Carolina Alliance Corporation reports financial results for first quarter 2018
SPARTANBURG, S.C.-April 26, 2018 – CAB Financial Corporation (OTCQX: CABF) (the “Corporation”), holding company for Carolina Alliance Bank, today reported 2018 first quarter consolidated financial results. Net income was $1.1 million, or $0.15 per diluted common share, for the three months ended March 31, 2018 as compared to net income of $1.0 million, or $0.14 per diluted common share, for the three months ended March 31, 2017.
Gross loans and leases increased by $44.7 million to $544.5 million on March 31, 2018 from $499.8 million on March 31, 2017, and total assets increased by $30.0 million to $699.4 million at March 31, 2018 from $669.4 million at March 31, 2017. Total deposits increased to $569.7 million on March 31, 2018 from $548.3 million on March 31, 2017, an increase of $21.4 million.
“The momentum from late 2017 carried into the first quarter of 2018 and is reflected in our solid loan growth,” said John Kimberly, President and Chief Executive Officer. “We closed the first quarter with loan balances reflecting an annualized increase of nearly 14% over balances at the end of 2017. While we are pleased with those results, we remain vigilant against the potential of net interest margin compression from the possibility of deposit costs increasing at a faster pace than loan yields in the current rising rate environment.”
Total shareholders’ equity was 11.1% and 10.9% of total assets, or $77.6 million and $73.0 million, as of March 31, 2018 and 2017, respectively. Book value per common share was $10.79 as of March 31, 2018 compared to $10.34 as of March 31, 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 strength.
Non-performing assets were $2.8 million, or 0.39% of total assets, at March 31, 2018 as compared to $4.3 million, or 0.64% of total assets, at March 31, 2017.
At March 31, 2018, the allowance for loan and lease losses stood at $5.5 million, which is 1.01% of gross loans. Net loan recoveries for the three months ended March 31, 2018 were $99,145.