Post Earnings Coverage as Capital Bank's Q1 Diluted EPS Surged 42% Y-o-Y
Upcoming AWS Coverage on Regions Financial Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 26, 2017 / Active Wall St. announces its post-earnings coverage on Capital Bank Financial Corp. (NASDAQ: CBF). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 21, 2017. Capital Bank' GAAP net income and diluted EPS share surged 112% and 42% y-o-y, respectively. Register with us now for your free membership at:
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One of Capital Bank Financial's competitors within the Regional - Southeast Banks space, Regions Financial Corp. (NYSE: RF), reported on Tuesday, April 18, 2017, its Q1 2017 financial results. AWS will be initiating a research report on Regions Financial in the coming days.
Today, AWS is promoting its earnings coverage on CBF; touching on RF. Get our free coverage by signing up to:
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Earnings Reviewed
In Q1 FY17, Capital Bank's interest and dividend income rose to $92.94 million from $69.47 million in Q1 FY16. The Banks' interest expenses during the reported period increased to $10.82 million from $8.11 million in Q1 FY16.
Capital Bank's net interest income grew in Q1 FY17 to $82.12 million from $61.37 million in the prior year's same quarter. Furthermore, the Bank's total non-interest income also surged to $15.85 million in Q1 FY17 from $2.57 million in the year ago comparable quarter.
The Charlotte, North Carolina-based bank reported a record GAAP net income of $20.88 million, or $0.39 per diluted common share, in Q1 FY17 versus $9.84 million, or $0.22 per diluted common share, in Q1 FY16. The Company's core net income for the reported quarter stood at $23.90 million, or $0.45 per diluted share, compared to $16.88 million, or $0.38 per diluted share, in Q1 FY16. Meanwhile, Wall Street had expected the Company to report net operating income of $0.44 per diluted share.
Earnings Metrics
During the reported quarter, the bank's return on average assets was 0.84% versus 0.53% in the prior year's comparable quarter. The return on average common shareholders' equity came in at 6.43% in Q1 FY17 compared to 3.96% reported in the year ago comparable period. Furthermore, the bank's efficiency ratio was 64.00% in Q1 FY17 compared to 73.42% in Q1 FY16.
Net interest margin for the reported quarter rose to 3.73% from 3.64% in Q1 FY16. The bank's yield on average earning assets also improved during Q1 FY17 to 4.21%, from 4.11% in the year ago same period. Moreover, the Company's allowance for loan and lease losses was $43.89 million as on March 31, 2017, compared to $45.26 million as on March 31, 2016.
Balance Sheet Analyzed
Capital Bank' non-interest earning assets increased to $909.14 million as on March 31, 2017, from $618.09 million as on March 31, 2016. Total interest bearing deposits were $9.00 billion as on March 31, 2017, compared to $8.50 billion recorded as on March 31, 2016. Furthermore, the bank had total assets worth $9.91 billion as on March 31, 2017, versus $9.33 billion as on March 31, 2016.
The banks' non-performing loans as on March 31, 2017, were $71.6 million, down by 4.7% from December 31, 2016, primarily due to of resolutions and upgrades. Meanwhile, non-performing loans increased 10.8% y-o-y as on March 31, 2017, primarily attributed to the acquisition of CommunityOne.
Non-accrual loans as on March 31, 2017, stood at $13.61 million compared to $8.53 million as on March 31, 2016. Furthermore, net charge-offs to average loans stood at 0.14% as on March 31, 2017, compared to 0.08% as on March 31, 2016.
Dividend and Share Repurchase
In its earnings press release, Capital Bank's Board of Directors disclosed that a cash dividend of $0.12 per share, will be payable on May 19, 2017, to shareholders of record as of May 05, 2017.
During Q1 FY17, the Company did not repurchase shares of common stock. Moreover, the Company has $88 million remaining under the current board authorized stock repurchase program.
Stock Performance
At the closing bell, on Tuesday, April 25, 2017, Capital Bank Financial's share price finished the trading session at $42.35, slightly down 0.59%. A total volume of 313.30 thousand shares exchanged hands, which was higher than the 3 months average volume of 263.32 thousand shares. The stock has advanced 32.21% and 43.52% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 8.23%. The stock is trading at a PE ratio of 32.88 and has a dividend yield of 1.13%.
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