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SPARTANBURG, S.C., Aug. 08, 2018 (GLOBE NEWSWIRE) -- CAB Financial Corporation (OTCQX: CABF) (the “Corporation”), holding company for Carolina Alliance Bank, today reported its second quarter 2018 consolidated financial results. Net income was $2.3 million, or $0.31 per diluted common share, for the six months ended June 30, 2018, as compared to net income of $2.1 million, or $0.29 per diluted common share, for the six months ended June 30, 2017. For the three months ended June 30, 2018, net income was $1.2 million, or $0.16 per diluted common share, as compared to $1.1 million, or $0.15 per diluted common share, for the three months ended June 30, 2017.
Gross loans and leases increased by $56.2 million to $567.0 million on June 30, 2018 from $510.8 million on June 30, 2017, and total assets increased by $57.6 million to $730.7 million at June 30, 2018 from $673.1 million at June 30, 2017. Total deposits increased to $599.7 million on June 30, 2018 from $544.2 million on June 30, 2017, an increase of $55.5 million.
“Loan growth continued at a pace similar to what we experienced in the first quarter,” said John Kimberly, President and Chief Executive Officer. “Outstanding loan balances have grown about 15% on an annualized basis so far this year. The increase in loan balances and their average rates this year have served to offset the impact of the increase in deposit rates we experienced in this current rising rate environment.”
Total shareholders’ equity was 10.8% and 11.3% of total assets, or $78.9 million and $75.9 million, as of June 30, 2018 and 2017, respectively. Book value per common share was $10.96 as of June 30, 2018, compared to $10.58 as of June 30, 2017. 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 position.
Non-performing assets were $2.7 million, or 0.37% of total assets, at June 30, 2018, as compared to $4.7 million, or 0.69% of total assets, at June 30, 2017.
At June 30, 2018, the allowance for loan and lease losses stood at $5.7 million, which is 1.00% of gross loans. Net loan recoveries for the six months ended June 30, 2018 were $102,164.
“We are pleased with the growth we are experiencing,” said Terry Cash, Chairman. “We believe that asset growth is the key to increased profitability. Loan growth and managing our net interest margin are our top priorities at the present time.”
For a copy of the letter to shareholders reporting in further detail our second quarter 2018 financial results, please go to our website at www.carolinaalliancebank.com, select the “About” link located at the top of the homepage, then scroll down to see “REVIEW INVESTOR RELATIONS” and select “Learn More.” For other information about CAB Financial or 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 an economic downturn nationally or in the local markets we serve; competitive pressures among depository and other financial institutions; the rate of delinquencies and amount of charge-offs; the level of allowance for loan loss; the rates of loan growth or adverse changes in asset quality in the bank’s loan portfolios; and changes in the U.S. legal and regulatory framework, including the effect of 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.
John D. Kimberly