Spartanburg-based Carolina Alliance Bank said Wednesday its earnings increased nearly threefold in 2016.
The bank reported its net income for the year was $4.1 million, a more than 127 percent increase compared with $1.8 million in 2015.
Carolina Alliance attributed the increase to net interest income on increased earning assets from its merger with PBSC Financial Corp. and Pinnacle Bank of South Carolina, which closed in October 2015.
“We finished 2016 on a strong note, especially in terms of commercial loan growth and mortgage loan originations,” said John Kimberly, CEO of Carolina Alliance, in a statement. “The trends in the latter part of 2016 give us optimism as we head into 2017.”
The bank said its gross loans increased by about 4.5 percent to $495.2 million for the year, compared with $473.9 million during the previous year.
Its total assets grew 5.5 percent to $642 million in 2016, compared with $608.3 million during 2015.
Total deposits were $527.6 million for the year, about a 6.4 percent increase compared with $495.8 million during the prior year.
Carolina Alliance said its non-performing assets decreased almost 63 percent to $2.1 million during the past year, compared with $5.6 million in 2015.
Its allowance for loan losses was $5 million in 2016 and recoveries of loans charged off exceeded charge-offs by $66,0000, the bank said.
Carolina Alliance said it remained “well capitalized,” the highest of the five regulatory standards used to define an institution’s capital strength.
On Jan. 6, the bank announced its plan to form a holding company that has yet to be named. The bank said its shareholders should receive a proxy statement that will include the proposal for the formation of the holding company in the mail during the second quarter. Its annual meeting will be held sometime in May.
“We are very pleased with the year’s results and we continue to look toward the bank’s future,” said Terry Cash, chairman of Carolina Alliance, in a statement. “We recently made the decision to establish a holding company to further position the bank for growth and success.”
For more information, visit: www.carolinaalliancebank.com.