Capital Bank Financial

Last updated
Capital Bank Financial
Industry Bank holding company
FoundedNovember 30, 2009 (2009-11-30)
DefunctDecember 2017;7 years ago (2017-12)
FateAcquired by First Horizon National Corporation
Headquarters
Charlotte, North Carolina
,
United States
Number of locations
193 (2017)
Area served
 Southeastern United States
Key people
Gene Taylor (Chief executive)
Chris Marshall (CFO)
Total assets $10 billion (2017)

Capital Bank Financial Corporation was a bank holding company headquartered in Charlotte, North Carolina, [1] with $10 billion in assets as of first quarter 2017 and 193 branches. [2] Former Bank of America vice chairman Gene Taylor was chief executive, former Bank of America executive and Fifth Third Bank CFO, Chris Marshall was CFO and former Bank of America executive, R. Bruce Singletary was Chief Risk Officer. Former Morgan Stanley specialty finance research analyst, Kenneth Posner, managed corporate strategy and investor relations. North American Financial Holdings (NAFH) original purpose was to take over banks that had difficulties due to the financial crisis of 2007–2010. The company's main interest was banks in the Carolinas and Florida, but in 2011, NAFH moved into Tennessee and Virginia. Despite buying seven distressed, money losing banks, NAFH's Capital Bank was consistently profitable during the duration of its existence and consistently posted improved returns for each of its five years of operations. Capital Bank completed a successful IPO in September 2012, and used to trade on the NASDAQ under the ticker CBF until its acquisition by First Horizon National Corporation in December 2017.

Contents

History

North American Financial Holdings

In December 2009, NAFH raised $900 million from such sources as private equity firms Crestview Partners, Oak Hill Advisors and Falfurrias Capital Partners. In March 2010 the OCC granted NAFH a national bank charter, and the search began for banks to acquire. [3]

On June 29, 2010, Naples, Florida–based TIB Financial Corp., parent of TIB Bank and Naples Capital Advisors, announced that NAFH had agreed to invest $175 million in the company. Over the next 18 months, NAFH would have the right to invest $175 million more. The deal was completed in third quarter 2010. [4] [5]

As of July 16, 2010, NAFH owned MetroBank of Dade County, Florida; Turnberry Bank of Aventura, Florida; and First National Bank of the South in Spartanburg, South Carolina. These four banks, after approval of the TIB deal, give NAFH $3.1 billion in assets, [3] and 10 branches in the Miami, Florida area and 13 in South Carolina, plus 28 more branches in southwest Florida with the completion of the TIB deal. [6] NAFH did not pay for the three banks it already owns, but instead divided loan losses with the Federal Deposit Insurance Corporation.

Hugh McColl, co-founder of Falfurrias and former Bank of America CEO, predicted NAFH would have $20 billion in assets in five to seven years. [3]

As of March 31, 2010, MetroBank had $442.3 million in assets with $391.3 million in deposits. Turnberry Bank had $263.9 million in assets with $196.9 million in deposits. First National had $682.0 million in assets and deposits totalling $610.1 million. [6]

Capital Bank

Capital Bank's headquarters in Raleigh Capital Bank Plaza.jpg
Capital Bank's headquarters in Raleigh

On December 16, 2010, shareholders of Raleigh, North Carolina–based Capital Bank approved selling a majority interest to NAFH, which would buy newly issued stock rather than stock from existing shareholders. [7] Capital Bank began in 1997 as the Triangle's first new bank in eight years, after raising $26 million, the most for a new bank in the state's history. [8] By 2005, after expansion and buying other banks, Capital had $915 million in assets, [9] and by 2010, assets had reached $1.7 billion. [10] The Late-2000s recession hurt Capital, and regulators expected the bank to act. At one time, selling new stock was considered. Finally, Capital chose to accept help from NAFH. [11] The deal originally depended on NAFH being able to get a 50 percent discount on preferred stock and warrants held by the U.S. Treasury as a result of the federal stimulus. [7] However, in a January 18, 2011 interview, Capital CEO Grant Yarber said the federal government would get all its money back. [12]

On January 28, 2011, NAFH completed its $181 million deal for 85 percent of Capital. NAFH CEO Gene Taylor became CEO of Capital, replacing Yarber, whose new title was market president for North Carolina. [13]

All NAFH-owned banks continued to operate separately[ citation needed ] but the company announced its intention to re-brand the banks as Capital Bank. [14] Capital had 32 branches before the deal, but after adding the four other NAFH banks, the total was 84. Capital kept its Raleigh headquarters. [12] When the deal was closed, North American's banks had more than $5 billion in assets, placing them among the nations top 125 banks.

Late in April 2011, NAFH applied to the Comptroller of the Currency for a merger of all of the banks into NAFH National Bank, a nationally chartered bank which operates as Capital Bank, National Association. The Capital Bank headquarters then relocated from Raleigh's Capital Bank Plaza, where it moved in 2006, to Miami, Florida. Raleigh would still have such operations as technology and loan processing at what CFO Christopher Marshall described as the "working headquarters". The headquarters change put Capital in the Federal Reserve Bank's Atlanta, Georgia territory, though this made the merger easier because as a Florida-based company, NAFH was already under Atlanta's jurisdiction. A Raleigh headquarters would have put the bank under Richmond, Virginia, which would have required the same changes as a move. [15] [16]

On May 5, 2011, NAFH announced a $217 million deal for 90 percent of Greeneville, Tennessee–based Green Bankshares Inc., with 65 GreenBank branches and $2.5 billion in assets. GreenBank CEO Steve Rownd would be Tennessee market president. [14] With the completion of this transaction in the third quarter, NAFH had $7.1 billion in assets (putting the company in the nation's top 100 banks), $5.4 billion in deposits, and 146 branches in five states. [17] [14] NAFH also bought the remainder of TIB and Capital. [17]

In June 2011, NAFH filed with the SEC to raise up to $300 million in an initial public offering. Because the market was not doing well, NAFH postponed the IPO until 2012, after the holding company had changed its name to Capital Bank Financial Corp. [18]

In a news release dated March 27, 2012, Capital Bank Financial Corp. said it agreed to buy Southern Community Financial Corp. of Winston-Salem, North Carolina, whose Southern Community Bank and Trust had $1.5 billion in assets and 22 branches, for $2.88 a share. Southern Community, started in 1996, was Winston-Salem's third-largest bank by deposits. The completion of the deal was expected to give Capital Bank Financial $8.1 billion in assets and 165 branches. [19]

On October 26, 2016, Capital Bank completed its acquisition of CommunityOne Bank, with $2.4 billion in assets and 45 branches and based in Charlotte, North Carolina, [20] in a deal worth $350 million. [21]

On December 1, 2017, Memphis, Tennessee–based First Horizon National Corporation completed its $2.2 billion purchase of Capital Bank. The Capital Bank name continued to be used outside Tennessee until October 2019. [22] Former Capital Bank chief Executive Gene Taylor was added to the First Horizon board of directors as vice chair in addition to receiving over $7 million in change-of-control compensation, while Capital Bank CFO Chris Marshall and Capital Bank CRO R. Bruce Singletary received $4.89 million and $3.34 million respectively. Posner received $2.81 million. [23]

Capital Bank announced in October 2018 that it would lease two floors of the ten-story One Glenwood in Raleigh. The lease included a sign on the building. [24]

On October 25, 2019, Capital Bank and First Tennessee Bank were unified and rebranded as First Horizon Bank. [25] [26]

Related Research Articles

<span class="mw-page-title-main">SunTrust Banks</span> Former American bank

SunTrust Banks, Inc. was an American bank holding company with SunTrust Bank as its largest subsidiary and assets of US$199 billion as of March 31, 2018. The bank's most direct corporate parent was established in 1891 in Atlanta, where it was headquartered.

<span class="mw-page-title-main">Truist Financial</span> Banking company in the U.S.

Truist Financial Corporation is an American bank holding company headquartered in Charlotte, North Carolina. The company was formed in December 2019 as the result of the merger of BB&T and SunTrust Banks. Its bank operates 2,781 branches in 15 states and Washington, D.C., offering consumer and commercial banking, securities brokerage, asset management, mortgage, and insurance products and services. It is on the list of largest banks in the United States by assets; as of August 2023, it is the ninth-largest bank, with $514 billion in assets.

<span class="mw-page-title-main">First Horizon Bank</span> American financial services company

First Horizon Corporation, formerly First Tennessee Bank, is a financial services company, founded in 1864, and based in Memphis, Tennessee. Through its banking subsidiary First Horizon Bank, it provides financial services through locations in 12 states across the Southeast, a region in which it is the fourth largest regional bank.

<span class="mw-page-title-main">First Union</span> Defunct banking company

First Union Corporation was a bank holding company that provided commercial and retail banking services in eleven states in the eastern U.S. First Union also provided various other financial services, including mortgage banking, credit card, investment banking, investment advisory, home equity lending, asset-based lending, leasing, insurance, international and securities brokerage services and private equity through First Union Capital Partners, and through other subsidiaries.

Yadkin Financial Corporation was a bank holding company and the parent of Yadkin Bank, a defunct regional bank with $7.3 billion in assets and 110 branches in North and South Carolina, before the 2017 purchase by FNB Corporation of Pittsburgh. The bank was headquartered in Elkin, North Carolina.

<span class="mw-page-title-main">First Citizens BancShares</span> American financial services company

First Citizens Bancshares, Inc. is a bank holding company based in Raleigh, North Carolina and one of the largest banks in the United States. Its primary subsidiary is First Citizens Bank, which operates over 500 branches in 23 states. A second subsidiary is Silicon Valley Bank, which operates 39 offices in 15 states.

FNB Corporation is a diversified financial services corporation based in Pittsburgh, Pennsylvania, and the holding company for its largest subsidiary, First National Bank. As of July 17, 2024, FNB has total assets of nearly $48 billion. FNB's market coverage spans several major metropolitan areas, including Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad in North Carolina; and Charleston, South Carolina, with approximately 350 offices. The company has approximately 4,200 employees.

<span class="mw-page-title-main">First Bancorp</span> American bank based in North Carolina

First Bancorp is an American bank holding company headquartered in Southern Pines, North Carolina, that operates as First Bank in North Carolina and South Carolina.

<span class="mw-page-title-main">Wachovia</span> Defunct banking company

Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo and Company in 2008, Wachovia was the fourth-largest bank holding company in the United States, based on total assets. Wachovia provided a broad range of banking, asset management, wealth management, and corporate and investment banking products and services. At its height, it was one of the largest providers of financial services in the United States, operating financial centers in 21 states and Washington, D.C., with locations from Connecticut to Florida and west to California. Wachovia provided global services through more than 40 offices around the world.

<span class="mw-page-title-main">NewBridge Bank</span> Defunct American bank

NewBridge Bank was a banking company based in Greensboro, North Carolina, with locations in North Carolina and Virginia. It no longer operates under that name. The company formed from the merger of Lexington State Bank and FNB Southeast in November 2007. NewBridge Bank was the banking subsidiary of NewBridge Bancorp. NewBridge Bank had 44 branches, total assets of about $2.7 billion and total deposits of about $2 billion. Its branches were mainly centered on the North Carolina regions of the Piedmont Triad and the Lower Cape Fear.

<span class="mw-page-title-main">United Community Bank</span> Bank holding company

United Community Banks, Inc. is an American bank. United is one of the largest full-service financial institutions in the Southeast, with $27.3 billion in assets, and 203 offices in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee.

First Charter Bank was an American bank headquartered in Charlotte, North Carolina, United States. From its 1888 founding as Concord National Bank until its 2001 move to Charlotte, the bank was headquartered in Concord, North Carolina and was a subsidiary of First Charter Corporation. The bank became part of Fifth Third Bank in 2008.

National Bank of Commerce was an American bank headquartered in Memphis, Tennessee, until it was taken over by SunTrust Banks in 2005.

United Carolina Bank (UCB) was a bank headquartered in Whiteville, North Carolina. It was formed in 1980 by the merger of four banks, including Waccamaw Bank of Whiteville. BB&T (now Truist Financial) acquired UCB in 1997.

Southern National Bank was a bank headquartered first in Lumberton, North Carolina and then in Winston-Salem, North Carolina. It joined with BB&T in 1995.

BNC Bank was a bank based in High Point, North Carolina, United States. In 2014 its parent company BNC Bancorp had $4.05 billion in assets, 38 branches in North Carolina and 13 in South Carolina. Its latest acquisition gave BNC $6.8 billion in assets and 87 branches, 48 in North Carolina, 29 in South Carolina nine in Virginia, and one in Haiti.

<span class="mw-page-title-main">First Community Bancshares</span> American bank holding company

First Community Bancshares, Inc. is a $2.43 billion bank holding company and the parent company of First Community Bank of Bluefield, Virginia, in the United States. As of 2012 First Community Bank had 45 locations in Virginia, West Virginia, and North Carolina, and two locations operating as Peoples Community Bank in Tennessee. As of April 21, 2023, First Community had $3.6 billion in assets.

Park Sterling Bank, was a bank based in Charlotte, North Carolina. It had $3.3 billion in assets and branches in North and South Carolina, Virginia and Georgia. The parent company was Park Sterling Corp.. A merger with South State Bank was completed November 30, 2017.

<span class="mw-page-title-main">HomeTrust Bancshares</span> North Carolina-based bank holding company

HomeTrust Bancshares Inc. is an Asheville, North Carolina–based bank holding company with $4.3 billion in assets and 33 branches in North and South Carolina, Georgia and Tennessee. It is the parent of seven community banks—HomeTrust Bank, Tryon Federal Bank, Shelby Savings Bank, Home Savings Bank, Industrial Federal Bank, Cherryville Federal Bank and Rutherford County Bank.

<span class="mw-page-title-main">SouthState Bank</span> American bank

SouthState Bank, based in Winter Haven, Florida, is an American bank based in Florida and a subsidiary of SouthState Corporation, a bank holding company. As of December 31, 2018, the company had 168 branches in South Carolina, North Carolina, Georgia, Florida, Alabama and Virginia.

References

  1. ↑ "About Capital Bank". Archived from the original on 2014-04-29. Retrieved 2014-04-28.
  2. ↑ Richard Craver (4 May 2017). "Capital Bank agrees to be sold for $2.2 billion to First Horizon". Winston-Salem Journal . Retrieved 4 May 2017.
  3. 1 2 3 Rothacker, Rick (2010-07-23). "New firm takes over 3 banks in a weekend". The Charlotte Observer . Retrieved 2010-07-27.[ permanent dead link ]
  4. ↑ "TIB Financial Corp. Announces Federal Reserve Approval of North American Financial Holdings, Inc. Investment". NBC News. Globe Newswire. 2010-09-17. Retrieved 2012-05-03.
  5. ↑ "TIB Financial Corp. Announces Closing of $175 Million Investment From North American Financial Holdings, Inc". NBC News. Globe Newswire. 2010-10-01. Retrieved 2012-05-03.
  6. 1 2 "North American Financial Holdings, Inc. Acquires Three Failed Banks from the FDIC". PRNewswire. 2010-07-16. Retrieved 2010-07-27.[ permanent dead link ]
  7. 1 2 Ranii, David (2010-12-16). "Capital Bank shareholders approve deal". News & Observer . Archived from the original on 2010-12-19. Retrieved 2010-12-16.
  8. ↑ Joel B. Obermayer, "Capital Bank lives up to name," News & Observer June 24, 1997.
  9. ↑ Frank Norton, "Bank plans to move downtown," News & Observer, November 2, 2005.
  10. ↑ "Capital Bank Announces Financial Results for First Quarter of 2010". PRNewsire. 2010-04-27. Retrieved 2011-02-09.
  11. ↑ David Ranii, "Capital Bank merger outlined," News & Observer, November 6, 2010.
  12. 1 2 Ranii, David (2011-01-19). "Capital Bank to repay bailout". News & Observer . Archived from the original on 2011-01-23. Retrieved 2011-01-24.
  13. ↑ Ranii, David (2011-02-01). "Capital Bank reports loss". News & Observer . Archived from the original on 2012-10-01. Retrieved 2011-02-05.
  14. 1 2 3 Rothacker, Rick (2011-05-06). "N.C.-based North American plans to add a Tennessee bank". The Charlotte Observer . Archived from the original on 2012-10-02. Retrieved 2011-05-06.
  15. ↑ Ranii, David (2011-04-30). "Capital Bank merger approved by regulators". News & Observer . Archived from the original on 2011-05-05. Retrieved 2011-05-21.
  16. ↑ Lee Weisbecker (29 April 2011). "Capital Bank headquarters going to Miami". Triangle Business Journal . Retrieved 28 April 2012.
  17. 1 2 Brian Bandell (8 September 2011). "North American Financial gets control of Green Bank". South Florida Business Journal . Retrieved 28 April 2012.
  18. ↑ Adam O'Daniel (26 April 2012). "Capital Bank files new IPO documents, will issue shares". Charlotte Business Journal . Retrieved 28 April 2012.
  19. ↑ Kirsten Valle Pittman (27 March 2012). "Capital Bank buys Winston-Salem's Southern Community Bank and Trust". The Charlotte Observer . Archived from the original on 18 January 2013. Retrieved 28 April 2012.
  20. ↑ Hilary Burns (26 October 2016). "Capital Bank closes acquisition of CommunityOne". Charlotte Business Journal. Retrieved 3 November 2016.
  21. ↑ Deon Roberts (23 November 2015). "Charlotte's CommunityOne Bancorp to be acquired by Florida bank". The Charlotte Observer. Retrieved 3 November 2016.
  22. ↑ Richard Craver (5 December 2017). "The Briefcase: Mattress Warehouse coming to Clemmons center". Winston-Salem Journal. Retrieved 2 January 2017.
  23. ↑ Craver, Richard (September 12, 2017). "Capital Bank shareholders approve $2.2 billion offer from First Horizon". Winston-Salem Journal. Retrieved 2 May 2019.
  24. ↑ Lauren K. Ohnesorge (22 October 2018). "Capital Bank picks 10-story downtown Raleigh tower for HQ". Triangle Business Journal. Retrieved 24 October 2018.
  25. ↑ Flessner, Dave (October 24, 2019). "Chattanooga's biggest bank takes on brand new name Friday: First Tennessee Bank officially becoming First Horizon Bank". Chattanooga Times Free Press . Retrieved October 26, 2019.
  26. ↑ "First Tennessee becomes First Horizon today". Cleveland Daily Banner. October 25, 2019. Retrieved October 26, 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.