Capital Bank Corporation Announces Financial Results for the Fourth Quarter and Full Year of 2011

09 Apr, 2012, 22:06 ET from Capital Bank Corporation

RALEIGH, N.C., April 9, 2012 /PRNewswire/ -- Capital Bank Corporation (the "Company") (Nasdaq: CBKN), a majority-owned subsidiary of Capital Bank Financial Corp. ("CBF"; formerly North American Financial Holdings, Inc.), today reported financial results for the fourth quarter and full year of 2011. Operating and financial highlights include the following:

  • Net income totaled $1.5 million, or $0.02 per share, in the fourth quarter of 2011 and totaled $5.3 million, or $0.06 per share, in the successor period from January 29 to December 31, 2011; and
  • Following the merger of GreenBank, the wholly-owned subsidiary of Green Bankshares, Inc. ("Green Bankshares"), into Capital Bank, NA, 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.

"Thanks to the hard work of team mates across the company, I am very proud to be able to say that today, Capital Bank, NA is a single bank, with 143 branches operating under one brand, offering a common set of products and processing on one IT system. That is a huge accomplishment for us in such a short period of time," stated Gene Taylor, Chairman and Chief Executive Officer of CBF and Capital Bank Corporation.

"We are pleased with continued success in generating new loans and core deposits. These activities are helping customers achieve their goals and will lead to higher profitability for the company," commented Chris Marshall, Chief Financial Officer of CBF and Capital Bank Corporation.

Bank Mergers

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 December 31, 2011, 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 $5.1 billion and shareholders' equity of $939.8 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 December 31, 2011, the Company's investment in Capital Bank, NA totaled $243.7 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 December 31, 2011. In the quarter ended December 31, 2011, the Company increased the equity investment balance by $1.8 million based on its equity in Capital Bank, NA's net income and decreased the equity investment balance by $148 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:

(Dollars in thousands)

Three Months Ended Dec. 31, 2011

Jun. 30, 2011 to Dec. 31, 2011

Interest income

$

74,163

$

137,508

Interest expense

9,266

17,810

Net interest income

64,897

119,698

Provision for loan losses

16,790

28,636

Noninterest income

16,105

28,710

Noninterest expense

53,271

97,754

Net income

$

6,797

$

13,984

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 fourth quarter of 2011 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 quarter ended December 31, 2011 (Successor) and the quarter ended December 31, 2010 (Predecessor) totaled ($277) thousand and $12.3 million, respectively. Net interest margin decreased from 3.16% in the fourth quarter of 2010 (Predecessor) to (32.39)% in the fourth quarter of 2011 (Successor) primarily due to the Bank Merger.

Further, net interest income for the period of January 29 to December 31, 2011 (Successor), the period of January 1 to January 28, 2011 (Predecessor), and the year ended December 31, 2010 (Predecessor) totaled $24.9 million, $4.0 million and $51.0 million, respectively. Net interest margin increased from 3.27% in the year ended December 31, 2010 (Predecessor) to 4.13% for the period of January 29 to December 31, 2011 (Successor) primarily due to a decline in funding costs as the average rate on total interest-bearing liabilities fell from 1.88% to 1.17% over that period. Average earning assets decreased from $1.60 billion in the year ended December 31, 2010 (Predecessor) to $1.54 billion in the period of January 1 to January 28, 2011 (Predecessor) to $670.7 million in the period of January 29 to December 31, 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 December 31, 2011 (Successor). Provision for loan losses for the quarter ended December 31, 2010 (Predecessor) totaled $20.0 million. In addition, provision for loan losses for the period of January 29 to December 31, 2011 (Successor), the period of January 1 to January 28, 2011 (Predecessor), and the year ended December 31, 2010 (Predecessor) totaled $1.5 million, $40 thousand and $58.5 million, respectively. The loan loss provision in the successor period reflects $752 thousand of estimated losses inherent in loans originated subsequent to the CBF investment date, $359 thousand of impairment related to probable decreases in cash flows expected to be collected on certain purchase credit-impaired loan pools, and $339 thousand of losses on acquired non-PCI loans.

Noninterest Income

Noninterest income for the quarter ended December 31, 2011 (Successor) and the quarter ended December 31, 2010 (Predecessor) totaled $1.8 million and $8.0 million, respectively. Noninterest income in the fourth 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 December 31, 2011 (Successor), the period of January 1 to January 28, 2011 (Predecessor), and the year ended December 31, 2010 (Predecessor) totaled $7.4 million, $832 thousand and $15.5 million, respectively. Noninterest income in the successor period was significantly impacted by the Company's $4.0 million of equity income from its investment in Capital Bank, NA. Additionally, noninterest income in the year ended December 31, 2010 (Predecessor) benefited from $5.9 million of gains recorded on the sale of investment securities while no gains or losses were recognized in the period from January 29 to December 31, 2011 (Successor) or the period from January 1 to January 28, 2011 (Predecessor).

Noninterest Expense

Noninterest expense for the quarter ended December 31, 2011 (Successor) and the quarter ended December 31, 2010 (Predecessor) totaled $175 thousand and $15.1 million, respectively. Expenses in the successor period were significantly reduced by the Bank Merger and related deconsolidation of Old Capital Bank.

Further, noninterest expense for the period from January 29 to December 31, 2011 (Successor), the period from January 1 to January 28, 2011 (Predecessor) and the year ended December 31, 2010 (Predecessor) totaled $25.3 million, $4.2 million and $54.3 million, respectively. Additionally, expenses in the year ended December 31, 2011 were significantly reduced by the Bank Merger and related deconsolidation of Old Capital Bank. Expenses in the period from January 29 to December 31, 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 CBF enterprise. This system conversion is intended to create operating efficiencies and better position the Company for future growth.

Measurement Period Adjustments

Financial results for the year ended 2011 were significantly impacted by the controlling investment in the Company by CBF. The Company elected to apply push-down accounting. Accordingly, the Company's assets and liabilities were adjusted to estimated fair value at the CBF investment date. During the fourth quarter of 2011, the Company was still in the process of completing its fair value analysis (not to exceed one year from the acquisition date) of assets and liabilities, and the Company made adjustments which are retrospectively reflected herein.

The measurement period adjustments were primarily due to a $30.7 million decrease in the acquisition date estimated fair values of certain acquired loans based on further analysis of estimated credit losses and other relevant facts and circumstances existing as of the acquisition date. This adjustment resulted in the Company retrospectively increasing net income by $1.0 million, net of tax, for the second quarter of 2011 (Successor) and retrospectively increasing the equity income from the investment in Capital Bank, NA by $114,000 in the third quarter of 2011 (Successor).

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 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

Three Months Ended Dec. 31, 2010

Interest income

$

              85

$

                85

$

           18,990

$

         12,281

$

                      5,955

$

                           18,327

Interest expense

362

355

3,551

2,260

1,996

6,040

Net interest income (loss)

(277)

(270)

15,439

10,021

3,959

12,287

Provision for loan losses

1,283

167

40

20,011

Net interest income (loss) after    provision

(277)

(270)

14,156

9,854

3,919

(7,724)

Noninterest income

1,762

2,283

2,065

1,252

832

8,004

Noninterest expense

175

76

12,797

12,229

4,155

15,129

Net income (loss) before taxes

1,310

1,937

3,424

(1,123)

596

(14,849)

Income tax expense (benefit)

(168)

(117)

1,115

(549)

18,634

Net income (loss)

1,478

2,054

2,309

(574)

596

(33,483)

Dividends and accretion on    preferred stock

861

589

Net income (loss) attributable to    common shareholders

$

1,478

$

2,054

$

2,309

$

(574)

$

(265)

$

(34,072)

Earnings (loss) per share – basic    and diluted

$

0.02

$

0.02

$

0.03

$

(0.01)

$

(0.02)

$

(2.59)

End of Period Balances

Successor Company

Predecessor Company

(Dollars in thousands except per share data)

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Total assets

$

249,742

$

248,249

$

248,562

$

1,702,798

$

1,585,547

Total earning assets

3,393

3,393

3,393

1,500,664

1,537,863

Cash and cash equivalents

2,163

2,435

12,477

116,650

66,745

Investment securities

304,902

223,292

Loans

1,094,558

1,254,479

Allowance for loan losses

167

36,061

Investment in and advance to Capital Bank, NA

247,121

245,506

235,657

Intangible assets

53,525

1,774

Deposits

1,349,661

1,343,286

Borrowings

93,513

121,000

Subordinated debentures

19,163

19,099

19,036

19,905

34,323

Shareholders' equity

224,864

223,532

229,419

228,760

76,688

Per Share Data

Book value

$

2.62

$

2.61

$

2.67

$

2.68

$

2.75

Tangible book value

2.23

2.22

2.25

2.07

2.67

Common shares outstanding

85,802,164

85,802,164

85,802,164

85,489,260

12,877,846

CAPITAL BANK CORPORATION

Average Balances and Yields/Rates

Successor Company

Predecessor Company

(Dollars in thousands)

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

Three Months Ended Dec. 31, 2010

Average Balances

Total assets

$

244,291

$

248,183

$

1,701,071

$

1,692,347

$

1,592,750

$

1,648,467

Total earning assets

3,393

3,393

1,488,645

1,490,146

1,542,617

1,577,651

Investment securities

338,035

242,622

223,854

198,524

Loans

1,097,413

1,107,666

1,249,787

1,295,748

Deposits

1,343,599

1,340,741

1,350,336

1,366,905

Borrowings

93,349

98,599

120,032

126,130

Subordinated debentures

19,142

19,078

19,323

19,563

34,323

34,323

Shareholders' equity

224,843

228,961

231,742

226,423

78,724

110,788

Yields/Rates 1

Yield on earning assets

9.94%

9.94%

5.19%

5.17%

4.61%

4.68%

Cost of interest-bearing liabilities

7.50

7.38

1.07

1.04

1.69

1.71

Net interest spread

2.44

2.56

4.12

4.13

2.92

2.97

Net interest margin

(32.39)

(31.57)

4.23

4.23

3.09

3.16

1

Annualized and on a fully taxable equivalent basis.

CAPITAL BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

Successor Company

Predecessor Company

(Dollars in thousands)

Dec. 31, 2011

Dec. 31, 2010

Assets

Cash and cash equivalents:

Cash and due from banks

$

2,163

$

13,646

Interest-bearing deposits with banks

53,099

Total cash and cash equivalents

2,163

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

247,121

Other real estate

18,334

Premises and equipment, net

25,034

Other intangible assets, net

1,774

Other assets

458

24,957

Total assets

$

249,742

$

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

19,163

34,323

Other liabilities

5,715

10,250

Total liabilities

24,878

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

218,826

145,594

Retained earnings (accumulated deficit)

5,267

(108,027)

Accumulated other comprehensive income (loss)

771

(1,297)

Total shareholders' equity

224,864

76,688

Total liabilities and shareholders' equity

$

249,742

$

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 Dec. 31, 2011

Three Months Ended Dec. 31, 2010

Jan. 29, 2011 to Dec. 31, 2011

Jan. 1, 2011 to Jan. 28, 2011

Year Ended Dec. 31, 2010

Interest income:

Loans and loan fees

$

               –

$

16,394

$

      27,521

$

        5,479

$

      68,474

Investment securities:

Taxable interest income

1,632

3,206

391

7,483

Tax-exempt interest income

227

398

74

1,596

Dividends

22

59

80

Federal funds and other interest income

85

52

257

11

89

Total interest income

85

18,327

31,441

5,955

77,722

Interest expense:

Deposits

4,644

4,560

1,551

21,082

Borrowings and subordinated debentures

362

1,396

1,968

445

5,677

Total interest expense

362

6,040

6,528

1,996

26,759

Net interest income (loss)

(277)

12,287

24,913

3,959

50,963

Provision for loan losses

20,011

1,450

40

58,545

Net interest income (loss) after    provision for loan losses

(277)

(7,724)

23,463

3,919

(7,582)

Noninterest income:

Service charges and other fees

843

1,355

291

3,311

Bank card services

541

847

174

2,020

Mortgage origination and other loan fees

753

518

210

1,861

Brokerage fees

220

308

78

963

Bank-owned life insurance

67

134

10

699

Equity income from investment in Capital    Bank, NA

1,762

4,045

Net gain on sale of investment securities

5,344

5,855

Other

236

155

69

840

Total noninterest income

1,762

8,004

7,362

832

15,549

Noninterest expense:

Salaries and employee benefits

6,038

9,525

1,977

22,675

Occupancy

1,488

2,970

548

5,906

Furniture and equipment

871

1,401

275

3,183

Data processing and telecommunications

562

911

180

2,092

Advertising and public relations

423

325

131

1,887

Office expenses

320

498

93

1,260

Professional fees

729

543

190

2,514

Business development and travel

413

550

87

1,350

Amortization of other intangible assets

232

478

62

937

ORE losses and miscellaneous loan costs

1,148

1,608

176

5,006

Directors' fees

233

93

68

1,061

FDIC deposit insurance

1,818

1,076

266

3,846

Contract termination fees

3,955

Other

175

854

1,344

102

2,592

Total noninterest expense

175

15,129

25,277

4,155

54,309

Net income (loss) before taxes

1,310

(14,849)

5,548

596

(46,342)

Income tax expense (benefit)

(168)

18,634

281

15,124

Net income (loss)

1,478

(33,483)

5,267

596

(61,466)

Dividends and accretion on preferred stock

589

861

2,355

Net income (loss) attributable to common shareholders

$

1,478

$

(34,072)

$

5,267

$

(265)

$

(63,821)

Earnings (loss) per common share – basic

$

0.02

$

(2.59)

$

0.06

$

(0.02)

$

(4.98)

Earnings (loss) per common share – diluted

$

0.02

$

(2.59)

$

0.06

$

(0.02)

$

(4.98)

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 Dec. 31, 2011

Three Months Ended Sep. 30, 2011

Three Months Ended Dec. 31, 2010

Average Balance

Amount Earned

Average Rate

Average Balance

Amount Earned

Average Rate

Average Balance

Amount Earned

Average Rate

Assets

Loans 2

$

$

–%

$

$

–%

$

1,303,147

$

16,545

5.04%

Investment securities 3

191,877

1,999

4.17

Interest-bearing deposits

82,627

52

0.25

Advance to Capital Bank, NA

3,393

85

9.94

3,393

85

9.94

Total interest-earning assets

3,393

$

85

9.94%

3,393

$

85

9.94%

1,577,651

$

18,596

4.68%

Cash and due from banks

2,318

9,268

18,044

Other assets

238,580

235,522

52,772

Total assets

$

244,291

$

248,183

$

1,648,467

Liabilities and Equity

NOW and money market accounts

$

$

–%

$

$

–%

$

319,250

$

626

0.78%

Savings accounts

30,913

10

0.13

Time deposits

889,153

4,008

1.79

Total interest-bearing deposits

1,239,316

4,644

1.49

Borrowings

126,130

1,095

3.44

Subordinated debentures

19,142

362

7.50

19,078

355

7.38

34,323

301

3.48

Total interest-bearing liabilities

19,142

$

362

7.50%

19,078

$

355

7.38%

1,399,769

$

6,040

1.71%

Noninterest-bearing deposits

127,589

Other liabilities

306

144

10,321

Total liabilities

19,448

19,222

1,537,679

Shareholders' equity

224,843

228,961

110,788

Total liabilities and shareholders' equity

$

244,291

$

248,183

$

1,648,467

Net interest spread 4

2.44

%

2.56%

2.97%

Tax equivalent adjustment

$

$

$

269

Net interest income and net interest margin 5

$

(277)

(32.39)%

$

(270)

(31.57)%

$

12,556

3.16%

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 Dec. 31, 2011

Period of Jan. 1 to Jan. 28, 2011

Year Ended Dec. 31, 2010

Average Balance

Amount Earned

Average Rate

Average Balance

Amount Earned

Average Rate

Average Balance

Amount Earned

Average Rate

Assets

Loans 2

$

495,129

$

27,734

6.12%

$

1,253,296

$

5,530

5.20%

$

1,353,191

$

69,084

5.11%

Investment securities 3

133,960

3,893

3.17

225,971

504

2.68

213,402

9,986

4.68

Interest-bearing deposits

39,730

87

0.24

63,350

11

0.20

38,003

89

0.23

Advance to Capital Bank, NA

1,869

170

9.94

Total interest-earning assets

670,688

$

31,884

5.20%

1,542,617

$

6,045

4.61%

1,604,596

$

79,159

4.93%

Cash and due from banks

10,603

16,112

18,149

Other assets

214,626

34,021

68,910

Total assets

$

895,917

$

1,592,750

$

1,691,655

Liabilities and Equity

NOW and money market accounts

$

154,880

$

1,084

0.76%

$

334,668

$

211

0.74%

$

327,811

$

2,794

0.85%

Savings accounts

14,352

16

0.12

30,862

3

0.11

30,555

41

0.13

Time deposits

380,278

3,460

0.99

870,146

1,337

1.81

878,068

18,247

2.08

Total interest-bearing deposits

549,510

4,560

0.91

1,235,676

1,551

1.48

1,236,434

21,082

1.71

Borrowings

42,851

664

1.69

120,032

343

3.36

150,207

4,541

3.02

Subordinated debentures

19,248

1,304

7.40

34,323

102

3.50

33,550

1,131

3.37

Repurchase agreements

1,564

5

0.32

Total interest-bearing liabilities

611,609

$

6,528

1.17%

1,390,031

$

1,996

1.69%

1,421,755

$

26,759

1.88%

Noninterest-bearing deposits

53,397

114,660

130,944

Other liabilities

4,922

9,635

10,519

Total liabilities

669,928

1,514,326

1,563,218

Shareholders' equity

225,989

78,424

128,437

Total liabilities and shareholders' equity

$

895,917

$

1,592,750

$

1,691,655

Net interest spread 4

4.03%

2.92%

3.05%

Tax equivalent adjustment

$

443

$

90

$

1,437

Net interest income and net interest margin 5

$

25,356

4.13%

$

4,049

3.09%

$

52,400

3.27%

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



RELATED LINKS

http://www.capitalbank-nc.com