Carolina Alliance Reports Its Second Quarter Results
August 3, 2015
SPARTANBURG, SC – Carolina Alliance
Bank (OTCQX:CRLN) 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.
