10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from             to             

Commission File Number 001-35655

(Exact name of registrant as specified in its charter)

Delaware	27-1454759
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

121 Alhambra Plaza Suite 1601 Coral Gables, Florida 33134

(Address of principal executive offices) (Zip Code)

(305) 670-0200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ¨  Yes  x    No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class A Common Stock, $0.01 Par Value	31,975,601
Class B Non-Voting Common, $0.01 Par Value	18,369,977
Class	Outstanding as of April 30, 2014

Table of Contents

CAPITAL BANK FINANCIAL CORP.

FORM 10-Q

For the Three Months Ended March 31, 2014

INDEX

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	1
CONSOLIDATED BALANCE SHEETS	3
CONSOLIDATED STATEMENTS OF INCOME	4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY	6
CONSOLIDATED STATEMENTS OF CASH FLOWS	7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	33
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	54
ITEM 4. CONTROLS AND PROCEDURES	55
PART II. OTHER INFORMATION	55
ITEM 1. LEGAL PROCEEDINGS	55
ITEM 1A. RISK FACTORS	55
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	55
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	56
ITEM 4. MINE SAFETY DISCLOSURES	56
ITEM 5. OTHER INFORMATION	56
ITEM 6. EXHIBITS	56

2

Capital Bank Financial Corp.

Consolidated Balance Sheets

(Unaudited)

(Dollars and shares in thousands)	March 31, 2014			December 31, 2013
Assets
Cash and due from banks	$	122,145		$	118,937
Interest-bearing deposits with banks		52,735			45,504
Total cash and cash equivalents		174,880			164,441
Trading securities		6,562			6,348
Investment securities available-for-sale at fair value (amortized cost $658,971 and $688,717, respectively)		657,788			685,441
Investment securities held-to-maturity at amortized cost (fair value $449,739 and $459,693, respectively)		449,131			465,098
Loans held for sale		4,833			8,012
Loans, net of deferred loan costs and fees		4,541,652			4,544,017
Less: Allowance for loan losses		55,606			56,851
Loans, net		4,486,046			4,487,166
Other real estate owned		120,270			129,396
FDIC indemnification asset		28,744			33,610
Receivable from FDIC		5,832			7,624
Premises and equipment, net		178,629			179,855
Goodwill		134,522			131,987
Intangible assets, net		22,111			23,365
Deferred income tax asset, net		158,074			166,762
Accrued interest receivable and other assets		121,202			128,456
Total Assets	$	6,548,624		$	6,617,561
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand	$	1,000,914		$	923,993
Negotiable order of withdrawal accounts		1,326,555			1,321,903
Money market		945,354			961,526
Savings		536,948			530,144
Time deposits		1,382,422			1,447,497
Total deposits		5,192,193			5,185,063
Federal Home Loan Bank advances		21,231			96,278
Short-term borrowings		30,453			24,850
Long-term borrowings		138,837			138,561
Accrued interest payable and other liabilities		62,154			60,021
Total liabilities		5,444,868			5,504,773
Shareholders’ equity
Preferred stock $0.01 par value: 50,000 shares authorized, 0 shares issued		—			—
Common stock-Class A $0.01 par value: 200,000 shares authorized, 36,405 issued and 32,475 outstanding and 36,212 issued and 33,051 outstanding, respectively.		364			362
Common stock-Class B $0.01 par value: 200,000 shares authorized, 19,454 issued and 18,654 outstanding and 19,647 issued and 19,047 outstanding, respectively.		194			196
Additional paid in capital		1,082,963			1,082,235
Retained earnings		118,899			107,485
Accumulated other comprehensive loss		(6,042	)		(7,528	)
Treasury stock, at cost, 4,730 and 3,761 shares, respectively		(92,622	)		(69,962	)
Total shareholders’ equity		1,103,756			1,112,788
Total Liabilities and Shareholders’ Equity	$	6,548,624		$	6,617,561

The accompanying notes are an integral part of these financial statements.

3

Capital Bank Financial Corp.

Consolidated Statements of Income

(Unaudited)

(Dollars in thousands, except per share data)	Three Months Ended
	March 31, 2014			March 31, 2013
Interest and dividend income
Loans, including fees	$	63,219		$	71,784
Investment securities:
Taxable interest income		4,547			3,279
Tax-exempt interest income		156			166
Dividends		15			15
Interest-bearing deposits in other banks		25			372
Other earning assets		581			490
Total interest and dividend income		68,543			76,106
Interest expense
Deposits		4,316			6,478
Long-term borrowings		1,704			2,500
Federal Home Loan Bank advances		61			1
Other borrowings		9			13
Total interest expense		6,090			8,992
Net Interest Income		62,453			67,114
Provision (reversal) for loan losses		(24	)		5,402
Net interest income after provision for loan losses		62,477			61,712
Non-Interest Income
Service charges on deposit accounts		5,436			6,342
Debit card income		2,844			2,836
Fees on mortgage loans originated and sold		759			1,241
Investment advisory and trust fees		1,261			283
FDIC indemnification asset expense		(2,165	)		(2,169	)
Investment securities gains, net		174			—
Other-than-temporary impairment losses on investments:
Gross impairment loss		—			—
Less: Impairments recognized in other comprehensive income		—			—
Net impairment losses recognized in earnings		—			—
Other income		3,060			2,376
Total non-interest income		11,369			10,909
Non-Interest Expense
Salaries and employee benefits		23,498			20,784
Stock-based compensation expense		728			1,577
Net occupancy, equipment and software expense		10,467			10,730
OREO valuation expense		3,573			6,590
Gain on sales of OREO		(721	)		(1,187	)
Foreclosed asset related expense		1,459			1,419
Loan workout expense		1,177			2,064
Conversion and merger related expense		—			113
Professional fees		2,004			2,648
Loss on extinguishment of debt		—			308
Computer services		3,253			3,100
CVR expense		767			2,883
FDIC assessments		1,629			1,803
Telecomunication expense		1,608			1,754
Other expense		5,782			6,727
Total non-interest expense		55,224			61,313
Income before income taxes		18,622			11,308
Income tax expense		7,208			5,543
Net income	$	11,414		$	5,765
Basic earnings per share	$	0.23		$	0.11
Diluted earnings per share	$	0.22		$	0.10

The accompanying notes are an integral part of these financial statements.

4

Capital Bank Financial Corp.

Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Net Income	$	11,414		$	5,765
Other comprehensive income before tax:
Unrealized holding gains on investment securities available-for-sale		2,388			1,072
Reclassification adjustment for gains realized in net income on securities available-for-sale		(296	)		—
Reclassification adjustment for losses amortized in net income on securities held-to-maturity		338			—
Other comprehensive income, before tax:		2,430			1,072
Tax effect		(944	)		(433	)
Other comprehensive income, net of tax:		1,486			639
Comprehensive income	$	12,900		$	6,404

The accompanying notes are an integral part of these financial statements.

5

Capital Bank Financial Corp.

Consolidated Statements of Changes in Shareholders’ Equity

(Unaudited)

(Dollars and shares in thousands)
	Shares Common Stock Class A Outstanding			Class A Stock		Shares Common Stock Class B Outstanding			Class B Stock			Additional Paid in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholder’s Equity
Balance, December 31, 2013		33,051		$	362		19,047		$	196		$	1,082,235		$	107,485	$	(7,528	)	$	(69,962	)	$	1,112,788
Net income		—			—		—			—			—			11,414		—			—			11,414
Other comprehensive income, net of tax expense of $944		—			—		—			—			—			—		1,486			—			1,486
Stock based compensation		—			—		—			—			728			—		—			—			728
Purchase of treasury stock		(769	)		—		(200	)		—			—			—		—			(22,660	)		(22,660	)
Conversion of shares		193			2		(193	)		(2	)		—			—		—						—
Balance, March 31, 2014		32,475		$	364		18,654		$	194		$	1,082,963		$	118,899	$	(6,042	)	$	(92,622	)	$	1,103,756
Balance, December 31, 2012		33,025			330		22,821			228			1,076,797			68,641		9,347			—			1,155,343
Net income		—			—		—			—			—			5,765		—			—			5,765
Other comprehensive income, net of tax expense of $433		—			—		—			—			—			—		639			—			639
Stock based compensation		—			—		—			—			1,577			—		—			—			1,577
Fractional shares		—			—		—			—			(2	)		—		—			—			(2	)
Purchase of treasury stock		(143	)		—		—			—			—			—		—			(2,455	)		(2,455	)
Conversion of shares		23			—		(23	)		—			—			—		—			—			—
Balance, March 31, 2013		32,905		$	330		22,798		$	228		$	1,078,372		$	74,406	$	9,986		$	(2,455	)	$	1,160,867

The accompanying notes are an integral part of these financial statements.

6

Capital Bank Financial Corp.

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Cash flows from operating activities
Net income	$	11,414		$	5,765
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of purchased credit impaired loans		(33,162	)		(44,985	)
Depreciation and amortization		4,814			5,280
Provision (reversal) for loan losses		(24	)		5,402
Deferred income tax		5,209			3,753
Net amortization of investment securities premium/discount		2,190			3,296
Net realized gains on sales of investment securities		(174	)		—
Stock-based compensation expense		728			1,577
Gain on sales of OREO		(721	)		(1,187	)
OREO valuation expenses		3,573			6,590
Other		(1,037	)		(644	)
Loss on extinguishment of debt		—			308
Mortgage loans originated for sale		(22,820	)		(40,848	)
Proceeds from sales of mortgage loans originated for sale		26,758			40,777
Fees on mortgage loans originated and sold		(759	)		(1,241	)
FDIC indemnification asset expense		2,165			2,169
Gain on sale/disposal of premises and equipment		(17	)		—
Proceeds from FDIC loss share agreements		4,898			5,566
Change in accrued interest receivable and other assets		671			2,762
Change in accrued interest payable and other liabilities		2,170			2,886
Net cash provided by (used in) operating activities		5,876			(2,774	)
Cash flows from investing activities
Purchases of investment securities available-for-sale		(335	)		(196,984	)
Sales of investment securities available-for-sale		800			—
Repayments of principal and maturities of investment securities available-for-sale		27,674			69,547
Repayments of principal and maturities of investment securities held-to-maturity		15,682			—
Net sales of FHLB and FRB stock		6,180			3,161
Net decrease in loans		25,647			112,013
Purchases of premises and equipment		(2,093	)		(2,452	)
Proceeds from sales of premises and equipment		3			—
Proceeds from sales of OREO		15,979			15,768
Net cash provided by investing activities		89,537			1,053
Cash flows from financing activities
Net increase (decrease) in demand, money market and savings accounts		72,205			(22,562	)
Net decrease in time deposits		(65,075	)		(151,606	)
Net increase (decrease) in federal funds purchased and securities sold under agreement to repurchase		5,602			(11,528	)
Net decrease in short term FHLB advances		(75,000	)		—
Net decrease of long term FHLB advances		(46	)		(45	)
Prepayments of long term borrowings		—			(34,500	)
Purchase of treasury stock		(22,660	)		(2,455	)
Net cash used in financing activities		(84,974	)		(222,696	)
Net increase (decrease) in cash and cash equivalents		10,439			(224,417	)
Cash and cash equivalents at beginning of period		164,441			734,874
Cash and cash equivalents at end of period	$	174,880		$	510,457
Supplemental disclosures of cash:
Interest paid	$	5,212		$	10,887
Cash collections of contractual interest on purchased credit impaired loans		22,620			33,837
Income taxes paid		320			800
Supplemental disclosures of noncash transactions:
OREO acquired through loan transfers and acquisitions	$	9,706		$	18,691

The accompanying notes are an integral part of these financial statements.

7

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

Principles of Consolidation and Nature of Operations

Capital Bank Financial Corp. (“CBF” or the “Company”; formerly known as North American Financial Holdings, Inc.) is a bank holding company incorporated in Delaware and headquartered in Florida whose business is conducted primarily through Capital Bank, National Association (“Capital Bank, NA” or the “Bank”). CBF has a total of 163 full service banking offices located in Florida, North and South Carolina, Tennessee and Virginia.

In September 2012, Capital Bank Corporation (“CBKN”), Green Bankshares Inc. (“GRNB”) and TIB Financial Corp. (“TIBB”), majority owned subsidiaries of the Company, merged with and into Capital Bank Financial Corp. with CBF continuing as the surviving corporation (the “Reorganization”). Upon completion of the Reorganization, the outstanding common shares held by the minority shareholders were converted into an aggregate of 3.7 million shares of CBF’s Class A common stock. The Reorganization was accounted for as a merger with CBF as the acquirer (which is the surviving entity for legal purposes).

On October 1, 2012, the Company completed its acquisition of Southern Community Financial Corporation (“SCMF” or “Southern Community”), a publicly held bank holding company headquartered in Winston Salem, North Carolina.

The accompanying Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and Regulation S-X. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statement presentation. In the opinion of management, all adjustments consisting of normal recurring accruals and disclosures considered necessary for a fair interim presentation have been included. All significant inter-company accounts and transactions have been eliminated in consolidation. For further information refer to the Company’s consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013.

Out of Period Adjustments

During the three months ended March 31, 2014, the Company recorded a correction of an error resulting from the state net operating loss that the Company was not entitled to subsequent to the 2011 Green Bankshares acquisition. The impact of this correction decreased deferred tax assets and increased goodwill by $2.5 million. After evaluating the quantitative and qualitative aspects of this error, the Company concluded that its prior period financial statements were not materially misstated.

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This update clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” This ASU allows for use of the proportional amortization method for qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as a component of income tax expense. This ASU provides for a practical expedient, which allows for amortization of only expected tax credits over the period tax credits are expected to be received. This method is permitted if it produces a measurement that is substantially similar to the measurement that would result from using both tax credits and other tax benefits. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This update requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. For public entities, this ASU is effective for fiscal years and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption on January 1, 2014 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

8

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

2. Earnings Per Common Share

Basic earnings per share is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under stock options and unvested restricted shares computed using the treasury stock method. Earnings per share have been computed based on the following:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Weighted average number of shares outstanding:
Basic		50,518		54,623
Dilutive effect of options oustanding		970		—
Dilutive effect of restricted shares		444		870
Diluted	$	51,932	$	55,493

The dilutive effect of stock options and unvested restricted shares are the only common stock equivalents for purposes of calculating diluted earnings per common share.

Weighted average anti-dilutive stock options and unvested restricted shares excluded from the computation of diluted earnings per share are as follows:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Anti-dilutive stock options		15		2,871
Anti-dilutive restricted shares		—		—

3. Investment Securities

Trading securities totaled $6.6 million and $6.3 million at March 31, 2014 and December 31, 2013, respectively.

The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at March 31, 2014, and December 31, 2013 are presented below:

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	127,912	$	—	$	678	$	127,234
Marketable equity securities		946		—		10		936
Mortgage-backed securities—residential issued by government sponsored entities		526,533		2,734		3,376		525,891
Industrial revenue bond		3,580		147		—		3,727
Total	$	658,971	$	2,881	$	4,064	$	657,788
Held-to-Maturity
U.S. Government agencies	$	14,777	$	—	$	322	$	14,455
State and political subdivisions—tax exempt		14,233		182		—		14,415
State and political subdivisions—taxable		543		—		2		541
Mortgage-backed securities—residential issued by government sponsored entities		419,578		1,697		947		420,328
Total	$	449,131	$	1,879	$	1,271	$	449,739

9

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

(Dollars in thousands)	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	133,647	$	363	$	785	$	133,225
Marketable equity securities		946		—		15		931
Mortgage-backed securities—residential issued by government sponsored entities		549,869		2,337		5,580		546,626
Industrial revenue bond		3,750		109		—		3,859
Collateralized debt obligations		505		295		—		800
Total	$	688,717	$	3,104	$	6,380	$	685,441
Held-to-Maturity
U.S. Government agencies	$	14,972	$	—	$	401	$	14,571
State and political subdivisions—tax exempt		14,201		27		129		14,099
State and political subdivisions—taxable		545		—		12		533
Mortgage-backed securities—residential issued by government sponsored entities		435,380		328		5,218		430,490
Total	$	465,098	$	355	$	5,760	$	459,693

Proceeds from sales and calls of securities were $0.8 million and $1.0 million for the three months ended March 31, 2014 and 2013, respectively. Gross gains of $0.3 million and $0 were realized on these sales and calls during the three months ended March 31, 2014 and 2013.

The estimated fair value of investment securities at March 31, 2014, by contractual maturity, is shown as follows. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Estimated Fair Value		Yield
Available-for-sale
Due in one year or less	$	—	$	—		—
Due after one year through five years		—		—		—
Due after five years through ten years		56,958		56,907		0.75	%
Due after ten years		74,534		74,054		0.60	%
Mortgage-backed securities—residential issued by government sponsored entities		526,533		525,891		1.66	%
		658,025		656,852		1.46	%
Marketable equity securities		946		936
Total	$	658,971	$	657,788
	Amortized Cost		Estimated Fair Value		Yield
Held-to-maturity
Due in one year or less	$	670	$	670		0.85	%
Due after one year through five years		1,126		1,138		2.00	%
Due after five years through ten years		8,687		8,788		3.28	%
Due after ten years		19,070		18,815		2.99	%
Mortgage-backed securities—residential issued by government sponsored entities		419,578		420,328		2.42	%
Total	$	449,131	$	449,739		2.46	%

10

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Securities with unrealized losses not recognized in income, and the period of time they have been in an unrealized loss position, are as follows:

(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
March 31, 2014
Available-for-Sale
Asset-backed securities	$	52,137	$	206	$	75,097	$	472	$	127,234	$	678
Marketable equity securities		936		10		—		—		936		10
Mortgage-backed securities—residential issued by government sponsored entities		305,368		3,376		—		—		305,368		3,376
Total	$	358,441	$	3,592	$	75,097	$	472	$	433,538	$	4,064
Held-to-Maturity
U.S. Government agencies	$	14,455	$	322	$	—	$	—	$	14,455	$	322
State and political subdivisions—tax exempt		111		—		—		—		111		—
State and political subdivisions—taxable		541		2		—		—		541		2
Mortgage-backed securities—residential issued by government sponsored entities		240,980		947		—		—		240,980		947
Total	$	256,087	$	1,271	$	—	$	—	$	256,087	$	1,271
(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2013
Available-for-Sale
Asset-backed securities	$	102,835	$	785	$	—	$	—	$	102,835	$	785
Marketable equity securities		931		15		—		—		931		15
Mortgage-backed securities—residential issued by government sponsored entities		339,565		5,580		—		—		339,565		5,580
Total	$	443,331	$	6,380	$	—	$	—	$	443,331	$	6,380
Held-to-Maturity
U.S. Government agencies	$	14,571	$	401	$	—	$	—	$	14,571	$	401
State and political subdivisions—tax exempt		10,489		129		—		—		10,489		129
State and political subdivisions—taxable		533		12		—		—		533		12
Mortgage-backed securities—residential issued by government sponsored entities		342,333		5,218		—		—		342,333		5,218
Total	$	367,926	$	5,760	$	—	$	—	$	367,926	$	5,760

The table below presents a rollforward of the other than temporary impairment credit losses recognized in earnings for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Beginning balance	$	714	$	660
Additions/Subtractions:
Credit losses recognized during the period		—		—
Ending balance	$	714	$	660

As of March 31, 2014, the Company’s security portfolio consisted of 138 securities, 90 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s mortgage-backed securities.

The majority of the mortgage-backed securities at March 31, 2014 and December 31, 2013 were issued by U.S. government-sponsored entities and agencies, institutions which the government has affirmed its commitment to support. Unrealized losses associated with these securities are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is not more likely than not that it will be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2014 or December 31, 2013.

Investment securities having carrying values of approximately $327.6 million and $313.5 million at March 31, 2014 and December 31, 2013, respectively, were pledged to secure public funds on deposit, securities sold under agreements to repurchase, and for other purposes as required by law.

11

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

4. Loans

Major classifications of loans, including loans held for sale, are as follows:

(Dollars in thousands)	March 31, 2014		December 31, 2013
Non-owner occupied commercial real estate	$	790,698	$	775,733
Other commercial construction and land		256,190		300,494
Multifamily commercial real estate		68,701		67,688
1-4 family residential construction and land		79,508		71,351
Total commercial real estate		1,195,097		1,215,266
Owner occupied commercial real estate		1,061,571		1,058,148
Commercial and industrial loans		806,359		803,736
Lease financing		2,513		2,676
Total commercial		1,870,443		1,864,560
1-4 family residential		801,573		804,322
Home equity loans		382,946		386,366
Other consumer loans		183,611		170,526
Total consumer		1,368,130		1,361,214
Other		112,815		110,989
Total loans	$	4,546,485	$	4,552,029

Total loans as of March 31, 2014 and December 31, 2013, include $4.8 million and $8.0 million of 1-4 family residential loans held for sale and $4.8 million and $3.8 million of deferred loan origination costs, respectively.

Other loans include $46.7 million, $41.3 million and $1.5 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively, as of March 31, 2014. Other loans include $49.7 million, $36.2 million and $2.2 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively, as of December 31, 2013.

Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. Covered loans are further broken out into (i) loans acquired with evidence of credit impairment (“Purchased Credit Impaired or PCI Loans”) and (ii) non-PCI loans. Loans originated by the Company and loans acquired through the purchase of CBKN, GRNB, SCMF and TIBB, are not subject to the loss sharing agreements and are classified as “non covered.” Additionally, certain consumer loans acquired through the acquisition of the First National Bank, Metro Bank and Turnberry Bank (collectively, the “Failed Banks”) from the FDIC, are specifically excluded from the loss sharing agreements.

The Company designates loans as PCI by evaluating both qualitative and quantitative factors. At the time of acquisition, the Company accounted for the PCI loans by segregating each portfolio into loan pools with similar risk characteristics. Over the lives of the acquired loans, the Company continues to estimate cash flows expected to be collected on each loan pool. The Company evaluates, at each balance sheet date, whether its estimates of the present value of the cash flows from the loan pools, determined using the effective interest rates, has decreased, such that the present value of such cash flows is less than the recorded investment of the pool, and if so, recognizes a provision for loan loss in its consolidated statement of income, unless interest rate driven. Additionally, if we have favorable changes in our estimates of cash flows expected to be collected for a loan pool such that the then-present value exceeds the recorded investment of that pool, we will first reverse any previously established allowance for loan losses for the pool.

12

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

If such estimate exceeds the amount of any previously established allowance, we will accrete future interest income over the remaining life of the pool at a rate which, when used to discount the expected cash flows, results in the then-present value of such cash flows equaling the recorded investment of the pool at the time of the revised estimate.

The table below presents a rollforward of accretable yield and income expected to be earned related to purchased credit-impaired loans:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	383,775		$	553,348
Accretion of income		(33,162	)		(44,985	)
Reclassification from nonaccretable difference		6,667			10,273
Other		(10,285	)		(27,399	)
Balance, end of period	$	346,995		$	491,237

The following table represents the periods we estimate the accretable yield will accrete into income based on the Company’s most recent estimates of cash flows for purchased credit-impaired loans:

(Dollars in thousands)
Periods ending December 31,
2014	$	84,561
2015		85,901
2016		56,292
2017		39,098
2018		26,416
Thereafter		54,727
Total	$	346,995

Nonaccretable difference represents contractually required payments in excess of the amount of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the PCI loans. Other represent reductions of accretable yield due to non-credit events such as interest rate reductions on variable rate loans and prepayment activity on loans.

The accretable yield is accreted into interest income over the estimated life of the PCI loans using the level yield method. The accretable yield will change due to changes in:

• The estimate of the remaining life of PCI loans which may change the amount of future interest income, and possibly principal, expected to be collected;

• The estimate of the amount of contractually required principal and interest payments over the estimated life that will not be collected (the nonaccretable difference); and

• Indices for PCI loans with variable rates of interest.

For PCI loans, the impact of loan modifications is included in the evaluation of expected cash flows for subsequent decreases or increases of cash flows. For variable rate PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the variable rates that were in effect at that time.

Because of the loss protection provided by the FDIC, the risks of covered loans and foreclosed real estate are significantly different from those assets not covered under the loss share agreement. Refer to Note 7 – Other Real Estate Owned, for the covered and non-covered balances of other real estate owned.

As a result of overall improvement of credit loss expectations in our most recent estimates of cash flows, substantially related to the Company’s legacy Southern Community and Green Bankshares portfolios, the Company recognized $0.8 million and $2.9 million in Contingent Value Right (“CVR”) expense for the three months ended March 31, 2014 and 2013, respectively.

13

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Non-covered Loans

The following is a summary of the major categories of non-covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	408,625	$	334,823	$	743,448
Other commercial construction and land		186,304		54,828		241,132
Multifamily commercial real estate		27,441		32,439		59,880
1-4 family residential construction and land		15,612		63,896		79,508
Total commercial real estate		637,982		485,986		1,123,968
Owner occupied commercial real estate		275,738		720,246		995,984
Commercial and industrial loans		122,605		674,323		796,928
Lease financing		—		2,513		2,513
Total commercial		398,343		1,397,082		1,795,425
1-4 family residential		329,317		409,900		739,217
Home equity loans		97,031		236,144		333,175
Other consumer loans		9,615		173,935		183,550
Total consumer		435,963		819,979		1,255,942
Other		45,282		66,354		111,636
Total loans	$	1,517,570	$	2,769,401	$	4,286,971
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	432,437	$	287,562	$	719,999
Other commercial construction and land		213,543		67,789		281,332
Multifamily commercial real estate		29,392		29,187		58,579
1-4 family residential construction and land		14,372		56,979		71,351
Total commercial real estate		689,744		441,517		1,131,261
Owner occupied commercial real estate		299,593		691,253		990,846
Commercial and industrial loans		129,961		663,563		793,524
Lease financing		—		2,676		2,676
Total commercial		429,554		1,357,492		1,787,046
1-4 family residential		349,060		384,663		733,723
Home equity loans		100,995		234,056		335,051
Other consumer loans		12,433		157,991		170,424
Total consumer		462,488		776,710		1,239,198
Other		47,888		61,279		109,167
Total loans	$	1,629,674	$	2,636,998	$	4,266,672

14

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Covered Loans

The following is a summary of the major categories of covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	47,250	$	—	$	47,250
Other commercial construction and land		15,058		—		15,058
Multifamily commercial real estate		8,821		—		8,821
Total commercial real estate		71,129		—		71,129
Owner occupied commercial real estate		65,587		—		65,587
Commercial and industrial loans		9,228		203		9,431
Total commercial		74,815		203		75,018
1-4 family residential		61,343		1,013		62,356
Home equity loans		14,835		34,936		49,771
Other consumer loans		61		—		61
Total consumer		76,239		35,949		112,188
Other		1,179		—		1,179
Total loans	$	223,362	$	36,152	$	259,514
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	55,734	$	—	$	55,734
Other commercial construction and land		19,162		—		19,162
Multifamily commercial real estate		9,109		—		9,109
Total commercial real estate		84,005		—		84,005
Owner occupied commercial real estate		67,302		—		67,302
Commercial and industrial loans		9,856		356		10,212
Total commercial		77,158		356		77,514
1-4 family residential		69,582		1,017		70,599
Home equity loans		15,201		36,114		51,315
Other consumer loans		102		—		102
Total consumer		84,885		37,131		122,016
Other		1,822		—		1,822
Total loans	$	247,870	$	37,487	$	285,357

15

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of March 31, 2014:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	89	$	89
Other commercial construction and land		—		9		—		—		—		391		400
Total commercial real estate		—		9		—		—		—		480		489
Owner occupied commercial real estate		—		2,290		—		—		—		1,999		4,289
Commercial and industrial loans		5		717		—		—		66		1,701		2,489
Total commercial		5		3,007		—		—		66		3,700		6,778
1-4 family residential		—		134		—		—		29		1,711		1,874
Home equity loans		292		237		—		—		1,183		2,392		4,104
Other consumer loans		—		1,956		—		—		—		546		2,502
Total consumer		292		2,327		—		—		1,212		4,649		8,480
Total loans	$	297	$	5,343	$	—	$	—	$	1,278	$	8,829	$	15,747
(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	465	$	1,577	$	5,835	$	42,910	$	—	$	—	$	50,787
Other commercial construction and land		5		1,221		8,444		46,968		—		—		56,638
Multifamily commercial real estate		2,235		—		248		1,862		—		—		4,345
1-4 family residential construction and land		—		—		—		2,305		—		—		2,305
Total commercial real estate		2,705		2,798		14,527		94,045		—		—		114,075
Owner occupied commercial real estate		1,443		1,058		5,729		28,862		—		—		37,092
Commercial and industrial loans		9		226		202		30,693		—		—		31,130
Total commercial		1,452		1,284		5,931		59,555		—		—		68,222
1-4 family residential		2,121		5,127		6,116		35,699		—		—		49,063
Home equity loans		2,906		2,144		1,662		5,892		—		—		12,604
Other consumer loans		—		247		28		249		—		—		524
Total consumer		5,027		7,518		7,806		41,840		—		—		62,191
Other		—		890		294		2,943		—		—		4,127
Total loans	$	9,184	$	12,490	$	28,558	$	198,383	$	—	$	—	$	248,615

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of December 31, 2013:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	90	$	90
Other commercial construction and land		—		—		—		—		—		563		563
Multifamily commercial real estate		—		305		—		—		—		—		305
1-4 family residential construction and land		—		—		—		—		—		1		1
Total commercial real estate		—		305		—		—		—		654		959
Owner occupied commercial real estate		—		20		—		—		—		3,394		3,414
Commercial and industrial loans		—		2		—		—		66		1,879		1,947
Total commercial		—		22		—		—		66		5,273		5,361
1-4 family residential		—		862		—		—		—		1,417		2,279
Home equity loans		146		1,046		—		—		1,270		2,324		4,786
Other consumer loans		—		1,800		—		—		—		806		2,606
Total consumer		146		3,708		—		—		1,270		4,547		9,671
Total loans	$	146	$	4,035	$	—	$	—	$	1,336	$	10,474	$	15,991

16

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	107	$	1,463	$	10,658	$	35,563	$	—	$	—	$	47,791
Other commercial construction and land		—		1,105		8,479		58,633		—		—		68,217
Multifamily commercial real estate		—		—		—		2,641		—		—		2,641
1-4 family residential construction and land		—		5		—		1,796		—		—		1,801
Total commercial real estate		107		2,573		19,137		98,633		—		—		120,450
Owner occupied commercial real estate		260		4,626		6,631		33,974		—		—		45,491
Commercial and industrial loans		—		249		1,597		29,819		—		—		31,665
Total commercial		260		4,875		8,228		63,793		—		—		77,156
1-4 family residential		227		6,696		10,824		37,646		—		—		55,393
Home equity loans		59		1,733		1,227		7,313		—		—		10,332
Other consumer loans		—		344		67		1,249		—		—		1,660
Total consumer		286		8,773		12,118		46,208		—		—		67,385
Other		—		433		954		4,745		—		—		6,132
Total loans	$	653	$	16,654	$	40,437	$	213,379	$	—	$	—	$	271,123

PCI loans are not classified as nonaccrual as they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for purchased credit-impaired loans and not to contractual interest payments.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed at origination and upon identification of a material change for all loans, on annual basis for commercial loans exceeding $0.5 million and at least quarterly for loans not rated Pass. The Company uses the following definitions for risk ratings:

• Pass —These loans range from superior quality with minimal credit risk to loans requiring heightened management attention but that are still an acceptable risk and continue to perform as contracted.

• Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard —Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

17

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at March 31, 2014:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	333,099	$	121	$	1,514	$	89	$	—	$	334,823
Other commercial construction and land		54,327		48		61		392		—		54,828
Multifamily commercial real estate		32,138		—		301		—		—		32,439
1-4 family residential construction and land		59,977		1,989		1,930		—		—		63,896
Total commercial real estate		479,541		2,158		3,806		481		—		485,986
Owner occupied commercial real estate		703,379		10,625		4,243		1,999		—		720,246
Commercial and industrial loans		661,795		5,335		5,629		1,767		—		674,526
Lease financing		2,513		—		—		—		—		2,513
Total commercial		1,367,687		15,960		9,872		3,766		—		1,397,285
1-4 family residential		408,766		28		381		1,739		—		410,913
Home equity loans		264,754		—		2,751		3,575		—		271,080
Other consumer loans		173,367		—		22		546		—		173,935
Total consumer		846,887		28		3,154		5,860		—		855,928
Other		66,091		—		263		—		—		66,354
Total loans	$	2,760,206	$	18,146	$	17,095	$	10,107	$	—	$	2,805,553

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at December 31, 2013:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	285,919	$	568	$	985	$	90	$	—	$	287,562
Other commercial construction and land		67,178		48		—		563		—		67,789
Multifamily commercial real estate		28,882		—		305		—		—		29,187
1-4 family residential construction and land		53,224		1,958		1,796		1		—		56,979
Total commercial real estate		435,203		2,574		3,086		654		—		441,517
Owner occupied commercial real estate		681,571		4,093		2,195		3,394		—		691,253
Commercial and industrial loans		651,585		1,183		9,206		1,945		—		663,919
Lease financing		2,676		—		—		—		—		2,676
Total commercial		1,335,832		5,276		11,401		5,339		—		1,357,848
1-4 family residential		384,235		28		—		1,417		—		385,680
Home equity loans		263,490		37		3,050		3,593		—		270,170
Other consumer loans		157,157		—		28		806		—		157,991
Total consumer		804,882		65		3,078		5,816		—		813,841
Other		61,006		—		273		—		—		61,279
Total loans	$	2,636,923	$	7,915	$	17,838	$	11,809	$	—	$	2,674,485

5. Allowance for Loan Losses

Activity in the allowance for loan losses for the three months ended March 31, 2014 and 2013 is as follows:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	56,851		$	57,262
Reversal of provision for loan losses on PCI loans		(2,488	)		(3,148	)
Provision for loan losses on non-PCI loans		2,464			8,550
Non-PCI loans charged-off		(1,956	)		(7,321	)
Recoveries of non-PCI loans previously charged-off		735			1,828
Balance, end of period	$	55,606		$	57,171

18

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2014 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2013		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2014
Non-owner occupied commercial real estate	$	4,635	$	(819	)	$	13		$	3,829
Other commercial construction and land		8,217		875			(200	)		8,892
Multifamily commercial real estate		320		83			—			403
1-4 family residential construction and land		1,558		2			(1	)		1,559
Total commercial real estate		14,730		141			(188	)		14,683
Owner occupied commercial real estate		4,450		(807	)		(113	)		3,530
Commercial and industrial loans		8,310		(189	)		77			8,198
Lease financing		3		(2	)		—			1
Total commercial		12,763		(998	)		(36	)		11,729
1-4 family residential		21,724		(1,323	)		(18	)		20,383
Home equity loans		3,869		1,054			(48	)		4,875
Other consumer loans		2,682		1,020			(639	)		3,063
Total consumer		28,275		751			(705	)		28,321
Other		1,083		82			(292	)		873
Total loans	$	56,851	$	(24	)	$	(1,221	)	$	55,606

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2013 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2012		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2013
Non-owner occupied commercial real estate	$	3,764	$	(279	)	$	(36	)	$	3,449
Other commercial construction and land		12,711		(273	)		442			12,880
Multifamily commercial real estate		348		(197	)		41			192
1-4 family residential construction and land		1,716		(178	)		21			1,559
Total commercial real estate		18,539		(927	)		468			18,080
Owner occupied commercial real estate		4,055		15			44			4,114
Commercial and industrial loans		7,490		7,392			(4,367	)		10,515
Total commercial		11,545		7,407			(4,323	)		14,629
1-4 family residential		15,740		1,032			28			16,800
Home equity loans		8,670		(3,372	)		(683	)		4,615
Other consumer loans		2,082		651			(563	)		2,170
Total consumer		26,492		(1,689	)		(1,218	)		23,585
Other		686		611			(420	)		877
Total loans	$	57,262	$	5,402		$	(5,493	)	$	57,171

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by class of loans and by impairment evaluation method as of March 31, 2014:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,651	$	2,178	$	872	$	333,951	$	455,875
Other commercial construction and land		—		1,501		7,391		—		54,828		201,362
Multifamily commercial real estate		—		105		298		—		32,439		36,262
1-4 family residential construction and land		—		1,030		529		—		63,896		15,612
Total commercial real estate		—		4,287		10,396		872		485,114		709,111
Owner occupied commercial real estate		—		2,720		810		3,389		716,857		341,325
Commercial and industrial loans		426		6,563		1,209		5,364		669,162		131,833
Lease financing		—		1		—		—		2,513		—
Total commercial		426		9,284		2,019		8,753		1,388,532		473,158
1-4 family residential		3		2,512		17,868		175		405,905		390,660
Home equity loans		17		474		4,384		757		270,323		111,866
Other consumer loans		8		2,859		196		162		173,773		9,676
Total consumer		28		5,845		22,448		1,094		850,001		512,202
Other		—		324		549		—		66,354		46,461
Total loans	$	454	$	19,740	$	35,412	$	10,719	$	2,790,001	$	1,740,932

(1) Loans collectively evaluated for impairment include $425.9 million of acquired loans which are presented net of unamortized purchase discounts of $15.5 million.

19

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and by impairment evaluation method as of December 31, 2013:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,615	$	3,020	$	877	$	286,685	$	488,171
Other commercial construction and land		—		1,201		7,016		—		67,789		232,705
Multifamily commercial real estate		—		116		204		—		29,187		38,501
1-4 family residential construction and land		—		1,065		493		—		56,979		14,372
Total commercial real estate		—		3,997		10,733		877		440,640		773,749
Owner occupied commercial real estate		—		2,611		1,839		4,844		686,409		366,895
Commercial and industrial loans		507		6,370		1,433		9,623		654,296		139,817
Lease financing		—		3		—		—		2,676		—
Total commercial		507		8,984		3,272		14,467		1,343,381		506,712
1-4 family residential		—		2,279		19,445		—		377,668		418,642
Home equity loans		—		398		3,471		—		270,170		116,196
Other consumer loans		5		2,313		364		207		157,784		12,535
Total consumer		5		4,990		23,280		207		805,622		547,373
Other		—		468		615		273		61,006		49,710
Total loans	$	512	$	18,439	$	37,900	$	15,824	$	2,650,649	$	1,877,544

(1) Loans collectively evaluated for impairment include $435.0 million of acquired loans which are presented net of unamortized purchase discounts of $16.4 million.

Troubled Debt Restructurings

If a borrower is experiencing financial difficulty, the Bank may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. A troubled debt restructuring (“TDR”) typically involves either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date(s) with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Upon modification of a loan, the Bank measures the related impairment as the excess of the recorded investment in the loan over the discounted expected future cash flows. The present value of expected future cash flows is discounted at the loan’s effective interest rate. If the impairment analysis results in a loss, an allowance for loan losses is established for the loan. During the three months ended March 31, 2014, loans modified in TDRs were nominal. Because of the immateriality of the amount and the nature of the modifications, the modifications did not have a material impact on the Company’s consolidated financial statements or on the determination of the allowance for loan losses at March 31, 2014. The Company had loans modified in TDRs with recorded investments of $0.3 million and $0 for the three months ended March 31, 2014 and 2013, respectively.

6. FDIC Indemnification Asset

The Company has recorded an indemnification asset related to loss sharing agreements entered into with the FDIC wherein the FDIC will reimburse the Company for certain amounts related to certain acquired loans and other real estate owned should the Company experience a loss. Under the loss sharing arrangements, the FDIC has agreed to absorb 80% of all future credit losses and workout expenses on these assets which occur prior to the expiration of the loss sharing agreements. These agreements resulted from the purchase of the Failed Banks.

The loss sharing agreements consists of three (one for each Failed Bank) single-family shared-loss agreements and three (one for each Failed Bank) commercial and other loans shared-loss agreements. The single family shared-loss agreements provide for FDIC loss sharing and our reimbursement for recoveries to the FDIC for ten years from July 16, 2010 for single-family residential loans. The commercial shared-loss agreements provide for FDIC loss sharing for five years from July 16, 2010 and our reimbursement for recoveries to the FDIC for eight years from July 16, 2010 for all other covered assets.

The following is a summary of the activity in the FDIC indemnification asset:

(Dollars in thousands)
Balance, December 31, 2013	$	33,610
Indemnification asset income		345
Amortization of indemnification asset		(2,510	)
Cash received on reimbursable losses		(2,701	)
Balance, March 31, 2014	$	28,744
Balance, December 31, 2012	$	49,417
Indemnification asset income		(492	)
Amortization of indemnification asset		(1,677	)
Cash received on reimbursable losses		(2,987	)
Balance, March 31, 2013	$	44,261

20

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

7. Other Real Estate Owned

The activity within Other Real Estate Owned (“OREO”) for the three months ended March 31, 2014 and 2013 is presented in the table below. Ending balances for OREO covered by loss sharing agreements with the FDIC for these periods were $18.6 million and $33.0 million, respectively.

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	129,396		$	154,093
Real estate acquired from borrowers		9,706			18,691
Valuation allowance		(3,573	)		(6,590	)
Properties sold and other		(15,259	)		(14,581	)
Balance, end of period	$	120,270		$	151,613

8. Federal Home Loan Bank Advances and Short-Term Borrowings

Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, and advances from the Federal Home Loan Bank (“FHLB”).

The Bank has securities sold under agreements to repurchase with customers. These agreements are collateralized by investment securities of the United States Government or its agencies which are chosen by the Bank. The amounts outstanding at March 31, 2014 and December 31, 2013 were $30.5 million and $24.9 million, respectively.

The Bank invests in FHLB stock for the purpose of establishing credit lines with the FHLB. The credit availability to the Bank is based on a percentage of the Bank’s total assets as reported on the most recent quarterly financial information submitted to the regulators subject to the pledging of sufficient collateral.

The Bank’s collateral with the FHLB consists of a blanket floating lien pledge of the Bank’s residential 1-4 family mortgage, multifamily, home equity line of credit and commercial real estate secured loans. The amounts of eligible collateral at March 31, 2014 and December 31, 2013, provided for incremental borrowing availability of up to $209.7 million and $95.4 million, respectively.

At March 31, 2014 and December 31, 2013 the bank had $25.6 million in letters of credit issued by the FHLB, of which $25.2 million are used as collateral in lieu of pledging securities to the State of Florida.

The advances as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
Contractual Outstanding Amount March 31, 2014		Contractual Outstanding Amount December 31, 2013		Maturity Date	Fixed Contractual Rate
$	20,000	$	95,000	May 16, 2014	0.36%
	688		724	November 6, 2017	0.50%
	543		554	February 10, 2026	0.00%
$	21,231	$	96,278

9. Long Term Borrowings

Structured repurchase agreements

The repurchase agreements as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
March 31, 2014 Carrying Amount		December 31, 2013 Carrying Amount		Contractual Amount		Maturity Date	Contractual Rate
$	10,754	$	10,823	$	10,000	November 6, 2016	4.75%
	10,772		10,833		10,000	March 30, 2017	4.50%
	10,490		10,521		10,000	December 18, 2017	3.79%
	10,463		10,492		10,000	December 18, 2017	3.72%
	10,744		10,780		10,000	March 22, 2019	3.56%
$	53,223	$	53,449	$	50,000

21

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

These repurchase agreements have a weighted-average rate of 4.06% at March 31, 2014 and December 31, 2013 and are collateralized by $67.0 million and $62.1 million, respectively, of mortgage-backed securities.

Subordinated Debentures

Through its acquisitions of CBKN, GRNB, SCMF and TIBB, the Company assumed thirteen separate pooled offerings of trust preferred securities. The Company is not considered the primary beneficiary of the trusts (variable interest entities), therefore the trusts are not consolidated in the Company’s consolidated financial statements, but rather the subordinated debentures are presented as liabilities. The Trusts consist of wholly-owned statutory trust subsidiaries for the purpose of issuing the trust preferred securities. The Trusts used the proceeds from the issuance of trust preferred securities to acquire junior subordinated deferrable interest debentures of the Company. The trust preferred securities essentially mirror the debt securities, carrying a cumulative preferred dividend equal to the interest rate on the debt securities. The debt securities and the trust preferred securities each have 30-year lives. The trust preferred securities and the debt securities are callable by the companies or the Trust, at their respective option after a period of time as outlined below, and at varying premiums and sooner in specific events, subject to prior approval by the Federal Reserve Board (“FRB”), if then required. Deferral of interest payments on the trust preferred securities is allowed for up to 60 months without being considered an event of default. On March 18, 2013, the Company called and redeemed $34.5 million of trust preferred securities issued by SCMF, which had a fixed interest rate of 7.95%. The prepayment resulted in a $0.3 million loss on extinguishment of debt.

(Dollars in thousands)
Date of Offering	Original Face		Carrying Amount March 31, 2014		Carrying Amount December 31, 2013		Interest Rate as of March 31, 2014	Maturity Date
July 31, 2001	$	5,000	$	3,863	$	3,851	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
July 31, 2001		4,000		2,651		2,636	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
June 26, 2003		10,000		5,944		5,921	3.34% (3 Month LIBOR+310 bps)	June 26, 2033
September 25, 2003		10,000		6,405		6,368	3.09% (3 Month LIBOR+285 bps)	September 25, 2033
December 30, 2003		10,000		5,728		5,704	3.09% (3 Month LIBOR+285 bps)	December 30, 2033
June 28, 2005		3,000		1,557		1,545	1.91% (3 Month LIBOR+168 bps)	June 28, 2035
December 22, 2005		10,000		4,519		4,491	1.63% (3 Month LIBOR+140 bps)	March 15, 2036
December 28, 2005		13,000		6,510		6,458	1.77% (3 Month LIBOR+154 bps)	March 15, 2036
June 23, 2006		20,000		11,276		11,206	1.79% (3 Month LIBOR+155 bps)	July 7, 2036
May 16, 2007		56,000		28,261		28,050	1.88% (3 Month LIBOR+165 bps)	June 15, 2037
June 15, 2007		10,000		5,350		5,327	1.67% (3 Month LIBOR+143 bps)	September 6, 2037
	$	151,000	$	82,064	$	81,557

Other Subordinated Debentures

Through the acquisition of CBKN, the Company assumed $3.4 million in aggregate principal amount of subordinated promissory notes with a fixed interest rate of 10.0% due March 18, 2020. The notes had a carrying value of $3.6 million as of March 31, 2014 and December 31, 2013. The Company may prepay the notes at any time after March 18, 2015 subject to regulatory approval and compliance with applicable law. The Company’s obligation to repay the notes is subordinate to all indebtedness owed by the Company to its current and future secured creditors and general creditors and certain other financial obligations of the Company.

At March 31, 2014, the maturities of long-term borrowings were as follows:

(Dollars in thousands)	Fixed Rate		Floating Rate		Total
Due in 2014 through 2015	$	—	$	—	$	—
Due in 2016		10,754		—		10,754
Due in 2017		31,725		—		31,725
Due in 2018		—		—		—
Thereafter		14,294		82,064		96,358
	$	56,773	$	82,064	$	138,837

10. Shareholders’ Equity and Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements results in certain discretionary and required actions by regulators that could have an effect on the Company’s operations. The regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

22

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

To be considered well capitalized or adequately capitalized as defined under the regulatory framework for prompt corrective action, the Bank must maintain minimum Tier 1 leverage, Tier 1 risk-based and Total Risk-based ratios. At March 31, 2014 and December 31, 2013 the Bank maintained capital ratios exceeding the requirement to be considered well capitalized. These minimum ratios along with the actual ratios for the Company and the Bank are presented in the following tables.

(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
March 31, 2014	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $252,747	³ 4.0%	$	944,237	14.9%
Capital Bank, N.A.	³ $315,423	³ 5.0%	³ $252,338	³ 4.0%		864,354	13.7%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $191,951	³ 4.0%	$	944,237	19.7%
Capital Bank, N.A.	³ $287,549	³6.0%	³ $191,699	³ 4.0%		864,354	18.0%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $383,902	³ 8.0%	$	1,003,800	20.9%
Capital Bank, N.A.	³ $479,248	³ 10.0%	³ $383,398	³ 8.0%		923,760	19.3%
(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
December 31, 2013	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $254,126	³ 4.0%	$	949,619	14.9%
Capital Bank, N.A.	³ $317,562	³ 5.0%	³ $254,050	³ 4.0%		849,520	13.4%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $192,428	³ 4.0%	$	949,619	19.7%
Capital Bank, N.A.	³ $288,410	³ 6.0%	³ $192,273	³ 4.0%		849,520	17.7%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $384,856	³ 8.0%	$	1,010,422	21.0%
Capital Bank, N.A.	³ $480,683	³ 10.0%	³ $384,546	³ 8.0%		910,162	18.9%

In August 2010, Capital Bank, NA entered into an Operating Agreement with the Office of the Comptroller of the Currency (the “OCC Operating Agreement”). At present, the OCC Operating Agreement requires Capital Bank, NA to maintain total capital equal to at least 12% of risk-weighted assets, Tier 1 capital equal to at least 11% of risk-weighted assets and a minimum leverage ratio of 10% (Tier 1 Capital ratio).

As of March 31, 2014 and December 31, 2013, the Company and the Bank met all capital requirements to which they were subject. Tier 1 Capital for the Company includes trust preferred securities to the extent allowable.

Currently, the OCC Operating Agreement prohibited Capital Bank, NA from paying a dividend to us for three years following our acquisition of the Failed Banks (which period elapsed in July 2013) and, once the three-year period has elapsed, imposes other restrictions on Capital Bank’s ability to pay dividends, including requiring prior approval from the OCC before any distribution is made. On September 5, 2013, the OCC approved a dividend of $105.0 million to the Company by its subsidiary Capital Bank N.A.

Dividends that may be paid by a national bank are limited to that bank’s retained net profits for the preceding two years plus retained net profits up to the date of any dividend declaration in the current calendar year. As of March 31, 2014, the bank had $58.7 million available for dividends.

Share Repurchases

On February 5, 2013, the Board of Directors authorized the repurchase of up to $50.0 million of the Company’s common stock. The Company has repurchased $50.0 million, or 2,839,441 common shares at an average price of $17.60 per share, completing the aforementioned stock repurchase authorization.

On September 16, 2013, the Board of Directors authorized the repurchase of up to an additional $100.0 million of the Company’s common stock. Stock repurchases may be made from time to time, on the open market or in privately negotiated transactions. The approved stock repurchase program does not obligate the Company to repurchase any particular amount of shares, and the program may be extended, modified, suspended, or discontinued at any time. During the three months ended March 31, 2014, the Company repurchased $22.7 million, or 968,865 common shares at an average price of $23.39 per share.

23

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Under this plan, the Company has repurchased $42.6 million, or 1,890,741 common shares at an average price of $22.55 per share. The Company accounts for treasury stock using the cost method as a reduction of shareholders’ equity in the accompanying consolidated balance sheets and statement of changes in shareholders’ equity. As of March 31, 2014, the Company had $57.4 million of remaining availability for future share repurchases under the current authorization.

11. Stock-Based Compensation

As of March 31, 2014, the Company had two compensation plans, the 2010 Equity Incentive Plan (the “2010 Plan”) and the 2013 Omnibus Compensation Plan (the “2013 Plan”) under which shares of its common stock are issuable in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock bonus awards and other incentive awards. The 2010 Plan was replaced by the 2013 Plan and no further awards may be made pursuant to the 2010 Plan.

The 2013 Plan was effective May 22, 2013 and expires on May 22, 2023, the tenth anniversary of the effective date. The maximum number of shares of common stock of the Company that may be optioned or awarded under this plan is 2,639,000 shares. Awards under this plan may be made to any person selected by the Compensation Committee.

The following table summarizes the components and classification of stock-based compensation expense for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Stock options	$	195	$	83
Restricted stock		533		1,494
Total stock-based compensation expense	$	728	$	1,577

The tax benefit related to stock-based compensation expense arising from restricted stock awards and non-qualified stock options was $0.3 million and $0.6 million for the three months ended March 31, 2014 and 2013, respectively.

Stock Options

Under the 2010 and 2013 Plan, the exercise price for common stock must equal at least 100% of the fair market value of the stock on the day an option is granted. The exercise price under an incentive stock option granted to a person owning stock representing more than 10% of the common stock must equal at least 110% of the fair market value at the date of grant, and such option is not exercisable after five years from the date the incentive stock option was granted. The Board of Directors may, at its discretion, provide that an option not be exercised in whole or in part for any period or periods of time as specified in the option agreements. No option may be exercised after the expiration of ten years from the date it is granted. No stock options were granted under these plans during the three months ended March 31, 2014 and 2013.

ASC 718 requires the recognition of stock-based compensation for the number of awards that are ultimately expected to vest. During the three months ended March 31, 2014 and 2013, stock based compensation expense was recorded based upon assumptions that the Company would experience no forfeitures. This assumption of forfeitures will be reassessed in subsequent periods based on historical forfeiture rates and may change based on new facts and circumstances. Any changes in assumptions will be accounted for prospectively in the period of change.

A summary of the stock option activity for the three months ended March 31, 2014 and 2013 is as follows:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
Balance January 1,		3,124	$	20.50		2,890	$	21.39
Granted		—		—		—		—
Excercised		—		—		—		—
Expired or Forfeited		2		301.94		3		178.57
Balance March 31,		3,122	$	20.40		2,887	$	21.25

The weighted average remaining term for outstanding stock options was approximately 6.4 years at March 31, 2014. The aggregate intrinsic value at March 31, 2014 was $16.4 million and $14.6 million for stock options outstanding and exercisable, respectively. The aggregate intrinsic value at March 31, 2013 was $0 for stock options outstanding and exercisable. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company’s common stock as of the reporting date.

24

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Options outstanding at March 31, 2014 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$18.00		244		9.14 years	$	18.00		—	$	—
$20.00		2,864		6.18 years		20.00		2,864		20.00
$28.44 - $2,026.00		14		3.56 years		140.70		14		140.70
$18.00 - $2,026.00		3,122		6.40 years	$	20.40		2,878	$	20.60

Options outstanding at March 31, 2013 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$20.00		2,864		7.18 years	$	20.00		2,864	$	20.00
$28.44 - $2,026.00		23		3.35 years		173.92		23		178.58
$20.00 - $2,026.00		2,887		7.15 years	$	21.25		2,887	$	21.24

Restricted Stock

Restricted stock provides the grantee with voting, dividend and anti-dilution rights equivalent to common shareholders, but is restricted from transfer until vested, at which time all restrictions are removed. The terms of the restricted stock awards granted to employees provide for vesting upon the achievement of stock price goals as follows: (1) one-third at $25.00 per share; (2) one-third at $28.00 per share; and (3) one-third at $32.00 per share. Achievement of stock price goals is generally defined as the average closing price of the shares for any consecutive 30-day trading period exceeding the applicable price target. No restricted stock was granted under the 2010 and 2013 Plans during the three months ended March 31, 2014 and 2013.

The value of the restricted stock is being amortized on a straight-line basis over the implied service periods.

The following table summarizes unvested restricted stock activity for the three months ended March 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Grant- Date Fair Value Per Share		Shares		Weighted Average Grant- Date Fair Value Per Share
Balance January 1,		1,216	$	14.28		1,212	$	14.27
Granted		—		—		—		—
Vested or released		—		—		—		—
Expired or forfeited		—		—		—		—
Balance March 31,		1,216	$	14.28		1,212	$	14.27

25

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

12. Income Taxes

A reconciliation of income tax computed at applicable Federal statutory income tax rates to total income tax expense reported is as follows for the three months ended March 31, 2014 and 2013:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Income before income taxes	$	18,622		$	11,308
Income taxes computed at Federal statutory tax rate		6,518			3,958
Effect of:
State taxes (net of federal benefit)		709			434
Tax-exempt interest income, net		(175	)		—
CVR expense		268			1,009
Other, net		(112	)		142
Total income tax expense	$	7,208		$	5,543

The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates. For the three months ended March 31, 2014 and 2013, the effective income tax rates were 38.71% and 49.02% respectively. The change in effective income tax rates was mainly due to the impact of the CVR expense.

For the three months ended March 31, 2014 and 2013, the change in value of the CVR and related expense resulted from the overall improvement in our most recent estimates of cash flows, substantially related to the Company’s legacy Southern Community and Green Bankshares portfolios. The potential payments resulting from CVRs issued as a part of these acquisitions, which were non-taxable transactions, are considered by the Internal Revenue Service as additional consideration to the former shareholders. Accordingly, the expense associated with changes in estimated value of the CVRs is not deductible for income tax purposes.

The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of the states of Florida, South and North Carolina and Tennessee. The net deferred tax assets as of March 31, 2014 and December 31, 2013 were $158.1 million and $166.8 million, respectively. A valuation allowance related to deferred tax assets is required when it is considered more likely than not that all or part of the benefit related to such assets will not be realized. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence in concluding that no valuation allowance was necessary at March 31, 2014 and December 31, 2013.

At March 31, 2014 and December 31, 2013, the Company had $97.5 million and $101.9 million of gross federal and state net operating loss carryforwards, respectively, which begin to expire after 2029 if unused and are subject to an annual cumulative limitation of $10.9 million.

At March 31, 2014 and December 31, 2013, the Company had no amounts recorded for uncertain tax positions.

13. Fair Value

FASB guidance on fair value measurements defines fair value, establishes a framework for measuring fair value, and requires fair value disclosures for certain assets and liabilities measured at fair value on a recurring and non-recurring basis.

This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability.

This guidance establishes a fair value hierarchy for disclosure of fair value measurements to maximize the use of observable inputs, that is, inputs that reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of the reporting entity. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

26

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Cash & cash equivalents

For cash & cash equivalents, the carrying value is primarily utilized as a reasonable estimate of fair value.

Derivative financial instruments

Fair values for interest rate swaps, foreign exchange contracts, forward loan sales agreements and interest rate caps are based upon the amounts required to settle the contracts. Fair values for commitments to originate loans held for sale are based on fees currently charged to enter into similar agreements. Fair values for fixed-rate commitments also consider the difference between current levels of interest rates and the committed rates.

Valuation of Investment Securities

The fair values of available for sale, held-to-maturity and trading securities are determined by: 1) obtaining quoted prices on nationally recognized securities exchanges when available (Level 1 inputs); 2) matrix pricing, which is a mathematical technique widely used in the financial markets to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs); and 3) for certain corporate debt securities that are not actively traded, custom discounted cash flow modeling (Level 3 inputs).

As of March 31, 2014, Capital Bank held industrial revenue bonds which are floating rate issues. Since there is no active secondary market for the trading of the bonds, the Company has developed a model to estimate fair value. This model determines an appropriate discount rate for the bonds based on current market rates for liquid corporate bonds with an equivalent credit rating plus an estimated illiquidity factor, and calculates the present value of expected future cash flows using this discount rate.

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at the lower of cost or estimated fair value. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustment for mortgage loans held for sale is classified as nonrecurring Level 2.

Valuation of Impaired Loans and Other Real Estate Owned

The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses and other real estate owned is generally based on recent real estate appraisals and other available observable market information. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The Company generally uses independent external appraisers in this process who routinely make adjustments to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The Company’s policy is to update appraisals, at a minimum, annually for classified assets, which include collateral dependent loans and OREO. We consider appraisals dated within the past 12 months to be current and do not typically make adjustments to such appraisals. In the Company’s process for reviewing third-party prepared appraisals, any differences of opinion on values, assumptions or adjustments to comparable sales data are typically reconciled directly with the independent appraiser prior to acceptance of the final appraisal.

Sensitivity to Changes in Significant Unobservable Inputs

As discussed above, as of March 31, 2014, the Company owned industrial revenue bonds, which require recurring fair value estimates categorized within level 3 of the fair value hierarchy. The significant unobservable inputs used in the fair value measurement of these securities are incorporated in the discounted cash flow modeling valuation. Rates utilized in the modeling of these securities are estimated based upon a variety of factors including the market yields of other non-investment grade corporate debt. Significant changes in any inputs in isolation would result in significantly different fair value estimates.

27

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Assets and Liabilities Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,562	$	4,337	$	2,225	$	—
Available-for-sale securities
Asset-backed securities		127,234		—		127,234		—
Mortgage-backed securities—residential		525,891		—		525,891		—
Industrial revenue bonds		3,727		—		—		3,727
Marketable equity securities		936		—		936		—
Available-for-sale securities		657,788		—		654,061		3,727
Gross asset value of derivatives		7		—		7		—
Liabilities
Gross liability value of derivatives	$	574	$	—	$	574	$	—

There were no transfers of assets and liabilities between levels of the fair value hierarchy during the three months ended March 31, 2014.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,348	$	4,477	$	1,871	(1)	$	—
Available-for-sale securities
Asset-backed securities		133,225		—		133,225			—
Mortgage-backed securities—residential		546,626		—		546,626			—
Industrial revenue bonds		3,859		—		—			3,859
Marketable equity securities		931		—		931	(1)		—
Collateralized debt obligations		800		—		800			—
Available-for-sale securities		685,441		—		681,582			3,859
Gross asset value of derivatives		15		—		15			—
Liabilities
Gross liability value of derivatives	$	1,330	$	—	$	1,330		$	—

(1) Transferred from Level 1 to Level 2 due to limited observable market data.

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2014.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Industrial Revenue Bonds
Beginning balance, January 1, 2014	$	3,859
Principal reduction		(170	)
Included in other comprehensive income		38
Ending balance, March 31, 2014	$	3,727

28

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2013.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Corporate Bonds		Industrial Revenue Bonds		Collateralized Debt Obligations
Beginning balance, January 1, 2013	$	26	$	3,800	$	297
Included in other comprehensive income		—		57		10
Ending balance, March 31, 2013	$	26	$	3,857	$	307

Quantitative Information about Recurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,727		Discounted cash flow	Discount rate	3.7%-3.8%
					Illiquidity factor	0.5%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,859		Discounted cash flow	Discount rate	3.7%-3.9%
					Illiquidity factor	0.5%

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Valuation of Impaired Loans and Other Real Estate Owned

The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses and other real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	100,821
Other repossesed assets		—		85		—
Impaired loans		—		—		1,533

Other real estate owned measured at fair value as of March 31, 2014 had a carrying amount of $121.5 million, less valuation allowances totaling $20.7 million. Other repossessed assets are primarily comprised of repossessed vehicles and equipment and are measured at fair value as of the date of repossession.

29

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	118,579
Other repossesed assets		—		108		—
Impaired loans		—		—		1,332

Other real estate owned measured at fair value as of December 31, 2013 had a carrying amount of $138.4 million, less valuation allowances totaling $19.8 million. Other repossessed assets are primarily comprised of repossessed vehicles and equipment and are measured at fair value as of the date of repossession.

Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	100,821	Fair value of property	Appraised value less cost to sell	6%-10%
Impaired loans		1,533	Fair value of collateral	Appraised value less cost to sell	6%-8%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	118,579	Fair value of property	Appraised value less cost to sell	7%-10%
Impaired loans		1,332	Fair value of collateral	Appraised value less cost to sell	8%

Carrying amount and estimated fair values of financial instruments were as follows:

(Dollars in thousands)	Fair Value Measurement
March 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	174,880	$	174,880	$	174,880	$	—	$	—
Trading securities		6,562		6,562		4,337		2,225		—
Investment securities available-for-sale		657,788		657,788		—		654,061		3,727
Investment securities held-to-maturity		449,131		449,739		—		449,739		—
Loans, net		4,490,879		4,672,988		—		4,833		4,668,155
Receivable from FDIC		5,832		5,832		—		5,832		—
FDIC indemnification asset		28,744		28,744		—		—		28,744
Other (1)		38,195		38,195		—		—		38,195
Gross asset value of derivatives		7		7		—		7		—
Total financial assets	$	5,852,018	$	6,034,735	$	179,217	$	1,116,697	$	4,738,821
Financial Liabilities
Noncontractual deposits	$	3,809,771	$	3,809,771	$	—	$	—	$	3,809,771
Contractual deposits		1,382,422		1,382,909		—		—		1,382,909
Federal Home Loan Bank advances		21,231		21,161		—		21,161		—
Short-term borrowings		30,453		30,453		—		30,453		—
Long-term borrowings		53,223		55,358		—		—		55,358
Subordinated debentures		85,614		98,695		—		—		98,695
Gross liability value of derivatives		574		574		—		574		—
Total financial liabilities	$	5,383,288	$	5,398,921	$	—	$	52,188	$	5,346,733

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

30

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

(Dollars in thousands)	Fair Value Measurement
December 31, 2013	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	164,441	$	164,441	$	164,441	$	—	$	—
Trading securities		6,348		6,348		4,477		1,871		—
Investment securities available-for-sale		685,441		685,441		—		681,582		3,859
Investment securities held-to-maturity		465,098		459,693		—		459,693		—
Loans, net		4,495,178		4,681,554		—		8,012		4,673,542
Receivable from FDIC		7,624		7,624		—		7,624		—
FDIC indemnification asset		33,610		33,610		—		—		33,610
Other (1)		44,088		44,088		—		—		44,088
Gross asset value of derivatives		15		15		—		15		—
Total financial assets	$	5,901,843	$	6,082,814	$	168,918	$	1,158,797	$	4,755,099
Financial Liabilities
Noncontractual deposits	$	3,737,566	$	3,737,566	$	—	$	—	$	3,737,566
Contractual deposits		1,447,497		1,448,032		—		—		1,448,032
Federal Home Loan Bank advances		96,278		96,241		—		96,241		—
Short-term borrowings		24,850		24,850		—		24,850		—
Long-term borrowings		53,449		55,861		—		—		55,861
Subordinated debentures		85,112		100,795		—		—		100,795
Gross liability value of derivatives		1,330		1,330		—		1,330		—
Total financial liabilities	$	5,446,082	$	5,464,675	$	—	$	122,421	$	5,342,254

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

The methods and assumptions used to estimate fair value are described as follows:

Carrying amount is the estimated fair value for cash and cash equivalents, receivable from FDIC, derivatives, noncontractual demand deposits and certain short-term borrowings. As it is not practicable to determine the fair value of Federal Reserve, Federal Home Loan Bank stock, FDIC indemnification asset and correspondent bank’s stocks due to restrictions placed on transferability, the estimated fair value is equal to their carrying amount. Security fair values are based on market prices or dealer quotes and, if no such information is available, on the rate and term of the security and information about the issuer including estimates of discounted cash flows when necessary. For fixed rate loans or contractual deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life, adjusted for the allowance for loan losses. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of long-term debt is based on current rates for similar financing. The fair value of off-balance sheet items that includes commitments to extend credit to fund commercial, consumer, real estate construction and real estate-mortgage loans and to fund standby letters of credit is considered nominal.

14. Derivative Instruments

The Company has derivative financial instruments acquired in its purchase of SCMF, primarily in the form of interest rate swaps. The forward loan sales contracts are derived from loans held for sale or in the Company’s pipeline. These transactions involve both credit and market risk.

The Company’s derivative instrument contracts which are recorded in other assets and other liabilities on the Company’s balance sheet consist of the following:

(Dollars in thousands)	March 31, 2014				December 31, 2013
	Fair Value		Notional Amount		Fair Value		Notional Amount
Assets
Interest rate cap contracts (matured in 2014)	$	—	$	—	$	—	$	12,500
Forward loan sales contracts (maturing in 2014)		7		4,925		15		4,215
	$	7	$	4,925	$	15	$	16,715
Liabilities
Interest rate swaps associated with certificates of deposits (maturing in 2040)	$	548	$	25,000	$	1,320	$	25,000
Forward loan sales contracts (maturing in 2014)		26		8,367		10		3,545
	$	574	$	33,367	$	1,330	$	28,545

The Company does not enter into derivative financial instruments for speculative purposes. None of the derivatives held are designated as hedging instruments or otherwise qualify for hedge accounting treatment and all changes in fair value are recognized in non-interest income or non-interest expense during the period of change. For the three months ended March 31, 2014 and 2013, the company recorded $1.1 million and $0.2 million, in non-interest income, respectively, as a result of changes in fair value of derivatives.

31

Capital Bank Financial Corp.

Notes to Consolidated Financial Statements (Unaudited)

The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements.

The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures and agreements that specify collateral levels to be maintained by the Company and the counterparties. These collateral levels are based on the credit rating of the counterparties.

The primary objective for each of these contracts is to minimize risk. Interest rate risk being the primary risk for the interest rate swaps and forward loan sales contracts.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain of the matters discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Form 10-Q may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, as such, may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results described in such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation: market and economic conditions, the management of our growth, the risks associated with Capital Bank, NA’s loan portfolio and real estate holdings, local economic conditions affecting retail and commercial real estate, the Company’s geographic concentration in the southeastern region of the United States, restrictions imposed by Capital Bank, NA’s loss sharing agreements with the FDIC, the assumptions and judgments required by loss share accounting and the acquisition method of accounting, competition within the industry, dependence on key personnel, government legislation and regulation, the risks associated with identification, completion and integration of any future acquisitions, and risks related to Capital Bank, NA’s technology and information systems. Additional factors that may cause actual results to differ materially from these forward looking statements, include but are not limited to, the risk factors described in Part I, Item 1A of our annual report on Form 10-K for the fiscal year ended December 31, 2013. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements. The Company disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.

Our financial information is prepared in accordance with GAAP. Application of these principles requires management to make complex and subjective estimates and judgments that affect the amounts reported in the following discussion and in our consolidated financial statements and accompanying notes. For more information on our accounting policies and estimates, refer to Company’s consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended December 31, 2013.

The following discussion addresses the factors that have affected the financial condition and results of operations of the Company as reflected in the unaudited consolidated statement of condition as of March 31, 2014, and statement of income for the three months ended March 31, 2014. Except as otherwise noted, dollar and share amounts in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are not in thousands.

The following discussion pertains to our historical results, which includes the operations of First National Bank, Metro Bank, Turnberry Bank (collectively, the “Failed Banks”), TIB Financial, Capital Bank Corp., Green Bankshares and Southern Community Financial subsequent to our acquisition of each such entity. Throughout this discussion we collectively refer to the above acquisitions as the “acquisitions”.

Overview

We are a bank holding company incorporated in late 2009 with the goal of creating a regional banking franchise in the southeastern region of the United States through organic growth and acquisitions of other banks, including failed, underperforming and undercapitalized banks. We have raised $955.6 million to make acquisitions through a series of private placements and an initial public offering of our common stock. Since inception, we have acquired seven depository institutions, including the assets and certain deposits from the Failed Banks. We operate 163 branches in Florida, North and South Carolina, Tennessee and Virginia. Through our branches, we offer a wide range of commercial and consumer loans and deposits, as well as ancillary financial services.

We were founded by a group of experienced bankers with a multi-decade record of leading, operating, acquiring and integrating financial institutions.

Our executive management team is led by our Chief Executive Officer, R. Eugene Taylor. Mr. Taylor is the former Vice Chairman of Bank of America Corp., where his career spanned 38 years and included responsibilities as Vice Chairman and President of the Consumer and Commercial Bank. Mr. Taylor also served on Bank of America’s Risk & Capital and Management Operating Committees. He has extensive experience executing and overseeing bank acquisitions, including NationsBank Corp.’s acquisition and integration of Bank of America, Maryland National Bank and Barnett Banks, Inc.

Our Chief Financial Officer, Christopher G. Marshall, has over 31 years of financial and managerial experience, including serving as Senior Advisor to the Chief Executive Officer and Chief Restructuring Officer at GMAC, Chief Financial Officer of Fifth Third Bancorp and as the Chief Operations Executive for Bank of America’s Global Consumer and Small Business Bank. Mr. Marshall also served as Chief Financial Officer of Bank of America’s Consumer Products Group. Prior to joining Bank of America, Mr. Marshall served as Chief Financial Officer and Chief Operating Officer of Honeywell International Inc. Global Business Services.

Our Chief Credit Officer, R. Bruce Singletary, has over 33 years of experience, including 20 years of experience managing credit risk. He has served as Head of Credit for NationsBank Corp. for the Mid-Atlantic region, where he established a centralized underwriting function to serve middle market commercial clients in the southeastern region of the United States. Mr. Singletary also served as Senior Risk Manager for commercial banking for Bank of America’s Florida Bank and as Senior Credit Policy Executive of C&S Sovran (renamed NationsBank Corp).

Our Chief of Strategic Planning and Investor Relations, Kenneth A. Posner, spent 13 years as an equity research analyst including serving as a Managing Director at Morgan Stanley focusing on a wide range of financial services firms. Mr. Posner also served in the United States Army, rising to the rank of Captain and has received professional designations as a Certified Public Accountant, a Chartered Financial Analyst and for Financial Risk Management.

33

On September 24, 2012, our majority owned subsidiaries, CBKN, GRNB and TIBB, merged with and into Capital Bank Financial Corp. (“CBF”), with CBF continuing as the surviving corporation (the “Reorganization”). Upon completion of the reorganization the outstanding common shares held by the minority shareholders were converted into an aggregate of 3.7 million shares of CBF’s Class A common stock.

On October 1, 2012, the Company completed its acquisition of Southern Community Financial Corporation (“SCMF” or “Southern Community”), a publicly held bank holding company headquartered in Winston Salem, North Carolina.

Primary Factors Used to Evaluate Our Business

As a financial institution, we manage and evaluate various aspects of both our results of operations and our financial condition. We evaluate the levels and trends of the line items included in our balance sheet and income statement, as well as various financial ratios that are commonly used in our industry. We analyze these ratios and financial trends against our budgeted performance and the financial condition and performance of comparable financial institutions in our region and nationally. Our financial information is prepared in accordance with GAAP. Application of these principles requires management to make complex and subjective estimates and judgments that affect the amounts reported in the following discussion and in our consolidated financial statements and accompanying notes. For a full description of income statement metrics and balance sheet drivers used to evaluate our business such as, Net Interest Income, Provision for Loan Losses, Non-Interest Income, Non-Interest Expense, Net Income, Loan Growth, Asset Quality, Deposit Growth, Liquidity and Capital, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our annual report on Form 10-K for the fiscal year ended December 31, 2013.

Quarterly Summary

For the three months ended March 31, 2014, we had net income of $11.4 million, or $0.22 per diluted share. Results include the following non-core items: a $0.2 million gain on investment securities; $0.8 million of contingent value right (“CVR”) expense, and $0.5 million of stock-based compensation associated with original founders awards.

Operating and financial highlights for the quarter include the following:

• Yield on $252.5 million of new loans up 50 basis points sequentially to 4.00%;

• Legacy credit expenses down 14% and 30% over the prior year fourth and first quarters, respectively;

• Net income up 98% from prior year’s first quarter;

• Net interest margin was 4.41%;

• ROA and core ROA increased 38 and 21 basis points to 0.70% and 0.76%, respectively, over the prior year first quarter;

• Repurchased 968,865 shares of common stock at an average price of $23.39 and ended the quarter with a Tier I leverage ratio of 14.9%; and

• Tangible book value per share increased to $18.69.

Results of Operations

Net Interest Income

Net interest income is the largest component of our income and is affected by the interest rate environment and the volume and composition of interest-earning assets and interest-bearing liabilities. Our interest-earning assets include loans, interest-bearing deposits in other banks, investment securities, federal funds sold and securities purchased under agreements to resell. Our interest-bearing liabilities include deposits, federal funds purchased, subordinated debentures, repurchase agreements and other short-term borrowings.

Three Months ended March 31, 2014 compared to Three Months ended December 31, 2013

Net interest income for the three months ended March 31, 2014 decreased by $3.3 million, or 5.0%, to $62.5 million from $65.7 million for the three months ended December 31, 2013. The decrease was mainly due to decreased loan yields partially offset by higher average loan balances and a decline in high-cost legacy time deposits. The net interest margin decreased 11 basis points to 4.41% from 4.52% and our net interest income spread decreased to 4.28% from 4.39%. Loan yields decreased to 5.66% from 5.88%, driven by new loan originations of $252.5 million with an average yield of 4.00%, replacing higher legacy loans and the $1.0 million decrease in accretion from acquired charged off loans. The decline in time deposits average balance is a result of continued plan shrinkage in high-cost legacy time deposits. Our cost of funds remained flat at 0.46%. Cost of core deposits increased to 0.15% from 0.14% from prior quarter.

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(Dollars in thousands)	Three Months Ended							Three Months Ended
	March 31, 2014							December 31, 2013
	Average							Average
	Balances		Interest		Yield			Balances		Interest		Yield
Interest earning assets
Loans (2)	$	4,542,255	$	63,404		5.66	%	$	4,505,159	$	66,735		5.88	%
Investments (2)		1,141,231		4,801		1.71	%		1,186,466		4,943		1.65	%
Interest bearing deposits		47,526		25		0.21	%		57,953		33		0.23	%
Other (3)		43,123		581		5.46	%		40,866		543		5.27	%
Total interest earning assets		5,774,135	$	68,811		4.83	%		5,790,444	$	72,254		4.95	%
Non-interest earning assets		779,933							807,278
Total Assets	$	6,554,068						$	6,597,722
Interest bearing liabilities
Time	$	1,413,731	$	2,970		0.85	%	$	1,513,038	$	3,155		0.83	%
Money market		948,738		526		0.22	%		947,429		519		0.22	%
NOW		1,313,700		538		0.17	%		1,288,723		550		0.17	%
Savings		532,823		282		0.21	%		531,930		286		0.21	%
Total interest bearing deposits		4,208,992		4,316		0.42	%		4,281,120		4,510		0.42	%
Short-term borrowings and FHLB Advances		103,851		70		0.27	%		48,466		21		0.17	%
Long-term borrowings		135,317		1,704		5.11	%		134,813		1,726		5.08	%
Total interest bearing liabilities		4,448,160	$	6,090		0.56	%		4,464,399	$	6,257		0.56	%
Non-interest bearing deposits		942,006							964,823
Other Liabilities		48,964							56,624
Shareholders’ equity		1,114,938							1,111,876
Total Liabilities and shareholders’ equity	$	6,554,068						$	6,597,722
Net interest income and spread			$	62,721		4.28	%			$	65,997		4.39	%
Net interest margin						4.41	%						4.52	%

Rate/Volume Analysis

(Dollars in thousands)	Three Months Ended March 31, 2014
	Compared to Three Months Ended December 31, 2013
	Due to changes (1) in:
	Average Volume			Average Rate			Net Increase (Decrease)
Interest income
Loans (2)	$	546		$	(3,877	)	$	(3,331	)
Investment securities		(190	)		48			(142	)
Interest-bearing deposits in other banks		(6	)		(2	)		(8	)
Other (3)		30			8			38
Total interest income		380			(3,823	)		(3,443	)
Interest expense
Time deposits		(208	)		23			(185	)
Money market		1			6			7
Negotiable order of withdrawal accounts		11			(23	)		(12	)
Savings deposits		—			(4	)		(4	)
Short-term borrowings and FHLB advances		33			16			49
Long-term borrowings		6			(28	)		(22	)
Total interest expense		(157	)		(10	)		(167	)
Change in net interest income	$	537		$	(3,813	)	$	(3,276	)

(1) For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volumes and changes due to rates, with the changes in both volumes and rates allocated to these two categories based on the proportionate absolute changes in each category.

(2) Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates in adjusting tax-exempt interest on tax-exempt investment securities and loans to a fully taxable basis. Average loan volumes include non-performing assets which results in the impact of the non-accrual of interest being reflected in the change in average rate.

(3) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

35

Three Months ended March 31, 2014 compared to Three Months ended March 31, 2013

Net interest income for the three months ended March 31, 2014 decreased by $4.7 million or 6.9% to $62.5 million, from $67.1 million for the three months ended March 31, 2013. The decrease was mainly due to decreased average loan balances and yields partially offset by increased securities average balances and yields, a decline in high-cost legacy time deposits and the prepayment of high coupon trust preferred securities during 2013. The net interest margin increased 8 basis points to 4.41% from 4.33% and our net interest income spread increased to 4.28% from 4.20%. Loan yields decreased to 5.66% from 6.25% mainly due to our originated portfolio replacing higher rate legacy loans; for the full year of 2013, we originated $1.3 billion with an average yield of 3.9%. For the three months ended March 31, 2014, new loan originations were $252.5 million with an average yield of 4.00%. The decrease in average loan balances is mainly due to the resolution of problem loans and principal repayments. Securities average balances and yields increased due to the deployment of excess liquidity in higher yield investments. Our cost of funds declined to 0.46% from 0.61% for the three months ended March 31, 2013 due to the decline in time deposits as a result of continued planned shrinkage in high-cost legacy time deposits and the reduction in our long term borrowings as a result of the $42.5 million prepayment of trust preferred securities in 2013.

(Dollars in thousands)	Three Months Ended							Three Months Ended
	March 31, 2014							March 31, 2013
	Average							Average
	Balances		Interest		Yield			Balances		Interest		Yield
Interest earning assets
Loans (2)	$	4,542,255	$	63,404		5.66	%	$	4,672,302	$	71,956		6.25	%
Investments (2)		1,141,231		4,801		1.71	%		1,006,647		3,549		1.43	%
Interest bearing deposits		47,526		25		0.21	%		586,345		371		0.26	%
Other (3)		43,123		581		5.46	%		38,866		490		5.11	%
Total interest earning assets		5,774,135	$	68,811		4.83	%		6,304,160	$	76,366		4.91	%
Non-interest earning assets		779,933							895,925
Total Assets	$	6,554,068						$	7,200,085
Interest bearing liabilities
Time	$	1,413,731	$	2,970		0.85	%	$	1,986,343	$	5,035		1.03	%
Money market		948,738		526		0.22	%		1,113,841		629		0.23	%
NOW		1,313,700		538		0.17	%		1,275,914		555		0.18	%
Savings		532,823		282		0.21	%		503,714		258		0.21	%
Total interest bearing deposits		4,208,992		4,316		0.42	%		4,879,812		6,477		0.54	%
Short-term borrowings and FHLB Advances		103,851		70		0.27	%		43,250		14		0.13	%
Long-term borrowings		135,317		1,704		5.11	%		170,912		2,499		5.93	%
Total interest bearing liabilities		4,448,160	$	6,090		0.56	%		5,093,974	$	8,990		0.72	%
Non-interest bearing deposits		942,006							888,834
Other Liabilities		48,964							52,316
Shareholders’ equity		1,114,938							1,164,961
Total Liabilities and shareholders’ equity	$	6,554,068						$	7,200,085
Net interest income and spread			$	62,721		4.28	%			$	67,376		4.20	%
Net interest margin						4.41	%						4.33	%

36

Rate/Volume Analysis

(Dollars in thousands)	Three Months Ended March 31, 2014
	Compared to Three Months Ended March 31, 2013
	Due to changes (1) in:
	Average Volume			Average Rate			Net Increase (Decrease)
Interest income
Loans (2)	$	(1,960	)	$	(6,592	)	$	(8,552	)
Investment securities		512			740			1,252
Interest-bearing deposits in other banks		(292	)		(54	)		(346	)
Other (3)		56			35			91
Total interest income		(1,684	)		(5,871	)		(7,555	)
Interest expense
Time deposits		(1,296	)		(769	)		(2,065	)
Money market		(92	)		(11	)		(103	)
Negotiable order of withdrawal accounts		16			(33	)		(17	)
Savings deposits		15			9			24
Short-term borrowings and FHLB advances		32			24			56
Long-term borrowings		(477	)		(318	)		(795	)
Total interest expense		(1,802	)		(1,098	)		(2,900	)
Change in net interest income	$	118		$	(4,773	)	$	(4,655	)

(1) For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volumes and changes due to rates, with the changes in both volumes and rates allocated to these two categories based on the proportionate absolute changes in each category.

(2) Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates in adjusting tax-exempt interest on tax-exempt investment securities and loans to a fully taxable basis. Average loan volumes include non-performing assets which results in the impact of the non-accrual of interest being reflected in the change in average rate.

(3) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

Provision for Loan Losses

The following table presents the provision (reversal) for loan losses for PCI and non-PCI loans for the three months ended March 31, 2014 and 2013:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Provision (reversal) for loan losses on PCI loans	$	(2,488	)	$	(3,148	)
Provision for loan losses on non-PCI loans		2,464			8,550
Provision (reversal) for Loan Losses	$	(24	)	$	5,402

Three Months ended March 31, 2014 compared to Three Months ended March 31, 2013

The provision reversal for loan losses for the three months ended March 31, 2014 was a reversal of $24 thousand compared to a provision of $5.4 million for the three months ended March 31, 2013. The improvement was mainly due to a lower level of net charge offs, which declined from $5.5 million to $1.2 million. For our originated loan portfolio, a $7.8 million charge off was recorded during the prior year related to a single commercial credit relationship associated with suspected fraud. The net reversal of impairment associated with PCI loans was mainly due to improvements in our expectations of future cash flows resulting from higher than anticipated payoffs. Improvement in cash flows on non-covered loans resulted in a $2.9 million reversal of impairment, partially offset by $0.4 million in increased impairment from covered loans. In contrast, in the prior year, improvement in cash flows on covered loans resulted in $3.4 million reversal, partially offset by $0.3 million in increased impairment from non-covered loans.

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The table below illustrates the impact of our first quarter 2014 estimates of expected cash flows on PCI loans on impairment and prospective yield:

(Dollars in thousands)			Weighted Average Prospective Yields
	Cumulative Impairment		Based on Original Estimates of Expected Cash Flows			Based on Most Recent Estimates of Expected Cash Flows			Loan Balance (2)		Weighted Average Note Rate			Weighted Average Life (Years)
Covered loans pools (1)	$	13,421		6.09	%		7.65	%	$	230,674		5.07	%		2.63
Non-covered loans pools (1)		21,991		5.59	%		7.48	%		1,510,258		5.13	%		3.18
Total	$	35,412		5.67	%		7.50	%	$	1,740,932		5.12	%		3.10

(1) Covered loan pools are comprised of loans acquired in acquisition of the Failed Banks with loans types guaranteed by the FDIC under loss sharing agreements. Accordingly, certain pools classified as covered may include individual loans which are not, or are no longer covered.

(2) Loan balance represents the recorded investment of all loans in the covered and non-covered pools, respectively. Not all covered loans are classified as PCI.

Non-interest Income

Three Months ended March 31, 2014 compared to Three Months ended March 31, 2013

Non-interest income increased $0.5 million to $11.4 million for the three months ended March 31, 2014 from $10.9 million for the three months ended March 31, 2013. The increase was mainly due to a $1.0 million increase in investment advisory and trust fees which benefited from a 30% increase year over year in fiduciary trust assets under management coupled with higher investment advisory commissions and a $0.2 million gain on investment securities. Partially offsetting these increases was a $0.9 million decrease in service charges on deposit accounts as a result of a decline in customer overdrafts and a $0.5 million decrease in mortgage fees as loans sold declined to $48.8 million from $80.4 million in the prior year.

The following table sets forth the components of non-interest income for the periods indicated:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Service charges on deposit accounts	$	5,436		$	6,342
Debit card income		2,844			2,836
Fees on mortgage loans originated and sold		759			1,241
Investment advisory and trust fees		1,261			283
FDIC indemnification asset expense		(2,165	)		(2,169	)
Investment securities gains, net		174			—
OREO revenue		658			528
Earnings on bank owned life insurance policies		467			403
Wire transfer fees		178			186
Other income		1,757			1,259
Total non-interest income	$	11,369		$	10,909

Non-interest Expense

Three Months ended March 31, 2014 compared to Three Months ended March 31, 2013

Non-interest expense decreased $6.1 million to $55.2 million for the three months ended March 31, 2014 from $61.3 million for the three months ended March 31, 2013. The decrease was mainly due to a $3.4 million decrease in the OREO valuation expense and loan workout expense components of our total legacy credit expenses which are reflecting the continued resolution of special assets, and a $2.1 million reduction in CVR expense as a result of our most recent estimate of expected credit losses from each acquired portfolio. The CVR liability is measured each quarter and is payable after the fifth anniversary of the consummation of the respective acquisition and the current amount of the liability represents the expected payout discounted at an estimated market discount rate from the payout date to the reporting date. Also contributing to the decline was an $0.8 million decrease in stock-based compensation expense mainly associated with original founders awards.

Salary and employee benefits increased $2.7 million reflecting an increase in personnel and higher compensation expense in order to support the growth and expansion of our operations. The increase in personnel was primarily due to increased investments in Capital Bank Wealth Management, the Bank’s investment advisory business line, which contributed to the increase in our fee income. Additionally, an increase in risk management personnel also contributed to the increase as we have built out these teams to in-source areas previously requiring significant professional fees.

Net occupancy expense decreased $0.3 million for the three months ended March 31, 2014 as compared to the three months ended March 31, 2013 as a result of our continued focus on consolidating facilities and containing operating costs.

Other operating expense for the three months ended March 31, 2013 included $0.3 million in loss on extinguishment of debt related to $34.5 million in prepayment of a trust preferred security.

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The following table sets forth the components of non-interest expense for the periods indicated:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Salary and employee benefits	$	23,498		$	20,784
Stock-based compensation expense		728			1,577
Net occupancy and equipment expense		8,600			8,906
Software expense		1,867			1,824
OREO valuation expense		3,573			6,590
Gain on sales of OREO		(721	)		(1,187	)
Foreclosed asset related expense		1,459			1,419
Loan workout expense		1,177			2,064
Professional fees		2,004			2,648
Computer services		3,253			3,100
CVR expense		767			2,883
Conversion and merger related expense		—			113
FDIC assessments		1,629			1,803
Telecommunication expense		1,608			1,754
Amortization of intangibles		1,214			1,272
Loss on extinguishment of debt		—			308
Legal settlement expense		3			—
Other expense		4,565			5,455
Total non-interest expense	$	55,224		$	61,313

Our efficiency ratio for the three months ended March 31, 2014 was 74.8%, which was impacted by non-core items including: $0.8 million of CVR expense; $0.5 million of stock-based compensation expense associated with original founders awards; and $0.2 million of investment security gains. Excluding the impact of these non-core items, our core efficiency ratio for the three months ended March 31, 2014 was 73.2%.

Our efficiency ratio for the three months ended March 31, 2013 was 78.6%, which was impacted by non-core items including: $2.9 million of CVR expense; $1.6 million of stock-based compensation expense associated with original founders awards; $0.3 million of net loss on extinguishment of debt related to $34.5 million prepayment of a trust preferred security; and $0.1 million of merger related costs. Excluding the impact of these non-core items, our core efficiency ratio for the three months ended March 31, 2013 was 72.3%.

The core efficiency ratio, which equals core non-interest expense divided by core net revenues (net interest income plus core non-interest income), for the three months ended March 31, 2014 and 2013 is as follows:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Reported non-interest expense	$	55,224		$	61,313
Less: Stock-based compensation expense		533			1,577
Less: CVR expense		767			2,883
Less: Legal settlement expenses		—			113
Less: Loss on extinguishment of debt		—			308
Core non-interest expense	$	53,924		$	56,432
Net interest income	$	62,453		$	67,114
Reported non-interest income		11,369			10,909
Less: Securities gains		174			—
Core non-interest income	$	11,195		$	10,909
Efficiency Ratios		74.8	%		78.6	%
Core Efficiency Ratios		73.2	%		72.3	%

The core efficiency ratio is a non-GAAP measure which we believe provides analysts and investors with information useful in understanding our business and evaluating our operating efficiency. We monitor the core efficiency ratio to evaluate and control operating costs. The core efficiency ratio is also a measure utilized by our Board of Directors in measuring management’s performance in controlling operating costs in comparison to peers. This non-GAAP measure has inherent limitations, is not required to be uniformly applied and is not audited. It should not be considered in isolation or as a substitute for analyses of results reported under GAAP. This non-GAAP measure may not be comparable to similarly titled measures reported by other companies and should not be viewed as a substitute for non-interest expense.

39

Income Taxes

The provision for income taxes was $7.2 million for the quarter ended March 31, 2014 and $5.5 million for the quarter ended March 31, 2013. The effective income tax rate was approximately 38.71% and 49.02%, respectively. The change in effective income tax rates was mainly due to the impact of the CVR expense. The change in value of the CVR and related expense resulted from the overall improvement in our most recent estimates of cash flows, substantially related to the Company’s legacy Southern Community and Green Bankshares portfolios. The potential payments resulting from CVRs issued as a part of these acquisitions, which were non-taxable transactions, are considered by the Internal Revenue Service as additional consideration to the former shareholders. Accordingly, the expense associated with changes in estimated value of the CVRs is not deductible for income tax purposes. Excluding the impact of the CVR expense, the effective income tax rate was approximately 37.3% for the three months ended March 31, 2014.

There were no unrecognized tax benefits at March 31, 2014 and December 31, 2013, and we do not expect to identify any unrecognized tax benefits during the next 12 months.

Financial Condition

Our assets totaled $6.5 billion and $6.6 billion at March 31, 2014 and December 31, 2013, respectively. Investment securities decreased by $43.4 million as a result of principal payments, partially offset by an improvement in market values of available-for-sale securities. Total loans decreased $5.5 million to $4.5 billion at March 31, 2014 compared to $4.6 billion at December 31, 2013. The decrease in total loans was due to $79.4 million in higher than expected resolutions of problem loans and $178.6 million in net principal repayments, partially offset by $252.5 million of new loan originations. Total deposits were $5.2 billion at March 31, 2014 and December 31, 2013. Continued planned shrinkage in high-cost legacy time deposits, which declined by $65.1 million, and the increase in demand deposit and non-interest bearing accounts of $81.6 million, increased our core deposits to 73.4% of total deposits compared to 72.1% at December 31, 2013. Record net new checking account growth contributed to the increase in core deposits. Borrowed funds, consisting of Federal Home Loan Bank (FHLB) advances, short-term borrowings, notes payable and subordinated debentures, totaled $190.5 million and $259.7 million at March 31, 2014 and December 31, 2013, respectively. The decrease in borrowed funds was mainly due to $75.0 million of repayments of short-term FHLB advances during the quarter.

Shareholders’ equity was $1.1 billion at March 31, 2014 and December 31, 2013. During 2013, the Company’s Board of Directors authorized stock repurchase plans of $150.0 million. Stock repurchases may be made from time to time, on the open market or in privately negotiated transactions. The approved stock repurchase program does not obligate the Company to repurchase any particular amount of shares, and the program may be extended, modified, suspended, or discontinued at any time. During the three months ended March 31, 2014, the Company repurchased $22.7 million, or 968,865 common shares at an average price of $23.39 per share. As of March 31, 2014, the Company has repurchased $92.6 million or 4,730,182 common shares at an average price of $19.58 per share and had $57.4 million of remaining availability for future share repurchases under the current authorization.

Loans

Our loan portfolio is our primary earning asset. Our strategy is to grow the loan portfolio by originating commercial and consumer loans that we believe to be of high quality, that comply with our conservative credit policies and that produce revenues consistent with our financial objectives. Additionally, we have worked to reduce excessive concentrations in commercial real estate loans, which were the predominant portion of the acquisitions’ legacy portfolios, in order to achieve a more diversified portfolio mix.

The following table sets forth the carrying amounts of our loan portfolio:

(Dollars in thousands)	As of March 31, 2014					As of December 31, 2013					Sequential Change
	Amount		Percent			Amount		Percent			Amount			Percent
Non-owner occupied commercial real estate	$	790,698		17.4	%	$	775,733		17.0	%	$	14,965			1.9	%
Other commercial construction and land		256,190		5.6	%		300,494		6.6	%		(44,304	)		-14.7	%
Multifamily commercial real estate		68,701		1.5	%		67,688		1.4	%		1,013			1.5	%
1-4 family residential construction and land		79,508		1.7	%		71,351		1.7	%		8,157			11.4	%
Total commercial real estate		1,195,097		26.3	%		1,215,266		26.7	%		(20,169	)		-1.7	%
Owner occupied commercial real estate		1,061,571		23.3	%		1,058,148		23.2	%		3,423			0.3	%
Commercial and industrial loans		806,359		17.7	%		803,736		17.7	%		2,623			0.3	%
Lease financing		2,513		0.1	%		2,676		0.1	%		(163	)		-6.1	%
Total commercial		1,870,443		41.1	%		1,864,560		41.0	%		5,883			0.3	%
1-4 family residential		801,573		17.6	%		804,322		17.7	%		(2,749	)		-0.3	%
Home equity loans		382,946		8.4	%		386,366		8.5	%		(3,420	)		-0.9	%
Other consumer loans		183,611		4.1	%		170,526		3.7	%		13,085			7.7	%
Total consumer		1,368,130		30.1	%		1,361,214		29.9	%		6,916			0.5	%
Other (1)		112,815		2.5	%		110,989		2.4	%		1,826			1.6	%
Total loans	$	4,546,485		100.0	%	$	4,552,029		100.0	%	$	(5,544	)		-0.1	%

40

During the three months ended March 31, 2014, our loan portfolio decreased by $5.5 million due to $79.4 million in higher than expected resolutions of problem loans and $178.6 million in net principal repayments, partially offset by $252.5 million of new loan originations. The composition of new loan production is indicative of our business strategy of emphasizing commercial and industrial and consumer loans. As illustrated in the table below, commercial loans and consumer and other loans represented approximately 40.5% and 34.9%, respectively, of new loan production for the three months ended March 31, 2014. We expect that this production will be more balanced going forward, as we have substantially reduced our concentration in commercial real estate loans.

The following table sets forth our new loan originations (excluding renewals of existing loans) segmented by loan type.

(Dollars in thousands)	Three Months Ended
	March 31, 2014					December 31, 2013
	Amount		Percent			Amount		Percent
Non-owner occupied commercial real estate	$	31,645		12.5	%	$	61,792		15.1	%
Other commercial construction and land		17,516		6.9	%		13,327		3.2	%
Multifamily commercial real estate		2,252		0.9	%		1,484		0.4	%
1-4 family residential construction and land		10,850		4.3	%		14,195		3.5	%
Total commercial real estate		62,263		24.6	%		90,798		22.2	%
Owner occupied commercial real estate		33,419		13.2	%		46,892		11.4	%
Commercial and industrial loans		68,751		27.3	%		179,575		44.0	%
Lease financing		—		0.0	%		240		0.1	%
Total commercial		102,170		40.5	%		226,707		55.5	%
1-4 family residential		37,795		15.0	%		36,618		8.9	%
Home equity loans		10,980		4.3	%		8,064		2.0	%
Other consumer loans		33,795		13.4	%		32,287		7.9	%
Total consumer		82,570		32.7	%		76,969		18.8	%
Other (1)		5,505		2.2	%		14,096		3.5	%
Total loans	$	252,508		100.0	%	$	408,570		100.0	%

We underwrite commercial real estate loans based on the value of the collateral, the ratio of debt service to property income and the creditworthiness of tenants. Due to the inherent risk of commercial real estate lending, we underwrite loans selectively. Accordingly, we have reduced the concentration in our portfolio over time, which had characterized our acquired loan portfolios.

Florida, South Carolina, North Carolina and Tennessee accounted for 27.5%, 17.0%, 30.9% and 24.6% of our new loan originations, respectively, for the three months ended March 31, 2014. Florida, South Carolina, North Carolina, and Tennessee accounted for 26.9%, 11.9%, 41.7% and 19.5% of our new loan originations, respectively, for the three months ended December 31, 2013.

Asset Quality

Consistent with our strategy of operating with a sound risk profile, we have focused on originating loans we believe to be of high quality, disposing of non-performing assets as rapidly as possible, and reducing the size of our legacy commercial real estate loan portfolio. To achieve these objectives, we underwrite new loans and manage existing loans in accordance with our underwriting standards under the direction of our Chief Credit Officer. Additionally, we have assigned senior credit officers to oversee the Florida, Tennessee and Carolinas markets, and we have established a special assets division to dispose of legacy problem loans and OREO.

We refer to our loans covered under loss sharing agreements with the FDIC as “covered loans.” These are the legacy loans of Metro Bank, Turnberry Bank, and First National Bank that are covered by FDIC loss sharing agreements that reimburse us for 80% of net charge-offs and OREO losses over a five-year period for commercial loans and a ten-year period for residential loans. We refer to all other loans as “non-covered loans.” These are loans we originate, loans acquired through the acquisitions of Capital Bank, TIB Bank, Greenbank and Southern Community Financial and certain consumer loans of the Failed Banks that we acquired, which are not covered by any loss sharing agreement.

Covered Loans

As of March 31, 2014, covered loans were $259.5 million, representing 5.7% of our loan portfolio of which 3.7% were past due 30-89 days, 11.0% were greater than 90 days past due and still accruing/accreting and 0.5% were nonaccrual. The status of these loans reflects the severity of the real estate downturn and the excessive concentrations in commercial real estate and poor quality underwriting that characterized the banks we acquired from the FDIC under their prior business models. We have recorded these loans at estimated fair value reflecting expected lifetime losses estimated as of their acquisition date. Actual claims for reimbursement filed with the FDIC for incurred losses on covered loans but not yet paid were $7.9 million at March 31, 2014.

As of December 31, 2013, covered loans were $285.3 million, representing 6.3% of our loan portfolio. Also as of December 31, 2013, the covered loans were 0.3% past due 30-89 days, 14.2% greater than 90 days past due and still accruing/accreting and 0.5% nonaccrual.

41

We manage credit risk associated with loans covered under loss sharing agreements in the same manner as credit risk associated with non-covered loans. This includes following consistent policies and procedures relating to the process of working with borrowers in efforts to resolve problem loans resulting in the lowest losses possible and collection including foreclosure, repossession and the ultimate liquidation of any applicable underlying collateral. The loss sharing agreements also contain certain restrictions and conditions which, among other things, provide that certain credit risk management strategies such as loan sales, under certain conditions, could be prohibited under the agreements and may lead to the termination of coverage of any applicable losses on the related loans. Accordingly, actions taken by management in the process of prudently managing credit risk and borrower relationships, including, but not limited to, the renewal of covered loans for periods extending beyond the expiration of the applicable loss sharing agreement, the extension of additional credit or the making of certain modifications of loan terms, can lead to the termination of coverage under the loss sharing agreements for these particular loans.

Collection of loss claims under the loss sharing agreements requires extensive and specific recordkeeping and incremental monthly and quarterly reporting to the FDIC on the status of covered loans. The loss claims filed and the related reporting on covered loans to the FDIC are subject to review and approval by the FDIC and various subcontractors utilized by the FDIC. The requirements for such reporting and interpretations thereof are occasionally revised by the FDIC and its subcontractors. Such changes along with our ability to comply with the requirements and revisions require interpretation and can lead to delays in the collection of claims on losses incurred. Claims filed by us for losses realized through March 31, 2014, totaling $123.5 million have been collected from the FDIC. Additionally, the loss sharing agreements provide for regular examination of compliance with loss sharing agreements including reviews of relevant policies and procedures and detailed audits of claims filed. Noncompliance with the provisions of the loss sharing agreements can lead to termination of the agreements.

Non-Covered Loans

As of March 31, 2014, non-covered loans were $4.3 billion, representing 94.3% of our loan portfolio, of which 0.4% were past due 30-89 days, 4.6% were greater than 90 days past due and still accruing/accreting and 0.2% were nonaccrual. As of December 31, 2013, non-covered loans were $4.3 billion, representing 93.7% of our loan portfolio, of which 0.5% were past due 30-89 days, 5.0% were greater than 90 days past due and still accruing/accreting and 0.3% were nonaccrual.

As a large percentage of the non-covered loans are acquired impaired loans, these loans have also been affected by the real estate downturn and excessive commercial real estate concentrations. However, the credit quality of these loans is generally higher than that of the covered loans. In connection with the acquisitions, we applied acquisition accounting adjustments to the non-covered loans not originated by us to reflect estimates at the time of acquisition of the expected lifetime losses of such loans.

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The customer-owed principal balances and carrying amounts as of March 31, 2014 and December 31, 2013 are set forth in the tables below:

(Dollars in thousands)
	Gross Customer Balance Owed March 31, 2014		Carrying Amount (1) March 31, 2014		Carrying Amount as a Percentage of Customer Balance			Carrying Amount of Noncurrent Loans (2)		Carrying Amount of Noncurrent Loans as a Percentage of Carrying Amount
Covered Portfolio
Non-owner occupied commercial real estate	$	93,678	$	47,250		50.4	%	$	5,835		12.3	%
Other commercial construction and land		81,556		15,058		18.5	%		8,444		56.1	%
Multifamily commercial real estate		14,902		8,821		59.2	%		248		2.8	%
1-4 family residential construction and land		3,556		—		0.0	%		—		0.0	%
Total commercial real estate		193,692		71,129		36.7	%		14,527		20.4	%
Owner occupied commercial real estate		79,894		65,587		82.1	%		5,729		8.7	%
Commercial and industrial loans		19,468		9,431		48.4	%		268		2.8	%
Total commercial		99,362		75,018		75.5	%		5,997		8.0	%
1-4 family residential		93,893		62,356		66.4	%		6,145		9.9	%
Home equity loans		67,601		49,771		73.6	%		2,845		5.7	%
Other consumer loans		201		61		30.3	%		28		45.9	%
Total consumer		161,695		112,188		69.4	%		9,018		8.0	%
Other		17,585		1,179		6.7	%		294		24.9	%
Total covered loans	$	472,334	$	259,514		54.9	%	$	29,836		11.5	%
Non-covered Portfolio
Non-owner occupied commercial real estate	$	825,470	$	743,448		90.1	%	$	42,999		5.8	%
Other commercial construction and land		515,408		241,132		46.8	%		47,359		19.6	%
Multifamily commercial real estate		68,873		59,880		86.9	%		1,862		3.1	%
1-4 family residential construction and land		112,565		79,508		70.6	%		2,305		2.9	%
Total commercial real estate		1,522,316		1,123,968		73.8	%		94,525		8.4	%
Owner occupied commercial real estate		1,079,082		995,984		92.3	%		30,861		3.1	%
Commercial and industrial loans		905,827		796,928		88.0	%		32,394		4.1	%
Lease financing		2,513		2,513		100.0	%		—		0.0	%
Total commercial		1,987,422		1,795,425		90.3	%		63,255		3.5	%
1-4 family residential		811,978		739,217		91.0	%		37,410		5.1	%
Home equity loans		390,527		333,175		85.3	%		8,284		2.5	%
Other consumer loans		199,177		183,550		92.2	%		795		0.4	%
Total consumer		1,401,682		1,255,942		89.6	%		46,489		3.7	%
Other		120,765		111,636		92.4	%		2,943		2.6	%
Total non-covered loans	$	5,032,185	$	4,286,971		85.2	%	$	207,212		4.8	%
Total loans	$	5,504,519	$	4,546,485		82.6	%	$	237,048		5.2	%

(1) The carrying amount for total covered and non-covered loans represents a discount from the total gross customer balance of $212.8 million, or 45.1%, and $745.2 million, or 14.8%, respectively.

(2) Includes loans greater than 90 days past due.

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(Dollars in thousands)
	Gross Customer Balance Owed December 31, 2013		Carrying Amount (1) December 31, 2013		Carrying Amount as a Percentage of Customer Balance			Carrying Amount of Noncurrent Loans (2)		Carrying Amount of Noncurrent Loans as a Percentage of Carrying Amount
Covered Portfolio
Non-owner occupied commercial real estate	$	101,639	$	55,734		54.8	%	$	10,658		19.1	%
Other commercial construction and land		86,039		19,162		22.3	%		8,479		44.2	%
Multifamily commercial real estate		15,543		9,109		58.6	%		—		0.0	%
1-4 family residential construction and land		3,556		—		0.0	%		—		0.0	%
Total commercial real estate		206,777		84,005		40.6	%		19,137		22.8	%
Owner occupied commercial real estate		82,206		67,302		81.9	%		6,631		9.9	%
Commercial and industrial loans		20,466		10,212		49.9	%		1,663		16.3	%
Total commercial		102,672		77,514		75.5	%		8,294		10.7	%
1-4 family residential		101,830		70,599		69.3	%		10,824		15.3	%
Home equity loans		70,686		51,315		72.6	%		2,497		4.9	%
Other consumer loans		85		102		120.0	%		67		65.7	%
Total consumer		172,601		122,016		70.7	%		13,388		11.0	%
Other		18,315		1,822		9.9	%		954		52.4	%
Total covered loans	$	500,365	$	285,357		57.0	%	$	41,773		14.6	%
Non-covered Portfolio
Non-owner occupied commercial real estate	$	811,499	$	719,999		88.7	%	$	35,653		5.0	%
Other commercial construction and land		555,044		281,332		50.7	%		59,196		21.0	%
Multifamily commercial real estate		68,124		58,579		86.0	%		2,641		4.5	%
1-4 family residential construction and land		104,530		71,351		68.3	%		1,797		2.5	%
Total commercial real estate		1,539,197		1,131,261		73.5	%		99,287		8.8	%
Owner occupied commercial real estate		1,072,309		990,846		92.4	%		37,368		3.8	%
Commercial and industrial loans		903,772		793,524		87.8	%		31,698		4.0	%
Lease financing		2,676		2,676		100.0	%		—		0.0	%
Total commercial		1,978,757		1,787,046		90.3	%		69,066		3.9	%
1-4 family residential		805,865		733,723		91.0	%		39,063		5.3	%
Home equity loans		390,049		335,051		85.9	%		9,637		2.9	%
Other consumer loans		183,869		170,424		92.7	%		2,055		1.2	%
Total consumer		1,379,783		1,239,198		89.8	%		50,755		4.1	%
Other		117,804		109,167		92.7	%		4,745		4.3	%
Total non-covered loans	$	5,015,541	$	4,266,672		85.1	%	$	223,853		5.2	%
Total loans	$	5,515,906	$	4,552,029		82.5	%	$	265,626		5.8	%

(1) The carrying amount for total covered and non-covered loans represents a discount from the total gross customer balance of $215.1 million, or 43.0%, and $748.8 million, or 14.9%, respectively.

(2) Includes loans greater than 90 days past due.

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Covered and Non-Covered Loan Credit Quality Summary

The table below summarizes key loan credit quality indicators for covered and non-covered loan portfolios as of the dates indicated:

(Dollars in thousands)	March 31, 2014											December 31, 2013
	Portfolio Balance		% 30-89 Days Past Due			% Greater Than 90 Days Past Due and Still Accruing/ Accreting			% Non- accruals			Portfolio Balance		% 30-89 Days Past Due			% Greater Than 90 Days Past Due and Still Accruing/ Accreting			% Non- accruals
Covered Portfolio
Non-owner occupied commercial real estate	$	47,250		1.0	%		12.3	%		0.0	%	$	55,734		0.2	%		19.2	%		0.0	%
Other commercial construction and land		15,058		0.0	%		56.1	%		0.0	%		19,162		0.0	%		43.8	%		0.0	%
Multifamily commercial real estate		8,821		25.3	%		2.8	%		0.0	%		9,109		0.0	%		0.0	%		0.0	%
Total commercial real estate		71,129		3.8	%		20.4	%		0.0	%		84,005		0.1	%		22.7	%		0.0	%
Owner occupied commercial real estate		65,587		2.2	%		8.7	%		0.0	%		67,302		0.4	%		9.8	%		0.0	%
Commercial and industrial loans		9,431		0.1	%		2.1	%		0.7	%		10,212		0.0	%		15.7	%		0.0	%
Total commercial		75,018		1.9	%		7.9	%		0.1	%		77,514		0.4	%		10.6	%		0.1	%
1-4 family residential		62,356		3.4	%		9.8	%		0.0	%		70,599		0.3	%		15.3	%		0.0	%
Home equity loans		49,771		6.4	%		3.3	%		2.4	%		51,315		0.6	%		2.3	%		2.5	%
Other consumer loans		61		0.0	%		45.9	%		0.0	%		102		0.0	%		100.0	%		0.0	%
Total consumer		112,188		4.7	%		7.0	%		1.1	%		122,016		0.4	%		9.9	%		1.1	%
Other		1,179		0.0	%		24.9	%		0.0	%		1,822		0.0	%		55.5	%		0.0	%
Total covered loans	$	259,514		3.7	%		11.0	%		0.5	%	$	285,357		0.3	%		14.2	%		0.5	%
Non-covered Portfolio
Non-owner occupied commercial real estate	$	743,448		0.2	%		5.8	%		0.0	%	$	719,999		0.2	%		4.9	%		0.0	%
Other commercial construction and land		241,132		0.5	%		19.5	%		0.2	%		281,332		0.4	%		20.8	%		0.2	%
Multifamily commercial real estate		59,880		0.0	%		3.1	%		0.0	%		58,579		0.5	%		4.4	%		0.0	%
1-4 family residential construction and land		79,508		0.0	%		2.9	%		0.0	%		71,351		0.0	%		2.5	%		0.0	%
Total commercial real estate		1,123,968		0.2	%		8.4	%		0.0	%		1,131,261		0.3	%		8.7	%		0.1	%
Owner occupied commercial real estate		995,984		0.3	%		2.9	%		0.2	%		990,846		0.5	%		3.4	%		0.3	%
Commercial and industrial loans		796,928		0.1	%		3.9	%		0.2	%		793,524		0.0	%		3.8	%		0.2	%
Lease financing		2,513		0.0	%		0.0	%		0.0	%		2,676		0.0	%		0.0	%		0.0	%
Total commercial		1,795,425		0.2	%		3.3	%		0.2	%		1,787,046		0.3	%		3.6	%		0.3	%
1-4 family residential		739,217		0.7	%		4.8	%		0.2	%		733,723		1.0	%		5.1	%		0.2	%
Home equity loans		333,175		0.7	%		1.8	%		0.7	%		335,051		0.8	%		2.2	%		0.7	%
Other consumer loans		183,550		1.2	%		0.1	%		0.3	%		170,424		1.2	%		0.7	%		0.5	%
Total consumer		1,255,942		0.8	%		3.3	%		0.4	%		1,239,198		1.0	%		3.7	%		0.4	%
Other		111,636		0.8	%		2.6	%		0.0	%		109,167		0.4	%		4.4	%		0.0	%
Total non-covered loans	$	4,286,971		0.4	%		4.6	%		0.2	%	$	4,266,672		0.5	%		5.0	%		0.3	%
Total loans	$	4,546,485		0.6	%		5.0	%		0.2	%	$	4,552,029		0.5	%		5.6	%		0.3	%

Of the loans past due greater than 90 days and still in accruing/accreting status as of March 31, 2014, $28.6 million (or approximately 12.6%) were loans covered by loss sharing agreements with the FDIC. Of the loans past due greater than 90 days and still in accruing/accreting status as of December 31, 2013, $40.4 million (or approximately 15.9%) were loans covered by loss sharing agreements with the FDIC. All of these loans were acquired loans and such loans were either PCI loans or, based upon their recorded investment, were considered well secured and in the process of collection and met the criteria for reporting as 90 days past due and still accruing.

Total non-performing loans as of March 31, 2014 declined by $28.6 million to $237.0 million as compared to $265.6 million at December 31, 2013. The change in non-performing loans during the quarter ended March 31, 2014 was attributable to $9.7 million in transfers to other real estate owned through foreclosures or receipt of deeds in lieu of foreclosures and $44.8 million in resolutions. Partially offsetting these decreases were $25.9 million of loans that became non-performing.

During the quarter ended March 31, 2014 of the loans we foreclosed, or received deeds in lieu of foreclosure, approximately 69% consisted of commercial real estate loans and approximately 12% were associated with the covered loans in South Carolina.

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Allowance and Provision for Loan Losses

At March 31, 2014, the allowance for loan losses was $55.6 million of which $20.2 million related to loans we originated or acquired non-PCI loans, and $35.4 million was associated with PCI loans. At December 31, 2013, the allowance for loan losses was $56.9 million of which $19.0 million related to loans we originated or acquired non-PCI loans, and $37.9 million was associated with PCI loans.

For non PCI loans, the allowance for loan losses reflects an allowance for probable incurred credit losses in the loan portfolio. Our formalized process for assessing the adequacy of the allowance for loan losses and the resultant need, if any, for periodic provisions to the allowance charged to income, includes both individual loan analyses and loan pool analyses. Individual loan analyses are periodically performed on loan relationships of a significant size, or when otherwise deemed necessary, and are performed primarily on commercial real estate and other commercial loans. The result is that commercial real estate loans and commercial loans are divided into the following risk categories: Pass, Special Mention, Substandard and Loss. The allowance consists of specific and general components. When appropriate, a specific reserve will be established for individual loans based upon the risk classifications and the estimated potential for loss. The specific component relates to loans that are individually classified as impaired. Otherwise, we estimate an allowance for each risk category.

Home equity loans, indirect auto loans, residential loans and consumer loans generally are not analyzed individually or separately identified for impairment disclosures. These loans are grouped into pools and assigned risk categories based on their current payment status and management’s assessment of risk inherent in the various types of loans. The allocations are based on the same factors mentioned above. However, should such loans exceeding certain size thresholds exhibit signs of impairment, they are individually evaluated for impairment.

For PCI loans, the allowance for loan losses is a measure of impairment based upon our most recent estimates of expected cash flows. Our estimation of expected cash flows, which is used to determine the need for provisions to or reversals of the allowance every reporting period, is determined by assigning loan probability of default (“PD”) and loss given default (“LGD”) assumptions, amongst other assumptions such as prepayment speeds and recovery or liquidation timing. For commercial real estate and other commercial loans, we generally assign PD assumptions through the mapping of the following loan level risk ratings: Pass, Watch, Sub-Performing and Non-Performing. For home equity loans, residential loans, and consumer loans, PD is determined by mapping payment performance and delinquency status to market based default assumptions. Estimated loan to value ratios, determined using current appraisals and/or real estate indices, are used to derive loss given default assumptions for real estate collateralized loans.

Senior management and our Board of Directors review this calculation and the underlying assumptions on a routine basis not less frequently than quarterly.

The provision for loan losses is a charge to income in the current period to establish or replenish the allowance and maintain it at a level that management has determined to be adequate to absorb estimated incurred losses in the loan portfolio for originated loans. A provision for loan losses is also required for any unfavorable changes in expected cash flows related to pools of purchased impaired loans. The provision for loan losses and expectations of cash flows may be impacted by many factors, including changes in the value of real estate collateralizing loans, net charge-offs and credit losses incurred, changes in loans outstanding, changes in impaired loans, historical loss rates and the mix of loan types.

The provision for loan losses was a net reversal of $24 thousand and a $5.4 million provision for the three months ended March 31, 2014 and 2013, respectively. The improvement was mainly due to a lower level of net charge offs, which declined from $5.5 million to $1.2 million. For our originated loan portfolio, during the prior year, a $7.8 million charge off was recorded related to a single commercial credit relationship associated with suspected fraud. The net reversal of impairment associated with PCI loans was mainly due to improvements in our expectations of future cash flows resulting from higher than anticipated payoffs. Improvement in cash flows on non-covered loans resulted in a $2.9 million reversal of impairment, partially offset by $0.4 million in increased impairment from covered loans. In contrast, in the prior year, improvement in cash flows on covered loans resulted in $3.4 million reversal, partially offset by $0.3 million in increased impairment from non-covered loans.

As the majority of our acquired loans are considered PCI loans, our provision for loan losses in future periods for acquired loans will be most significantly influenced in the short term by the differences between the actual credit losses resulting from the resolution of problem loans and the estimated credit losses used in determining the estimated fair values of purchased impaired loans as of their acquisition dates. For loans originated by us, the provision for loan losses will be affected by the loss potential of impaired loans and trends in the delinquency of loans, non-performing loans and net charge offs, which cannot be reasonably predicted.

Management continuously monitors and actively manages the credit quality of the entire loan portfolio and will continue to recognize the provision required to maintain the allowance for loan losses at an appropriate level.

No portion of the allowance allocated to non-PCI loans is in any way restricted to any individual loan or group of originated or non-PCI loans, and the entirety of such allowance is available to absorb probable incurred credit losses from any and all such loans. The following table represents management’s best estimate of the allocation of the allowance for loan losses for non-PCI loans to the various segments of the loan portfolio based on information available as of March 31, 2014 and December 31, 2013.

46

(Dollars in thousands)	March 31, 2014							December 31, 2013
	Non-PCI Loan Balance		Allowance for Loan Losses		Percent of Non-PCI Loans			Non-PCI Loan Balance		Allowance for Loan Losses		Percent of Non-PCI Loans
Non-owner occupied commercial real estate	$	334,823	$	1,651		0.5	%	$	287,562	$	1,615		0.6	%
Other commercial construction and land		54,828		1,501		2.7	%		67,789		1,201		1.8	%
Multifamily commercial real estate		32,439		105		0.3	%		29,187		116		0.4	%
1-4 family residential construction and land		63,896		1,030		1.6	%		56,979		1,065		1.9	%
Total commercial real estate		485,986		4,287		0.9	%		441,517		3,997		0.9	%
Owner occupied commercial real estate		720,246		2,720		0.4	%		691,253		2,611		0.4	%
Commercial and industrial loans		674,526		6,989		1.0	%		663,919		6,877		1.0	%
Lease financing		2,513		1		0.0	%		2,676		3		0.1	%
Total commercial		1,397,285		9,710		0.7	%		1,357,848		9,491		0.7	%
1-4 family residential		406,080		2,515		0.6	%		377,668		2,279		0.6	%
Home equity loans		271,080		491		0.2	%		270,170		398		0.1	%
Other consumer loans		173,935		2,867		1.6	%		157,991		2,318		1.5	%
Total consumer		851,095		5,873		0.7	%		805,829		4,995		0.6	%
Other		66,354		324		0.5	%		61,279		468		0.8	%
Total loans	$	2,800,720	$	20,194		0.7	%	$	2,666,473	$	18,951		0.7	%

Criticized and Classified Loans

Loans with the following attributes are categorized as criticized and classified loans: (1) a potential weakness that deserves management’s close attention; (2) inadequate protection by the current net worth and paying capacity of the obligor or of the collateral pledged; or (3) weaknesses which make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table summarizes criticized and classified loans at March 31, 2014 and December 31, 2013:

(Dollars in thousands)	March 31, 2014 (1)						December 31, 2013 (1)
	Covered		Non-Covered		Total		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	21,521	$	122,083	$	143,604	$	26,995	$	123,515	$	150,510
Other commercial construction and land		11,246		87,708		98,954		15,297		110,245		125,542
Multifamily commercial real estate		2,483		5,283		7,766		2,421		6,270		8,691
1-4 family residential construction and land		—		10,124		10,124		—		8,336		8,336
Total commercial real estate		35,250		225,198		260,448		44,713		248,366		293,079
Owner occupied commercial real estate		26,514		75,433		101,947		24,747		86,335		111,082
Commercial and industrial loans		3,320		51,603		54,923		4,504		54,261		58,765
Total commercial		29,834		127,036		156,870		29,251		140,596		169,847
1-4 family residential		8,917		57,270		66,187		16,208		59,828		76,036
Home equity loans		6,553		11,750		18,303		6,983		13,663		20,646
Other consumer loans		28		902		930		67		2,189		2,256
Total consumer		15,498		69,922		85,420		23,258		75,680		98,938
Other		1,150		9,278		10,428		1,794		13,114		14,908
Total loans	$	81,732	$	431,434	$	513,166	$	99,016	$	477,756	$	576,772

(1) PCI and Non-PCI loans are included in the balances presented.

Total criticized and classified loans as of March 31, 2014 declined $63.6 million as a result of $9.7 million in transfers to other real estate owned, $86.5 million of pay downs, charge offs and upgrades. Loan downgrades of $32.5 million partially offset the net decline for the quarter.

Impaired Loans

Non-performing loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. A loan is considered impaired when it is probable that not all principal and interest amounts will be collected according to the loan contract. Generally, residential mortgages, commercial and commercial real estate loans exceeding certain size thresholds established by management are individually evaluated for impairment. Non-accrual loans and restructured loans where loan term concessions benefiting the borrowers have been made are generally designated as impaired.

Within the context of the accounting for impaired loans described in the preceding paragraph, other than the PCI loans described above, as of March 31, 2014, there were 12 loans individually evaluated for impairment and deemed impaired with a related allowance for loan losses of $0.4 million. At December 31, 2013, there were seven loans individually evaluated for impairment and deemed impaired with a related allowance for loan losses of $0.5 million. The specific reserve was primarily related to a commercial loan with a balance of $1.8 million at March 31, 2014 and December 31, 2013.

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Due to the pool method of accounting for purchased credit impaired loans, non-performing PCI loans are reported as 90 days past due and still accruing/accreting. Going forward, additional acquired loans not classified as purchased credit impaired and loans originated by us may become impaired and will be classified as such. Impaired loans also include loans which were not classified as non-accrual, but otherwise meet the criteria for classification as an impaired loan (i.e., loans for which the collection of all principal and interest amounts as specified in the original loan contract are not expected, or where management has substantial doubt that the collection will be as specified, but is still expected to occur in its entirety). In our evaluation of the adequacy of the allowance for loan losses, we consider (1) purchased credit impaired loans and loans classified as impaired, (2) our historical portfolio loss experience and trends and (3) certain other quantitative and qualitative factors.

Non-Performing Assets

Non-performing assets include accruing/accreting loans delinquent 90 days or more, non-accrual loans and investment securities, repossessed personal property and other real estate. Non-PCI loans and investments in debt securities are placed on non-accrual status when management has concerns relating to the ability to collect the principal and interest and generally when such assets are 90 days past due. Non-performing assets were as follows:

(Dollars in thousands)	March 31, 2014									December 31, 2013
	Covered			Non-Covered			Total			Covered			Non-Covered			Total
Total non-accrual loans	$	1,278		$	8,829		$	10,107		$	1,336		$	10,474		$	11,810
Accruing/accreting loans delinquent 90 days or more		28,558			198,383			226,941			40,437			213,379			253,816
Total non-performing loans		29,836			207,212			237,048			41,773			223,853			265,626
Non-accrual investment securities		—			—			—			—			800			800
Repossessed personal property		—			85			85			—			108			108
Other real estate owned		18,648			101,622			120,270			25,251			104,145			129,396
Total non-performing assets	$	48,484		$	308,919		$	357,403		$	67,024		$	328,906		$	395,930
Allowance for loan losses	$	13,421		$	42,185		$	55,606		$	13,051		$	43,800		$	56,851
Non-performing asets as a percent of total assets		0.74	%		4.72	%		5.46	%		1.01	%		4.97	%		5.98	%
Non-performing loans as a percent of total loans		0.66	%		4.56	%		5.21	%		0.92	%		4.92	%		5.84	%
Allowance for loan losses as a percent of non-performing loans		44.98	%		20.36	%		23.46	%		31.24	%		19.57	%		21.40	%
Allowance for loan losses as a percent of non-PCI loans								0.72	%								0.71	%

Total non-performing assets at March 31, 2014 declined by $38.5 million to $357.4 million compared to $395.9 million at December 31, 2013. The change in non-performing assets was mainly attributable to a decline in non-performing loans and other real estate owned of $28.6 million and $9.1 million, respectively. The decline in non-performing loans was due to $44.8 million in resolutions and $9.7 million in transfers to other real estate owned through foreclosures or receipt of deeds in lieu of foreclosures, offset by $25.9 million of loans that became non-performing. The decline in other real estate owned was mainly due to sales of $15.3 million, partially offset by valuation adjustments and acquisitions as noted above. Approximately 67% of the sales were commercial real estate, and approximately 35% and 16% were associated with the covered loans in Florida and South Carolina, respectively.

Investment Securities

Investment securities represent a significant portion of our assets. We invest in a variety of securities including obligations of U.S. government agencies, U.S. government-sponsored entities, including mortgage-backed securities, bank eligible obligations of states or political subdivisions, privately issued mortgage-backed securities, bank eligible corporate obligations, mutual funds and limited types of equity securities.

Our investment activities are governed internally by a written, board-approved policy. The investment policy is carried out by our Treasury department. Investment strategies are reviewed by the Risk Committee of the Board based on the interest rate environment, balance sheet mix, actual and anticipated loan demand, funding opportunities and our overall interest rate sensitivity. In general, the investment portfolio is managed in a manner appropriate to the attainment of the following goals: (1) to provide a margin of liquid assets sufficient to meet unanticipated deposit and loan fluctuations and overall funds management objectives; (2) to provide eligible securities to secure public funds and other borrowings; and (3) to earn the maximum return on funds invested that is commensurate with meeting our first two goals.

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Our investment securities consisted primarily of U.S. agency mortgage-backed securities, which expose us to a lower degree of credit and liquidity risk. The following tables set forth our investment securities as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)	March 31, 2014
Security Type	Book Value		Fair Value		Percent of Total Portfolio			Yield			Modified Duration in Years
Available-for-sale
Asset-backed securities	$	127,912	$	127,234		19.3	%		0.62	%		3.69
Marketable equity securities		946		936		0.1	%		—			—
Mortgage-backed securities—residential issued by government sponsored entities		526,533		525,891		80.0	%		1.66	%		3.27
Industrial revenue bond		3,580		3,727		0.6	%		2.23	%		0.24
Total	$	658,971	$	657,788		100.0	%		1.46	%		3.33
Held-to-maturity
U.S. Government agencies	$	14,777	$	14,455		3.2	%		2.85	%		5.51
State and political subdivisions—tax exempt		14,233		14,415		3.2	%		3.09	%		4.41
State and political subdivisions—taxable		543		541		0.1	%		3.87	%		4.41
Mortgage-backed securities—residential issued by government sponsored entities		419,578		420,328		93.5	%		2.42	%		4.77
Total	$	449,131	$	449,739		100.0	%		2.46	%		4.78
(Dollars in thousands)	December 31, 2013
Security Type	Book Value		Fair Value		Percent of Total Portfolio			Yield			Modified Duration in Years
Available-for-sale
Asset-backed securities	$	133,647	$	133,225		19.4	%		0.62	%		3.99
Marketable equity securities		946		931		0.1	%		—			—
Mortgage-backed securities—residential issued by government sponsored entities		549,869		546,626		79.8	%		1.66	%		3.39
Industrial revenue bond		3,750		3,859		0.6	%		2.25	%		0.24
Collaterilized debt obligations		505		800		0.1	%		0.00	%		NA
Total	$	688,717	$	685,441		100.0	%		1.46	%		3.48
Held-to-maturity
U.S. Government agencies	$	14,972	$	14,571		3.2	%		2.86	%		5.53
State and political subdivisions—tax exempt		14,201		14,099		3.1	%		3.01	%		4.67
State and political subdivisions—taxable		545		533		0.1	%		3.86	%		4.65
Mortgage-backed securities—residential issued by government sponsored entities		435,380		430,490		93.6	%		2.38	%		4.73
Total	$	465,098	$	459,693		100.0	%		2.42	%		4.75

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Contractual maturities of investment securities at March 31, 2014 and December 31, 2013 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations without call or prepayment penalties. Other securities include mortgage-backed securities and marketable equity securities which are not due at a single maturity date. The following table segments our investment portfolio by maturity date:

(Dollars in thousands)	Within One Year					After One Year Within Five Years					After Five Years Within Ten Years					After Ten Years					Other Securities					Total
As of March 31, 2014	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available-for-sale
Asset-backed securities	$	—		—		$	—		—		$	53,180		0.64	%	$	74,054		0.60	%	$	—		—		$	127,234		0.62	%
Marketable equity securities		—		—			—		—			—		—			—		—			936		—			936		—
Mortgage-backed securities—residential issued by government sponsored entities		—		—			—		—			—		—			—		—			525,891		1.66	%		525,891		1.66	%
Industrial revenue bond		—		—			—		—			3,727		2.23	%		—		—			—		—			3,727		2.23	%
Total	$	—		—		$	—		—		$	56,907		0.75	%	$	74,054		0.60	%	$	526,827		1.66	%	$	657,788		1.46	%
Held-to-maturity
U.S. Government agencies	$	—		—		$	—		—		$	—		—		$	14,455		2.85	%	$	—		—		$	14,455		2.85	%
State and political subdivisions—tax exempt		670		0.85	%		1,138		2.00	%		8,788		3.28	%		3,819		3.37	%		—		—			14,415		3.09	%
State and political subdivisions—taxable		—		—			—		—			—		—			541		3.87	%		—		—			541		3.87	%
Mortgage-backed securities—residential issued by government sponsored entities		—		—			—		—			—		—			—		—			420,328		2.42	%		420,328		2.42	%
Total	$	670		0.85	%	$	1,138		2.00	%	$	8,788		3.28	%	$	18,815		2.99	%	$	420,328		2.42	%	$	449,739		2.46	%
(Dollars in thousands)	Within One Year					After One Year Within Five Years					After Five Years Within Ten Years					After Ten Years					Other Securities					Total
As of December 31, 2013	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available-for-sale
Asset-backed securities	$	—		—		$	—		—		$	55,983		0.64	%	$	77,242		0.61	%	$	—		—		$	133,225		0.62	%
Marketable equity securities		—		—			—		—			—		—			—		—			931		—			931		—
Mortgage-backed securities—residential issued by government sponsored entities		—		—			—		—			—		—			—		—			546,626		4.66	%		546,626		1.66	%
Industrial revenue bond		—		—			—		—			—		—			3,859		2.25	%		—		—			3,859		2.25	%
Collaterilized debt obligations		—		—			—		—			—		—			800		—			—		—			800		—
Total	$	—		—		$	—		—		$	55,983		0.64	%	$	81,901		0.68	%	$	547,557		4.66	%	$	685,441		1.46	%
Held-to-maturity
U.S. Government agencies	$	—		—		$	—		—		$	—		—		$	14,571		2.86	%	$	—		—		$	14,571		2.86	%
State and political subdivisions—tax exempt		674		0.83	%		1,140		2.06	%		7,631		3.02	%		4,654		3.56	%		—		—			14,099		3.01	%
State and political subdivisions—taxable		—		—			—		—			—		—			533		3.86	%		—		—			533		3.86	%
Mortgage-backed securities—residential issued by government sponsored entities		—		—			—		—			—		—			—		—			430,490		2.38	%		430,490		2.38	%
Total	$	674		0.83	%	$	1,140		2.06	%	$	7,631		3.02	%	$	19,758		3.05	%	$	430,490		2.38	%	$	459,693		2.42	%

We regularly review each investment security for impairment based on criteria that include the extent to which cost exceeds the estimated fair value, the financial health of and specific prospects for the issuer(s) and our ability and intention with regard to holding the security to maturity. Future declines in the fair value of securities may result in impairment charges which may be material to our financial condition and results of operations. More specifically, our impairment analysis is based on the following: (1) whether it is “more likely than not” we would have to sell a security prior to recovery of the amortized cost; (2) whether we intend to sell the security; and (3) whether or not we expect to recover our recorded investment on an amortized cost basis based on credit characteristics of the investment. If, based upon our analysis, any of those conditions exist for a given security; we would generally be required to record an impairment charge in the amount of the difference between the carrying amounts and estimated fair value of such security. Based on the Company’s analysis, there were no investment securities considered to be other-than-temporarily impaired as of March 31, 2014 and 2013.

The Company owned a collateralized debt obligation (“CDO”) collateralized by trust preferred securities issued primarily by banks and several insurance companies. The Company sold its investment in the CDO on January 7, 2014. Proceeds from the sale were $0.8 million and gross gains were $0.3 million.

Deposits

Our strategy is to fund asset growth primarily with low-cost customer deposits in order to maintain a stable liquidity profile and net interest margin, as we are building our deposit base around service-oriented customer relationships. As of March 31, 2014, our core deposits, which we define as demand deposit accounts, savings and money market accounts, increased by $72.2 million and our time deposit accounts decreased by $65.1 million as compared to December 31, 2013. Record net new checking account growth contributed to the increase in core deposits during the three months ended March 31, 2014. The decrease in certificates of deposit accounts was a result of continued planned shrinkage in high-cost legacy time deposits. The contractual rate on core deposits declined to 0.13% as of March 31, 2014 from 0.14% as of December 31, 2013; while time deposits increased to 1.15% from 1.00% during the same period.

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The following table sets forth the balances and average contractual rates payable to customers on our deposits, segmented by account type as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)	As of March 31, 2014								As of December 31, 2013								Sequential Change
	Amount		Percent of Total			Weighted Average Contractual Rate			Amount		Percent of Total			Weighted Average Contractual Rate			Amount			Percent
Non-interest-bearing demand deposits	$	1,000,914		19	%		0.00	%	$	923,993		18	%		0.00	%	$	76,921			8.3	%
Negotiable order of withdrawal accounts		1,326,555		26	%		0.14	%		1,321,903		25	%		0.15	%		4,652			0.4	%
Savings		536,948		10	%		0.22	%		530,144		10	%		0.21	%		6,804			1.3	%
Money market		945,354		18	%		0.21	%		961,526		19	%		0.21	%		(16,172	)		-1.7	%
Total core deposits		3,809,771		73	%		0.13	%		3,737,566		72	%		0.14	%		72,205			1.9	%
Customer time deposits		1,304,524		25	%		1.12	%		1,396,361		27	%		0.95	%		(91,837	)		-6.6	%
Wholesale time deposits		77,898		2	%		1.56	%		51,136		1	%		2.41	%		26,762			52.3	%
Total time deposits		1,382,422		27	%		1.15	%		1,447,497		28	%		1.00	%		(65,075	)		-4.5	%
Total deposits	$	5,192,193		100	%		0.40	%	$	5,185,063		100	%		0.43	%	$	7,130			0.1	%

The following table sets forth our average deposits and the average rates expensed for the periods indicated:

(Dollars in thousands)	Three Months Ended
	March 31, 2014					December 31, 2013
	Average Amount		Average Rate			Average Amount		Average Rate
Non-interest-bearing demand deposits	$	942,006		0.00	%	$	964,823		0.00	%
Interest-bearing deposits
Negotiable order of withdrawal accounts		1,313,700		0.17	%		1,288,723		0.17	%
Savings		532,823		0.21	%		531,930		0.21	%
Money market		948,738		0.22	%		947,429		0.22	%
Time deposits (1)		1,413,731		0.85	%		1,513,038		0.83	%
Total deposits	$	5,150,998		0.34	%	$	5,245,943		0.34	%

⁽¹⁾  The average rates on time deposits include the amortization of premiums on time deposits assumed in connection with the acquisitions. Such premiums were required to be recorded by the acquisition method of accounting to initially record these deposits at their fair values as of the respective acquisition dates.

The following table sets forth our time deposits segmented by months to maturity and deposit amount:

(Dollars in thousands)	March 31, 2014
Months to maturity:	Time Deposits of $100K and Greater		Time Deposits of less than $100K		Total
Three or less	$	93,862	$	150,975	$	244,837
Over Three to Six		82,423		93,867		176,290
Over Six to Twelve		142,878		139,468		282,346
Over Twelve		367,429		311,520		678,949
Total deposits	$	686,592	$	695,830	$	1,382,422

Capital Resources and Liquidity

Capital Resources

In order to maintain a conservative risk profile, we operate with a prudent cushion of capital in relation to regulatory requirements and to the risk of our assets and business model. For planning purposes, we expect to operate with a minimum capital target equal to an 8% leverage ratio (defined as Tier 1 capital equal to 8% of average tangible assets), which would be in excess of regulatory standards for “well-capitalized” banks. We believe the 8% target is appropriate for our business model because of our conservative loan underwriting policies, investment portfolio composition, funding strategy, interest rate risk management limits and liquidity risk profile and because of the experience of our senior management team and Board of Directors.

As of March 31, 2014 and December 31, 2013, we had 14.82% tangible common equity ratio. We calculate tangible common equity, tangible assets and the tangible common equity ratio, which are non-GAAP measures, because we believe they are useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The tangible common equity ratio is calculated as tangible common shareholders’ equity divided by tangible assets. Tangible common equity is calculated as total shareholders’ equity less preferred stock and less goodwill and other intangible assets, net and tangible assets are total assets less goodwill and other intangible assets, net. We believe these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors.

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These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should not be viewed as a substitute for shareholders’ equity or total assets. The following table provides reconciliations of tangible common equity and tangible common equity ratio to GAAP total common shareholders’ equity and tangible assets to GAAP total assets:

(Dollars in thousands)
	March 31, 2014			December 31, 2013
Shareholder’s equity	$	1,103,756		$	1,112,788
Less: Goodwill and other intangible assets, net		(156,633	)		(155,352	)
Tangible common shareholder’s equity	$	947,123		$	957,436
Total assets		6,548,624			6,617,561
Less: Goodwill and other intangible assets, net		(156,633	)		(155,352	)
Tangible assets	$	6,391,991		$	6,462,209
Tangible common equity ratio		14.82	%		14.82	%

The Company operates with a significant level of excess capital above regulatory requirements (see the table below for the historical capital ratios as well as minimum and well capitalized ratio requirements). As of March 31, 2014, we had a Tier 1 leverage ratio of 14.9%, which provides us with $312.4 million in excess capital relative to the 10% Tier 1 leverage ratio required under our OCC Operating Agreement and $438.7 million in excess capital relative to our longer-term target of 8%.

As of March 31, 2014, Capital Bank, N.A. had a 13.7% Tier 1 leverage ratio, a 18.0% Tier 1 risk-based ratio and an 19.3% total risk-based capital ratio.

As of December 31, 2013, we had a Tier 1 leverage ratio of 14.9%, which provides us with $314.3 million in excess capital relative to the 10% Tier 1 leverage ratio required under the OCC Operating Agreement and $441.4 million in excess capital relative to our longer-term target of 8%. As of December 31, 2013, Capital Bank, N.A. had a 13.4% Tier 1 leverage ratio, a 17.7% Tier 1 risk-based ratio and an 18.9% total risk-based capital ratio.

At present, the OCC Operating Agreement requires Capital Bank, N.A. to maintain total capital equal to at least 12% of risk-weighted assets, Tier 1 capital equal to at least 11% of risk-weighted assets and a minimum leverage ratio of 10%. We expect to operate under this capital standard until we demonstrate that we have stabilized our acquired operations, improved our profitability and reduced legacy problem assets.

The minimum ratios along with the actual ratios for us and Capital Bank, N.A. as of March 31, 2014 and December 31, 2013 are presented in the following tables.

	Well			Adequately
	Capitalized			Capitalized			March 31,			December 31,
	Requirement			Requirement			2014 Actual			2013 Actual
Tier 1 Capital (to Average Assets):
CBF Consolidated		NA		>	4.0	%		14.9	%		14.9	%
Capital Bank, N.A.	>	5.0	%	>	4.0	%		13.7	%		13.4	%
Tier 1 Capital (to Risk Weighted Assets):
CBF Consolidated		NA		>	4.0	%		19.7	%		19.7	%
Capital Bank, N.A.	>	6.0	%	>	4.0	%		18.0	%		17.7	%
Total Capital (to Risk Weighted Assets):
CBF Consolidated		NA		>	8.0	%		20.9	%		21.0	%
Capital Bank, N.A.	>	10.0	%	>	8.0	%		19.3	%		18.9	%

	March 31,		December 31,
(Dollars in thousands)	2014		2013
CBF Consolidated:
Tier 1 Capital	$	944,237	$	949,623
Excess Tier 1 Capital:
vs. 10% regulatory requirement	$	312,369	$	314,306
vs. 8% target		438,743		441,370
Capital Bank, N.A.:
Tier 1 Capital	$	864,354	$	849,520
Excess Tier 1 Capital:
vs. 10% regulatory requirement	$	233,508	$	214,396
vs. 8% target		359,677		341,421

52

In July 2013, the U.S. banking regulators adopted a final rule which implements the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision, and certain changes required by the Dodd-Frank Act. The final rule establishes an integrated regulatory capital framework and introduces the “Standardized Approach” for risk weighted assets, which will replace the Basel I risk-based guidance for determining risk-weighted assets as of January 1, 2015 (the date we expect to become subject to the new rules). We do not believe adoption of the final rules and relevant provisions will have a significant impact on our operations.

Liquidity

Liquidity involves our ability to raise funds to support asset growth or reduce assets to meet deposit withdrawals and other borrowing needs, to maintain reserve requirements and to otherwise operate on an ongoing basis. To mitigate liquidity risk, our strategy is to fund asset growth primarily with low-cost customer deposits. We also operate under a liquidity policy and contingent liquidity plan that requires us to monitor indicators of potential liquidity risk, utilize cash flow projection models to forecast liquidity needs, identify alternative back-up sources of liquidity and maintain a predetermined cushion of cash and liquid securities at 15% of total assets.

Our liquidity needs are met primarily by our cash position, growth in core deposits, cash flow from our amortizing investment and loan portfolios (including scheduled payments, prepayments, and maturities from portfolios of loans and investment securities) and reimbursements under the loss sharing agreements with the FDIC. Our ability to borrow funds from non-deposit sources provides additional flexibility in meeting our liquidity needs. Short-term borrowings include federal funds purchased, securities sold under repurchase agreements and brokered deposits. We also utilize longer-term borrowings when management determines that the pricing and maturity options available through these sources create cost effective options for funding asset growth and satisfying capital needs. Our long-term borrowings include structured repurchase agreements and subordinated notes underlying our trust preferred securities.

As of March 31, 2014 and December 31, 2013, cash and liquid securities totaled 19.7%, and 20.0% of assets, providing us with $306.1 million and $328.7 million, respectively, of excess liquidity relative to our planning target. As of March 31, 2014 and December 31, 2013, the ratio of wholesale to total funding was 6.4% and 7.2% respectively, which is below our planning target. In addition to maintaining a stable core deposit base, we maintain adequate liquidity primarily through the use of investment securities, short term investments such as federal funds sold and unused borrowing capacity. We hold investments in FHLB stock for the purpose of maintaining credit lines with the FHLB. The credit availability is based on a percentage of the subsidiary bank’s total assets as reported in their most recent quarterly financial information submitted to the FHLB and subject to the pledging of sufficient collateral.

At March 31, 2014 and December 31, 2013, there were $21.2 million and $96.3 million in advances outstanding, respectively. In addition, we had $25.6 million in letters of credit outstanding as of March 31, 2014 and December 31, 2013 and collateral available under our agreements with the FHLB provided for incremental borrowing availability of up to approximately $209.7 million and $95.4 million, respectively.

We believe that we have adequate funding sources through unused borrowing capacity from the FHLB, unpledged investment securities, cash on hand and on deposit in other financial institutions, loan principal repayment and potential asset maturities and sales to meet our foreseeable liquidity requirements and contractual obligations.

As of March 31, 2014 and December 31, 2013, our holding company had cash of approximately $90.1 million and $109.9 million, respectively. This cash is available for providing capital support to our subsidiary bank and for other general corporate purposes, including potential future acquisitions. The decline in cash at our holding company was primarily due to the repurchase of $22.7 million of common stock during the three months ended March 31, 2014.

We calculate tangible book value, and tangible book value per share, which are non-GAAP measures because we believe they are useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. Tangible book value is equal to book value less goodwill and core deposit intangibles, net of related deferred tax liabilities. We believe these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should not be viewed as a substitute for total shareholders’ equity. The following table sets forth a reconciliation of tangible book value and tangible book value per share to total shareholders’ equity, which is the most directly comparable GAAP measure:

(Dollars in thousands, except per share amounts)
	March 31, 2014			December 31, 2013
Shareholder’s equity	$	1,103,756		$	1,112,788
Less: Goodwill		(134,522	)		(131,987	)
Less: Core deposits and other intangibles, net of taxes		(13,523	)		(14,290	)
Tangible Book Value	$	955,711		$	966,511
Book Value Per Share	$	21.59		$	21.36
Tangible Book Value Per Share	$	18.69		$	18.55

We also calculate fully-marked book value and fully-marked tangible book value, which are non-GAAP measures that depict the economic value of equity. These measures include adjustments of $167.1 million and $162.4 million in net favorable pre-tax differences between the fair values for financial assets and liabilities and their respective carrying amounts as of March 31, 2014 and December 31, 2013, respectively.

53

The following table sets forth a reconciliation of fully-marked book value and fullly-marked tangible book value to tangible book value as reconciled above:

(Dollars in thousands, except per share amounts)	March 31, 2014						December 31, 2013
	Fair Value		Carrying Value		Difference		Fair Value		Carrying Value		Difference
Total financial assets	$	6,034,735	$	5,852,018	$	182,717	$	6,082,814	$	5,901,843	$	180,971
Total financial liabilities		5,398,921		5,383,288		15,633		5,464,675		5,446,082		18,593
Net financial assets						167,084						162,378
Net financial assets, net of tax effect						102,189						99,311
Plus: Tangible book value						955,711						966,511
Fully-marked Tangible Book Value					$	1,057,900					$	1,065,822
Fully-marked Book Value Per Share					$	23.59					$	23.27
Fully-marked Tangible Book Value Per Share					$	20.69					$	20.46

The most significant difference between carrying value and estimated fair value of financial instruments is the differential between the carrying value and estimated fair value of our loan portfolio. As described in Note 13 to the Company’s Consolidated Financial Statements, the estimated fair value of loans exceeded their carrying value by approximately $182.1 million and $186.4 million at March 31, 2014 and December 31, 2013, respectively. This difference arises as acquired loans were initially recorded at acquisition date fair values which incorporated management’s expectation of lifetime credit losses. As our loan cash flow expectations and experience has generally improved from our original expectations and the market interest rates for similar instruments have generally declined, our estimates of fair value have increased. These estimates utilize discounted cash flows as a primary valuation approach incorporating collateral value, prepayment and credit risk (including consumer credit scores where applicable) along with the LIBOR/Swap curve for market interest rates.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk Management

The Company pursues a conservative strategy with respect to interest rate risk management, with the goal of minimizing the risk that interest rate volatility will negatively impact our financial results. Due to the current low level of interest rates, we regard rising interest rates as the most likely source of risk and accordingly have sought to maintain an asset-sensitive position.

There are several components to our conservative interest rate strategy. First, we avoid holding loans with long duration. At March 31, 2014, approximately 51% of the loan portfolio was variable rate, and of the remaining fixed rate loans, the vast majority had terms of five years or less. Second, the purpose of our securities portfolio is to provide liquidity and to manage interest rate sensitivity, and as such we limit its duration. At March 31, 2014, securities accounted for 17% of assets, and the effective duration of the portfolio was 3.0 years with limited extension risk to 3.3 years in a plus 300 immediate parallel shift in interest rates. We utilize average life estimates based on prepayment rates obtained from an independent source. Third, we seek to fund the Bank to the extent possible with long-duration core deposits, and within core deposits, we emphasize checking account balances as the most stable and least risky source of funds. At March 31, 2014, core deposits accounted for 73% of total deposits, and checking balances accounted for 61% of core deposits.

We continuously monitor the Bank’s interest rate risk profile through our Asset Liability Committee, which consists of our Chief Executive Officer, Chief Financial Officer, Chief Credit Officer, Chief of Strategic Planning, Treasurer, business unit heads and certain other officers. To manage interest rate risk, our Board of Directors has established quantitative and qualitative guidelines with respect to our net interest income exposure and how predefined interest rate shocks affect our financial performance, measured in terms of forecast net interest income and economic value of equity, which is the intrinsic value of assets, less the intrinsic value of liabilities. Under our policy, these predefined rate shocks include minus 300, minus 200, minus 100, plus 100, plus 200 and plus 300 basis point immediate parallel shifts in interest rates. Because of the current low level of interest rates, we treat the minus 200 and minus 300 rate shocks as highly unlikely and are not currently attempting to comply with exposure limits for these shocks. In addition to monitoring our compliance with these policies, management undertakes additional analysis, considering a wide range of possible interest rate fluctuations, including changes in the shape of the yield curve, and assessing the sensitivity of these results to key assumptions, including the behavior of depositors and loan customers.

Based upon the current interest rate environment, as of March 31, 2014, our sensitivity to interest rate risk was as follows:

(Dollars in thousands)	Next 12 Months Net Interest Income						Economic Value of Equity
Interest Rate Change in Basis Points	$ Change			% Change			$ Change			% Change
300	$	18,552			7.9	%	$	88,897			6.8	%
200		11,861			5.0	%		63,906			4.9	%
100		5,315			2.3	%		34,350			2.6	%
—		—			0.0	%		—			0.0	%
(100)		(6,765	)		(2.9	)%		(52,782	)		(4.1	)%

We used many assumptions to calculate the impact of changes in interest rates on our portfolio, and actual results may not be similar to projections due to several factors, including the timing and frequency of rate changes, market conditions and the shape of the yield curve. Actual results may also differ due to our actions, if any, in response to the changing rates. In calculating these exposures, we use an interest rate simulation model which is validated by third-party reviewers on an annual basis.

In the event the model indicates an unacceptable level of risk, we may take a number of actions to reduce this risk, including changing the terms, pricing, and conditions of new loans and deposits, the sale of a portion of our available for sale investment portfolio or the use of risk management strategies such as interest rate swaps and caps. As of March 31, 2014, we were in compliance with all of the limits and policies established by our Board of Directors with the exception of minus 200 and minus 300 instantaneous parallel rate shifts.

54

Inflation Risk Management

Inflation has an important impact on the growth of total assets in the banking industry and creates a need to increase equity capital to higher than normal levels in order to maintain an appropriate equity-to-assets ratio. We cope with the effects of inflation by managing our interest rate sensitivity position through our asset/liability management program, and by periodically adjusting our pricing of services and banking products to take into consideration current costs.

ITEM 4: CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, they have concluded that the Company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and are also designed to ensure that the information required to be disclosed in the reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

(b) Internal Control Over Financial Reporting

Changes in internal control over financial reporting

There has been no change in the Company’s internal control over financial reporting during the period ended March 31, 2014 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

From time to time we are a party to various litigation matters incidental to the conduct of our business. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, prospects, financial condition, results of operations or liquidity.

ITEM 1A: RISK FACTORS

There have been no material changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission.

ITEM 2: UNREGISTERED SALES OF EQUITY AND USE OF PROCEEDS

The following table provides information regarding repurchases of the Company’s common stock by the Company during the three months ended March 31, 2014:

					Total Number of
					Shares Purchased		Maximun Dollar Value
					as Part of Publicly		of Shares that May Yet
	Total Number of		Average Price Paid		Announced Plans		Be Purchased Under
Period	Shares Purchased		Per Share		or Programs		the Program
January 1-31		304,466	$	23.00		304,466	$	79,733,241
February 1-28		14,965,853		22.83		14,965,853		64,767,388
March 1-31		7,390,212		24.65		7,390,212		57,377,176
Total		22,660,531	$	23.39		22,660,531	$	57,377,176

During 2013, the Board of Directors authorized the repurchase of up to $150.0 million of the Company’s common stock to be made from time to time, on the open market or in privately negotiated transactions. The approved stock repurchase program did not obligate the Company to repurchase any particular amount of shares. As of March 31, 2014, the Company has repurchased $92.6 million, or 4,730,182 common shares at an average price of $19.58 per share. As of March 31, 2014, the Company had $57.4 million of remaining availability for future share repurchases under the current authorization.

55

ITEM 3: DEFAULT UPON SENIOR SECURITIES

None

ITEM 4: MINE SAFETY DISCLOSURES

None

ITEM 5: OTHER INFORMATION

None

ITEM 6: EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Exhibit Number	Description
31.1	Chief Executive Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Users of this data are advised that pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CAPITAL BANK FINANCIAL CORP.
Date: May 8, 2014	/s/ R. Eugene Taylor
	R. Eugene Taylor
	Chairman and Chief Executive Officer
Date: May 8, 2014	/s/ Christopher G. Marshall
	Christopher G. Marshall Chief Financial Officer
	(Principal Accounting Officer)

57

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, R. Eugene Taylor, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Capital Bank Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2014	/s/ R. Eugene Taylor
	R. Eugene Taylor Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Christopher G. Marshall, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Capital Bank Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2014	/s/ Christopher G. Marshall
	Christopher G. Marshall Chief Financial Officer (Principal Accounting Officer)

EX-32.1

Exhibit 32.1

Chief Executive Officer’s Certification required under Section 906 of Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Capital Bank Financial Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, R. Eugene Taylor, Chief Executive Officer, certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: (1) this Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: May 8, 2014	/s/ R. Eugene Taylor
	R. Eugene Taylor Chairman and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Capital Bank Financial Corp. and will be retained by Capital Bank Financial Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Chief Financial Officer’s Certification required under Section 906 of Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Capital Bank Financial Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, Christopher G. Marshall, Chief Financial Officer, certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge (1) this Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: May 8, 2014	/s/ Christopher G. Marshall
	Christopher G. Marshall Chief Financial Officer (Principal Accounting Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Capital Bank Financial Corp. and will be retained by Capital Bank Financial Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Earnings Per Common Share - Weighted Average Anti-Dilutive Stock Options and Unvested Restricted Shares Excluded from the Computation of Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive	15	2,871
Restricted Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive

XML

Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Class of Loans and by Impairment Evaluation (Detail) (Non-PCI Loans [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 454	$ 512
Allowance for Loan Losses, Collectively Evaluated for Impairment	19,740	18,439
Allowance for Loan Losses, Purchased Credit-Impaired	35,412	37,900
Loans, Individually Evaluated for Impairment	10,719	15,824
Loans, Collectively Evaluated for Impairment	2,790,001	2,650,649
Loans, Purchased Credit-Impaired	1,740,932	1,877,544
Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,287	3,997
Allowance for Loan Losses, Purchased Credit-Impaired	10,396	10,733
Loans, Individually Evaluated for Impairment	872	877
Loans, Collectively Evaluated for Impairment	485,114	440,640
Loans, Purchased Credit-Impaired	709,111	773,749
Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	426	507
Allowance for Loan Losses, Collectively Evaluated for Impairment	9,284	8,984
Allowance for Loan Losses, Purchased Credit-Impaired	2,019	3,272
Loans, Individually Evaluated for Impairment	8,753	14,467
Loans, Collectively Evaluated for Impairment	1,388,532	1,343,381
Loans, Purchased Credit-Impaired	473,158	506,712
Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	28	5
Allowance for Loan Losses, Collectively Evaluated for Impairment	5,845	4,990
Allowance for Loan Losses, Purchased Credit-Impaired	22,448	23,280
Loans, Individually Evaluated for Impairment	1,094	207
Loans, Collectively Evaluated for Impairment	850,001	805,622
Loans, Purchased Credit-Impaired	512,202	547,373
Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	324	468
Allowance for Loan Losses, Purchased Credit-Impaired	549	615
Loans, Individually Evaluated for Impairment		273
Loans, Collectively Evaluated for Impairment	66,354	61,006
Loans, Purchased Credit-Impaired	46,461	49,710
Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,651	1,615
Allowance for Loan Losses, Purchased Credit-Impaired	2,178	3,020
Loans, Individually Evaluated for Impairment	872	877
Loans, Collectively Evaluated for Impairment	333,951	286,685
Loans, Purchased Credit-Impaired	455,875	488,171
Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,501	1,201
Allowance for Loan Losses, Purchased Credit-Impaired	7,391	7,016
Loans, Individually Evaluated for Impairment
Loans, Collectively Evaluated for Impairment	54,828	67,789
Loans, Purchased Credit-Impaired	201,362	232,705
Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	105	116
Allowance for Loan Losses, Purchased Credit-Impaired	298	204
Loans, Individually Evaluated for Impairment
Loans, Collectively Evaluated for Impairment	32,439	29,187
Loans, Purchased Credit-Impaired	36,262	38,501
1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,030	1,065
Allowance for Loan Losses, Purchased Credit-Impaired	529	493
Loans, Individually Evaluated for Impairment
Loans, Collectively Evaluated for Impairment	63,896	56,979
Loans, Purchased Credit-Impaired	15,612	14,372
Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,720	2,611
Allowance for Loan Losses, Purchased Credit-Impaired	810	1,839
Loans, Individually Evaluated for Impairment	3,389	4,844
Loans, Collectively Evaluated for Impairment	716,857	686,409
Loans, Purchased Credit-Impaired	341,325	366,895
Commercial and Industrial Loans [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	426	507
Allowance for Loan Losses, Collectively Evaluated for Impairment	6,563	6,370
Allowance for Loan Losses, Purchased Credit-Impaired	1,209	1,433
Loans, Individually Evaluated for Impairment	5,364	9,623
Loans, Collectively Evaluated for Impairment	669,162	654,296
Loans, Purchased Credit-Impaired	131,833	139,817
Lease Financing [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	1	3
Allowance for Loan Losses, Purchased Credit-Impaired
Loans, Individually Evaluated for Impairment
Loans, Collectively Evaluated for Impairment	2,513	2,676
Loans, Purchased Credit-Impaired
1-4 Family Residential [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	3
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,512	2,279
Allowance for Loan Losses, Purchased Credit-Impaired	17,868	19,445
Loans, Individually Evaluated for Impairment	175
Loans, Collectively Evaluated for Impairment	405,905	377,668
Loans, Purchased Credit-Impaired	390,660	418,642
Home Equity Loans [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	17
Allowance for Loan Losses, Collectively Evaluated for Impairment	474	398
Allowance for Loan Losses, Purchased Credit-Impaired	4,384	3,471
Loans, Individually Evaluated for Impairment	757
Loans, Collectively Evaluated for Impairment	270,323	270,170
Loans, Purchased Credit-Impaired	111,866	116,196
Other Consumer Loans [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan Losses, Individually Evaluated for Impairment	8	5
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,859	2,313
Allowance for Loan Losses, Purchased Credit-Impaired	196	364
Loans, Individually Evaluated for Impairment	162	207
Loans, Collectively Evaluated for Impairment	173,773	157,784
Loans, Purchased Credit-Impaired	$ 9,676	$ 12,535

XML

Loans - Summary of Company's Estimate of Cash Flows for Purchased Credit-Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Receivables [Abstract]
2014	$ 84,561
2015	85,901
2016	56,292
2017	39,098
2018	26,416
Thereafter	54,727
Total	$ 346,995	$ 383,775	$ 491,237	$ 553,348

XML

Stock-Based Compensation - Summary of Components and Classification of Stock-Based Compensation Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 728	$ 1,577
Employee Stock Option [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	195	83
Restricted Stock Awards [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 533	$ 1,494

XML

Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Class of Loans and by Impairment Evaluation (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Loans collectively evaluated for impairment	$ 425.9	$ 435.0
Loans collectively evaluated for impairment, unamortized purchase discounts (Premium)	$ 15.5	$ 16.4

XML

Fair Value - Fair Value Measurements on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (Significant Unobservable Inputs (Level 3) [Member], Fair Value on Recurring Basis [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Corporate Bonds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 26
Included in other comprehensive income
Ending balance		26
Industrial Revenue Bonds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	3,859	3,800
Principal reduction	(170)
Included in other comprehensive income	38	57
Ending balance	3,727	3,857
Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		297
Included in other comprehensive income		10
Ending balance		$ 307

XML

Loans - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
1-4 family residential loans	$ 4,833,000		$ 8,012,000
Deferred loan origination costs	4,800,000		3,800,000
Total loans	4,546,485,000		4,552,029,000
CVR expense	767,000	2,883,000
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	112,815,000		110,989,000
Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,870,443,000		1,864,560,000
Total Commercial [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Analysis of loans individually by classification of credit risk	This analysis is performed at origination and upon identification of a material change for all loans, on annual basis for commercial loans exceeding $0.5 million and at least quarterly for loans not rated Pass.
Analysis of loans individually by classification of credit risk	500,000
Farm Land [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	46,700,000		49,700,000
State and Political Subdivision Obligations [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	41,300,000		36,200,000
Deposit Customer Overdraft [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,500,000		$ 2,200,000

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Components and Classification of Stock-Based Compensation Expense

The following table summarizes the components and classification of stock-based compensation expense for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Stock options	$	195	$	83
Restricted stock		533		1,494
Total stock-based compensation expense	$	728	$	1,577

Summary of Stock Option Activity

A summary of the stock option activity for the three months ended March 31, 2014 and 2013 is as follows:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
Balance January 1,		3,124	$	20.50		2,890	$	21.39
Granted		—		—		—		—
Excercised		—		—		—		—
Expired or Forfeited		2		301.94		3		178.57
Balance March 31,		3,122	$	20.40		2,887	$	21.25

Summary of Options Outstanding

Options outstanding at March 31, 2014 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$18.00		244		9.14 years	$	18.00		—	$	—
$20.00		2,864		6.18 years		20.00		2,864		20.00
$28.44 - $2,026.00		14		3.56 years		140.70		14		140.70
$18.00 - $2,026.00		3,122		6.40 years	$	20.40		2,878	$	20.60

Options outstanding at March 31, 2013 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$20.00		2,864		7.18 years	$	20.00		2,864	$	20.00
$28.44 - $2,026.00		23		3.35 years		173.92		23		178.58
$20.00 - $2,026.00		2,887		7.15 years	$	21.25		2,887	$	21.24

Summary of Unvested Restricted Stock Awards

The following table summarizes unvested restricted stock activity for the three months ended March 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Grant- Date Fair Value Per Share		Shares		Weighted Average Grant- Date Fair Value Per Share
Balance January 1,		1,216	$	14.28		1,212	$	14.27
Granted		—		—		—		—
Vested or released		—		—		—		—
Expired or forfeited		—		—		—		—
Balance March 31,		1,216	$	14.28		1,212	$	14.27

XML

Fair Value - Quantitative Information About Fair Value Measurements (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	$ 5,346,733	$ 5,342,254
Other real estate owned	4,738,821	4,755,099
Fair Value on Recurring Basis [Member] | Industrial Revenue Bonds [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value	3,727	3,859
Valuation Technique	Discounted cash flow	Discounted cash flow
Fair Value on Recurring Basis [Member] | Industrial Revenue Bonds [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Illiquidity factor	0.50%	0.50%
Fair Value on Recurring Basis [Member] | Industrial Revenue Bonds [Member] | Discounted Cash Flow [Member] | Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount Rate	3.70%	3.70%
Fair Value on Recurring Basis [Member] | Industrial Revenue Bonds [Member] | Discounted Cash Flow [Member] | Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount Rate	3.80%	3.90%
Fair Value on Nonrecurring Basis [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Other real estate owned	100,821	118,579
Impaired loans	$ 1,533	$ 1,332
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | OREO [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Valuation Technique	Fair value of property	Fair value of property
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | OREO [Member] | Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Appraised value less costs to sell	6.00%	7.00%
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | OREO [Member] | Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Appraised value less costs to sell	10.00%	10.00%
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | Impaired Loans Commercial And Residential [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Valuation Technique	Fair value of collateral
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | Impaired Loans Commercial And Residential [Member] | Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Appraised value less costs to sell	6.00%
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | Impaired Loans Commercial And Residential [Member] | Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Appraised value less costs to sell	8.00%
Fair Value on Nonrecurring Basis [Member] | Fair Value of Property [Member] | Impaired Loans Commercial [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Valuation Technique		Fair value of collateral
Appraised value less costs to sell		8.00%

XML

Stock-Based Compensation - Summary of Unvested Restricted Stock Awards (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Beginning Balance, Shares	1,216	1,212
Granted, Shares
Exercised, Shares
Expired or forfeited, Shares
Ending Balance, Shares	1,216	1,212
Beginning Balance, Value	$ 14.28	$ 14.27
Granted, Value
Exercised, Value
Expired or forfeited, Value
Ending Balance, Value	$ 14.28	$ 14.27

XML

FDIC Indemnification Asset - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014 Agreement
Fdic Indemnification Asset [Abstract]
Percentage future credit losses and workout expenses to be absorbed by FDIC	80.00%
Single family shared loss agreement number	3
Commercial and other loans shared agreement number	3
Single family shared loss agreement period	10 years
Commercial and other loans shared agreement period	5 years
Recovery period to FDIC for other covered assets	8 years

XML

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets
Trading securities	$ 6,562	$ 6,348
Available-for-sale securities
Available for sale securities	657,788	685,441
Asset-Backed Securities [Member]
Available-for-sale securities
Available for sale securities	127,234	133,225
Industrial Revenue Bonds [Member]
Available-for-sale securities
Available for sale securities	3,727	3,859
Marketable Equity Securities [Member]
Available-for-sale securities
Available for sale securities	936	931
Collateralized Debt Obligations [Member]
Available-for-sale securities
Available for sale securities		800
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets
Trading securities	4,337	4,477
Significant Other Observable Inputs (Level 2) [Member]
Assets
Trading securities	2,225	1,871
Available-for-sale securities
Available for sale securities	654,061	681,582
Gross asset value of derivatives	7	15
Liabilities
Gross liability value of derivatives	574	1,330
Significant Unobservable Inputs (Level 3) [Member]
Available-for-sale securities
Available for sale securities	3,727	3,859
Fair Value on Recurring Basis [Member]
Assets
Trading securities	6,562	6,348
Available-for-sale securities
Available for sale securities	657,788	685,441
Gross asset value of derivatives	7	15
Liabilities
Gross liability value of derivatives	574	1,330
Fair Value on Recurring Basis [Member] | Asset-Backed Securities [Member]
Available-for-sale securities
Available for sale securities	127,234	133,225
Fair Value on Recurring Basis [Member] | Mortgage-Backed Securities-Residential [Member]
Available-for-sale securities
Available for sale securities	525,891	546,626
Fair Value on Recurring Basis [Member] | Industrial Revenue Bonds [Member]
Available-for-sale securities
Available for sale securities	3,727	3,859
Fair Value on Recurring Basis [Member] | Marketable Equity Securities [Member]
Available-for-sale securities
Available for sale securities	936	931
Fair Value on Recurring Basis [Member] | Collateralized Debt Obligations [Member]
Available-for-sale securities
Available for sale securities		800
Fair Value on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets
Trading securities	4,337	4,477
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets
Trading securities	2,225	1,871
Available-for-sale securities
Available for sale securities	654,061	681,582
Gross asset value of derivatives	7	15
Liabilities
Gross liability value of derivatives	574	1,330
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-Backed Securities [Member]
Available-for-sale securities
Available for sale securities	127,234	133,225
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities-Residential [Member]
Available-for-sale securities
Available for sale securities	525,891	546,626
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Marketable Equity Securities [Member]
Available-for-sale securities
Available for sale securities	936	931
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Collateralized Debt Obligations [Member]
Available-for-sale securities
Available for sale securities		800
Fair Value on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available-for-sale securities
Available for sale securities	3,727	3,859
Fair Value on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Industrial Revenue Bonds [Member]
Available-for-sale securities
Available for sale securities	$ 3,727	$ 3,859

XML

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financial Assets
Trading securities	$ 6,562	$ 6,348
Investment securities available-for-sale	657,788	685,441
Investment securities held-to-maturity	449,739	459,693
Financial Liabilities
Federal Home Loan Bank advances, Carrying Value	21,231	96,278
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets
Cash and cash equivalents	174,880	164,441
Trading securities	4,337	4,477
Total financial assets	179,217	168,918
Significant Other Observable Inputs (Level 2) [Member]
Financial Assets
Trading securities	2,225	1,871
Investment securities available-for-sale	654,061	681,582
Investment securities held-to-maturity	449,739	459,693
Loans, net	4,833	8,012
Receivable from FDIC	5,832	7,624
Gross asset value of derivatives, Estimated Fair Value	7	15
Total financial assets	1,116,697	1,158,797
Financial Liabilities
Federal home loan bank advances, Estimated Fair Value	21,161	96,241
Short-term borrowings	30,453	24,850
Gross liability value of derivatives, Estimated Fair Value	574	1,330
Total financial liabilities	52,188	122,421
Significant Unobservable Inputs (Level 3) [Member]
Financial Assets
Investment securities available-for-sale	3,727	3,859
Loans, net	4,668,155	4,673,542
FDIC indemnification asset	28,744	33,610
Other	38,195	44,088
Total financial assets	4,738,821	4,755,099
Financial Liabilities
Noncontractual deposits	3,809,771	3,737,566
Contractual deposits	1,382,909	1,448,032
Long-term borrowings	55,358	55,861
Subordinated debentures	98,695	100,795
Total financial liabilities	5,346,733	5,342,254
Carrying Value [Member]
Financial Assets
Cash and cash equivalents	174,880	164,441
Trading securities	6,562	6,348
Investment securities available-for-sale	657,788	685,441
Investment securities held-to-maturity	449,131	465,098
Loans, net	4,490,879	4,495,178
Receivable from FDIC	5,832	7,624
FDIC indemnification asset	28,744	33,610
Other	38,195	44,088
Gross asset value of derivatives, Carrying Value	7	15
Total financial assets	5,852,018	5,901,843
Financial Liabilities
Noncontractual deposits	3,809,771	3,737,566
Contractual deposits	1,382,422	1,447,497
Federal Home Loan Bank advances, Carrying Value	21,231	96,278
Short-term borrowings	30,453	24,850
Long-term borrowings	53,223	53,449
Subordinated debentures	85,614	85,112
Gross liability value of derivatives, Carrying Value	574	1,330
Total financial liabilities	5,383,288	5,446,082
Estimated Fair Value [Member]
Financial Assets
Cash and cash equivalents	174,880	164,441
Trading securities	6,562	6,348
Investment securities available-for-sale	657,788	685,441
Investment securities held-to-maturity	449,739	459,693
Loans, net	4,672,988	4,681,554
Receivable from FDIC	5,832	7,624
FDIC indemnification asset	28,744	33,610
Other	38,195	44,088
Gross asset value of derivatives, Estimated Fair Value	7	15
Total financial assets	6,034,735	6,082,814
Financial Liabilities
Noncontractual deposits	3,809,771	3,737,566
Contractual deposits	1,382,909	1,448,032
Federal home loan bank advances, Estimated Fair Value	21,161	96,241
Short-term borrowings	30,453	24,850
Long-term borrowings	55,358	55,861
Subordinated debentures	98,695	100,795
Gross liability value of derivatives, Estimated Fair Value	574	1,330
Total financial liabilities	$ 5,398,921	$ 5,464,675

XML

Fair Value - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				3 Months Ended	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2014 Carrying Value [Member]	Dec. 31, 2013 Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfers of assets and liabilities between levels of the fair value	$ 0
Other real estate owned	120,270	151,613	129,396	154,093	121,500	138,400
Other real estate valuation allowance	$ 3,573	$ 6,590			$ 20,700	$ 19,800

XML

Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Beginning Balance, Shares	3,124	2,890
Stock options granted, Shares
Exercised, Shares
Expired or forfeited, Shares	2	3
Ending Balance, Shares	3,122	2,887
Beginning Balance, Weighted Average Exercise Price Per Share	$ 20.50	$ 21.39
Granted, Weighted Average Exercise Price Per Share
Exercised, Weighted Average Exercise Price Per Share
Expired or forfeited, Weighted Average Exercise Price Per Share	$ 301.94	$ 178.57
Ending Balance, Weighted Average Exercise Price Per Share	$ 20.40	$ 21.25

XML

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2014

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity

The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at March 31, 2014, and December 31, 2013 are presented below:

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	127,912	$	—	$	678	$	127,234
Marketable equity securities		946		—		10		936
Mortgage-backed securities—residential issued by government sponsored entities		526,533		2,734		3,376		525,891
Industrial revenue bond		3,580		147		—		3,727
Total	$	658,971	$	2,881	$	4,064	$	657,788
Held-to-Maturity
U.S. Government agencies	$	14,777	$	—	$	322	$	14,455
State and political subdivisions—tax exempt		14,233		182		—		14,415
State and political subdivisions—taxable		543		—		2		541
Mortgage-backed securities—residential issued by government sponsored entities		419,578		1,697		947		420,328
Total	$	449,131	$	1,879	$	1,271	$	449,739

(Dollars in thousands)	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	133,647	$	363	$	785	$	133,225
Marketable equity securities		946		—		15		931
Mortgage-backed securities—residential issued by government sponsored entities		549,869		2,337		5,580		546,626
Industrial revenue bond		3,750		109		—		3,859
Collateralized debt obligations		505		295		—		800
Total	$	688,717	$	3,104	$	6,380	$	685,441
Held-to-Maturity
U.S. Government agencies	$	14,972	$	—	$	401	$	14,571
State and political subdivisions—tax exempt		14,201		27		129		14,099
State and political subdivisions—taxable		545		—		12		533
Mortgage-backed securities—residential issued by government sponsored entities		435,380		328		5,218		430,490
Total	$	465,098	$	355	$	5,760	$	459,693

Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity by Contractual Maturity

The estimated fair value of investment securities at March 31, 2014, by contractual maturity, is shown as follows. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Estimated Fair Value		Yield
Available-for-sale
Due in one year or less	$	—	$	—		—
Due after one year through five years		—		—		—
Due after five years through ten years		56,958		56,907		0.75	%
Due after ten years		74,534		74,054		0.60	%
Mortgage-backed securities—residential issued by government sponsored entities		526,533		525,891		1.66	%
		658,025		656,852		1.46	%
Marketable equity securities		946		936
Total	$	658,971	$	657,788
	Amortized Cost		Estimated Fair Value		Yield
Held-to-maturity
Due in one year or less	$	670	$	670		0.85	%
Due after one year through five years		1,126		1,138		2.00	%
Due after five years through ten years		8,687		8,788		3.28	%
Due after ten years		19,070		18,815		2.99	%
Mortgage-backed securities—residential issued by government sponsored entities		419,578		420,328		2.42	%
Total	$	449,131	$	449,739		2.46	%

Securities with Unrealized Losses Not Recognized in Income

Securities with unrealized losses not recognized in income, and the period of time they have been in an unrealized loss position, are as follows:

(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
March 31, 2014
Available-for-Sale
Asset-backed securities	$	52,137	$	206	$	75,097	$	472	$	127,234	$	678
Marketable equity securities		936		10		—		—		936		10
Mortgage-backed securities—residential issued by government sponsored entities		305,368		3,376		—		—		305,368		3,376
Total	$	358,441	$	3,592	$	75,097	$	472	$	433,538	$	4,064
Held-to-Maturity
U.S. Government agencies	$	14,455	$	322	$	—	$	—	$	14,455	$	322
State and political subdivisions—tax exempt		111		—		—		—		111		—
State and political subdivisions—taxable		541		2		—		—		541		2
Mortgage-backed securities—residential issued by government sponsored entities		240,980		947		—		—		240,980		947
Total	$	256,087	$	1,271	$	—	$	—	$	256,087	$	1,271
(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2013
Available-for-Sale
Asset-backed securities	$	102,835	$	785	$	—	$	—	$	102,835	$	785
Marketable equity securities		931		15		—		—		931		15
Mortgage-backed securities—residential issued by government sponsored entities		339,565		5,580		—		—		339,565		5,580
Total	$	443,331	$	6,380	$	—	$	—	$	443,331	$	6,380
Held-to-Maturity
U.S. Government agencies	$	14,571	$	401	$	—	$	—	$	14,571	$	401
State and political subdivisions—tax exempt		10,489		129		—		—		10,489		129
State and political subdivisions—taxable		533		12		—		—		533		12
Mortgage-backed securities—residential issued by government sponsored entities		342,333		5,218		—		—		342,333		5,218
Total	$	367,926	$	5,760	$	—	$	—	$	367,926	$	5,760

Credit Losses Recognized in Earnings

The table below presents a rollforward of the other than temporary impairment credit losses recognized in earnings for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Beginning balance	$	714	$	660
Additions/Subtractions:
Credit losses recognized during the period		—		—
Ending balance	$	714	$	660

XML

Loans - Aging of the Recorded Investment in Past Due Loans, Based on Contractual Terms (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 4,486,046	$ 4,487,166
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	248,615	271,123
Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	15,747	15,991
Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	114,075	120,450
Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	489	959
Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	68,222	77,156
Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,778	5,361
Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	62,191	67,385
Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,480	9,671
Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,127	6,132
Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	50,787	47,791
Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	89	90
Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	56,638	68,217
Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	400	563
Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,345	2,641
Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		305
1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,305	1,801
1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		1
Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	37,092	45,491
Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,289	3,414
Commercial and Industrial Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	31,130	31,665
Commercial and Industrial Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,489	1,947
1-4 Family Residential [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	49,063	55,393
1-4 Family Residential [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,874	2,279
Home Equity Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	12,604	10,332
Home Equity Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,104	4,786
Other Consumer Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	524	1,660
Other Consumer Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,502	2,606
Covered Loans [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	9,184	653
Greater than 90 Days Past Due and Still Accruing/Accreting	28,558	40,437
Nonaccrual
Covered Loans [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	297	146
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,278	1,336
Covered Loans [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,705	107
Greater than 90 Days Past Due and Still Accruing/Accreting	14,527	19,137
Nonaccrual
Covered Loans [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Covered Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,452	260
Greater than 90 Days Past Due and Still Accruing/Accreting	5,931	8,228
Nonaccrual
Covered Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	66	66
Covered Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5,027	286
Greater than 90 Days Past Due and Still Accruing/Accreting	7,806	12,118
Nonaccrual
Covered Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	292	146
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,212	1,270
Covered Loans [Member] | Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting	294	954
Nonaccrual
Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	465	107
Greater than 90 Days Past Due and Still Accruing/Accreting	5,835	10,658
Nonaccrual
Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5
Greater than 90 Days Past Due and Still Accruing/Accreting	8,444	8,479
Nonaccrual
Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,235
Greater than 90 Days Past Due and Still Accruing/Accreting	248
Nonaccrual
Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,443	260
Greater than 90 Days Past Due and Still Accruing/Accreting	5,729	6,631
Nonaccrual
Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	9
Greater than 90 Days Past Due and Still Accruing/Accreting	202	1,597
Nonaccrual
Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	66	66
Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,121	227
Greater than 90 Days Past Due and Still Accruing/Accreting	6,116	10,824
Nonaccrual
Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	29
Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,906	59
Greater than 90 Days Past Due and Still Accruing/Accreting	1,662	1,227
Nonaccrual
Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	292	146
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,183	1,270
Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting	28	67
Nonaccrual
Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual
Non-Covered Loans [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	12,490	16,654
Greater than 90 Days Past Due and Still Accruing/Accreting	198,383	213,379
Nonaccrual
Non-Covered Loans [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5,343	4,035
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	8,829	10,474
Non-Covered Loans [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,798	2,573
Greater than 90 Days Past Due and Still Accruing/Accreting	94,045	98,633
Nonaccrual
Non-Covered Loans [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	9	305
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	480	654
Non-Covered Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,284	4,875
Greater than 90 Days Past Due and Still Accruing/Accreting	59,555	63,793
Nonaccrual
Non-Covered Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	3,007	22
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	3,700	5,273
Non-Covered Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	7,518	8,773
Greater than 90 Days Past Due and Still Accruing/Accreting	41,840	46,208
Nonaccrual
Non-Covered Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,327	3,708
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	4,649	4,547
Non-Covered Loans [Member] | Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	890	433
Greater than 90 Days Past Due and Still Accruing/Accreting	2,943	4,745
Nonaccrual
Non-Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,577	1,463
Greater than 90 Days Past Due and Still Accruing/Accreting	42,910	35,563
Nonaccrual
Non-Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	89	90
Non-Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,221	1,105
Greater than 90 Days Past Due and Still Accruing/Accreting	46,968	58,633
Nonaccrual
Non-Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	9
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	391	563
Non-Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due
Greater than 90 Days Past Due and Still Accruing/Accreting	1,862	2,641
Nonaccrual
Non-Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due		305
Non-Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due		5
Greater than 90 Days Past Due and Still Accruing/Accreting	2,305	1,796
Nonaccrual
Non-Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual		1
Non-Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,058	4,626
Greater than 90 Days Past Due and Still Accruing/Accreting	28,862	33,974
Nonaccrual
Non-Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,290	20
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,999	3,394
Non-Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	226	249
Greater than 90 Days Past Due and Still Accruing/Accreting	30,693	29,819
Nonaccrual
Non-Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	717	2
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,701	1,879
Non-Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	5,127	6,696
Greater than 90 Days Past Due and Still Accruing/Accreting	35,699	37,646
Nonaccrual
Non-Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	134	862
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	1,711	1,417
Non-Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	2,144	1,733
Greater than 90 Days Past Due and Still Accruing/Accreting	5,892	7,313
Nonaccrual
Non-Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	237	1,046
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	2,392	2,324
Non-Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	247	344
Greater than 90 Days Past Due and Still Accruing/Accreting	249	1,249
Nonaccrual
Non-Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1,956	1,800
Greater than 90 Days Past Due and Still Accruing/Accreting
Nonaccrual	$ 546	$ 806

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Investment Securities - Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule Of Marketable Securities [Line Items]
Amortized Cost	$ 658,971	$ 688,717
Available for sale securities	657,788	685,441
Available for sale securities to yield
Due in one year or less	670
Due after one year through five years	1,126
Due after five years through ten years	8,687
Due after ten years	19,070
Total, amortized cost	449,131	465,098
Due in one year or less	670
Due after one year through five years	1,138
Due after five years through ten years	8,788
Due after ten years	18,815
Total, estimated fair value	449,739	459,693
Due in one year or less	0.85%
Due after one year through five years	2.00%
Due after five years through ten years	3.28%
Due after ten years	2.99%
Total	2.46%
Mortgage-Backed Securities-Residential Issued by Government Sponsored Entities [Member]
Schedule Of Marketable Securities [Line Items]
Mortgage-backed securities residential, Amortized Cost	526,533
Amortized Cost	526,533	549,869
Mortgage-backed securities-residential	525,891
Available for sale securities	525,891	546,626
Mortgage-backed securities-residential, Yield	1.66%
Total, amortized cost	419,578	435,380
Total, estimated fair value	420,328	430,490
Mortgage-backed securities-residential issued by government sponsored entities	2.42%
Debt Securities [Member]
Schedule Of Marketable Securities [Line Items]
Due in one year or less, Amortized Cost
Due after one year through five years, Amortized Cost
Due after five years through ten years, Amortized Cost	56,958
Due after ten years, Amortized Cost	74,534
Available-for-sale debt securities, Amortized Cost	658,025
Due in one year or less, Estimated Fair Value
Due after one year through five years, Estimated Fair Value
Due after five years through ten years, Estimated Fair Value	56,907
Due after ten years, Estimated Fair Value	74,054
Estimated Fair Value, Gross	656,852
Due in one year or less, Yield
Due after one year through five years, Yield
Due after five years through ten years, Yield	0.75%
Due after ten years, Yield	0.60%
Available for sale securities-Debt securities to yield	1.46%
Marketable Equity Securities [Member]
Schedule Of Marketable Securities [Line Items]
Available-for-sale equity securities, Amortized Cost	946
Amortized Cost	946	946
Available for sale securities	$ 936	$ 931
Available for sale securities to yield

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax rates	38.71%	49.02%
Deferred income tax asset, net	$ 158,074,000		$ 166,762,000
Valuation allowance	0		0
Federal and state net operating loss carryforwards	97,500,000	101,900,000
Year of expiration	2029
Estimated amount of annual limitation of acquired companies	10,900,000
Uncertain tax positions	$ 0		$ 0

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Basis of Presentation - Additional Information (Detail) (USD $) In Thousands, except Share data in Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 Office	Dec. 31, 2013	Mar. 31, 2014 Prior Period Adjustment [Member]	Sep. 30, 2012 Capital Bank Corporation [Member]
Summary Of Significant Accounting Policies [Line Items]
Total number of full service banking offices	163
Outstanding common shares converted into CBF's Class A common stock				3.7
Goodwill	$ 134,522	$ 131,987	$ 2,500

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Allowance for Loan Losses - Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Allowance For Loan And Lease Losses [Line Items]
Balance, beginning of period	$ 56,851	$ 57,262
Reversal of provision for loan losses on PCI loans	(24)	5,402
Balance, end of period	55,606	57,171
PCI Loans [Member]
Allowance For Loan And Lease Losses [Line Items]
Reversal of provision for loan losses on PCI loans	(2,488)	(3,148)
Non-PCI Loans [Member]
Allowance For Loan And Lease Losses [Line Items]
Reversal of provision for loan losses on PCI loans	2,464	8,550
Loans charged off	(1,956)	(7,321)
Recoveries of loans previously charged off	$ 735	$ 1,828

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Shareholders' Equity and Minimum Regulatory Capital Requirements - Minimum Ratios Along with the Actual Ratios for the Company and the Bank (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Adequately Capitalized Requirement Tier 1 Capital (to Average Assets) amount	$ 252,747	$ 254,126
Adequately Capitalized Requirement, Tier 1 Capital (to Average Assets)	4.00%	4.00%
Actual Tier 1 Capital (to Average Assets) amount	944,237	949,619
Actual, Tier 1 Capital (to Average Assets)	14.90%	14.90%
Adequately Capitalized Requirement Tier 1 Capital (to Risk Weighted Assets) amount	191,951	192,428
Adequately Capitalized Requirement, Tier 1 Capital (to Risk Weighted Assets)	4.00%	4.00%
Actual Tier 1 Capital (to Risk Weighted Assets) amount	944,237	949,619
Actual, Tier 1 Capital (to Risk Weighted Assets)	19.70%	19.70%
Adequately Capitalized Requirement Total Capital (to Risk Weighted Assets) amount	383,902	384,856
Adequately Capitalized Requirement, Total Capital (to Risk Weighted Assets)	8.00%	8.00%
Actual Total Capital (to Risk Weighted Assets) amount	1,003,800	1,010,422
Actual, Total Capital (to Risk Weighted Assets)	20.90%	21.00%
Capital Bank, NA [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Well Capitalized Requirement Tier 1 Capital (to Average Assets) amount	315,423	317,562
Well Capitalized Requirement, Tier 1 Capital (to Average Assets)	5.00%	5.00%
Adequately Capitalized Requirement Tier 1 Capital (to Average Assets) amount	252,338	254,050
Adequately Capitalized Requirement, Tier 1 Capital (to Average Assets)	4.00%	4.00%
Actual Tier 1 Capital (to Average Assets) amount	864,354	849,520
Actual, Tier 1 Capital (to Average Assets)	13.70%	13.40%
Well Capitalized Requirement Tier 1 Capital (to Risk Weighted Assets) amount	287,549	288,410
Well Capitalized Requirement, Tier 1 Capital (to Risk Weighted Assets)	6.00%	6.00%
Adequately Capitalized Requirement Tier 1 Capital (to Risk Weighted Assets) amount	191,699	192,273
Adequately Capitalized Requirement, Tier 1 Capital (to Risk Weighted Assets)	4.00%	4.00%
Actual Tier 1 Capital (to Risk Weighted Assets) amount	864,354	849,520
Actual, Tier 1 Capital (to Risk Weighted Assets)	18.00%	17.70%
Well Capitalized Requirement Total Capital (to Risk Weighted Assets) amount	479,248	480,683
Well Capitalized Requirement, Total Capital (to Risk Weighted Assets)	10.00%	10.00%
Adequately Capitalized Requirement Total Capital (to Risk Weighted Assets) amount	383,398	384,546
Adequately Capitalized Requirement, Total Capital (to Risk Weighted Assets)	8.00%	8.00%
Actual Total Capital (to Risk Weighted Assets) amount	$ 923,760	$ 910,162
Actual, Total Capital (to Risk Weighted Assets)	19.30%	18.90%

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Federal Home Loan Bank Advances and Short-Term Borrowings - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Short-term borrowings	$ 30,453,000	$ 24,850,000
Amounts of eligible collateral provided for incremental borrowing	209,700,000	95,400,000
Letters of credit issued by the Federal Home Loan Bank	25,600,000	25,600,000
Letter of credit used as collateral in lieu of pledging securities	$ 25,200,000	$ 25,200,000

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Loans - Roll Forward of Accretable Yield (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Receivables [Abstract]
Balance, beginning of period	$ 383,775	$ 553,348
Accretion of income	(33,162)	(44,985)
Reclassification from nonaccretable difference	6,667	10,273
Other	(10,285)	(27,399)
Balance, end of period	$ 346,995	$ 491,237

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Basis of Presentation

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

Principles of Consolidation and Nature of Operations

Capital Bank Financial Corp. (“CBF” or the “Company”; formerly known as North American Financial Holdings, Inc.) is a bank holding company incorporated in Delaware and headquartered in Florida whose business is conducted primarily through Capital Bank, National Association (“Capital Bank, NA” or the “Bank”). CBF has a total of 163 full service banking offices located in Florida, North and South Carolina, Tennessee and Virginia.

In September 2012, Capital Bank Corporation (“CBKN”), Green Bankshares Inc. (“GRNB”) and TIB Financial Corp. (“TIBB”), majority owned subsidiaries of the Company, merged with and into Capital Bank Financial Corp. with CBF continuing as the surviving corporation (the “Reorganization”). Upon completion of the Reorganization, the outstanding common shares held by the minority shareholders were converted into an aggregate of 3.7 million shares of CBF’s Class A common stock. The Reorganization was accounted for as a merger with CBF as the acquirer (which is the surviving entity for legal purposes).

On October 1, 2012, the Company completed its acquisition of Southern Community Financial Corporation (“SCMF” or “Southern Community”), a publicly held bank holding company headquartered in Winston Salem, North Carolina.

The accompanying Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and Regulation S-X. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statement presentation. In the opinion of management, all adjustments consisting of normal recurring accruals and disclosures considered necessary for a fair interim presentation have been included. All significant inter-company accounts and transactions have been eliminated in consolidation. For further information refer to the Company’s consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013.

Out of Period Adjustments

During the three months ended March 31, 2014, the Company recorded a correction of an error resulting from the state net operating loss that the Company was not entitled to subsequent to the 2011 Green Bankshares acquisition. The impact of this correction decreased deferred tax assets and increased goodwill by $2.5 million. After evaluating the quantitative and qualitative aspects of this error, the Company concluded that its prior period financial statements were not materially misstated.

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This update clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” This ASU allows for use of the proportional amortization method for qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as a component of income tax expense. This ASU provides for a practical expedient, which allows for amortization of only expected tax credits over the period tax credits are expected to be received. This method is permitted if it produces a measurement that is substantially similar to the measurement that would result from using both tax credits and other tax benefits. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This update requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. For public entities, this ASU is effective for fiscal years and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption on January 1, 2014 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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Federal Home Loan Bank Advances and Short-Term Borrowings - Federal Home Loan Bank Advance Owed (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Contractual Outstanding Amount	$ 21,231	$ 96,278
0.3550 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Contractual Outstanding Amount	20,000	95,000
Maturity Date	May 16, 2014
Contractual Rate	0.36%
0.50% [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Contractual Outstanding Amount	688	724
Maturity Date	Nov. 06, 2017
Contractual Rate	0.50%
0.00% [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Contractual Outstanding Amount	$ 543	$ 554
Maturity Date	Feb. 10, 2026
Contractual Rate	0.00%

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Investment Securities - Securities with Unrealized Losses Not Recognized in Income (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Available-for-sale	$ 358,441	$ 443,331
Unrealized Losses, Less than 12 Months, Available-for-sale	3,592	6,380
Estimated Fair Value, 12 Months or Longer, Available-for-sale	75,097
Unrealized Losses,12 Months or Longer, Available-for-sale	472
Total, Estimated Fair Value, Available-for-sale	433,538	443,331
Total, Unrealized Losses, Available-for-sale	4,064	6,380
Estimated Fair Value, Less than 12 Months, Held-to-maturity	256,087	367,926
Unrealized Losses, Less than 12 Months, Held-to-maturity	1,271	5,760
Estimated Fair Value, 12 Months or Longer, Held-to-maturity
Unrealized Losses, 12 Months or Longer, Held-to-maturity
Total, Estimated Fair Value, Held-to-maturity	256,087	367,926
Total, Unrealized Losses, Held-to-maturity	1,271	5,760
Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Available-for-sale	52,137	102,835
Unrealized Losses, Less than 12 Months, Available-for-sale	206	785
Estimated Fair Value, 12 Months or Longer, Available-for-sale	75,097
Unrealized Losses,12 Months or Longer, Available-for-sale	472
Total, Estimated Fair Value, Available-for-sale	127,234	102,835
Total, Unrealized Losses, Available-for-sale	678	785
Marketable Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Available-for-sale	936	931
Unrealized Losses, Less than 12 Months, Available-for-sale	10	15
Estimated Fair Value, 12 Months or Longer, Available-for-sale
Unrealized Losses,12 Months or Longer, Available-for-sale
Total, Estimated Fair Value, Available-for-sale	936	931
Total, Unrealized Losses, Available-for-sale	10	15
Mortgage-Backed Securities-Residential Issued by Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Available-for-sale	305,368	339,565
Unrealized Losses, Less than 12 Months, Available-for-sale	3,376	5,580
Estimated Fair Value, 12 Months or Longer, Available-for-sale
Unrealized Losses,12 Months or Longer, Available-for-sale
Total, Estimated Fair Value, Available-for-sale	305,368	339,565
Total, Unrealized Losses, Available-for-sale	3,376	5,580
Estimated Fair Value, Less than 12 Months, Held-to-maturity	240,980	342,333
Unrealized Losses, Less than 12 Months, Held-to-maturity	947	5,218
Estimated Fair Value, 12 Months or Longer, Held-to-maturity
Unrealized Losses, 12 Months or Longer, Held-to-maturity
Total, Estimated Fair Value, Held-to-maturity	240,980	342,333
Total, Unrealized Losses, Held-to-maturity	947	5,218
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Held-to-maturity	14,455	14,571
Unrealized Losses, Less than 12 Months, Held-to-maturity	322	401
Estimated Fair Value, 12 Months or Longer, Held-to-maturity
Unrealized Losses, 12 Months or Longer, Held-to-maturity
Total, Estimated Fair Value, Held-to-maturity	14,455	14,571
Total, Unrealized Losses, Held-to-maturity	322	401
States and Political Subdivisions-Tax Exempt [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Held-to-maturity	111	10,489
Unrealized Losses, Less than 12 Months, Held-to-maturity		129
Estimated Fair Value, 12 Months or Longer, Held-to-maturity
Unrealized Losses, 12 Months or Longer, Held-to-maturity
Total, Estimated Fair Value, Held-to-maturity	111	10,489
Total, Unrealized Losses, Held-to-maturity		129
States and Political Subdivisions-Taxable [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated Fair Value, Less than 12 Months, Held-to-maturity	541	533
Unrealized Losses, Less than 12 Months, Held-to-maturity	2	12
Estimated Fair Value, 12 Months or Longer, Held-to-maturity
Unrealized Losses, 12 Months or Longer, Held-to-maturity
Total, Estimated Fair Value, Held-to-maturity	541	533
Total, Unrealized Losses, Held-to-maturity	$ 2	$ 12

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Other Real Estate Owned (Tables)

3 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Other Real Estate Owned

The activity within Other Real Estate Owned (“OREO”) for the three months ended March 31, 2014 and 2013 is presented in the table below. 

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	129,396		$	154,093
Real estate acquired from borrowers		9,706			18,691
Valuation allowance		(3,573	)		(6,590	)
Properties sold and other		(15,259	)		(14,581	)
Balance, end of period	$	120,270		$	151,613

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FDIC Indemnification Asset (Tables)

3 Months Ended

Mar. 31, 2014

Text Block [Abstract]

Schedule of FDIC Indemnification Asset

The following is a summary of the activity in the FDIC indemnification asset:

(Dollars in thousands)
Balance, December 31, 2013	$	33,610
Indemnification asset income		345
Amortization of indemnification asset		(2,510	)
Cash received on reimbursable losses		(2,701	)
Balance, March 31, 2014	$	28,744
Balance, December 31, 2012	$	49,417
Indemnification asset income		(492	)
Amortization of indemnification asset		(1,677	)
Cash received on reimbursable losses		(2,987	)
Balance, March 31, 2013	$	44,261

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Allowance for Loan Losses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Receivables [Abstract]
Loans modified in TDRs with recorded investments	$ 0.3	$ 0

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Investment Securities - Credit Losses Recognized in Earnings (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Investments Debt And Equity Securities [Abstract]
Beginning balance	$ 714	$ 660
Additions/Subtractions:
Credit losses recognized during the period
Ending balance	$ 714	$ 660

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Federal Home Loan Bank Advances and Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Federal Home Loan Bank Advance Owed

The advances as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
Contractual Outstanding Amount March 31, 2014		Contractual Outstanding Amount December 31, 2013		Maturity Date	Fixed Contractual Rate
$	20,000	$	95,000	May 16, 2014	0.36%
	688		724	November 6, 2017	0.50%
	543		554	February 10, 2026	0.00%
$	21,231	$	96,278

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Long Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Outstanding Structured Repurchase Agreements

The repurchase agreements as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
March 31, 2014 Carrying Amount		December 31, 2013 Carrying Amount		Contractual Amount		Maturity Date	Contractual Rate
$	10,754	$	10,823	$	10,000	November 6, 2016	4.75%
	10,772		10,833		10,000	March 30, 2017	4.50%
	10,490		10,521		10,000	December 18, 2017	3.79%
	10,463		10,492		10,000	December 18, 2017	3.72%
	10,744		10,780		10,000	March 22, 2019	3.56%
$	53,223	$	53,449	$	50,000

Summary of Subordinated Debentures

(Dollars in thousands)
Date of Offering	Original Face		Carrying Amount March 31, 2014		Carrying Amount December 31, 2013		Interest Rate as of March 31, 2014	Maturity Date
July 31, 2001	$	5,000	$	3,863	$	3,851	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
July 31, 2001		4,000		2,651		2,636	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
June 26, 2003		10,000		5,944		5,921	3.34% (3 Month LIBOR+310 bps)	June 26, 2033
September 25, 2003		10,000		6,405		6,368	3.09% (3 Month LIBOR+285 bps)	September 25, 2033
December 30, 2003		10,000		5,728		5,704	3.09% (3 Month LIBOR+285 bps)	December 30, 2033
June 28, 2005		3,000		1,557		1,545	1.91% (3 Month LIBOR+168 bps)	June 28, 2035
December 22, 2005		10,000		4,519		4,491	1.63% (3 Month LIBOR+140 bps)	March 15, 2036
December 28, 2005		13,000		6,510		6,458	1.77% (3 Month LIBOR+154 bps)	March 15, 2036
June 23, 2006		20,000		11,276		11,206	1.79% (3 Month LIBOR+155 bps)	July 7, 2036
May 16, 2007		56,000		28,261		28,050	1.88% (3 Month LIBOR+165 bps)	June 15, 2037
June 15, 2007		10,000		5,350		5,327	1.67% (3 Month LIBOR+143 bps)	September 6, 2037
	$	151,000	$	82,064	$	81,557

Schedule of Maturities of Long-Term Borrowings

At March 31, 2014, the maturities of long-term borrowings were as follows:

(Dollars in thousands)	Fixed Rate		Floating Rate		Total
Due in 2014 through 2015	$	—	$	—	$	—
Due in 2016		10,754		—		10,754
Due in 2017		31,725		—		31,725
Due in 2018		—		—		—
Thereafter		14,294		82,064		96,358
	$	56,773	$	82,064	$	138,837

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities
Net income	$ 11,414	$ 5,765
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of purchased credit impaired loans	(33,162)	(44,985)
Depreciation and amortization	4,814	5,280
Provision (reversal) for loan losses	(24)	5,402
Deferred income tax	5,209	3,753
Net amortization of investment securities premium/discount	2,190	3,296
Net realized gains on sales of investment securities	(174)
Stock-based compensation expense	728	1,577
Gain on sales of OREO	(721)	(1,187)
OREO valuation expenses	3,573	6,590
Other	(1,037)	(644)
Loss on extinguishment of debt		308
Mortgage loans originated for sale	(22,820)	(40,848)
Proceeds from sales of mortgage loans originated for sale	26,758	40,777
Fees on mortgage loans originated and sold	(759)	(1,241)
FDIC indemnification asset expense	2,165	2,169
Gain on sale/disposal of premises and equipment	(17)
Proceeds from FDIC loss share agreements	4,898	5,566
Change in accrued interest receivable and other assets	671	2,762
Change in accrued interest payable and other liabilities	2,170	2,886
Net cash provided by (used in) operating activities	5,876	(2,774)
Cash flows from investing activities
Purchases of investment securities available-for-sale	(335)	(196,984)
Sales of investment securities available-for-sale	800
Repayments of principal and maturities of investment securities available-for-sale	27,674	69,547
Repayments of principal and maturities of investment securities held-to-maturity	15,682
Net sales of FHLB and FRB stock	6,180	3,161
Net decrease in loans	25,647	112,013
Purchases of premises and equipment	(2,093)	(2,452)
Proceeds from sales of premises and equipment	3
Proceeds from sales of OREO	15,979	15,768
Net cash provided by investing activities	89,537	1,053
Cash flows from financing activities
Net increase (decrease) in demand, money market and savings accounts	72,205	(22,562)
Net decrease in time deposits	(65,075)	(151,606)
Net increase (decrease) in federal funds purchased and securities sold under agreement to repurchase	5,602	(11,528)
Net decrease in short term FHLB advances	(75,000)
Net decrease of long term FHLB advances	(46)	(45)
Prepayments of long term borrowings		(34,500)
Purchase of treasury stock	(22,660)	(2,455)
Net cash used in financing activities	(84,974)	(222,696)
Net increase (decrease) in cash and cash equivalents	10,439	(224,417)
Cash and cash equivalents at beginning of period	164,441	734,874
Cash and cash equivalents at end of period	174,880	510,457
Supplemental disclosures of cash:
Interest paid	5,212	10,887
Cash collections of contractual interest on purchased credit impaired loans	22,620	33,837
Income taxes paid	320	800
Supplemental disclosures of noncash transactions:
OREO acquired through loan transfers and acquisitions	$ 9,706	$ 18,691

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Shareholders' Equity and Minimum Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Minimum Ratios Along with the Actual Ratios for the Company and the Bank

These minimum ratios along with the actual ratios for the Company and the Bank are presented in the following tables.

(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
March 31, 2014	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $252,747	³ 4.0%	$	944,237	14.9%
Capital Bank, N.A.	³ $315,423	³ 5.0%	³ $252,338	³ 4.0%		864,354	13.7%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $191,951	³ 4.0%	$	944,237	19.7%
Capital Bank, N.A.	³ $287,549	³6.0%	³ $191,699	³ 4.0%		864,354	18.0%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $383,902	³ 8.0%	$	1,003,800	20.9%
Capital Bank, N.A.	³ $479,248	³ 10.0%	³ $383,398	³ 8.0%		923,760	19.3%
(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
December 31, 2013	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $254,126	³ 4.0%	$	949,619	14.9%
Capital Bank, N.A.	³ $317,562	³ 5.0%	³ $254,050	³ 4.0%		849,520	13.4%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $192,428	³ 4.0%	$	949,619	19.7%
Capital Bank, N.A.	³ $288,410	³ 6.0%	³ $192,273	³ 4.0%		849,520	17.7%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $384,856	³ 8.0%	$	1,010,422	21.0%
Capital Bank, N.A.	³ $480,683	³ 10.0%	³ $384,546	³ 8.0%		910,162	18.9%

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Derivative Instruments - Additional Information (Detail) (Non-Interest Income [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Non-Interest Income [Member]
Non-interest income	$ 1.1	$ 0.2

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 658,971	$ 688,717
Unrealized Gains	2,881	3,104
Unrealized Losses	4,064	6,380
Estimated Fair Value	657,788	685,441
Amortized Cost	449,131	465,098
Unrealized Gains	1,879	355
Unrealized Losses	1,271	5,760
Estimated Fair Value	449,739	459,693
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,777	14,972
Unrealized Losses	322	401
Estimated Fair Value	14,455	14,571
States and Political Subdivisions-Tax Exempt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,233	14,201
Unrealized Gains	182	27
Unrealized Losses		129
Estimated Fair Value	14,415	14,099
States and Political Subdivisions-Taxable [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	543	545
Unrealized Losses	2	12
Estimated Fair Value	541	533
Mortgage-Backed Securities-Residential Issued by Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	526,533	549,869
Unrealized Gains	2,734	2,337
Unrealized Losses	3,376	5,580
Estimated Fair Value	525,891	546,626
Amortized Cost	419,578	435,380
Unrealized Gains	1,697	328
Unrealized Losses	947	5,218
Estimated Fair Value	420,328	430,490
Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	127,912	133,647
Unrealized Gains		363
Unrealized Losses	678	785
Estimated Fair Value	127,234	133,225
Marketable Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	946	946
Unrealized Losses	10	15
Estimated Fair Value	936	931
Industrial Revenue Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,580	3,750
Unrealized Gains	147	109
Estimated Fair Value	3,727	3,859
Collateralized Debt Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		505
Unrealized Gains		295
Estimated Fair Value		$ 800

XML

Allowance for Loan Losses - Roll Forward of the Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	$ 56,851	$ 57,262
Provision / (Reversals)	(24)	5,402
Net (Charge-offs)/Recoveries	(1,221)	(5,493)
Balance, end of period	55,606	57,171
Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	14,730	18,539
Provision / (Reversals)	141	(927)
Net (Charge-offs)/Recoveries	(188)	468
Balance, end of period	14,683	18,080
Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	12,763	11,545
Provision / (Reversals)	(998)	7,407
Net (Charge-offs)/Recoveries	(36)	(4,323)
Balance, end of period	11,729	14,629
Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	28,275	26,492
Provision / (Reversals)	751	(1,689)
Net (Charge-offs)/Recoveries	(705)	(1,218)
Balance, end of period	28,321	23,585
Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,083	686
Provision / (Reversals)	82	611
Net (Charge-offs)/Recoveries	(292)	(420)
Balance, end of period	873	877
Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	4,635	3,764
Provision / (Reversals)	(819)	(279)
Net (Charge-offs)/Recoveries	13	(36)
Balance, end of period	3,829	3,449
Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	8,217	12,711
Provision / (Reversals)	875	(273)
Net (Charge-offs)/Recoveries	(200)	442
Balance, end of period	8,892	12,880
Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	320	348
Provision / (Reversals)	83	(197)
Net (Charge-offs)/Recoveries		41
Balance, end of period	403	192
1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	1,558	1,716
Provision / (Reversals)	2	(178)
Net (Charge-offs)/Recoveries	(1)	21
Balance, end of period	1,559	1,559
Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	4,450	4,055
Provision / (Reversals)	(807)	15
Net (Charge-offs)/Recoveries	(113)	44
Balance, end of period	3,530	4,114
Commercial and Industrial Loans [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	8,310	7,490
Provision / (Reversals)	(189)	7,392
Net (Charge-offs)/Recoveries	77	(4,367)
Balance, end of period	8,198	10,515
Lease Financing [Member] | Total Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	3
Provision / (Reversals)	(2)
Net (Charge-offs)/Recoveries
Balance, end of period	1
1-4 Family Residential [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	21,724	15,740
Provision / (Reversals)	(1,323)	1,032
Net (Charge-offs)/Recoveries	(18)	28
Balance, end of period	20,383	16,800
Home Equity Loans [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	3,869	8,670
Provision / (Reversals)	1,054	(3,372)
Net (Charge-offs)/Recoveries	(48)	(683)
Balance, end of period	4,875	4,615
Other Consumer Loans [Member] | Total Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	2,682	2,082
Provision / (Reversals)	1,020	651
Net (Charge-offs)/Recoveries	(639)	(563)
Balance, end of period	$ 3,063	$ 2,170

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Stock-Based Compensation - Summary of Options Outstanding (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Remaining Contractual Life	6 years 4 months 24 days
Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Options, Number	244	2,864
Exercisable Options, Number		2,864
Remaining Contractual Life	9 years 1 month 21 days	7 years 2 months 5 days
Outstanding Options, Weighted Average Exercise Price Per Share	$ 18.00	$ 20.00
Exercisable Options, Weighted Average Exercise Price Per Share		$ 20.00
Exercise Price	$ 18	$ 20
Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Options, Number	2,864	23
Exercisable Options, Number	2,864	23
Remaining Contractual Life	6 years 2 months 5 days	3 years 4 months 6 days
Outstanding Options, Weighted Average Exercise Price Per Share	$ 20.00	$ 173.92
Exercisable Options, Weighted Average Exercise Price Per Share	$ 20.00	$ 178.58
Exercise Price	$ 20
Exercise Prices, Lower Range Limit		$ 28.44
Exercise Prices, Upper Range Limit		$ 2,026
Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Options, Number	14	2,887
Exercisable Options, Number	14	2,887
Remaining Contractual Life	3 years 6 months 22 days	7 years 1 month 24 days
Outstanding Options, Weighted Average Exercise Price Per Share	$ 140.70	$ 21.25
Exercisable Options, Weighted Average Exercise Price Per Share	$ 140.70	$ 21.24
Exercise Prices, Lower Range Limit	$ 28.44	$ 20.00
Exercise Prices, Upper Range Limit	$ 2,026	$ 2,026
Range Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Options, Number	3,122
Exercisable Options, Number	2,878
Remaining Contractual Life	6 years 4 months 24 days
Outstanding Options, Weighted Average Exercise Price Per Share	$ 20.40
Exercisable Options, Weighted Average Exercise Price Per Share	$ 20.60
Exercise Prices, Lower Range Limit	$ 18.00
Exercise Prices, Upper Range Limit	$ 2,026

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 122,145	$ 118,937
Interest-bearing deposits with banks	52,735	45,504
Total cash and cash equivalents	174,880	164,441
Trading securities	6,562	6,348
Investment securities available-for-sale at fair value (amortized cost $658,971 and $688,717, respectively)	657,788	685,441
Investment securities held-to-maturity at amortized cost (fair value $449,739 and $459,693, respectively)	449,131	465,098
Loans held for sale	4,833	8,012
Loans, net of deferred loan costs and fees	4,541,652	4,544,017
Less: Allowance for loan losses	55,606	56,851
Loans, net	4,486,046	4,487,166
Other real estate owned	120,270	129,396
FDIC indemnification asset	28,744	33,610
Receivable from FDIC	5,832	7,624
Premises and equipment, net	178,629	179,855
Goodwill	134,522	131,987
Intangible assets, net	22,111	23,365
Deferred income tax asset, net	158,074	166,762
Accrued interest receivable and other assets	121,202	128,456
Total Assets	6,548,624	6,617,561
Deposits:
Noninterest-bearing demand	1,000,914	923,993
Negotiable order of withdrawal accounts	1,326,555	1,321,903
Money market	945,354	961,526
Savings	536,948	530,144
Time deposits	1,382,422	1,447,497
Total deposits	5,192,193	5,185,063
Federal Home Loan Bank advances	21,231	96,278
Short-term borrowings	30,453	24,850
Long-term borrowings	138,837	138,561
Accrued interest payable and other liabilities	62,154	60,021
Total liabilities	5,444,868	5,504,773
Shareholders' equity
Preferred stock $0.01 par value: 50,000 shares authorized, 0 shares issued
Additional paid in capital	1,082,963	1,082,235
Retained earnings	118,899	107,485
Accumulated other comprehensive loss	(6,042)	(7,528)
Treasury stock, at cost, 4,730 and 3,761 shares, respectively	(92,622)	(69,962)
Total shareholders' equity	1,103,756	1,112,788
Total Liabilities and Shareholders' Equity	6,548,624	6,617,561
Common Class A [Member]
Shareholders' equity
Common stock value	364	362
Total shareholders' equity	364	362
Common Class B [Member]
Shareholders' equity
Common stock value	194	196
Total shareholders' equity	$ 194	$ 196

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Loans - Major Classifications of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 4,546,485	$ 4,552,029
Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,195,097	1,215,266
Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,870,443	1,864,560
Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,368,130	1,361,214
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	112,815	110,989
Non Owner Occupied [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	790,698	775,733
Other Commercial Construction and Land [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	256,190	300,494
Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	68,701	67,688
1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	79,508	71,351
Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,061,571	1,058,148
Commercial and Industrial Loans [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	806,359	803,736
Lease Financing [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,513	2,676
1-4 Family Residential [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	801,573	804,322
Home Equity Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	382,946	386,366
Other Consumer Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 183,611	$ 170,526

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Consolidated Statements of Changes in Shareholders' Equity (USD $) In Thousands	Total	Common Class A [Member]	Common Class B [Member]	Additional Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2012	$ 1,155,343	$ 330	$ 228	$ 1,076,797	$ 68,641	$ 9,347
Beginning balance, shares at Dec. 31, 2012		33,025	22,821
Net income	5,765				5,765
Other comprehensive income, net of tax	639					639
Stock based compensation	1,577			1,577
Fractional shares, value	(2)			(2)
Fractional shares, shares
Purchase of treasury stock, value	(2,455)						(2,455)
Purchase of treasury stock, shares		(143)
Conversion of shares, shares		23	(23)
Ending balance at Mar. 31, 2013	1,160,867	330	228	1,078,372	74,406	9,986	(2,455)
Ending balance, shares at Mar. 31, 2013		32,905	22,798
Beginning balance at Dec. 31, 2013	1,112,788	362	196	1,082,235	107,485	(7,528)	(69,962)
Beginning balance, shares at Dec. 31, 2013		33,051	19,047
Net income	11,414				11,414
Other comprehensive income, net of tax	1,486					1,486
Stock based compensation	728			728
Purchase of treasury stock, value	(22,660)						(22,660)
Purchase of treasury stock, shares		(769)	(200)
Conversion of shares, value		2	(2)
Conversion of shares, shares		193	(193)
Ending balance at Mar. 31, 2014	$ 1,103,756	$ 364	$ 194	$ 1,082,963	$ 118,899	$ (6,042)	$ (92,622)
Ending balance, shares at Mar. 31, 2014		32,475	18,654

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Other Real Estate Owned - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Banking And Thrift [Abstract]
Ending balances for OREO covered by FDIC	$ 18.6	$ 33.0

XML

Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,562	$	4,337	$	2,225	$	—
Available-for-sale securities
Asset-backed securities		127,234		—		127,234		—
Mortgage-backed securities—residential		525,891		—		525,891		—
Industrial revenue bonds		3,727		—		—		3,727
Marketable equity securities		936		—		936		—
Available-for-sale securities		657,788		—		654,061		3,727
Gross asset value of derivatives		7		—		7		—
Liabilities
Gross liability value of derivatives	$	574	$	—	$	574	$	—

Assets and liabilities measured at fair value on a recurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,348	$	4,477	$	1,871	(1)	$	—
Available-for-sale securities
Asset-backed securities		133,225		—		133,225			—
Mortgage-backed securities—residential		546,626		—		546,626			—
Industrial revenue bonds		3,859		—		—			3,859
Marketable equity securities		931		—		931	(1)		—
Collateralized debt obligations		800		—		800			—
Available-for-sale securities		685,441		—		681,582			3,859
Gross asset value of derivatives		15		—		15			—
Liabilities
Gross liability value of derivatives	$	1,330	$	—	$	1,330		$	—

(1) Transferred from Level 1 to Level 2 due to limited observable market data.

Fair Value Measurements on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2014.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Industrial Revenue Bonds
Beginning balance, January 1, 2014	$	3,859
Principal reduction		(170	)
Included in other comprehensive income		38
Ending balance, March 31, 2014	$	3,727

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2013.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Corporate Bonds		Industrial Revenue Bonds		Collateralized Debt Obligations
Beginning balance, January 1, 2013	$	26	$	3,800	$	297
Included in other comprehensive income		—		57		10
Ending balance, March 31, 2013	$	26	$	3,857	$	307

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	100,821
Other repossesed assets		—		85		—
Impaired loans		—		—		1,533

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	118,579
Other repossesed assets		—		108		—
Impaired loans		—		—		1,332

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amount and estimated fair values of financial instruments were as follows:

(Dollars in thousands)	Fair Value Measurement
March 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	174,880	$	174,880	$	174,880	$	—	$	—
Trading securities		6,562		6,562		4,337		2,225		—
Investment securities available-for-sale		657,788		657,788		—		654,061		3,727
Investment securities held-to-maturity		449,131		449,739		—		449,739		—
Loans, net		4,490,879		4,672,988		—		4,833		4,668,155
Receivable from FDIC		5,832		5,832		—		5,832		—
FDIC indemnification asset		28,744		28,744		—		—		28,744
Other (1)		38,195		38,195		—		—		38,195
Gross asset value of derivatives		7		7		—		7		—
Total financial assets	$	5,852,018	$	6,034,735	$	179,217	$	1,116,697	$	4,738,821
Financial Liabilities
Noncontractual deposits	$	3,809,771	$	3,809,771	$	—	$	—	$	3,809,771
Contractual deposits		1,382,422		1,382,909		—		—		1,382,909
Federal Home Loan Bank advances		21,231		21,161		—		21,161		—
Short-term borrowings		30,453		30,453		—		30,453		—
Long-term borrowings		53,223		55,358		—		—		55,358
Subordinated debentures		85,614		98,695		—		—		98,695
Gross liability value of derivatives		574		574		—		574		—
Total financial liabilities	$	5,383,288	$	5,398,921	$	—	$	52,188	$	5,346,733

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

(Dollars in thousands)	Fair Value Measurement
December 31, 2013	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	164,441	$	164,441	$	164,441	$	—	$	—
Trading securities		6,348		6,348		4,477		1,871		—
Investment securities available-for-sale		685,441		685,441		—		681,582		3,859
Investment securities held-to-maturity		465,098		459,693		—		459,693		—
Loans, net		4,495,178		4,681,554		—		8,012		4,673,542
Receivable from FDIC		7,624		7,624		—		7,624		—
FDIC indemnification asset		33,610		33,610		—		—		33,610
Other (1)		44,088		44,088		—		—		44,088
Gross asset value of derivatives		15		15		—		15		—
Total financial assets	$	5,901,843	$	6,082,814	$	168,918	$	1,158,797	$	4,755,099
Financial Liabilities
Noncontractual deposits	$	3,737,566	$	3,737,566	$	—	$	—	$	3,737,566
Contractual deposits		1,447,497		1,448,032		—		—		1,448,032
Federal Home Loan Bank advances		96,278		96,241		—		96,241		—
Short-term borrowings		24,850		24,850		—		24,850		—
Long-term borrowings		53,449		55,861		—		—		55,861
Subordinated debentures		85,112		100,795		—		—		100,795
Gross liability value of derivatives		1,330		1,330		—		1,330		—
Total financial liabilities	$	5,446,082	$	5,464,675	$	—	$	122,421	$	5,342,254

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

Fair Value on Recurring Basis [Member]

Quantitative Information About Fair Value Measurements

Quantitative Information about Recurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,727		Discounted cash flow	Discount rate	3.7%-3.8%
					Illiquidity factor	0.5%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,859		Discounted cash flow	Discount rate	3.7%-3.9%
					Illiquidity factor	0.5%

Fair Value on Nonrecurring Basis [Member]

Quantitative Information About Fair Value Measurements

Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	100,821	Fair value of property	Appraised value less cost to sell	6%-10%
Impaired loans		1,533	Fair value of collateral	Appraised value less cost to sell	6%-8%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	118,579	Fair value of property	Appraised value less cost to sell	7%-10%
Impaired loans		1,332	Fair value of collateral	Appraised value less cost to sell	8%

XML

Long Term Borrowings - Summary of Subordinated Debentures (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Original Face	$ 151,000
Carrying Amount	82,064	81,557
Subordinated Debt 2 [Member]
Debt Instrument [Line Items]
Date of Offering	July 31, 2001
Original Face	5,000
Carrying Amount	3,863	3,851
Debt Instrument, variable interest rate	3.82% (3 Month LIBOR+358 bps)
Maturity Date	July 31, 2031
Subordinated debt interest rate	3.82%
Subordinated debt variable interest rate, basis points	3.58%
Subordinated Debt 3 [Member]
Debt Instrument [Line Items]
Date of Offering	July 31, 2001
Original Face	4,000
Carrying Amount	2,651	2,636
Debt Instrument, variable interest rate	3.82% (3 Month LIBOR+358 bps)
Maturity Date	July 31, 2031
Subordinated debt interest rate	3.82%
Subordinated debt variable interest rate, basis points	3.58%
Subordinated Debt 4 [Member]
Debt Instrument [Line Items]
Date of Offering	June 26, 2003
Original Face	10,000
Carrying Amount	5,944	5,921
Debt Instrument, variable interest rate	3.34% (3 Month LIBOR+310 bps)
Maturity Date	June 26, 2033
Subordinated debt interest rate	3.34%
Subordinated debt variable interest rate, basis points	3.10%
Subordinated Debt 5 [Member]
Debt Instrument [Line Items]
Date of Offering	September 25, 2003
Original Face	10,000
Carrying Amount	6,405	6,368
Debt Instrument, variable interest rate	3.09% (3 Month LIBOR+285 bps)
Maturity Date	September 25, 2033
Subordinated debt interest rate	3.09%
Subordinated debt variable interest rate, basis points	2.85%
Subordinated Debt 7 [Member]
Debt Instrument [Line Items]
Date of Offering	December 30, 2003
Original Face	10,000
Carrying Amount	5,728	5,704
Debt Instrument, variable interest rate	3.09% (3 Month LIBOR+285 bps)
Maturity Date	December 30, 2033
Subordinated debt interest rate	3.09%
Subordinated debt variable interest rate, basis points	2.85%
Subordinated Debt 8 [Member]
Debt Instrument [Line Items]
Date of Offering	June 28, 2005
Original Face	3,000
Carrying Amount	1,557	1,545
Debt Instrument, variable interest rate	1.91% (3 Month LIBOR+168 bps)
Maturity Date	June 28, 2035
Subordinated debt interest rate	1.91%
Subordinated debt variable interest rate, basis points	1.68%
Subordinated Debt 9 [Member]
Debt Instrument [Line Items]
Date of Offering	December 22, 2005
Original Face	10,000
Carrying Amount	4,519	4,491
Debt Instrument, variable interest rate	1.63% (3 Month LIBOR+140 bps)
Maturity Date	March 15, 2036
Subordinated debt interest rate	1.63%
Subordinated debt variable interest rate, basis points	1.40%
Subordinated Debt 10 [Member]
Debt Instrument [Line Items]
Date of Offering	December 28, 2005
Original Face	13,000
Carrying Amount	6,510	6,458
Debt Instrument, variable interest rate	1.77% (3 Month LIBOR+154 bps)
Maturity Date	March 15, 2036
Subordinated debt interest rate	1.77%
Subordinated debt variable interest rate, basis points	1.54%
Subordinated Debt 11 [Member]
Debt Instrument [Line Items]
Date of Offering	June 23, 2006
Original Face	20,000
Carrying Amount	11,276	11,206
Debt Instrument, variable interest rate	1.79% (3 Month LIBOR+155 bps)
Maturity Date	July 7, 2036
Subordinated debt interest rate	1.79%
Subordinated debt variable interest rate, basis points	1.55%
Subordinated Debt 12 [Member]
Debt Instrument [Line Items]
Date of Offering	May 16, 2007
Original Face	56,000
Carrying Amount	28,261	28,050
Debt Instrument, variable interest rate	1.88% (3 Month LIBOR+165 bps)
Maturity Date	June 15, 2037
Subordinated debt interest rate	1.88%
Subordinated debt variable interest rate, basis points	1.65%
Subordinated Debt 13 [Member]
Debt Instrument [Line Items]
Date of Offering	June 15, 2007
Original Face	10,000
Carrying Amount	$ 5,350	$ 5,327
Debt Instrument, variable interest rate	1.67% (3 Month LIBOR+143 bps)
Maturity Date	September 6, 2037
Subordinated debt interest rate	1.67%
Subordinated debt variable interest rate, basis points	1.43%

XML

Derivative Instruments

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments

14. Derivative Instruments

The Company has derivative financial instruments acquired in its purchase of SCMF, primarily in the form of interest rate swaps. The forward loan sales contracts are derived from loans held for sale or in the Company’s pipeline. These transactions involve both credit and market risk.

The Company’s derivative instrument contracts which are recorded in other assets and other liabilities on the Company’s balance sheet consist of the following:

(Dollars in thousands)	March 31, 2014				December 31, 2013
	Fair Value		Notional Amount		Fair Value		Notional Amount
Assets
Interest rate cap contracts (matured in 2014)	$	—	$	—	$	—	$	12,500
Forward loan sales contracts (maturing in 2014)		7		4,925		15		4,215
	$	7	$	4,925	$	15	$	16,715
Liabilities
Interest rate swaps associated with certificates of deposits (maturing in 2040)	$	548	$	25,000	$	1,320	$	25,000
Forward loan sales contracts (maturing in 2014)		26		8,367		10		3,545
	$	574	$	33,367	$	1,330	$	28,545

The Company does not enter into derivative financial instruments for speculative purposes. None of the derivatives held are designated as hedging instruments or otherwise qualify for hedge accounting treatment and all changes in fair value are recognized in non-interest income or non-interest expense during the period of change. For the three months ended March 31, 2014 and 2013, the company recorded $1.1 million and $0.2 million, in non-interest income, respectively, as a result of changes in fair value of derivatives.

The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements.

The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures and agreements that specify collateral levels to be maintained by the Company and the counterparties. These collateral levels are based on the credit rating of the counterparties.

The primary objective for each of these contracts is to minimize risk. Interest rate risk being the primary risk for the interest rate swaps and forward loan sales contracts.

XML

Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Derivative Instrument Contracts Fair Value and Notional Amount

The Company’s derivative instrument contracts which are recorded in other assets and other liabilities on the Company’s balance sheet consist of the following:

(Dollars in thousands)	March 31, 2014				December 31, 2013
	Fair Value		Notional Amount		Fair Value		Notional Amount
Assets
Interest rate cap contracts (matured in 2014)	$	—	$	—	$	—	$	12,500
Forward loan sales contracts (maturing in 2014)		7		4,925		15		4,215
	$	7	$	4,925	$	15	$	16,715
Liabilities
Interest rate swaps associated with certificates of deposits (maturing in 2040)	$	548	$	25,000	$	1,320	$	25,000
Forward loan sales contracts (maturing in 2014)		26		8,367		10		3,545
	$	574	$	33,367	$	1,330	$	28,545

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Computation of Earnings Per Share

Earnings per share have been computed based on the following:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Weighted average number of shares outstanding:
Basic		50,518		54,623
Dilutive effect of options oustanding		970		—
Dilutive effect of restricted shares		444		870
Diluted	$	51,932	$	55,493

Weighted Average Anti-Dilutive Stock Options and Unvested Restricted Shares Excluded from the Computation of Diluted Earnings Per Share

Weighted average anti-dilutive stock options and unvested restricted shares excluded from the computation of diluted earnings per share are as follows:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Anti-dilutive stock options		15		2,871
Anti-dilutive restricted shares		—		—

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Shareholders' Equity and Minimum Regulatory Capital Requirements - Additional Information (Detail) (USD $)	0 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended
	Sep. 16, 2013	Sep. 05, 2013	Feb. 05, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Capital Bank, NA [Member]	Dec. 31, 2013 Capital Bank, NA [Member]	Aug. 31, 2010 Capital Bank, NA [Member] Minimum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital equal to risk - weighted assets				20.90%		20.90%	21.00%	19.30%	18.90%	12.00%
Tier 1 capital equal to risk - weighted assets				19.70%		19.70%	19.70%	18.00%	17.70%	11.00%
Minimum leverage ratio of (Tier 1 Capital ratio)				14.90%		14.90%	14.90%	13.70%	13.40%	10.00%
Prohibited period for payment of dividend								3 years
Approved dividend		$ 105,000,000
Period of retained net profits				2 years
Available for dividends				58,700,000		58,700,000
Shares authorized to be repurchased	100,000,000		50,000,000
Common shares repurchased during the period, amount			50,000,000	22,660,000	2,455,000	42,600,000
Common shares repurchased during the period, shares			2,839,441	968,865		1,890,741
Average price of common shares			$ 17.60	$ 23.39		$ 22.55
Remaining availability for future share repurchases under the current authorization				$ 57,400,000		$ 57,400,000

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Other comprehensive income tax expense	$ 944	$ 433
Accumulated Other Comprehensive Income (Loss) [Member]
Other comprehensive income tax expense	$ 944	$ 433

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Amortized cost of investment securities available-for-sale	$ 658,971	$ 688,717
Fair value of investment securities held-to-maturity	$ 449,739	$ 459,693
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000	50,000
Preferred stock, issued shares	0	0
Treasury stock, shares	4,730	3,761
Common Class A [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	36,405	36,212
Common stock, shares outstanding	32,475	33,051
Common Class B [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	19,454	19,647
Common stock, shares outstanding	18,654	19,047

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Long Term Borrowings

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Long Term Borrowings

9. Long Term Borrowings

Structured repurchase agreements

The repurchase agreements as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
March 31, 2014 Carrying Amount		December 31, 2013 Carrying Amount		Contractual Amount		Maturity Date	Contractual Rate
$	10,754	$	10,823	$	10,000	November 6, 2016	4.75%
	10,772		10,833		10,000	March 30, 2017	4.50%
	10,490		10,521		10,000	December 18, 2017	3.79%
	10,463		10,492		10,000	December 18, 2017	3.72%
	10,744		10,780		10,000	March 22, 2019	3.56%
$	53,223	$	53,449	$	50,000

These repurchase agreements have a weighted-average rate of 4.06% at March 31, 2014 and December 31, 2013 and are collateralized by $67.0 million and $62.1 million, respectively, of mortgage-backed securities.

Subordinated Debentures

Through its acquisitions of CBKN, GRNB, SCMF and TIBB, the Company assumed thirteen separate pooled offerings of trust preferred securities. The Company is not considered the primary beneficiary of the trusts (variable interest entities), therefore the trusts are not consolidated in the Company’s consolidated financial statements, but rather the subordinated debentures are presented as liabilities. The Trusts consist of wholly-owned statutory trust subsidiaries for the purpose of issuing the trust preferred securities. The Trusts used the proceeds from the issuance of trust preferred securities to acquire junior subordinated deferrable interest debentures of the Company. The trust preferred securities essentially mirror the debt securities, carrying a cumulative preferred dividend equal to the interest rate on the debt securities. The debt securities and the trust preferred securities each have 30-year lives. The trust preferred securities and the debt securities are callable by the companies or the Trust, at their respective option after a period of time as outlined below, and at varying premiums and sooner in specific events, subject to prior approval by the Federal Reserve Board (“FRB”), if then required. Deferral of interest payments on the trust preferred securities is allowed for up to 60 months without being considered an event of default. On March 18, 2013, the Company called and redeemed $34.5 million of trust preferred securities issued by SCMF, which had a fixed interest rate of 7.95%. The prepayment resulted in a $0.3 million loss on extinguishment of debt.

(Dollars in thousands)
Date of Offering	Original Face		Carrying Amount March 31, 2014		Carrying Amount December 31, 2013		Interest Rate as of March 31, 2014	Maturity Date
July 31, 2001	$	5,000	$	3,863	$	3,851	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
July 31, 2001		4,000		2,651		2,636	3.82% (3 Month LIBOR+358 bps)	July 31, 2031
June 26, 2003		10,000		5,944		5,921	3.34% (3 Month LIBOR+310 bps)	June 26, 2033
September 25, 2003		10,000		6,405		6,368	3.09% (3 Month LIBOR+285 bps)	September 25, 2033
December 30, 2003		10,000		5,728		5,704	3.09% (3 Month LIBOR+285 bps)	December 30, 2033
June 28, 2005		3,000		1,557		1,545	1.91% (3 Month LIBOR+168 bps)	June 28, 2035
December 22, 2005		10,000		4,519		4,491	1.63% (3 Month LIBOR+140 bps)	March 15, 2036
December 28, 2005		13,000		6,510		6,458	1.77% (3 Month LIBOR+154 bps)	March 15, 2036
June 23, 2006		20,000		11,276		11,206	1.79% (3 Month LIBOR+155 bps)	July 7, 2036
May 16, 2007		56,000		28,261		28,050	1.88% (3 Month LIBOR+165 bps)	June 15, 2037
June 15, 2007		10,000		5,350		5,327	1.67% (3 Month LIBOR+143 bps)	September 6, 2037
	$	151,000	$	82,064	$	81,557

Other Subordinated Debentures

Through the acquisition of CBKN, the Company assumed $3.4 million in aggregate principal amount of subordinated promissory notes with a fixed interest rate of 10.0% due March 18, 2020. The notes had a carrying value of $3.6 million as of March 31, 2014 and December 31, 2013. The Company may prepay the notes at any time after March 18, 2015 subject to regulatory approval and compliance with applicable law. The Company’s obligation to repay the notes is subordinate to all indebtedness owed by the Company to its current and future secured creditors and general creditors and certain other financial obligations of the Company.

At March 31, 2014, the maturities of long-term borrowings were as follows:

(Dollars in thousands)	Fixed Rate		Floating Rate		Total
Due in 2014 through 2015	$	—	$	—	$	—
Due in 2016		10,754		—		10,754
Due in 2017		31,725		—		31,725
Due in 2018		—		—		—
Thereafter		14,294		82,064		96,358
	$	56,773	$	82,064	$	138,837

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014 Common Class A [Member]	Apr. 30, 2014 Common Class B [Member]
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	Capital Bank Financial Corp.
Entity Central Index Key	0001479750
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,975,601	18,369,977

XML

Shareholders' Equity and Minimum Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Shareholders' Equity and Minimum Regulatory Capital Requirements

10. Shareholders’ Equity and Minimum Regulatory Capital Requirements

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements results in certain discretionary and required actions by regulators that could have an effect on the Company’s operations. The regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

To be considered well capitalized or adequately capitalized as defined under the regulatory framework for prompt corrective action, the Bank must maintain minimum Tier 1 leverage, Tier 1 risk-based and Total Risk-based ratios. At March 31, 2014 and December 31, 2013 the Bank maintained capital ratios exceeding the requirement to be considered well capitalized. These minimum ratios along with the actual ratios for the Company and the Bank are presented in the following tables.

(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
March 31, 2014	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $252,747	³ 4.0%	$	944,237	14.9%
Capital Bank, N.A.	³ $315,423	³ 5.0%	³ $252,338	³ 4.0%		864,354	13.7%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $191,951	³ 4.0%	$	944,237	19.7%
Capital Bank, N.A.	³ $287,549	³6.0%	³ $191,699	³ 4.0%		864,354	18.0%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $383,902	³ 8.0%	$	1,003,800	20.9%
Capital Bank, N.A.	³ $479,248	³ 10.0%	³ $383,398	³ 8.0%		923,760	19.3%
(Dollars in thousands)	Well Capitalized Requirement		Adequately Capitalized Requirement		Actual
December 31, 2013	Amount	Ratio	Amount	Ratio	Amount		Ratio
Tier 1 Capital
(to Average Assets)
Consolidated	N/A	N/A	³ $254,126	³ 4.0%	$	949,619	14.9%
Capital Bank, N.A.	³ $317,562	³ 5.0%	³ $254,050	³ 4.0%		849,520	13.4%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $192,428	³ 4.0%	$	949,619	19.7%
Capital Bank, N.A.	³ $288,410	³ 6.0%	³ $192,273	³ 4.0%		849,520	17.7%
Total Capital
(to Risk Weighted Assets)
Consolidated	N/A	N/A	³ $384,856	³ 8.0%	$	1,010,422	21.0%
Capital Bank, N.A.	³ $480,683	³ 10.0%	³ $384,546	³ 8.0%		910,162	18.9%

In August 2010, Capital Bank, NA entered into an Operating Agreement with the Office of the Comptroller of the Currency (the “OCC Operating Agreement”). At present, the OCC Operating Agreement requires Capital Bank, NA to maintain total capital equal to at least 12% of risk-weighted assets, Tier 1 capital equal to at least 11% of risk-weighted assets and a minimum leverage ratio of 10% (Tier 1 Capital ratio).

As of March 31, 2014 and December 31, 2013, the Company and the Bank met all capital requirements to which they were subject. Tier 1 Capital for the Company includes trust preferred securities to the extent allowable.

Currently, the OCC Operating Agreement prohibited Capital Bank, NA from paying a dividend to us for three years following our acquisition of the Failed Banks (which period elapsed in July 2013) and, once the three-year period has elapsed, imposes other restrictions on Capital Bank’s ability to pay dividends, including requiring prior approval from the OCC before any distribution is made. On September 5, 2013, the OCC approved a dividend of $105.0 million to the Company by its subsidiary Capital Bank N.A.

Dividends that may be paid by a national bank are limited to that bank’s retained net profits for the preceding two years plus retained net profits up to the date of any dividend declaration in the current calendar year. As of March 31, 2014, the bank had $58.7 million available for dividends.

Share Repurchases

On February 5, 2013, the Board of Directors authorized the repurchase of up to $50.0 million of the Company’s common stock. The Company has repurchased $50.0 million, or 2,839,441 common shares at an average price of $17.60 per share, completing the aforementioned stock repurchase authorization.

On September 16, 2013, the Board of Directors authorized the repurchase of up to an additional $100.0 million of the Company’s common stock. Stock repurchases may be made from time to time, on the open market or in privately negotiated transactions. The approved stock repurchase program does not obligate the Company to repurchase any particular amount of shares, and the program may be extended, modified, suspended, or discontinued at any time. During the three months ended March 31, 2014, the Company repurchased $22.7 million, or 968,865 common shares at an average price of $23.39 per share.

Under this plan, the Company has repurchased $42.6 million, or 1,890,741 common shares at an average price of $22.55 per share. The Company accounts for treasury stock using the cost method as a reduction of shareholders’ equity in the accompanying consolidated balance sheets and statement of changes in shareholders’ equity. As of March 31, 2014, the Company had $57.4 million of remaining availability for future share repurchases under the current authorization.

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Fair Value - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 120,270	$ 129,396	$ 151,613	$ 154,093
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value on Nonrecurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned
Other repossesed assets
Impaired loans
Significant Other Observable Inputs (Level 2) [Member] | Fair Value on Nonrecurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other repossesed assets	85	108
Significant Unobservable Inputs (Level 3) [Member] | Fair Value on Nonrecurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	100,821	118,579
Impaired loans	$ 1,533	$ 1,332

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest and dividend income
Loans, including fees	$ 63,219	$ 71,784
Investment securities:
Taxable interest income	4,547	3,279
Tax-exempt interest income	156	166
Dividends	15	15
Interest-bearing deposits in other banks	25	372
Other earning assets	581	490
Total interest and dividend income	68,543	76,106
Interest expense
Deposits	4,316	6,478
Long-term borrowings	1,704	2,500
Federal Home Loan Bank advances	61	1
Other borrowings	9	13
Total interest expense	6,090	8,992
Net Interest Income	62,453	67,114
Provision (reversal) for loan losses	(24)	5,402
Net interest income after provision for loan losses	62,477	61,712
Non-Interest Income
Service charges on deposit accounts	5,436	6,342
Debit card income	2,844	2,836
Fees on mortgage loans originated and sold	759	1,241
Investment advisory and trust fees	1,261	283
FDIC indemnification asset expense	(2,165)	(2,169)
Investment securities gains, net	174
Other-than-temporary impairment losses on investments:
Gross impairment loss
Less: Impairments recognized in other comprehensive income
Net impairment losses recognized in earnings
Other income	3,060	2,376
Total non-interest income	11,369	10,909
Non-Interest Expense
Salaries and employee benefits	23,498	20,784
Stock-based compensation expense	728	1,577
Net occupancy, equipment and software expense	10,467	10,730
OREO valuation expense	3,573	6,590
Gain on sales of OREO	(721)	(1,187)
Foreclosed asset related expense	1,459	1,419
Loan workout expense	1,177	2,064
Conversion and merger related expense		113
Professional fees	2,004	2,648
Loss on extinguishment of debt		308
Computer services	3,253	3,100
CVR expense	767	2,883
FDIC assessments	1,629	1,803
Telecommunication expense	1,608	1,754
Other expense	5,782	6,727
Total non-interest expense	55,224	61,313
Income before income taxes	18,622	11,308
Income tax expense	7,208	5,543
Net income	$ 11,414	$ 5,765
Basic earnings per share	$ 0.23	$ 0.11
Diluted earnings per share	$ 0.22	$ 0.10

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Loans

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Loans

4. Loans

Major classifications of loans, including loans held for sale, are as follows:

(Dollars in thousands)	March 31, 2014		December 31, 2013
Non-owner occupied commercial real estate	$	790,698	$	775,733
Other commercial construction and land		256,190		300,494
Multifamily commercial real estate		68,701		67,688
1-4 family residential construction and land		79,508		71,351
Total commercial real estate		1,195,097		1,215,266
Owner occupied commercial real estate		1,061,571		1,058,148
Commercial and industrial loans		806,359		803,736
Lease financing		2,513		2,676
Total commercial		1,870,443		1,864,560
1-4 family residential		801,573		804,322
Home equity loans		382,946		386,366
Other consumer loans		183,611		170,526
Total consumer		1,368,130		1,361,214
Other		112,815		110,989
Total loans	$	4,546,485	$	4,552,029

Total loans as of March 31, 2014 and December 31, 2013, include $4.8 million and $8.0 million of 1-4 family residential loans held for sale and $4.8 million and $3.8 million of deferred loan origination costs, respectively.

Other loans include $46.7 million, $41.3 million and $1.5 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively, as of March 31, 2014. Other loans include $49.7 million, $36.2 million and $2.2 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively, as of December 31, 2013.

Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. Covered loans are further broken out into (i) loans acquired with evidence of credit impairment (“Purchased Credit Impaired or PCI Loans”) and (ii) non-PCI loans. Loans originated by the Company and loans acquired through the purchase of CBKN, GRNB, SCMF and TIBB, are not subject to the loss sharing agreements and are classified as “non covered.” Additionally, certain consumer loans acquired through the acquisition of the First National Bank, Metro Bank and Turnberry Bank (collectively, the “Failed Banks”) from the FDIC, are specifically excluded from the loss sharing agreements.

The Company designates loans as PCI by evaluating both qualitative and quantitative factors.

At the time of acquisition, the Company accounted for the PCI loans by segregating each portfolio into loan pools with similar risk characteristics.

Over the lives of the acquired loans, the Company continues to estimate cash flows expected to be collected on each loan pool. The Company evaluates, at each balance sheet date, whether its estimates of the present value of the cash flows from the loan pools, determined using the effective interest rates, has decreased, such that the present value of such cash flows is less than the recorded investment of the pool, and if so, recognizes a provision for loan loss in its consolidated statement of income, unless interest rate driven. Additionally, if we have favorable changes in our estimates of cash flows expected to be collected for a loan pool such that the then-present value exceeds the recorded investment of that pool, we will first reverse any previously established allowance for loan losses for the pool.

If such estimate exceeds the amount of any previously established allowance, we will accrete future interest income over the remaining life of the pool at a rate which, when used to discount the expected cash flows, results in the then-present value of such cash flows equaling the recorded investment of the pool at the time of the revised estimate.

The table below presents a rollforward of accretable yield and income expected to be earned related to purchased credit-impaired loans:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	383,775		$	553,348
Accretion of income		(33,162	)		(44,985	)
Reclassification from nonaccretable difference		6,667			10,273
Other		(10,285	)		(27,399	)
Balance, end of period	$	346,995		$	491,237

The following table represents the periods we estimate the accretable yield will accrete into income based on the Company’s most recent estimates of cash flows for purchased credit-impaired loans:

(Dollars in thousands)
Periods ending December 31,
2014	$	84,561
2015		85,901
2016		56,292
2017		39,098
2018		26,416
Thereafter		54,727
Total	$	346,995

Nonaccretable difference represents contractually required payments in excess of the amount of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the PCI loans. Other represent reductions of accretable yield due to non-credit events such as interest rate reductions on variable rate loans and prepayment activity on loans.

The accretable yield is accreted into interest income over the estimated life of the PCI loans using the level yield method. The accretable yield will change due to changes in:

• The estimate of the remaining life of PCI loans which may change the amount of future interest income, and possibly principal, expected to be collected;

• The estimate of the amount of contractually required principal and interest payments over the estimated life that will not be collected (the nonaccretable difference); and

• Indices for PCI loans with variable rates of interest.

For PCI loans, the impact of loan modifications is included in the evaluation of expected cash flows for subsequent decreases or increases of cash flows. For variable rate PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the variable rates that were in effect at that time.

Because of the loss protection provided by the FDIC, the risks of covered loans and foreclosed real estate are significantly different from those assets not covered under the loss share agreement. Refer to Note 7 – Other Real Estate Owned, for the covered and non-covered balances of other real estate owned.

As a result of overall improvement of credit loss expectations in our most recent estimates of cash flows, substantially related to the Company’s legacy Southern Community and Green Bankshares portfolios, the Company recognized $0.8 million and $2.9 million in Contingent Value Right (“CVR”) expense for the three months ended March 31, 2014 and 2013, respectively.

Non-covered Loans

The following is a summary of the major categories of non-covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	408,625	$	334,823	$	743,448
Other commercial construction and land		186,304		54,828		241,132
Multifamily commercial real estate		27,441		32,439		59,880
1-4 family residential construction and land		15,612		63,896		79,508
Total commercial real estate		637,982		485,986		1,123,968
Owner occupied commercial real estate		275,738		720,246		995,984
Commercial and industrial loans		122,605		674,323		796,928
Lease financing		—		2,513		2,513
Total commercial		398,343		1,397,082		1,795,425
1-4 family residential		329,317		409,900		739,217
Home equity loans		97,031		236,144		333,175
Other consumer loans		9,615		173,935		183,550
Total consumer		435,963		819,979		1,255,942
Other		45,282		66,354		111,636
Total loans	$	1,517,570	$	2,769,401	$	4,286,971
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	432,437	$	287,562	$	719,999
Other commercial construction and land		213,543		67,789		281,332
Multifamily commercial real estate		29,392		29,187		58,579
1-4 family residential construction and land		14,372		56,979		71,351
Total commercial real estate		689,744		441,517		1,131,261
Owner occupied commercial real estate		299,593		691,253		990,846
Commercial and industrial loans		129,961		663,563		793,524
Lease financing		—		2,676		2,676
Total commercial		429,554		1,357,492		1,787,046
1-4 family residential		349,060		384,663		733,723
Home equity loans		100,995		234,056		335,051
Other consumer loans		12,433		157,991		170,424
Total consumer		462,488		776,710		1,239,198
Other		47,888		61,279		109,167
Total loans	$	1,629,674	$	2,636,998	$	4,266,672

Covered Loans

The following is a summary of the major categories of covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	47,250	$	—	$	47,250
Other commercial construction and land		15,058		—		15,058
Multifamily commercial real estate		8,821		—		8,821
Total commercial real estate		71,129		—		71,129
Owner occupied commercial real estate		65,587		—		65,587
Commercial and industrial loans		9,228		203		9,431
Total commercial		74,815		203		75,018
1-4 family residential		61,343		1,013		62,356
Home equity loans		14,835		34,936		49,771
Other consumer loans		61		—		61
Total consumer		76,239		35,949		112,188
Other		1,179		—		1,179
Total loans	$	223,362	$	36,152	$	259,514
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	55,734	$	—	$	55,734
Other commercial construction and land		19,162		—		19,162
Multifamily commercial real estate		9,109		—		9,109
Total commercial real estate		84,005		—		84,005
Owner occupied commercial real estate		67,302		—		67,302
Commercial and industrial loans		9,856		356		10,212
Total commercial		77,158		356		77,514
1-4 family residential		69,582		1,017		70,599
Home equity loans		15,201		36,114		51,315
Other consumer loans		102		—		102
Total consumer		84,885		37,131		122,016
Other		1,822		—		1,822
Total loans	$	247,870	$	37,487	$	285,357

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of March 31, 2014:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	89	$	89
Other commercial construction and land		—		9		—		—		—		391		400
Total commercial real estate		—		9		—		—		—		480		489
Owner occupied commercial real estate		—		2,290		—		—		—		1,999		4,289
Commercial and industrial loans		5		717		—		—		66		1,701		2,489
Total commercial		5		3,007		—		—		66		3,700		6,778
1-4 family residential		—		134		—		—		29		1,711		1,874
Home equity loans		292		237		—		—		1,183		2,392		4,104
Other consumer loans		—		1,956		—		—		—		546		2,502
Total consumer		292		2,327		—		—		1,212		4,649		8,480
Total loans	$	297	$	5,343	$	—	$	—	$	1,278	$	8,829	$	15,747
(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	465	$	1,577	$	5,835	$	42,910	$	—	$	—	$	50,787
Other commercial construction and land		5		1,221		8,444		46,968		—		—		56,638
Multifamily commercial real estate		2,235		—		248		1,862		—		—		4,345
1-4 family residential construction and land		—		—		—		2,305		—		—		2,305
Total commercial real estate		2,705		2,798		14,527		94,045		—		—		114,075
Owner occupied commercial real estate		1,443		1,058		5,729		28,862		—		—		37,092
Commercial and industrial loans		9		226		202		30,693		—		—		31,130
Total commercial		1,452		1,284		5,931		59,555		—		—		68,222
1-4 family residential		2,121		5,127		6,116		35,699		—		—		49,063
Home equity loans		2,906		2,144		1,662		5,892		—		—		12,604
Other consumer loans		—		247		28		249		—		—		524
Total consumer		5,027		7,518		7,806		41,840		—		—		62,191
Other		—		890		294		2,943		—		—		4,127
Total loans	$	9,184	$	12,490	$	28,558	$	198,383	$	—	$	—	$	248,615

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of December 31, 2013:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	90	$	90
Other commercial construction and land		—		—		—		—		—		563		563
Multifamily commercial real estate		—		305		—		—		—		—		305
1-4 family residential construction and land		—		—		—		—		—		1		1
Total commercial real estate		—		305		—		—		—		654		959
Owner occupied commercial real estate		—		20		—		—		—		3,394		3,414
Commercial and industrial loans		—		2		—		—		66		1,879		1,947
Total commercial		—		22		—		—		66		5,273		5,361
1-4 family residential		—		862		—		—		—		1,417		2,279
Home equity loans		146		1,046		—		—		1,270		2,324		4,786
Other consumer loans		—		1,800		—		—		—		806		2,606
Total consumer		146		3,708		—		—		1,270		4,547		9,671
Total loans	$	146	$	4,035	$	—	$	—	$	1,336	$	10,474	$	15,991

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	107	$	1,463	$	10,658	$	35,563	$	—	$	—	$	47,791
Other commercial construction and land		—		1,105		8,479		58,633		—		—		68,217
Multifamily commercial real estate		—		—		—		2,641		—		—		2,641
1-4 family residential construction and land		—		5		—		1,796		—		—		1,801
Total commercial real estate		107		2,573		19,137		98,633		—		—		120,450
Owner occupied commercial real estate		260		4,626		6,631		33,974		—		—		45,491
Commercial and industrial loans		—		249		1,597		29,819		—		—		31,665
Total commercial		260		4,875		8,228		63,793		—		—		77,156
1-4 family residential		227		6,696		10,824		37,646		—		—		55,393
Home equity loans		59		1,733		1,227		7,313		—		—		10,332
Other consumer loans		—		344		67		1,249		—		—		1,660
Total consumer		286		8,773		12,118		46,208		—		—		67,385
Other		—		433		954		4,745		—		—		6,132
Total loans	$	653	$	16,654	$	40,437	$	213,379	$	—	$	—	$	271,123

PCI loans are not classified as nonaccrual as they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for purchased credit-impaired loans and not to contractual interest payments.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed at origination and upon identification of a material change for all loans, on annual basis for commercial loans exceeding $0.5 million and at least quarterly for loans not rated Pass. The Company uses the following definitions for risk ratings:

• Pass —These loans range from superior quality with minimal credit risk to loans requiring heightened management attention but that are still an acceptable risk and continue to perform as contracted.

• Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard —Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at March 31, 2014:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	333,099	$	121	$	1,514	$	89	$	—	$	334,823
Other commercial construction and land		54,327		48		61		392		—		54,828
Multifamily commercial real estate		32,138		—		301		—		—		32,439
1-4 family residential construction and land		59,977		1,989		1,930		—		—		63,896
Total commercial real estate		479,541		2,158		3,806		481		—		485,986
Owner occupied commercial real estate		703,379		10,625		4,243		1,999		—		720,246
Commercial and industrial loans		661,795		5,335		5,629		1,767		—		674,526
Lease financing		2,513		—		—		—		—		2,513
Total commercial		1,367,687		15,960		9,872		3,766		—		1,397,285
1-4 family residential		408,766		28		381		1,739		—		410,913
Home equity loans		264,754		—		2,751		3,575		—		271,080
Other consumer loans		173,367		—		22		546		—		173,935
Total consumer		846,887		28		3,154		5,860		—		855,928
Other		66,091		—		263		—		—		66,354
Total loans	$	2,760,206	$	18,146	$	17,095	$	10,107	$	—	$	2,805,553

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at December 31, 2013:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	285,919	$	568	$	985	$	90	$	—	$	287,562
Other commercial construction and land		67,178		48		—		563		—		67,789
Multifamily commercial real estate		28,882		—		305		—		—		29,187
1-4 family residential construction and land		53,224		1,958		1,796		1		—		56,979
Total commercial real estate		435,203		2,574		3,086		654		—		441,517
Owner occupied commercial real estate		681,571		4,093		2,195		3,394		—		691,253
Commercial and industrial loans		651,585		1,183		9,206		1,945		—		663,919
Lease financing		2,676		—		—		—		—		2,676
Total commercial		1,335,832		5,276		11,401		5,339		—		1,357,848
1-4 family residential		384,235		28		—		1,417		—		385,680
Home equity loans		263,490		37		3,050		3,593		—		270,170
Other consumer loans		157,157		—		28		806		—		157,991
Total consumer		804,882		65		3,078		5,816		—		813,841
Other		61,006		—		273		—		—		61,279
Total loans	$	2,636,923	$	7,915	$	17,838	$	11,809	$	—	$	2,674,485

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Investment Securities

3 Months Ended

Mar. 31, 2014

Investments Debt And Equity Securities [Abstract]

Investment Securities

3. Investment Securities

Trading securities totaled $6.6 million and $6.3 million at March 31, 2014 and December 31, 2013, respectively.

The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at March 31, 2014, and December 31, 2013 are presented below:

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	127,912	$	—	$	678	$	127,234
Marketable equity securities		946		—		10		936
Mortgage-backed securities—residential issued by government sponsored entities		526,533		2,734		3,376		525,891
Industrial revenue bond		3,580		147		—		3,727
Total	$	658,971	$	2,881	$	4,064	$	657,788
Held-to-Maturity
U.S. Government agencies	$	14,777	$	—	$	322	$	14,455
State and political subdivisions—tax exempt		14,233		182		—		14,415
State and political subdivisions—taxable		543		—		2		541
Mortgage-backed securities—residential issued by government sponsored entities		419,578		1,697		947		420,328
Total	$	449,131	$	1,879	$	1,271	$	449,739

(Dollars in thousands)	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Available-for-Sale
Asset-backed securities	$	133,647	$	363	$	785	$	133,225
Marketable equity securities		946		—		15		931
Mortgage-backed securities—residential issued by government sponsored entities		549,869		2,337		5,580		546,626
Industrial revenue bond		3,750		109		—		3,859
Collateralized debt obligations		505		295		—		800
Total	$	688,717	$	3,104	$	6,380	$	685,441
Held-to-Maturity
U.S. Government agencies	$	14,972	$	—	$	401	$	14,571
State and political subdivisions—tax exempt		14,201		27		129		14,099
State and political subdivisions—taxable		545		—		12		533
Mortgage-backed securities—residential issued by government sponsored entities		435,380		328		5,218		430,490
Total	$	465,098	$	355	$	5,760	$	459,693

Proceeds from sales and calls of securities were $0.8 million and $1.0 million for the three months ended March 31, 2014 and 2013, respectively. Gross gains of $0.3 million and $0 were realized on these sales and calls during the three months ended March 31, 2014 and 2013.

The estimated fair value of investment securities at March 31, 2014, by contractual maturity, is shown as follows. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.

(Dollars in thousands)	March 31, 2014
	Amortized Cost		Estimated Fair Value		Yield
Available-for-sale
Due in one year or less	$	—	$	—		—
Due after one year through five years		—		—		—
Due after five years through ten years		56,958		56,907		0.75	%
Due after ten years		74,534		74,054		0.60	%
Mortgage-backed securities—residential issued by government sponsored entities		526,533		525,891		1.66	%
		658,025		656,852		1.46	%
Marketable equity securities		946		936
Total	$	658,971	$	657,788
	Amortized Cost		Estimated Fair Value		Yield
Held-to-maturity
Due in one year or less	$	670	$	670		0.85	%
Due after one year through five years		1,126		1,138		2.00	%
Due after five years through ten years		8,687		8,788		3.28	%
Due after ten years		19,070		18,815		2.99	%
Mortgage-backed securities—residential issued by government sponsored entities		419,578		420,328		2.42	%
Total	$	449,131	$	449,739		2.46	%

Securities with unrealized losses not recognized in income, and the period of time they have been in an unrealized loss position, are as follows:

(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
March 31, 2014
Available-for-Sale
Asset-backed securities	$	52,137	$	206	$	75,097	$	472	$	127,234	$	678
Marketable equity securities		936		10		—		—		936		10
Mortgage-backed securities—residential issued by government sponsored entities		305,368		3,376		—		—		305,368		3,376
Total	$	358,441	$	3,592	$	75,097	$	472	$	433,538	$	4,064
Held-to-Maturity
U.S. Government agencies	$	14,455	$	322	$	—	$	—	$	14,455	$	322
State and political subdivisions—tax exempt		111		—		—		—		111		—
State and political subdivisions—taxable		541		2		—		—		541		2
Mortgage-backed securities—residential issued by government sponsored entities		240,980		947		—		—		240,980		947
Total	$	256,087	$	1,271	$	—	$	—	$	256,087	$	1,271
(Dollars in thousands)	Less than 12 Months				12 Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2013
Available-for-Sale
Asset-backed securities	$	102,835	$	785	$	—	$	—	$	102,835	$	785
Marketable equity securities		931		15		—		—		931		15
Mortgage-backed securities—residential issued by government sponsored entities		339,565		5,580		—		—		339,565		5,580
Total	$	443,331	$	6,380	$	—	$	—	$	443,331	$	6,380
Held-to-Maturity
U.S. Government agencies	$	14,571	$	401	$	—	$	—	$	14,571	$	401
State and political subdivisions—tax exempt		10,489		129		—		—		10,489		129
State and political subdivisions—taxable		533		12		—		—		533		12
Mortgage-backed securities—residential issued by government sponsored entities		342,333		5,218		—		—		342,333		5,218
Total	$	367,926	$	5,760	$	—	$	—	$	367,926	$	5,760

The table below presents a rollforward of the other than temporary impairment credit losses recognized in earnings for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Beginning balance	$	714	$	660
Additions/Subtractions:
Credit losses recognized during the period		—		—
Ending balance	$	714	$	660

As of March 31, 2014, the Company’s security portfolio consisted of 138 securities, 90 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s mortgage-backed securities.

The majority of the mortgage-backed securities at March 31, 2014 and December 31, 2013 were issued by U.S. government-sponsored entities and agencies, institutions which the government has affirmed its commitment to support. Unrealized losses associated with these securities are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is not more likely than not that it will be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2014 or December 31, 2013.

Investment securities having carrying values of approximately $327.6 million and $313.5 million at March 31, 2014 and December 31, 2013, respectively, were pledged to secure public funds on deposit, securities sold under agreements to repurchase, and for other purposes as required by law.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Principles of Consolidation and Nature of Operations

Principles of Consolidation and Nature of Operations

Capital Bank Financial Corp. (“CBF” or the “Company”; formerly known as North American Financial Holdings, Inc.) is a bank holding company incorporated in Delaware and headquartered in Florida whose business is conducted primarily through Capital Bank, National Association (“Capital Bank, NA” or the “Bank”). CBF has a total of 163 full service banking offices located in Florida, North and South Carolina, Tennessee and Virginia.

In September 2012, Capital Bank Corporation (“CBKN”), Green Bankshares Inc. (“GRNB”) and TIB Financial Corp. (“TIBB”), majority owned subsidiaries of the Company, merged with and into Capital Bank Financial Corp. with CBF continuing as the surviving corporation (the “Reorganization”). Upon completion of the Reorganization, the outstanding common shares held by the minority shareholders were converted into an aggregate of 3.7 million shares of CBF’s Class A common stock. The Reorganization was accounted for as a merger with CBF as the acquirer (which is the surviving entity for legal purposes).

On October 1, 2012, the Company completed its acquisition of Southern Community Financial Corporation (“SCMF” or “Southern Community”), a publicly held bank holding company headquartered in Winston Salem, North Carolina.

The accompanying Consolidated Financial Statements (Unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and Regulation S-X. Accordingly, they do not include all of the information and disclosures required by US GAAP for complete financial statement presentation. In the opinion of management, all adjustments consisting of normal recurring accruals and disclosures considered necessary for a fair interim presentation have been included. All significant inter-company accounts and transactions have been eliminated in consolidation. For further information refer to the Company’s consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013.

Out of Period Adjustments

Out of Period Adjustments

During the three months ended March 31, 2014, the Company recorded a correction of an error resulting from the state net operating loss that the Company was not entitled to subsequent to the 2011 Green Bankshares acquisition. The impact of this correction decreased deferred tax assets and increased goodwill by $2.5 million. After evaluating the quantitative and qualitative aspects of this error, the Company concluded that its prior period financial statements were not materially misstated.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This update clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” This ASU allows for use of the proportional amortization method for qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as a component of income tax expense. This ASU provides for a practical expedient, which allows for amortization of only expected tax credits over the period tax credits are expected to be received. This method is permitted if it produces a measurement that is substantially similar to the measurement that would result from using both tax credits and other tax benefits. This ASU is effective for fiscal years and interim periods beginning after December 15, 2014. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This update requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. For public entities, this ASU is effective for fiscal years and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption on January 1, 2014 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

As of March 31, 2014, the Company had two compensation plans, the 2010 Equity Incentive Plan (the “2010 Plan”) and the 2013 Omnibus Compensation Plan (the “2013 Plan”) under which shares of its common stock are issuable in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock bonus awards and other incentive awards. The 2010 Plan was replaced by the 2013 Plan and no further awards may be made pursuant to the 2010 Plan.

The 2013 Plan was effective May 22, 2013 and expires on May 22, 2023, the tenth anniversary of the effective date. The maximum number of shares of common stock of the Company that may be optioned or awarded under this plan is 2,639,000 shares. Awards under this plan may be made to any person selected by the Compensation Committee.

The following table summarizes the components and classification of stock-based compensation expense for the three months ended March 31, 2014 and 2013.

(Dollars in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Stock options	$	195	$	83
Restricted stock		533		1,494
Total stock-based compensation expense	$	728	$	1,577

The tax benefit related to stock-based compensation expense arising from restricted stock awards and non-qualified stock options was $0.3 million and $0.6 million for the three months ended March 31, 2014 and 2013, respectively.

Stock Options

Under the 2010 and 2013 Plan, the exercise price for common stock must equal at least 100% of the fair market value of the stock on the day an option is granted. The exercise price under an incentive stock option granted to a person owning stock representing more than 10% of the common stock must equal at least 110% of the fair market value at the date of grant, and such option is not exercisable after five years from the date the incentive stock option was granted. The Board of Directors may, at its discretion, provide that an option not be exercised in whole or in part for any period or periods of time as specified in the option agreements. No option may be exercised after the expiration of ten years from the date it is granted. No stock options were granted under these plans during the three months ended March 31, 2014 and 2013.

ASC 718 requires the recognition of stock-based compensation for the number of awards that are ultimately expected to vest. During the three months ended March 31, 2014 and 2013, stock based compensation expense was recorded based upon assumptions that the Company would experience no forfeitures. This assumption of forfeitures will be reassessed in subsequent periods based on historical forfeiture rates and may change based on new facts and circumstances. Any changes in assumptions will be accounted for prospectively in the period of change.

A summary of the stock option activity for the three months ended March 31, 2014 and 2013 is as follows:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
Balance January 1,		3,124	$	20.50		2,890	$	21.39
Granted		—		—		—		—
Excercised		—		—		—		—
Expired or Forfeited		2		301.94		3		178.57
Balance March 31,		3,122	$	20.40		2,887	$	21.25

The weighted average remaining term for outstanding stock options was approximately 6.4 years at March 31, 2014. The aggregate intrinsic value at March 31, 2014 was $16.4 million and $14.6 million for stock options outstanding and exercisable, respectively. The aggregate intrinsic value at March 31, 2013 was $0 for stock options outstanding and exercisable. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company’s common stock as of the reporting date.

Options outstanding at March 31, 2014 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$18.00		244		9.14 years	$	18.00		—	$	—
$20.00		2,864		6.18 years		20.00		2,864		20.00
$28.44 - $2,026.00		14		3.56 years		140.70		14		140.70
$18.00 - $2,026.00		3,122		6.40 years	$	20.40		2,878	$	20.60

Options outstanding at March 31, 2013 were as follows:

(Shares in thousands)	Outstanding Options						Excercisable Options
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share		Shares		Weighted Average Exercise Price Per Share
$20.00		2,864		7.18 years	$	20.00		2,864	$	20.00
$28.44 - $2,026.00		23		3.35 years		173.92		23		178.58
$20.00 - $2,026.00		2,887		7.15 years	$	21.25		2,887	$	21.24

Restricted Stock

Restricted stock provides the grantee with voting, dividend and anti-dilution rights equivalent to common shareholders, but is restricted from transfer until vested, at which time all restrictions are removed. The terms of the restricted stock awards granted to employees provide for vesting upon the achievement of stock price goals as follows: (1) one-third at $25.00 per share; (2) one-third at $28.00 per share; and (3) one-third at $32.00 per share. Achievement of stock price goals is generally defined as the average closing price of the shares for any consecutive 30-day trading period exceeding the applicable price target. No restricted stock was granted under the 2010 and 2013 Plans during the three months ended March 31, 2014 and 2013.

The value of the restricted stock is being amortized on a straight-line basis over the implied service periods.

The following table summarizes unvested restricted stock activity for the three months ended March 31, 2014 and 2013:

	Three Months Ended
	March 31, 2014				March 31, 2013
(Shares in thousands)	Shares		Weighted Average Grant- Date Fair Value Per Share		Shares		Weighted Average Grant- Date Fair Value Per Share
Balance January 1,		1,216	$	14.28		1,212	$	14.27
Granted		—		—		—		—
Vested or released		—		—		—		—
Expired or forfeited		—		—		—		—
Balance March 31,		1,216	$	14.28		1,212	$	14.27

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Other Real Estate Owned

3 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Other Real Estate Owned

7. Other Real Estate Owned

The activity within Other Real Estate Owned (“OREO”) for the three months ended March 31, 2014 and 2013 is presented in the table below. Ending balances for OREO covered by loss sharing agreements with the FDIC for these periods were $18.6 million and $33.0 million, respectively.

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	129,396		$	154,093
Real estate acquired from borrowers		9,706			18,691
Valuation allowance		(3,573	)		(6,590	)
Properties sold and other		(15,259	)		(14,581	)
Balance, end of period	$	120,270		$	151,613

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Other Real Estate Owned - Other Real Estate Owned (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Banking And Thrift [Abstract]
Balance, beginning of period	$ 129,396	$ 154,093
Real estate acquired from borrowers	9,706	18,691
Valuation allowance	(3,573)	(6,590)
Properties sold and other	(15,259)	(14,581)
Balance, end of period	$ 120,270	$ 151,613

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Allowance for Loan Losses

5. Allowance for Loan Losses

Activity in the allowance for loan losses for the three months ended March 31, 2014 and 2013 is as follows:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	56,851		$	57,262
Reversal of provision for loan losses on PCI loans		(2,488	)		(3,148	)
Provision for loan losses on non-PCI loans		2,464			8,550
Non-PCI loans charged-off		(1,956	)		(7,321	)
Recoveries of non-PCI loans previously charged-off		735			1,828
Balance, end of period	$	55,606		$	57,171

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2014 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2013		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2014
Non-owner occupied commercial real estate	$	4,635	$	(819	)	$	13		$	3,829
Other commercial construction and land		8,217		875			(200	)		8,892
Multifamily commercial real estate		320		83			—			403
1-4 family residential construction and land		1,558		2			(1	)		1,559
Total commercial real estate		14,730		141			(188	)		14,683
Owner occupied commercial real estate		4,450		(807	)		(113	)		3,530
Commercial and industrial loans		8,310		(189	)		77			8,198
Lease financing		3		(2	)		—			1
Total commercial		12,763		(998	)		(36	)		11,729
1-4 family residential		21,724		(1,323	)		(18	)		20,383
Home equity loans		3,869		1,054			(48	)		4,875
Other consumer loans		2,682		1,020			(639	)		3,063
Total consumer		28,275		751			(705	)		28,321
Other		1,083		82			(292	)		873
Total loans	$	56,851	$	(24	)	$	(1,221	)	$	55,606

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2013 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2012		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2013
Non-owner occupied commercial real estate	$	3,764	$	(279	)	$	(36	)	$	3,449
Other commercial construction and land		12,711		(273	)		442			12,880
Multifamily commercial real estate		348		(197	)		41			192
1-4 family residential construction and land		1,716		(178	)		21			1,559
Total commercial real estate		18,539		(927	)		468			18,080
Owner occupied commercial real estate		4,055		15			44			4,114
Commercial and industrial loans		7,490		7,392			(4,367	)		10,515
Total commercial		11,545		7,407			(4,323	)		14,629
1-4 family residential		15,740		1,032			28			16,800
Home equity loans		8,670		(3,372	)		(683	)		4,615
Other consumer loans		2,082		651			(563	)		2,170
Total consumer		26,492		(1,689	)		(1,218	)		23,585
Other		686		611			(420	)		877
Total loans	$	57,262	$	5,402		$	(5,493	)	$	57,171

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by class of loans and by impairment evaluation method as of March 31, 2014:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,651	$	2,178	$	872	$	333,951	$	455,875
Other commercial construction and land		—		1,501		7,391		—		54,828		201,362
Multifamily commercial real estate		—		105		298		—		32,439		36,262
1-4 family residential construction and land		—		1,030		529		—		63,896		15,612
Total commercial real estate		—		4,287		10,396		872		485,114		709,111
Owner occupied commercial real estate		—		2,720		810		3,389		716,857		341,325
Commercial and industrial loans		426		6,563		1,209		5,364		669,162		131,833
Lease financing		—		1		—		—		2,513		—
Total commercial		426		9,284		2,019		8,753		1,388,532		473,158
1-4 family residential		3		2,512		17,868		175		405,905		390,660
Home equity loans		17		474		4,384		757		270,323		111,866
Other consumer loans		8		2,859		196		162		173,773		9,676
Total consumer		28		5,845		22,448		1,094		850,001		512,202
Other		—		324		549		—		66,354		46,461
Total loans	$	454	$	19,740	$	35,412	$	10,719	$	2,790,001	$	1,740,932

(1) Loans collectively evaluated for impairment include $425.9 million of acquired loans which are presented net of unamortized purchase discounts of $15.5 million.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and by impairment evaluation method as of December 31, 2013:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,615	$	3,020	$	877	$	286,685	$	488,171
Other commercial construction and land		—		1,201		7,016		—		67,789		232,705
Multifamily commercial real estate		—		116		204		—		29,187		38,501
1-4 family residential construction and land		—		1,065		493		—		56,979		14,372
Total commercial real estate		—		3,997		10,733		877		440,640		773,749
Owner occupied commercial real estate		—		2,611		1,839		4,844		686,409		366,895
Commercial and industrial loans		507		6,370		1,433		9,623		654,296		139,817
Lease financing		—		3		—		—		2,676		—
Total commercial		507		8,984		3,272		14,467		1,343,381		506,712
1-4 family residential		—		2,279		19,445		—		377,668		418,642
Home equity loans		—		398		3,471		—		270,170		116,196
Other consumer loans		5		2,313		364		207		157,784		12,535
Total consumer		5		4,990		23,280		207		805,622		547,373
Other		—		468		615		273		61,006		49,710
Total loans	$	512	$	18,439	$	37,900	$	15,824	$	2,650,649	$	1,877,544

(1) Loans collectively evaluated for impairment include $435.0 million of acquired loans which are presented net of unamortized purchase discounts of $16.4 million.

Troubled Debt Restructurings

If a borrower is experiencing financial difficulty, the Bank may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. A troubled debt restructuring (“TDR”) typically involves either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date(s) with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Upon modification of a loan, the Bank measures the related impairment as the excess of the recorded investment in the loan over the discounted expected future cash flows. The present value of expected future cash flows is discounted at the loan’s effective interest rate. If the impairment analysis results in a loss, an allowance for loan losses is established for the loan. During the three months ended March 31, 2014, loans modified in TDRs were nominal. Because of the immateriality of the amount and the nature of the modifications, the modifications did not have a material impact on the Company’s consolidated financial statements or on the determination of the allowance for loan losses at March 31, 2014. The Company had loans modified in TDRs with recorded investments of $0.3 million and $0 for the three months ended March 31, 2014 and 2013, respectively.

XML

FDIC Indemnification Asset

3 Months Ended

Mar. 31, 2014

Text Block [Abstract]

FDIC Indemnification Asset

6. FDIC Indemnification Asset

The Company has recorded an indemnification asset related to loss sharing agreements entered into with the FDIC wherein the FDIC will reimburse the Company for certain amounts related to certain acquired loans and other real estate owned should the Company experience a loss. Under the loss sharing arrangements, the FDIC has agreed to absorb 80% of all future credit losses and workout expenses on these assets which occur prior to the expiration of the loss sharing agreements. These agreements resulted from the purchase of the Failed Banks.

The loss sharing agreements consists of three (one for each Failed Bank) single-family shared-loss agreements and three (one for each Failed Bank) commercial and other loans shared-loss agreements. The single family shared-loss agreements provide for FDIC loss sharing and our reimbursement for recoveries to the FDIC for ten years from July 16, 2010 for single-family residential loans. The commercial shared-loss agreements provide for FDIC loss sharing for five years from July 16, 2010 and our reimbursement for recoveries to the FDIC for eight years from July 16, 2010 for all other covered assets.

The following is a summary of the activity in the FDIC indemnification asset:

(Dollars in thousands)
Balance, December 31, 2013	$	33,610
Indemnification asset income		345
Amortization of indemnification asset		(2,510	)
Cash received on reimbursable losses		(2,701	)
Balance, March 31, 2014	$	28,744
Balance, December 31, 2012	$	49,417
Indemnification asset income		(492	)
Amortization of indemnification asset		(1,677	)
Cash received on reimbursable losses		(2,987	)
Balance, March 31, 2013	$	44,261

XML

Federal Home Loan Bank Advances and Short-Term Borrowings

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Federal Home Loan Bank Advances and Short-Term Borrowings

8. Federal Home Loan Bank Advances and Short-Term Borrowings

Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, and advances from the Federal Home Loan Bank (“FHLB”).

The Bank has securities sold under agreements to repurchase with customers. These agreements are collateralized by investment securities of the United States Government or its agencies which are chosen by the Bank. The amounts outstanding at March 31, 2014 and December 31, 2013 were $30.5 million and $24.9 million, respectively.

The Bank invests in FHLB stock for the purpose of establishing credit lines with the FHLB. The credit availability to the Bank is based on a percentage of the Bank’s total assets as reported on the most recent quarterly financial information submitted to the regulators subject to the pledging of sufficient collateral.

The Bank’s collateral with the FHLB consists of a blanket floating lien pledge of the Bank’s residential 1-4 family mortgage, multifamily, home equity line of credit and commercial real estate secured loans. The amounts of eligible collateral at March 31, 2014 and December 31, 2013, provided for incremental borrowing availability of up to $209.7 million and $95.4 million, respectively.

At March 31, 2014 and December 31, 2013 the bank had $25.6 million in letters of credit issued by the FHLB, of which $25.2 million are used as collateral in lieu of pledging securities to the State of Florida.

The advances as of March 31, 2014 and December 31, 2013 consisted of the following:

(Dollars in thousands)
Contractual Outstanding Amount March 31, 2014		Contractual Outstanding Amount December 31, 2013		Maturity Date	Fixed Contractual Rate
$	20,000	$	95,000	May 16, 2014	0.36%
	688		724	November 6, 2017	0.50%
	543		554	February 10, 2026	0.00%
$	21,231	$	96,278

XML

Long Term Borrowings - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended	3 Months Ended		12 Months Ended	0 Months Ended
	Mar. 31, 2014 Trust_Preferred_Securities	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014 Subordinated Debt 1 [Member]	Mar. 31, 2014 Collateralized Mortgage-Backed Securities [Member]	Dec. 31, 2013 Collateralized Mortgage-Backed Securities [Member]	Mar. 18, 2013 Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Weighted-average rate of repurchase agreements					4.06%	4.06%
Collateralized mortgage-backed securities					$ 67,000,000	$ 62,100,000
No. of trust preferred securities acquired	13
Life of debt securities and trust preferred securities	30 years
Period allowed for deferral of interest payment on the trust preferred securities	60 months
Redeemed securities issued							34,500,000
Fixed interest rate				10.00%			7.95%
Losses (gains) on extinguishment of debt		308,000					300,000
Subordinated promissory notes	3,400,000
Subordinated promissory notes, due date	Mar. 18, 2020
Carrying value of promissory notes	$ 3,600,000		$ 3,600,000

XML

Long Term Borrowings - Schedule of Maturities of Long-Term Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Due in 2014 through 2015
Due in 2016	10,754
Due in 2017	31,725
Due in 2018
Thereafter	96,358
Total long-term debt	138,837	138,561
Fixed Rate [Member]
Debt Instrument [Line Items]
Due in 2014 through 2015
Due in 2016	10,754
Due in 2017	31,725
Due in 2018
Thereafter	14,294
Total long-term debt	56,773
Floating Rate [Member]
Debt Instrument [Line Items]
Due in 2014 through 2015
Due in 2016
Due in 2017
Due in 2018
Thereafter	82,064
Total long-term debt	$ 82,064

XML

Long Term Borrowings - Schedule of Outstanding Structured Repurchase Agreements (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	$ 53,223	$ 53,449
Contractual Amount	50,000
4.75% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	10,754	10,823
Contractual Amount	10,000
Maturity Date	November 6, 2016
Contractual Rate	4.75%
4.50% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	10,772	10,833
Contractual Amount	10,000
Maturity Date	March 30, 2017
Contractual Rate	4.50%
3.79% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	10,490	10,521
Contractual Amount	10,000
Maturity Date	December 18, 2017
Contractual Rate	3.79%
3.72% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	10,463	10,492
Contractual Amount	10,000
Maturity Date	December 18, 2017
Contractual Rate	3.72%
3.56% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying Amount	10,744	10,780
Contractual Amount	$ 10,000
Maturity Date	March 22, 2019
Contractual Rate	3.56%

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Reconciliation of Income Tax Computed at Applicable Federal Statutory Income Tax Rates to Total Income Taxes

A reconciliation of income tax computed at applicable Federal statutory income tax rates to total income tax expense reported is as follows for the three months ended March 31, 2014 and 2013:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Income before income taxes	$	18,622		$	11,308
Income taxes computed at Federal statutory tax rate		6,518			3,958
Effect of:
State taxes (net of federal benefit)		709			434
Tax-exempt interest income, net		(175	)		—
CVR expense		268			1,009
Other, net		(112	)		142
Total income tax expense	$	7,208		$	5,543

XML

Loans - Loans, Excluding Purchased Credit-Impaired Loans, Monitored for Credit Quality Based on Internal Ratings (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total	$ 2,805,553	$ 2,674,485
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,760,206	2,636,923
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	18,146	7,915
Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	17,095	17,838
Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	10,107	11,809
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	485,986	441,517
Total Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	479,541	435,203
Total Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,158	2,574
Total Commercial Real Estate [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	3,806	3,086
Total Commercial Real Estate [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	481	654
Total Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	334,823	287,562
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	333,099	285,919
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	121	568
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,514	985
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	89	90
Total Commercial Real Estate [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	54,828	67,789
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	54,327	67,178
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	48	48
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	61
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	392	563
Total Commercial Real Estate [Member] | Other Commercial Commercial and Land [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	32,439	29,187
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	32,138	28,882
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	301	305
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | Multifamily Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	63,896	56,979
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	59,977	53,224
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,989	1,958
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,930	1,796
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total		1
Total Commercial Real Estate [Member] | 1-4 Family Residential Construction and Land [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,397,285	1,357,848
Total Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,367,687	1,335,832
Total Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	15,960	5,276
Total Commercial [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	9,872	11,401
Total Commercial [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	3,766	5,339
Total Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	720,246	691,253
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	703,379	681,571
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	10,625	4,093
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	4,243	2,195
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,999	3,394
Total Commercial [Member] | Owner Occupied Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	674,526	663,919
Total Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	661,795	651,585
Total Commercial [Member] | Commercial and Industrial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	5,335	1,183
Total Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	5,629	9,206
Total Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,767	1,945
Total Commercial [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Lease Financing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,513	2,676
Total Commercial [Member] | Lease Financing [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,513	2,676
Total Commercial [Member] | Lease Financing [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Lease Financing [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Lease Financing [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Commercial [Member] | Lease Financing [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	855,928	813,841
Total Consumer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	846,887	804,882
Total Consumer [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	28	65
Total Consumer [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	3,154	3,078
Total Consumer [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	5,860	5,816
Total Consumer [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Consumer [Member] | 1-4 Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	410,913	385,680
Total Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	408,766	384,235
Total Consumer [Member] | 1-4 Family Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	28	28
Total Consumer [Member] | 1-4 Family Residential [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	381
Total Consumer [Member] | 1-4 Family Residential [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,739	1,417
Total Consumer [Member] | 1-4 Family Residential [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Consumer [Member] | Home Equity Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	271,080	270,170
Total Consumer [Member] | Home Equity Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	264,754	263,490
Total Consumer [Member] | Home Equity Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total		37
Total Consumer [Member] | Home Equity Loans [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,751	3,050
Total Consumer [Member] | Home Equity Loans [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	3,575	3,593
Total Consumer [Member] | Home Equity Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Consumer [Member] | Other Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	173,935	157,991
Total Consumer [Member] | Other Consumer Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	173,367	157,157
Total Consumer [Member] | Other Consumer Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Total Consumer [Member] | Other Consumer Loans [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	22	28
Total Consumer [Member] | Other Consumer Loans [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	546	806
Total Consumer [Member] | Other Consumer Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	66,354	61,279
Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	66,091	61,006
Other [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Other [Member] | Substandard Accruing/Accreting [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	263	273
Other [Member] | Substandard Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total
Other [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total

XML

Fair Value

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value

13. Fair Value

FASB guidance on fair value measurements defines fair value, establishes a framework for measuring fair value, and requires fair value disclosures for certain assets and liabilities measured at fair value on a recurring and non-recurring basis.

This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability.

This guidance establishes a fair value hierarchy for disclosure of fair value measurements to maximize the use of observable inputs, that is, inputs that reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of the reporting entity. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Cash & cash equivalents

For cash & cash equivalents, the carrying value is primarily utilized as a reasonable estimate of fair value.

Derivative financial instruments

Fair values for interest rate swaps, foreign exchange contracts, forward loan sales agreements and interest rate caps are based upon the amounts required to settle the contracts. Fair values for commitments to originate loans held for sale are based on fees currently charged to enter into similar agreements. Fair values for fixed-rate commitments also consider the difference between current levels of interest rates and the committed rates.

Valuation of Investment Securities

The fair values of available for sale, held-to-maturity and trading securities are determined by: 1) obtaining quoted prices on nationally recognized securities exchanges when available (Level 1 inputs); 2) matrix pricing, which is a mathematical technique widely used in the financial markets to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs); and 3) for certain corporate debt securities that are not actively traded, custom discounted cash flow modeling (Level 3 inputs).

As of March 31, 2014, Capital Bank held industrial revenue bonds which are floating rate issues. Since there is no active secondary market for the trading of the bonds, the Company has developed a model to estimate fair value. This model determines an appropriate discount rate for the bonds based on current market rates for liquid corporate bonds with an equivalent credit rating plus an estimated illiquidity factor, and calculates the present value of expected future cash flows using this discount rate.

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at the lower of cost or estimated fair value. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustment for mortgage loans held for sale is classified as nonrecurring Level 2.

Valuation of Impaired Loans and Other Real Estate Owned

The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses and other real estate owned is generally based on recent real estate appraisals and other available observable market information. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The Company generally uses independent external appraisers in this process who routinely make adjustments to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The Company’s policy is to update appraisals, at a minimum, annually for classified assets, which include collateral dependent loans and OREO. We consider appraisals dated within the past 12 months to be current and do not typically make adjustments to such appraisals. In the Company’s process for reviewing third-party prepared appraisals, any differences of opinion on values, assumptions or adjustments to comparable sales data are typically reconciled directly with the independent appraiser prior to acceptance of the final appraisal.

Sensitivity to Changes in Significant Unobservable Inputs

As discussed above, as of March 31, 2014, the Company owned industrial revenue bonds, which require recurring fair value estimates categorized within level 3 of the fair value hierarchy. The significant unobservable inputs used in the fair value measurement of these securities are incorporated in the discounted cash flow modeling valuation. Rates utilized in the modeling of these securities are estimated based upon a variety of factors including the market yields of other non-investment grade corporate debt. Significant changes in any inputs in isolation would result in significantly different fair value estimates.

Assets and Liabilities Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,562	$	4,337	$	2,225	$	—
Available-for-sale securities
Asset-backed securities		127,234		—		127,234		—
Mortgage-backed securities—residential		525,891		—		525,891		—
Industrial revenue bonds		3,727		—		—		3,727
Marketable equity securities		936		—		936		—
Available-for-sale securities		657,788		—		654,061		3,727
Gross asset value of derivatives		7		—		7		—
Liabilities
Gross liability value of derivatives	$	574	$	—	$	574	$	—

There were no transfers of assets and liabilities between levels of the fair value hierarchy during the three months ended March 31, 2014.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)			Fair Value Measurement Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Trading securities	$	6,348	$	4,477	$	1,871	(1)	$	—
Available-for-sale securities
Asset-backed securities		133,225		—		133,225			—
Mortgage-backed securities—residential		546,626		—		546,626			—
Industrial revenue bonds		3,859		—		—			3,859
Marketable equity securities		931		—		931	(1)		—
Collateralized debt obligations		800		—		800			—
Available-for-sale securities		685,441		—		681,582			3,859
Gross asset value of derivatives		15		—		15			—
Liabilities
Gross liability value of derivatives	$	1,330	$	—	$	1,330		$	—

(1) Transferred from Level 1 to Level 2 due to limited observable market data.

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2014.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Industrial Revenue Bonds
Beginning balance, January 1, 2014	$	3,859
Principal reduction		(170	)
Included in other comprehensive income		38
Ending balance, March 31, 2014	$	3,727

The table below presents reconciliations and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended and held at March 31, 2013.

(Dollars in thousands)	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Corporate Bonds		Industrial Revenue Bonds		Collateralized Debt Obligations
Beginning balance, January 1, 2013	$	26	$	3,800	$	297
Included in other comprehensive income		—		57		10
Ending balance, March 31, 2013	$	26	$	3,857	$	307

Quantitative Information about Recurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,727		Discounted cash flow	Discount rate	3.7%-3.8%
					Illiquidity factor	0.5%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique		Significant Unobservable Input	Range
Industrial revenue bonds	$	3,859		Discounted cash flow	Discount rate	3.7%-3.9%
					Illiquidity factor	0.5%

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Valuation of Impaired Loans and Other Real Estate Owned

The fair value of collateral dependent impaired loans with specific allocations of the allowance for loan losses and other real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of March 31, 2014:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	100,821
Other repossesed assets		—		85		—
Impaired loans		—		—		1,533

Other real estate owned measured at fair value as of March 31, 2014 had a carrying amount of $121.5 million, less valuation allowances totaling $20.7 million. Other repossessed assets are primarily comprised of repossessed vehicles and equipment and are measured at fair value as of the date of repossession.

Assets and liabilities measured at fair value on a nonrecurring basis are summarized below as of December 31, 2013:

(Dollars in thousands)	Fair Value Measurement Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Other real estate owned	$	—	$	—	$	118,579
Other repossesed assets		—		108		—
Impaired loans		—		—		1,332

Other real estate owned measured at fair value as of December 31, 2013 had a carrying amount of $138.4 million, less valuation allowances totaling $19.8 million. Other repossessed assets are primarily comprised of repossessed vehicles and equipment and are measured at fair value as of the date of repossession.

Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

(Dollars in thousands)	Fair Value at March 31, 2014		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	100,821	Fair value of property	Appraised value less cost to sell	6%-10%
Impaired loans		1,533	Fair value of collateral	Appraised value less cost to sell	6%-8%
(Dollars in thousands)	Fair Value at December 31, 2013		Valuation Technique	Significant Unobservable Input	Range
Other real estate owned	$	118,579	Fair value of property	Appraised value less cost to sell	7%-10%
Impaired loans		1,332	Fair value of collateral	Appraised value less cost to sell	8%

Carrying amount and estimated fair values of financial instruments were as follows:

(Dollars in thousands)	Fair Value Measurement
March 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	174,880	$	174,880	$	174,880	$	—	$	—
Trading securities		6,562		6,562		4,337		2,225		—
Investment securities available-for-sale		657,788		657,788		—		654,061		3,727
Investment securities held-to-maturity		449,131		449,739		—		449,739		—
Loans, net		4,490,879		4,672,988		—		4,833		4,668,155
Receivable from FDIC		5,832		5,832		—		5,832		—
FDIC indemnification asset		28,744		28,744		—		—		28,744
Other (1)		38,195		38,195		—		—		38,195
Gross asset value of derivatives		7		7		—		7		—
Total financial assets	$	5,852,018	$	6,034,735	$	179,217	$	1,116,697	$	4,738,821
Financial Liabilities
Noncontractual deposits	$	3,809,771	$	3,809,771	$	—	$	—	$	3,809,771
Contractual deposits		1,382,422		1,382,909		—		—		1,382,909
Federal Home Loan Bank advances		21,231		21,161		—		21,161		—
Short-term borrowings		30,453		30,453		—		30,453		—
Long-term borrowings		53,223		55,358		—		—		55,358
Subordinated debentures		85,614		98,695		—		—		98,695
Gross liability value of derivatives		574		574		—		574		—
Total financial liabilities	$	5,383,288	$	5,398,921	$	—	$	52,188	$	5,346,733

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

(Dollars in thousands)	Fair Value Measurement
December 31, 2013	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	164,441	$	164,441	$	164,441	$	—	$	—
Trading securities		6,348		6,348		4,477		1,871		—
Investment securities available-for-sale		685,441		685,441		—		681,582		3,859
Investment securities held-to-maturity		465,098		459,693		—		459,693		—
Loans, net		4,495,178		4,681,554		—		8,012		4,673,542
Receivable from FDIC		7,624		7,624		—		7,624		—
FDIC indemnification asset		33,610		33,610		—		—		33,610
Other (1)		44,088		44,088		—		—		44,088
Gross asset value of derivatives		15		15		—		15		—
Total financial assets	$	5,901,843	$	6,082,814	$	168,918	$	1,158,797	$	4,755,099
Financial Liabilities
Noncontractual deposits	$	3,737,566	$	3,737,566	$	—	$	—	$	3,737,566
Contractual deposits		1,447,497		1,448,032		—		—		1,448,032
Federal Home Loan Bank advances		96,278		96,241		—		96,241		—
Short-term borrowings		24,850		24,850		—		24,850		—
Long-term borrowings		53,449		55,861		—		—		55,861
Subordinated debentures		85,112		100,795		—		—		100,795
Gross liability value of derivatives		1,330		1,330		—		1,330		—
Total financial liabilities	$	5,446,082	$	5,464,675	$	—	$	122,421	$	5,342,254

(1) Includes Federal Reserve Bank, Federal Home Loan Bank and Bankers Bank stock.

The methods and assumptions used to estimate fair value are described as follows:

Carrying amount is the estimated fair value for cash and cash equivalents, receivable from FDIC, derivatives, noncontractual demand deposits and certain short-term borrowings. As it is not practicable to determine the fair value of Federal Reserve, Federal Home Loan Bank stock, FDIC indemnification asset and correspondent bank’s stocks due to restrictions placed on transferability, the estimated fair value is equal to their carrying amount. Security fair values are based on market prices or dealer quotes and, if no such information is available, on the rate and term of the security and information about the issuer including estimates of discounted cash flows when necessary. For fixed rate loans or contractual deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life, adjusted for the allowance for loan losses. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of long-term debt is based on current rates for similar financing. The fair value of off-balance sheet items that includes commitments to extend credit to fund commercial, consumer, real estate construction and real estate-mortgage loans and to fund standby letters of credit is considered nominal.

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Loans (Tables)

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Major Classifications of Loans

Major classifications of loans, including loans held for sale, are as follows:

(Dollars in thousands)	March 31, 2014		December 31, 2013
Non-owner occupied commercial real estate	$	790,698	$	775,733
Other commercial construction and land		256,190		300,494
Multifamily commercial real estate		68,701		67,688
1-4 family residential construction and land		79,508		71,351
Total commercial real estate		1,195,097		1,215,266
Owner occupied commercial real estate		1,061,571		1,058,148
Commercial and industrial loans		806,359		803,736
Lease financing		2,513		2,676
Total commercial		1,870,443		1,864,560
1-4 family residential		801,573		804,322
Home equity loans		382,946		386,366
Other consumer loans		183,611		170,526
Total consumer		1,368,130		1,361,214
Other		112,815		110,989
Total loans	$	4,546,485	$	4,552,029

Roll Forward of Accretable Yield

The table below presents a rollforward of accretable yield and income expected to be earned related to purchased credit-impaired loans:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	383,775		$	553,348
Accretion of income		(33,162	)		(44,985	)
Reclassification from nonaccretable difference		6,667			10,273
Other		(10,285	)		(27,399	)
Balance, end of period	$	346,995		$	491,237

Summary of Company's Estimate of Cash Flows for Purchased Credit-Impaired Loans

The following table represents the periods we estimate the accretable yield will accrete into income based on the Company’s most recent estimates of cash flows for purchased credit-impaired loans:

(Dollars in thousands)
Periods ending December 31,
2014	$	84,561
2015		85,901
2016		56,292
2017		39,098
2018		26,416
Thereafter		54,727
Total	$	346,995

Major Categories of Loans

Non-covered Loans

The following is a summary of the major categories of non-covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	408,625	$	334,823	$	743,448
Other commercial construction and land		186,304		54,828		241,132
Multifamily commercial real estate		27,441		32,439		59,880
1-4 family residential construction and land		15,612		63,896		79,508
Total commercial real estate		637,982		485,986		1,123,968
Owner occupied commercial real estate		275,738		720,246		995,984
Commercial and industrial loans		122,605		674,323		796,928
Lease financing		—		2,513		2,513
Total commercial		398,343		1,397,082		1,795,425
1-4 family residential		329,317		409,900		739,217
Home equity loans		97,031		236,144		333,175
Other consumer loans		9,615		173,935		183,550
Total consumer		435,963		819,979		1,255,942
Other		45,282		66,354		111,636
Total loans	$	1,517,570	$	2,769,401	$	4,286,971
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Non-covered Loans
Non-owner occupied commercial real estate	$	432,437	$	287,562	$	719,999
Other commercial construction and land		213,543		67,789		281,332
Multifamily commercial real estate		29,392		29,187		58,579
1-4 family residential construction and land		14,372		56,979		71,351
Total commercial real estate		689,744		441,517		1,131,261
Owner occupied commercial real estate		299,593		691,253		990,846
Commercial and industrial loans		129,961		663,563		793,524
Lease financing		—		2,676		2,676
Total commercial		429,554		1,357,492		1,787,046
1-4 family residential		349,060		384,663		733,723
Home equity loans		100,995		234,056		335,051
Other consumer loans		12,433		157,991		170,424
Total consumer		462,488		776,710		1,239,198
Other		47,888		61,279		109,167
Total loans	$	1,629,674	$	2,636,998	$	4,266,672

Covered Loans

The following is a summary of the major categories of covered loans outstanding as of March 31, 2014 and December 31, 2013:

(Dollars in thousands)
March 31, 2014	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	47,250	$	—	$	47,250
Other commercial construction and land		15,058		—		15,058
Multifamily commercial real estate		8,821		—		8,821
Total commercial real estate		71,129		—		71,129
Owner occupied commercial real estate		65,587		—		65,587
Commercial and industrial loans		9,228		203		9,431
Total commercial		74,815		203		75,018
1-4 family residential		61,343		1,013		62,356
Home equity loans		14,835		34,936		49,771
Other consumer loans		61		—		61
Total consumer		76,239		35,949		112,188
Other		1,179		—		1,179
Total loans	$	223,362	$	36,152	$	259,514
(Dollars in thousands)
December 31, 2013	PCI		Non-PCI		Total Covered Loans
Non-owner occupied commercial real estate	$	55,734	$	—	$	55,734
Other commercial construction and land		19,162		—		19,162
Multifamily commercial real estate		9,109		—		9,109
Total commercial real estate		84,005		—		84,005
Owner occupied commercial real estate		67,302		—		67,302
Commercial and industrial loans		9,856		356		10,212
Total commercial		77,158		356		77,514
1-4 family residential		69,582		1,017		70,599
Home equity loans		15,201		36,114		51,315
Other consumer loans		102		—		102
Total consumer		84,885		37,131		122,016
Other		1,822		—		1,822
Total loans	$	247,870	$	37,487	$	285,357

Aging of the Recorded Investment in Past Due Loans, Based on Contractual Terms

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of March 31, 2014:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	89	$	89
Other commercial construction and land		—		9		—		—		—		391		400
Total commercial real estate		—		9		—		—		—		480		489
Owner occupied commercial real estate		—		2,290		—		—		—		1,999		4,289
Commercial and industrial loans		5		717		—		—		66		1,701		2,489
Total commercial		5		3,007		—		—		66		3,700		6,778
1-4 family residential		—		134		—		—		29		1,711		1,874
Home equity loans		292		237		—		—		1,183		2,392		4,104
Other consumer loans		—		1,956		—		—		—		546		2,502
Total consumer		292		2,327		—		—		1,212		4,649		8,480
Total loans	$	297	$	5,343	$	—	$	—	$	1,278	$	8,829	$	15,747
(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	465	$	1,577	$	5,835	$	42,910	$	—	$	—	$	50,787
Other commercial construction and land		5		1,221		8,444		46,968		—		—		56,638
Multifamily commercial real estate		2,235		—		248		1,862		—		—		4,345
1-4 family residential construction and land		—		—		—		2,305		—		—		2,305
Total commercial real estate		2,705		2,798		14,527		94,045		—		—		114,075
Owner occupied commercial real estate		1,443		1,058		5,729		28,862		—		—		37,092
Commercial and industrial loans		9		226		202		30,693		—		—		31,130
Total commercial		1,452		1,284		5,931		59,555		—		—		68,222
1-4 family residential		2,121		5,127		6,116		35,699		—		—		49,063
Home equity loans		2,906		2,144		1,662		5,892		—		—		12,604
Other consumer loans		—		247		28		249		—		—		524
Total consumer		5,027		7,518		7,806		41,840		—		—		62,191
Other		—		890		294		2,943		—		—		4,127
Total loans	$	9,184	$	12,490	$	28,558	$	198,383	$	—	$	—	$	248,615

The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of December 31, 2013:

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Non-purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	—	$	—	$	—	$	—	$	—	$	90	$	90
Other commercial construction and land		—		—		—		—		—		563		563
Multifamily commercial real estate		—		305		—		—		—		—		305
1-4 family residential construction and land		—		—		—		—		—		1		1
Total commercial real estate		—		305		—		—		—		654		959
Owner occupied commercial real estate		—		20		—		—		—		3,394		3,414
Commercial and industrial loans		—		2		—		—		66		1,879		1,947
Total commercial		—		22		—		—		66		5,273		5,361
1-4 family residential		—		862		—		—		—		1,417		2,279
Home equity loans		146		1,046		—		—		1,270		2,324		4,786
Other consumer loans		—		1,800		—		—		—		806		2,606
Total consumer		146		3,708		—		—		1,270		4,547		9,671
Total loans	$	146	$	4,035	$	—	$	—	$	1,336	$	10,474	$	15,991

(Dollars in thousands)	30-89 Days Past Due				Greater than 90 Days Past Due and Still Accruing/Accreting				Non-accrual
Purchased credit impaired loans	Covered		Non-Covered		Covered		Non-Covered		Covered		Non-Covered		Total
Non-owner occupied commercial real estate	$	107	$	1,463	$	10,658	$	35,563	$	—	$	—	$	47,791
Other commercial construction and land		—		1,105		8,479		58,633		—		—		68,217
Multifamily commercial real estate		—		—		—		2,641		—		—		2,641
1-4 family residential construction and land		—		5		—		1,796		—		—		1,801
Total commercial real estate		107		2,573		19,137		98,633		—		—		120,450
Owner occupied commercial real estate		260		4,626		6,631		33,974		—		—		45,491
Commercial and industrial loans		—		249		1,597		29,819		—		—		31,665
Total commercial		260		4,875		8,228		63,793		—		—		77,156
1-4 family residential		227		6,696		10,824		37,646		—		—		55,393
Home equity loans		59		1,733		1,227		7,313		—		—		10,332
Other consumer loans		—		344		67		1,249		—		—		1,660
Total consumer		286		8,773		12,118		46,208		—		—		67,385
Other		—		433		954		4,745		—		—		6,132
Total loans	$	653	$	16,654	$	40,437	$	213,379	$	—	$	—	$	271,123

Loans, Excluding Purchased Credit-Impaired Loans, Monitored for Credit Quality Based on Internal Ratings

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at March 31, 2014:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	333,099	$	121	$	1,514	$	89	$	—	$	334,823
Other commercial construction and land		54,327		48		61		392		—		54,828
Multifamily commercial real estate		32,138		—		301		—		—		32,439
1-4 family residential construction and land		59,977		1,989		1,930		—		—		63,896
Total commercial real estate		479,541		2,158		3,806		481		—		485,986
Owner occupied commercial real estate		703,379		10,625		4,243		1,999		—		720,246
Commercial and industrial loans		661,795		5,335		5,629		1,767		—		674,526
Lease financing		2,513		—		—		—		—		2,513
Total commercial		1,367,687		15,960		9,872		3,766		—		1,397,285
1-4 family residential		408,766		28		381		1,739		—		410,913
Home equity loans		264,754		—		2,751		3,575		—		271,080
Other consumer loans		173,367		—		22		546		—		173,935
Total consumer		846,887		28		3,154		5,860		—		855,928
Other		66,091		—		263		—		—		66,354
Total loans	$	2,760,206	$	18,146	$	17,095	$	10,107	$	—	$	2,805,553

The following table summarizes loans, excluding purchased credit-impaired loans, monitored for credit quality based on internal ratings at December 31, 2013:

					Substandard
(Dollars in thousands)	Pass		Special Mention		Accruing/ Accreting		Non-accrual		Doubtful		Total
Non-owner occupied commercial real estate	$	285,919	$	568	$	985	$	90	$	—	$	287,562
Other commercial construction and land		67,178		48		—		563		—		67,789
Multifamily commercial real estate		28,882		—		305		—		—		29,187
1-4 family residential construction and land		53,224		1,958		1,796		1		—		56,979
Total commercial real estate		435,203		2,574		3,086		654		—		441,517
Owner occupied commercial real estate		681,571		4,093		2,195		3,394		—		691,253
Commercial and industrial loans		651,585		1,183		9,206		1,945		—		663,919
Lease financing		2,676		—		—		—		—		2,676
Total commercial		1,335,832		5,276		11,401		5,339		—		1,357,848
1-4 family residential		384,235		28		—		1,417		—		385,680
Home equity loans		263,490		37		3,050		3,593		—		270,170
Other consumer loans		157,157		—		28		806		—		157,991
Total consumer		804,882		65		3,078		5,816		—		813,841
Other		61,006		—		273		—		—		61,279
Total loans	$	2,636,923	$	7,915	$	17,838	$	11,809	$	—	$	2,674,485

XML

Loans - Major Categories of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Non-Covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	$ 4,286,971	$ 4,266,672
Non-Covered Loans [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	1,517,570	1,629,674
Non-Covered Loans [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	2,769,401	2,636,998
Non-Covered Loans [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	1,123,968	1,131,261
Non-Covered Loans [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	637,982	689,744
Non-Covered Loans [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	485,986	441,517
Non-Covered Loans [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	1,795,425	1,787,046
Non-Covered Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	398,343	429,554
Non-Covered Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	1,397,082	1,357,492
Non-Covered Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	1,255,942	1,239,198
Non-Covered Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	435,963	462,488
Non-Covered Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	819,979	776,710
Non-Covered Loans [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	111,636	109,167
Non-Covered Loans [Member] | Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	45,282	47,888
Non-Covered Loans [Member] | Other [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	66,354	61,279
Non-Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	743,448	719,999
Non-Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	408,625	432,437
Non-Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	334,823	287,562
Non-Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	241,132	281,332
Non-Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	186,304	213,543
Non-Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	54,828	67,789
Non-Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	59,880	58,579
Non-Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	27,441	29,392
Non-Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	32,439	29,187
Non-Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	79,508	71,351
Non-Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	15,612	14,372
Non-Covered Loans [Member] | 1-4 Family Residential Construction and Land [Member] | Total Commercial Real Estate [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	63,896	56,979
Non-Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	995,984	990,846
Non-Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	275,738	299,593
Non-Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	720,246	691,253
Non-Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	796,928	793,524
Non-Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	122,605	129,961
Non-Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	674,323	663,563
Non-Covered Loans [Member] | Lease Financing [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	2,513	2,676
Non-Covered Loans [Member] | Lease Financing [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	2,513	2,676
Non-Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	739,217	733,723
Non-Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	329,317	349,060
Non-Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	409,900	384,663
Non-Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	333,175	335,051
Non-Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	97,031	100,995
Non-Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	236,144	234,056
Non-Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	183,550	170,424
Non-Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	9,615	12,433
Non-Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Non-covered Loans	173,935	157,991
Covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	259,514	285,357
Covered Loans [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	223,362	247,870
Covered Loans [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	36,152	37,487
Covered Loans [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	71,129	84,005
Covered Loans [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	71,129	84,005
Covered Loans [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	75,018	77,514
Covered Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	74,815	77,158
Covered Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	203	356
Covered Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	112,188	122,016
Covered Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	76,239	84,885
Covered Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	35,949	37,131
Covered Loans [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	1,179	1,822
Covered Loans [Member] | Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	1,179	1,822
Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	47,250	55,734
Covered Loans [Member] | Non-Owner Occupied Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	47,250	55,734
Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	15,058	19,162
Covered Loans [Member] | Other Commercial Commercial and Land [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	15,058	19,162
Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	8,821	9,109
Covered Loans [Member] | Multifamily Commercial Real Estate [Member] | Total Commercial Real Estate [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	8,821	9,109
Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	65,587	67,302
Covered Loans [Member] | Owner Occupied Commercial Real Estate [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	65,587	67,302
Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	9,431	10,212
Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	9,228	9,856
Covered Loans [Member] | Commercial and Industrial Loans [Member] | Total Commercial [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	203	356
Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	62,356	70,599
Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	61,343	69,582
Covered Loans [Member] | 1-4 Family Residential [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	1,013	1,017
Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	49,771	51,315
Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	14,835	15,201
Covered Loans [Member] | Home Equity Loans [Member] | Total Consumer [Member] | Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	34,936	36,114
Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	61	102
Covered Loans [Member] | Other Consumer Loans [Member] | Total Consumer [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Covered Loans	$ 61	$ 102

XML

Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014 Securities	Mar. 31, 2013	Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
Trading securities	$ 6,562,000		$ 6,348,000
Proceeds from sales and calls of securities available for sale	800,000	1,000,000
Gross gains realized on sales and calls	300,000	0
Securities in portfolio	138
Securities in portfolio in an unrealized loss position	90
Investment securities, carrying values	$ 327,600,000		$ 313,500,000

XML

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 11,414	$ 5,765
Other comprehensive income before tax:
Unrealized holding gains on investment securities available-for-sale	2,388	1,072
Reclassification adjustment for gains realized in net income on securities available-for-sale	(296)
Reclassification adjustment for losses amortized in net income on securities held-to-maturity	338
Other comprehensive income, before tax:	2,430	1,072
Tax effect	(944)	(433)
Other comprehensive income, net of tax:	1,486	639
Comprehensive income	$ 12,900	$ 6,404

XML

Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

2. Earnings Per Common Share

Basic earnings per share is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential common shares issuable under stock options and unvested restricted shares computed using the treasury stock method. Earnings per share have been computed based on the following:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Weighted average number of shares outstanding:
Basic		50,518		54,623
Dilutive effect of options oustanding		970		—
Dilutive effect of restricted shares		444		870
Diluted	$	51,932	$	55,493

The dilutive effect of stock options and unvested restricted shares are the only common stock equivalents for purposes of calculating diluted earnings per common share.

Weighted average anti-dilutive stock options and unvested restricted shares excluded from the computation of diluted earnings per share are as follows:

(Shares in thousands)	Three Months Ended
	March 31, 2014		March 31, 2013
Anti-dilutive stock options		15		2,871
Anti-dilutive restricted shares		—		—

XML

FDIC Indemnification Asset - Schedule of FDIC Indemnification Asset (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Fdic Indemnification Asset [Abstract]
FDIC indemnification asset, beginning balance	$ 33,610	$ 49,417
Indemnification asset income	345	(492)
Amortization of indemnification asset	(2,510)	(1,677)
Cash received on reimbursable losses	(2,701)	(2,987)
FDIC indemnification asset, ending balance	$ 28,744	$ 44,261

XML

Derivative Instrument - Summary of Derivative Instrument Contracts Fair Value and Notional Amount (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets [Member]
Derivative [Line Items]
Derivative, Fair Value	$ 7	$ 15
Derivative, Notional Amount	4,925	16,715
Assets [Member] | Interest Rate Cap Contracts (Matured in 2014) [Member]
Derivative [Line Items]
Derivative, Notional Amount		12,500
Assets [Member] | Forward Loan Sales Contracts (Maturing in 2014) [Member]
Derivative [Line Items]
Derivative, Fair Value	7	15
Derivative, Notional Amount	4,925	4,215
Liabilities [Member]
Derivative [Line Items]
Derivative, Fair Value	574	1,330
Derivative, Notional Amount	33,367	28,545
Liabilities [Member] | Forward Loan Sales Contracts (Maturing in 2014) [Member]
Derivative [Line Items]
Derivative, Fair Value	26	10
Derivative, Notional Amount	8,367	3,545
Liabilities [Member] | Interest Rate Swaps Associated with Certificates of Deposits (Maturing in 2040) [Member]
Derivative [Line Items]
Derivative, Fair Value	548	1,320
Derivative, Notional Amount	$ 25,000	$ 25,000

XML

Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Tax benefit related to stock-based compensation expense	$ 0.3	$ 0.6
Outstanding Options, weighted average remaining contractual life	6 years 4 months 24 days
Aggregate intrinsic value for stock options outstanding	16.4	0
Aggregate intrinsic value for stock options exercisable	$ 14.6	$ 0
Trading period for determining stock price	30 days
2010 and 2013 Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Exercise price for common stock	100.00%
Exercise price under an incentive stock option granted	110.00%
Fair market value at the date of grant	5 years
Exercised after expiration	10 years
Options exercised after ten years	0	0
2010 Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock options granted	0
2010 Plan [Member] | Restricted Stock Awards [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock options granted	0
2013 Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock options granted		0
2013 Plan [Member] | Restricted Stock Awards [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock options granted		0
2013 Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Expiration of the plan	2,639,000
Equity incentive plan effective date	May 22, 2013
Equity incentive plan maturity date	May 22, 2023
Vesting Term 1 [Member] | Restricted Stock and Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation arrangement by share based payment award options grants in period, percentage	33.00%
Share based compensation arrangement by per share based payment award options grants in period	$ 25.00
Vesting Term 2 [Member] | Restricted Stock and Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation arrangement by share based payment award options grants in period, percentage	33.00%
Share based compensation arrangement by per share based payment award options grants in period	$ 28.00
Vesting Term 3 [Member] | Restricted Stock and Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation arrangement by share based payment award options grants in period, percentage	33.00%
Share based compensation arrangement by per share based payment award options grants in period	$ 32.00
Minimum [Member] | 2010 and 2013 Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Exercise price under an incentive stock option granted	10.00%

XML

Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Allowance for Loan Losses

Activity in the allowance for loan losses for the three months ended March 31, 2014 and 2013 is as follows:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Balance, beginning of period	$	56,851		$	57,262
Reversal of provision for loan losses on PCI loans		(2,488	)		(3,148	)
Provision for loan losses on non-PCI loans		2,464			8,550
Non-PCI loans charged-off		(1,956	)		(7,321	)
Recoveries of non-PCI loans previously charged-off		735			1,828
Balance, end of period	$	55,606		$	57,171

Roll Forward of the Allowance for Loan Losses

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2014 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2013		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2014
Non-owner occupied commercial real estate	$	4,635	$	(819	)	$	13		$	3,829
Other commercial construction and land		8,217		875			(200	)		8,892
Multifamily commercial real estate		320		83			—			403
1-4 family residential construction and land		1,558		2			(1	)		1,559
Total commercial real estate		14,730		141			(188	)		14,683
Owner occupied commercial real estate		4,450		(807	)		(113	)		3,530
Commercial and industrial loans		8,310		(189	)		77			8,198
Lease financing		3		(2	)		—			1
Total commercial		12,763		(998	)		(36	)		11,729
1-4 family residential		21,724		(1,323	)		(18	)		20,383
Home equity loans		3,869		1,054			(48	)		4,875
Other consumer loans		2,682		1,020			(639	)		3,063
Total consumer		28,275		751			(705	)		28,321
Other		1,083		82			(292	)		873
Total loans	$	56,851	$	(24	)	$	(1,221	)	$	55,606

The following table presents the roll forward of the allowance for loan losses for the three months ended March 31, 2013 by the class of loans against which the allowance is allocated:

(Dollars in thousands)	December 31, 2012		Provision/ (Reversals)			Net (Charge-offs)/ Recoveries			March 31, 2013
Non-owner occupied commercial real estate	$	3,764	$	(279	)	$	(36	)	$	3,449
Other commercial construction and land		12,711		(273	)		442			12,880
Multifamily commercial real estate		348		(197	)		41			192
1-4 family residential construction and land		1,716		(178	)		21			1,559
Total commercial real estate		18,539		(927	)		468			18,080
Owner occupied commercial real estate		4,055		15			44			4,114
Commercial and industrial loans		7,490		7,392			(4,367	)		10,515
Total commercial		11,545		7,407			(4,323	)		14,629
1-4 family residential		15,740		1,032			28			16,800
Home equity loans		8,670		(3,372	)		(683	)		4,615
Other consumer loans		2,082		651			(563	)		2,170
Total consumer		26,492		(1,689	)		(1,218	)		23,585
Other		686		611			(420	)		877
Total loans	$	57,262	$	5,402		$	(5,493	)	$	57,171

Summary of Allowance for Loan Losses and Recorded Investment in Loans by Class of Loans and by Impairment Evaluation

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by class of loans and by impairment evaluation method as of March 31, 2014:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,651	$	2,178	$	872	$	333,951	$	455,875
Other commercial construction and land		—		1,501		7,391		—		54,828		201,362
Multifamily commercial real estate		—		105		298		—		32,439		36,262
1-4 family residential construction and land		—		1,030		529		—		63,896		15,612
Total commercial real estate		—		4,287		10,396		872		485,114		709,111
Owner occupied commercial real estate		—		2,720		810		3,389		716,857		341,325
Commercial and industrial loans		426		6,563		1,209		5,364		669,162		131,833
Lease financing		—		1		—		—		2,513		—
Total commercial		426		9,284		2,019		8,753		1,388,532		473,158
1-4 family residential		3		2,512		17,868		175		405,905		390,660
Home equity loans		17		474		4,384		757		270,323		111,866
Other consumer loans		8		2,859		196		162		173,773		9,676
Total consumer		28		5,845		22,448		1,094		850,001		512,202
Other		—		324		549		—		66,354		46,461
Total loans	$	454	$	19,740	$	35,412	$	10,719	$	2,790,001	$	1,740,932

(1) Loans collectively evaluated for impairment include $425.9 million of acquired loans which are presented net of unamortized purchase discounts of $15.5 million.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and by impairment evaluation method as of December 31, 2013:

(Dollars in thousands)	Allowance for Loan Losses						Loans
Non-purchased credit impaired loans	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit- Impaired		Individually Evaluated for Impairment		Collectively Evaluated for Impairment (1)		Purchased Credit- Impaired
Non-owner occupied commercial real estate	$	—	$	1,615	$	3,020	$	877	$	286,685	$	488,171
Other commercial construction and land		—		1,201		7,016		—		67,789		232,705
Multifamily commercial real estate		—		116		204		—		29,187		38,501
1-4 family residential construction and land		—		1,065		493		—		56,979		14,372
Total commercial real estate		—		3,997		10,733		877		440,640		773,749
Owner occupied commercial real estate		—		2,611		1,839		4,844		686,409		366,895
Commercial and industrial loans		507		6,370		1,433		9,623		654,296		139,817
Lease financing		—		3		—		—		2,676		—
Total commercial		507		8,984		3,272		14,467		1,343,381		506,712
1-4 family residential		—		2,279		19,445		—		377,668		418,642
Home equity loans		—		398		3,471		—		270,170		116,196
Other consumer loans		5		2,313		364		207		157,784		12,535
Total consumer		5		4,990		23,280		207		805,622		547,373
Other		—		468		615		273		61,006		49,710
Total loans	$	512	$	18,439	$	37,900	$	15,824	$	2,650,649	$	1,877,544

(1) Loans collectively evaluated for impairment include $435.0 million of acquired loans which are presented net of unamortized purchase discounts of $16.4 million.

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Income Taxes - Reconciliation of Income Tax Computed at Applicable Federal Statutory Income Tax Rates to Total Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Income before income taxes	$ 18,622	$ 11,308
Income taxes computed at Federal statutory tax rate	6,518	3,958
Effect of:
State taxes (net of federal benefit)	709	434
Tax-exempt interest income, net	(175)
CVR expense	767	2,883
Other, net	(112)	142
Total income tax expense	$ 7,208	$ 5,543

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Earnings Per Common Share - Computation of Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Weighted average number of shares outstanding:
Basic	50,518	54,623
Diluted	51,932	55,493
Employee Stock Option [Member]
Weighted average number of shares outstanding:
Dilutive effect	970
Restricted Stock Awards [Member]
Weighted average number of shares outstanding:
Dilutive effect	444	870

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

A reconciliation of income tax computed at applicable Federal statutory income tax rates to total income tax expense reported is as follows for the three months ended March 31, 2014 and 2013:

(Dollars in thousands)	Three Months Ended
	March 31, 2014			March 31, 2013
Income before income taxes	$	18,622		$	11,308
Income taxes computed at Federal statutory tax rate		6,518			3,958
Effect of:
State taxes (net of federal benefit)		709			434
Tax-exempt interest income, net		(175	)		—
CVR expense		268			1,009
Other, net		(112	)		142
Total income tax expense	$	7,208		$	5,543

The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates. For the three months ended March 31, 2014 and 2013, the effective income tax rates were 38.71% and 49.02% respectively. The change in effective income tax rates was mainly due to the impact of the CVR expense.

For the three months ended March 31, 2014 and 2013, the change in value of the CVR and related expense resulted from the overall improvement in our most recent estimates of cash flows, substantially related to the Company’s legacy Southern Community and Green Bankshares portfolios. The potential payments resulting from CVRs issued as a part of these acquisitions, which were non-taxable transactions, are considered by the Internal Revenue Service as additional consideration to the former shareholders. Accordingly, the expense associated with changes in estimated value of the CVRs is not deductible for income tax purposes.

The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of the states of Florida, South and North Carolina and Tennessee. The net deferred tax assets as of March 31, 2014 and December 31, 2013 were $158.1 million and $166.8 million, respectively. A valuation allowance related to deferred tax assets is required when it is considered more likely than not that all or part of the benefit related to such assets will not be realized. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence in concluding that no valuation allowance was necessary at March 31, 2014 and December 31, 2013.

At March 31, 2014 and December 31, 2013, the Company had $97.5 million and $101.9 million of gross federal and state net operating loss carryforwards, respectively, which begin to expire after 2029 if unused and are subject to an annual cumulative limitation of $10.9 million.

At March 31, 2014 and December 31, 2013, the Company had no amounts recorded for uncertain tax positions.