(OTCBB: CATC) today reported unaudited net income of $3,511,000 for the first quarter of 2014 compared to $3,331,000 for the same quarter in 2013. The earnings increase of $180,000 (5.4%) was attributable to a combination of solid growth in net interest income and a modest increase in noninterest income partially offset by higher noninterest expense for the quarter ended March 31, 2014. Diluted earnings per share were $0.89 for the first quarter of 2014 versus $0.85 for the same period in 2013.
“We are pleased to report another strong quarter,” noted
Joseph V. Roller II, president and CEO
. “The Bank continues to build off last year’s momentum with growth across all areas of the Company.”
Net interest income for the quarter ended March 31, 2014 was $11.8 million compared to $11.0 million in the first quarter of 2013. The quarter-over-quarter net interest income increase of $859,000 (7.8%) was driven by robust loan growth in 2013. Interest on loans for the first quarter of 2014 was $9.7 million, an increase of $1.3 million (15.6%) compared to the same quarter in 2013. This increase was offset by lower interest on taxable investment securities of $661,000 (24.5%) as the Bank has been shifting earning assets from investment securities to loans. This shift has benefitted the Bank’s net interest margin, which overall increased by 5 basis points to 3.36% for the quarter compared to 3.31% for the quarter ended March 31, 2013.
Noninterest income of $6.0 million for the March 2014 quarter was up $156,000 (2.6%) compared to the same quarter in 2013. The Bank continued to grow Wealth Management income, which increased $440,000 (11.7%) between the comparable periods, from new account growth and market appreciation. Assets under management grew to $2.2 billion at the end of the first quarter 2014 from $2.1 billion at year-end 2013. The healthy increase in Wealth Management income was offset by a considerable reduction in gains on loans held for sale, which dropped from $298,000 to $25,000 quarter-over-quarter. Similar to the industry, the Bank experienced a precipitous drop in mortgage refinance activity compared to the first quarter of 2013.