SPARTANBURG, S.C., Nov. 09, 2015 (GLOBE NEWSWIRE) -- Carolina Alliance Bank (OTCQX:CRLN) today reported to its shareholders its third quarter 2015 financial results. Net income available to common shareholders of $1.2 million, or $0.25 per diluted common share, was reported for the nine months ended September 30, 2015, compared to net income available to common shareholders of $5.6 million, or $1.43 per diluted common share, for the nine months ended September 30, 2014. This $4.4 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 (“Forest Commercial”) in April 2014. Partially offsetting this decrease in earnings were increased core earnings from the addition of earning assets from the merger with Forest Commercial. The results reported as of September 30, 2015 do not reflect the previously announced merger with PBSC Financial Corporation and Pinnacle Bank of South Carolina (“Pinnacle”), which occurred on October 3, 2015.
Gross loans and leases increased by $27.0 million to $350.3 million at September 30, 2015 from $323.3 million at September 30, 2014. Total assets increased by $27.8 million to $444.3 million at September 30, 2015 from $416.5 million at September 30, 2014. Total deposits increased to $360.5 million on September 30, 2015 from $345.5 million on September 30, 2014, an increase of $15.0 million.
“Our operating focus for the remainder of the year is the continued integration of Pinnacle’s operations into Carolina Alliance, increasing the growth rate of loans, and maintaining our net interest margin,” said John S. Poole, Carolina Alliance Chief Executive Officer. “We also are getting to know the new customers and market areas brought in by Pinnacle.”
Total shareholders’ equity at September 30, 2015 was $53.6 million, or 12.1% of total assets. Book value per common share was $10.65 as of September 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.
“With the Pinnacle merger substantially completed, we can move on to the task of developing our presence throughout our expanded footprint,” said Chairman of the Board of Directors Terry Cash. “The merger positions us to better serve all our communities through our higher lending limit, diverse product offerings, and an expanded team of talented bankers.”
Non-performing assets as a percentage of total assets at September 30, 2015 decreased slightly to 0.68% from a year prior at 0.74%. Non-performing assets were $3.0 million at September 30, 2015, as compared to $3.1 million at September 30, 2014.
At September 30, 2015, the allowance for loan losses stood at $4.4 million, which is 1.25% of gross loans. Net loans charged off for the nine months ended September 30, 2015 totaled approximately $241,000, which represents 0.07% of gross loans.
“We are very pleased with both our mortgage and our leasing operations, which offer additional opportunities for income generation to complement our loan portfolio,” said John Kimberly, Carolina Alliance President. “With each merger, we have tried to embrace the unique products and services that have been proven to work well at the individual institutions. This approach should result in a blended bank that offers the very best options for both its customers and its shareholders as well.”
For a copy of the letter to shareholders reporting in further detail our third 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; 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.
CONTACTS: John S. Poole (864) 542-2615 John D. Kimberly (828) 255-5711
Source:Carolina Alliance Bank