Capital Bank Financial (CBF) of Coral Gables, Fla., marked its first full quarter as a public company with an increase in profits that fell short of expectations.
The company announced Wednesday that its fourth-quarter profit more than quadrupled, to $5.3 million, compared with the fourth quarter of 2011. Per-share earnings of 10 cents were 5 cents lower than the consensus estimate of analysts polled by Bloomberg.
The parent of Capital Bank, which has $7.3 billion of assets and 164 branches, recorded $6.5 million in conversion costs associated with its
These charges were offset by a $12 million decrease in the company's provision for loan losses, to $4.4 million in the fourth quarter.
Capital Bank's net interest income decreased by 4%, to $66 million, as net interest margin contracted by 22 basis points, to 4.11%. Chargeoffs held steady at $1 million.
The bank's noninterest income declined 4%, to $15.3 million, as lower earnings from investment and Federal Deposit Insurance Corp. asset accretion offset higher income from service charges and mortgage fees.
The bank's noninterest expenses rose 13% on higher compensation expenses and foreclosure costs.
Capital Bank's