UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From _____ to ____
Commission File Number 0-30062
CAPITAL BANK CORPORATION
------------------------
(Exact name of registrant as specified in its charter)
North Carolina 56-2101930
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
4901 Glenwood Avenue
Raleigh, North Carolina 27612
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(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (919) 645-6400
----------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. X Yes ____No
As of May 10, 2001, there were issued and outstanding 3,658,689 shares of the
Registrant's common stock, no par value.
Capital Bank Corporation
CONTENTS
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Condensed consolidated statements of financial condition at March 31, 2001
(Unaudited) and December 31, 2000 1
Condensed consolidated statements of income for the three months ended
March 31, 2001 and 2000 (Unaudited) 2
Condensed consolidated statements of comprehensive income for the three
months ended March 31, 2001 and 2000 (Unaudited) 3
Condensed consolidated statements of cash flows for the three months ended
March 31, 2001 and 2000 (Unaudited) 4 - 5
Notes to consolidated financial statements 6 - 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8 - 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 2001 and December 31, 2000
March 31, December 31,
2001 2000
- -------------------------------------------------------------------------------------------------------------------
(In thousands) (Unaudited)
ASSETS
Cash and due from banks:
Interest earning $ 5,859 $ 16,724
Non-interest earning 12,398 10,952
Federal funds sold 557 750
Investment securities - available for sale, at fair value 70,895 61,947
Loans-net of unearned income and deferred fees 261,731 242,275
Allowance for loan losses (3,754) (3,463)
--------- ---------
Net loans 257,977 238,812
--------- ---------
Premises and equipment, net 5,434 5,149
Accrued interest receivable 2,331 2,346
Deposit premium and goodwill, net 4,488 4,615
Deferred tax assets 1,859 1,412
Other assets 1,011 913
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Total assets $ 362,809 $ 343,620
========= =========
LIABILITIES
Deposits:
Demand, non-interest bearing $ 26,628 $ 20,346
Savings and interest bearing demand deposits 75,242 68,701
Time deposits 187,138 190,047
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Total deposits 289,008 279,094
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Accrued interest payable 1,038 968
Repurchase agreements 8,694 9,804
Borrowings 25,000 15,000
Other liabilities 3,047 3,739
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Total liabilities 326,787 308,605
SHAREHOLDERS' EQUITY
Common stock, no par value; 20,000,000 shares
authorized; 3,658,689 shares issued and outstanding 34,806 34,806
Retained earnings (deficit) 823 (114)
Accumulated other comprehensive income 393 323
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Total shareholders' equity 36,022 35,015
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Total liabilities and shareholders' equity $ 362,809 $ 343,620
========= =========
See Notes to Condensed Consolidated Financial Statements
-1-
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2001 and 2000
2001 2000
- ------------------------------------------------------------------------------------------------------------------
(In thousands except per share data) (Unaudited)
Interest income:
Loans and loan fees $ 5,538 $ 3,666
Investment securities 1,179 765
Federal funds and other interest income 158 131
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Total interest income 6,875 4,562
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Interest expense:
Deposits 3,590 2,085
Borrowings and repurchase agreements 386 322
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Total interest expense 3,976 2,407
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Net interest income 2,899 2,155
Provision for loan losses 300 255
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Net interest income after provision for loan losses 2,599 1,900
Noninterest income:
Service charges and other fees 290 153
Net gain on sale of securities 50 --
Other noninterest income 456 224
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Total noninterest income 796 377
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Noninterest expenses:
Salaries and employee benefits 1,510 973
Occupancy 274 138
Data processing 152 93
Directors fees 55 60
Advertising 109 104
Furniture and equipment 184 90
Amortization of intangibles 141 54
Other expenses 389 365
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Total noninterest expenses 2,814 1,877
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Net income before income tax expense 581 400
Income tax expense (benefit) (356) --
------- -------
Net income $ 937 $ 400
======= =======
Earnings per share - basic and diluted $ 0.25 $ 0.11
======= =======
See Notes to Condensed Consolidated Financial Statements
-2-
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2001 and 2000
2001 2000
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(In thousands) (Unaudited)
Three month period ended March 31, 2001:
Net income before comprehensive items $ 937 $ 400
Reclassification of gains recognized in net income (50) --
Unrealized gains (losses) on securities available for sale
net of deferred tax effect 120 (240)
------- -------
Comprehensive income $ 1,007 $ 160
======= =======
See Notes to Condensed Consolidated Financial Statements
-3-
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2001 and 2000
2001 2000
- -----------------------------------------------------------------------------------------------------------
(In thousands) (Unaudited)
Cash Flows From Operating Activities
Net income $ 937 $ 400
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Amortization of deposit premium and goodwill 141 54
Depreciation 207 125
Gain on sale of equipment (1) --
Gain on sale of securities available for sale (50) --
Amortization of premium on securities, net (76) 10
Deferred income tax benefits (694) (202)
Provision for loan losses 300 255
Changes in assets and liabilities:
Accrued interest receivable 15 (151)
Other assets (98) (336)
Accrued interest payable and other liabilities (622) 204
-------- --------
Net cash provided by operating activities 59 359
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Cash Flows From Investing Activities
Loan originations, net of principal repayments (19,465) (16,149)
Additions to premises and equipment (518) (278)
Proceeds from sale of equipment 27 --
Purchase of Federal Home Loan Bank stock (250) --
Purchase of securities available for sale (26,715) (1,468)
Proceeds from maturities of securities available for sale 12,410 794
Proceeds from sale of securities available for sale 6,050 --
Capitalized purchase costs (14) --
-------- --------
Net cash used in investing activities (28,475) (17,101)
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Cash Flows From Financing Activities
Net increase in deposits 9,914 26,465
Net increase in repurchase agreements (1,110) 1,192
Net increase (decrease) in borrowings 10,000 (5,000)
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Net cash provided by financing activities $ 18,804 $ 22,657
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(continued)
See Notes to Condensed Consolidated Financial Statements
-4-
CAPITAL BANK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Three Months Ended March 31, 2001 and 2000
2001 2000
- ----------------------------------------------------------------------------------------------------------------
(In thousands) (Unaudited)
Net change in cash and cash equivalents $ (9,612) $ 5,915
Cash and cash equivalents:
Beginning 28,426 11,662
-------- --------
Ending $ 18,814 $ 17,577
======== ========
Supplemental Disclosure of Cash Flow Information
Transfers from loans to real estate acquired
through foreclosure $ -- $ 32
======== ========
Cash paid for:
Income taxes $ 815 $ 319
======== ========
Interest $ 3,906 $ 2,437
======== ========
See Notes to Condensed Consolidated Financial Statements
-5-
Notes to the Consolidated Financial Statements
1. Significant Accounting Policies and Interim Reporting
The accompanying unaudited consolidated financial statements include the
accounts of Capital Bank Corporation (the "Company") and it's wholly-owned
subsidiaries, Capital Bank (the "Bank") and Capital Bank Investment Services
("CBIS"). The interim financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements and therefore should be
read in conjunction with the audited financial statements and accompanying
footnotes in the Company's 2000 Annual Report on form 10-K. In the opinion of
management, all adjustments necessary for a fair presentation of the financial
position and results of operations for the periods presented have been included
and all significant intercompany transactions have been eliminated in
consolidation. The results of operations for the three month period ended March
31, 2001 are not necessarily indicative of the results of operations that may be
expected for the year ended December 31, 2001.
The accounting policies followed are as set forth in Note 1 of the Notes to
Financial Statements in the 2000 Capital Bank Corporation annual report.
2. Comprehensive Loss Income
Comprehensive income includes net income and all other changes to the Company's
equity, with the exception of transactions with shareholders ("other
comprehensive income"). The Company's only components of other comprehensive
income relate to realized and unrealized gains and losses on securities
available for sale, net of the applicable income tax effect. The Company's
comprehensive net income and information concerning the Company's other
comprehensive income items for the three month period ended March 31, 2001 and
2000 are as shown in the Condensed Consolidated Statements of Comprehensive
Income.
3. Earnings Per Share
The Bank is required to report both basic and diluted earnings per share
("EPS"). Basic EPS excludes dilution and is computed by dividing income
available to common shareholders by the weighted average number of common shares
outstanding for the period. For loss periods, diluted EPS is the same as basic
EPS due to the fact that including common stock equivalents computed as a result
of the 160,148 stock options outstanding in the calculation of diluted EPS would
not be dilutive. For periods where the Bank has positive earnings, diluted EPS
are presented due to the effect of those same options using the Treasury Stock
method. The following tables provide a computation and reconciliation of basic
and diluted EPS for the three month periods ended March 31, 2001 and 2000.
-6-
2001 2000
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(In thousands except number of shares) (Unaudited)
Three month periods ended March 31, 2001 and 2000:
Income available to stockholders - basic and diluted $ 937 $ 400
========== ==========
Shares used in the computation of earnings per share:
Weighted average number of shares outstanding - basic 3,732,840 3,709,005
Incremental shares from assumed exercise of stock
options 21,260 806
---------- ----------
Weighted average number of shares outstanding - diluted 3,754,100 3,709,811
========== ==========
An aggregate of approximately 375,395 options were not included in the diluted
calculation because the option exercise price exceeded the average fair market
value of the associated shares.
4. Income Taxes
Prior to the three month period ended March 31, 2001, the Corporation recorded
minimal income tax expenses. This was due primarily to the generation of
consolidated net operating losses during the start up phase and the
establishment of a valuation allowance against deferred tax assets until such
time as the Company demonstrated the ability to utilize those deferred tax
assets in the future. Since the Company has had eight successive quarters of
profitability since March, 1999, management determined during the three month
period ended March 31, 2001 that the Company will be able to utilize those
assets in the future. Accordingly, during the period ended March 31, 2001, the
remaining valuation allowances were reversed and all reserved deferred tax
assets were recorded on the consolidated financial statements of the Company,
resulting in a one time net tax benefit of $356,000. In the future, the Company
will be fully taxable.
5. New Accounting Pronouncements
In April 2000, the Financial Accounting Standards Board issued FASB
Interpretation No. 44 ("FIN 44") which clarifies the application of Accounting
Principles Board Opinion 25 for certain transactions. The interpretation
addresses many issues related to granting or modifying stock options including
changes in accounting for modifications of awards (increased life, reduction of
exercise price, etc.). It was effective July 1, 2000 but certain conclusions
cover specific events that occurred after either December 15, 1998 or January
12, 2000. The effects of applying the interpretation are to be recognized on a
prospective basis from July 1, 2000. FIN 44 is not expected to have a material
impact on the Company.
-7-
Item 2
Management's Discussion and Analysis
Of Financial Condition and Results of Operations
- ------------------------------------------------
The following discussion presents an overview of the unaudited financial
statements for the three month periods ended March 31, 2001 and 2000 for Capital
Bank Corporation and its wholly owned subsidiaries, Capital Bank and Capital
Bank Investment Services, Inc. This discussion and analysis is intended to
provide pertinent information concerning financial position, results of
operations, liquidity, and capital resources. It should be read in conjunction
with the unaudited financial statements and related footnotes contained in Part
I, Item 1 of this report.
Information set forth below contains various forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, which statements represent the Company's
judgment concerning the future and are subject to risks and uncertainties that
could cause the Company's actual operating results to differ materially. 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. The Company cautions that such forward-looking
statements are further qualified by important factors that could cause the
Company's actual operating results to differ materially from those in the
forward-looking statements, as well as the factors set forth in the Company's
periodic reports and other filings with the SEC.
Overview
Capital Bank Corporation is a financial holding company incorporated under the
laws of North Carolina on August 10, 1998. The Company's primary function is to
serve as the holding company for its wholly-owned subsidiaries, Capital Bank and
Capital Bank Investment Services, Inc. Capital Bank was incorporated under the
laws of the State of North Carolina on May 30, 1997, and commenced operations as
a state-chartered banking corporation on June 20, 1997. The Bank is not a member
of the Federal Reserve System and has no subsidiaries. At a special meeting of
shareholders held on March 26, 1999, the shareholders of Capital Bank approved
the reorganization of Capital Bank into Capital Bank Corporation. In the holding
company reorganization, the shareholders of Capital Bank each received a right
to one share of Company stock for each share of Capital Bank stock that they
owned.
Prior to April 14, 2000, the Bank operated primarily throughout the central part
of North Carolina with branch facilities located in Raleigh (1), Cary (2),
Sanford (3), and Siler City (1). In April, 2000, the Bank acquired 5 branches
from another area financial institution which was accounted for as a purchase
transaction. The transaction included branches in the eastern part of North
Carolina including Oxford (2), Warrenton (1), Seaboard (1), and Woodland (1). In
June, 2000, the Bank opened a new branch and moved its corporate headquarters to
an office on Glenwood Avenue in Raleigh, North Carolina. In January 2001, the
Bank opened an additional branch in Raleigh bringing the total to 3 branches in
Raleigh.
On March 1, 2001, Capital Bank Corporation announced that it had formed Capital
Bank Investment Services, Inc., an investment services subsidiary and agreed to
acquire an independent branch brokerage office located in Raleigh, North
Carolina.
-8-
CBIS will make available a full range of non-deposit investment services to
individuals and corporations, including the customers of the Bank. These
investment services will include full-service securities brokerage, asset
management, financial planning and retirement services, such as 401(k) plans,
all provided exclusively through a strategic alliance with Raymond James
Financial Services, Inc. ("Raymond James"). These services will be available in
the offices of Capital Bank through registered investment representatives.
As used in this report, the term "Company" refers to Capital Bank Corporation
and its subsidiaries, Capital Bank and Capital Bank Investment Services, Inc.,
after the holding company reorganization.
The Company has no operations other than those of its subsidiaries, Capital Bank
and Capital Bank Investment Services, Inc. The Bank is a full-service community
bank and the Investment Company is a full service brokerage firm. The Company's
profitability depends principally upon the net interest income, provision for
loan losses, non-interest income and non-interest expenses of the Bank and the
net commissions generated by CBIS.
Financial Condition
Total consolidated assets of the Company for the quarter ended March 31, 2001
were $362.8 million compared to $343.6 million at December 31, 2000, an increase
of $19.2 million, or 5.6%. On March 31, 2001, loans were $261.7 million, up
$19.5 million, or 8.0%, compared to December 31, 2000. Investment securities
were $70.9 million and federal funds sold were $557,000 at March 31, 2001.
During the three month period ended March 31, 2001, cash and cash equivalents,
including federal funds sold, decreased by $9.6 million due primarily to the
increase in loans, which is an outlay of cash, exceeding the increase in
deposits by $9.6 million. Earning assets represented 93% of total assets on
March 31, 2001. The allowance for loan losses on March 31, 2001 was $3.8 million
and represented approximately 1.43% of total loans. Management believes that the
amount of the allowance is adequate at this time.
Deposits on March 31, 2001 were $289.0 million, an increase of $9.9 million or
3.6% from December 31, 2000. In addition to the increase in total deposits,
there was a large shift in deposit mix as total Certificates of Deposit balances
declined and demand deposit and interest bearing demand deposit account balances
increased. During the three month period ended March 31, 2001, Certificates of
Deposit decreased by $2.9 million, or 1.53% from $190.0 million to $187.1
million. At the same time, non-interest bearing demand deposit accounts
increased $6.3 million, or 30.9%, from $20.3 million to $26.6 million and
savings and interest bearing demand deposit accounts increased $6.5 million, or
9.5%, from $68.7 million to $75.5 million. The overall change in deposit mix was
the result of a conscious effort on management's part to attract lower cost core
deposits such as money market and interest bearing checking accounts along with
an effort to reduce the overall rates paid on Certificates of Deposit while
still remaining price competitive. Borrowings increased from $15.0 million at
December 31, 2000 to $25.0 million at March 31, 2001, as the Company took
advantage of the low rates currently being offered by the Federal Home Loan Bank
and leveraged those additional borrowings into higher yielding investments.
Total consolidated shareholders' equity was $36.0 million at March 31, 2001, an
increase of $1.0 million from December 31, 2000, due primarily to net income.
-9-
Results of Operations
For the three month period ended March 31, 2001, the Company reported net income
of $937,000 or $.25 per share compared to $400,000 or $.11 per share for the
same period in 2000. Net interest income in the first quarter of 2001 was $2.9
million, up 34.5% compared to $2.2 million in the first quarter of 2000. The
increase was primarily due to increased loan and deposit balances as compared to
previous periods and the resulting net interest spread on those balances. The
Company's net interest margin (net interest income as a percentage of average
earning assets) was 3.51% for the three month period ended March 31, 2001,
compared to 3.82% in the same period in 2000.
The provision for loan losses was $300,000 for the three month period ended
March 31, 2001. This provision was used to build the allowance for loan losses
to a prudent level to support the Company's loan growth. At March 31, 2001, the
allowance for loan losses was 1.43% of total loans. Loans 90 days or more past
due totaled $404,000 and represented .15% of total loans on March 31, 2001.
Non-interest income for the three month period ended March 31, 2001, was
$796,000 , compared to $377,000 for the same period in 2000. The increase in
non-interest income is primarily attributable to increases in fees associated
with deposit accounts relative to the overall increase in deposits and a large
increase in fees associated with the mortgage loan origination department, which
had a large increase in activity as the result of the lower interest rate
environment. Mortgage loan origination fees increased from $167,000 in the first
quarter of 2000 to $375,000 in the first quarter of 2001.
Non-interest expense for the three month period ended March 31, 2001, was $2.8
million, compared to $1.9 million for the same period in 2000. Salaries and
employee benefits, representing the largest expense category during the period,
increased from $973,000 for the three month period in 2000 to $1.5 million for
the same period in 2001. These increases reflect an increase in the number of
personnel employed by the Company to maintain adequate staffing levels to meet
customer needs and keep pace with its expected growth. As of March 31, 2001, the
Company had 124 full-time equivalent employees compared to 77 for the same
period in 2000. Occupancy costs, the second highest component of non-interest
expenses, increased from $138,000 for the three month period in 2000 to $274,000
for the same period in 2001. This increase is primarily associated with the
acquisition of 5 branches and the opening of two new branches in Wake County.
Although management expects non-interest expense to increase on an absolute
basis as the Company continues its growth, these expenses as a percentage of
asset size and operating revenue are anticipated to decrease over time.
At March 31, 2001, the Company had net deferred tax assets of $1.9 million
resulting from timing differences associated with the deductibility of certain
expenses reflected on the financial statements. Due to prior net operating
losses, a valuation allowance was established against deferred tax assets until
such time as the Company demonstrated the ability to utilize those deferred tax
assets in the future. During the year ended December 31, 2000, the Company was
able to use deferred tax benefits and to record deferred tax assets only to the
extent those amounts offset current taxes. During the period ended March 31,
2001, the remaining valuation allowances were reversed and all reserved deferred
tax assets were recorded on the consolidated financial statements of the
Company, resulting in a one-time net tax benefit of $356,000. In the future, the
Company will be fully taxable.
-10-
Liquidity and Capital Resources
The Company's liquidity management involves planning to meet the Company's
anticipated funding needs at a reasonable cost. Liquidity management is guided
by policies formulated by the Company's senior management and the
Asset/Liability Management Committee of the Board of Directors. The Company had
$18.8 million in its most liquid assets, cash and cash equivalents at quarter
end. The Company's principal sources of funds are deposits, Federal Home Loan
Bank borrowings and capital. Core deposits (total deposits less certificates of
deposits in the amount of $100,000 or more), one of the most stable sources of
liquidity, together with equity capital funded 78% of total assets at March 31,
2001. In addition, the Company has the ability to take advantage of various
other funding programs available from the Federal Home Loan Bank of Atlanta.
Shareholders' equity was $36.0 million or $9.85 per share at March 31, 2001.
Management believes this level of shareholders' equity provides adequate capital
to support the Company's growth for at least the next 12 months and to maintain
a well-capitalized position. At March 31, 2001, Capital Bank had a Tier 1
capital ratio of 11.2%, a total risk-based capital ratio of 12.4%, and a
leverage ratio of 9.0%. These ratios exceed the federal regulatory minimum
requirements for a "well-capitalized" bank. Management's challenge is to use
this capital to implement a prudent growth strategy of branch and bank
acquisitions while growing the existing branch structure through quality service
and responsiveness to its customers' needs, although there is no assurance that
the Company will meet these objectives.
Effects of Inflation
Inflation can have a significant effect on the operating results of all
industries. However, management believes the inflationary factors are not as
critical to the banking industry as they are to other industries, due to the
high concentration of relatively short-duration monetary assets in the banking
industry. Inflation does, however, have some impact on the Company's growth,
earnings and total assets, and on its need to closely monitor capital levels.
Interest rates are significantly affected by inflation, but it is difficult to
assess the impact, since neither the timing nor the magnitude of the changes in
the various inflation indices coincides with changes in interest rates.
Inflation does impact the economic value of longer-term interest-bearing assets
and liabilities, but the Company attempts to limit its long-term assets and
liabilities.
Recent Accounting Developments
In April 2000, the Financial Accounting Standards Board issued FASB
Interpretation No. 44 ("FIN 44") which clarifies the application of Accounting
Principles Board Opinion 25 for certain transactions. The interpretation
addresses many issues related to granting or modifying stock options including
changes in accounting for modifications of awards (increased life, reduction of
exercise price, etc.). It was effective July 1, 2000 but certain conclusions
cover specific events that occurred after either December 15, 1998 or January
12, 2000. The effects of applying the interpretation are to be recognized on a
prospective basis from July 1, 2000. FIN 44 is not expected to have a material
impact on the Company.
-11-
Item 3 Quantitative and Qualitative Disclosures About Market Risk
- ------ ----------------------------------------------------------
The Company has not experienced any material change in its portfolio risk from
December 31, 2000 to March 31, 2001.
Part II - Other Information
Item 1 Legal Proceedings
- ------ -----------------
There are no material pending legal proceedings to which the Company is a party
or to which any of its property is subject. In addition, the Company is not
aware of any threatened litigation, unasserted claims or assessments that could
have a material adverse effect on the Company's business, operating results or
condition.
Item 2 Changes in Securities and Use of Proceeds
- ------ -----------------------------------------
None
Item 3 Defaults Upon Senior Securities
- ------ -------------------------------
None
Item 4 Submission of Matters to a Vote of Security Holders
- ------ ---------------------------------------------------
None
Item 5 Other Information
- ------ -----------------
None
Item 6 Exhibits and Reports on Form 8-K
- ------ --------------------------------
(a) Exhibits
--------
None
(b) Reports on Form 8-K
-------------------
No reports on form 8-K were filed during the period covered
by this report.
-12-
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAPITAL BANK CORPORATION
Date: May 10, 2001 By: /s/ Allen T. Nelson, Jr.
----------------------------------
Allen T. Nelson, Jr.,
Senior Vice President and CFO
-13-