NEW YORK (TheStreet) -- Capital Bank Financial  (CBF) reported a year-over-year increase in net income in the company's first-quarter earnings report after the market closed on Thursday.

The company reported a 120% year-over-year increase in net income to $11.4 million, or 22 cents per diluted share, from net income of $5.8 million, or 10 cents per diluted share. Core net income totaled $12.4 million, or 24 cents per diluted share, a 33% year-over-year increase from $9.9 million, or 18 cents per diluted share.

"Our earnings, expenses, yields, and margin were all in line with our expectations and our previous guidance," said Chairman and CEO Gene Taylor in a statement. "While we have yet to see the benefits of the strengthening southeastern economy, we don't see any obstacles to executing on our business plans through the balance of 2014."

The stock closed up 1.03% to $24.45 on Thursday. More than 126,000 shares changed hands, which barely edged the average volume of 125,682.

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Separately, TheStreet Ratings team rates CAPITAL BANK FINANCIAL CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CAPITAL BANK FINANCIAL CORP (CBF) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 128.9% when compared to the same quarter one year prior, rising from $5.33 million to $12.21 million.
  • The gross profit margin for CAPITAL BANK FINANCIAL CORP is currently very high, coming in at 88.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.48% is above that of the industry average.
  • Net operating cash flow has significantly increased by 92.99% to -$2.59 million when compared to the same quarter last year. Despite an increase in cash flow of 92.99%, CAPITAL BANK FINANCIAL CORP is still growing at a significantly lower rate than the industry average of 385.82%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.1%. Since the same quarter one year prior, revenues slightly dropped by 7.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, CAPITAL BANK FINANCIAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • You can view the full analysis from the report here: CBF Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.