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.