CHARLOTTE, N.C., Jan. 28, 2016 (GLOBE NEWSWIRE) -- Capital Bank Financial Corp. (Nasdaq:CBF) (the “Company”) today reported fourth quarter net income of $15.0 million, or $0.34 per diluted share. Core adjustments for the fourth quarter included a pre-tax charge of $4.2 million related to the previously announced contract termination of debit card processing, initially estimated at approximately $5.0 million, and $0.7 million of non-tax deductible merger related expenses. Core net income for the fourth quarter was $18.3 million, or $0.41 per diluted share. Core net income rose 31% year-over-year and core net income per diluted share rose 41%. ROA decreased to 0.82% and Core ROA increased to 1.00%.
- Loan portfolio grew sequentially at a 17% annualized rate and was up 13% year-over-year;
- Total deposits were up 12% year-over-year;
- Terminated legacy debit card processing contract and executed long-term agreement with MasterCard;
- Achieved GAAP and Core ROA of 0.82% and 1.00%, respectively;
- Achieved efficiency and Core efficiency ratios of 65.7% and 58.9%, respectively; and
- Signed a definitive agreement to acquire CommunityOne Bancorp.
Gene Taylor, Chairman and Chief Executive Officer of Capital Bank Financial Corp., commented, “We enjoyed excellent results in Q4, and throughout 2015, thanks to the hard work of our outstanding teammates and the trust and confidence of our customers.”
Chris Marshall, Chief Financial Officer of Capital Bank Financial Corp., added, “We feel good about hitting our financial targets for the quarter and the year, but we feel even better about how we are positioned for future growth. Our strong Balance Sheet, excellent credit and expense discipline, and the rollout of our new payments platform will all contribute to making 2016 a record year for Capital Bank.”
Loan Portfolio and Composition
During the fourth quarter, the loan portfolio increased by $227.8 million to $5.6 billion, a 17% annualized growth rate and up 13% year-over-year. New loans of $486.9 million included $29.0 million in portfolio purchases of high-quality residential mortgages and were offset by resolutions totaling $33.8 million and principal repayments of $225.3 million.
The relative composition of the Company’s loan portfolio at the end of the fourth quarter of 2014 and third and fourth quarters of 2015 was as follows:
| Dec 31, 2015 | Sep 30, 2015 | Dec 31, 2014 | |||||||
| Commercial real estate | 22 | % | 22 | % | 23 | % | |||
| C&I | 43 | % | 42 | % | 42 | % | |||
| Consumer | 32 | % | 33 | % | 32 | % | |||
| Other | 3 | % | 3 | % | 3 | % | |||
| Total | 100 | % | 100 | % | 100 | % | |||
Deposits Composition and Cost of Funds
During the fourth quarter, total deposits increased by $294.6 million to $5.9 billion, or up 12% year-over-year. The sequential increase was mainly a result of the Company’s continued focus on growing low-cost core deposits, which were up $248.0 million, and an increase in low-cost brokered money market accounts of $72.0 million that were used to replace maturing borrowings; partially offset by some contraction in time deposit balances. Sequentially and year-over-year, the cost of core deposits remained flat at 0.15%. Core deposits include all checking, savings and money market accounts, excluding brokered, and now represent 68% of total deposits. Sequentially and year-over-year, the cost of total deposits increased by one basis point and six basis points, respectively, to 0.40%. The contractual cost of deposits, which excludes purchase accounting, was flat sequentially and increased one basis point year-over-year to 0.40%.
Net Interest Income and Net Interest Margin
Net interest income increased $0.4 million to $62.1 million from $61.6 million for the third quarter of 2015 and increased $0.7 million year-over-year from $61.4 million. The net interest margin for the fourth quarter of 2015 was 3.70%, a decline of 12 basis points sequentially and 35 basis points year-over-year. As expected, the decline in net interest margin continues to reflect higher earning asset balances, offset by the lower earning asset yields. The implementation of interest rate swaps during the year resulted in $0.8 million in additional interest income during the fourth quarter and had a five basis point impact on the net interest margin. New and acquired non-impaired loans represent $4.6 billion or 81% of the Company’s total loan portfolio, up from 79% and 73% at September 30, 2015 and December 31, 2014, respectively. New loans outstanding represent $4.3 billion with an average yield of 3.56%, compared to $1.1 billion of acquired impaired loans outstanding with a weighted average yield of 8.43%.
Non-Interest Income
Non-interest income declined $0.8 million to $10.6 million from $11.4 million for the third quarter of 2015 and was flat compared to the fourth quarter of 2014. The sequential decrease was mainly driven by a decline in service charge fee income and lower investment advisory fee income. FDIC indemnification amortization expense included $1 million attributable to recoveries on legacy loans that were previously covered by loss-sharing contracts.
Provision for Loan Losses and Credit Quality
The provision of $1.1 million recorded for the fourth quarter of 2015 included a $2.3 million provision for new and acquired non-impaired loans, offset by $1.2 million due to changes in cash flow estimates for certain acquired impaired loan pools. The changes in cash flow estimates mainly resulted from improvements in the Company’s expectations of future cash flows resulting from higher than anticipated payoffs and resolutions. Net charge-offs for the fourth quarter of 2015 were $2.3 million.
At December 31, 2015, the allowance for loan losses was $45.0 million, of which $24.5 million related to acquired impaired loans and $20.5 million related to new and acquired non-impaired loans. The allowance for loan losses represents 0.80% of the Company’s total $5.6 billion loan portfolio.
During the fourth quarter, non-performing loans declined sequentially by $13.5 million, or 17%, to $68.1 million. Nonaccrual loans declined sequentially to $8.9 million, or to 0.21% of total non-purchased credit impaired loans, from 0.24%. Acquired impaired loans greater than 90 days past due and still accruing declined sequentially by $2.0 million, or 12%, to $14.5 million.
Non-Interest Expense
Non-interest expense declined $0.6 million to $47.8 million from $48.3 million for the third quarter of 2015 and declined $3.2 million from $50.9 million for the fourth quarter of 2014. The sequential decline was mainly due to a reduction in employee compensation expense, lower legacy credit expenses reflecting the continued resolution of special assets, and lower professional fees. Partially offsetting the decline were $4.2 million in restructuring charges related to the termination of a legacy debit card processing contract and execution of a long-term agreement with MasterCard as part of the Company’s cost savings initiatives, and $0.7 million of merger related costs primarily associated with legal and consulting services. The year-over-year decline was mainly due to a decline in employee compensation and lower legacy credit expenses as discussed above, a reduction in stock-based compensation expense associated with original founder awards, and the reduction in occupancy costs as a result of the Company’s continued focus on consolidating facilities.
Income Tax Expense
Income tax expense was $8.8 million for the fourth quarter of 2015, an effective income tax rate of 37.0%, as compared to income tax expense of $8.6 million for the third quarter of 2015, an effective income tax rate of 35.9%. Income tax expense was $7.8 million for the fourth quarter of 2014, an effective income tax rate of 36.1%. The sequential and year-over-year increase in the effective tax rate is mainly due to lower tax-exempt interest income during the fourth quarter of 2015.
Financial Position
Total assets increased by $188.3 million to $7.4 billion as of December 31, 2015, from $7.3 billion as of September 30, 2015. During the quarter, the Company’s loan portfolio increased by $227.8 million to $5.6 billion, a 17% annualized rate. Deposits increased by $294.6 million to $5.9 billion and FHLB borrowings decreased by $60.0 million. Tangible book value per share was $19.53 as of December 31, 2015, a decrease of $0.22 and an increase of $0.25 over September 30, 2015 and December 31, 2014, respectively. During the fourth quarter, the Company repurchased 1.2 million shares of common stock for $36.4 million at an average price of $31.47 per share.
The Company’s bank subsidiary, Capital Bank Corporation, has preliminary Tier 1 Leverage, Tier 1 Common, Tier 1 Risk-Based and Total Risk-Based capital ratios of 11.1%, 12.9%, 12.9% and 13.7%, respectively, as of December 31, 2015, under currently applicable regulations.
The Company declared a cash dividend of $0.10 per share, payable on February 22, 2016, to shareholders of record as of February 8, 2016.
The Company has $5.8 million remaining under the current stock repurchase authorization and the Board of Directors has authorized a new $100 million repurchase program.
Conference Call
The Company will host a conference call today at 2:00 p.m. Eastern Time. The number to call for this interactive teleconference is (719) 325-2354, and the confirmation pass code is 3809442. Please dial in 10 minutes prior to the beginning of the call. A telephonic replay of the conference call will be available through February 5, 2016, by dialing (719) 457-0820 and entering pass code 3809442. The live broadcast of the conference call will be available online at the Company’s web site at www.capitalbank‑us.com, by following the link to Investor Relations. An on-line replay of the call will be available at the same site for 90 days.
Forward-Looking Statements
Information in this press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors more fully described under the caption “Risk Factors” in the annual report on Form 10-K and other periodic reports filed by us with the Securities and Exchange Commission. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward looking statements including, but not limited to: (1) changes in general economic and financial market conditions; (2) changes in the regulatory environment; (3) economic conditions generally and in the financial services industry; (4) changes in the economy affecting real estate values; (5) our ability to achieve loan and deposit growth; (6) the completion of future acquisitions or business combinations and our ability to integrate any acquired businesses into our business model; (7) projected population and income growth in our targeted market areas; (8) competitive pressures in our markets and industry; (9) our ability to attract and retain key personnel; (10) changes in accounting policies or judgments and (11) volatility and direction of market interest rates and a weakening of the economy which could materially impact credit quality trends and the ability to generate loans. All forward-looking statements are necessarily only estimates of future results, and actual results may differ materially from expectations. You are, therefore, cautioned not to place undue reliance on such statements, which should be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
Core net income, core efficiency ratio, core return-on-assets (“core ROA”), tangible book value and tangible book value per share are each non-GAAP measures used in this report. A reconciliation to the most directly comparable GAAP financial measures – net income in the case of core net income and core ROA, total non-interest income and total non-interest expense in the case of core efficiency ratio, and total shareholders’ equity in the case of tangible book value and tangible book value per share – appears in tabular form at the end of this release. The Company believes core net income, the core efficiency ratio and core ROA are useful for both investors and management to understand the effects of certain non-interest items and provide an alternative view of the Company’s performance over time and in comparison to the Company’s competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value and tangible book value per share are useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders’ equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About Capital Bank Financial Corp.
Capital Bank Financial Corp. is a bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank Corporation, a State of North Carolina chartered financial institution with $7.4 billion in total assets as of December 31, 2015, and 153 full-service banking offices throughout Florida, North and South Carolina, Tennessee and Virginia. To learn more about Capital Bank Financial Corporation, please visit www.capitalbank-us.com.
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (Dollars and shares in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||||||||||||
| Interest and dividend income | $ | 69,553 | $ | 68,718 | $ | 67,311 | $ | 66,046 | $ | 67,750 | ||||||||||
| Interest expense | 7,475 | 7,081 | 6,626 | 6,317 | 6,399 | |||||||||||||||
| Net Interest Income | 62,078 | 61,637 | 60,685 | 59,729 | 61,351 | |||||||||||||||
| Provision (reversal) for loan and lease losses | 1,089 | 799 | 1,299 | (841 | ) | (637 | ) | |||||||||||||
| Net interest income after provision (reversal) for loan and lease losses | 60,989 | 60,838 | 59,386 | 60,570 | 61,988 | |||||||||||||||
| Non-Interest Income | ||||||||||||||||||||
| Service charges on deposit accounts | 4,911 | 5,472 | 5,189 | 4,705 | 5,390 | |||||||||||||||
| Debit card income | 3,029 | 3,113 | 3,176 | 2,964 | 3,013 | |||||||||||||||
| Fees on mortgage loans originated and sold | 875 | 990 | 1,278 | 1,147 | 1,053 | |||||||||||||||
| Investment advisory and trust fees | 597 | 860 | 1,125 | 1,006 | 1,170 | |||||||||||||||
| FDIC indemnification asset expense | (1,526 | ) | (1,418 | ) | (2,499 | ) | (2,439 | ) | (3,421 | ) | ||||||||||
| Investment securities gains (losses), net | 54 | (43 | ) | 231 | 90 | 513 | ||||||||||||||
| Other-than-temporary impairment loss on investments: | ||||||||||||||||||||
| Gross impairment loss | — | — | (288 | ) | — | — | ||||||||||||||
| Other income | 2,657 | 2,444 | 2,151 | 2,447 | 2,876 | |||||||||||||||
| Total non-interest income | 10,597 | 11,418 | 10,363 | 9,920 | 10,594 | |||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||
| Salaries and employee benefits | 20,219 | 22,620 | 21,881 | 23,881 | 23,871 | |||||||||||||||
| Stock-based compensation expense | — | 309 | 108 | 284 | 451 | |||||||||||||||
| Net occupancy and equipment expense | 7,385 | 7,621 | 7,754 | 8,129 | 8,020 | |||||||||||||||
| Computer services | 3,479 | 3,471 | 3,343 | 3,397 | 3,413 | |||||||||||||||
| Software expense | 2,061 | 2,198 | 2,082 | 2,142 | 2,074 | |||||||||||||||
| Telecommunication expense | 1,168 | 1,515 | 1,367 | 1,380 | 1,347 | |||||||||||||||
| OREO valuation expense | 341 | 2,075 | 1,710 | 1,390 | 1,554 | |||||||||||||||
| Net gains on sales of OREO | (801 | ) | (351 | ) | (957 | ) | (7 | ) | (419 | ) | ||||||||||
| Foreclosed asset related expense | 405 | 872 | 600 | 674 | 619 | |||||||||||||||
| Loan workout expense | 650 | 194 | 795 | 623 | 1,352 | |||||||||||||||
| Conversion and merger related expense | 704 | — | — | — | — | |||||||||||||||
| Professional fees | 1,529 | 1,958 | 1,723 | 1,734 | 2,116 | |||||||||||||||
| Losses on extinguishment of debt | — | — | 1,438 | — | — | |||||||||||||||
| Restructuring charges, net | 4,248 | 23 | 178 | 2,341 | — | |||||||||||||||
| Contingent value right expense | — | — | 4 | 116 | 334 | |||||||||||||||
| Regulatory assessments | 1,486 | 1,423 | 1,831 | 1,695 | 1,705 | |||||||||||||||
| Other expense | 4,882 | 4,418 | 5,645 | 4,868 | 4,495 | |||||||||||||||
| Total non-interest expense | 47,756 | 48,346 | 49,502 | 52,647 | 50,932 | |||||||||||||||
| Income before income taxes | 23,830 | 23,910 | 20,247 | 17,843 | 21,650 | |||||||||||||||
| Income tax expense | 8,809 | 8,589 | 7,257 | 6,454 | 7,814 | |||||||||||||||
| Net income | $ | 15,021 | $ | 15,321 | $ | 12,990 | $ | 11,389 | $ | 13,836 | ||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.35 | $ | 0.34 | $ | 0.28 | $ | 0.25 | $ | 0.29 | ||||||||||
| Diluted | $ | 0.34 | $ | 0.33 | $ | 0.28 | $ | 0.24 | $ | 0.29 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 43,499 | 45,359 | 45,913 | 46,294 | 46,964 | |||||||||||||||
| Diluted | 44,550 | 46,534 | 47,220 | 47,632 | 48,243 | |||||||||||||||
| CAPITAL BANK FINANCIAL CORP. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Dollars and shares in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Dec 31, 2014 | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 87,985 | $ | 80,642 | $ | 106,193 | |||||
| Interest-bearing deposits in other banks | 56,711 | 53,947 | 81,942 | ||||||||
| Total cash and cash equivalents | 144,696 | 134,589 | 188,135 | ||||||||
| Trading securities | 3,013 | 2,893 | 2,410 | ||||||||
| Investment securities available-for-sale at fair value (amortized cost $640,455, | |||||||||||
| $640,447 and $544,488, respectively) | 637,329 | 647,423 | 555,893 | ||||||||
| Investment securities held-to-maturity at amortized cost (fair value $475,134, | |||||||||||
| $475,428 and $443,379, respectively) | 472,505 | 467,544 | 436,962 | ||||||||
| Loans held for sale | 10,569 | 8,515 | 5,516 | ||||||||
| Loans, net of deferred loan costs and fees | 5,622,147 | 5,396,429 | 4,994,703 | ||||||||
| Less: Allowance for loan and lease losses | 45,034 | 46,278 | 50,211 | ||||||||
| Loans, net | 5,577,113 | 5,350,151 | 4,944,492 | ||||||||
| Other real estate owned | 52,776 | 54,691 | 77,626 | ||||||||
| FDIC indemnification asset | 6,725 | 9,789 | 16,762 | ||||||||
| Receivable from FDIC | 678 | 1,052 | 3,661 | ||||||||
| Premises and equipment, net | 159,149 | 161,342 | 173,176 | ||||||||
| Goodwill | 134,522 | 134,522 | 134,522 | ||||||||
| Intangible assets, net | 15,100 | 16,045 | 18,897 | ||||||||
| Deferred income tax asset, net | 105,316 | 104,950 | 129,624 | ||||||||
| Other assets | 129,988 | 167,690 | 143,734 | ||||||||
| Total Assets | $ | 7,449,479 | $ | 7,261,196 | $ | 6,831,410 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing demand | $ | 1,121,160 | $ | 1,099,252 | $ | 1,054,128 | |||||
| Negotiable order of withdrawal | 1,382,732 | 1,251,365 | 1,383,990 | ||||||||
| Money market | 1,190,121 | 1,005,406 | 898,254 | ||||||||
| Savings | 418,879 | 436,385 | 500,028 | ||||||||
| Time deposits | 1,747,318 | 1,773,170 | 1,418,700 | ||||||||
| Total deposits | 5,860,210 | 5,565,578 | 5,255,100 | ||||||||
| Federal Home Loan Bank advances | 460,898 | 520,947 | 296,091 | ||||||||
| Short-term borrowings | 12,410 | 16,708 | 23,407 | ||||||||
| Long-term borrowings | 85,777 | 85,230 | 139,681 | ||||||||
| Accrued expenses and other liabilities | 43,919 | 50,091 | 53,557 | ||||||||
| Total liabilities | $ | 6,463,214 | $ | 6,238,554 | $ | 5,767,836 | |||||
| Shareholders’ equity | |||||||||||
| Preferred stock $0.01 par value: 50,000 shares authorized, 0 shares issued | — | — | — | ||||||||
| Common stock-Class A $0.01 par value: 200,000 shares authorized, 37,012 | |||||||||||
| issued and 26,589 outstanding, 37,178 issued and 27,912 outstanding and 36,936 issued and 30,150 outstanding, respectively. | 370 | 372 | 370 | ||||||||
| Common stock-Class B $0.01 par value: 200,000 shares authorized, 18,327 | |||||||||||
| issued and 16,554 outstanding, 18,327 issued and 16,554 outstanding and 18,743 issued and 17,443 outstanding, respectively. | 183 | 183 | 187 | ||||||||
| Additional paid in capital | 1,076,415 | 1,079,229 | 1,081,628 | ||||||||
| Retained earnings | 208,742 | 198,103 | 158,403 | ||||||||
| Accumulated other comprehensive loss | (5,196 | ) | 2,578 | (3,824 | ) | ||||||
| Treasury stock, at cost, 12,196, 11,039 and 8,086 shares, respectively | (294,249 | ) | (257,823 | ) | (173,190 | ) | |||||
| Total shareholders’ equity | 986,265 | 1,022,642 | 1,063,574 | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | 7,449,479 | $ | 7,261,196 | $ | 6,831,410 | |||||
| CAPITAL BANK FINANCIAL CORP. | |||||||||||||||||||
| KEY METRICS | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Interest rate spread | 3.57 | % | 3.68 | % | 3.79 | % | 3.83 | % | 3.92 | % | |||||||||
| Net interest margin | 3.70 | % | 3.82 | % | 3.94 | % | 3.96 | % | 4.05 | % | |||||||||
| Return on average assets | 0.82 | % | 0.86 | % | 0.75 | % | 0.66 | % | 0.82 | % | |||||||||
| Return on average shareholders’ equity | 5.99 | % | 5.85 | % | 4.90 | % | 4.29 | % | 5.21 | % | |||||||||
| Efficiency ratio | 65.71 | % | 66.18 | % | 69.67 | % | 75.59 | % | 70.79 | % | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.55 | % | 132.10 | % | 133.39 | % | 131.94 | % | 131.89 | % | |||||||||
| Average loans receivable to average deposits | 96.68 | % | 96.01 | % | 94.12 | % | 95.47 | % | 93.94 | % | |||||||||
| Yield on interest-earning assets | 4.14 | % | 4.26 | % | 4.36 | % | 4.38 | % | 4.47 | % | |||||||||
| Cost of interest-bearing liabilities | 0.57 | % | 0.58 | % | 0.57 | % | 0.55 | % | 0.55 | % | |||||||||
| Asset and Credit Quality Ratios-Total Loans | |||||||||||||||||||
| Non-accrual loans | $ | 8,945 | $ | 9,647 | $ | 9,807 | $ | 11,482 | $ | 9,484 | |||||||||
| Acquired impaired loans > 90 days past due and still accruing | $ | 59,194 | $ | 72,023 | $ | 83,515 | $ | 115,865 | $ | 121,137 | |||||||||
| Nonperforming loans to loans receivable | 1.21 | % | 1.51 | % | 1.79 | % | 2.51 | % | 2.61 | % | |||||||||
| Nonperforming assets to total assets | 1.63 | % | 1.88 | % | 2.23 | % | 2.85 | % | 3.05 | % | |||||||||
| Covered loans to total gross loans | 1.30 | % | 1.45 | % | 3.39 | % | 3.71 | % | 3.95 | % | |||||||||
| ALLL to nonperforming assets | 37.13 | % | 33.88 | % | 30.56 | % | 24.22 | % | 24.09 | % | |||||||||
| ALLL to total gross loans | 0.80 | % | 0.86 | % | 0.92 | % | 0.95 | % | 1.00 | % | |||||||||
| Annualized net charge-offs/average loans | 0.17 | % | 0.20 | % | 0.12 | % | 0.09 | % | 0.12 | % | |||||||||
| Asset and Credit Quality Ratios-New Loans | |||||||||||||||||||
| Nonperforming new loans to total new loans receivable | 0.11 | % | 0.17 | % | 0.19 | % | 0.22 | % | 0.16 | % | |||||||||
| New loans ALLL to total gross new loans | 0.47 | % | 0.51 | % | 0.59 | % | 0.61 | % | 0.63 | % | |||||||||
| Asset and Credit Quality Ratios-Acquired Loans | |||||||||||||||||||
| Nonperforming acquired loans to total acquired loans receivable | 4.69 | % | 5.21 | % | 5.58 | % | 7.30 | % | 7.28 | % | |||||||||
| Covered acquired loans to total gross acquired loans | 5.43 | % | 5.45 | % | 11.38 | % | 11.47 | % | 11.47 | % | |||||||||
| Acquired loans ALLL to total gross acquired loans | 1.83 | % | 1.80 | % | 1.71 | % | 1.67 | % | 1.71 | % | |||||||||
| Capital Ratios (Company) | |||||||||||||||||||
| Total average shareholders’ equity to total average assets | 13.67 | % | 14.79 | % | 15.41 | % | 15.48 | % | 15.72 | % | |||||||||
| Tangible common equity ratio (1) | 11.46 | % | 12.26 | % | 13.15 | % | 13.22 | % | 13.63 | % | |||||||||
| Tier 1 leverage ratio (2) | 12.67 | % | 13.60 | % | 14.66 | % | 14.42 | % | 14.28 | % | |||||||||
| Tier 1 risk-based capital ratio (2) | 14.73 | % | 14.44 | % | 16.07 | % | 16.42 | % | N/A | ||||||||||
| Tier 1 common capital ratio (2) | 13.63 | % | 15.60 | % | 17.33 | % | 17.70 | % | 18.00 | % | |||||||||
| Total risk-based capital ratio (2) | 15.47 | % | 16.38 | % | 18.18 | % | 18.66 | % | 19.05 | % | |||||||||
| Capital Ratios (Bank) | |||||||||||||||||||
| Tangible common equity ratio (1) | 11.20 | % | 11.36 | % | 11.35 | % | 11.32 | % | 14.29 | % | |||||||||
| Tier 1 leverage ratio (2) | 11.09 | % | 11.19 | % | 11.15 | % | 10.89 | % | 13.52 | % | |||||||||
| Tier 1 common capital ratio (2) | 12.89 | % | 12.85 | % | 13.18 | % | 13.34 | % | N/A | ||||||||||
| Tier 1 risk-based capital ratio (2) | 12.89 | % | 12.85 | % | 13.18 | % | 13.34 | % | 17.04 | % | |||||||||
| Total risk-based capital ratio (2) | 13.68 | % | 13.69 | % | 14.10 | % | 14.30 | % | 18.09 | % | |||||||||
(1) See “Reconciliation of Non-GAAP Measures”
(2) December 31, 2015 regulatory capital ratios are preliminary. The Company became subject to Basel III capital rules on January 1, 2015.
| CAPITAL BANK FINANCIAL CORP. | |||||||||||||||||||
| LOANS AND DEPOSITS | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||||||||
| Loans | |||||||||||||||||||
| Non-owner occupied commercial real estate | $ | 866,392 | $ | 847,225 | $ | 834,351 | $ | 823,763 | $ | 798,556 | |||||||||
| Other commercial construction and land | 196,795 | 192,283 | 182,283 | 180,166 | 200,755 | ||||||||||||||
| Multifamily commercial real estate | 80,708 | 82,762 | 76,754 | 88,980 | 89,132 | ||||||||||||||
| 1-4 family residential construction and land | 93,242 | 87,193 | 78,572 | 66,547 | 68,658 | ||||||||||||||
| Total commercial real estate | 1,237,137 | 1,209,463 | 1,171,960 | 1,159,456 | 1,157,101 | ||||||||||||||
| Owner occupied commercial real estate | 1,104,972 | 1,065,875 | 1,030,111 | 1,038,493 | 1,046,736 | ||||||||||||||
| Commercial and industrial | 1,309,704 | 1,219,101 | 1,181,451 | 1,125,708 | 1,073,791 | ||||||||||||||
| Lease financing | 1,256 | 1,488 | 1,661 | 1,834 | 2,005 | ||||||||||||||
| Total commercial | 2,415,932 | 2,286,464 | 2,213,223 | 2,166,035 | 2,122,532 | ||||||||||||||
| 1-4 family residential | 1,017,791 | 985,982 | 959,224 | 928,832 | 925,698 | ||||||||||||||
| Home equity loans | 375,276 | 373,993 | 375,271 | 379,946 | 378,475 | ||||||||||||||
| Other consumer loans | 436,478 | 401,324 | 341,590 | 296,753 | 272,453 | ||||||||||||||
| Total consumer | 1,829,545 | 1,761,299 | 1,676,085 | 1,605,531 | 1,576,626 | ||||||||||||||
| Other | 150,102 | 147,718 | 145,146 | 146,987 | 143,960 | ||||||||||||||
| Total loans | $ | 5,632,716 | $ | 5,404,944 | $ | 5,206,414 | $ | 5,078,009 | $ | 5,000,219 | |||||||||
| Deposits | |||||||||||||||||||
| Non-interest bearing demand | $ | 1,121,160 | $ | 1,099,252 | $ | 1,132,085 | $ | 1,114,423 | $ | 1,054,128 | |||||||||
| Negotiable order of withdrawal | 1,382,732 | 1,251,365 | 1,367,123 | 1,405,390 | 1,383,990 | ||||||||||||||
| Money market | 1,040,086 | 927,391 | 991,520 | 924,228 | 898,254 | ||||||||||||||
| Savings | 418,879 | 436,385 | 479,885 | 491,394 | 500,028 | ||||||||||||||
| Total core deposits | 3,962,857 | 3,714,393 | 3,970,613 | 3,935,435 | 3,836,400 | ||||||||||||||
| Wholesale money market | 150,035 | 78,015 | — | — | — | ||||||||||||||
| Time deposits | 1,747,318 | 1,773,170 | 1,521,810 | 1,428,121 | 1,418,700 | ||||||||||||||
| Total deposits | $ | 5,860,210 | $ | 5,565,578 | $ | 5,492,423 | $ | 5,363,556 | $ | 5,255,100 | |||||||||
| CAPITAL BANK FINANCIAL CORP. | |||||||||||||||||||
| LEGACY CREDIT EXPENSES | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec. 31, 2014 | |||||||||||||||
| Reversal of provision on legacy loans | $ | (1,161 | ) | $ | 492 | $ | (523 | ) | $ | (1,926 | ) | $ | (1,411 | ) | |||||
| FDIC indemnification asset expense | 1,526 | 1,418 | 2,499 | 2,439 | 3,421 | ||||||||||||||
| OREO valuation expense | 341 | 2,075 | 1,710 | 1,390 | 1,554 | ||||||||||||||
| Net gains on sales of OREO | (801 | ) | (351 | ) | (957 | ) | (7 | ) | (419 | ) | |||||||||
| Foreclosed asset related expense | 405 | 872 | 600 | 674 | 619 | ||||||||||||||
| Loan workout expense | 650 | 194 | 795 | 623 | 1,352 | ||||||||||||||
| Salaries and employee benefits | 549 | 797 | 796 | 832 | 993 | ||||||||||||||
| Total legacy credit expenses | $ | 1,509 | $ | 5,497 | $ | 4,920 | $ | 4,025 | $ | 6,109 | |||||||||
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Three Months Ended December 31, 2015 | Three Months Ended September 30, 2015 | |||||||||||||||||||||
| Average Balances | Interest | Yield / Rate | Average Balances | Interest | Yield / Rate | |||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||
| Loans (1) | $ | 5,496,222 | $ | 63,035 | 4.55 | % | $ | 5,261,793 | $ | 62,461 | 4.71 | % | ||||||||||
| Investment securities (1) | 1,119,848 | 6,355 | 2.25 | % | 1,088,818 | 5,885 | 2.14 | % | ||||||||||||||
| Interest-bearing deposits in other banks | 40,177 | 23 | 0.23 | % | 36,596 | 19 | 0.21 | % | ||||||||||||||
| Other earning assets (2) | 42,473 | 553 | 5.17 | % | 54,960 | 760 | 5.49 | % | ||||||||||||||
| Total interest earning assets | 6,698,720 | $ | 69,966 | 4.14 | % | 6,442,167 | $ | 69,125 | 4.26 | % | ||||||||||||
| Non-interest earning assets | 633,796 | 645,715 | ||||||||||||||||||||
| Total assets | $ | 7,332,516 | $ | 7,087,882 | ||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||
| Time deposits | $ | 1,774,732 | $ | 4,124 | 0.92 | % | $ | 1,642,745 | $ | 3,957 | 0.96 | % | ||||||||||
| Money market | 1,081,968 | 780 | 0.29 | % | 977,273 | 658 | 0.27 | % | ||||||||||||||
| Negotiable order of withdrawal | 1,286,737 | 529 | 0.16 | % | 1,291,439 | 540 | 0.17 | % | ||||||||||||||
| Savings | 426,686 | 236 | 0.22 | % | 452,058 | 241 | 0.21 | % | ||||||||||||||
| Total interest bearing deposits | 4,570,123 | 5,669 | 0.49 | % | 4,363,515 | 5,396 | 0.49 | % | ||||||||||||||
| Short-term borrowings and FHLB advances | 515,302 | 365 | 0.28 | % | 428,249 | 272 | 0.25 | % | ||||||||||||||
| Long-term borrowings | 85,438 | 1,441 | 6.69 | % | 84,922 | 1,413 | 6.60 | % | ||||||||||||||
| Total interest bearing liabilities | 5,170,863 | $ | 7,475 | 0.57 | % | 4,876,686 | $ | 7,081 | 0.58 | % | ||||||||||||
| Non-interest bearing demand | 1,114,932 | 1,116,757 | ||||||||||||||||||||
| Other liabilities | 44,479 | 46,117 | ||||||||||||||||||||
| Shareholders’ equity | 1,002,242 | 1,048,322 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,332,516 | $ | 7,087,882 | ||||||||||||||||||
| Net interest income and spread | $ | 62,491 | 3.57 | % | $ | 62,044 | 3.68 | % | ||||||||||||||
| Net interest margin | 3.70 | % | 3.82 | % | ||||||||||||||||||
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||||
| QUARTERLY AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Three Months Ended December 31, 2015 | Three Months Ended December 31, 2014 | |||||||||||||||||||||
| Average Balances | Interest | Yield / Rate | Average Balances | Interest | Yield / Rate | |||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||
| Loans (1) | $ | 5,496,222 | $ | 63,035 | 4.55 | % | $ | 4,929,599 | $ | 62,053 | 4.99 | % | ||||||||||
| Investment securities (1) | 1,119,848 | 6,355 | 2.25 | % | 1,025,016 | 5,386 | 2.08 | % | ||||||||||||||
| Interest-bearing deposits in other banks | 40,177 | 23 | 0.23 | % | 43,532 | 24 | 0.22 | % | ||||||||||||||
| Other earning assets (2) | 42,473 | 553 | 5.17 | % | 47,601 | 659 | 5.49 | % | ||||||||||||||
| Total interest earning assets | 6,698,720 | $ | 69,966 | 4.14 | % | 6,045,748 | $ | 68,122 | 4.47 | % | ||||||||||||
| Non-interest earning assets | 633,796 | 703,376 | ||||||||||||||||||||
| Total assets | $ | 7,332,516 | $ | 6,749,124 | ||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||
| Time deposits | $ | 1,774,732 | $ | 4,124 | 0.92 | % | $ | 1,434,775 | $ | 3,108 | 0.86 | % | ||||||||||
| Money market | 1,081,968 | 780 | 0.29 | % | 905,225 | 550 | 0.24 | % | ||||||||||||||
| Negotiable order of withdrawal | 1,286,737 | 529 | 0.16 | % | 1,351,295 | 591 | 0.17 | % | ||||||||||||||
| Savings | 426,686 | 236 | 0.22 | % | 508,979 | 279 | 0.22 | % | ||||||||||||||
| Total interest bearing deposits | 4,570,123 | 5,669 | 0.49 | % | 4,200,274 | 4,528 | 0.43 | % | ||||||||||||||
| Short-term borrowings and FHLB advances | 515,302 | 365 | 0.28 | % | 246,675 | 139 | 0.22 | % | ||||||||||||||
| Long-term borrowings | 85,438 | 1,441 | 6.69 | % | 136,876 | 1,732 | 5.02 | % | ||||||||||||||
| Total interest bearing liabilities | 5,170,863 | $ | 7,475 | 0.57 | % | 4,583,825 | $ | 6,399 | 0.55 | % | ||||||||||||
| Non-interest bearing demand | 1,114,932 | 1,047,135 | ||||||||||||||||||||
| Other liabilities | 44,479 | 56,883 | ||||||||||||||||||||
| Shareholders’ equity | 1,002,242 | 1,061,281 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,332,516 | $ | 6,749,124 | ||||||||||||||||||
| Net interest income and spread | $ | 62,491 | 3.57 | % | $ | 61,723 | 3.92 | % | ||||||||||||||
| Net interest margin | 3.70 | % | 4.05 | % | ||||||||||||||||||
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||||
| FULL YEAR AVERAGE BALANCES AND YIELDS | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||||
| Average Balances | Interest | Yield/ Rate | Average Balances | Interest | Yield/ Rate | |||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||
| Loans (1) | $ | 5,222,014 | $ | 247,912 | 4.75 | % | $ | 4,708,076 | $ | 249,718 | 5.30 | % | ||||||||||
| Investment securities (1) | 1,065,699 | 22,679 | 2.13 | % | 1,072,551 | 19,997 | 1.86 | % | ||||||||||||||
| Interest-bearing deposits in other banks | 47,664 | 112 | 0.23 | % | 47,986 | 105 | 0.22 | % | ||||||||||||||
| Other earning assets (2) | 48,976 | 2,646 | 5.40 | % | 44,227 | 2,423 | 5.48 | % | ||||||||||||||
| Total interest earning assets | 6,384,353 | $ | 273,349 | 4.28 | % | 5,872,840 | $ | 272,243 | 4.64 | % | ||||||||||||
| Non-interest earning assets | 657,146 | 744,625 | ||||||||||||||||||||
| Total assets | $ | 7,041,499 | $ | 6,617,465 | ||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||
| Time deposits | $ | 1,574,100 | $ | 14,481 | 0.92 | % | $ | 1,394,916 | $ | 11,943 | 0.86 | % | ||||||||||
| Money market | 979,650 | 2,591 | 0.26 | % | 930,158 | 2,151 | 0.23 | % | ||||||||||||||
| Negotiable order of withdrawal | 1,338,766 | 2,239 | 0.17 | % | 1,327,452 | 2,222 | 0.17 | % | ||||||||||||||
| Savings | 464,840 | 1,002 | 0.22 | % | 524,705 | 1,135 | 0.22 | % | ||||||||||||||
| Total interest bearing deposits | 4,357,356 | 20,313 | 0.47 | % | 4,177,231 | 17,451 | 0.42 | % | ||||||||||||||
| Short-term borrowings and FHLB advances | 381,786 | 960 | 0.25 | % | 166,187 | 385 | 0.23 | % | ||||||||||||||
| Long-term borrowings | 108,987 | 6,225 | 5.71 | % | 136,099 | 6,886 | 5.06 | % | ||||||||||||||
| Total interest bearing liabilities | 4,848,129 | $ | 27,498 | 0.57 | % | 4,479,517 | $ | 24,722 | 0.55 | % | ||||||||||||
| Non-interest bearing demand | 1,105,553 | 1,000,994 | ||||||||||||||||||||
| Other liabilities | 44,787 | 54,041 | ||||||||||||||||||||
| Shareholders’ equity | 1,043,030 | 1,082,913 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,041,499 | $ | 6,617,465 | ||||||||||||||||||
| Net interest income and spread | $ | 245,851 | 3.71 | % | $ | 247,521 | 4.09 | % | ||||||||||||||
| Net interest margin | 3.85 | % | 4.21 | % | ||||||||||||||||||
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| CORE NET INCOME | Three Months Ended | |||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
| Net Income | $ | 15,021 | $ | 15,021 | $ | 15,321 | $ | 15,321 | $ | 13,836 | $ | 13,836 | ||||||||||||
| Pre-Tax | After-Tax | Pre-Tax | After-Tax | Pre-Tax | After-Tax | |||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||
| Security gains* | (54 | ) | (33 | ) | 43 | 26 | (513 | ) | (313 | ) | ||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||
| Stock-based compensation expense* | — | — | — | — | 239 | 146 | ||||||||||||||||||
| Contingent value right expense | — | — | — | — | 334 | 334 | ||||||||||||||||||
| Severance expense | — | — | 63 | 39 | — | — | ||||||||||||||||||
| Restructuring expense | 32 | 20 | 23 | 14 | — | — | ||||||||||||||||||
| Conversion costs and merger tax deductible | 33 | 20 | — | — | — | — | ||||||||||||||||||
| Legal merger non deductible | 673 | 673 | — | — | — | — | ||||||||||||||||||
| Contract Termination | 4,215 | 2,594 | — | — | — | — | ||||||||||||||||||
| Tax effect of adjustments* | (1,625 | ) | N/A | (50 | ) | N/A | 107 | N/A | ||||||||||||||||
| Core Net Income | $ | 18,295 | $ | 18,295 | $ | 15,400 | $ | 15,400 | $ | 14,003 | $ | 14,003 | ||||||||||||
| Diluted shares | $ | 44,550 | $ | 46,534 | $ | 48,243 | ||||||||||||||||||
| Core Net Income per share | $ | 0.41 | $ | 0.33 | $ | 0.29 | ||||||||||||||||||
| Less: FDIC indemnification asset expense (non-single family) | $ | 430 | $ | 964 | ||||||||||||||||||||
| Average Assets | $ | 7,332,516 | $ | 7,087,882 | $ | 6,749,124 | ||||||||||||||||||
| ROA** | 0.82 | % | 0.86 | % | 0.82 | % | ||||||||||||||||||
| Core ROA*** | 1.00 | % | 0.87 | % | 0.83 | % | ||||||||||||||||||
| ROA** (excluding FDIC indemnification asset expense) | 0.84 | % | 0.92 | % | ||||||||||||||||||||
| Core ROA** (excluding FDIC indemnification asset expense) | 1.02 | % | 0.92 | % | ||||||||||||||||||||
* Tax effected at an income tax rate of 37.0%
** ROA: Annualized net income / Average assets
*** Core ROA: Annualized core net income / Average assets
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES (Continuation) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| CORE EFFICIENCY RATIO | Three Months Ended | |||||||||||||||||||
| Dec 31 2015 | Sep 30 2015 | Jun 30 2015 | Mar 31 2015 | Dec 31 2014 | ||||||||||||||||
| Net interest income | $ | 62,078 | $ | 61,637 | $ | 60,685 | $ | 59,729 | $ | 61,351 | ||||||||||
| Reported non-interest income | 10,597 | 11,418 | 10,363 | 9,920 | 10,594 | |||||||||||||||
| Less: Securities gains (losses) | 54 | (43 | ) | (57 | ) | 90 | 513 | |||||||||||||
| Core non-interest income | $ | 10,543 | $ | 11,461 | $ | 10,420 | $ | 9,830 | $ | 10,081 | ||||||||||
| Reported non-interest expense | $ | 47,756 | $ | 48,346 | $ | 49,502 | $ | 52,647 | $ | 50,932 | ||||||||||
| Less: Stock-based compensation expense | — | — | — | 95 | 239 | |||||||||||||||
| Contingent value right expense | — | — | 4 | 116 | 334 | |||||||||||||||
| Severance expense | — | 63 | 14 | 111 | — | |||||||||||||||
| Restructuring expense | — | 23 | 178 | 2,341 | — | |||||||||||||||
| Loss on extinguishment of debt | — | — | 1,438 | — | — | |||||||||||||||
| Conversion Costs and merger | 33 | — | — | — | — | |||||||||||||||
| Contract termination | 4,215 | — | — | — | — | |||||||||||||||
| Conversion and severance expenses (conversion and merger expenses and salaries and employees benefits) | 704 | — | — | — | — | |||||||||||||||
| Core non-interest expense | $ | 42,804 | $ | 48,260 | $ | 47,868 | $ | 49,984 | $ | 50,359 | ||||||||||
| Less: FDIC indemnification asset expense (non-single family) | $ | 683 | $ | 1,506 | $ | 2,253 | ||||||||||||||
| Efficiency ratio* | 65.71 | % | 66.18 | % | 69.67 | % | 75.59 | % | 70.79 | % | ||||||||||
| Core efficiency ratio** | 58.94 | % | 66.02 | % | 67.32 | % | 71.86 | % | 70.50 | % | ||||||||||
| Efficiency ratio* (excluding FDIC indemnification expense) | 65.10 | % | 64.84 | % | 67.53 | % | ||||||||||||||
| Core efficiency ratio** (excluding FDIC indemnification expense) | 58.39 | % | 64.69 | % | 65.25 | % | ||||||||||||||
* Efficiency Ratio: Non-interest expense / (Non-interest income + Net interest income)
** Core Efficiency Ratio: Core non-interest expense / (Core non-interest income + Net interest income)
| CAPITAL BANK FINANCIAL CORP. | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES (Continuation) | ||||||||||||||||||||
| (Dollars and shares in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| TANGIBLE BOOK VALUE | Three Months Ended | |||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||||||||||||
| Total shareholders’ equity | $ | 986,265 | $ | 1,022,642 | $ | 1,059,346 | $ | 1,054,349 | $ | 1,063,574 | ||||||||||
| Less: goodwill, core deposits intangibles, net of taxes | (143,863 | ) | (144,447 | ) | (145,035 | ) | (145,622 | ) | (146,168 | ) | ||||||||||
| Tangible book value* | $ | 842,402 | $ | 878,195 | $ | 914,311 | $ | 908,727 | $ | 917,406 | ||||||||||
| Common shares outstanding | 43,143 | 44,466 | 46,440 | 46,632 | 47,593 | |||||||||||||||
| Tangible book value per share | $ | 19.53 | $ | 19.75 | $ | 19.69 | $ | 19.49 | $ | 19.28 | ||||||||||
* Tangible book value is equal to book value less goodwill and core deposit intangibles, net of related deferred tax liabilities.
| TANGIBLE COMMON EQUITY RATIO | Three Months Ended | |||||||||||||||||||
| Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||||||||||||
| Total shareholders’ equity | $ | 986,265 | $ | 1,022,642 | $ | 1,059,346 | $ | 1,054,349 | $ | 1,063,574 | ||||||||||
| Less: goodwill, core deposits intangibles | (149,622 | ) | (150,567 | ) | (151,517 | ) | (152,465 | ) | (153,419 | ) | ||||||||||
| Tangible common equity | $ | 836,643 | $ | 872,075 | $ | 907,829 | $ | 901,884 | $ | 910,155 | ||||||||||
| Total assets | $ | 7,449,479 | $ | 7,261,196 | $ | 7,054,501 | $ | 6,976,736 | $ | 6,831,410 | ||||||||||
| Less: goodwill, core deposits intangibles | (149,622 | ) | (150,567 | ) | (151,517 | ) | (152,465 | ) | (153,419 | ) | ||||||||||
| Tangible assets | $ | 7,299,857 | $ | 7,110,629 | $ | 6,902,984 | $ | 6,824,271 | $ | 6,677,991 | ||||||||||
| Tangible common equity ratio | 11.46 | % | 12.26 | % | 13.15 | % | 13.22 | % | 13.63 | % | ||||||||||