Form 8-K Capital Bank Financial For: Jan 29

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/12/2026

1. CRWV
2. SMCI
3. GAMI
4. LITE
5. SPY
6. ONON
7. CAVA
8. CSCO
9. NTHI
10. ETOR

January 29, 2015 6:35 AM EST


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934


Date of report (Date of earliest event reported):��January�29, 2015



(Exact name of registrant as specified in its charter)
�
Delaware
001-35655
27-1454759
(State or other
(Commission
(IRS Employer
jurisdiction of
File Number)
Identification No.)
incorporation)
�
�
�
121 Alhambra Plaza, Suite 1601
Coral Gables, Florida 33134
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (305) 670-0200


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o������Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o������Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o������Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o������Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
















Item 2.02
Results of Operations And Financial Condition.

On January�29, 2015, Capital Bank Financial Corp. (the Company) issued a press release announcing its financial results for the fourth quarter of 2014 .��A copy of the press release is furnished as Exhibit 99.1 herewith and is incorporated herein by reference.

The Company will host a conference call for investors and security analysts to discuss the financial results at 10:00 a.m. Eastern Time on January�29, 2015.��By press release dated January 8, 2015, the public was invited to listen to the conference call by telephone or by live webcast accessed through the Investor Relations area of the Companys website at www.capitalbank-us.com.��A copy of the presentation slides to be presented at the conference call is furnished as Exhibit 99.2 herewith and incorporated herein by reference.
�
Item 7.01
Regulation FD Disclosure

The Company announced today that it intends to commence a consent solicitation (the Consent Solicitation) with respect to Contingent Value Rights (CVRs) issued under the Contingent Value Rights Agreement Dated October 1, 2012 (CVR Agreement) (CUSIP: 842CVR607). The CVRs were issued to former shareholders of Southern Community Financial Corporation (CUSIP: 842632101) when it was acquired by the Company in October 2012. The Consent Solicitation will be designed to permit the Company to redeem the CVRs early at a price less than the maximum payout amount of $1.30 per CVR. Further details regarding the Consent Solicitation will be announced upon the commencement of the Consent Solicitation. No solicitation of consents with respect to the CVRs is being made hereby and the Company may decide in its sole discretion not to commence, or to terminate, the Consent Solicitation at any time.

Some of the information in this Current Report contains forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as believes, expects, may, will, should, seeks, anticipates, intends, continues, could, estimates, plans, potential, predicts, or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Forward-looking statements include statements regarding the Companys intent with respect to the the commencement of the Consent Solicitation and the results thereof. Actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation: market and economic conditions, the Companys servicing and collection performance with respect to its loan portfolio, local economic conditions affecting retail and commercial real estate, the Companys geographic concentration in the southeastern region of the United States, government legislation and regulation, and risks related to the Companys technology and information systems. Given these uncertainties, shareholders are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no obligation to update any of these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements. The predictive and forward-looking statements in this Current Report may not come true.

Item 9.01
Financial Statements and Exhibits.

(d)�����������Exhibits.

Exhibit 99.1
Press Release of Capital Bank Financial Corp. dated January�29, 2015.

Exhibit 99.2
Presentation for conference call to be conducted by Capital Bank Financial Corp. on January�29, 2015.

����












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 hereunto duly authorized.

�
�
CAPITAL BANK FINANCIAL CORP.
(Registrant)
�
�
�
�
�
�
Date: January 29, 2015
By:
/s/ Christopher G. Marshall
�
�
Christopher G. Marshall
Chief Financial Officer

















































Exhibit Index

Exhibit 99.1
Press Release of Capital Bank Financial Corp. dated January 29, 2015.

Exhibit 99.2
Presentation for conference call to be conducted by Capital Bank Financial Corp. on January 29, 2015.



CBF Reports Fourth Quarter Results
Page 1
January 29, 2015

EXHIBIT 99.1
�
�
CONTACT:
Kenneth A. Posner
Chief of Strategic Planning and Investor Relations
Phone: (212) 399-4020


�

CAPITAL BANK FINANCIAL CORP. REPORTS FOURTH QUARTER NET INCOME
OF $13.8 MILLION OR $0.29 PER DILUTED SHARE, UP 26% YEAR OVER YEAR, AND FULL YEAR NET INCOME OF $50.9 MILLION OR $1.02 PER DILUTED SHARE, UP 40% FROM 2013
�
"
Record new loans of $457 million for the quarter and $1.6 billion for the year, up 27%;
"
Loan portfolio grew sequentially at a 15% annualized rate and 10% for the full year;
"
Legacy credit expenses down 19% year over year and 47% for the full year; and
"
ROA and Core ROA increased to 0.82% and 0.83%, respectively.

Coral Gables, Fla. (January�29, 2015) - Capital Bank Financial Corp. (Nasdaq: CBF) (the Company) today reported fourth quarter 2014 net income of $13.8 million, or $0.29 per diluted share, and core net income of $14.0 million, or $0.29 per diluted share.��Net income rose 13% year over year and net income per diluted share rose 26%.��Core net income rose 8% year over year and core net income per diluted share rose 16%.��Efficiency and Core Efficiency ratios declined to 70.8% and 70.5%, respectively. ROA and Core ROA increased to 0.82% and 0.83%, respectively.
Core adjustments for the fourth quarter of 2014 included $0.3 million of contingent value right (CVR) expense, $0.3 million of gains on sales of investment securities, and $0.1 million of non-cash equity compensation associated with original founder awards.
For the full year, net income was $50.9 million, or $1.02 per diluted share, and core net income was $53.0 million, or $1.06 per diluted share. Net income rose 31.1% and net income per diluted share rose 40% from the prior year. Core net income rose 15% and core net income per diluted share rose 23%.
Core adjustments for the year included $1.7 million of CVR expense, $0.6 million of gains on sales of investment securities, and $0.9 million of non-cash equity compensation associated with original founder awards.
Gene Taylor, Chairman and Chief Executive Officer of Capital Bank Financial Corp., commented, "This was a strong quarter and a great way to close out a year of enormous progress at Capital Bank. Strong loan growth, core deposit funding, excellent credit quality, and improving profitability will help us achieve our financial targets, which is key to our vision of building a high-performing financial institution."
Chris Marshall, Chief Financial Officer of Capital Bank Financial Corp., added, "In addition to record loan growth and profitability, we remain focused on expenses, which were down 10% for the full year, as we benefited from reduced legacy credit expenses and found ways to selectively reduce occupancy and other costs. We will remain vigilant in managing the cost to deliver the banks products and services."

- MORE -

CBF Reports Fourth Quarter Results
Page 2
January 29, 2015


Loan Portfolio and Composition

During the fourth quarter, the loan portfolio increased by $176.4 million to $5.0 billion, a 15% annualized growth rate.��New loans of $457.3 million were offset by resolutions totaling $54.1 million, including transfers to OREO of $4.4 million, and principal repayments of $226.8 million.

For the full year, new loans were $1.6 billion as compared to $1.3 billion, a 27% increase from the prior year, driving 10% growth in the loan portfolio in 2014.

The relative composition of the Companys loan portfolio at the end of the fourth and third quarters of 2014 and fourth quarter of 2013 was as follows:
�
�
Dec�31,
2014
�
Sep 30,
2014
�
Dec 31,
2013
Commercial real estate
�
23
%
�
25
%
�
27
%
C&I
�
42
%
�
41
%
�
41
%
Consumer
�
32
%
�
32
%
�
30
%
Other
�
3
%
�
2
%
�
2
%
Total
�
100
%
�
100
%
�
100
%

Deposits, Composition and Yields

During the fourth quarter, total deposits increased by $79.6 million to $5.3 billion. The sequential increase was mainly as a result of the Company's continued focus in growing lower cost checking accounts, which were up $121.7 million, or 5%, partially offset by some contraction in money market balances. The cost of deposits remained flat at 0.34% sequentially and year over year.��The cost of core deposits remained flat at 0.15% sequentially and year over year. Core deposits include all checking, savings and money market accounts and now represent 73% of total deposits.

The cost of deposits for the full year of 2014 was 0.34%, a decline of six basis points from 2013. The improvement was mainly due to planned shrinkage in high cost time deposits. The cost of core deposits remained flat at 0.15% from 2013.

Net Interest Income and Net Interest Margin

Net interest income remained consistent at $61.4 million from the third quarter of 2014 and declined $4.4 million year over year from $65.7 million. The net interest margin for the fourth quarter of 2014 was 4.05%, a decline of nine basis points sequentially and 47 basis points year over year.� The sequential and year over year net interest margin decline was mainly due to the lower yield on new loans as compared to the yields of the Company's legacy portfolio, partially offset by an increase in investment securities yields.

Net interest income declined $17.5 million for the full year of 2014 from $263.6 million in 2013. The net interest margin for the full year of 2014 was 4.21%, a decline of 19 basis points from 2013. The decline was mainly due to the lower yield on new loans as compared to the yields of the Company's legacy portfolio, partially offset by an increase in investment securities yields and planned shrinkage in high cost time deposits.

Non-Interest Income

Non-interest income increased $0.6 million sequentially to $10.6 million and declined $2.7 million year over year from $13.3 million.��The year over year decline was mainly driven by lower credit loss expectations, which resulted in an increase of $1.5 million in FDIC indemnification asset amortization, and the absence of a $1.0 million legal settlement recorded in the prior year.

Non-interest income declined $9.2 million for the full year of 2014 from $53.0 million in 2013. The decline was mainly driven by lower credit loss expectations, which resulted in an increase of $5.9 million in FDIC indemnification asset amortization, and the absence of $1.9 million in legal settlements and insurance recoveries recorded in the prior year.

- MORE -

CBF Reports Fourth Quarter Results
Page 3
January 29, 2015


Provision for Loan Losses and Credit Quality

The net reversal of provision for loan losses of $0.6 million recorded for the fourth quarter of 2014 included a $0.8 million provision for new and acquired non-impaired loans and $1.4 million in reversals of impairments due to improvements in cash flow estimates for certain acquired impaired loan pools.��The improvement in cash flow estimates mainly resulted from higher than anticipated payoffs. Net charge-offs for the fourth quarter of 2014 were $1.5 million.

At December�31, 2014, the allowance for loan losses was $50.2 million, of which $28.9 million related to acquired impaired loans and $21.3 million related to new and acquired non-impaired loans. The allowance for loan losses represents 1% of the Company's total $5.0 billion loan portfolio.

During the fourth quarter, non-performing loans declined sequentially by $41.6 million, or 24%, to $130.6 million.��Nonaccrual loans declined sequentially to $9.5 million, or to 0.26% of total non-purchased credit impaired loans from 0.32%. Acquired impaired loans greater than 90 days past due and still accruing declined sequentially by $40.5 million, or 25%, to $121.1 million.

New and acquired non-impaired loans now represent 73% of the Company's total loan portfolio as compared to 59% at December 31, 2013.

Non-Interest Expense

Non-interest expense declined $0.5 million from $51.4 million for the third quarter of 2014 and declined $5.3 million from $56.3 million for the fourth quarter of 2013.��The sequential decline was mainly due to lower legacy credit expenses reflecting the continued resolution of special assets, partially offset by increased salaries and employee benefits and professional fees. The year over year decline was mainly due to lower legacy credit expenses as discussed above, a decline in stock based compensation expense, mainly associated with original founder awards, and the reduction in occupancy costs as a result of the Company's continued focus on consolidating facilities.

Non-interest expense declined $27.4 million for the full year of 2014 from $236.2 million for 2013. The decline was mainly due to lower legacy credit expenses reflecting the continued resolution of special assets, the decline in professional fees and stock-based compensation expense, mainly associated with original founder awards, and a decline in other miscellaneous expenses. Partially offsetting the decline was an increase in salaries and employee benefits as a result of rising healthcare costs.

Income Tax Expense

Income tax expense was $7.8 million for the fourth quarter of 2014, an effective income tax rate of 36%, as compared to income tax expense of $8.1 million for the third quarter of 2014, an effective income tax rate of 38%. Income tax expense was $7.3 million for the fourth quarter of 2013, an effective income tax rate of 37%. The sequential and year over year decline in effective rate is mainly due to higher tax-exempt interest income during the fourth quarter of 2014.

Income tax expense for the full year of 2014 was $30.7 million, an effective income tax rate of 38%, as compared to income tax expense of $27.4 million for 2013, an effective income tax rate of 41%. The higher prior year effective rate is mainly due to the prior year impact of changes in certain statutory rates that were enacted into law during the third quarter of 2013.

Financial Position

Total assets increased by $141.1 million to $6.8 billion as of December�31, 2014, from $6.7 billion as of September 30, 2014.�During the quarter, the Companys loan portfolio increased by $176.4 million to $5.0 billion, a 15% annualized growth rate.� Deposits increased by $79.6 million to $5.3 billion, and FHLB borrowings increased by $70.0 million.��During the quarter, the Company repurchased 737,611 shares of common stock at an average price of $24.19 per share.� Tangible book value per share was $19.28 as of December�31, 2014, an increase of $0.28 and $0.73 over September 30, 2014 and December 31, 2013, respectively.

The Companys national bank subsidiary, Capital Bank N.A., has preliminary Tier 1, Tier 1 Risk-Based and Total Risk-Based capital ratios of 13.5%, 17.1% and 18.1%, respectively, as of December�31, 2014, under currently applicable regulations.

- MORE -

CBF Reports Fourth Quarter Results
Page 4
January 29, 2015


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 (719) 325-2429, and the confirmation pass code is 6011897. Please dial in 10 minutes prior to the beginning of the call. A telephonic replay of the conference call will be available through February 6, 2015, by dialing (719) 457-0820 and entering pass code 6011897. The live broadcast of the conference call will be available online at the Companys 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.



- MORE -

CBF Reports Fourth Quarter Results
Page 5
January 29, 2015


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 Companys performance over time and in comparison to the Companys 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 Companys 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 analyzes 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 national 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 N.A., a national banking association with $6.8 billion in total assets as of December�31, 2014, and 162 full-service banking offices throughout Florida, North and South Carolina, Tennessee and Virginia. To learn more about Capital Bank, N.A., please visit www.capitalbank-us.com.
�
























- MORE -

CBF Reports Fourth Quarter Results
Page 6
January 29, 2015

�CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited)
�
�
Three Months Ended
�
�
Dec�31,
2014
�
Sep 30,
2014
�
Jun 30,
2014
�
Mar 31,
2014
�
Dec 31,
2013
Interest and dividend income
�
$
67,750

�
$
67,643

�
$
66,846

�
$
68,543

�
$
71,981

Interest expense
�
6,399

�
6,218

�
6,015

�
6,090

�
6,258

Net Interest Income
�
61,351

�
61,425

�
60,831

�
62,453

�
65,723

Provision (reversal) for loan losses
�
(637
)
�
(1,332
)
�
1,404

�
(24
)
�
3,265

Net interest income after provision (reversal) for loan losses
�
61,988

�
62,757

�
59,427

�
62,477

�
62,458

Non-Interest Income
�
�
�
�

�
�

�
�

�
�

Service charges on deposit accounts
�
5,390

�
5,565

�
5,672

�
5,436

�
5,858

Debit card income
�
3,013

�
3,017

�
3,103

�
2,844

�
2,864

Fees on mortgage loans originated and sold
�
1,053

�
1,195

�
1,123

�
759

�
1,082

Investment advisory and trust fees
�
1,170

�
1,183

�
910

�
1,261

�
1,075

FDIC indemnification asset expense
�
(3,421
)
�
(3,881
)
�
(2,064
)
�
(2,165
)
�
(1,877
)
Legal settlement
�


�


�


�


�
1,000

Investment securities gains (losses), net
�
513

�
317

�
(28
)
�
174

�
164

Other income
�
2,876

�
2,561

�
3,171

�
3,060

�
3,105

Total non-interest income
�
10,594

�
9,957

�
11,887

�
11,369

�
13,271

Non-Interest Expense
�
�
�
�

�
�

�
�

�
�

Salaries and employee benefits
�
23,871

�
22,590

�
23,449

�
23,498

�
23,969

Stock-based compensation expense
�
451

�
443

�
1,020

�
728

�
1,127

Net occupancy and equipment expense
�
8,020

�
8,475

�
8,723

�
8,599

�
8,457

Computer services
�
3,413

�
3,332

�
3,389

�
3,253

�
3,093

Software expense
�
2,074

�
1,932

�
1,940

�
1,868

�
1,990

Telecommunication expense
�
1,347

�
1,406

�
1,628

�
1,608

�
1,532

OREO valuation expense
�
1,554

�
2,752

�
3,022

�
3,573

�
3,190

Net gains on sales of OREO
�
(419
)
�
(223
)
�
(3,192
)
�
(721
)
�
(278
)
Foreclosed asset related expense
�
619

�
845

�
991

�
1,459

�
1,046

Loan workout expense
�
1,352

�
911

�
1,117

�
1,177

�
1,682

Professional fees
�
2,116

�
1,532

�
2,038

�
2,004

�
2,409

Contingent value right expense
�
334

�
278

�
327

�
767

�
298

Regulatory assessments
�
1,705

�
1,637

�
1,648

�
1,629

�
1,647

Other expense
�
4,495

�
5,508

�
5,173

�
5,782

�
6,089

Total non-interest expense
�
50,932

�
51,418

�
51,273

�
55,224

�
56,251

Income before income taxes
�
21,650

�
21,296

�
20,041

�
18,622

�
19,478

Income tax expense
�
7,814

�
8,053

�
7,616

�
7,208

�
7,272

Net income
�
$
13,836

�
$
13,243

�
$
12,425

�
$
11,414

�
$
12,206

�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Earnings per share:
�
�
�
�
�
�
�
�
�
�
Basic
�
$
0.29

�
$
0.28

�
$
0.25

�
$
0.23

�
$
0.24

Diluted
�
$
0.29

�
$
0.27

�
$
0.25

�
$
0.22

�
$
0.23

�
�
�
�
�
�
�
�
�
�
�
Weighted average shares outstanding:
�
�
�
�
�
�
�
�
�
�
Basic
�
46,964

�
47,912

�
49,090

�
50,518

�
50,962

Diluted
�
48,243

�
49,069

�
50,261

�
51,932

�
52,227


- MORE -

CBF Reports Fourth Quarter Results
Page 7
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands)
(Unaudited)
�
Dec�31,
2014
�
Sep 30,
2014
�
Dec 31,
2013
Assets
�
�
�
�
�
Cash and due from banks
$
106,193

�
$
92,704

�
$
118,937

Interest-bearing deposits in other banks
81,942

�
66,706

�
45,504

Total cash and cash equivalents
188,135

�
159,410

�
164,441

Trading securities
2,410

�
2,312

�
6,348

Investment securities available-for-sale at fair value (amortized cost $554,488,
�
�
�
�
�
$582,623 and $688,717, respectively)
555,893

�
580,732

�
685,441

Investment securities held-to-maturity at amortized cost (fair value $443,379,
�
�
�
�
�
$457,712 and $459,693, respectively)
436,962

�
454,809

�
465,098

Loans held for sale
5,516

�
6,439

�
8,012

Loans, net of deferred loan costs and fees
4,994,703

�
4,817,332

�
4,544,017

Less: Allowance for loan losses
50,211

�
52,334

�
56,851

Loans, net
4,944,492

�
4,764,998

�
4,487,166

Other real estate owned
77,626

�
90,277

�
129,396

FDIC indemnification asset
16,762

�
21,025

�
33,610

Receivable from FDIC
3,661

�
3,491

�
7,624

Premises and equipment, net
173,176

�
174,941

�
179,855

Goodwill
134,522

�
134,522

�
131,987

Intangible assets, net
18,897

�
19,865

�
23,365

Deferred income tax asset, net
129,624

�
139,388

�
166,762

Other assets
143,734

�
138,090

�
128,456

Total Assets
$
6,831,410

�
$
6,690,299

�
$
6,617,561

Liabilities and Shareholders Equity
�
�
�

�
�

Liabilities
�
�
�

�
�

Deposits:
�
�
�

�
�

Non-interest bearing demand
$
1,054,128

�
$
1,006,556

�
$
923,993

Negotiable order of withdrawal
1,383,990

�
1,309,839

�
1,321,903

Money market
898,254

�
914,226

�
961,526

Savings
500,028

�
514,729

�
530,144

Time deposits
1,418,700

�
1,430,106

�
1,447,497

Total deposits
5,255,100

�
5,175,456

�
5,185,063

Federal Home Loan Bank advances
296,091

�
226,138

�
96,278

Short-term borrowings
23,407

�
23,823

�
24,850

Long-term borrowings
139,681

�
139,396

�
138,561

Accrued expenses and other liabilities
53,557

�
60,547

�
60,021

Total liabilities
5,767,836

�
5,625,360

�
5,504,773

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, 36,936
�
�
�
�
�
issued and 30,150 outstanding, 36,662 issued and 30,114 outstanding and 36,212 issued and 33,051 outstanding, respectively.
370

�
367

�
362

Common stock-Class B $0.01 par value: 200,000 shares authorized, 18,743
�
�
�
�
�
issued and 17,443 outstanding, 19,017 issued and 18,217 outstanding and 19,647 issued and 19,047 outstanding, respectively.
187

�
190

�
196

Additional paid in capital
1,081,628

�
1,081,177

�
1,082,235

Retained earnings
158,403

�
144,567

�
107,485

Accumulated other comprehensive loss
(3,824
)
�
(6,018
)
�
(7,528
)
Treasury stock, at cost, 8,086, 7,348 and 3,761 shares, respectively
(173,190
)
�
(155,344
)
�
(69,962
)
Total shareholders equity
1,063,574

�
1,064,939

�
1,112,788

Total Liabilities and Shareholders Equity
$
6,831,410

�
$
6,690,299

�
$
6,617,561

�

- MORE -

CBF Reports Fourth Quarter Results
Page 8
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
KEY METRICS
(Dollars in thousands)
(Unaudited)
�
Three Months Ended
�
Dec�31,
2014
�
Sep 30,
2014
�
Jun 30,
2014
�
Mar 31,
2014
�
Dec 31,
2013
Performance Ratios
�
�
�
�
�
�
�
�
�
Interest rate spread
3.92
%
�
4.01
%
�
4.12
%
�
4.28
%
�
4.39
%
Net interest margin
4.05
%
�
4.14
%
�
4.26
%
�
4.41
%
�
4.52
%
Return on average assets
0.82
%
�
0.80
%
�
0.76
%
�
0.70
%
�
0.74
%
Return on average shareholders' equity
5.21
%
�
4.95
%
�
4.58
%
�
4.09
%
�
4.39
%
Efficiency ratio
70.79
%
�
72.03
%
�
70.51
%
�
74.81
%
�
71.21
%
Average interest-earning assets to average interest-bearing liabilities
131.89
%
�
131.43
%
�
131.23
%
�
129.81
%
�
129.70
%
Average loans receivable to average deposits
93.94
%
�
92.32
%
�
89.10
%
�
88.18
%
�
85.88
%
Yield on interest-earning assets
4.47
%
�
4.56
%
�
4.67
%
�
4.83
%
�
4.95
%
Cost of interest-bearing liabilities
0.55
%
�
0.55
%
�
0.55
%
�
0.56
%
�
0.56
%
Asset and Credit Quality Ratios-Total Loans
�

�
�

�
�

�
�

�
�

Non-accrual loans
$
9,484

�
$
10,590

�
$
11,368

�
$
10,107

�
$
11,810

Acquired impaired loans > 90 days past due and still accruing
$
121,137

�
$
161,670

�
$
200,755

�
$
226,941

�
$
253,817

Nonperforming loans to loans receivable
2.61
%
�
3.57
%
�
4.49
%
�
5.21
%
�
5.84
%
Nonperforming assets to total assets
3.05
%
�
3.93
%
�
4.66
%
�
5.47
%
�
5.98
%
Covered loans to total gross loans
3.95
%
�
4.58
%
�
5.09
%
�
5.71
%
�
6.27
%
ALLL to nonperforming assets
24.09
%
�
19.92
%
�
17.93
%
�
15.52
%
�
14.38
%
ALLL to total gross loans
1.00
%
�
1.08
%
�
1.17
%
�
1.22
%
�
1.25
%
Annualized net charge-offs/average loans
0.12
%
�
0.14
%
�
0.15
%
�
0.11
%
�
0.08
%
Asset and Credit Quality Ratios-New Loans
�

�
�

�
�

�
�

�
�

Nonperforming new loans to total new loans receivable
0.16
%
�
0.22
%
�
0.21
%
�
0.24
%
�
0.34
%
New loans ALLL to total gross new loans
0.63
%
�
0.72
%
�
0.74
%
�
0.80
%
�
0.80
%
Asset and Credit Quality Ratios-Acquired Loans
�
�
�

�
�

�
�

�
�

Nonperforming acquired loans to total acquired loans receivable
7.28
%
�
9.11
%
�
10.25
%
�
10.67
%
�
11.16
%
Covered acquired loans to total gross acquired loans
11.47
%
�
11.84
%
�
11.95
%
�
11.98
%
�
12.34
%
Acquired loans ALLL to total gross acquired loans
1.71
%
�
1.67
%
�
1.76
%
�
1.68
%
�
1.69
%
Capital Ratios (Company)
�

�
�

�
�

�
�

�
�

Total average shareholders' equity to total average assets
15.72
%
�
16.14
%
�
16.64
%
�
17.01
%
�
16.85
%
Tangible common equity ratio (1)
13.63
%
�
13.93
%
�
14.19
%
�
14.82
%
�
14.82
%
Tier 1 leverage ratio (2)
14.28
%
�
14.40
%
�
14.61
%
�
14.94
%
�
14.95
%
Tier 1 risk-based capital ratio (2)
17.99
%
�
18.40
%
�
18.57
%
�
19.68
%
�
19.74
%
Total risk-based capital ratio (2)
19.05
%
�
19.52
%
�
19.77
%
�
20.92
%
�
21.00
%
Capital Ratios (Bank)
�

�
�

�
�

�
�

�
�

Tangible common equity ratio (1)
14.29
%
�
14.31
%
�
15.11
%
�
14.99
%
�
14.62
%
Tier 1 leverage ratio (2)
13.52
%
�
13.37
%
�
14.10
%
�
13.70
%
�
13.40
%
Tier 1 risk-based capital ratio (2)
17.10
%
�
17.08
%
�
18.00
%
�
18.10
%
�
17.70
%
Total risk-based capital ratio (2)
18.09
%
�
18.20
%
�
19.20
%
�
19.30
%
�
18.90
%

(1) See "Reconciliation of Non-GAAP Measures"
(2) December�31, 2014 regulatory capital ratios are preliminary

- MORE -

CBF Reports Fourth Quarter Results
Page 9
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
LOANS AND DEPOSITS
(Dollars in thousands)
(Unaudited)
�
Dec�31,
2014
�
Sep 30,
2014
�
Dec 31,
2013
Loans
�
�
�
�
�
Non-owner occupied commercial real estate
$
798,556

�
$
797,197

�
$
775,733

Other commercial construction and land
200,755

�
243,563

�
300,494

Multifamily commercial real estate
89,132

�
71,119

�
67,688

1-4 family residential construction and land
68,658

�
76,442

�
71,351

Total commercial real estate
1,157,101

�
1,188,321

�
1,215,266

Owner occupied commercial real estate
1,046,736

�
1,026,853

�
1,058,148

Commercial and industrial loans
1,073,791

�
959,641

�
803,736

Lease financing
2,005

�
2,175

�
2,676

Total commercial
2,122,532

�
1,988,669

�
1,864,560

1-4 family residential
925,698

�
913,219

�
804,322

Home equity loans
378,475

�
373,604

�
386,366

Other consumer loans
272,453

�
242,451

�
170,526

Total consumer
1,576,626

�
1,529,274

�
1,361,214

Other
143,960

�
117,507

�
110,989

Total loans
$
5,000,219

�
$
4,823,771

�
$
4,552,029

�
�
�
�
�
�
Deposits
�
�
�

�
�

Non-interest bearing demand
$
1,054,128

�
$
1,006,556

�
$
923,993

Negotiable order of withdrawal
1,383,990

�
1,309,839

�
1,321,903

Money market
898,254

�
914,226

�
961,526

Savings
500,028

�
514,729

�
530,144

Total core deposits
3,836,400

�
3,745,350

�
3,737,566

Time deposits
1,418,700

�
1,430,106

�
1,447,497

Total deposits
$
5,255,100

�
$
5,175,456

�
$
5,185,063

�



- MORE -

CBF Reports Fourth Quarter Results
Page 10
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
LEGACY CREDIT EXPENSES
(Dollars in thousands)
(Unaudited)
�
Three Months Ended
�
Dec�31,
2014
�
Sep 30, 2014
�
Jun 30,
2014
�
Mar 31,
2014
�
Dec. 31,
2013
Reversal of provision on legacy loans
$
(1,411
)
�
$
(4,205
)
�
$
(940
)
�
$
(2,488
)
�
$
(1,220
)
FDIC indemnification asset expense
3,421

�
3,881

�
2,064

�
2,165

�
1,877

OREO valuation expense
1,554

�
2,752

�
3,022

�
3,573

�
3,190

Net gains on sales of OREO
(419
)
�
(223
)
�
(3,192
)
�
(721
)
�
(278
)
Foreclosed asset related expense
619

�
845

�
991

�
1,459

�
1,046

Loan workout expense
1,352

�
911

�
1,117

�
1,177

�
1,682

Salaries and employee benefits
993

�
1,054

�
1,270

�
1,270

�
1,270

Total legacy credit expenses
$
6,109

�
$
5,015

�
$
4,332

�
$
6,435

�
$
7,567

�



- MORE -

CBF Reports Fourth Quarter Results
Page 11
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)

�
�
Three Months Ended�
�December 31, 2014
�
Three Months Ended�
�September 31, 2014
�
�
Average
Balances
�
Interest
�
Yield/Rate
�
Average
Balances
�
Interest
�
Yield/Rate
Interest earning assets
�
�
�
�
�
�
�
�
�
�
�
�
Loans (1)
�
$
4,929,599

�
$
62,053

�
4.99
%
�
$
4,762,260

�
$
62,095

�
5.17
%
Investment securities (1)
�
1,025,016

�
5,386

�
2.08
%
�
1,064,710

�
5,160

�
1.92
%
Interest-bearing deposits in other banks
�
43,532

�
24

�
0.22
%
�
38,857

�
19

�
0.19
%
Other earning assets (2)
�
47,601

�
659

�
5.49
%
�
45,774

�
604

�
5.24
%
Total interest earning assets
�
6,045,748

�
$
68,122

�
4.47
%
�
5,911,601

�
$
67,878

�
4.56
%
Non-interest earning assets
�
703,376

�
�
�
�
�
725,578

�
�
�
�
Total assets
�
$
6,749,124

�
�
�
�
�
$
6,637,179

�
�
�
�
Interest bearing liabilities
�
�
�
�
�
�
�
�
�
�
�
�
Time deposits
�
$
1,434,775

�
$
3,108

�
0.86
%
�
$
1,372,696

�
$
2,983

�
0.86
%
Money market
�
905,225

�
550

�
0.24
%
�
935,223

�
552

�
0.23
%
Negotiable order of withdrawal
�
1,351,295

�
591

�
0.17
%
�
1,313,693

�
537

�
0.16
%
Savings
�
508,979

�
279

�
0.22
%
�
525,854

�
289

�
0.22
%
Total interest bearing deposits
�
4,200,274

�
4,528

�
0.43
%
�
4,147,466

�
4,361

�
0.42
%
Short-term borrowings and FHLB advances
�
246,675

�
139

�
0.22
%
�
214,122

�
125

�
0.23
%
Long-term borrowings
�
136,876

�
1,732

�
5.02
%
�
136,353

�
1,732

�
5.04
%
Total interest bearing liabilities
�
4,583,825

�
$
6,399

�
0.55
%
�
4,497,941

�
$
6,218

�
0.55
%
Non-interest bearing demand
�
1,047,135

�
�
�
�
�
1,010,817

�
�
�
�
Other liabilities
�
56,883

�
�
�
�
�
57,430

�
�
�
�
Shareholders equity
�
1,061,281

�
�
�
�
�
1,070,991

�
�
�
�
Total liabilities and shareholders equity
�
$
6,749,124

�
�
�
�
�
$
6,637,179

�
�
�
�
Net interest income and spread
�
�
�
$
61,723

�
3.92
%
�
�
�
$
61,660

�
4.01
%
Net interest margin
�
�
�
�
�
4.05
%
�
�
�
�
�
4.14
%

(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks
�
















- MORE -

CBF Reports Fourth Quarter Results
Page 12
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)

�
�
Three Months Ended�
�December 31, 2014
�
Three Months Ended�
December 31, 2013
�
�
Average
Balances
�
Interest
�
Yield/Rate
�
Average
Balances
�
Interest
�
Yield/Rate
Interest earning assets
�
�
�
�
�
�
�
�
�
�
�
�
Loans (1)
�
$
4,929,599

�
$
62,053

�
4.99
%
�
$
4,505,159

�
$
66,735

�
5.88
%
Investment securities (1)
�
1,025,016

�
5,386

�
2.08
%
�
1,186,466

�
4,943

�
1.65
%
Interest-bearing deposits in other banks
�
43,532

�
24

�
0.22
%
�
57,953

�
33

�
0.23
%
Other earning assets (2)
�
47,601

�
659

�
5.49
%
�
40,866

�
543

�
5.27
%
Total interest earning assets
�
6,045,748

�
$
68,122

�
4.47
%
�
5,790,444

�
$
72,254

�
4.95
%
Non-interest earning assets
�
703,376

�
�
�
�
�
807,278

�
�
�
�
Total assets
�
$
6,749,124

�
�
�
�
�
$
6,597,722

�
�
�
�
Interest bearing liabilities
�
�
�
�
�
�
�
�
�
�
�
�
Time deposits
�
$
1,434,775

�
$
3,108

�
0.86
%
�
$
1,513,038

�
$
3,155

�
0.83
%
Money market
�
905,225

�
550

�
0.24
%
�
947,429

�
519

�
0.22
%
Negotiable order of withdrawal
�
1,351,295

�
591

�
0.17
%
�
1,288,723

�
550

�
0.17
%
Savings
�
508,979

�
279

�
0.22
%
�
531,930

�
286

�
0.21
%
Total interest bearing deposits
�
4,200,274

�
4,528

�
0.43
%
�
4,281,120

�
4,510

�
0.42
%
Short-term borrowings and FHLB advances
�
246,675

�
139

�
0.22
%
�
48,466

�
21

�
0.17
%
Long-term borrowings
�
136,876

�
1,732

�
5.02
%
�
134,813

�
1,726

�
5.08
%
Total interest bearing liabilities
�
4,583,825

�
$
6,399

�
0.55
%
�
4,464,399

�
$
6,257

�
0.56
%
Non-interest bearing demand
�
1,047,135

�
�
�
�
�
964,823

�
�
�
�
Other liabilities
�
56,883

�
�
�
�
�
56,624

�
�
�
�
Shareholders equity
�
1,061,281

�
�
�
�
�
1,111,876

�
�
�
�
Total liabilities and shareholders equity
�
$
6,749,124

�
�
�
�
�
$
6,597,722

�
�
�
�
Net interest income and spread
�
�
�
$
61,723

�
3.92
%
�
�
�
$
65,997

�
4.39
%
Net interest margin
�
�
�
�
�
4.05
%
�
�
�
�
�
4.52
%
�
(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks�






- MORE -

CBF Reports Fourth Quarter Results
Page 13
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
FULL YEAR AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
(Unaudited)

�
�
Year Ended�
�December 31, 2014
�
Year Ended�
�December 31, 2013
�
�
Average
Balances
�
Interest
�
Yield/Rate
�
Average
Balances
�
Interest
�
Yield/Rate
Interest earning assets
�
�
�
�
�
�
�
�
�
�
�
�
Loans (1)
�
$
4,708,076

�
$
249,718

�
5.30
%
�
$
4,574,397

�
$
274,577

�
6.00
%
Investment securities (1)
�
1,072,551

�
19,997

�
1.86
%
�
1,179,668

�
17,658

�
1.50
%
Interest-bearing deposits in other banks
�
47,986

�
105

�
0.22
%
�
215,894

�
543

�
0.25
%
Other earning assets (2)
�
44,227

�
2,423

�
5.48
%
�
39,060

�
2,027

�
5.19
%
Total interest earning assets
�
5,872,840

�
$
272,243

�
4.64
%
�
6,009,019

�
$
294,805

�
4.91
%
Non-interest earning assets
�
744,625

�
�
�
�
�
845,982

�
�
�
�
Total assets
�
$
6,617,465

�
�
�
�
�
$
6,855,001

�
�
�
�
Interest bearing liabilities
�
�
�
�
�
�
�
�
�
�
�
�
Time deposits
�
$
1,394,916

�
$
11,943

�
0.86
%
�
$
1,751,785

�
$
16,585

�
0.95
%
Money market
�
930,158

�
2,151

�
0.23
%
�
1,023,069

�
2,268

�
0.22
%
Negotiable order of withdrawal
�
1,327,452

�
2,222

�
0.17
%
�
1,272,065

�
2,125

�
0.17
%
Savings
�
524,705

�
1,135

�
0.22
%
�
516,941

�
1,075

�
0.21
%
Total interest bearing deposits
�
4,177,231

�
17,451

�
0.42
%
�
4,563,860

�
22,053

�
0.48
%
Short-term borrowings and FHLB advances
�
166,187

�
385

�
0.23
%
�
41,329

�
57

�
0.14
%
Long-term borrowings
�
136,099

�
6,886

�
5.06
%
�
147,185

�
8,072

�
5.48
%
Total interest bearing liabilities
�
4,479,517

�
$
24,722

�
0.55
%
�
4,752,374

�
$
30,182

�
0.64
%
Non-interest bearing demand
�
1,000,994

�
�
�
�
�
918,087

�
�
�
�
Other liabilities
�
54,041

�
�
�
�
�
52,147

�
�
�
�
Shareholders equity
�
1,082,913

�
�
�
�
�
1,132,393

�
�
�
�
Total liabilities and shareholders equity
�
$
6,617,465

�
�
�
�
�
$
6,855,001

�
�
�
�
Net interest income and spread
�
�
�
$
247,521

�
4.09
%
�
�
�
$
264,623

�
4.27
%
Net interest margin
�
�
�
�
�
4.21
%
�
�
�
�
�
4.40
%

(1) Presented on a fully tax equivalent basis
(2) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stocks
�



- MORE -

CBF Reports Fourth Quarter Results
Page 14
January 29, 2015

CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES
(Dollars in thousands)
(Unaudited)

CORE NET INCOME
�
Three Months Ended
�
�
December�31, 2014
�
September 30, 2014
�
December 31, 2013
Net Income
�
$
13,836

�
$
13,836

�
$
13,243

�
$
13,243

�
$
12,206

�
$
12,206

�
�
Pre-Tax
�
After-Tax
�
Pre-Tax
�
After-Tax
�
Pre-Tax
�
After-Tax
Adjustments
�
�

�
�

�
�

�
�

�
�

�
�

Non-interest income
�
�

�
�

�
�

�
�

�
�

�
�

Security gains*
�
(513
)
�
(313
)
�
(317
)
�
(194
)
�
(164
)
�
(100
)
Non-interest expense
�
�
�
�
�
�

�
�

�
�

�
�

Stock-based compensation expense*
�
239

�
146

�
242

�
148

�
940

�
575

Contingent value right expense
�
334

�
334

�
278

�
278

�
299

�
299

Tax effect of adjustments*
�
107

�
N/A

�
29

�
N/A

�
(301
)
�
N/A

Core Net Income
�
$
14,003

�
$
14,003

�
$
13,475

�
$
13,475

�
$
12,980

�
$
12,980

Average Assets
�
$6,749,124
�
�

�
$6,637,179
�
�

�
$6,597,722
�
�

ROA**
�
0.82
%
�
�

�
0.80
%
�
�

�
0.74
%
�
�

Core ROA***
�
0.83
%
�
�
�
0.81
%
�
�

�
0.79
%
�
�


* Tax effected at an income tax rate of 39%
** ROA: Annualized net income / Average assets
*** Core ROA: Annualized core net income / Average assets




















- MORE -

CBF Reports Fourth Quarter Results
Page 15
January 29, 2015



CAPITAL BANK FINANCIAL CORP.
RECONCILIATION OF NON-GAAP MEASURES (Continuation)
(Dollars in thousands)
(Unaudited)

CORE EFFICIENCY RATIO
�
Three Months Ended
�
�
Dec�31
2014
�
Sep 30
2014
�
Jun 30
2014
�
Mar 31
2014
�
Dec 31
2013
Net interest income
�
$
61,351

�
$
61,425

�
$
60,831

�
$
62,453

�
$
65,723

Reported non-interest income
�
10,594

�
9,957

�
11,887

�
11,369

�
13,271

Less: Securities gains (losses)
�
513

�
317

�
(28
)
�
174

�
164

Core non-interest income
�
$
10,081

�
$
9,640

�
$
11,915

�
$
11,195

�
$
13,107

�
�
�
�
�
�
�
�
�
�
�
Reported non-interest expense
�
$
50,932

�
$
51,418

�
$
51,273

�
$
55,224

�
$
56,251

Less: Stock-based compensation expense
�
239

�
242

�
531

�
533

�
942

Contingent value right expense
�
334

�
278

�
327

�
767

�
299

Core non-interest expense
�
$
50,359

�
$
50,898

�
$
50,415

�
$
53,924

�
$
55,010

Efficiency Ratio*
�
70.79
%
�
72.03
%
�
70.51
%
�
74.81
%
�
71.21
%
Core Efficiency Ratio**
�
70.50
%
�
71.62
%
�
69.30
%
�
73.22
%
�
69.78
%
��
* 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)
�

- MORE -

CBF Reports Fourth Quarter Results
Page 16
January 29, 2015


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,
2014
�
Sep 30,
2014
�
Jun 30,
2014
�
Mar 31,
2014
�
Dec 31,
2013
Total shareholders' equity
�
$
1,063,574

�
$
1,064,939

�
$
1,073,558

�
$
1,103,756

�
$
1,112,788

Less: goodwill, core deposits intangibles, net of taxes
�
(146,168
)
�
(146,671
)
�
(147,290
)
�
(148,045
)
�
(146,258
)
Tangible book value*
�
$
917,406

�
$
918,268

�
$
926,268

�
$
955,711

�
$
966,530

Common shares outstanding
�
47,593

�
48,331

�
49,150

�
51,129

�
52,098

Tangible book value per share
�
$
19.28

�
$
19.00

�
$
18.85

�
$
18.69

�
$
18.55


* 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,
2014
�
Sep 30,
2014
�
Jun 30,
2014
�
Mar 31,
2014
�
Dec 31,
2013
Total shareholders' equity
�
$
1,063,574

�
$
1,064,939

�
$
1,073,558

�
$
1,103,756

�
$
1,112,788

Less: goodwill, core deposits intangibles
�
(153,419
)
�
(154,387
)
�
(155,398
)
�
(156,633
)
�
(155,351
)
Tangible common equity
�
$
910,155

�
$
910,552

�
$
918,160

�
$
947,123

�
$
957,437

Total assets
�
$
6,831,410

�
$
6,690,299

�
$
6,624,006

�
$
6,548,624

�
$
6,617,561

Less: goodwill, core deposits intangibles
�
(153,419
)
�
(154,387
)
�
(155,398
)
�
(156,633
)
�
(155,351
)
Tangible assets
�
$
6,677,991

�
$
6,535,912

�
$
6,468,608

�
$
6,391,991

�
$
6,462,210

Tangible common equity ratio
�
13.63
%
�
13.93
%
�
14.19
%
�
14.82
%
�
14.82
%


- END -

2014 Fourth Quarter Earnings January 29, 2015

�
Safe Harbor Statement 2 1/29/2015 Forward-Looking Statements Information in this presentation 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 presentation 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 presentation. 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.

�
3 2014 Accomplishments � Growth: Generated record $457 mm new loans and 15% annualized portfolio growth in 4Q. For the year, new loans totaled $1.6 bn, up 27%, and portfolio grew 10% ; � Retail Funding: Grew non-interest balances 14% during the year � Credit Discipline: Reduced special assets portfolio by 40% and NPLs from 5.8% to 2.6%, and generated a new loan portfolio with excellent credit metrics � Efficiency: Reduced full-year expenses by 10%, reflecting declines in legacy credit expenses and targeted reductions in compensation, occupancy, and other costs � Profitability: Improved Core ROA from 0.79% to 0.83%, despite low interest rates � Capital Deployment: Returned $103 mm to shareholders through stock repurchase, bringing lifetime repurchases to 15% of shares outstanding 1/29/2015 See reconciliation of non-GAAP measures in appendix.

�
Consistent, Sustained Growth Story Emerging 4 1/29/2015 $ mms (1) Excludes effect of Southern Community acquisition. Annualized Growth: +7% -1% +16% +9% +15% 197 251 173 253 251 302 291 409 253 442 445 457 (270) (290) (292) (410) (340) (349) (414) (334) (259) (266) (343) (281) -500 -400 -300 -200 -100 0 100 200 300 400 500 600 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 New Loans Booked Payoffs / Amortization Net Balance Growth 1

�
Fourth Quarter Highlights 5 1/29/2015 See reconciliation of non-GAAP measures in appendix. � Record $457 mm of new loans � Loan portfolio grew 15% annualized q/q and is up 10% y/y � NIM compressed by 9 bps, roughly in line with expectations � Core efficiency ratio improved to 70.5% sequentially � Core ROA improved to 0.83%, up from 0.79% in 4Q13 � Tangible book value per share increased $0.28 to $19.28 ($ mm's except per share data, growth rates, and metrics) 4Q14 3Q14 4Q13 Net interest income 61.4 0% -7% Provision (reversal) (0.6) -54% -118% Core non-interest income 10.1 5% -23% Core non-interest expense 50.4 -1% -8% Core pretax income 21.7 1% 6% Core net income 14.0 4% 8% Per share $0.29 7% 16% Non-core adjustments (0.2) -33% -75% Net income 13.8 5% 13% Per share $0.29 7% 26% Key Metrics 4Q14 3Q14 4Q13 Net interest margin 4.05% 4.14% 4.52% Core fee ratio 14.1% 13.6% 16.6% Core efficiency rati 70.5% 71.6% 69.8% Core ROA 0.83% 0.81% 0.79% Core ROTCE 6.2% 5.9% 5.4% % change

�
Record $457 mm New Loan Production 6 1/29/2015 New Loans by Geography New Loans by Product $ mms $ mms 227 103 216 176 233 91 62 69 101 83 91 88 157 168 141 $409 $253 $442 $445 $457 4Q13 1Q14 2Q14 3Q14 4Q14 Commercial CRE Consumer / Indirect 90 69 152 159 86 198 122 189 162 196 121 62 101 124 175 $409 $253 $442 $445 $457 4Q13 1Q14 2Q14 3Q14 4Q14 Florida Carolinas Tennessee

�
924 1,001 1,000 1,006 1,054 1,322 1,327 1,320 1,310 1,384 1,492 1,482 1,482 1,429 1,398 3,738 3,810 3,802 3,745 3,836 4Q13 1Q14 2Q14 3Q14 4Q14 Noninterest demand NOW Savings & Money Market Y/Y Growth 3% -6% 5% 14%Demand Balances Driving Higher Core Deposits 7 1/29/2015 Cost of Deposits Core Deposit Balances $ mms 0.34% 0.34% 0.33% 0.34% 0.34% 0.14% 0.15% 0.14% 0.14% 0.15% 4Q13 1Q14 2Q14 3Q14 4Q14 Total Core

�
NIM Declines as Expected 8 1/29/2015 � The net interest margin declined by 9 bps in the quarter, in line with expectations � Variable rate loans made up 62% of new loan production in the quarter Purchase Accounting Impact on NIM Yields See reconciliation of non-GAAP measures in appendix. 4.52% 4.41% 4.26% 4.14% 4.05% 3.51% 3.53% 3.37% 3.46% 3.38% 4Q13 1Q14 2Q14 3Q14 4Q14 Net Interest Margin Contractual Net Interest Margin 5.88% 5.66% 5.40% 5.17% 4.99% 1.65% 1.71% 1.76% 1.92% 2.08% 4Q13 1Q14 2 4 3Q14 4Q14 Loans Investments

�
Core Non-interest Income Largely Stable 9 1/29/2015 � Non-interest income excluding FDIC indemnification expense was stable in 4Q Non-interest Income $ mms See reconciliation of non-GAAP measures in appendix. 13.3 11.4 11.9 10.0 10.6 1.9 2.2 2.1 3.9 3.4 15.2 13.6 14.0 13.9 14.0 4Q13 1Q14 2Q14 3Q14 4Q14 Total FDIC indemnification asset expense $ mm's 4Q13 3Q14 4Q14 Services charges on deposits 5.9 5.6 5.4 Debit card income 2.9 3.0 3.0 Fees on mortgage loans sold 1.1 1.2 1.1 Investment advisory and trust fees 1.1 1.2 1.2 Other 4.2 2.9 3.3 Non-interest Income ex FDIC expense 15.2 13.9 14.0 FDIC indemnification asset expense (1.9) (3.9) (3.4) Non-interest Income 13.3 10.0 10.6

�
10% Decline in Core Expenses During 2014 10 1/29/2015 Core Non-interest Expense $ mms See reconciliation of non-GAAP measures in appendix. Core Efficiency Ratio Non-interest Expense 51.1 49.6 49.6 47.5 48.6 56.3 55.2 51.3 51.4 50.9 4Q13 1Q14 2Q14 3Q14 4Q14 Non-core adjustments REO expense Core non-interest expense, before REO 4Q13 3Q14 4Q14 Salaries and employee benefits 24.0 22.6 23.9 Net occupancy and equipment 8.5 8.5 8.0 Professional fees 2.4 1.5 2.1 Other 16.2 14.9 14.7 Core non-interest expense, before REO 51.0 47.5 48.7 REO expense 4.0 3.4 1.8 Core non-interest expense 55.0 50.9 50.4 Non-core adjustments 1.2 0.5 0.5 Total non-interest expense 56.3 51.4 50.9 74.5% 70.5% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

�
Liquidity and Capital Ratios Remain Strong 11 1/29/2015 � Modified duration of investments was 4.1 years at December 31, 2014, vs 4.0 years at September 30 � Capital ratios remain strong with tier 1 leverage of 14.3%1 on a consolidated basis Tier 1 Leverage Ratio (1) Capital ratios are preliminary. Cash / Equivalents 16% Agency MBS 45% Agency CMBS 23% Agency CMO 11% Corporate/ SBA/Other 4% Muni 1% Liquidity 15.0% 14.9% 14.6% 14.4% 14.3% 4Q13 1Q14 2Q14 3Q14 4Q14

�
New Loan Portfolio Performing Strongly 12 1/29/2015 New Loan Portfolio Credit Metrics Past Dues & Nonaccruals � Provisions for new loans of $0.8 mm during 4Q were offset by $1.4 mm reversal of provision on the legacy portfolio 0.13% 0.21% 0.12% 0.14% 0.11% 0.34% 0.24% 0.21% 0.22% 0.16% 4Q13 1Q14 2Q14 3Q14 4Q14 Past Due Nonaccrual 4Q13 3Q14 4Q14 Criticized 0.27% 0.23% 0.32% Classified Performing 0.67% 0.53% 0.44% Classified Nonperforming 0.34% 0.22% 0.16% Total Criticized/Classified 1.28% 0.98% 0.92% Reserve ($ mm) 17.8 21.2 20.7 Reserve as % of New Loan Portfolio 0.80% 0.72% 0.63%

�
832 577 513 449 406 349 154 129 120 96 90 78 986 706 633 545 496 427 2012 2013 1Q14 2Q14 3Q14 4Q14 Loans REO -57% Special Assets Down 57% Since 2012 13 1/29/2015 Special Assets Nonperforming Loans / Total Loans $ mms Legacy Credit Expenses $ mms 7.7% 5.8% 5.2% 4.5% 3.6% 2.6% 2012 2013 1Q14 2Q14 3Q14 4Q14 4Q13 3Q14 4Q14 2013 2014 % Change Provision (reversal) on legacy loans (1.2) (4.2) (1.4) (1.9) (9.0) FDIC ind mnification asset expense 1.9 3.9 3.4 5.7 11.5 OREO valuation expense 3.2 2.8 1.6 22.0 10.9 (Gains) losses on sales of OREO (0.3) (0.2) (0.4) (3.5) (4.6) Foreclosed asset related expense 1.1 0.8 0.6 6.0 4.0 Loan workout expense 1.6 0.9 1.4 8.0 4.6 Salaries and employee benefits 1.3 1.1 1.0 5.2 4.7 Total legacy credit expense 7.6 5.1 6.1 41.5 22.0 -47%

�
14 2015 Outlook 1/29/2015 Loan Growth Similar to the companys performance in 2014 (+10%) Net Interest Margin Down 10-15 bps per quarter Non-interest Income By 4Q15, FDIC asset indemnification expense should decline to $500,000/quarter or below Provision Expense Not expecting reversals of impairment; provisions to reflect growth and credit quality of New Loans Non-interest Expense Estimated $3 mm restructuring charge in first quarter Special Assets / Legacy Credit Expense Continued 35-40% reduction in Special Assets balances and legacy credit expenses ROAA Targeting 1% ROAA at the end of 2015

�
15 Capital Bank Investment Highlights � Experienced management team with institutional track record ; � Positioned in Southeastern growth markets � Disciplined and sustainable growth story � Focused on deploying capital and improving profitability � Attractive valuation 1/29/2015

�
Appendix 16 1/29/2015

�
Reconciliation of Core Noninterest Income / Expense 17 1/29/2015 $ 000's 4Q14 3Q14 2Q14 1Q14 4Q13 Net interest income $61,351 $61,425 $60,831 $62,453 $65,723 Reported non-interest income 10,594 9,957 11,887 11,369 13,271 Less: Securities gains (losses), net 513 317 (28) 174 164 Core non-interest income $10,081 $9,640 $11,915 $11,195 $13,107 Reported non-interest expense $50,932 $51,418 $51,273 $55,224 $56,251 Less: Stock-based compensation expense 239 242 531 533 942 Contingent value right expense 334 278 327 767 299 Core non-interest expense $50,359 $50,898 $50,415 $53,924 $55,010 Core Fee Ratio* 14.1% 13.6% 16.4% 15.2% 16.6% Efficiency Ratio** 70.8% 72.0% 70.5% 74.8% 71.2% Core Efficiency Ratio*** 70.5% 71.6% 69.3% 73.2% 69.8% * Core Fee Ratio: Core non-interest income / (Net interest income + Core non-interest income) ** Efficiency Ratio: Non-interest expense / (Net interest income + Non-interest income) ***Core Efficiency Ratio: Core non-interest expense / (Net interest income + Core non-interest income)

�
Reconciliation of Core Net Income 18 1/29/2015 $ 000's Quarter Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended Ended 4Q14 4Q14 3Q14 3Q14 4Q13 4Q13 $13,836 $13,836 $13,243 $13,243 $12,206 $12,206 Pre-Tax After-tax Pre-Tax After-tax Pre-Tax After-tax Non-Interest Income Security gains* (513) (313) (317) (194) (164) (100) Non-Interest Expense 239 146 242 148 940 575 334 334 278 278 299 299 . Tax effect of adjustments* 107 NA 29 N/A (301) NA 14,003 14,003 13,475 13,475 $12,980 $12,980 Average Assets $6,749,124 $6,637,179 $6,597,722 Tangible Common Equity $910,155 $910,552 $957,436 ** ROA 0.82% 0.80% 0.74% *** Core ROA 0.83% 0.81% 0.79% **** Core ROTCE 6.2% 5.9% 5.4% * Tax effected at an income tax rate of 39% ** ROA: Annualized net income / average assets *** Core ROA: Annualized core net income / average assets **** Core ROTCE: Annualized core net income / tangible common equity Net income Adjustments Core Net Income Stock-based compensation* Contingent Value Right expense

�
Tangible Book Value 19 1/29/2015 (In thousands, except per share data) December 31, 2014 Total common shareholders' equity $1,063,574 Intangib es, net of taxes 146,168 Tangible book value* $917,406 Common shares outstanding 47,593 Tangible book value per share $19.28 * Tangible book value is equal to book value less goodwill and core deposit intangibles, net of related deferred tax liabilities.

�
Contractual Net Interest Margin 20 1/29/2015 (1) Excludes purchase accounting adjustments $ 000s Average Earning Assets Net Interest Income Net Interest Margin December 31, 2014 Reported 6,045,748 61,723 4.05% Purchase accounting impact (79,632) 10,295 0.67% Contractual Net Interest Margin (1) 3.38% September 30, 2014 Reported 5,911,601 61,660 4.14% Purchase accounting impact (91,982) 10,292 0.68% Contractual Net Interest Margin (1) 3.46% June 30, 2014 Reported 5,756,466 61,077 4.26% Purchase accounting impact (101,062) 12,977 0.89% Contractual Net Interest Margin (1) 3.37% March 31, 2014 Reported 5,774,135 62,721 4.41% Purchase accounting impact (117,732) 12,762 0.88% Contractual Net Interest Margin (1) 3.53% December 31, 2013 Reported 5,790,444 65,997 4.52% Purchase accounting impact (134,367) 15,094 1.01% Contractual Net Interest Margin (1) 3.51%

�

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings