A lot of banks have talked about using M&A to grow their presence in banking markets with attractive demographic trends like the Carolinas, Georgia, and Florida, but Capital Bank Financial (NASDAQ:CBF) has shown more commitment than most. Created amid the chaos and disruption of the credit crisis, Capital Bank's experienced management has used multiple M&A transactions to build a credible banking franchise with a solid presence in multiple attractive metro areas.
And now for the "but". There are a lot of things to like about Capital Bank - an improving deposit mix, solid loan growth (and an improving mix), asset sensitivity, and ample surplus capital to support additional M&A. The "but" is that the valuation already amply reflects all of this, and the shares only make sense to me on the basis of M&A takeout valuation, and I think management here would rather prove that it can integrate the CommunityOne deal and drive attractive synergies before considering a sale.
Capital Bank Financial Keenly Focused On Some Of The Best Bank Markets