Capital Bank Financial
Capital Bank Financial Corp. (Form: 10-Q, Received: 07/29/2016 16:07:41)


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  ______________________________________
FORM 10-Q
______________________________________
   (Mark One)
X
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2016
OR
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition period from              to             
Commission File Number 001-35655
  ________________________________________________
 
(Exact name of registrant as specified in its charter)
    ________________________________________________
Delaware
 
27-1454759
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)

4725 Piedmont Row Drive Suite 110 Charlotte, North Carolina 28210
(Address of principal executive offices) (Zip Code)
(704) 554-5901
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

  ________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    ý   Yes     ¨   No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):    ý   Yes     ¨   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):
Large accelerated filer
 
ý
 
 
  
Accelerated filer
 
¨

Non-accelerated filer
 
  ¨
 
 
  
Smaller reporting company
 
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   ¨   Yes   ý     No
Indicate the number of shares outstanding of each issuer's classes of common stock, as of the latest practicable date:
Class A Voting Common Stock, $0.01 Par Value
 
26,372,303
Class B Non-Voting Common Stock, $0.01 Par Value
 
16,853,429
Class
 
Outstanding as of July 27, 2016
 

1


CAPITAL BANK FINANCIAL CORP.
FORM 10-Q
For the quarter ended June 30, 2016

INDEX
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2



Capital Bank Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and shares in thousands)
June 30, 2016
 
December 31, 2015
Assets
 
 
 
Cash and due from banks
$
84,038

 
$
87,985

Interest-bearing deposits in other banks
135,977

 
56,711

Total cash and cash equivalents
220,015

 
144,696

Trading securities
3,536

 
3,013

Investment securities available-for-sale at fair value (amortized cost $637,072 and $640,455, respectively)
650,470

 
637,329

Investment securities held-to-maturity at amortized cost (fair value $477,731 and $475,134, respectively)
468,943

 
472,505

Loans held for sale
6,446

 
10,569

Loans, net of deferred loan costs and fees
5,738,459

 
5,622,147

Less: Allowance for loan and lease losses
44,883

 
45,034

Loans, net
5,693,576

 
5,577,113

Other real estate owned
44,236

 
52,776

FDIC indemnification asset

 
6,725

Receivable from FDIC

 
678

Premises and equipment, net
158,305

 
159,149

Goodwill
134,522

 
134,522

Intangible assets, net
13,231

 
15,100

Deferred income tax asset, net
92,277

 
105,316

Other assets
135,668

 
129,988

Total Assets
$
7,621,225

 
$
7,449,479

Liabilities and Shareholders’ Equity
 
 
 
Liabilities
 
 
 
Deposits:
 
 
 
Non-interest bearing demand
$
1,172,481

 
$
1,121,160

Interest bearing demand
1,456,558

 
1,382,732

Money market
1,155,475

 
1,190,121

Savings
403,106

 
418,879

Time deposits
1,619,507

 
1,747,318

Total deposits
5,807,127

 
5,860,210

Federal Home Loan Bank advances
650,800

 
460,898

Short-term borrowings
16,785

 
12,410

Long-term borrowings
86,883

 
85,777

Accrued expenses and other liabilities
43,132

 
43,919

Total liabilities
6,604,727

 
6,463,214

 
 
 
 
Commitments and contingencies

 

 
 
 
 
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, 37,237 issued and 26,665 outstanding and 37,012 issued and 26,589 outstanding, respectively.
372

 
370

Common stock-Class B $0.01 par value: 200,000 shares authorized, 18,327 issued and 16,554 outstanding and 18,327 issued and 16,554 outstanding, respectively.
183

 
183

Additional paid in capital
1,077,769

 
1,076,415

Retained earnings
227,370

 
208,742

Accumulated other comprehensive income (loss)
9,443

 
(5,196
)
Treasury stock, at cost, 12,345 and 12,196 shares, respectively
(298,639
)
 
(294,249
)
Total shareholders’ equity
1,016,498

 
986,265

Total Liabilities and Shareholders’ Equity
$
7,621,225

 
$
7,449,479

The accompanying notes are an integral part of these financial statements.

3


Capital Bank Financial Corp.
Consolidated Statements of Income
(Unaudited)

(Dollars and shares in thousands, except per share data)
Three Months Ended
 
Six Months Ended
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Interest and dividend income
 
 
 
 
 
 
 
Loans, including fees
$
62,629

 
$
61,400

 
$
125,282

 
$
121,659

Investment securities:
 
 
 
 
 
 
 
Taxable interest income
6,414

 
5,089

 
12,701

 
10,002

Tax-exempt interest income
121

 
126

 
241

 
266

Dividends
12

 
14

 
25

 
27

Interest-bearing deposits in other banks
74

 
36

 
158

 
69

Other earning assets
329

 
646

 
644

 
1,334

Total interest and dividend income
69,579

 
67,311

 
139,051

 
133,357

Interest expense
 
 
 
 
 
 
 
Deposits
6,003

 
4,838

 
12,065

 
9,248

Long-term borrowings
1,547

 
1,645

 
3,058

 
3,370

Federal Home Loan Bank advances
499

 
134

 
1,017

 
309

Other borrowings
15

 
9

 
29

 
16

Total interest expense
8,064

 
6,626

 
16,169

 
12,943

Net Interest Income
61,515

 
60,685

 
122,882

 
120,414

Provision for loan and lease losses
1,172

 
1,299

 
2,547

 
458

Net interest income after provision for loan and lease losses
60,343

 
59,386

 
120,335

 
119,956

Non-Interest Income
 
 
 
 
 
 
 
Service charges on deposit accounts
4,486

 
5,189

 
9,297

 
9,894

Debit card income
3,235

 
3,176

 
6,321

 
6,140

Fees on mortgage loans originated and sold
1,140

 
1,278

 
2,111

 
2,425

Investment advisory and trust fees
455

 
1,125

 
952

 
2,131

FDIC indemnification asset expense

 
(2,499
)
 

 
(4,938
)
Termination of loss share agreements

 

 
(9,178
)
 

Investment securities gains
117

 
231

 
157

 
321

Other-than-temporary impairment loss on investments:
 
 
 
 
 
 
 
Gross impairment loss

 
(288
)
 

 
(288
)
Less: Impairment recognized in other comprehensive income

 

 

 

Net impairment loss recognized in earnings

 
(288
)
 

 
(288
)
Other income
2,489

 
2,151

 
4,828

 
4,598

Total non-interest income
11,922

 
10,363

 
14,488

 
20,283

Non-Interest Expense
 
 
 
 
 
 
 
Salaries and employee benefits
20,139

 
21,881

 
42,301

 
45,762

Stock-based compensation expense
467

 
108

 
784

 
392

Net occupancy and equipment expense
7,355

 
7,754

 
15,058

 
15,883

Computer services
3,274

 
3,343

 
6,849

 
6,740

Software expense
2,000

 
2,082

 
4,036

 
4,224

Telecommunication expense
1,558

 
1,367

 
3,090

 
2,747

OREO valuation expense
1,119

 
1,710

 
1,586

 
3,100

Net gains on sales of OREO
(413
)
 
(957
)
 
(1,092
)
 
(964
)
Foreclosed asset related expense
399

 
600

 
684

 
1,274

Loan workout expense
71

 
795

 
315

 
1,418

Conversion and merger related expense
1,236

 

 
2,923

 

Professional fees
1,353

 
1,723

 
2,965

 
3,457

Losses on extinguishment of debt

 
1,438

 

 
1,438

Contingent value right expense

 
4

 

 
120

Regulatory assessments
1,259

 
1,831

 
2,534

 
3,526

Restructuring charges, net
5

 
178

 
147

 
2,519

Other expense
4,714

 
5,645

 
9,294

 
10,513

Total non-interest expense
44,536

 
49,502

 
91,474

 
102,149

Income before income taxes
27,729

 
20,247

 
43,349

 
38,090

Income tax expense
10,327

 
7,257

 
16,107

 
13,711

Net income
$
17,402

 
$
12,990

 
$
27,242

 
$
24,379

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.40

 
$
0.28

 
$
0.63

 
$
0.53

Diluted
$
0.40

 
$
0.28

 
$
0.62

 
$
0.51

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
43,011

 
45,913

 
43,036

 
46,102

Diluted
43,879

 
47,220

 
43,891

 
47,427

The accompanying notes are an integral part of these financial statements .


4


Capital Bank Financial Corp.
Consolidated Statements of Comprehensive Income
(Unaudited)

(Dollars in thousands)
Three Months Ended
 
Six Months Ended
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Net Income
$
17,402

 
$
12,990

 
$
27,242

 
$
24,379

Other comprehensive income (loss) before tax:
 
 
 
 
 
 
 
Unrealized holding gains (losses) on investment securities available-for-sale
7,196

 
(6,624
)
 
16,615

 
(1,007
)
Reclassification adjustment for gains realized in net income on securities available-for-sale
(92
)
 
(262
)
 
(92
)
 
(313
)
Reclassification adjustment for losses amortized in net income on securities held-to-maturity
352

 
391

 
689

 
754

Unrealized holding gains (losses) on cash flow hedges
2,155

 
(835
)
 
7,681

 
(32
)
Reclassification adjustments for net gains included in net income on cash flow hedges
(634
)
 
(459
)
 
(1,278
)
 
(567
)
Other comprehensive income (loss), before tax:
8,977

 
(7,789
)
 
23,615

 
(1,165
)
Tax effect
(3,412
)
 
2,970

 
(8,976
)
 
444

Other comprehensive income (loss), net of tax:
5,565

 
(4,819
)
 
14,639

 
(721
)
Comprehensive income
$
22,967

 
$
8,171

 
$
41,881

 
$
23,658

The accompanying notes are an integral part of these financial statements.


5


Capital Bank Financial Corp.
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
 
(Dollars and shares in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares
Common
Stock Class A
Outstanding
 
Class A
Stock
 
Shares
Common
Stock Class B
Outstanding
 
Class B
Stock
 
Additional
Paid in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Treasury
Stock
 
Total
Shareholders'
Equity
Balance, December 31, 2015
26,589

 
$
370

 
16,554

 
$
183

 
$
1,076,415

 
$
208,742

 
$
(5,196
)
 
$
(294,249
)
 
$
986,265

Net income

 

 

 

 

 
27,242

 

 

 
27,242

Dividends paid

 

 

 

 

 
(8,614
)
 

 

 
(8,614
)
Other comprehensive loss, net of tax expense of $8,976

 

 

 

 

 

 
14,639

 

 
14,639

Stock-based compensation

 

 

 

 
807

 

 

 

 
807

Restricted stock grants
197

 
2

 

 

 
(2
)
 

 

 

 

Nonqualified stock option exercise
27

 

 

 

 
549

 

 

 

 
549

Purchase of treasury stock
(148
)
 

 

 

 

 

 

 
(4,390
)
 
(4,390
)
Balance, June 30, 2016
26,665

 
$
372

 
16,554

 
$
183

 
$
1,077,769

 
$
227,370

 
$
9,443

 
$
(298,639
)
 
$
1,016,498

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2014
30,150

 
$
370

 
17,443

 
$
187

 
$
1,081,628

 
$
158,403

 
$
(3,824
)
 
$
(173,190
)
 
$
1,063,574

Net income

 

 

 

 

 
24,379

 

 

 
24,379

Other comprehensive loss, net of tax benefit of $444

 

 

 

 

 

 
(721
)
 

 
(721
)
Stock-based compensation

 

 

 

 
392

 

 

 

 
392

Excess tax benefit from share-based payment

 

 

 

 
2,179

 

 

 

 
2,179

Restricted stock cancelled
(192
)
 
(2
)
 

 

 
(5,459
)
 

 

 

 
(5,461
)
Purchase of treasury stock
(487
)
 

 
(474
)
 

 

 

 

 
(24,996
)
 
(24,996
)
Conversion of shares
415

 
4

 
(415
)
 
(4
)
 

 

 

 

 

Balance, June 30, 2015
29,886

 
$
372

 
16,554

 
$
183

 
$
1,078,740

 
$
182,782

 
$
(4,545
)
 
$
(198,186
)
 
$
1,059,346

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.


6


Capital Bank Financial Corp.
Consolidated Statements of Cash Flows
(Unaudited)
 
(Dollars in thousands)
Six Months Ended
 
June 30, 2016
 
June 30, 2015
Cash flows from operating activities
 
 
 
Net income
$
27,242

 
$
24,379

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Accretion of purchased credit impaired loans
(40,766
)
 
(49,892
)
Depreciation and amortization
8,274

 
9,031

Impairment of premises and equipment

 
1,525

Provision for loan and lease losses
2,547

 
458

Deferred income tax
4,063

 
12,917

Net amortization of investment securities premium/discount
2,265

 
3,293

Other-than-temporary impairment of investment

 
288

Net realized gains on investment securities
(157
)
 
(321
)
Stock-based compensation expense
807

 
392

Net gains on sales of OREO
(1,092
)
 
(964
)
OREO valuation expense
1,586

 
3,100

Other
(29
)
 
2

Net deferred loan origination fees
2,855

 
(3,837
)
Losses on extinguishment of debt

 
1,438

Mortgage loans originated for sale
(65,573
)
 
(92,276
)
Proceeds from sales of mortgage loans originated for sale
71,807

 
93,090

Fees on mortgage loans originated and sold
(2,111
)
 
(2,425
)
FDIC indemnification asset expense

 
4,938

Termination of loss share agreements
9,178

 

Gains on sales/disposals of premises and equipment
(11
)
 
(335
)
 Net proceeds from FDIC loss share agreements
(186
)
 
1,128

Change in other assets
5,355

 
(5,260
)
Change in accrued expenses and other liabilities
809

 
1,260

Net cash provided by operating activities
26,863

 
1,929

Cash flows from investing activities
 
 
 
Purchases of investment securities available-for-sale
(127,789
)
 
(137,382
)
Purchases of investment securities held-to-maturity
(30,537
)
 
(29,912
)
Proceeds from sale of investment securities available-for-sale
90,646

 
52,179

Repayments of principal and maturities of investment securities available-for-sale
37,696

 
36,850

Repayments of principal and maturities of investment securities held-to-maturity
34,988

 
40,529

Net purchases of FHLB and FRB stock
(8,630
)
 
(1,995
)
Redemption of contingent value right

 
(17,162
)
Net increase in loans
(83,280
)
 
(160,518
)
Settlement of loss share agreements
(3,029
)
 

Purchases of premises and equipment
(4,456
)
 
(3,154
)
Proceeds from sales of premises and equipment
2,292

 
698

Proceeds from sales of OREO
11,818

 
18,810

Net cash used in investing activities
(80,281
)
 
(201,057
)
Cash flows from financing activities
 
 
 
Net increase in demand, money market and savings accounts
74,728

 
134,213

Net (decrease) increase in time deposits
(127,811
)
 
103,110

Net increase (decrease) in federal funds purchased and securities sold under agreement to repurchase
4,375

 
(6,308
)
Prepayment of long-term repurchase agreements

 
(52,295
)
Repayment of short-term FHLB advances
(580,000
)
 

Proceeds from short-term FHLB advances
530,000

 
60,000

Proceeds from long-term FHLB advances
240,000

 

Decrease in long-term FHLB advances
(98
)
 
(95
)
Prepayment of subordinated debt

 
(3,529
)
Excess tax benefit from share-based payment
59

 
2,179

Proceeds from exercise of stock options
490

 

Restricted stock cancelled
(2
)
 

Dividends paid
(8,614
)
 

Purchases of treasury stock
(4,390
)
 
(24,996
)
Net cash provided by financing activities
128,737

 
212,279

Net increase in cash and cash equivalents
75,319

 
13,151

Cash and cash equivalents at beginning of period
144,696

 
188,135

Cash and cash equivalents at end of period
$
220,015

 
$
201,286

 
 
 
 
Supplemental disclosures of cash:
 
 
 
Interest paid
$
14,465

 
$
10,787

Cash collections of contractual interest on purchased credit impaired loans
23,133

 
31,324

Income taxes paid
3,363

 
1,242

Supplemental disclosures of non-cash transactions:
 
 
 
OREO acquired through loan transfers
$
2,182

 
$
7,058

Transfers of other assets to OREO
1,590

 

The accompanying notes are an integral part of these financial statements.


7

Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)



1. Basis of Presentation
Nature of Operations and Principles of Consolidation
Capital Bank Financial Corp. (“CBF” or the “Company”; formerly known as North American Financial Holdings, Inc.) is a bank holding company incorporated in late 2009 in Delaware and headquartered in North Carolina whose business is conducted primarily through Capital Bank Corporation (“Capital Bank Corporation” or the “Bank”). The Company was incorporated with the goal of creating a regional banking franchise in the southeastern region of the United States through organic growth and acquisitions of other banks, including failed, underperforming and undercapitalized banks. CBF has raised $955.6 million to make acquisitions through a series of private placements and an initial public offering of its common stock. Since inception, CBF has acquired seven depository institutions, including the assets and certain deposits from failed banks. CBF has a total of 151 full service banking offices located in Florida, North and South Carolina, Tennessee and Virginia. Through its branches CBF offers a wide range of commercial and consumer loans and deposits, as well as ancillary financial services.
The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statement presentation. In the opinion of management, all adjustments consisting of normal recurring accruals and disclosures considered necessary for a fair interim presentation have been included. All significant inter-company accounts and transactions have been eliminated in consolidation. For further information, refer to the Company’s Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015.
Use of Estimates and Assumptions
To prepare financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as presented in the financial statements. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update ("ASU") 2016-13, "Financial Instruments—Credit Losses (Topic 326)". Assets Measured at Amortized Cost—this update requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (PCD assets) that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer assessment of credit losses at acquisition. Available-for-Sale Debt Securities—Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The allowance for credit losses for purchased available-for-sale securities with a more-than-insignificant amount of credit deterioration since origination is determined in a similar manner to other available-for-sale debt securities; however, the initial allowance for credit losses is added to the purchase price rather than reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded in credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606)". The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in 2 exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) Identify the contract(s) with a customer; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to the performance obligations in the contract; (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this Update do not change the core principle of the guidance in Topic 606. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In May 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606)". The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) Identify the contract(s) with a customer; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to the performance obligations in the contract; and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In March 2016, the FASB issued ASU 2016-9, "Compensation—Stock compensation (Topic 718)". Improvements to employee share-based payment accounting" which objective is the simplification through the identification, evaluation, and improvement of areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The adoption of ASU 2016-9 will be effective for the fiscal year beginning after December 15, 2016. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In March 2016, the FASB issued ASU 2016-7, "Investments—Equity Method and Joint Ventures (Topic 323)". The amendments in this Update eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-bystep basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments in this Update require that an entity that has an available-forsale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated 2 other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In March 2016, the FASB issued ASU 2016-6, "Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments". The amendments in this Update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In January 2016, the FASB issued ASU 2016-2, "Leases (Topic 842)" which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This Update, along with IFRS 16, Leases, are the results of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. The Boards decided to not fundamentally change lessor accounting with the amendments in this Update. However, some changes have been made to lessor accounting to conform and align that guidance with the lessee guidance and other areas within generally accepted accounting principles (GAAP), such as Topic 606, Revenue from Contracts with Customers. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The adoption of ASU 2016-2 will be effective for the fiscal year beginning after December 15, 2018. The Company is currently evaluating this ASU to determine the impact on its consolidated financial position, results of operations and cash flows.
In January 2016, the FASB issued ASU 2016-1, "Financial instruments Overall (Subtopic 825-10)" which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this Update eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. For public business entities, the amendments in ASU 2016-1 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-1 is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.
In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments". The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in ASU 2015-16 require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in ASU 2015-16 also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-16 will impact the accounting for future acquisitions.
In September 2015, the FASB issued ASU 2015-15, "Interest—Imputation of interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements". The amendments in ASU 2015-15, adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.
In August 2015, the FASB issued ASU 2015-14, "Revenue from contracts with customers (Topic 606) - Deferral of the Effective Date". The amendments in ASU 2015-14 establish December 15, 2017 as the effective date of the information related to ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”h. The Company is currently evaluating ASU 2014-9 to determine the impact on its consolidated financial position, results of operations and cash flows.

2. Earnings Per Common Share
Basic earnings per share is computed as net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under stock options and unvested restricted shares computed using the treasury stock method. Earnings per share have been computed based on the following:
(Shares in thousands)
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Weighted average number of shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
43,011

 
45,913

 
43,036

 
46,102

Dilutive effect of options outstanding
 
852

 
800

 
847

 
743

Dilutive effect of unvested restricted shares
 
16

 
507

 
8

 
582

Diluted
 
43,879

 
47,220

 
43,891

 
47,427

The dilutive effect of stock options and unvested restricted shares are the only common stock equivalents for purposes of calculating diluted earnings per common share.
Weighted average anti-dilutive stock options and unvested restricted shares excluded from the computation of diluted earnings per share are as follows:
(Shares in thousands)
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Anti-dilutive stock options
 
38

 
9

 
38

 
9

Anti-dilutive unvested restricted shares
 
3

 

 
2

 



3. Business Combinations and Acquisitions
On November 22, 2015, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CommunityOne, pursuant to which CommunityOne will merge with and into CBF on the terms and subject to the conditions set forth in the CommunityOne Merger Agreement (the “Merger”). Subject to regulatory approvals, and certain other closing conditions, the Merger is expected to close in the third quarter of 2016. As of March 31, 2016, CommunityOne reported total assets of $2.4 billion and net loans of $1.5 billion .

4. Investment Securities
Trading securities totaled $ 3.5 million and $3.0 million at June 30, 2016 and December 31, 2015 , respectively.
The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at June 30, 2016 and December 31, 2015 , are presented below:


8

Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


(Dollars in thousands)

June 30, 2016
 

Amortized
Cost

Unrealized
Gains

Unrealized
Losses

Estimated
Fair Value
Available-for-Sale








Corporate bonds
 
$
43,140

 
$
372

 
$
953

 
$
42,559

Mortgage-backed securities—residential issued by government sponsored entities
 
590,693

 
13,955

 

 
604,648

Industrial revenue bonds

3,239

 
24

 

 
3,263

Total

$
637,072

 
$
14,351

 
$
953

 
$
650,470

Held-to-Maturity

 
 
 
 
 
 
 
U.S. Government agencies

$
11,999

 
$
581

 
$

 
$
12,580

Corporate bonds

74,014

 
464

 
3,650

 
70,828

State and political subdivisions—tax exempt

9,611

 
741

 

 
10,352

State and political subdivisions—taxable

524

 
28

 

 
552

Mortgage-backed securities—residential issued by government sponsored entities

372,795

 
10,635

 
11

 
383,419

Total

$
468,943

 
$
12,449

 
$
3,661

 
$
477,731


(Dollars in thousands)

December 31, 2015
 

Amortized
Cost

Unrealized
Gains

Unrealized
Losses

Estimated
Fair Value
Available-for-Sale








Corporate bonds
 
$
22,870

 
$
112

 
$
227

 
$
22,755

Mortgage-backed securities—residential issued by government sponsored entities

614,176


1,376


4,415


611,137

Industrial revenue bonds

3,409


28




3,437

Total

$
640,455


$
1,516


$
4,642


$
637,329

Held-to-Maturity








U.S. Government agencies

$
12,805


$
230


$


$
13,035

Corporate bonds
 
70,059

 

 
401

 
69,658

State and political subdivisions—tax exempt

10,849


488




11,337

State and political subdivisions—taxable

528


17




545

Mortgage-backed securities—residential issued by government sponsored entities

378,264


3,107


812


380,559

Total

$
472,505


$
3,842


$
1,213


$
475,134


Proceeds from sales of securities were $90.6 million for the three and six months ended June 30, 2016. Gross gains of $0.1 million were realized on sales of these investments during the three and six months ended June 30, 2016, respectively.
Proceeds from sales of securities were $31.9 million and $52.2 million for the three and six months ended June 30, 2015, respectively. Gross gains of $0.3 million and $0.3 million were realized on sales of these investments during the three and six months ended June 30, 2015, respectively.
The estimated fair value of investment securities at June 30, 2016 , by contractual maturity, is shown in the table that follows. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.

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Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


(Dollars in thousands)

June 30, 2016
 

Amortized
Cost

Estimated
Fair Value

Yield
Available-for-sale


 

 

Due in one year or less

$

 
$

 
%
Due after one year through five years


 

 
%
Due after five years through ten years


 

 
%
Due after ten years

46,379

 
45,822

 
2.96
%
Mortgage-backed securities—residential issued by government sponsored entities

590,693

 
604,648

 
2.20
%
Total

$
637,072

 
$
650,470

 
2.26
%
 
 
 
 
 
 
 
 

Amortized
Cost
 
Estimated
Fair Value
 
Yield
Held-to-maturity


 

 

Due in one year or less

$

 
$

 
%
Due after one year through five years

19,330

 
18,068

 
4.40
%
Due after five years through ten years

64,295

 
63,112

 
4.95
%
Due after ten years

12,523

 
13,132

 
2.87
%
Mortgage-backed securities—residential issued by government sponsored entities

372,795

 
383,419

 
2.37
%
Total

$
468,943

 
$
477,731

 
2.82
%
Securities with unrealized losses not recognized in income, and the period of time they have been in an unrealized loss position, are as follows:
(Dollars in thousands)
 
Less than 12 Months
 
12 Months or Longer
 
Total
June 30, 2016
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 
$
23,133

 
$
953

 
$

 
$

 
$
23,133

 
$
953

Total
 
$
23,133

 
$
953

 
$

 
$

 
$
23,133

 
$
953

Held-to-Maturity
 

 

 

 

 

 

Corporate bonds
 
21,875

 
3,125

 
4,525

 
525

 
26,400

 
3,650

Mortgage-backed securities—residential issued by government sponsored entities
 

 

 
23,446

 
112

 
23,446

 
112

Total
 
$
21,875

 
$
3,125

 
$
27,971

 
$
637

 
$
49,846

 
$
3,762


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Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


(Dollars in thousands)
 
Less than 12 Months
 
12 Months or Longer
 
Total
December 31, 2015
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 
$
8,237

 
$
227

 
$

 
$

 
$
8,237

 
$
227

Mortgage-backed securities—residential issued by government sponsored entities
 
378,852

 
3,723

 
31,273

 
692

 
410,125

 
4,415

Total
 
$
387,089

 
$
3,950

 
$
31,273

 
$
692

 
$
418,362

 
$
4,642

Held-to-Maturity
 
 
 
 
 
 
 
 
 
 
 
 
U.S Government agencies
 
$

 
$

 
$
13,035

 
$
351

 
$
13,035

 
$
351

Corporate bonds
 
44,658

 
401

 

 

 
44,658

 
401

Mortgage-backed securities—residential issued by government sponsored entities
 
143,368

 
1,691

 
143,147

 
3,298

 
286,515

 
4,989

Total
 
$
188,026

 
$
2,092

 
$
156,182

 
$
3,649

 
$
344,208

 
$
5,741

As of June 30, 2016 , the Company’s security portfolio consisted of 127 securities, 10 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s corporate bonds and mortgage-backed securities.
The corporate bonds in an unrealized loss position at June 30, 2016 and December 31, 2015 continue to perform and are expected to perform through maturity. Unrealized losses associated with these securities are primarily due to changes in interest rates and market volatility, and the corporate issuers have not experienced significant adverse events that would call into question their ability to repay those debt obligations according to contractual terms. Further, because the Company does not have the intent to sell these corporate bonds and it is more likely than not that it will not be required to sell the securities before their anticipated recovery of their amortized cost bases, the Company does not consider these securities to be other-than-temporarily impaired as of June 30, 2016 or December 31, 2015.
All of the mortgage-backed securities at June 30, 2016 and December 31, 2015 were issued by U.S. government-sponsored entities and agencies, which the government has affirmed its commitment to support. Unrealized losses associated with these securities are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at June 30, 2016 or December 31, 2015 .
Investment securities having carrying values of approximately $370.9 million and $311.5 million at June 30, 2016 and December 31, 2015 , respectively, were pledged to secure public funds on deposit, securities sold under agreements to repurchase, and for other purposes as required by law.

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Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


5. Loans
Major classifications of loans, including loans held for sale, are as follows:
(Dollars in thousands)

June 30, 2016
 
December 31, 2015
Non-owner occupied commercial real estate

$
891,830


$
866,392

Other commercial construction and land

212,315


196,795

Multifamily commercial real estate

74,328


80,708

1-4 family residential construction and land

100,306


93,242

Total commercial real estate

1,278,779


1,237,137

Owner occupied commercial real estate

1,075,306


1,104,972

Commercial and industrial

1,448,698


1,309,704

Lease financing

877


1,256

Total commercial

2,524,881

 
2,415,932

1-4 family residential

1,039,309


1,017,791

Home equity loans

364,169


375,276

Other consumer loans

371,582


436,478

Total consumer

1,775,060

 
1,829,545

Other

166,185


150,102

Total loans

$
5,744,905

 
$
5,632,716

Total loans include $6.4 million and $10.6 million of 1 -4 family residential loans held for sale and $14.3 million and $17.1 million of net deferred loan origination costs and fees as of June 30, 2016 and December 31, 2015 , respectively.
As of June 30, 2016 , other loans include $39.1 million , $112.5 million and $1.5 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively. As of December 31, 2015 , other loans include $42.8 million , $96.2 million and $1.3 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively.
Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. Covered loans are further broken out into (i) loans acquired with evidence of credit impairment (“Purchased Credit Impaired", "Acquired Impaired", or "PCI Loans”) and (ii) non-PCI loans. Loans originated or purchased by the Company (“New Loans”) and loans acquired through the purchase of Capital Bank Corp. ("CBKN"), Green Bankshares ("GRNB"), Southern Community Financial ("SCMF" or "Southern Community") and TIB Financial ("TIBB"), are not subject to the loss sharing agreements and are classified as “non-covered.” Additionally, certain consumer loans acquired through the acquisition of First National Bank of the South, Metro Bank and Turnberry Bank (collectively, the “Failed Banks”) from the FDIC, are specifically excluded from the loss sharing agreements.
On March 18, 2016, the Bank entered into an agreement to terminate all existing loss sharing agreements with the FDIC effective January 1, 2016. All rights and obligations of the Bank and the FDIC under these loss sharing agreements have been resolved and terminated under this agreement. Covered loans and OREO that were subject to the loss sharing agreements were reclassified and are presented as non-covered.
The Company designates loans as PCI by evaluating both qualitative and quantitative factors. At the time of acquisition, the Company accounted for the PCI loans by segregating each portfolio into loan pools with similar risk characteristics. Over the lives of the acquired PCI loans, the Company continues to estimate cash flows expected to be collected on each loan pool. The Company evaluates, at each balance sheet date, whether its estimates of the present value of the cash flows from the loan pools, determined using the effective interest rates, has decreased, such that the present value of such cash flows is less than the recorded investment of the pool, and if so, recognizes a provision for loan loss in its Consolidated Statements of Income, unless related to non-credit events.
Additionally, if the Company has favorable changes in estimates of cash flows expected to be collected for a loan pool such that the then-present value exceeds the recorded investment of that pool, the Company will first reverse any previously established allowance for loan and lease losses for the pool. If such estimate exceeds the amount of any previously established allowance, the Company will accrete future interest income over the remaining life of the pool at a rate which, when used to discount the expected cash flows, results in the then-present value of such cash flows equaling the recorded investment of the pool at the time of the revised estimate.
The table below presents a roll forward of accretable yield and income expected to be earned related to PCI loans and the amount of non-accretable difference at the end of the period. Nonaccretable difference represents estimated contractually required payments in excess of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash

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Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


flows expected to be collected over the carrying amount of the PCI loans. Other represents reductions of accretable yield due to non-credit events such as interest rate reductions on variable rate PCI loans and prepayment activity on PCI loans.
(Dollars in thousands)

Three Months Ended
 
Six Months Ended
 

June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
Accretable Yield

 
 
 
 
 
 
 
Balance at beginning of period

$
195,065

 
$
246,109

 
$
208,844

 
$
292,633

Accretion of income

(19,923
)
 
(25,052
)
 
(40,766
)
 
(49,892
)
Reclassification from nonaccretable difference

6,686

 
19,111

 
21,623

 
45,628

Other

(10,893
)
 
(7,718
)
 
(18,766
)
 
(55,919
)
Balance at end of period

$
170,935

 
$
232,450

 
$
170,935

 
$
232,450

 

 
 
 
 
 
 
 
Nonaccretable difference, balance at the end of the period

$
113,470

 
$
190,771

 
$
113,470

 
$
190,771

The accretable yield is accreted into interest income over the estimated life of the PCI loans using the level yield method. The accretable yield will change due to changes in:
The estimate of the remaining life of PCI loans which may change the amount of future interest income, and possibly principal, expected to be collected;
The estimate of the amount of contractually required principal and interest payments over the estimated life that will not be collected (the nonaccretable difference); and
Indices for PCI loans with variable rates of interest.
For PCI loans, the impact of loan modifications is included in the evaluation of expected cash flows for subsequent decreases or increases of cash flows. For variable rate PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the variable rates that were in effect at that time.
Non-covered Loans
The following is a summary of the major categories of non-covered loans outstanding as of June 30, 2016 and December 31, 2015 :
(Dollars in thousands)

Non-PCI Loans

 

 
June 30, 2016

New
 
Acquired

PCI Loans
 
Total
Non-covered
Loans
Non-owner occupied commercial real estate

$
598,692

 
$
40,287

 
$
252,851

 
$
891,830

Other commercial construction and land

141,900

 
176

 
70,239

 
212,315

Multifamily commercial real estate

47,149

 
5,442

 
21,737

 
74,328

1-4 family residential construction and land

100,016

 

 
290

 
100,306

Total commercial real estate

887,757

 
45,905

 
345,117

 
1,278,779

Owner occupied commercial real estate

867,268

 
29,294

 
178,744

 
1,075,306

Commercial and industrial loans

1,373,360

 
4,165

 
71,173

 
1,448,698

Lease financing

877

 

 

 
877

Total commercial

2,241,505

 
33,459

 
249,917

 
2,524,881

1-4 family residential

785,105

 
29,846

 
224,358

 
1,039,309

Home equity loans

159,318

 
136,416

 
68,435

 
364,169

Other consumer loans

366,235

 
3,066

 
2,281

 
371,582

Total consumer

1,310,658

 
169,328

 
295,074

 
1,775,060

Other

133,353

 
1,955

 
30,877

 
166,185

Total loans

$
4,573,273

 
$
250,647

 
$
920,985

 
$
5,744,905



13

Table of Contents
Capital Bank Financial Corp.
Notes to Consolidated Financial Statements (Unaudited)


(Dollars in thousands)
 
Non-PCI Loans
 
 
 
 
December 31, 2015
 
New
 
Acquired
 
PCI Loans
 
Total
Non-covered
Loans
Non-owner occupied commercial real estate
 
$
517,559

 
$
46,081

 
$
302,752

 
$
866,392

Other commercial construction and land
 
110,716

 
202

 
85,754

 
196,672

Multifamily commercial real estate
 
51,413

 
5,686

 
23,609

 
80,708

1-4 family residential construction and land
 
90,304

 

 
2,938

 
93,242

Total commercial real estate
 
769,992

 
51,969

 
415,053

 
1,237,014

Owner occupied commercial real estate
 
858,068

 
36,927

 
209,910

 
1,104,905

Commercial and industrial loans
 
1,222,320

 
6,255

 
81,129

 
1,309,704

Lease financing
 
1,256

 

 

 
1,256

Total commercial
 
2,081,644

 
43,182

 
291,039

 
2,415,865

1-4 family residential
 
733,349

 
32,194