Four Oaks Fincorp, Inc. Announces 2016 Third Quarter And Year To Date Earnings

Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the "Company"), the holding company for Four Oaks Bank & Trust Company (the "Bank"), today announced earnings for the third quarter and nine months ended September 30, 2016. The Company reported pre-tax net income of $1.6 million and $4.2 million, respectively, for the third quarter and nine months ended September 30, 2016 compared to pre-tax net income of $826,000 and $2.7 million for the same periods in 2015. The Company reported net income of $948,000 or $0.03 per diluted share and $2.7 million or $0.08 per diluted share, respectively, for the third quarter and nine months ended September 30, 2016 compared to net income of $734,000 or $0.02 per diluted share and $19.2 million or $0.60 per diluted share for the same periods in 2015. The Company recorded income tax expense of $633,000 and $1.6 million, respectively, for the third quarter and nine months ended September 30, 2016, as compared to an income tax expense of $92,000 and an income tax benefit of $16.5 million for the same periods in 2015. The prior year income tax benefit for the nine month period resulted from the partial reversal of the valuation allowance against the Company's deferred tax assets executed in the second quarter of 2015.

President and Chief Executive Officer David H. Rupp stated, "We are pleased to report a very solid quarter of both growth and earnings. Customer activity remains strong and we are making progress in many areas of the business. With much of the foundational work behind us, we turn our focus to expanding our customer base and improving productivity across the Bank."

Company Highlights:
  • Continued improvement in pre-tax income which increased $755,000 and $1.5 million, respectively, for the three and nine months ended September 30, 2016 as compared to the same periods in 2015.
  • Loan production remains strong with total loans growing 6.8% for the first nine months of 2016.
  • Solid deposit growth as transaction account balances increased 10.8%.
  • Asset quality has now stabilized with a classified asset to capital ratio of 8.8%.
  • Closed the Southern Pines LPO to allow for additional focus on the Company's core operating markets.

Net Interest Margin and Net Interest Income:

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