Spartanburg-based CAB Financial Corp., the holding company for Carolina Alliance Bank, said Monday, Feb. 12, its earnings increased 70 percent during the fourth quarter.
The company reported its net income was $1.7 million as of Dec. 31, compared with $1 million during the same quarter of 2016.
For the year, CAB said its net income for 2017 was $4.7 million, a nearly 15 percent increase compared with $4.1 million during the previous year.
CAB said it received a $700,000 benefit related to the revaluation of its deferred tax liability as a result of the Tax Cuts and Jobs Act.
“We had a great year in terms of loan and core deposit growth,” said John Kimberly, president and CEO of Carolina Alliance Bank, in a statement. “However, net interest margin compression suppressed core earnings growth. Our focus for 2018 is loan growth and protecting our margin against further erosion from changing market conditions, particularly increases in short-term rates that are widely predicted in the coming year.”
CAB said gross loans increased by more than 6 percent to $526.7 million during the year, compared with $495.2 million in 2016.
Its total assets increased by almost 7 percent to $685.3 million in 2017, compared with $642.9 million during the previous year.
Total deposits increased more than 7 percent to $567 million during the year, compared with $527.6 million during 2016.
CAB reported its nonperforming assets totaled $2.9 million for 2017, a 38 percent increase compared with $2.1 million during the prior year.
The bank said its capital levels continued to exceed the levels required by regulatory standards to be classified as “well capitalized,” the highest of the five capital categories used to describe an institution’s capital strength.
“We believe that recent additions in key lending positions will play a significant role in achieving our growth goals,” said Terry Cash, CAB’s chairman, in a statement. “Also, with the completion of our reorganization into a bank holding company in the fourth quarter, capital management and other strategic possibilities have opened up for the company, and we will be exploring opportunities to capitalize on this new structure.”
