Loan revenue growth lifts Capital Bank to higher profit

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A modest increase in loan revenue contributed to Capital Bank Financial Corp. reporting Thursday a 20.6 per cent jump in third-quarter net income to $18.5 million (£15.12 million).

Capital gained its local branch network through its 2012 purchase of Southern Community Financial Corp. of Winston-Salem and its 22 Triad branches.

Capital is expected to report another round of record profits over at least the next four quarters once it closes Wednesday on its $350 million (£285.98 million) deal for CommunityOne Bancorp.

Both the Charlotte based banks announced the deal Nov. 23. Capital gains 13 branches in the Triad and Northwest North Carolina.

The deal takes Capital, with $7.79 billion (£6.37 billion) in total assets as of June 30, to the $10 billion (£8.17 billion) threshold which brings heightened regulatory oversight and expenses that have compelled some regional banks to sell. Capital Bank would move from 12th in the N.C. deposits market share to eighth.

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The author Paul