Carolina Alliance Bank said its earnings increased almost 11 percent during the second quarter.
The Spartanburg-based bank reported Monday its net income rose to $2.1 million for the quarter ending June 30, compared with $1.9 million during the same period of 2016.
Carolina Alliance attributed the increase to non-interest income and decreased income tax expense, partially offset by an increase in its provision for loan losses, and a slight decrease in net interest income.
“We are focused on quality loan growth and managing our net interest margin,” said John Kimberly, president and CEO of Carolina Alliance, in a statement. “Both have been impacted by challenging market interest rates on loans and deposits and competition. Our non-interest income has increased this year and that served to offset the slight decrease in net interest income we experience in the first half of 2017 compared to the same period last year.”
The bank said its gross loans increased almost 8 percent to $510.8 million during the quarter, compared with $475.3 million during the same quarter a year ago.
Its total assets increased more than 6 percent to $673.1 million during the second quarter, compared with $633.5 million during the same quarter of the previous year.
Total deposits increased more than 3 percent to $544.2 million during the quarter, compared with $527.1 million during the second quarter of 2016.
Carolina Alliance said its total shareholder equity was $75.9 million, or 11.3 percent, for the quarter, compared with $70.1 million, or 11.1 percent, during the same quarter of the prior year.
The bank said its book value per common share was $11.11 as of June 30, compared with $10.74 as of June 30, 2016.
Carolina Alliance said it remained “well capitalized,” the highest of the five regulatory standards that define an institution’s capital strength.
The bank reported its non-performing assets as of June 30 were $4.7 million, or less than 1 percent of its total assets, compared with $2.5 million as of the same date of the previous year.
Its allowance for loan losses stood at $5.2 million for the quarter, or about 1 percent of its gross loans.
“Our board continues to believe that asset growth is the key to increasing earnings and the creation of value for shareholders,” said Terry Cash, chairman of Carolina Alliance, in a statement. “We are pleased with the 7.5 percent loan growth over the past 12 months in furtherance of our growth goals.”
For more information, visit: www.carolinaalliancebank.com.