SPARTANBURG, S.C., Oct. 30, 2018 (GLOBE NEWSWIRE) -- CAB Financial Corporation (OTCQX: CABF) (the “Corporation”), holding company for Carolina Alliance Bank, today reported its third quarter 2018 consolidated financial results. Net income was $3.6 million, or $0.49 per diluted common share, for the nine months ended September 30, 2018, as compared to net income of $3.0 million, or $0.42 per diluted common share, for the nine months ended September 30, 2017. For the three months ended September 30, 2018, net income was $1.3 million, or $0.18 per diluted common share, as compared to $0.9 million, or $0.13 per diluted common share, for the three months ended September 30, 2017.
Gross loans and leases increased by $62.5 million to $577.8 million on September 30, 2018 from $515.3 million on September 30, 2017, and total assets increased by $58.7 million to $744.6 million at September 30, 2018 from $685.9 million at September 30, 2017. Total deposits increased to $618.3 million on September 30, 2018 from $557.3 million on September 30, 2017, an increase of $61.0 million.
“We are very pleased with our strong performance this year, both in loan growth, which has continued at a steady pace, and interest rate management in a challenging rising rate environment,” said John Kimberly, President and Chief Executive Officer. “In addition, we are excited about our upcoming merger with Park National Corporation, which was announced in September. We believe this merger will offer enhanced opportunities and value for our customers, shareholders, and communities.”
Total shareholders’ equity was 10.9% and 11.2% of total assets, or $81.1 million and $76.9 million, as of September 30, 2018 and 2017, respectively. Book value per common share was $10.99 as of September 30, 2018, compared to $10.69 as of September 30, 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 position.
Non-performing assets were $2.9 million, or 0.39% of total assets, at September 30, 2018, as compared to $3.2 million, or 0.46% of total assets, at September 30, 2017.
The allowance for loan and lease losses stood at $5.7 million, or 0.98% of gross loans at September 30, 2018 as compared to $5.4 million, or 1.04% of gross loans at September 30, 2017. Net loan charge-offs for the nine months ended September 30, 2018 were $46,265 as compared to net loan recoveries of $18,966 for the nine months ended September 30, 2017.
“We believe the upcoming merger with Park National will provide a stronger and broader foundation from which to support our communities,” said Terry Cash, Chairman. “We look forward to being able to better serve our customers through additional product offerings and higher lending limits, while retaining local management and staying true to the Carolina Alliance mission.”
For a copy of the letter to shareholders reporting in further detail our third quarter 2018 financial results, please go to our website at www.carolinaalliancebank.com, select the “About” link located at the top of the homepage, then scroll down to see “REVIEW INVESTOR RELATIONS” and select “Learn More.” For other information about CAB Financial or Carolina Alliance, please call (864) 208-BANK (2265) or visit our website.
Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as an economic downturn nationally or in the local markets we serve; competitive pressures among depository and other financial institutions; the rate of delinquencies and amount of charge-offs; the level of allowance for loan loss; the rates of loan growth or adverse changes in asset quality in the bank’s loan portfolios; and changes in the U.S. legal and regulatory framework, including the effect of financial reform legislation on the banking industry, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Forward-looking statements in this release also include statements regarding CABF Financial’s and Park National’s expectations regarding the benefits of the merger, and when the merger will be completed. The accuracy of such forward-looking statements could be affected by factors beyond CABF Financial’s and Park National’s control, including, but not limited to, difficulties experienced in the integration of the businesses of CABF Financial and Park National, delays in the receipt of regulatory or shareholder approvals that must be received before the merger may be completed, and delays in the satisfaction or waiver of other remaining conditions to the consummation of the merger.
John D. Kimberly