HOUSE_OVERSIGHT_014328.jpg
1.5 MB
Extraction Summary
1
People
3
Organizations
0
Locations
3
Events
2
Relationships
2
Quotes
Document Information
Type:
Financial research report / conference summary
File Size:
1.5 MB
Summary
This document is a Bank of America Merrill Lynch financial analysis report from November 17, 2016, concerning Capital Bank Financial (CBF). It summarizes investor polls and management presentations from a conference, focusing on financial targets (ROA), the merger with CommunityOne, and capital deployment strategies. Despite the user's prompt, this document contains no information whatsoever related to Jeffrey Epstein or any of his known associates or activities.
People (1)
| Name | Role | Context |
|---|---|---|
| Gene Taylor | CEO |
CEO of Capital Bank Financial (CBF). He highlighted organic growth opportunities and limited expense growth for the b...
|
Organizations (3)
| Name | Type | Context |
|---|---|---|
| Capital Bank Financial (CBF) | ||
| Bank of America Merrill Lynch | ||
| CommunityOne (COB) |
Timeline (3 events)
2016-11-17
2016 Future of Financials Conference, where analysis of Capital Bank Financial was presented.
Not specified
Gene Taylor
CBF management
By 2017 year-end
Capital Bank Financial (CBF) expected to fully recognize cost savings related to the CommunityOne merger.
Not specified
Capital Bank Financial (CBF)
CommunityOne (COB)
mid-1Q17
Systems conversion related to the CommunityOne merger is slated to occur.
Not specified
Capital Bank Financial (CBF)
Relationships (2)
Capital Bank Financial (CBF)
→
Merger
→
CommunityOne (COB)
The document discusses the 'CommunityOne merger' and the integration of COB by CBF.
The text identifies 'CEO Gene Taylor' in the context of discussing CBF's financial targets and strategy.
Key Quotes (2)
"management sounded confident that there would be little incremental expense growth as the bank has already built out leverageable systems."Source
HOUSE_OVERSIGHT_014328.jpg
Quote #1
"CBF reiterated their expectations to fully recognize the 39% of cost savings related to the CommunityOne merger by 2017 year-end."Source
HOUSE_OVERSIGHT_014328.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (2,276 characters)
Chart 20: With regard to capital deployment, what would you like management to focus on?
70%
60%
50%
40%
30%
20%
10%
0%
57%
Increase dividend payout
29%
Increase the pace of share buybacks
14%
Continue with current capital management strategy
Source: BofA Merrill Lynch Global Research
70%
60%
50%
40%
30%
20%
10%
0%
57%
Increase dividend payout
29%
Increase the pace of share buybacks
14%
Continue with current capital management strategy
Source: BofA Merrill Lynch Global Research
Capital Bank Financial (CBF), C-1-7, Buy
■ Investor expectations for CBF to achieve its ROA target increased YoY. Of the audience polled, 75% believe CBF to achieve its 1.1% ROA by YE17. This compares to 67% of the audience polled last year. CEO Gene Taylor highlighted both the organic growth opportunities and limited expense growth for the bank to achieve its ROA target. Although the bank is expected to cross $10bn in assets next year, management sounded confident that there would be little incremental expense growth as the bank has already built out leverageable systems.
■ Investor expectations for CBF to achieve its ROA target increased YoY. Of the audience polled, 75% believe CBF to achieve its 1.1% ROA by YE17. This compares to 67% of the audience polled last year. CEO Gene Taylor highlighted both the organic growth opportunities and limited expense growth for the bank to achieve its ROA target. Although the bank is expected to cross $10bn in assets next year, management sounded confident that there would be little incremental expense growth as the bank has already built out leverageable systems.
Chart 21: What do you consider as the single most important catalyst for CBF shares in 2017?
60%
50%
40%
30%
20%
10%
0%
50%
Achieving its profitability targets
42%
A bank acquisition
0%
Acceleration in loan growth
0%
Increasing capital return
8%
Higher interest rates
Source: BofA Merrill Lynch Global Research
60%
50%
40%
30%
20%
10%
0%
50%
Achieving its profitability targets
42%
A bank acquisition
0%
Acceleration in loan growth
0%
Increasing capital return
8%
Higher interest rates
Source: BofA Merrill Lynch Global Research
Chart 22: Do you think CBF will achieve its 1.1% core ROA target by YE17?
80%
70%
60%
50%
40%
30%
20%
10%
0%
75%
Yes
25%
No
Source: BofA Merrill Lynch Global Research
80%
70%
60%
50%
40%
30%
20%
10%
0%
75%
Yes
25%
No
Source: BofA Merrill Lynch Global Research
■ Expectations around COB merger remain intact. CBF reiterated their expectations to fully recognize the 39% of cost savings related to the CommunityOne merger by 2017 year-end. (Systems conversion is slated for mid-1Q17, with initial savings expected to be realized starting 2Q17). During their presentation, management introduced the source of these savings (new disclosure), with the majority expected to come from executive management compensation (23%) and back-office functions (33%).
■ Capital deployment remains a key catalyst for the stock. Management agreed with the 80% of the audience polled that believe the pace of M&A activity will pick YoY (slightly better than last year's forward expectations). While management noted that it remains focused on integrating COB, and acknowledged that it remains
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2016 Future of Financials Conference | 17 November 2016
2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
Merrill Lynch
HOUSE_OVERSIGHT_014328
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