Capital Bank Financial Considers a Sale After Approach

Updated on
  • Bank said to work with advisers, reach out to potential buyers
  • Firm was founded after financial crisis by ex-BofA executives

Capital Bank Financial Corp. is working with advisers to explore a sale after receiving an unsolicited approach, people familiar with the matter said. Its shares jumped as much as 10 percent.

The lender, which has a market value of about $2 billion, has begun reaching out to potential buyers, the people said, asking not to be identified as the deliberations are private. The talks are at an early stage and no final decisions have been made. A representative for the Charlotte, North Carolina-based bank declined to comment.

Capital Bank is one of the lenders founded by investors to take advantage of the upheaval after the collapse of the U.S. housing market. Led by Gene Taylor, a former head of corporate and investment banking at Bank of America Corp., it bought three failed lenders in 2010, then added a small North Carolina company called Capital Bank and took its name. Its stock has more than doubled since the firm went public in 2012, and climbed 9.2 percent to $44.66 at 10:08 a.m. in New York.

Former Bank of America Chief Executive Officer Hugh McColl Jr. and Chief Financial Officer Marc Oken were among the investors who initially backed the startup company. Christopher Marshall, Capital Bank’s CFO, was also a high ranking Bank of America executive.

Capital Bank operates in the U.S. Southeast, with about 200 branches in Florida, Tennessee, Virginia and the Carolinas, according to its website. The lender completed a deal to buy CommunityOne Bancorp last year, valued at about $350 million, which gave it additional branches in North Carolina.