Quarterly Report - Fourth Quarter North Carolina

Q u a r t e r ly r e p o r t f o r
Carolina Alliance Bank
S h a r e h o l d e r s & C u s to m e r s
North Carolina Edition
December 2014
Left: 117th Annual Asheville Chamber of Commerce Meeting
Right: Park Ridge Health Wellness on Wheels Bus
Our staff
wishes you
a Merry
Christmas,
Happy Holidays
& a Prosperous
2015!
A TRUE Community Bank
Board of Directors of Carolina Alliance Bank. We just don’t say we’re a community bank … we live it.
Carolina
Alliance bank
Board of Directors
“At Carolina Alliance our commitment to community means working together with community groups and
Terry L. Cash, Chairman
nonprofits to strengthen the communities in which we are located,” said John Poole, Carolina Alliance Chief
W. Louis Bissette, Jr., Vice Chairman
Throughout the year, non-profits, agencies, organizations and schools across Upstate South Carolina and
Western North Carolina receive valuable services and leadership as donated by the dedicated staff and
Carl R. Bartlett
Executive Officer.
During 2014 the Carolina Alliance staff pulled
Earnings Report Released
Carolina Alliance recently reported to its shareholders its third quarter 2014 financial results.
Net income available to common shareholders of
$5.6 million, or $1.43 per diluted common share,
was reported for the nine months ended September 30, 2014, compared to net income available
to common shareholders of $0.7 million, or
$0.26 per diluted common share, for the nine
months ended September 30, 2013. This $4.9
million increase in earnings was largely attributable to the impact of merger-related accounting, particularly the non-operating net bargain
purchase gain of $4.3 million related to mark-to(continued, page 4)
T. Alexander Evins
Marsha H. Gibbs
together to raise funds and awareness for many
George M. Groome
organizations such as, but not limited to, the
John D. Kimberly, President
United Way of the Piedmont, the United Way
Samuel H. Maw, Jr.
of Asheville & Buncombe County, the March
Susan H. McClinton
of Dimes, the Blue Ridge Humane Society, the
D. Byrd Miller III
Anderson Arts Center and the Oconee Memorial
John S. Poole, Chief Executive Officer
Hospital Foundation.
W. Allen Rogers II
“I am so proud of what our team has accom-
R. Lamar Simpson, Chief Financial Officer,
Chief Operating Officer
plished this year,” said John Kimberly, Carolina
L. Terrell Sovey
Alliance President. “And I also have to thank our
W. Lewis White, Sr.
caring customers for their generosity by making a
purchase or donating their time and/or products.”
This next year promises to be just as exciting.
(continued, page 3)
1
2
3
Community & Staff News
Macy’s Thanksgiving Day Parade
1) Our Hendersonville office recently participated in the Henderson
6) Asheville Branch Supervisor Rebecca Pressley’s son Josh Pressley
County Chamber’s Business Expo. Branch Manager Lisa Parham and
had an eventful Thanksgiving. As a freshman member of Western
Client Services Representative Amanda Arnold manned the bank’s
Carolina University’s band, where he is a drummer, Josh marched in
booth for the event.
the Macy’s Day Parade.
2) Both our Asheville and Hendersonville offices participated in a
The band led the legendary holiday parade and was part of the pa-
food drive for the Manna Food Bank. Shown is staff from our Ashe-
rade’s television broadcast.
ville office including, Client Services Representatives Jamie Johnson
And, taking the band to New York City was bank customer Young
and Matt Whitworth and Asheville Branch Supervisor Rebecca
Transportation. It took Young Transportation 10 buses for the 500
Pressley.
band members and four buses for parents, family and friends.
3) Staff from Asheville and Hendersonville dressed in shades of pink
Hearts & Hammers
for Pink Wednesday on Oct. 15. This day helps to recognize Breast
Cancer Awareness Month, which is October.
4) Our Asheville office recently collected unwrapped toys to benefit
the Eblen-Kimmel Charities St. Nicholas Project Toy Drive. Here’s a
look at the collection box in early December along with Vice President Commercial Banking Officer Steve Jennings.
7) All of our North Carolina offices are excited to be a co-sponsor
of Habitat for Humanity’s Hearts & Hammers House. All staff have
committed to be part of this project and as a show of their dedication, recently signed two 2 x 4 boards to be incorporated in the
house. In November, Senior Vice President Professional Banker and
Mortgage Officer Kelly Davis, Credit Analyst Scott Nesbit and Vice
5) Kelly Davis, Senior Vice President Professional Banker and Mort-
President Retail Banking Officer Leslie Pruitt attended a wall-raising
gage Officer in Asheville, helped make yummy buttermilk pumpkin
celebration at the house. We so are proud to be sponsoring this
pies (72 in all!) for the Thanksgiving meal at Haywood Street Con-
house; be sure to look for more information about this community
gregation Church in Asheville.
event.
7
2 | CAB: Community And Banking
5
4
6
A TRUE Community Bank, continued from page 1
Our North Carolina offices are co-sponsoring the Hearts & Hammers House Habitat for Humanity House. The house was started
in November and will be completed in April. In addition to a donation, bank staff will be onsite building the house. In Spartanburg,
the popular BBQ Luncheon, which is always a sell-out, returns in the spring and promises to be bigger and better than ever. Plus
the yearly Good Friday Bake Sale is always full of delicious homemade goodies prepared by our staff. Proceeds from both the BBQ
Luncheon and Bake Sale benefit the March of Dimes.
As you can see, we like being part of our respective communities; it’s who we are. We use our Facebook page—Carolina Alliance
Bank—and twitter account—CABankNews—to document many of our activities. Be sure and “like” us and follow us so you can
see what all we do.
Top Row: Seneca Customer Appreciation Barbecue; Spartanburg Area Chamber of Commerce Annual Meeting; Golf for the Animals Tournament for
the Blue Ridge Humane Society. Bottom Row: Anderson Ribbon Cutting/Donation to the Anderson Arts Center; Spartanburg March of Dimes.
CAB: Community And Banking | 3
Third Quarter Results, continued from page 1
market adjustments to the Forest Commercial
Bank (“Forest Commercial”) balance sheet as
of the merger date of April 5, 2014. Partially
offsetting this gain were expenses of approximately $0.6 million, which include merger
costs and start-up costs associated with the
bank’s recently opened branches in Seneca
and Anderson, South Carolina.
“We are very pleased with our results to
date. We believe the combination of Carolina
Alliance, Forest Commercial, and Dave McBride Leasing has created a solid foundation
for growth,” said Chairman of the Board of
Directors Terry Cash. “We fully intend to build
on this new foundation to enhance our future
performance.”
Gross loans and leases increased by $145.1
million to $323.3 million on September 30,
2014 from $178.2 million on September 30,
2013. Of the increase, $123.5 million is attributable to Forest Commercial loans added
as of the merger date. Total assets increased
by $172.1 million to $416.5 million at September 30, 2014 from $244.4 million at September 30, 2013. Forest Commercial’s assets
totaled $156.6 million as of the merger date.
Total deposits increased to $345.5 million on
September 30, 2014 from $202.3 million on
September 30, 2013, an increase of $143.2
million. Forest Commercial’s deposits totaled
$128.1 million as of the merger date.
“The excitement that has occurred through-
Protect
Your
Mobile
Device
When
Banking
out 2014 at Carolina Alliance has certainly
continued through the third quarter,” said
John Poole, Carolina Alliance Chief Executive
Officer. “The board of directors and senior
staff are working hard on strategic planning
efforts at several levels to ensure that the
bank remains a solid performer in the future.”
“We are focused on the unified and customer-oriented delivery of products and services
across the recently combined operations,” said
John Kimberly, Carolina Alliance President.
“While our team continues to work on improving systems and processes every day, we are
extremely pleased with our progress to date.”
Total shareholders’ equity on September
30, 2014 was $51.6 million, or 12.4% of
total assets. Book value per common share
was $10.22 as of September 30, 2014. 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 strength.
For a copy of the letter to shareholders
reporting in further detail our third quarter
2014 financial results, please see “Shareholder Communications” under the “About
Us” tab located on our website at www.
carolinaalliancebank.com.
Non-performing assets as a percentage
of total assets at September 30, 2014
increased from a year prior, in part due to
real estate acquired in settlement of loans
of $0.7 million absorbed in the merger.
Non-performing assets were $3.1 million at
September 30, 2014, or 0.74% of total assets, as compared to $1.7 million, or 0.69%
of total assets, at September 30, 2013.
At September 30, 2014, the allowance for
loan losses stood at $3.3 million, which is
1.03% of gross loans. Loans charged off for
the nine months ended September 30, 2014
totaled $0.7 million, which represents 0.21%
of gross loans.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions
could prove to be inaccurate. Therefore, we can give no assurance
that the results contemplated in the forward-looking statements
will be realized. The inclusion of this forward-looking information
should not be construed as a representation by us or any person
that the future events, plans, or expectations contemplated by us
will be achieved. All subsequent written and oral forward-looking
statements concerning us or any person acting on our behalf is
expressly qualified in its entirety by the cautionary statements
above. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events
that occur after the date the forward-looking statements are made.
Your mobile device provides convenient access to your email, bank and social media accounts. Unfortunately,
it can potentially provide the same convenient access for criminals. Carolina Alliance recommends following
these tips to keep your information— and your money—safe.
• Use the passcode lock on your smartphone and other devices.
• Log out completely when you finish a mobile banking session.
• Protect your phone from viruses and malicious software, or malware.
• Avoid storing sensitive information on your mobile device.
• Let Carolina Alliance know if you change your number or lose your mobile device.
• Be aware of shoulder surfers.
• Wipe your mobile device before you donate, sell or trade it.
• Be wary of ads (not from your security provider) claiming that your device is infected.
• Watch out for public Wi-Fi. Try disabling the Wi-Fi and switching to your mobile network.
Report any suspected fraud to Carolina Alliance immediately.
4 | CAB: Community And Banking
Note: Certain statements in this news story 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 the businesses of Carolina Alliance Bank and Forest Commercial Bank may not be integrated successfully or such integration
may take longer to accomplish than expected, the expected cost
savings and any revenue synergies from the merger may not be
fully realized within the expected timeframes, disruption from the
merger may make it more difficult to maintain relationships with
clients, associates, or suppliers, a continued downturn in the economy, competitive pressures among depository and other financial
institutions, the rate of delinquencies and amounts of charge-offs,
the level of allowance for loan loss, the rates of loan growth, or
adverse changes in asset quality in our loan portfolio, and changes
in the U.S. legal and regulatory framework, including the effect of
recent 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.
Customer Spotlight
Stepp’s Hillcrest Orchard
At Stepp’s Hillcrest Orchard there is plenty of apple
goodness to go around. From orchard-farm tours, to
the country store to finding and picking fresh apples,
Stepp’s has it.
For more than 40 years, four generations of the Stepp
family of Hendersonville have been inviting guests to pick their own apples at the family’s 70-acre working
farm and orchard. For many families, visiting Stepp’s family farm has become a yearly tradition.
Others also have noticed - Stepp’s Hillcrest Orchard was highlighted as one of the Nation’s Best Apple
Picking Spots in Destinations Travel Magazine in its October 2014 issue. The farm was one of only 12 pickyour-own orchards selected and the only one in North Carolina.
There are lots of things going on at the farm besides apples. You also can pick your own grapes and pumpkins.
Or, if you prefer, you can buy pre-picked apples, pumpkins and grapes. School and group tours also are available.
And at the country store, Hillcrest Market, you can shop for apple goodies such as the popular apple butter,
apple salsa, apple chipotle raspberry sauce, and other great yummy apple treats. Then, there are the 40
acres of orchard you can enjoy plus a picnic area.
“We have been so blessed,” said owner Mike Stepp. “We want to provide a setting where families can come
and enjoy themselves and have a good time.”
Stepp’s Hillcrest Orchard
170 Stepp Orchard Drive,
Hendersonville, NC 28792
(828) 685-9083
| www.SteppApples.com
Facebook: Stepp’s Hillcrest Orchard
CAB: Community And Banking | 5
NC Market Lenders
Carolina Alliance has the best lenders you’ll find anywhere. This team of professionals understands our markets and will work with you for the best possible deal.
Kelly Leonard
Senior Vice President
Commercial Banking Officer
kleonard@carolinaalliancebank.com
(828) 398-2182
Steve Jennings
Vice President
Commercial Banking Officer
sjennings@carolinaalliancebank.com
(828) 348-2282
Staff News
Transfer
Jamie Johnson
Client Services Representative –
Hendersonville
jjohnson@carolinaalliancebank.com
(828) 233-0584
Popmoney!
Welcome!
Kayla Revis
Proof Operator – Spartanburg
krevis@carolinaalliancebank.com
(864) 208-2265
Here’s how is works:
Sending Money
eliminates the hassles of
• To send money, login to your Carolina Alliance
online banking account and look for Popmoney.
• Send money to anyone using their email address or account information.
•You will be notified when the transaction is
completed.
checks and cash. Now,
Here are a few ways you can use Popmoney
Have you used Popmoney? It’s a great personal
payment service offered
by Carolina Alliance that
sending and receiving
money is as easy as
emailing and texting. You
don’t need a new account
to send or receive money.
Just use your current
bank/financial institution
account.
•
•
•
•
•
Send money to your child at college
Send a gift to family and friends
Reimburse friends for that fun outing
Pay your babysitter or your lawn care service
Pay rent to your landlord or roommates
For more information about Popmoney go to
www.CarolinaAllianceBank.com or contact any of
our bankers.
carolinaallianceBank.com
Advisory
Boards
South Carolina:
Charles E. Atchison, Sr.
Andrew M. Babb
Vollie C. “Vic” Bailey III
James D. Bearden III, MD
Norman H. Chapman
Caleb C. Fort
North Carolina:
Robert F. Burgin
Thomas L. Cooper
Andrea J. Corn
Eugene W. Ellison
F. Jerry Grant
Oscar J. Honeycutt
Thomas D. Hunter IV
Adam L. Shealy
William W. White, Jr.
Thank you!
I want to send a heartfelt thank you to everyone who has asked about me, sent cards and
emails, sent flowers or meals and who have visited me these past few weeks. Your concern
means more to me than I will ever be able to fully express. I am happy to report that my
doctors tell me that I am making good progress and that I should be back in the office soon. I
can’t wait to get there! Again, thanks to everyone.
This information is also available at
carolinaallianceBank.com.
John Poole
Chief Executive Officer
Locations
200 South Church Street, Spartanburg, SC 29306 • Phone: (864) 208-BANK (2265)
1127 Hendersonville Road, Asheville, NC 28803 • Phone: (828) 255-5711 • ATM Onsite
115 Broadbent Way, Unit 8, Anderson, SC 29625 • Phone: (864) 965-7829
122 Cherokee Road, Suite 4, Charlotte, NC 28207 • Phone: (980) 321-5946
218 North Main Street, Hendersonville, NC 28792 • Phone: (828) 233-0900 • ATM Onsite
135 Eagles Nest Drive, Suite K, Seneca, SC 29678 • Phone: (864) 904-9993
125 Venture Boulevard, Suite A, Spartanburg, SC 29306, Phone: (864) 595-9000 • Leasing Office