SPARTANBURG, S.C., Aug. 3, 2015 (GLOBE NEWSWIRE) -- Carolina Alliance Bank (OTCQX:CRLN) today reported to its shareholders its second quarter 2015 financial results. Net income available to common shareholders of $0.8 million, or $0.18 per diluted common share, was reported for the six months ended June 30, 2015, compared to net income available to common shareholders of $4.8 million, or $1.32 per diluted common share, for the six months ended June 30, 2014. This $4.0 million decrease in earnings was largely attributable to the non-recurring non-operating net bargain purchase gain of $4.4 million recognized in 2014 related to the merger with Forest Commercial Bank. Partially offsetting this decrease were increased core earnings from the increase in earning assets from the merger with Forest Commercial.
Gross loans and leases increased by $27.6 million to $341.0 million at June 30, 2015 from $313.4 million at June 30, 2014. Total assets increased by $22.4 million to $432.8 million at June 30, 2015 from $410.4 million at June 30, 2014. Total deposits increased to $355.9 million on June 30, 2015 from $340.3 million on June 30, 2014, an increase of $15.6 million.
"Our core bank is performing soundly, with our leasing operations in both states particularly thriving," said John S. Poole, Carolina Alliance Chief Executive Officer. "Our commercial bankers have embraced the leasing program and support it by seeking and referring lease opportunities, and our leasing personnel are committed to excellent customer service."
Total shareholders' equity at June 30, 2015 was $52.9 million, or 12.2% of total assets. Book value per common share was $10.49 as of June 30, 2015. The bank's capital levels continue to exceed the levels required by regulatory standards to be classified as "well capitalized," which is the highest of the five regulator-defined capital categories used to describe an institution's capital strength.
"We believe the upcoming merger with Pinnacle Bank will further strengthen our balance sheet," said Chairman of the Board of Directors Terry Cash. "The merger also will provide a stronger and broader foundation from which to serve our communities. We look forward to the enhanced ability to serve our customers, with a higher lending limit, diverse product offerings, and an expanded team of talented bankers."
Non-performing assets as a percentage of total assets at June 30, 2015 decreased slightly to 0.72% from a year prior at 0.79%. Non-performing assets were $3.1 million at June 30, 2015, as compared to $3.2 million at June 30, 2014.
At June 30, 2015, the allowance for loan losses stood at $4.3 million, which is 1.27% of gross loans. Net loans charged off for the six months ended June 30, 2015 totaled $72,000, which represents 0.02% of gross loans.
"We are diligently planning and staging the merger of the two banks planned to occur early in the fourth quarter of this year," said John Kimberly, Carolina Alliance President. "The cooperation and comradery have been impressive, and we look forward to seeing the positive results of this preparation come to fruition."
For a copy of the letter to shareholders reporting in further detail our second quarter 2015 financial results, please see "Shareholder Communications" under the "About Us" tab located on our website at www.carolinaalliancebank.com. For other information about Carolina Alliance, please call (864) 208-BANK (2265) or visit our website.
Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Carolina Alliance and Pinnacle may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected timeframes; disruption from the merger may make it more difficult to maintain relationships with clients, associates or suppliers; the required governmental approvals of the merger may not be obtained on the proposed terms and schedule; an economic downturn nationally or in the local markets we serve; competitive pressures among depository and other financial institutions; the rate of delinquencies and amounts of charge-offs; the level of allowance for loan loss; the rates of loan growth or adverse changes in asset quality in the banks' loan portfolios; and changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
CONTACT: John S. Poole (864) 542-2615 John D. Kimberly (828) 255-5711
Source:Carolina Alliance Bank