Capital Bank Financial
| Company type | Public |
|---|---|
| Industry | Banking |
| Predecessor | North American Financial Holdings |
| Founded | 2009 |
| Defunct | 2017 |
| Fate | Acquired by First Horizon National Corporation |
| Successor | First Horizon Bank |
| Headquarters | Charlotte, North Carolina , United States |
Area served | Carolinas, Florida, Tennessee, Virginia |
Key people | Gene Taylor (CEO), Chris Marshall (CFO), Kenneth Posner (Corporate strategy and investor relations) |
| Products | Banking services |
| Website | capitalbank-us |
Capital Bank Financial Corporation operated as a bank holding company headquartered in Charlotte, North Carolina, managing assets totaling $10 billion and overseeing 193 branches by early 2017. The company was led by CEO Gene Taylor, previously vice chairman at Bank of America, and CFO Chris Marshall, who brought experience from Bank of America and Fifth Third Bank. Despite acquiring seven troubled banks following the 2008 financial crisis, the corporation sustained steady profitability. Corporate strategy and investor relations were overseen by Kenneth Posner, a former analyst at Morgan Stanley. Initially concentrating on the Carolinas and Florida, the company later expanded its reach into Tennessee and Virginia. Capital Bank successfully launched an IPO in September 2012, trading on NASDAQ under the symbol CBF until its acquisition by First Horizon National Corporation in December 2017.
North American Financial Holdings
In December 2009, North American Financial Holdings (NAFH) secured $900 million in funding from private equity investors such as Crestview Partners, Oak Hill Advisors, and Falfurrias Capital Partners. The OCC granted NAFH a national bank charter in March 2010, enabling it to begin acquiring institutions.
On June 29, 2010, NAFH invested $175 million into Naples-based TIB Financial Corp., which owned TIB Bank. The agreement included rights to invest an additional $175 million over the following 18 months, with the transaction finalized in the third quarter of 2010.
By mid-2010, NAFH had ownership of MetroBank (located in Dade County, FL), Turnberry Bank (Aventura, FL), and First National Bank of the South (Spartanburg, SC). Including TIB, these banks collectively held $3.1 billion in assets and operated 51 branches across Florida and South Carolina. NAFH acquired three failed banks without upfront payment arrangements, sharing loan loss responsibilities with the FDIC.
Co-founder Hugh McColl of Falfurrias and former CEO of Bank of America anticipated that NAFH would grow to $20 billion in assets within five to seven years.
As of March 31, 2010: MetroBank reported $442.3 million in assets; Turnberry Bank held $263.9 million; First National Bank accounted for $682 million.
Capital Bank
On December 16, 2010, shareholders of Raleigh-based Capital Bank approved a majority stake sale to NAFH through newly issued stock. Established in 1997 as the first new bank in the Triangle area after eight years, Capital raised $26 million—the largest capital raise for a new bank in North Carolina at that time. By 2005, following expansion and acquisitions, Capital’s assets reached $915 million and grew to $1.7 billion by 2010. The economic downturn during the late 2000s affected the bank’s performance, leading it to accept support from NAFH instead of issuing additional shares.
NAFH finalized its acquisition of an 85% interest in Capital for $181 million on January 28, 2011. Following this transaction, Gene Taylor replaced Grant Yarber as Capital’s CEO; Yarber transitioned to serve as president for North Carolina operations. Capital continued operating alongside other NAFH-owned banks with plans to consolidate under the Capital Bank brand. The combined organization featured 84 branches and assets exceeding $5 billion, ranking it among the top 125 banks nationally.
In April 2011, NAFH submitted an application to merge its various banks into NAFH National Bank, which would operate under the name Capital Bank, National Association. The headquarters moved from Raleigh’s Capital Bank Plaza to Miami, Florida—placing regulatory oversight under the Federal Reserve Bank of Atlanta for operational efficiency—while Raleigh retained technology services and loan processing functions.
On May 5, 2011, NAFH announced its $217 million acquisition of Green Bankshares Inc., headquartered in Greeneville, Tennessee. This transaction added 65 branches and $2.5 billion in assets to NAFH’s portfolio. Following this deal, NAFH’s total assets surpassed $7.1 billion with a network of 146 branches across five states, establishing it within the nation’s top 100 banks by asset size. Additionally, NAFH acquired remaining ownership interests in TIB and Capital.
In June 2011, NAFH filed with the SEC for a $300 million initial public offering but deferred it until 2012 due to market conditions and subsequently rebranded as Capital Bank Financial Corp.
In March 2012, Capital Bank Financial agreed to acquire Southern Community Financial Corp., based in Winston-Salem, for $2.88 per share. Southern Community operated Southern Community Bank and Trust with assets totaling $1.5 billion across 22 branches. This acquisition increased Capital’s assets to $8.1 billion with a branch count of 165.
On October 26, 2016, Capital Bank completed a $350 million purchase of CommunityOne Bank headquartered in Charlotte. CommunityOne held $2.4 billion in assets with a network of 45 branches.
Memphis-based First Horizon National Corporation completed its acquisition of Capital Bank for $2.2 billion on December 1, 2017. The Capital Bank name remained active outside Tennessee until October 2019. Following the merger, former CEO Gene Taylor received compensation exceeding $7 million along with substantial payouts for other senior executives.
In October 2018, Capital Bank leased two floors at One Glenwood in downtown Raleigh as part of its headquarters operations.
On October 25, 2019, Capital Bank and First Tennessee Bank merged under the unified First Horizon Bank brand.