CAB Financial Corporation reports third quarter 2017 results of Carolina Alliance Bank
October 31, 2017
SPARTANBURG, SC – CAB Financial Corporation reported third quarter 2017 financial results of its wholly-owned subsidiary, Carolina Alliance Bank. The Corporation became the holding company of the Bank on October 23, 2017.
Net income available to common shareholders was $934,000, or $0.13 per diluted common share, for the three months ended September 30, 2017 as compared to net income available to common shareholders of $1.2 million, or $0.18 per diluted common share, for the quarter ended September 30, 2016. Net income available to common shareholders of $3.0 million, or $0.42 per diluted common share, was reported for the nine months ended September 30, 2017, compared to net income available to common shareholders of $3.1 million, or $0.45 per diluted common share, for the nine months ended September 30, 2016. The year-to-date decrease in earnings of approximately $95,000 was largely attributable to an increase in the provision for loan losses and decreased net interest income due to net interest margin compression, partially offset by increased non-interest income and decreased income tax expense.
Gross loans and leases increased by $39.7 million to $515.3 million on September 30, 2017 from $475.6 million on September 30, 2016, and total assets increased by $59.5 million to $685.9 million at September 30, 2017 from $626.4 million at September 30, 2016. Total deposits increased to $557.3 million on September 30, 2017 from $517.6 million on September 30, 2016, an increase of $39.7 million.
Total shareholders’ equity was 11.2% and 11.3% of total assets, or $76.9 million and $71.1 million, as of September 30, 2017 and 2016, respectively. Book value per common share was $10.69 as of September 30, 2017 compared to $10.34 as of September 30, 2016. 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.
Non-performing assets as a percentage of total assets at September 30, 2017 remained low compared to peers at 0.46% of total assets, or $3.2 million, as compared to 0.40% of total assets, or $2.5 million, at September 30, 2016.
At September 30, 2017, the allowance for loan and lease losses stood at $5.4 million, which is 1.04% of gross loans. Loans charged off for the nine months ended September 30, 2017 were negligible.
