By David DeBord / Fortune – Jan 23, 2017 09:24:18Capital Bank Online banking, one of the largest banks in the U.S., will add $3 billion to its online banking business and is expected to close about a third of its online lending businesses in 2019, according to a person familiar with the matter.
The acquisition of Capital Bank was first reported by Reuters earlier this month, but the person said it wasn’t immediately clear whether the bank would keep the $3 million in new cash that the company added in 2019.
The company has had a rocky start to the financial year as its online loans fell short of expectations.
In the first quarter, Capital Bank’s loan volume fell by $7.9 billion, the first time it’s fallen since 2011, according the U,S.
Department of Housing and Urban Development.
That’s also the largest quarterly decline since 2009.
It has also struggled to turn its $10 billion in loans to businesses into a profit.
Capital Bank made a loss of $4.6 billion on $13 billion in total loans in the fourth quarter, according bank data.