CBF Reports Fourth Quarter Results
Page 1
January 26, 2017
EXHIBIT 99.1
CONTACT:
Kenneth A. Posner
Chief of Strategic Planning and Investor Relations
Phone: (212) 399-4020
E-mail: Kposner@cbfcorp.com
Capital Bank Financial Corp. Reports 4Q GAAP and Core EPS of $0.24 and $0.44
Charlotte, NC. (January 26, 2017) - Capital Bank Financial Corp. (Nasdaq: CBF) (the “Company”) today reported fourth quarter net income of $12.4 million, which declined 17% year-over-year due to non-core costs largely associated with the acquisition of CommunityOne. GAAP net income equated to $0.24 per diluted share. Core net income rose 22% to $22.3 million, or $0.44 per diluted share. Core adjustments for the fourth quarter included $18.5 million of acquisition and integration expenses, a $1.9 million gain on the sale of securities, a $1.4 million charge related to a legal settlement, and a tax adjustment of $1.4 million.
Highlights of the quarter include:
| |
| • | Closing the CommunityOne acquisition on October 26, 2016; |
| |
| • | Achieving CommunityOne cost savings of 35%, to date, versus our original 39% final target; |
| |
| • | Managing the Balance Sheet through year-end with $9.9 billion in assets; |
| |
| • | Rolling out a new payments platform, including new debit card, credit card and merchant service offerings; |
| |
| • | Reporting a GAAP efficiency ratio of 78.0% and reduced core efficiency ratio of 58.2%; and |
| |
| • | Declaring a quarterly dividend of $0.12 per common share. |
Gene Taylor, Chairman and Chief Executive Officer of Capital Bank Financial Corp., commented, “Capital Bank ended 2016 with very strong results, thanks to the productivity of our teammates, the trust extended us by our clients, and the confidence of our investors. We believe the bank is very well positioned for 2017 in all of our geographies, and we're especially pleased to have our new teammates from CommunityOne now contributing to the bank's growth and profitability.”
Chris Marshall, Chief Financial Officer of Capital Bank Financial Corp., added, “We closed the CommunityOne merger with financial metrics that are slightly better than the original estimates, and we're on track for a smooth systems conversion next month. We are extremely well positioned for consistent improvements in efficiency and profitability throughout 2017.”
Loan Portfolio and Composition
During the fourth quarter, the loan portfolio increased by $1.5 billion to $7.4 billion due to the acquisition of CommunityOne. New loans of $445.2 million were offset by $100 million in low yielding loan sales associated with our balance sheet optimization strategy, as well as payoffs totaling $333.6 million and special asset resolutions of $39.1 million.
The relative composition of the Company’s loan portfolio at the end of the fourth quarter of 2015 and third and fourth quarters of 2016 was as follows:
|
| | | | | | | | | |
| | | Dec 31,
2016 | | Sep 30,
2016 | | Dec 31, 2015 |
| Commercial real estate | | 23 | % | | 22 | % | | 22 | % |
| C&I | | 38 | % | | 43 | % | | 43 | % |
| Consumer | | 36 | % | | 32 | % | | 32 | % |
| Other | | 3 | % | | 3 | % | | 3 | % |
| Total | | 100 | % | | 100 | % | | 100 | % |
CBF Reports Fourth Quarter Results
Page 2
January 26, 2017
Deposits Composition and Cost of Funds
During the fourth quarter, total deposits increased by $1.8 billion to $7.9 billion due to the acquisition of CommunityOne. The cost of deposits decreased two basis points to 0.39%, and the cost of core deposits was flat at 0.19%. The contractual cost of total deposits, which excludes purchase accounting, was flat sequentially at 0.41%.
Net Interest Income and Net Interest Margin
Net interest income increased $15.2 million to $77.8 million from $62.6 million for the third quarter of 2016 and increased $15.7 million from $62.1 million for the fourth quarter of 2015. The increase was due to the acquisition of CommunityOne and organic loan growth. The net interest margin for the fourth quarter of 2016 was 3.67%, an increase of nine basis points sequentially and a decrease of three basis points year-over-year. The quarterly increase in net interest margin was primarily due to a recovery of interest income on previous non-performing loans, the deleveraging of lower yielding loans and the pay-down of high cost brokered deposits.
Non-Interest Income
Non-interest income increased $4.6 million to $17.0 million from $12.4 million for the third quarter of 2016 and $6.4 million from $10.6 million for the fourth quarter of 2015. The sequential increase was mainly due to the acquisition of CommunityOne and an increase of $1.8 million in investment securities gains. The year-over-year increase was mainly due to the acquisition of CommunityOne, an increase of $1.8 million in investment securities gains and the absence of $1.5 million of FDIC indemnification asset expense recorded in the prior year.
Provision for Loan Losses and Credit Quality
The provision of $2.0 million recorded for the fourth quarter of 2016 included a $2.6 million provision for new and acquired non-impaired loans, offset by a $0.6 million provision reversal 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 due to higher than anticipated payoffs and resolutions. Net charge-offs for the fourth quarter of 2016 were $2.9 million.
At December 31, 2016, the allowance for loan losses was $43.1 million, of which $23.0 million related to acquired impaired loans and $20.1 million related to new and acquired non-impaired loans. The allowance for loan losses represents 0.58% of the Company’s total $7.4 billion loan portfolio.
Non-Interest Expense
Non-interest expense increased $26.5 million to $74.0 million from $47.5 million for the third quarter of 2016 and increased $26.2 million from $47.8 million for the fourth quarter of 2015. The sequential increase was mainly due to an $18.1 million increase of conversion and merger related expenses related to the CommunityOne acquisition and additional CommunityOne expenses related to the acquisition. The year-over-year increase was mainly due to a $17.8 million increase of conversion and merger related expenses as described above and additional CommunityOne expenses related to the acquisition. Partially offsetting the increase was the absence of $4.2 million in contract termination.
Income Tax Expense
Income tax expense was $6.4 million for the fourth quarter of 2016, an effective income tax rate of 34.1%, as compared to income tax expense of $8.4 million for the third quarter, an effective income tax rate of 31.2%. Income tax expense was $8.8 million for the fourth quarter of 2015, an effective income tax rate of 37.0%. The sequential increase in the effective rate is due to a favorable tax adjustment reported during the third quarter for discrete items. The year-over-year decrease in the effective tax rate is due to a favorable tax adjustment for discrete tax items reported during the fourth quarter of 2016.
Financial Position
Total assets increased by $2.1 billion to $9.9 billion as of December 31, 2016, from $7.8 billion as of September 30, 2016. During the quarter, the Company’s loan portfolio increased by $1.5 billion to $7.4 billion. Deposits increased by $1.8 billion to $7.9 billion and FHLB borrowings decreased by $30.1 million. Tangible book value per share was $20.01 as of December 31, 2016,
CBF Reports Fourth Quarter Results
Page 3
January 26, 2017
a decrease of $0.52 and an increase of $0.48 over September 30, 2016 and December 31, 2015, respectively. During the fourth quarter, the Company repurchased 0.4 million shares of common stock for $13.7 million at an average price of $34.79 per share. The Company has $88 million remaining under the current board authorized stock repurchase program.
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 11.2%, 12.7%, 12.4% and 13.0%, respectively, as of December 31, 2016, under currently applicable regulations.
The Company declared a cash dividend of $0.12 per share, payable on February 22, 2017, to shareholders of record as of February 8, 2017.
Conference Call
The Company will host a conference call today at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is (913) 312-1496, and the confirmation pass code is 4273196. Please dial in 10 minutes prior to the beginning of the call. A telephonic replay of the conference call will be available through February 3, 2017, by dialing (719) 457-0820 and entering pass code 4273196. 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.
CBF Reports Fourth Quarter Results
Page 4
January 26, 2017
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.
The Company uses these non-GAAP measures for various purposes, including measuring performance for incentive compensation and as a basis for strategic planning and forecasting.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
About Capital Bank Financial Corp.
Capital Bank Financial Corp. is a bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank Corporation, a State of North Carolina chartered financial institution with $9.9 billion in total assets as of December 31, 2016, and 196 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.
CBF Reports Fourth Quarter Results
Page 5
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Dec 31,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec 31,
2015 |
| Interest and dividend income | | $ | 87,746 |
| | $ | 70,929 |
| | $ | 69,579 |
| | $ | 69,472 |
| | $ | 69,553 |
|
| Interest expense | | 9,927 |
| | 8,302 |
| | 8,064 |
| | 8,105 |
| | 7,475 |
|
| Net Interest Income | | 77,819 |
| | 62,627 |
| | 61,515 |
| | 61,367 |
| | 62,078 |
|
| Provision for loan and lease losses | | 1,980 |
| | 586 |
| | 1,172 |
| | 1,375 |
| | 1,089 |
|
| Net interest income after provision for loan and lease losses | | 75,839 |
| | 62,041 |
| | 60,343 |
| | 59,992 |
| | 60,989 |
|
| Non-Interest Income | | | | |
| | |
| | |
| | |
|
| Service charges on deposit accounts | | 5,949 |
| | 4,777 |
| | 4,486 |
| | 4,811 |
| | 4,911 |
|
| Debit card income | | 4,211 |
| | 3,389 |
| | 3,235 |
| | 3,086 |
| | 3,029 |
|
| Fees on mortgage loans originated and sold | | 1,402 |
| | 1,334 |
| | 1,140 |
| | 971 |
| | 875 |
|
| Investment advisory and trust fees | | 591 |
| | 290 |
| | 455 |
| | 497 |
| | 597 |
|
| FDIC indemnification asset expense | | — |
| | — |
| | — |
| | — |
| | (1,526 | ) |
| Termination of loss share agreements | | — |
| | — |
| | — |
| | (9,178 | ) | | — |
|
| Investment securities gains | | 1,894 |
| | 71 |
| | 117 |
| | 40 |
| | 54 |
|
| Other income | | 2,969 |
| | 2,509 |
| | 2,489 |
| | 2,339 |
| | 2,657 |
|
| Total non-interest income | | 17,016 |
| | 12,370 |
| | 11,922 |
| | 2,566 |
| | 10,597 |
|
| Non-Interest Expense | | | | |
| | |
| | |
| | |
|
| Salaries and employee benefits | | 26,134 |
| | 20,935 |
| | 20,139 |
| | 22,162 |
| | 20,219 |
|
| Stock-based compensation expense | | 531 |
| | 790 |
| | 467 |
| | 317 |
| | — |
|
| Net occupancy and equipment expense | | 8,374 |
| | 7,340 |
| | 7,355 |
| | 7,703 |
| | 7,385 |
|
| Computer services | | 4,364 |
| | 3,153 |
| | 3,274 |
| | 3,575 |
| | 3,479 |
|
| Software expense | | 2,391 |
| | 1,948 |
| | 2,000 |
| | 2,036 |
| | 2,061 |
|
| Telecommunication expense | | 2,147 |
| | 1,790 |
| | 1,558 |
| | 1,532 |
| | 1,168 |
|
| OREO valuation expense | | 677 |
| | 742 |
| | 1,119 |
| | 467 |
| | 341 |
|
| Net gains on sales of OREO | | (150 | ) | | (159 | ) | | (413 | ) | | (679 | ) | | (801 | ) |
| Foreclosed asset related expense | | 513 |
| | 397 |
| | 399 |
| | 285 |
| | 405 |
|
| Loan workout expense | | 327 |
| | 206 |
| | 71 |
| | 244 |
| | 650 |
|
| Conversion and merger related expense | | 18,525 |
| | 394 |
| | 1,236 |
| | 1,687 |
| | 704 |
|
| Professional fees | | 1,761 |
| | 1,642 |
| | 1,353 |
| | 1,612 |
| | 1,529 |
|
| Restructuring charges, net | | 4 |
| | (113 | ) | | 5 |
| | 142 |
| | 4,248 |
|
| Legal settlement expense | | 1,361 |
| | 1,500 |
| | — |
| | — |
| | — |
|
| Regulatory assessments | | 1,092 |
| | 841 |
| | 1,259 |
| | 1,275 |
| | 1,486 |
|
| Other expense | | 5,943 |
| | 6,124 |
| | 4,714 |
| | 4,580 |
| | 4,882 |
|
| Total non-interest expense | | 73,994 |
| | 47,530 |
| | 44,536 |
| | 46,938 |
| | 47,756 |
|
| Income before income taxes | | 18,861 |
| | 26,881 |
| | 27,729 |
| | 15,620 |
| | 23,830 |
|
| Income tax expense | | 6,427 |
| | 8,393 |
| | 10,327 |
| | 5,780 |
| | 8,809 |
|
| Net income | | $ | 12,434 |
| | $ | 18,488 |
| | $ | 17,402 |
| | $ | 9,840 |
| | $ | 15,021 |
|
| Earnings per share: | | | | | | | | | | |
| Basic | | $ | 0.25 |
| | $ | 0.43 |
| | $ | 0.40 |
| | $ | 0.23 |
| | $ | 0.35 |
|
| Diluted | | $ | 0.24 |
| | $ | 0.42 |
| | $ | 0.40 |
| | $ | 0.22 |
| | $ | 0.34 |
|
| | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | |
| Basic | | 49,334 |
| | 43,028 |
| | 43,011 |
| | 43,063 |
| | 43,499 |
|
| Diluted | | 50,387 |
| | 43,909 |
| | 43,879 |
| | 43,904 |
| | 44,550 |
|
CBF Reports Fourth Quarter Results
Page 6
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands)
(Unaudited)
|
| | | | | | | | | | | |
| | Dec 31,
2016 | | Sep 30,
2016 | | Dec 31,
2015 |
| Assets | | | | | |
| Cash and due from banks | $ | 107,707 |
| | $ | 88,171 |
| | $ | 87,985 |
|
| Interest-bearing deposits in other banks | 201,348 |
| | 116,136 |
| | 56,711 |
|
| Total cash and cash equivalents | 309,055 |
| | 204,307 |
| | 144,696 |
|
| Trading securities | 3,791 |
| | 3,701 |
| | 3,013 |
|
Investment securities available-for-sale at fair value (amortized cost $927,266, $639,687 and $640,455, respectively) | 912,250 |
| | 652,945 |
| | 637,329 |
|
Investment securities held-to-maturity at amortized cost (fair value $460,911, $474,834 and $475,134, respectively) | 463,959 |
| | 466,063 |
| | 472,505 |
|
| Loans held for sale | 12,874 |
| | 95,253 |
| | 10,569 |
|
| Loans, net of deferred loan costs and fees | 7,393,318 |
| | 5,840,680 |
| | 5,622,147 |
|
| Less: Allowance for loan and lease losses | 43,065 |
| | 43,984 |
| | 45,034 |
|
| Loans, net | 7,350,253 |
| | 5,796,696 |
| | 5,577,113 |
|
| Other real estate owned | 53,482 |
| | 46,007 |
| | 52,776 |
|
| FDIC indemnification asset | — |
| | — |
| | 6,725 |
|
| Receivable from FDIC | — |
| | — |
| | 678 |
|
| Premises and equipment, net | 205,425 |
| | 157,863 |
| | 159,149 |
|
| Goodwill | 235,500 |
| | 134,522 |
| | 134,522 |
|
| Intangible assets, net | 33,370 |
| | 12,288 |
| | 15,100 |
|
| Deferred income tax asset, net | 150,272 |
| | 80,418 |
| | 105,316 |
|
| Other assets | 200,426 |
| | 142,395 |
| | 129,988 |
|
| Total Assets | $ | 9,930,657 |
| | $ | 7,792,458 |
| | $ | 7,449,479 |
|
| Liabilities and Shareholders’ Equity | | | |
| | |
|
| Liabilities | | | |
| | |
|
| Deposits: | | | |
| | |
|
| Non-interest bearing demand | $ | 1,590,164 |
| | $ | 1,207,800 |
| | $ | 1,121,160 |
|
| Interest bearing demand | 1,930,143 |
| | 1,463,520 |
| | 1,382,732 |
|
| Money market | 1,725,838 |
| | 1,291,948 |
| | 1,190,121 |
|
| Savings | 497,171 |
| | 401,205 |
| | 418,879 |
|
| Time deposits | 2,137,312 |
| | 1,668,784 |
| | 1,747,318 |
|
| Total deposits | 7,880,628 |
| | 6,033,257 |
| | 5,860,210 |
|
| Federal Home Loan Bank advances | 545,701 |
| | 575,751 |
| | 460,898 |
|
| Short-term borrowings | 19,157 |
| | 15,428 |
| | 12,410 |
|
| Long-term borrowings | 116,456 |
| | 87,445 |
| | 85,777 |
|
| Accrued expenses and other liabilities | 76,668 |
| | 50,736 |
| | 43,919 |
|
| Total liabilities | $ | 8,638,610 |
| | $ | 6,762,617 |
| | $ | 6,463,214 |
|
| 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, 46,178 issued and 34,911 outstanding, 37,253 issued and 26,381 outstanding and 37,012 issued and 26,589 outstanding, respectively. | 462 |
| | 373 |
| | 370 |
|
Common stock-Class B $0.01 par value: 200,000 shares authorized, 18,627 issued and 16,854 outstanding, 18,627 issued and 16,854 outstanding and 18,327 issued and 16,554 outstanding, respectively. | 186 |
| | 186 |
| | 183 |
|
| Additional paid in capital | 1,368,459 |
| | 1,078,746 |
| | 1,076,415 |
|
| Retained earnings | 247,758 |
| | 241,554 |
| | 208,742 |
|
| Accumulated other comprehensive loss (gain) | (12,434 | ) | | 7,621 |
| | (5,196 | ) |
| Treasury stock, at cost, 13,040, 12,645 and 12,196 shares, respectively | (312,384 | ) | | (298,639 | ) | | (294,249 | ) |
| Total shareholders’ equity | 1,292,047 |
| | 1,029,841 |
| | 986,265 |
|
| Total Liabilities and Shareholders’ Equity | $ | 9,930,657 |
| | $ | 7,792,458 |
| | $ | 7,449,479 |
|
CBF Reports Fourth Quarter Results
Page 7
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
KEY METRICS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Dec 31,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec 31,
2015 |
| Performance Ratios | | | | | | | | | |
| Interest rate spread | 3.53 | % | | 3.43 | % | | 3.48 | % | | 3.50 | % | | 3.57 | % |
| Net interest margin | 3.67 | % | | 3.58 | % | | 3.62 | % | | 3.64 | % | | 3.70 | % |
| Return on average assets | 0.53 | % | | 0.97 | % | | 0.93 | % | | 0.53 | % | | 0.82 | % |
| Return on average shareholders’ equity | 4.05 | % | | 7.24 | % | | 6.87 | % | | 3.96 | % | | 5.99 | % |
| Efficiency ratio | 78.02 | % | | 63.38 | % | | 60.65 | % | | 73.42 | % | | 65.71 | % |
| Average interest-earning assets to average interest-bearing liabilities | 130.22 | % | | 131.43 | % | | 131.21 | % | | 129.54 | % | | 129.55 | % |
| Average loans receivable to average deposits | 94.57 | % | | 98.46 | % | | 96.56 | % | | 95.66 | % | | 96.68 | % |
| Yield on interest-earning assets | 4.13 | % | | 4.05 | % | | 4.09 | % | | 4.11 | % | | 4.14 | % |
| Cost of interest-bearing liabilities | 0.61 | % | | 0.62 | % | | 0.62 | % | | 0.62 | % | | 0.57 | % |
| Asset and Credit Quality Ratios-Total Loans | |
| | |
| | |
| | |
| | |
| Non-accrual loans | $ | 11,449 |
| | $ | 11,873 |
| | $ | 9,016 |
| | $ | 8,526 |
| | $ | 8,945 |
|
| Acquired impaired loans > 90 days past due and still accruing | $ | 63,668 |
| | $ | 48,477 |
| | $ | 56,108 |
| | $ | 56,041 |
| | $ | 59,194 |
|
| Nonperforming loans to loans receivable | 1.01 | % | | 1.02 | % | | 1.13 | % | | 1.15 | % | | 1.21 | % |
| Nonperforming assets to total assets | 1.30 | % | | 1.37 | % | | 1.44 | % | | 1.51 | % | | 1.63 | % |
| Covered loans to total gross loans | — | % | | — | % | | — | % | | — | % | | 1.30 | % |
| ALLL to nonperforming assets | 33.45 | % | | 41.29 | % | | 40.98 | % | | 39.97 | % | | 37.13 | % |
| ALLL to total gross loans | 0.58 | % | | 0.75 | % | | 0.78 | % | | 0.80 | % | | 0.80 | % |
| Annualized net charge-offs/average loans | 0.17 | % | | 0.10 | % | | 0.11 | % | | 0.08 | % | | 0.17 | % |
| Asset and Credit Quality Ratios-New Loans | |
| | |
| | |
| | |
| | |
| Nonperforming new loans to total new loans receivable | 0.18 | % | | 0.19 | % | | 0.12 | % | | 0.11 | % | | 0.11 | % |
| New loans ALLL to total gross new loans | 0.41 | % | | 0.43 | % | | 0.46 | % | | 0.47 | % | | 0.47 | % |
| Asset and Credit Quality Ratios-Acquired Loans | | | | | | | | | |
| Nonperforming acquired loans to total acquired loans receivable | 2.66 | % | | 4.65 | % | | 5.08 | % | | 4.67 | % | | 4.69 | % |
| Covered acquired loans to total gross acquired loans | — | % | | — | % | | — | % | | — | % | | 5.43 | % |
| Acquired loans ALLL to total gross acquired loans | 0.93 | % | | 2.15 | % | | 2.04 | % | | 1.93 | % | | 1.83 | % |
| Capital Ratios (Company) | |
| | |
| | |
| | |
| | |
| Total average shareholders’ equity to total average assets | 13.15 | % | | 13.46 | % | | 13.55 | % | | 13.35 | % | | 13.67 | % |
| Tangible common equity ratio (1) | 10.59 | % | | 11.55 | % | | 11.62 | % | | 11.57 | % | | 11.46 | % |
| Tier 1 leverage ratio (2) | 12.21 | % | | 12.89 | % | | 12.64 | % | | 12.49 | % | | 12.67 | % |
| Tier 1 risk-based capital ratio (2) | 12.40 | % | | 13.27 | % | | 13.38 | % | | 13.38 | % | | 14.73 | % |
| Tier 1 common capital ratio (2) | 13.49 | % | | 14.44 | % | | 14.57 | % | | 14.58 | % | | 13.63 | % |
| Total risk-based capital ratio (2) | 14.02 | % | | 15.12 | % | | 15.29 | % | | 15.32 | % | | 15.47 | % |
| Capital Ratios (Bank) | |
| | |
| | |
| | |
| | |
| Tangible common equity ratio (1) | 11.07 | % | | 10.74 | % | | 10.71 | % | | 11.45 | % | | 11.20 | % |
| Tier 1 leverage ratio (2) | 11.22 | % | | 10.53 | % | | 10.42 | % | | 11.10 | % | | 11.09 | % |
| Tier 1 common capital ratio (2) | 12.41 | % | | 11.98 | % | | 11.97 | % | | 12.95 | % | | 12.89 | % |
| Tier 1 risk-based capital ratio (2) | 12.41 | % | | 11.98 | % | | 11.97 | % | | 12.95 | % | | 12.89 | % |
| Total risk-based capital ratio (2) | 12.95 | % | | 12.70 | % | | 12.72 | % | | 13.72 | % | | 13.68 | % |
(1) See “Reconciliation of Non-GAAP Measures”
(2) December 31, 2016 regulatory capital ratios are preliminary. The Company became subject to Basel III capital rules on January 1, 2015.
CBF Reports Fourth Quarter Results
Page 8
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
LOANS AND DEPOSITS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Dec 31,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec 31, 2015 |
| Loans | | | | | | | | | |
| Non-owner occupied commercial real estate | $ | 1,130,883 |
| | $ | 920,521 |
| | $ | 891,830 |
| | $ | 850,766 |
| | $ | 866,392 |
|
| Other commercial construction and land | 327,622 |
| | 222,794 |
| | 212,315 |
| | 194,971 |
| | 196,795 |
|
| Multifamily commercial real estate | 117,515 |
| | 76,296 |
| | 74,328 |
| | 75,737 |
| | 80,708 |
|
| 1-4 family residential construction and land | 140,030 |
| | 111,954 |
| | 100,306 |
| | 96,703 |
| | 93,242 |
|
| Total commercial real estate | 1,716,050 |
| | 1,331,565 |
| | 1,278,779 |
| | 1,218,177 |
| | 1,237,137 |
|
| Owner occupied commercial real estate | 1,321,405 |
| | 1,072,586 |
| | 1,075,306 |
| | 1,095,460 |
| | 1,104,972 |
|
| Commercial and industrial | 1,468,874 |
| | 1,458,523 |
| | 1,448,698 |
| | 1,375,233 |
| | 1,309,704 |
|
| Lease financing | — |
| | 525 |
| | 877 |
| | 1,088 |
| | 1,256 |
|
| Total commercial | 2,790,279 |
| | 2,531,634 |
| | 2,524,881 |
| | 2,471,781 |
| | 2,415,932 |
|
| 1-4 family residential | 1,714,702 |
| | 1,168,468 |
| | 1,039,309 |
| | 1,015,071 |
| | 1,017,791 |
|
| Home equity loans | 507,759 |
| | 364,117 |
| | 364,169 |
| | 368,510 |
| | 375,276 |
|
| Indirect auto loans | 226,717 |
| | 254,736 |
| | 285,618 |
| | 317,863 |
| | 351,817 |
|
| Other consumer loans | 222,255 |
| | 94,277 |
| | 85,964 |
| | 84,108 |
| | 84,661 |
|
| Total consumer | 2,671,433 |
| | 1,881,598 |
| | 1,775,060 |
| | 1,785,552 |
| | 1,829,545 |
|
| Other | 228,430 |
| | 191,136 |
| | 166,185 |
| | 159,447 |
| | 150,102 |
|
| Total loans | $ | 7,406,192 |
| | $ | 5,935,933 |
| | $ | 5,744,905 |
| | $ | 5,634,957 |
| | $ | 5,632,716 |
|
| | | | | | | | | | |
| Deposits | | | | | |
| | |
| | |
|
| Non-interest bearing demand | $ | 1,590,164 |
| | $ | 1,207,800 |
| | $ | 1,172,481 |
| | $ | 1,190,831 |
| | $ | 1,121,160 |
|
| Interest bearing demand | 1,930,143 |
| | 1,463,520 |
| | 1,456,558 |
| | 1,402,342 |
| | 1,382,732 |
|
| Money market | 1,651,023 |
| | 1,166,918 |
| | 1,105,460 |
| | 1,162,546 |
| | 1,040,086 |
|
| Savings | 497,171 |
| | 401,205 |
| | 403,106 |
| | 420,073 |
| | 418,879 |
|
| Total core deposits | 5,668,501 |
| | 4,239,443 |
| | 4,137,605 |
| | 4,175,792 |
| | 3,962,857 |
|
| Wholesale money market | 74,815 |
| | 125,030 |
| | 50,015 |
| | 100,035 |
| | 150,035 |
|
| Time deposits | 2,137,312 |
| | 1,668,784 |
| | 1,619,507 |
| | 1,663,906 |
| | 1,747,318 |
|
| Total deposits | $ | 7,880,628 |
| | $ | 6,033,257 |
| | $ | 5,807,127 |
| | $ | 5,939,733 |
| | $ | 5,860,210 |
|
CBF Reports Fourth Quarter Results
Page 9
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
LEGACY CREDIT EXPENSES
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Dec 31,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec. 31,
2015 |
| Provision (reversal) on legacy loans | $ | (638 | ) | | $ | 48 |
| | $ | (778 | ) | | $ | 9 |
| | $ | (1,161 | ) |
| FDIC indemnification asset expense | — |
| | — |
| | — |
| | — |
| | 1,526 |
|
| OREO valuation expense | 677 |
| | 742 |
| | 1,119 |
| | 467 |
| | 341 |
|
| Termination of loss share agreements | — |
| | — |
| | — |
| | 9,178 |
| | — |
|
| Net gains on sales of OREO | (150 | ) | | (159 | ) | | (413 | ) | | (679 | ) | | (801 | ) |
| Foreclosed asset related expense | 513 |
| | 397 |
| | 399 |
| | 285 |
| | 405 |
|
| Loan workout expense | 327 |
| | 206 |
| | 71 |
| | 244 |
| | 650 |
|
| Salaries and employee benefits | 510 |
| | 511 |
| | 519 |
| | 522 |
| | 549 |
|
| Total legacy credit expenses | $ | 1,239 |
| | $ | 1,745 |
| | $ | 917 |
| | $ | 10,026 |
| | $ | 1,509 |
|
CBF Reports Fourth Quarter Results
Page 10
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, 2016 | | Three Months Ended
September 30, 2016 |
| | | Average
Balances | | Interest | | Yield / Rate | | Average
Balances | | Interest | | Yield / Rate |
| Interest earning assets | | | | | | | | | | | | |
| Loans (1) | | $ | 6,977,690 |
| | $ | 79,690 |
| | 4.54 | % | | $ | 5,786,171 |
| | $ | 64,055 |
| | 4.40 | % |
| Investment securities (1) | | 1,347,554 |
| | 8,065 |
| | 2.38 | % | | 1,133,031 |
| | 6,924 |
| | 2.43 | % |
| Interest-bearing deposits in other banks | | 143,446 |
| | 166 |
| | 0.46 | % | | 60,373 |
| | 69 |
| | 0.45 | % |
| Other earning assets (2) | | 30,904 |
| | 382 |
| | 4.92 | % | | 29,788 |
| | 337 |
| | 4.50 | % |
| Total interest earning assets | | 8,499,594 |
| | $ | 88,303 |
| | 4.13 | % | | 7,009,363 |
| | $ | 71,385 |
| | 4.05 | % |
| Non-interest earning assets | | 829,740 |
| | | | | | 583,413 |
| | | | |
| Total assets | | $ | 9,329,334 |
| | | | | | $ | 7,592,776 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 2,049,066 |
| | $ | 4,526 |
| | 0.88 | % | | $ | 1,613,502 |
| | $ | 3,992 |
| | 0.98 | % |
| Money market | | 1,601,167 |
| | 1,498 |
| | 0.37 | % | | 1,225,743 |
| | 1,132 |
| | 0.37 | % |
| Interest bearing demand | | 1,748,269 |
| | 935 |
| | 0.21 | % | | 1,444,305 |
| | 752 |
| | 0.21 | % |
| Savings | | 471,466 |
| | 219 |
| | 0.18 | % | | 404,187 |
| | 205 |
| | 0.20 | % |
| Total interest bearing deposits | | 5,869,968 |
| | 7,178 |
| | 0.49 | % | | 4,687,737 |
| | 6,081 |
| | 0.52 | % |
| Short-term borrowings and FHLB advances | | 548,667 |
| | 662 |
| | 0.48 | % | | 558,313 |
| | 635 |
| | 0.45 | % |
| Long-term borrowings | | 108,276 |
| | 2,087 |
| | 7.67 | % | | 87,095 |
| | 1,586 |
| | 7.24 | % |
| Total interest bearing liabilities | | 6,526,911 |
| | $ | 9,927 |
| | 0.61 | % | | 5,333,145 |
| | $ | 8,302 |
| | 0.62 | % |
| Non-interest bearing demand | | 1,508,496 |
| | | | | | 1,188,771 |
| | | | |
| Other liabilities | | 66,710 |
| | | | | | 48,997 |
| | | | |
| Shareholders’ equity | | 1,227,217 |
| | | | | | 1,021,863 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 9,329,334 |
| | | | | | $ | 7,592,776 |
| | | | |
| Net interest income and spread | | | | $ | 78,376 |
| | 3.53 | % | | | | $ | 63,083 |
| | 3.43 | % |
| Net interest margin | | | | | | 3.67 | % | | | | | | 3.58 | % |
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Home Loan Bank stocks
CBF Reports Fourth Quarter Results
Page 11
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, 2016 | | Three Months Ended
December 31, 2015 |
| | | Average
Balances | | Interest | | Yield / Rate | | Average
Balances | | Interest | | Yield / Rate |
| Interest earning assets | | | | | | | | | | | | |
| Loans (1) | | $ | 6,977,690 |
| | $ | 79,690 |
| | 4.54 | % | | $ | 5,496,222 |
| | $ | 63,035 |
| | 4.55 | % |
| Investment securities (1) | | 1,347,554 |
| | 8,065 |
| | 2.38 | % | | 1,119,848 |
| | 6,355 |
| | 2.25 | % |
| Interest-bearing deposits in other banks | | 143,446 |
| | 166 |
| | 0.46 | % | | 40,177 |
| | 23 |
| | 0.23 | % |
| Other earning assets (2) | | 30,904 |
| | 382 |
| | 4.92 | % | | 42,473 |
| | 553 |
| | 5.17 | % |
| Total interest earning assets | | 8,499,594 |
| | $ | 88,303 |
| | 4.13 | % | | 6,698,720 |
| | $ | 69,966 |
| | 4.14 | % |
| Non-interest earning assets | | 829,740 |
| | | | | | 633,796 |
| | | | |
| Total assets | | $ | 9,329,334 |
| | | | | | $ | 7,332,516 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 2,049,066 |
| | $ | 4,526 |
| | 0.88 | % | | $ | 1,774,732 |
| | $ | 4,124 |
| | 0.92 | % |
| Money market | | 1,601,167 |
| | 1,498 |
| | 0.37 | % | | 1,081,968 |
| | 780 |
| | 0.29 | % |
| Interest bearing demand | | 1,748,269 |
| | 935 |
| | 0.21 | % | | 1,286,737 |
| | 529 |
| | 0.16 | % |
| Savings | | 471,466 |
| | 219 |
| | 0.18 | % | | 426,686 |
| | 236 |
| | 0.22 | % |
| Total interest bearing deposits | | 5,869,968 |
| | 7,178 |
| | 0.49 | % | | 4,570,123 |
| | 5,669 |
| | 0.49 | % |
| Short-term borrowings and FHLB advances | | 548,667 |
| | 662 |
| | 0.48 | % | | 515,302 |
| | 365 |
| | 0.28 | % |
| Long-term borrowings | | 108,276 |
| | 2,087 |
| | 7.67 | % | | 85,438 |
| | 1,441 |
| | 6.69 | % |
| Total interest bearing liabilities | | 6,526,911 |
| | $ | 9,927 |
| | 0.61 | % | | 5,170,863 |
| | $ | 7,475 |
| | 0.57 | % |
| Non-interest bearing demand | | 1,508,496 |
| | | | | | 1,114,932 |
| | | | |
| Other liabilities | | 66,710 |
| | | | | | 44,479 |
| | | | |
| Shareholders’ equity | | 1,227,217 |
| | | | | | 1,002,242 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 9,329,334 |
| | | | | | $ | 7,332,516 |
| | | | |
| Net interest income and spread | | | | $ | 78,376 |
| | 3.53 | % | | | | $ | 62,491 |
| | 3.57 | % |
| Net interest margin | | | | | | 3.67 | % | | | | | | 3.70 | % |
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Home Loan Bank stocks
CBF Reports Fourth Quarter Results
Page 12
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
FULL YEAR AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended
December 31, 2016 | | Year Ended
December 31, 2015 |
| | | Average
Balances | | Interest | | Yield/Rate | | Average
Balances | | Interest | | Yield/Rate |
| Interest earning assets | | | | | | | | | | | | |
| Loans (1) | | $ | 6,009,297 |
| | $ | 269,752 |
| | 4.49 | % | | $ | 5,222,014 |
| | $ | 247,912 |
| | 4.75 | % |
| Investment securities (1) | | 1,184,034 |
| | 28,084 |
| | 2.37 | % | | 1,065,699 |
| | 22,679 |
| | 2.13 | % |
| Interest-bearing deposits in other banks | | 85,542 |
| | 393 |
| | 0.46 | % | | 47,664 |
| | 112 |
| | 0.23 | % |
| Other earning assets (2) | | 28,143 |
| | 1,363 |
| | 4.84 | % | | 48,976 |
| | 2,646 |
| | 5.40 | % |
| Total interest earning assets | | 7,307,016 |
| | $ | 299,592 |
| | 4.10 | % | | 6,384,353 |
| | $ | 273,349 |
| | 4.28 | % |
| Non-interest earning assets | | 659,923 |
| | | | | | 657,146 |
| | | | |
| Total assets | | $ | 7,966,939 |
| | | | | | $ | 7,041,499 |
| | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Time deposits | | $ | 1,743,543 |
| | $ | 16,655 |
| | 0.96 | % | | $ | 1,574,100 |
| | $ | 14,481 |
| | 0.92 | % |
| Money market | | 1,315,234 |
| | 4,725 |
| | 0.36 | % | | 979,650 |
| | 2,591 |
| | 0.26 | % |
| Interest bearing demand | | 1,504,305 |
| | 3,085 |
| | 0.21 | % | | 1,338,766 |
| | 2,239 |
| | 0.17 | % |
| Savings | | 426,745 |
| | 860 |
| | 0.20 | % | | 464,840 |
| | 1,002 |
| | 0.22 | % |
| Total interest bearing deposits | | 4,989,827 |
| | 25,325 |
| | 0.51 | % | | 4,357,356 |
| | 20,313 |
| | 0.47 | % |
| Short-term borrowings and FHLB advances | | 513,650 |
| | 2,342 |
| | 0.46 | % | | 381,786 |
| | 960 |
| | 0.25 | % |
| Long-term borrowings | | 92,243 |
| | 6,731 |
| | 7.30 | % | | 108,987 |
| | 6,225 |
| | 5.71 | % |
| Total interest bearing liabilities | | 5,595,720 |
| | $ | 34,398 |
| | 0.61 | % | | 4,848,129 |
| | $ | 27,498 |
| | 0.57 | % |
| Non-interest bearing demand | | 1,256,284 |
| | | | | | 1,105,553 |
| | | | |
| Other liabilities | | 50,152 |
| | | | | | 44,787 |
| | | | |
| Shareholders’ equity | | 1,064,783 |
| | | | | | 1,043,030 |
| | | | |
| Total liabilities and shareholders’ equity | | $ | 7,966,939 |
| | | | | | $ | 7,041,499 |
| | | | |
| Net interest income and spread | | | | $ | 265,194 |
| | 3.49 | % | | | | $ | 245,851 |
| | 3.71 | % |
| Net interest margin | | | | | | 3.63 | % | | | | | | 3.85 | % |
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Home Loan Bank stocks
CBF Reports Fourth Quarter Results
Page 13
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| CORE NET INCOME | | Three Months Ended |
| | | December 31, 2016 | | September 30, 2016 | | December 31, 2015 |
| Net Income | | $ | 12,434 |
| | $ | 12,434 |
| | $ | 18,488 |
| | $ | 18,488 |
| | $ | 15,021 |
| | $ | 15,021 |
|
| | | Pre-Tax | | After-Tax | | Pre-Tax | | After-Tax | | Pre-Tax | | After-Tax |
| Adjustments | | |
| | |
| | |
| | |
| | |
| | |
|
| Non-interest income | | |
| | |
| | |
| | |
| | |
| | |
|
| Security gains* | | (1,894 | ) | | (1,170 | ) | | (71 | ) | | (44 | ) | | (54 | ) | | (33 | ) |
| Non-interest expense | | | | | | |
| | |
| | |
| | |
|
| Legal settlement * | | 1,361 |
| | 841 |
| | 1,500 |
| | 927 |
| | — |
| | — |
|
| Tax adjustment | | (1,350 | ) | | (1,350 | ) | | (1,067 | ) | | (1,067 | ) | | — |
| | — |
|
| Severance expense * | | 7 |
| | 4 |
| | — |
| | — |
| | — |
| | — |
|
| Restructuring expense * | | 4 |
| | 3 |
| | (113 | ) | | (70 | ) | | 32 |
| | 20 |
|
| Conversion costs and merger tax deductible * | | 18,245 |
| | 11,270 |
| | 331 |
| | 205 |
| | 33 |
| | 20 |
|
| Legal non-deductible | | 280 |
| | 280 |
| | 61 |
| | 61 |
| | 673 |
| | 673 |
|
| Contract Termination* | | — |
| | — |
| | — |
| | — |
| | 4,215 |
| | 2,594 |
|
| Tax effect of adjustments* | | (6,775 | ) | | N/A |
| | (629 | ) | | N/A |
| | (1,625 | ) | | N/A |
|
| Core Net Income | | $ | 22,312 |
| | $ | 22,312 |
| | $ | 18,500 |
| | $ | 18,500 |
| | $ | 18,295 |
| | $ | 18,295 |
|
| | | | | | | | | | | | | |
| Diluted shares | | $ | 50,387 |
| | | | $ | 43,909 |
| | | | $ | 44,550 |
| | |
| Core Net Income per share | | $ | 0.44 |
| | | | $ | 0.42 |
| | | | $ | 0.41 |
| | |
| | | | | | | | | | | | | |
| Average Assets | | $ | 9,329,334 |
| | |
| | $ | 7,592,776 |
| | |
| | $ | 7,332,516 |
| | |
|
| ROA** | | 0.53 | % | | |
| | 0.97 | % | | |
| | 0.82 | % | | |
|
| Core ROA*** | | 0.96 | % | | | | 0.97 | % | | |
| | 1.00 | % | | |
|
* Tax effected at an income tax rate of 38%
** ROA: Annualized net income / Average assets
*** Core ROA: Annualized core net income / Average assets
CBF Reports Fourth Quarter Results
Page 14
January 26, 2017
CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES (Continuation)
(Dollars in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| CORE EFFICIENCY RATIO | | Three Months Ended |
| | | Dec 31
2016 | | Sep 30
2016 | | Jun 30
2016 | | Mar 31
2016 | | Dec 31
2015 |
| Net interest income | | $ | 77,819 |
| | $ | 62,627 |
| | $ | 61,515 |
| | $ | 61,367 |
| | $ | 62,078 |
|
| Reported non-interest income | | 17,016 |
| | 12,370 |
| | 11,922 |
| | 2,566 |
| | 10,597 |
|
| Indemnification asset termination | | — |
| | — |
| | — |
| | (9,178 | ) | | — |
|
| Less: Securities gains (losses) | | 1,894 |
| | 71 |
| | 117 |
| | 40 |
| | 54 |
|
| Core non-interest income | | $ | 15,122 |
| | $ | 12,299 |
| | $ | 11,805 |
| | $ | 11,704 |
| | $ | 10,543 |
|
| | | | | | | | | | | |
| Reported non-interest expense | | $ | 73,994 |
| | $ | 47,530 |
| | $ | 44,536 |
| | $ | 46,938 |
| | $ | 47,756 |
|
| Less: Stock-based compensation expense | | — |
| | — |
| | — |
| | — |
| | — |
|
| Severance expense | | 7 |
| | — |
| | — |
| | 75 |
| | — |
|
| Restructuring expense | | 4 |
| | (113 | ) | | 5 |
| | 142 |
| | 33 |
|
| Loss on extinguishment of debt | | — |
| | — |
| | — |
| | — |
| | — |
|
| Conversion costs and merger tax deductible | | 18,245 |
| | 331 |
| | 881 |
| | 1,107 |
| | 31 |
|
| Legal settlement | | 1,361 |
| | 1,500 |
| | — |
| | — |
| | — |
|
| Legal non-deductible | | 280 |
| | 61 |
| | 355 |
| | 580 |
| | 673 |
|
| Contract termination | | — |
| | — |
| | — |
| | — |
| | 4,215 |
|
| Core non-interest expense | | $ | 54,097 |
| | $ | 45,751 |
| | $ | 43,295 |
| | $ | 45,034 |
| | $ | 42,804 |
|
| | | | | | | | | | | |
| Efficiency ratio* | | 78.02 | % | | 63.38 | % | | 60.65 | % | | 73.42 | % | | 65.71 | % |
| Core efficiency ratio** | | 58.21 | % | | 61.06 | % | | 59.05 | % | | 61.63 | % | | 58.94 | % |
* 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)
CBF Reports Fourth Quarter Results
Page 15
January 26, 2017
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,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec 31,
2015 |
| Total shareholders' equity | | $ | 1,292,047 |
| | $ | 1,029,841 |
| | $ | 1,016,498 |
| | $ | 996,993 |
| | $ | 986,265 |
|
| Less: goodwill, core deposits intangibles, net of taxes | | (256,176 | ) | | (142,141 | ) | | (142,725 | ) | | (143,304 | ) | | (143,863 | ) |
| Tangible book value* | | $ | 1,035,871 |
| | $ | 887,700 |
| | $ | 873,773 |
| | $ | 853,689 |
| | $ | 842,402 |
|
| Common shares outstanding | | 51,765 |
| | 43,235 |
| | 43,219 |
| | 43,189 |
| | 43,143 |
|
| Tangible book value per share | | $ | 20.01 |
| | $ | 20.53 |
| | $ | 20.22 |
| | $ | 19.77 |
| | $ | 19.53 |
|
* 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,
2016 | | Sep 30,
2016 | | Jun 30,
2016 | | Mar 31,
2016 | | Dec 31,
2015 |
| Total shareholders' equity | | $ | 1,292,047 |
| | $ | 1,029,841 |
| | $ | 1,016,498 |
| | $ | 996,993 |
| | $ | 986,265 |
|
| Less: goodwill, core deposits intangibles | | (268,870 | ) | | (146,810 | ) | | (147,753 | ) | | (148,688 | ) | | (149,622 | ) |
| Tangible common equity | | $ | 1,023,177 |
| | $ | 883,031 |
| | $ | 868,745 |
| | $ | 848,305 |
| | $ | 836,643 |
|
| Total assets | | $ | 9,930,657 |
| | $ | 7,792,458 |
| | $ | 7,621,225 |
| | $ | 7,479,798 |
| | $ | 7,449,479 |
|
| Less: goodwill, core deposits intangibles | | (268,870 | ) | | (146,810 | ) | | (147,753 | ) | | (148,688 | ) | | (149,622 | ) |
| Tangible assets | | $ | 9,661,787 |
| | $ | 7,645,648 |
| | $ | 7,473,472 |
| | $ | 7,331,110 |
| | $ | 7,299,857 |
|
| Tangible common equity ratio | | 10.59 | % | | 11.55 | % | | 11.62 | % | | 11.57 | % | | 11.46 | % |
