North American Financial Holdings
Encyclopedia
North American Financial Holdings Inc. (NAFH) is a bank holding company which operates out of Charlotte, North Carolina
but for regulatory purposes is headquartered in Miami, Florida
. The nationally chartered NAFH National Bank operates as Capital Bank, which is based in Raleigh, North Carolina
. Former Bank of America
vice chairman Gene Taylor is chief executive, former Bank of America executive and Fifth Third Bank CFO, Chris Marshall is CFO and former Bank of America executive, R. Bruce Singletary is Chief Risk Officer. Former Morgan Stanley
research analyst, Kenneth Posner, manages research for NAFH. Its purpose is to take over banks that have had difficulties due to the financial crisis of 2007–2010, making money by paying low prices and then improving the banks' performance. The company's main interest was banks in the Carolinas and Florida
, but in 2011, NAFH moved into Tennessee
for the first time.
s Crestview Partners, Oak Hill Advisors and Falfurrias Capital Partners. In March 2010 bank regulators granted NAFH a shelf charter, and the search began for banks to acquire.
On June 29, 2010, Naples, Florida
-based TIB Financial Corp., parent of TIB Bank and Naples Capital Advisors, announced that NAFH had agreed to invest $175 million in the company. Over the next 18 months, NAFH would have the right to invest $175 million more. The deal was completed in third quarter 2010.
As of July 16, 2010, NAFH owned MetroBank of Dade County, Florida; Turnberry Bank of Aventura, Florida
; and First National Bank of the South in Spartanburg, South Carolina
. These four banks, after approval of the TIB deal, give NAFH $3.1 billion in assets, and 10 branches in the Miami, Florida
area and 13 in South Carolina
, plus 28 more branches in southwest Florida with the completion of the TIB deal. NAFH did not pay for the three banks it already owns, but instead divided loan losses with the Federal Deposit Insurance Corporation
.
Hugh McColl
, co-founder of Falfurrias and former Bank of America CEO, predicted NAFH would have $20 billion in assets in five to seven years.
As of March 31, 2010, MetroBank had $442.3 million in assets with $391.3 million in deposits. Turnberry Bank had $263.9 million in assets with $196.9 million in deposits. First National had $682.0 million in assets and deposits totalling $610.1 million.
On December 16, 2010, shareholders of Raleigh, North Carolina
-based Capital Bank approved selling a majority interest to NAFH, which would buy newly issued stock rather than stock from existing shareholders. Capital Bank began in 1997 as the Triangle's first new bank in eight years, after raising $26 million, the most for a new bank in the state's history. By 2005, after expansion and buying other banks, Capital had $915 million in assets, and by 2010, assets had reacherd $1.7 billion. The Late-2000s recession hurt Capital, and regulators expected the bank to act. At one time, selling new stock was considered. Finally, Capital chose to accept help from NAFH. The deal originally depended on NAFH being able to get a 50 percent discount on preferred stock
and warrants
held by the U.S. Treasury
as a result of the federal stimulus. However, in a January 18, 2011 interview, Capital CEO Grant Yarber said the federal government would get all its money back.
On January 28, 2011, NAFH completed its $181 million deal for 85 percent of Capital. NAFH CEO Gene Taylor became CEO of Capital, replacing Yarber, whose new title was market president for North Carolina.
All NAFH-owned banks continue to operate separately but the company has announced its intention to re-brand the banks as Capital Bank. Capital had 32 branches before the deal, but after adding the four other NAFH banks, the total will be 84. Capital will keep its Raleigh headquarters. Once the deal is closed, North American's banks will have more than $5 Billion in assets, placing them among the nations top 125 banks.
Late in April 2011, the Comptroller of the Currency approved merger of all of the banks into NAFH National Bank, a nationally chartered bank which will operate as Capital Bank. The Capital headquarters will remain in Raleigh's Capital Bank Plaza
, where it relocated in 2006.
On May 5, 2011, NAFH announced a $217 million deal for 90 percent of Greeneville, Tennessee
-based Green Bankshares Inc., with 65 GreenBank branches and $2.5 billion in assets. GreenBank CEO Steve Rownd would be Tennessee market president. With the completion of this transaction in the third quarter, NAFH would have $7.3 billion in assets (putting the company in the nation's top 100 banks) and 149 branches in four states.
In June 2011, NAFH filed with the SEC to raise up to $300 million in an initial public offering.
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
but for regulatory purposes is headquartered in Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
. The nationally chartered NAFH National Bank operates as Capital Bank, which is based in Raleigh, North Carolina
Raleigh, North Carolina
Raleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...
. Former Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
vice chairman Gene Taylor is chief executive, former Bank of America executive and Fifth Third Bank CFO, Chris Marshall is CFO and former Bank of America executive, R. Bruce Singletary is Chief Risk Officer. Former Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
research analyst, Kenneth Posner, manages research for NAFH. Its purpose is to take over banks that have had difficulties due to the financial crisis of 2007–2010, making money by paying low prices and then improving the banks' performance. The company's main interest was banks in the Carolinas and Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, but in 2011, NAFH moved into Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
for the first time.
History
In December 2009, NAFH raised $900 million from such sources as private equity firmPrivate equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
s Crestview Partners, Oak Hill Advisors and Falfurrias Capital Partners. In March 2010 bank regulators granted NAFH a shelf charter, and the search began for banks to acquire.
On June 29, 2010, Naples, Florida
Naples, Florida
Naples is a city in Collier County, Florida, United States. As of July 1, 2007, the U.S. Census Bureau estimated the city's population at 21,653. Naples is a principal city of the Naples–Marco Island Metropolitan Statistical Area, which had an estimated total population of 315,839 on July 1, 2007...
-based TIB Financial Corp., parent of TIB Bank and Naples Capital Advisors, announced that NAFH had agreed to invest $175 million in the company. Over the next 18 months, NAFH would have the right to invest $175 million more. The deal was completed in third quarter 2010.
As of July 16, 2010, NAFH owned MetroBank of Dade County, Florida; Turnberry Bank of Aventura, Florida
Aventura, Florida
Aventura is a planned, suburban city located in northeastern Miami-Dade County, Florida. The city name is from the Spanish word for "adventure", and was named "Aventura" after one of the developers of the original group of condominiums in the area remarked to the others, "What an adventure this is...
; and First National Bank of the South in Spartanburg, South Carolina
Spartanburg, South Carolina
thgSpartanburg is the largest city in and the county seat of Spartanburg County, South Carolina, United States. It is the second-largest city of the three primary cities in the Upstate region of South Carolina, and is located northwest of Columbia, west of Charlotte, and about northeast of...
. These four banks, after approval of the TIB deal, give NAFH $3.1 billion in assets, and 10 branches in the Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
area and 13 in South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, plus 28 more branches in southwest Florida with the completion of the TIB deal. NAFH did not pay for the three banks it already owns, but instead divided loan losses with the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
.
Hugh McColl
Hugh McColl
Hugh L. McColl Jr. is a fourth-generation banker and the former Chairman and CEO of Bank of America. McColl was a driving force behind consolidating a series of progressively larger, mostly Southern banks, thrifts and financial institutions into a super-regional banking force, "the first...
, co-founder of Falfurrias and former Bank of America CEO, predicted NAFH would have $20 billion in assets in five to seven years.
As of March 31, 2010, MetroBank had $442.3 million in assets with $391.3 million in deposits. Turnberry Bank had $263.9 million in assets with $196.9 million in deposits. First National had $682.0 million in assets and deposits totalling $610.1 million.
On December 16, 2010, shareholders of Raleigh, North Carolina
Raleigh, North Carolina
Raleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...
-based Capital Bank approved selling a majority interest to NAFH, which would buy newly issued stock rather than stock from existing shareholders. Capital Bank began in 1997 as the Triangle's first new bank in eight years, after raising $26 million, the most for a new bank in the state's history. By 2005, after expansion and buying other banks, Capital had $915 million in assets, and by 2010, assets had reacherd $1.7 billion. The Late-2000s recession hurt Capital, and regulators expected the bank to act. At one time, selling new stock was considered. Finally, Capital chose to accept help from NAFH. The deal originally depended on NAFH being able to get a 50 percent discount on preferred stock
Preferred stock
Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument...
and warrants
Warrant (finance)
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date....
held by the U.S. Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
as a result of the federal stimulus. However, in a January 18, 2011 interview, Capital CEO Grant Yarber said the federal government would get all its money back.
On January 28, 2011, NAFH completed its $181 million deal for 85 percent of Capital. NAFH CEO Gene Taylor became CEO of Capital, replacing Yarber, whose new title was market president for North Carolina.
All NAFH-owned banks continue to operate separately but the company has announced its intention to re-brand the banks as Capital Bank. Capital had 32 branches before the deal, but after adding the four other NAFH banks, the total will be 84. Capital will keep its Raleigh headquarters. Once the deal is closed, North American's banks will have more than $5 Billion in assets, placing them among the nations top 125 banks.
Late in April 2011, the Comptroller of the Currency approved merger of all of the banks into NAFH National Bank, a nationally chartered bank which will operate as Capital Bank. The Capital headquarters will remain in Raleigh's Capital Bank Plaza
Capital Bank Plaza
Capital Bank Plaza is a skyscraper in Raleigh, North Carolina which houses the headquarters of Capital Bank. Formerly known as 333 Corporate Plaza, the 15-story building at 333 Fayetteville Street has of space and is an "outstanding example of International Style modernism" and "features black...
, where it relocated in 2006.
On May 5, 2011, NAFH announced a $217 million deal for 90 percent of Greeneville, Tennessee
Greeneville, Tennessee
Greeneville is a town in Greene County, Tennessee, United States. The population was 15,198 at the 2000 census. It is the county seat of Greene County. The town was named in honor of Revolutionary War hero Nathanael Greene. It is the only town with this spelling in the United States, although there...
-based Green Bankshares Inc., with 65 GreenBank branches and $2.5 billion in assets. GreenBank CEO Steve Rownd would be Tennessee market president. With the completion of this transaction in the third quarter, NAFH would have $7.3 billion in assets (putting the company in the nation's top 100 banks) and 149 branches in four states.
In June 2011, NAFH filed with the SEC to raise up to $300 million in an initial public offering.