Raleigh-based Capital Bank reported today net income of $1.3 million during the second quarter, its second earnings release since North American Financial Holdings acquired a majority stake in the business in exchange for a $181 million investment.

That amounted to earnings of one cent per share. 

In its first earnings release earlier this year Capital reported a lost of $574,000.

The company adopted new accounting standards after the acquisition that significantly affected its results, so comparisons with year-ago results are skewed.

As of the acquisition date, Capital's allowance for loan losses was eliminated.

The North American deal pumped much-needed capital into the bank, which was being pressured by regulators to shore up its finances in the wake of its struggles after the recession hit.

"I am pleased with the bank's progress in new loan originations and core deposit growth, which should set the state for continued improvements in profitability," said Gene Taylor, the chairman and CEO of both Capital and NAHF, in a release.

The investment firm that bought Raleigh-based Capital Bank this year has filed plans for an initial public offering of stock, Charlotte Observer staff writer Rick Rothacker reports.

North American Financial Holdings is seeking to raise as much as $300 million by selling shares on Wall Street.

Its filing with the Securities and Exchange Commission, as is typical, does not yet say how many shares the company will issue, what the initial price will be and what ticker symbol the company will trade under.

NAFH is a bank holding company led by former Bank of America executives Gene Taylor and Chris Marshall that raised $900 million from investors in 2009 to buy troubled banks. Since last summer, the executives have bought five banks in the Carolinas and Florida and have a deal pending to acquire a Tennessee-based bank.

NAFH plans to consolidate its banking subsidiaries under the name Capital Bank.

Read the full Charlotte Observer story here.

Charlotte-based North American Financial Holdings has signed a definitive agreement to take a 90 percent stake in a Greenville, Tenn.-based bank for $217 million, reports Rick Rothacker, the banking reporter at the Charlotte Observer.

Green Bankshares has 65 branches and $2.4 billion in assets.

The deal would be the sixth for North American, which is led by former Bank of America executives Gene Taylor and Chris Marshall. North American is consolidating its purchases under the banner of Capital Bank, the Raleigh bank it bought last year.

With the latest addition, North American would have $7.3 billion in assets in the Carolinas, Tennessee and Florida.
 

Capital Bank's eight outside directors will receive rich payments if the Raleigh bank's deal with a private investor goes through.

Earlier this month, Capital announced that North American Financial Holdings had agreed to pay $2.55 per share, or $181 million, to buy a majority stake in the struggling bank. Capital shareholders are scheduled to vote on the deal Dec. 16.

If completed, the deal will trigger lump-sum payments for Capital's directors worth a total of $2.2 million, the company reported in a Securities and Exchange Commission filing late today. That money is based on a "change in control" clause in the directors' retirement benefits.

Capital chairman O.A. Keller III would receive $891,104. Keller is CEO of Earthtec of NC, an environmental treatment facility in Sanford. He has been a Capital director since the bank started in 1997.