SPARTANBURG, S.C., May 06, 2016 (GLOBE NEWSWIRE) -- Carolina Alliance Bank (OTCQX:CRLN) today reported its first quarter 2016 financial results. For the quarter ended March 31, 2016, net income available to common shareholders was $919,743, or $0.14 per diluted common share, compared to net income available to common shareholders of $508,055, or $0.11 per diluted common share, for the quarter ended March 31, 2015. This $411,688 increase in earnings was largely attributable to increased core earnings due to the increase in earning assets and non-interest income from the merger with PBSC Financial Corporation and Pinnacle Bank of South Carolina (“Pinnacle”) which closed in October 2015, and to a lesser extent to a decrease in the provision for loan and lease losses.
“We continue to be pleased with the results achieved to date from the combination of Carolina Alliance and Pinnacle,” said Terry Cash, Chairman of the Board of Directors. “We believe that we are just beginning to see the financial benefits of the combined companies.”
Gross loans and leases increased by $136.7 million to $475.5 million on March 31, 2016 from $338.8 million on March 31, 2015. Of the increase, $116.1 million is attributable to Pinnacle loans added as of the merger date. Total assets increased to $630.5 million at March 31, 2016 from $430.1 million at March 31, 2015; of the $200.4 million increase, $147.8 million was attributable to the Pinnacle merger. Total deposits increased to $524.0 million on March 31, 2016 from $350.0 million on March 31, 2015, an increase of $174.0 million. Pinnacle’s deposits totaled $121.6 million as of the merger date.
Total shareholders’ equity on March 31, 2016 was $68.4 million, or 10.8% of total assets, compared to total shareholders’ equity of $53.0 million, or 12.3% of total assets, on March 31, 2015. Book value per common share was $10.49 as of March 31, 2016 compared to $10.03 as of March 31, 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.
Non-performing assets as a percentage of total assets at March 31, 2016 decreased to 0.55% from a year prior at 0.77%. Non-performing assets were $3.4 million at March 31, 2016, as compared to $3.3 million at March 31, 2015. The slight increase was primarily as a result of non-performing assets acquired in connection with the Pinnacle merger.
At March 31, 2016, the allowance for loan and lease losses stood at $4.7 million, which is 1.00% of gross loans. Loans charged off for the quarter ended March 31, 2016 were negligible.
“First quarter results reveal the positive impact of the Pinnacle merger. We are particularly pleased with the growth in mortgage income that is attributable to the strength of the mortgage lending program that came with Pinnacle,” said John S. Poole, Carolina Alliance Chief Executive Officer. “We still face intense local competition and the specter of interest margin compression in the current state of the economy, but we are continuing to focus on quality customer service and achieving deeper penetration in the markets we serve to drive the asset growth we need for increased earnings.”
For other information about Carolina Alliance, please call (864) 208-BANK (2265) or visit our website.
Note:
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 integration of the businesses of Carolina Alliance and Pinnacle 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.