RALEIGH, N.C., May 7, 2012 /PRNewswire/ -- Capital Bank
Corporation (the "Company") (Nasdaq: CBKN), a majority-owned
subsidiary of Capital Bank Financial Corp. ("CBF," formerly known
as North American Financial Holdings, Inc.), today reported
financial results for the first quarter of 2012. Operating and
financial highlights include the following:
- Net income to common shareholders totaled $2.7 million, or $0.03 per share, in the three months ended
March 31, 2012, which was an increase
from a net loss to common shareholders of $574 thousand, or ($0.01) per share, in the successor period of
January 29 to March 31, 2011 and
$265 thousand, or ($0.02) per share, in the predecessor period of
January 1 to January 28,
2011;
- The Company held a 26% ownership interest in Capital
Bank, NA, which has $6.5 billion in
assets and operates 143 branches in Florida, North
Carolina, South Carolina,
Tennessee and Virginia; and
- The Company increased the equity investment balance in
Capital Bank, NA by $3.1 million
based on its equity in Capital Bank, NA's net income and decreased
the equity investment balance by $625
thousand based on its equity in Capital Bank, NA's other
comprehensive income in the first quarter of 2012.
"I am very excited about CBF's agreement to acquire Southern
Community Financial Corp. While shareholder and regulatory
approvals are still pending, Southern Community will expand the
Bank's franchise throughout North
Carolina, where we see significant growth opportunities.
Integration planning is already underway, and as I have gotten to
know more of Southern Community's workforce, I have been impressed
by their professionalism and their commitment to their customers
and their communities," stated Gene
Taylor, Chairman and Chief Executive Officer of CBF and
Capital Bank Corporation.
"Organic loan production, deleveraging and core deposit growth
is helping improve the Bank's profitability, and now that the
integration of Tennessee is
complete, we are in position to rationalize certain duplicative
functions with the goal of continuing to improve our efficiency
ratio," commented Chris Marshall,
Chief Financial Officer of CBF and Capital Bank Corporation.
Equity Method Investment in Capital Bank, NA
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 (the
"Bank Merger"). In connection with the Bank Merger, NAFH National
Bank changed its name to Capital Bank, NA. On September 7, 2011, CBF 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, CBF, TIB
Financial Corp. ("TIB Financial") and Green Bankshares. CBF 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. Previously, 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 CBF having a direct ownership of 19%, TIB Financial
owning 21%, and Green Bankshares owning the remaining 34%.
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
deconsolidation 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, CBF, 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. As of March
31, 2012, Capital Bank, NA operated 143 branches in
Florida, North Carolina, South Carolina, Tennessee and Virginia and had total assets of $6.5 billion, total deposits of $5.3 billion and shareholders' equity of
$949.2 million.
The Company reports its investment in Capital Bank, NA on the
Consolidated Balance Sheet as an equity method investment in that
entity. As of March 31, 2012, the
Company's investment in Capital Bank, NA totaled $246.2 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 March 31, 2012. In the first quarter of 2012, the
Company increased the equity investment balance by $3.1 million based on its equity in Capital Bank,
NA's net income and decreased the equity investment balance by
$625 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, for
each period presented:
Capital
Bank, NA
|
|
Three
Months
Ended
March 31, 2012
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
74,132
|
|
Interest
expense
|
|
|
8,725
|
|
Net
interest income
|
|
|
65,407
|
|
Provision
for loan losses
|
|
|
5,376
|
|
Noninterest income
|
|
|
14,614
|
|
Noninterest expense
|
|
|
55,217
|
|
Net
income
|
|
|
11,907
|
|
Potential Merger of the Company and CBF
On September 1, 2011, the Boards
of Directors of CBF 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 CBF), of the Company with and into CBF, with CBF
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
CBF or the Company, will be converted into the right to receive
0.1354 of a share of CBF 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 CBF is the majority shareholder of the Company, CBF will
be able to determine the outcome of the shareholder vote needed to
approve the merger.
Net Interest Income
Net interest income in the first quarter of 2012 was
significantly impacted by the Bank Merger, upon which Old Capital
Bank's earning assets and interest-bearing liabilities were
deconsolidated 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 three months ended March 31, 2012 (Successor), the period of
January 29 to March 31, 2011
(Successor) and the period of January 1 to
January 28, 2011 (Predecessor) totaled ($277) thousand, $10.0
million and $4.0 million,
respectively. The Company's net interest margin increased from
3.09% in the period of January 1 to January
28, 2011 (Predecessor) to 4.23% for the period of
January 29 to March 31, 2011
(Successor), and decreased to (32.75)% for the three months ended
March 31, 2012 (Successor) primarily
due to the CBF Investment and the Bank Merger, respectively.
Average earning assets decreased from $1.54
billion in the period of January 1 to
January 28, 2011 (Predecessor) to $1.49 billion in the period of January 29 to March 31, 2011 (Successor) to
$3.4 million in the three months
ended March 31, 2012 (Successor). The
decline in average earning assets in the successor period was
primarily related to the Bank Merger, upon which Old Capital Bank's
earning assets and interest-bearing liabilities were deconsolidated
from the Company. As of March 31,
2012 (Successor), the Company's only earning asset was a
$3.4 million advance to Capital Bank,
NA.
Noninterest Income
Noninterest income for the three months ended March 31, 2012 (Successor), the period of
January 29 to March 31, 2011
(Successor) and the period of January 1 to
January 28, 2011 (Predecessor) totaled $3.1 million, $1.3
million and $832 thousand,
respectively. Noninterest income in the first quarter of 2012 was
solely related to the Company's equity income from its investment
in Capital Bank, NA.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2012 (Successor), the period from
January 29 to March 31, 2011
(Successor) and the period from January 1 to
January 28, 2011 (Predecessor) totaled $157 thousand, $12.2
million and $4.2 million,
respectively. Expenses in the first quarter of 2012 were
significantly reduced by the Bank Merger and related
deconsolidation of Old Capital Bank. Additionally, expenses in the
period from January 29 to March 31,
2011 (Successor) were impacted by a $3.6 million contract termination fee related to
the conversion and integration of the Company's operations onto a
common technology platform utilized across the CBF enterprise.
Salaries and benefits expense increased in the period from
January 29 to March 31, 2011
(Successor) from the accelerated vesting of stock options and
restricted shares at closing of the CBF Investment.
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 CBF 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
Mar. 31, 2012
|
|
Three
Months
Ended
Dec. 31, 2011
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
85
|
|
$
|
85
|
|
$
|
85
|
|
$
|
18,990
|
|
$
|
12,281
|
|
|
$
|
5,955
|
Interest
expense
|
|
|
362
|
|
|
362
|
|
|
355
|
|
|
3,551
|
|
|
2,260
|
|
|
|
1,996
|
Net
interest income (loss)
|
|
|
(277)
|
|
|
(277)
|
|
|
(270)
|
|
|
15,439
|
|
|
10,021
|
|
|
|
3,959
|
Provision
for loan losses
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,283
|
|
|
167
|
|
|
|
40
|
Net
interest income (loss) after
provision
|
|
|
(277)
|
|
|
(277)
|
|
|
(270)
|
|
|
14,156
|
|
|
9,854
|
|
|
|
3,919
|
Noninterest income
|
|
|
3,088
|
|
|
1,762
|
|
|
2,283
|
|
|
2,065
|
|
|
1,252
|
|
|
|
832
|
Noninterest expense
|
|
|
157
|
|
|
175
|
|
|
76
|
|
|
12,797
|
|
|
12,229
|
|
|
|
4,155
|
Net income
(loss) before taxes
|
|
|
2,654
|
|
|
1,310
|
|
|
1,937
|
|
|
3,424
|
|
|
(1,123)
|
|
|
|
596
|
Income tax
expense (benefit)
|
|
|
(89)
|
|
|
(168)
|
|
|
(117)
|
|
|
1,115
|
|
|
(549)
|
|
|
|
–
|
Net income
(loss)
|
|
|
2,743
|
|
|
1,478
|
|
|
2,054
|
|
|
2,309
|
|
|
(574)
|
|
|
|
596
|
Dividends
and accretion on
preferred stock
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
|
861
|
Net income
(loss) attributable to
common
shareholders
|
|
$
|
2,743
|
|
$
|
1,478
|
|
$
|
2,054
|
|
$
|
2,309
|
|
$
|
(574)
|
|
|
$
|
(265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share – basic
and diluted
|
|
$
|
0.03
|
|
$
|
0.02
|
|
$
|
0.02
|
|
$
|
0.03
|
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
End of
Period Balances
|
|
|
|
Successor Company
|
(Dollars in thousands except per share
data)
|
|
Mar. 31,
2012
|
|
Dec. 31,
2011
|
|
Sep. 30,
2011
|
|
Jun. 30,
2011
|
|
Mar. 31,
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
251,985
|
|
$
|
249,742
|
|
$
|
248,249
|
|
$
|
248,562
|
|
$
|
1,702,798
|
Total
earning assets
|
|
|
3,393
|
|
|
3,393
|
|
|
3,393
|
|
|
3,393
|
|
|
1,500,664
|
Cash and
cash equivalents
|
|
|
1,820
|
|
|
2,163
|
|
|
2,435
|
|
|
12,477
|
|
|
116,650
|
Investment
securities
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
304,902
|
Loans
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,094,558
|
Allowance
for loan losses
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
167
|
Investment
in and advance to Capital Bank, NA
|
|
|
249,584
|
|
|
247,121
|
|
|
245,506
|
|
|
235,657
|
|
|
–
|
Intangible
assets
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
53,525
|
Deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,349,661
|
Borrowings
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
93,513
|
Subordinated debentures
|
|
|
19,212
|
|
|
19,163
|
|
|
19,099
|
|
|
19,036
|
|
|
19,905
|
Shareholders' equity
|
|
|
226,985
|
|
|
224,864
|
|
|
223,532
|
|
|
229,419
|
|
|
228,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
value
|
|
$
|
2.65
|
|
$
|
2.62
|
|
$
|
2.61
|
|
$
|
2.67
|
|
$
|
2.68
|
Tangible
book value
|
|
|
2.26
|
|
|
2.23
|
|
|
2.22
|
|
|
2.25
|
|
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding
|
|
|
85,802,164
|
|
|
85,802,164
|
|
|
85,802,164
|
|
|
85,802,164
|
|
|
85,489,260
|
CAPITAL
BANK CORPORATION
|
|
Average
Balances and Yields/Rates
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
(Dollars in thousands)
|
|
Three
Months
Ended
Mar. 31, 2012
|
|
Three
Months
Ended
Dec. 31, 2011
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
251,342
|
|
$
|
244,291
|
|
$
|
248,183
|
|
$
|
1,701,071
|
|
$
|
1,692,347
|
|
|
$
|
1,592,750
|
|
Total
earning assets
|
|
|
3,393
|
|
|
3,393
|
|
|
3,393
|
|
|
1,488,645
|
|
|
1,490,146
|
|
|
|
1,542,617
|
|
Investment
securities
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
338,035
|
|
|
242,622
|
|
|
|
223,854
|
|
Loans
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,097,413
|
|
|
1,107,666
|
|
|
|
1,249,787
|
|
Deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,343,599
|
|
|
1,340,741
|
|
|
|
1,350,336
|
|
Borrowings
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
93,349
|
|
|
98,599
|
|
|
|
120,032
|
|
Subordinated debentures
|
|
|
19,191
|
|
|
19,142
|
|
|
19,078
|
|
|
19,323
|
|
|
19,563
|
|
|
|
34,323
|
|
Shareholders' equity
|
|
|
226,397
|
|
|
224,843
|
|
|
228,961
|
|
|
231,742
|
|
|
226,423
|
|
|
|
78,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields/Rates 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on
earning assets
|
|
|
10.00
|
%
|
|
9.94
|
%
|
|
9.94
|
%
|
|
5.19
|
%
|
|
5.17
|
%
|
|
|
4.61
|
%
|
Cost of
interest-bearing
liabilities
|
|
|
7.46
|
|
|
7.50
|
|
|
7.38
|
|
|
1.07
|
|
|
1.04
|
|
|
|
1.69
|
|
Net
interest spread
|
|
|
2.54
|
|
|
2.44
|
|
|
2.56
|
|
|
4.12
|
|
|
4.13
|
|
|
|
2.92
|
|
Net
interest margin
|
|
|
(32.75)
|
|
|
(32.39)
|
|
|
(31.57)
|
|
|
4.23
|
|
|
4.23
|
|
|
|
3.09
|
|
|
|
1
|
Annualized
and on a fully taxable equivalent basis.
|
CAPITAL
BANK CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
Successor Company
|
|
(Dollars in thousands)
|
|
Mar. 31,
2012
|
|
Dec. 31,
2011
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
$
|
1,820
|
|
$
|
2,163
|
|
Total cash and cash equivalents
|
|
|
1,820
|
|
|
2,163
|
|
Investment
in and advance to Capital Bank, NA
|
|
|
249,584
|
|
|
247,121
|
|
Other
assets
|
|
|
581
|
|
|
458
|
|
Total assets
|
|
$
|
251,985
|
|
$
|
249,742
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Subordinated debentures
|
|
$
|
19,212
|
|
$
|
19,163
|
|
Other
liabilities
|
|
|
5,788
|
|
|
5,715
|
|
Total liabilities
|
|
|
25,000
|
|
|
24,878
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
Common
stock, no par value; 300,000,000 shares authorized; 85,802,164 and
shares issued and outstanding
|
|
|
218,829
|
|
|
218,826
|
|
Retained
earnings (accumulated deficit)
|
|
|
8,010
|
|
|
5,267
|
|
Accumulated other comprehensive income
(loss)
|
|
|
146
|
|
|
771
|
|
Total shareholders' equity
|
|
|
226,985
|
|
|
224,864
|
|
Total liabilities and shareholders'
equity
|
|
$
|
251,985
|
|
$
|
249,742
|
|
CAPITAL
BANK CORPORATION
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(Unaudited)
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
(Dollars in thousands except per share
data)
|
|
Three
Months
Ended
Mar. 31, 2012
|
|
Jan. 29,
2011
to
Mar. 31, 2011
|
|
|
Jan. 1,
2011
to
Jan. 28, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and loan fees
|
|
$
|
–
|
|
$
|
11,056
|
|
|
$
|
5,479
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable interest income
|
|
|
–
|
|
|
990
|
|
|
|
391
|
|
Tax-exempt interest income
|
|
|
–
|
|
|
159
|
|
|
|
74
|
|
Dividends
|
|
|
–
|
|
|
29
|
|
|
|
–
|
|
Federal funds and other interest income
|
|
|
85
|
|
|
47
|
|
|
|
11
|
|
Total interest income
|
|
|
85
|
|
|
12,281
|
|
|
|
5,955
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
–
|
|
|
1,774
|
|
|
|
1,551
|
|
Borrowings and subordinated debentures
|
|
|
362
|
|
|
486
|
|
|
|
445
|
|
Total interest expense
|
|
|
362
|
|
|
2,260
|
|
|
|
1,996
|
|
Net interest income
|
|
|
(277)
|
|
|
10,021
|
|
|
|
3,959
|
|
Provision for loan losses
|
|
|
–
|
|
|
167
|
|
|
|
40
|
|
Net interest income (loss) after provision for loan
losses
|
|
|
(277)
|
|
|
9,854
|
|
|
|
3,919
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
Equity income from investment in Capital Bank,
NA
|
|
|
3,088
|
|
|
–
|
|
|
|
–
|
|
Service charges and other fees
|
|
|
–
|
|
|
548
|
|
|
|
291
|
|
Bank card services
|
|
|
–
|
|
|
300
|
|
|
|
174
|
|
Mortgage origination and other loan fees
|
|
|
–
|
|
|
263
|
|
|
|
210
|
|
Brokerage fees
|
|
|
–
|
|
|
96
|
|
|
|
78
|
|
Bank-owned life insurance
|
|
|
–
|
|
|
20
|
|
|
|
10
|
|
Other
|
|
|
–
|
|
|
25
|
|
|
|
69
|
|
Total noninterest income
|
|
|
3,088
|
|
|
1,252
|
|
|
|
832
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
–
|
|
|
3,957
|
|
|
|
1,977
|
|
Occupancy
|
|
|
–
|
|
|
1,140
|
|
|
|
548
|
|
Furniture and equipment
|
|
|
–
|
|
|
544
|
|
|
|
275
|
|
Data processing and telecommunications
|
|
|
–
|
|
|
276
|
|
|
|
180
|
|
Advertising and public relations
|
|
|
–
|
|
|
181
|
|
|
|
131
|
|
Office expenses
|
|
|
–
|
|
|
229
|
|
|
|
93
|
|
Professional fees
|
|
|
–
|
|
|
335
|
|
|
|
190
|
|
Business development and travel
|
|
|
–
|
|
|
246
|
|
|
|
87
|
|
Amortization of other intangible assets
|
|
|
–
|
|
|
191
|
|
|
|
62
|
|
ORE losses and miscellaneous loan costs
|
|
|
–
|
|
|
523
|
|
|
|
176
|
|
Directors' fees
|
|
|
–
|
|
|
40
|
|
|
|
68
|
|
FDIC deposit insurance
|
|
|
–
|
|
|
563
|
|
|
|
266
|
|
Contract termination fees
|
|
|
–
|
|
|
3,581
|
|
|
|
–
|
|
Other
|
|
|
157
|
|
|
423
|
|
|
|
102
|
|
Total noninterest expense
|
|
|
157
|
|
|
12,229
|
|
|
|
4,155
|
|
Net income (loss) before taxes
|
|
|
2,654
|
|
|
(1,123)
|
|
|
|
596
|
|
Income tax
expense (benefit)
|
|
|
(89)
|
|
|
(549)
|
|
|
|
–
|
|
Net income (loss)
|
|
|
2,743
|
|
|
(574)
|
|
|
|
596
|
|
Dividends
and accretion on preferred stock
|
|
|
–
|
|
|
–
|
|
|
|
861
|
|
Net income (loss) attributable to common
shareholders
|
|
$
|
2,743
|
|
$
|
(574)
|
|
|
$
|
(265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per common share – basic
|
|
$
|
0.03
|
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
Earnings
(loss) per common share – diluted
|
|
$
|
0.03
|
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
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
Mar. 31, 2012
|
|
Period
of
Jan. 29 to Mar. 31, 2011
|
|
|
Period
of
Jan. 1 to Jan. 28, 2011
|
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
|
Average
Balance
|
|
Amount
Earned
|
|
Average
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
2
|
|
$
|
–
|
|
$
|
–
|
|
|
–
|
%
|
$
|
1,108,997
|
|
$
|
11,155
|
|
|
6.22
|
%
|
|
$
|
1,253,296
|
|
$
|
5,530
|
|
|
5.20
|
%
|
Investment
securities 3
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
242,840
|
|
|
1,254
|
|
|
3.10
|
|
|
|
225,971
|
|
|
504
|
|
|
2.68
|
|
Interest-bearing deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
138,309
|
|
|
47
|
|
|
0.21
|
|
|
|
63,350
|
|
|
11
|
|
|
0.20
|
|
Advance to
Capital Bank, NA
|
|
|
3,393
|
|
|
85
|
|
|
10.00
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
|
–
|
|
|
–
|
|
|
–
|
|
Total
interest-earning assets
|
|
|
3,393
|
|
$
|
85
|
|
|
10.00
|
%
|
|
1,490,146
|
|
$
|
12,456
|
|
|
5.17
|
%
|
|
|
1,542,617
|
|
$
|
6,045
|
|
|
4.61
|
%
|
Cash and
due from banks
|
|
|
1,950
|
|
|
|
|
|
|
|
|
16,373
|
|
|
|
|
|
|
|
|
|
16,112
|
|
|
|
|
|
|
|
Other
assets
|
|
|
245,999
|
|
|
|
|
|
|
|
|
185,828
|
|
|
|
|
|
|
|
|
|
34,021
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
251,342
|
|
|
|
|
|
|
|
$
|
1,692,347
|
|
|
|
|
|
|
|
|
$
|
1,592,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and
money market accounts
|
|
$
|
–
|
|
$
|
–
|
|
|
–
|
%
|
$
|
344,189
|
|
$
|
418
|
|
|
0.75
|
%
|
|
$
|
334,668
|
|
$
|
211
|
|
|
0.74
|
%
|
Savings
accounts
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
31,521
|
|
|
6
|
|
|
0.12
|
|
|
|
30,862
|
|
|
3
|
|
|
0.11
|
|
Time
deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
851,424
|
|
|
1,350
|
|
|
0.98
|
|
|
|
870,146
|
|
|
1,337
|
|
|
1.81
|
|
Total
interest-bearing deposits
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,227,134
|
|
|
1,774
|
|
|
0.89
|
|
|
|
1,235,676
|
|
|
1,551
|
|
|
1.48
|
|
Borrowings
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
98,599
|
|
|
254
|
|
|
1.59
|
|
|
|
120,032
|
|
|
343
|
|
|
3.36
|
|
Subordinated debentures
|
|
|
19,191
|
|
|
362
|
|
|
7.46
|
|
|
19,563
|
|
|
232
|
|
|
7.34
|
|
|
|
34,323
|
|
|
102
|
|
|
3.50
|
|
Total
interest-bearing liabilities
|
|
|
19,191
|
|
$
|
362
|
|
|
7.46
|
%
|
|
1,345,296
|
|
$
|
2,260
|
|
|
1.04
|
%
|
|
|
1,390,031
|
|
$
|
1,996
|
|
|
1.69
|
%
|
Noninterest-bearing deposits
|
|
|
–
|
|
|
|
|
|
|
|
|
113,607
|
|
|
|
|
|
|
|
|
|
114,660
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
5,754
|
|
|
|
|
|
|
|
|
7,021
|
|
|
|
|
|
|
|
|
|
9,635
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
24,945
|
|
|
|
|
|
|
|
|
1,465,924
|
|
|
|
|
|
|
|
|
|
1,514,326
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
226,397
|
|
|
|
|
|
|
|
|
226,423
|
|
|
|
|
|
|
|
|
|
78,424
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
251,342
|
|
|
|
|
|
|
|
$
|
1,692,347
|
|
|
|
|
|
|
|
|
$
|
1,592,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest spread 4
|
|
|
|
|
|
|
|
|
2.54
|
%
|
|
|
|
|
|
|
|
4.13
|
%
|
|
|
|
|
|
|
|
|
2.92
|
%
|
Tax
equivalent adjustment
|
|
|
|
|
$
|
–
|
|
|
|
|
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
$
|
90
|
|
|
|
|
Net
interest income and net interest margin 5
|
|
|
|
|
$
|
(277)
|
|
|
(32.75)
|
%
|
|
|
|
$
|
10,196
|
|
|
4.23
|
%
|
|
|
|
|
$
|
4,049
|
|
|
3.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
SOURCE Capital Bank Corporation