Florida Banking Industry Update

Total Page:16

File Type:pdf, Size:1020Kb

Florida Banking Industry Update Second Quarter 2013 Florida Banking For additional information or Industry Update inquiries, please contact: Benjamin C. Bishop, Jr. Chairman (904) 354-5573 [email protected] David W. Jackson, Jr. President (704) 332-2032 [email protected] Commentary W. Allen Rogers II Vice President-Corporate Finance Operating Results (704) 332-2032 [email protected] Capital Markets Errol Parsons Associate Mergers & Acquisitions (904)354-5573 [email protected] Banks in Florida & Asset Quality Ratios Robert Dunlap President of Ewing Loan Advisors (904)354-5573 [email protected] Ben C. Bishop, III President of Ewing Real Estate, Inc. (904)354-5573 bbisho [email protected] Allen C. Ewing & Co. 50 North Laura Street, Suite 3625 Jacksonville, FL 32202 200 South Tryon, Suite 700 Charlotte, NC 28202 www.AllenEwing.com Allen C. Ewing & Co. Industry Update – 2Q13 TABLE OF CONTENTS Florida banks followed the national trends of improved performance. In 2008-2009, most Florida banks reported losses, but in 2013 most will report positive earnings. In the second quarter, the median ROA of Florida banks increased from .36% to .41%, NPAs/assets declined from Commentary Page 2 3.76% to 3.40%, but the median NIM remained at approximately 3.50%. Pre-tax income increased primarily Florida Bank Operating Results Page 3 from the dramatic decline of loan loss provisions and reduced NPA administrative expenses and not from Capital Markets Page 4 increased NIMs and/or greater revenues. Florida Bank Regional Results Page 5 With the beginning of positive earnings, bank stock prices and M&A valuations are beginning to reflect the earnings of a bank rather than the past focus on balance sheet Florida Bank M&A Page 6 values such as capital adequacy, loss reserves, and tangible book value (“TBV”). In addition to the positive FDIC-Assisted Transactions Page 6 benefits of a return to positive earnings, the earnings of most banks will be sheltered from income taxation for Price / TBV Data Page 7 many years by the accumulation of NOLs over the past five years. 100 Largest Florida-Based Banks Page 8 The charts on page 7 reflect the increased market 50 Largest Out of State Banks in Florida Page 10 valuations of publicly traded bank stocks and the premiums awarded by the markets to banks with higher Florida’s Largest Publicly Traded Stocks Page 11 capital ratios and low NPAs/assets ratios. Florida Loan Loss Provisions Page 11 Beginning on page 15, the chart of Texas Ratios of Florida banks reflects the improvement of the State’s 191 banks Florida Bank Texas Ratios Page 15 as the number of banks with a Texas Ratio over 100% has declined from 50 in second quarter of 2011 to 27 at the end of the second quarter of 2013. Banks with Texas Ratios less than 25% have increased from 57 in the second quarter of 2011 to 74 in the second quarter of 2013. The FDIC has only closed 2 Florida banks in the first half of 2013 versus 8 in the year 2012, and 26 in the year 2010. COMMENTARY The primary challenge to community banks since the SECOND QUARTER 2013 beginning of the recession in 2007-2008 has been maintaining regulatory capital adequacy. The challenge going forward will be the generation of quality assets and Quoting from the most recent FDIC quarterly report, earning an acceptable level of profits to attract capital and the nation’s banking industry continues to improve as pay dividends. Notwithstanding the current economy, more than 90% of the nation’s banks had positive net well-capitalized, publicly-traded banks with increasing income in the first quarter of 2013. Loan loss earnings and large trading markets for their shares will provisions fell to pre-2008 levels, and only 16 perform very well. Similarly, well-capitalized, private institutions were taken over by the FDIC in the first banks with adequate reserves, low NPAs, and increasing half of 2013 compared to 28 institutions in the first half earnings will command higher M&A values. As indicated of 2012. The positive improvements were generated in the table of page 8, the consolidation of banks in Florida by the industry, notwithstanding the fact that net continues as the State now has 24 banks with $1 billion in interest margins (“NIM”) remained at approximately assets and the larger publicly traded community banks are 3.27% which is the lowest level since 2006. This low now trading at premiums of TBV. The number of banks NIM is being created by the replacement of maturing, based in Florida is now below 200 and the number is likely higher-yielding assets by lower-yielding assets which to continue downward as a result of FDIC takeovers and reflect the Federal Reserve’s “easy money” policies. mergers of healthy banks. The future challenge to the banking industry if the current “easy money” policies continue will be the -Benjamin C. Bishop, Jr. generation of quality diversified loans. Chairman 2 Allen C. Ewing & Co. Industry Update – 2Q13 FLORIDA & SOUTHEASTERN BANK OPERATING RESULTS RETURN ON AVERAGE ASSETS EFFICIENCY RATIO Annualized Median Median (Tax equivalent ratios) 0.70 0.65 88.0 0.60 0.60 85.5 0.56 86.0 0.60 84.1 0.51 83.3 82.8 82.8 0.50 0.45 84.0 0.41 (%) 82.0 0.40 0.34 0.34 0.36 (%) 80.0 Ratio 0.30 77.7 78.0 76.0 ROAA 0.20 75.2 75.4 76.0 74.6 Efficiency 0.10 74.0 0.00 72.0 ‐0.10 70.0 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 Florida Southeast Florida Southeast TANGIBLE EQUITY / TANGIBLE ASSETS NPAs / ASSETS Median Median (Government guaranteed NPAs not included) 11.00 6.00 10.23 10.10 10.16 9.96 9.85 9.85 9.91 (%) 5.00 10.00 9.59 9.61 9.71 4.35 4.41 4.33 3.76 (%) 4.00 Assets 3.47 3.49 3.30 3.21 9.00 3.02 2.75 Tang. 3.00 Assets / / 8.00 2.00 NPAs Equity 7.00 1.00 Tang. 6.00 0.00 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 Florida Southeast Florida Southeast NET INTEREST MARGIN LOAN LOSS PROVISIONS Median of the 191 Florida Based Banks Totals and Average for 191 Florida Based Banks 5.0 250,000 1,400 4.27 4.24 4.16 4.07 4.07 (%) 1,200 4.0 200,000 ($000) ($000) Yield 1,000 3.0 3.59 3.60 3.55 3.45 3.52 150,000 800 Provisions Provisions 2.0 Equivalent 600 Loss Loss 100,000 Tax 1.0 Loan 400 Loan 0.75 0.0 0.68 0.65 0.58 0.55 50,000 200 2Q12 3Q12 4Q12 1Q13 2Q13 Total Average 0 0 Net Interest Margin (FTE) (%) Yield on Earning Assets (%) Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Cost of Funds (%) FL Statewide Loan Loss Provisions Average Loans Loss Provisions NOTE: Florida results based on 191 banks. Southeast states include Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia. 3 Allen C. Ewing & Co. Industry Update – 2Q13 CAPITAL MARKETS CAPITAL OFFERINGS OF SOUTHEASTERN BANKS INTEREST RATES Banks with Assets less than $5 Billion & Not Issued Under TARP June 30, 2013, December 31, 2012, and June 30, 2012 Senior Debt Sub Debt 06/30/13 12/31/12 06/30/12 YTD 2013 TruPS Federal Funds 0.07 0.09 0.09 Pref Stock Common Stock Prime Rate 3.25 3.25 3.25 2012 6 Month T Bill (BEY) 0.10 0.11 0.16 1 Year Bill (BEY) 0.15 0.16 0.21 3 Year T Note 0.66 0.36 0.41 2011 5 Year T Note 1.41 0.72 0.72 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 10 Year T Note 2.52 1.78 1.67 ($ in millions) 30 Year T Bond 3.52 2.95 2.76 (In Thousands) 2011 2012 YTD 2013 1 Month LIBOR 0.19 0.21 0.25 Senior Debt $5,450 $10,000 $0 3 Month LIBOR 0.27 0.31 0.46 Sub Debt $13,729 $20,247 $0 TruPS $0 $0 $0 6 Month LIBOR 0.41 0.51 0.73 Pref Stock $537,710 $640,516 $153,697 1 Year LIBOR 0.69 0.84 1.07 Common Stock $1,052,675 $378,336 $237,300 NOTE: Southeast states include: Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia PRICE / TANGIBLE BOOK RATIO YIELD CURVE January 1, 2013 – June 30, 2013 June 30, 2012 – June 30, 2013 150.0 3.0 143.9 145.0 2.5 140.0 2.0 (%) Yield 135.0 1.5 Treasury 1.0 130.0 0.5 125.0 0.0 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 10 Yr 30 Yr 120.0 Jan Feb Mar Apr May Jun FL Banks 06/30/13 12/31/12 06/30/12 NOTE: Florida Banks include: BKU, CCBG, CBF, CSFL, EVER, FUBC, SBCF, and SGBK. 4 Allen C. Ewing & Co. Industry Update – 2Q13 FLORIDA- BASED BANK REGIONAL RESULTS SECOND QUARTER 2013 PERFORMANCE VS SECOND QUARTER 2012 PERFORMANCE Financial Ratios are Medians (%) – Dollars in Millions ($MM) Panhandle 2Q‐13 2Q‐12 Northeast 2Q‐13 2Q‐12 East Central 2Q‐13 2Q‐12 No. of Banks 17 18 No. of Banks 10 11 No. of Banks 28 29 Aggregate Assets $5,790 $5,884 Aggregate Assets $22,284 $19,323 Aggregate Assets $10,652 $10,772 Equity/Assets 9.79 9.77 Equity/Assets 8.45 7.62 Equity/Assets 10.28 10.29 ROAA ‐0.03 ‐0.06 ROAA 0.16 0.11 ROAA 0.44 0.33 NPAs/Assets 4.48 6.70 NPAs/Assets 5.88 7.49 NPAs/Assets 4.50 5.01 Texas Ratio 25.81 48.46 Texas Ratio 57.27 74.41 Texas Ratio 26.09 26.02 Net Interest Margin 3.57 3.52 Net Interest Margin 3.44 3.48 Net Interest Margin 3.66 3.66 North Central 2Q‐13 2Q‐12 No.
Recommended publications
  • Largest Community Banks in the Southeast
    Largest Community Banks in the Southeast Rank Institution Name Ticker State Total Assets ($mm) Total Deposits ($mm) 1 BankUnited, Inc. BKU FL $17,681 $12,834 2 United Bankshares, Inc. UBSI WV $12,085 $8,753 3 WesBanco, Inc.* WSBC WV $8,224 $6,438 4 South State Corporation SSB SC $7,880 $6,518 5 United Community Banks, Inc. UCBI GA $7,526 $6,241 6 Union Bankshares Corporation UBSH VA $7,194 $5,634 7 Capital Bank Financial Corp. CBF FL $6,690 $5,175 8 TowneBank* TOWN VA $6,083 $4,534 9 FCB Financial Holdings, Inc. FCB FL $6,055 $3,991 10 Pinnacle Financial Partners, Inc. PNFP TN $5,866 $4,662 11 BNC Bancorp* BNCN NC $4,919 $4,033 12 Carter Bank & Trust CARE VA $4,679 $4,272 13 Yadkin Financial Corporation YDKN NC $4,179 $3,185 14 ServisFirst Bancshares, Inc.* SFBS AL $4,176 $3,549 15 Ameris Bancorp ABCB GA $3,999 $3,373 16 Community Trust Bancorp, Inc. CTBI KY $3,670 $2,902 17 CenterState Banks, Inc. CSFL FL $3,639 $3,066 18 Republic Bancorp, Inc. RBCAA KY $3,626 $2,060 19 City Holding Company CHCO WV $3,385 $2,793 20 State Bank Financial Corporation* STBZ GA $3,353 $2,730 Community banks^ headquartered in AL, FL, GA, KY, NC, SC, TN, VA or WV ranked by Total Assets (including pending and recently completed acquisitions) as of 9/30/14 * Pro forma for pending acquisitions and/or acquisitions completed since 9/30/14 ^ Community banks defined as banks with less than $20B in total assets Sources: SNL Financial & Banks Street Partners 1 Largest Community Banks in Virginia & the Carolinas Rank Institution Name Ticker State Total Assets ($mm) Total Deposits ($mm) 1 South State Corporation SSB SC $7,896 $6,518 2 Union Bankshares Corporation UBSH VA $7,194 $5,634 3 TowneBank# TOWN VA $6,083 $4,534 4 BNC Bancorp* BNCN NC $4,919 $4,033 5 Carter Bank & Trust CARE VA $4,679 $4,272 6 Yadkin Financial Corporation YDKN NC $4,179 $3,185 7 Cardinal Financial Corporation CFNL VA $3,315 $2,425 8 First Bancorp FBNC NC $3,196 $2,679 9 Square 1 Financial, Inc.
    [Show full text]
  • First Horizon's Supplement to Their Application to the Federal Reserve
    SUPPLEMENT TO THE APPLICATION TO THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM RELATING TO THE PROPOSED ACQUISITION OF CAPITAL BANK FINANCIAL CORP. BY FIRST HORIZON NATIONAL CORPORATION AND FIRESTONE SUB, INC. PURSUANT TO SECTIONS 3(a)(2), 3(a)(3) AND 3(a)(5) OF THE BANK HOLDING COMPANY ACT OF 1956, AS AMENDED, AND REGULATION Y PROMULGATED THEREUNDER August 2, 2017 RESPONSES OF FIRST HORIZON NATIONAL CORPORATION TO THE REQUEST FOR ADDITIONAL INFORMATION Set forth below are the responses of First Horizon National Corporation (“First Horizon”) to the Board of Governors of the Federal Reserve System staff’s request for additional information, dated July 14, 2017, relating to First Horizon’s application (the “Application”) pursuant to Section 3 of the Bank Holding Company Act of 1956, as amended (the “BHC Act”), for prior approval to merge with Capital Bank Financial Corp. (“CBFC”), and thereby indirectly acquire Capital Bank Corp. (“Capital Bank”). Preceding each response, the related question is restated in bold. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Application. 1. Provide current and pro forma shareholders lists for First Horizon that specifically identify any shareholder or group of shareholders that would own or control, directly or indirectly, 5 percent or more of any class of voting securities, or 10 percent or more of the total equity, of First Horizon both before and after consummation of the proposed transaction. In calculating the voting ownership, include any warrants, options, and other convertible instruments, and show all levels of voting ownership on both a fully diluted and an individually diluted basis.
    [Show full text]
  • First Horizon Corporation Annual Report 2021
    First Horizon Corporation Annual Report 2021 Form 10-K (NYSE:FHN) Published: February 25th, 2021 PDF generated by stocklight.com UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 - or - ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SECURITIES EXCHANGE ACT OF 1934 For the Transition period from __________ to__________ Commission File Number: 001-15185 fhn-20201231_g1.jpg FIRST HORIZON CORPORATION (Exact name of registrant as specified in its charter) TN 62-0803242 (State or other jurisdiction (IRS Employer incorporation of organization) Identification No.) 165 Madison Avenue Memphis, Tennessee 38103 (Address of principal executive office) (Zip Code) Registrant’s telephone number, including area code: 901-523-4444 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Exchange on which Registered $.625 Par Value Common Capital Stock FHN New York Stock Exchange LLC Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A FHN PR A New York Stock Exchange LLC Depositary Shares, each representing a 1/400th interest in FHN PR B New York Stock Exchange LLC a share of Non-Cumulative Perpetual Preferred Stock, Series B Depositary Shares, each representing a 1/400th interest in FHN PR C New York
    [Show full text]
  • Capital Bank Financial Corp. Stockholder
    UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA STEPHEN BUSHANSKY, On Behalf of Himself and All Others Similarly Situated, Case No. Plaintiff, v. CLASS ACTION COMPLAINT CAPITAL BANK FINANCIAL CORP., R. EUGENE TAYLOR, MARTHA M. BACHMAN, JURY TRIAL DEMANDED RICHARD M. DEMARTINI, PETER N. FOSS, WILLIAM A. HODGES, SCOTT B. KAUFFMAN, OSCAR A. KELLER III, MARC D. OKEN, ROBERT L. REID, and WILLIAM G. WARD SR., Defendants, Plaintiff Stephen Bushansky ("Plaintiff'), by and through his undersigned counsel, for his complaint against defendants, alleges upon personal knowledge with respect to himself, and as to all other upon information and belief based upon, inter alia, the investigation of counsel allegations herein, as follows: NATURE OF THE ACTION 1. Plaintiff brings this class action on behalf of the public stockholders of Capital Bank Financial Corp. ("Capital Bank" or the "Company") against Capital Bank and the members of Capital Bank's Board of Directors (the "Board" or the "Individual Defendants") for their violations of Section 14(a) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15.U.S.C. 78n(a), 78t(a), and U.S. Securities and Exchange Commission ("SEC") Rule 14a-9, 17 C.F.R. 240.14a-9, arising out of their attempt to sell the Company to First Horizon National Corporation ("First Horizon") (the "Proposed Transaction"). 2. On May 4, 2017, Capital Bank issued a press release announcing it had entered 1 Case 3:17-cv-00422 Document 1 Filed 07/17/17 Page 1 of 26 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA STEPHEN BUSHANSKY, On Behalf of Himself and All Others Similarly Situated, Case No.
    [Show full text]
  • Capital Bank Financial Corp. Announces Pricing of Its Initial Public Offering
    September 19, 2012 Capital Bank Financial Corp. Announces Pricing of Its Initial Public Offering CORAL GABLES, FL–(Marketwire – Sep 20, 2012) – Capital Bank Financial Corp. ( NASDAQ : CBF) (“Capital Bank Financial”), before well known as North American Financial Holdings, Inc., a North Carolina-based inhabitant bank land company, currently voiced the pricing of the primary open charity of 10,000,000 shares of Class A usual batch at $18.00 per share. Capital Bank Financial is offered 5,681,818 shares and sure of the stockholders have been offered 4,318,182 shares. The shares of Class A usual batch have been approaching to proceed trade on The NASDAQ Global Select Market on Sep 20, 2012 underneath the pitch “CBF.”The underwriters have a 30-day choice to squeeze from the offered stockholders up to an one more 1,500,000 shares of Class A usual stock, on the same conditions and conditions, to cover over-allotments, if any. The charity is approaching to tighten on Sep 25, 2012. Capital Bank Financial will not embrace any deduction from the sale of shares by the offered stockholders. Capital Bank Financial intends to make use of the net deduction from the charity for ubiquitous corporate purposes. Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Goldman, Sachs & Co., Barclays and FBR have been behaving as corner book-running managers of the offering. Keefe, Bruyette & Woods and Sandler, O’Neill + Partners, L.P. have been behaving as co-managers of the offering. The charity will be done usually by equates to of a prospectus. When available, copies of the last handbill relating to the charity might be performed by contacting Credit Suisse Securities (USA) LLC, One Madison Avenue, New York, NY 10010, Attention: Prospectus Department, emailing [email protected] or job 1-800-221-1037, or BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department or emailing [email protected].
    [Show full text]
  • North Carolina Banking: It's Complicated…
    February 19, 2016 North Carolina Banking: It’s Complicated… February 19, 2016 North Carolina Banking: It’s Complicated… By: Nancy A. Bush, CFA NAB Research, LLC Distributed by Banks Street Partners, LLC We must admit up front—it’s tough to go back to Charlotte. As an analyst who has followed the major banks for three decades-plus, the “Queen City” carries more than its share of bad karma, mostly in memories of past research visits to Bank of America and First Union (and then the short-lived “new Wachovia”). We can only recall the grandiose growth plans, the botched and overpriced deals, the feeling that there was some kind of new American banking manifest destiny that would flow from the towers on South College and North Tryon—First Union would take over the country, while Bank of America would conquer the world. And we know how it all ended— in disarray, and in tears. Fast forward to the present day, and it’s a whole new banking world out there. For one thing, the Charlotte MSA has recovered from the swoon that was felt after Wachovia fell into the arms of Wells Fargo (WFC) and Bank of America (BAC) embarked on a massive and multi-year restructuring, with the loss of thousands of jobs. The acquisition of Wachovia by Wells Fargo—perhaps the best of all possible outcomes for the company and for the city—has resulted in more jobs than initially existed there and has buffered some of Bank of America’s negative personnel impacts, with the net result that the town is well back on its feet again and showing some of the best employment and income growth metrics in the state.
    [Show full text]
  • Watermark Wire – March 2017
    Watermark Wire – March 2017 Q4 2016: Southeast Acquirers Active in 4Q’16 Transactions Q4 2016 saw a total of 128 Carolinas and Georgia-based acquirers successfully close mergers and acquisitions, totaling $23,567.59MM. Of the closed deals, 2 were greater than $1Bn, 1 was between $500MM and 999MM, 7 were between $100MM and $500MM, 13 were less than $100MM, and the majority of deal terms were undisclosed. Across all three states, the Industrials sector led the way with 36 transactions. Q4 2016 Acquisition Activity among Carolinas and Georgia-headquartered companies Total # of Closed M&A Total Deal Volume 128 $23,567.59 Deals ($MM) Median Deal Value $64.50 # of SC Transactions 23 ($MM) # of GA Transactions 52 # of NC Transactions 53 Q4 M&A Activity: Industrials Activity Leads The Way In SC, NC, GA No Primary Industry Materials, 4 Assigned, 4 Utilities, 3 Information Technology, 19 Industrials, 36 Financials, 23 Consumer Discretionary, 21 Source: S&P Capital IQ Healthcare, 16 Consumer Staples, 2 List of Q4’16 Southeast-based Acquirer Transactions M&A Enterprise Buyer Target Closed Buyers/Investors Buyer City Target/Issuer Value ($ in Transaction Comments Industry Description Date MMs) As of December 31, 2016, 3 California Solar Projects Totaling 55 Megawatts of SunPower SunPower Corporation Duke Energy Corporation Corporation (NasdaqGS:SPWR) (NYSE:DUK) acquired 3 California Duke Energy (NasdaqGS:SPWR), was acquired by Duke Solar Projects Totaling 55 12/31/2016 Corporation Charlotte, NC Electric Utilities Three California Energy Corporation. - Megawatts from SunPower (NYSE:DUK) Solar Projects Three California Solar Corporation (NasdaqGS:SPWR) in Totaling 55 Projects Totaling 55 late December 2016.
    [Show full text]
  • Williams Mullen Advises Southern Community Financial Corporation As Company Is Acquired by Capital Bank Financial Corp
    Williams Mullen Advises Southern Community Financial Corporation as Company is Acquired by Capital Bank Financial Corp. 03.27.2012 Capital Bank Financial Corp's Press Release: Capital Bank Financial Corp. to Acquire Southern Community Financial Corporation Merger expected to make Southern Community stronger and more competitive WINSTON-SALEM, N.C., March 27, 2012 /PRNewswire/ -- Capital Bank Financial Corp. ("CBF" or the "Company"), parent of Capital Bank, N.A., announced today that it has signed a definitive agreement to acquire 100% of the stock of Southern Community Financial Corporation ("SCMF") for $2.875 per share. SCMF is the parent of Southern Community Bank and Trust, a bank with $1.5 billion in assets and 22 branches in Winston-Salem, the Piedmont Triad, and other North Carolina markets. "This transaction maximizes value for our investors and creates growth opportunities for our employees," said Southern Community founding director Dr. William G. Ward, who serves as Chairman. "We are very confident that Capital Bank is the best partner to insure that Southern Community customers will continue to receive the exceptional local service they have long valued." SCMF shareholders may elect to receive their payment in cash or stock, with total consideration consisting of 40% cash and 60% newly issued shares of CBF, which will be exchanged at a fixed ratio of 0.131 based on a value for CBF of $22 per share, subject to certain adjustments. Additionally, SCMF shareholders will receive non-transferable contingent value rights entitling them to receive up to $1.30 per share in cash five years after the effective date of the transaction based on 75% of the savings to the extent that legacy loan and foreclosed asset losses are less than a prescribed dollar amount.
    [Show full text]
  • Best Bank M&A Deals
    Ranking banking BEST BANK M&A DEALS 2020 1 BEST BANK M&A DEALS SPONSORED BY: 2 Defining Success in M&A ow do you define success in bank M&A? M&A can have a transformative impact upon an organization, par- ticularly a community or regional bank. The organization gets larger and gains more operational scale. Lending officers are now empowered to make bigger loans in the bank’s market. The acquirer can make new loans and grow deposits in new markets, and expand market share in its existing geographic footprint. This should all have a positive long-term effect on the metrics we tend to track when evaluating the performance of a bank — its tangible book value per share, profitability measurements like return on assets and earn- ings per share growth, and its efficiency ratio, among other variables. These are all important indicators in understanding the financial impact H of the deal on the combined entity. But it’s the intangible elements — leadership, talent, culture and communication — that drive those metrics and inform a deal’s ultimate success. Bank Director’s core mission for its almost 30-year history has been focused on the stra- tegic issues facing bank executives and boards. How your bank chooses to approach M&A — whether by blazing a path as an active acquirer, focusing on organic growth opportunities or considering whether it’s the right time to sell — impacts your organization’s future. For this reason, the 2020 RankingBanking study, sponsored by Crowe LLP, focuses on the best M&A transactions across several categories, including by asset size and market reaction.
    [Show full text]
  • Order Approving the Merger of Bank Holding Companies, First Horizon
    FRB Order No. 2017-29 October 30, 2017 FEDERAL RESERVE SYSTEM First Horizon National Corporation Memphis, Tennessee Order Approving the Merger of Bank Holding Companies First Horizon National Corporation (“First Horizon”), Memphis, Tennessee, a financial holding company within the meaning of the Bank Holding Company Act of 1956 (“BHC Act”),1 has requested the Board’s approval under section 3 of the BHC Act2 to merge with Capital Bank Financial Corp. (“CBFC”), Charlotte, North Carolina, and thereby indirectly acquire CBFC’s subsidiary bank, Capital Bank Corp. (“Capital Bank”), Raleigh, North Carolina. Following the proposed merger, Capital Bank would be merged into First Horizon’s subsidiary bank, First Tennessee Bank, National Association (“First Tennessee Bank”), also of Memphis, Tennessee.3 Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (82 Federal Register 28659 (June 23, 2017)).4 The time for submitting comments has expired, and the Board has considered the proposal and all comments received in light of the factors set forth in section 3 of the BHC Act. First Horizon, with consolidated assets of approximately $29.4 billion, is the 64th largest insured depository organization in the United States. First Horizon 1 12 U.S.C. § 1841 et seq. 2 12 U.S.C. § 1842. 3 The merger of Capital Bank into First Tennessee Bank, which is expected to occur immediately after First Horizon’s merger with CBFC, is subject to the approval of the Office of the Comptroller of the Currency (“OCC”), pursuant to section 18(c) of the Federal Deposit Insurance Act.
    [Show full text]
  • Federal Reserve Board (FRB) Freedom of Information Act (FOIA) Case Logs 2016-2019
    Description of document: Federal Reserve Board (FRB) Freedom of Information Act (FOIA) Case Logs 2016-2019 Requested date: 13-November-2020 Release date: 23-November-2020 Posted date: 11-January-2021 Source of document: Information Disclosure Section Board of Governors of the Federal Reserve System 20th & Constitution Avenue, NW, Washington, DC 20551 Fax: (202) 872-7565 Electronic Request Form The governmentattic.org web site (“the site”) is a First Amendment free speech web site and is noncommercial and free to the public. The site and materials made available on the site, such as this file, are for reference only. The governmentattic.org web site and its principals have made every effort to make this information as complete and as accurate as possible, however, there may be mistakes and omissions, both typographical and in content. The governmentattic.org web site and its principals shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to have been caused, directly or indirectly, by the information provided on the governmentattic.org web site or in this file. The public records published on the site were obtained from government agencies using proper legal channels. Each document is identified as to the source. Any concerns about the contents of the site should be directed to the agency originating the document in question. GovernmentAttic.org is not responsible for the contents of documents published on the website. BOARD CIF GOVERNORS OF" THE FECERAL RESERVE SYSTEM WASHINGTON , • . C. 20551 ADDRESS OFFI C IAL CORRESPONDENCE TO T H E BOARD November 23, 2020 Re: Freedom of Information Act Request No.
    [Show full text]
  • Capital Bank Is Open for Business in Florida
    Source: Capital Bank Financial Corp. September 12, 2017 11:30 ET Capital Bank is Open for Business in Florida CHARLOTTE, N.C., Sept. 12, 2017 (GLOBE NEWSWIRE) -- Capital Bank Financial Corp. (Nasdaq:CBF) today announced that it has begun reopening branches in order to serve and assist our customers in the wake of Hurricane Irma, and that based on our preliminary assessment, we expect the remaining Florida offices to be open and available to customers as soon as power and telecommunications are restored. In addition to branch personnel, our call center representatives are standing by to help at 1-800-639-5111 or by email at [email protected]. Mobile and online banking services remain available 24x7. "Our focus in Florida is helping our customers get back on their feet," commented Capital Bank's Chairman and CEO, Gene Taylor. "Our teammates are now working with customers to address financial needs resulting from the storm, and thanks to diligent planning and preparedness, we expect to have the full scope of our resources back on line in short order." About Capital Bank Financial Corp. Capital Bank Financial Corp. is a bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank Corporation, a State of North Carolina chartered financial institution with $10.1 billion in total assets as of June 30, 2017, and 189 full-service banking offices throughout Florida, North and South Carolina, Tennessee and Virginia. To learn more about Capital Bank Financial Corp., please visit www.capitalbank-us.com.
    [Show full text]