
|
|
2,312
|
|
|
Data processing and
telecommunications
|
|
|
–
|
|
|
|
488
|
|
|
911
|
|
|
|
180
|
|
|
1,530
|
|
|
Advertising and public
relations
|
|
|
–
|
|
|
|
435
|
|
|
325
|
|
|
|
131
|
|
|
1,464
|
|
|
Office expenses
|
|
|
–
|
|
|
|
320
|
|
|
498
|
|
|
|
93
|
|
|
940
|
|
|
Professional
fees
|
|
|
–
|
|
|
|
626
|
|
|
543
|
|
|
|
190
|
|
|
1,785
|
|
|
Business development and
travel
|
|
|
–
|
|
|
|
363
|
|
|
550
|
|
|
|
87
|
|
|
937
|
|
|
Amortization of other
intangible assets
|
|
|
–
|
|
|
|
235
|
|
|
478
|
|
|
|
62
|
|
|
705
|
|
|
ORE losses and
miscellaneous loan costs
|
|
|
–
|
|
|
|
1,833
|
|
|
1,608
|
|
|
|
176
|
|
|
3,858
|
|
|
Directors' fees
|
|
|
–
|
|
|
|
236
|
|
|
93
|
|
|
|
68
|
|
|
828
|
|
|
FDIC deposit
insurance
|
|
|
–
|
|
|
|
712
|
|
|
1,076
|
|
|
|
266
|
|
|
2,028
|
|
|
Contract termination
fees
|
|
|
–
|
|
|
|
–
|
|
|
3,955
|
|
|
|
–
|
|
|
–
|
|
|
Other
|
|
|
76
|
|
|
|
717
|
|
|
1,169
|
|
|
|
102
|
|
|
1,738
|
|
|
Total noninterest
expense
|
|
|
76
|
|
|
|
14,210
|
|
|
25,058
|
|
|
|
4,155
|
|
|
39,180
|
|
|
Net income (loss) before
taxes
|
|
|
1,823
|
|
|
|
(5,091)
|
|
|
2,416
|
|
|
|
596
|
|
|
(31,493)
|
|
|
Income tax expense
(benefit)
|
|
|
(117)
|
|
|
|
3,975
|
|
|
(217)
|
|
|
|
–
|
|
|
(3,510)
|
|
|
Net income
(loss)
|
|
|
1,940
|
|
|
|
(9,066)
|
|
|
2,633
|
|
|
|
596
|
|
|
(27,983)
|
|
|
Dividends and accretion on
preferred stock
|
|
|
–
|
|
|
|
588
|
|
|
–
|
|
|
|
861
|
|
|
1,766
|
|
|
Net (income) loss
attributable to common shareholders
|
|
$
|
1,940
|
|
|
$
|
(9,654)
|
|
$
|
2,633
|
|
|
$
|
(265)
|
|
$
|
(29,749)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share
– basic
|
|
$
|
0.02
|
|
|
$
|
(0.74)
|
|
$
|
0.03
|
|
|
$
|
(0.02)
|
|
$
|
(2.34)
|
|
|
Earnings (loss) per common share
– diluted
|
|
$
|
0.02
|
|
|
$
|
(0.74)
|
|
$
|
0.03
|
|
|
$
|
(0.02)
|
|
$
|
(2.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL BANK
CORPORATION
Average Balances, Interest
Earned or Paid, and Interest Yields/Rates
Tax Equivalent
Basis(1)
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
(Dollars in
thousands)
|
|
Three Months
Ended
Sep. 30, 2011
|
|
Three Months
Ended
Jun. 30, 2011
|
|
|
Three Months
Ended
Sep. 30, 2010
|
|
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(2)
|
|
$
|
–
|
|
$
|
–
|
|
|
–
|
%
|
$
|
1,128,456
|
|
$
|
15,029
|
|
|
5.34
|
%
|
|
$
|
1,342,835
|
|
$
|
17,512
|
|
|
5.23
|
%
|
|
Investment
securities(3)
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
334,230
|
|
|
2,639
|
|
|
3.16
|
|
|
|
211,547
|
|
|
2,309
|
|
|
4.37
|
|
|
Interest-bearing
deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
56,149
|
|
|
40
|
|
|
0.29
|
|
|
|
23,859
|
|
|
17
|
|
|
0.29
|
|
|
Advance to Capital Bank,
NA
|
|
|
3,393
|
|
|
85
|
|
|
9.94
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
Total interest-earning
assets
|
|
|
3,393
|
|
$
|
85
|
|
|
9.94
|
%
|
|
1,518,835
|
|
$
|
17,708
|
|
|
4.68
|
%
|
|
|
1,578,241
|
|
$
|
19,838
|
|
|
5.04
|
%
|
|
Cash and due from
banks
|
|
|
9,268
|
|
|
|
|
|
|
|
|
16,587
|
|
|
|
|
|
|
|
|
|
17,285
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
238,431
|
|
|
|
|
|
|
|
|
166,859
|
|
|
|
|
|
|
|
|
|
70,449
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
251,092
|
|
|
|
|
|
|
|
$
|
1,702,281
|
|
|
|
|
|
|
|
|
$
|
1,665,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
accounts
|
|
$
|
–
|
|
$
|
–
|
|
|
–
|
%
|
$
|
345,307
|
|
$
|
666
|
|
|
0.77
|
%
|
|
$
|
323,242
|
|
$
|
634
|
|
|
0.79
|
%
|
|
Savings accounts
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
32,241
|
|
|
10
|
|
|
0.12
|
|
|
|
31,594
|
|
|
10
|
|
|
0.13
|
|
|
Time deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
843,725
|
|
|
2,110
|
|
|
1.00
|
|
|
|
859,968
|
|
|
4,039
|
|
|
1.88
|
|
|
Total interest-bearing
deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,221,273
|
|
|
2,786
|
|
|
0.91
|
|
|
|
1,214,804
|
|
|
4,683
|
|
|
1.55
|
|
|
Borrowings
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
93,849
|
|
|
410
|
|
|
1.76
|
|
|
|
150,478
|
|
|
1,156
|
|
|
3.08
|
|
|
Subordinated
debentures
|
|
|
18,603
|
|
|
355
|
|
|
7.57
|
|
|
18,848
|
|
|
355
|
|
|
7.55
|
|
|
|
34,323
|
|
|
314
|
|
|
3.67
|
|
|
Total interest-bearing
liabilities
|
|
|
18,603
|
|
$
|
355
|
|
|
7.57
|
%
|
|
1,333,470
|
|
$
|
3,551
|
|
|
1.07
|
%
|
|
|
1,399,605
|
|
$
|
6,153
|
|
|
1.76
|
%
|
|
Noninterest-bearing
deposits
|
|
|
–
|
|
|
|
|
|
|
|
|
122,326
|
|
|
|
|
|
|
|
|
|
130,758
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
711
|
|
|
|
|
|
|
|
|
15,378
|
|
|
|
|
|
|
|
|
|
10,509
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
19,314
|
|
|
|
|
|
|
|
|
1,471,174
|
|
|
|
|
|
|
|
|
|
1,540,872
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
231,778
|
|
|
|
|
|
|
|
|
231,107
|
|
|
|
|
|
|
|
|
|
125,103
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
$
|
251,092
|
|
|
|
|
|
|
|
$
|
1,702,281
|
|
|
|
|
|
|
|
|
$
|
1,665,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread(4)
|
|
|
|
|
|
|
|
|
2.37
|
%
|
|
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
|
|
3.28
|
%
|
|
Tax equivalent
adjustment
|
|
|
|
|
$
|
–
|
|
|
|
|
|
|
|
$
|
268
|
|
|
|
|
|
|
|
|
$
|
303
|
|
|
|
|
|
Net interest income and net
interest margin(5)
|
|
|
|
|
$
|
(270)
|
|
|
(31.57)
|
%
|
|
|
|
$
|
14,157
|
|
|
3.74
|
%
|
|
|
|
|
$
|
13,685
|
|
|
3.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The tax equivalent adjustment is
computed using a federal tax rate of 34% and is applied to interest
income from tax exempt municipal loans and investment
securities.
|
|
(2)
|
Loans include mortgage loans
held for sale in addition to nonaccrual loans for which accrual of
interest has not been recorded.
|
|
(3)
|
The average balance for
investment securities excludes the effect of their mark-to-market
adjustment, if any.
|
|
(4)
|
Net interest spread represents
the difference between the average yield on interest-earning assets
and the average cost of interest-bearing liabilities.
|
|
(5)
|
Net interest margin represents
net interest income divided by average interest-earning
assets.
|
|
|
|
|
|
CAPITAL BANK
CORPORATION
Average Balances, Interest
Earned or Paid, and Interest Yields/Rates
Tax Equivalent
Basis(1)
|
|
|
|
|
|
Successor
Company
|
|
Predecessor
Company
|
|
|
(Dollars in
thousands)
|
|
Period
of
Jan. 29 to Sep. 30,
2011
|
|
Period
of
Jan. 1 to Jan. 28,
2011
|
|
Nine Months
Ended
Sep. 30, 2010
|
|
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(2)
|
|
$
|
702,197
|
|
$
|
26,184
|
|
|
5.62
|
%
|
|
$
|
1,253,296
|
|
$
|
5,530
|
|
|
5.20
|
%
|
$
|
1,369,688
|
|
$
|
52,539
|
|
|
5.13
|
%
|
|
Investment
securities(3)
|
|
|
184,886
|
|
|
3,893
|
|
|
3.16
|
|
|
|
225,971
|
|
|
504
|
|
|
2.68
|
|
|
220,525
|
|
|
7,987
|
|
|
4.83
|
|
|
Interest-bearing
deposits
|
|
|
54,834
|
|
|
87
|
|
|
0.24
|
|
|
|
63,350
|
|
|
11
|
|
|
0.20
|
|
|
23,142
|
|
|
37
|
|
|
0.21
|
|
|
Advance to Capital Bank,
NA
|
|
|
1,290
|
|
|
85
|
|
|
9.94
|
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
Total interest-earning
assets
|
|
|
943,207
|
|
$
|
30,249
|
|
|
4.84
|
%
|
|
|
1,542,617
|
|
$
|
6,045
|
|
|
4.61
|
%
|
|
1,613,355
|
|
$
|
60,563
|
|
|
5.02
|
%
|
|
Cash and due from
banks
|
|
|
13,752
|
|
|
|
|
|
|
|
|
|
16,112
|
|
|
|
|
|
|
|
|
18,177
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
188,626
|
|
|
|
|
|
|
|
|
|
34,021
|
|
|
|
|
|
|
|
|
74,275
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,145,585
|
|
|
|
|
|
|
|
|
$
|
1,592,750
|
|
|
|
|
|
|
|
$
|
1,705,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
accounts
|
|
$
|
213,761
|
|
$
|
1,084
|
|
|
0.76
|
%
|
|
$
|
334,668
|
|
$
|
211
|
|
|
0.74
|
%
|
$
|
330,596
|
|
$
|
2,168
|
|
|
0.88
|
%
|
|
Savings accounts
|
|
|
19,808
|
|
|
16
|
|
|
0.12
|
|
|
|
30,862
|
|
|
3
|
|
|
0.11
|
|
|
30,445
|
|
|
30
|
|
|
0.13
|
|
|
Time deposits
|
|
|
524,847
|
|
|
3,460
|
|
|
0.99
|
|
|
|
870,146
|
|
|
1,337
|
|
|
1.81
|
|
|
874,331
|
|
|
14,240
|
|
|
2.18
|
|
|
Total interest-bearing
deposits
|
|
|
758,416
|
|
|
4,560
|
|
|
0.91
|
|
|
|
1,235,676
|
|
|
1,551
|
|
|
1.48
|
|
|
1,235,372
|
|
|
16,438
|
|
|
1.78
|
|
|
Borrowings
|
|
|
59,141
|
|
|
665
|
|
|
1.70
|
|
|
|
120,032
|
|
|
343
|
|
|
3.36
|
|
|
158,158
|
|
|
3,446
|
|
|
2.91
|
|
|
Subordinated
debentures
|
|
|
18,868
|
|
|
941
|
|
|
7.52
|
|
|
|
34,323
|
|
|
102
|
|
|
3.50
|
|
|
33,304
|
|
|
830
|
|
|
3.33
|
|
|
Repurchase agreements
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,068
|
|
|
5
|
|
|
0.32
|
|
|
Total interest-bearing
liabilities
|
|
|
836,425
|
|
$
|
6,166
|
|
|
1.11
|
%
|
|
|
1,390,031
|
|
$
|
1,996
|
|
|
1.69
|
%
|
|
1,428,902
|
|
$
|
20,719
|
|
|
1.94
|
%
|
|
Noninterest-bearing
deposits
|
|
|
73,696
|
|
|
|
|
|
|
|
|
|
114,660
|
|
|
|
|
|
|
|
|
132,058
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
8,202
|
|
|
|
|
|
|
|
|
|
9,635
|
|
|
|
|
|
|
|
|
10,585
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
918,323
|
|
|
|
|
|
|
|
|
|
1,514,326
|
|
|
|
|
|
|
|
|
1,571,545
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
227,262
|
|
|
|
|
|
|
|
|
|
78,424
|
|
|
|
|
|
|
|
|
134,262
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
$
|
1,145,585
|
|
|
|
|
|
|
|
|
$
|
1,592,750
|
|
|
|
|
|
|
|
$
|
1,705,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread(4)
|
|
|
|
|
|
|
|
|
3.73
|
%
|
|
|
|
|
|
|
|
|
2.92
|
%
|
|
|
|
|
|
|
|
3.08
|
%
|
|
Tax equivalent
adjustment
|
|
|
|
|
$
|
443
|
|
|
|
|
|
|
|
|
$
|
90
|
|
|
|
|
|
|
|
$
|
1,168
|
|
|
|
|
|
Net interest income and net
interest margin(5)
|
|
|
|
|
$
|
24,083
|
|
|
3.85
|
%
|
|
|
|
|
$
|
4,049
|
|
|
3.09
|
%
|
|
|
|
$
|
39,844
|
|
|
3.30
|
%
|
|
|
|
|
|
|
|
|
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(1)
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The tax equivalent adjustment is
computed using a federal tax rate of 34% and is applied to interest
income from tax exempt municipal loans and investment
securities.
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(2)
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Loans include mortgage loans
held for sale in addition to nonaccrual loans for which accrual of
interest has not been recorded.
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(3)
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The average balance for
investment securities excludes the effect of their mark-to-market
adjustment, if any.
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(4)
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Net interest spread represents
the difference between the average yield on interest-earning assets
and the average cost of interest-bearing liabilities.
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(5)
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Net interest margin represents
net interest income divided by average interest-earning
assets.
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SOURCE Capital Bank Corporation