CAB Financial Corporation Reports its 2018 Results
SPARTANBURG, S.C. (February 7) CAB Financial Corporation (OTCQX: CABF) (the “Corporation”), holding company for Carolina Alliance Bank (the “Bank”), today reported 2018 annual and fourth quarter consolidated financial results. Net income available to common shareholders was $0.7 million, or $0.10 per diluted common share, for the three months ended December 31, 2018 as compared to net income available to common shareholders of $1.7 million, or $0.23 per diluted common share, for the three months ended December 31, 2017. Net income available to common shareholders of $4.3 million, or $0.58 per diluted common share, was reported for the year ended December 31, 2018, compared to net income of $4.7 million, or $0.65 per diluted common share, for the year ended December 31, 2017.
Net interest income increased by approximately $1.8 million in year ended December 31, 2018 due to an 11% increase in gross loans and leases in 2018. In addition, in 2018 the Corporation realized recoveries totaling almost $266,000 on real estate which had been foreclosed in previous years. These positives were partially offset by approximately $1.5 million in increased personnel and operating costs in 2018 and an increase in the provision for loan losses of approximately $469,000. Two factors contributing to the increased provision were the significant loan growth experienced in 2018 and additional provisioning in the fourth quarter related to a potential loss on one commercial loan relationship. The year ended December 31, 2018 also included merger expenses of approximately $351,000 relating to the pending merger with Park National Corporation. Finally, net income for the three months and year ended December 31, 2018 decreased by approximately $700,000 due to the income tax benefit recognized in the fourth quarter of 2017 as a result of the Tax Cuts and Jobs Act enacted late in 2017.
Gross loans and leases increased by $67.5 million to $594.2 million at December 31, 2018 from $526.7 million at December 31, 2017, and total assets increased by $75.2 million to $760.5 million at December 31, 2018 from $685.3 million at December 31, 2017. Total deposits increased to $634.5 million at December 31, 2018 from $567.0 million at December 31, 2017, an increase of $67.5 million.
“Last year was a truly remarkable year for our company, both in terms of financial performance and strategic direction,” said John Kimberly, the Corporation’s President and Chief Executive Officer. “We closed the year with terrific momentum that has carried through the start of the New Year and believe that the pending merger with Park National Corporation will only further our financial success and enhance our ability to serve customers in the communities in which we operate. We look forward to joining Park National’s family of affiliate banks early in the second quarter of this year.”