CresCom Bank parent company’s income down year over year for first half

By Ashley Barker
Published July 22, 2014

Carolina Financial Corp.’s net income during the first half of 2014 was nearly $6 million less than what it reported in the same time frame last year.

The corporation is the parent company of Charleston-based CresCom Bank, which also owns Atlanta-based Crescent Mortgage Co.

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For the second quarter, Carolina Financial Corp. reported a net income of $2.2 million, or 57 cents a share, which is down from $5.5 million, or $1.40 per share, in the second quarter of 2013, the corporation reported.

The net income for the first six months of 2014 totaled $4.2 million, or $1.07 per share, which is also down from $10 million last year, or $2.53 per share.

Excluding Crescent Mortgage Co., the bank’s net income was $1.8 million in the second quarter and $3.5 million in the first half of 2014. Last year’s net income without the mortgage company was $2 million and $2.4 million for the second quarter and first half of 2013, respectively, the corporation reported.

Crescent Mortgage Co. reported a net income of $7.8 million at the end of the first half of 2013 and only a $1.1 million net income at the half way point of 2014. That decline in income “can be attributed to the significant decline in mortgage applications, which are at almost 20-year lows,” the corporation said in a statement.

As of June 30, the corporation’s book value per common share was $22.95, which is an increase from June 30, 2013 when its value was $19.51.

The corporation’s board of directors declared a quarterly cash dividend of 5 cents per share for its common stock. The dividend will be payable on Oct. 8 to shareholders.

One of the corporation’s primary goals for 2014 is to increase CresCom Bank’s earnings without help from Crescent Mortgage Co., according to Carolina Financial Corp. President and CEO Jerry Rexroad.

“We remain focused on increasing bank profitability, growing core deposits, increasing cross-sale opportunities, improving asset quality and growing our loan portfolio,” Rexroad said in a statement. “Management and the board of directors believe that with our sustained focus, commitment and action, we will grow and thrive in the current economic environment.”

CresCom Bank’s core deposits — including checking, savings and money market deposits — went up $26.6 million during the second quarter. The number of bank checking accounts also increased by about 17% in the first half of the year.

Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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