Charlotte-based Capital Bank Financial Corp. said Thursday its profits rose 21 percent in the third quarter compared with the same quarter last year as it increased revenues and cut expenses.
The parent company of Raleigh-based Capital Bank Corp. recorded net income of $18.5 million, or 42 cents per diluted share, compared with $15.3 million, or 33 cents a share, a year ago.
Capital Bank Financial, Charlotte’s second-largest bank holding company by assets behind Bank of America, posted both higher net interest income and noninterest income. Expenses declined in part from cost-saving initiatives, the company said.
Its net interest margin, a closely watched measure of lending profitability, fell to 3.58 percent from 3.82 percent the same period last year. Capital Bank attributed the decline mostly to lower yields on new loans compared with older loans the company had acquired.
Last week, Capital Bank Financial and Charlotte-based CommunityOne Bancorp announced regulatory approval for a merger in which CommunityOne will be bought for $350 million. The deal is expected to close next week.
It’s the latest regional bank to release third-quarter results after the biggest U.S. banks began disclosing earnings late last week.
Earlier this week, Winston-Salem-based BB&T said its profits in the quarter rose 22 percent to $599 million as revenues grew from recent acquisitions.