Spartanburg-based Carolina Alliance Bank reported a slight increase in its net income during the first quarter of 2017.
According to the company, its net income was $973,816 during Q1 2017 compared to $918,743 during the same quarter a year ago.
The year-over-year increase was due to increased non-interest income and a decrease in the current quarter’s income tax provision, which was partially offset by lower net interest income and an increase in the provision for loan losses, according to a company news release.
“We are pleased that our increase in non-interest income offset the decrease in net interest income, which has been under pressure due to market interest rates and keen competition,” said John Kimberly, Carolina Alliance president and CEO, in the release. “Net interest margin compression continues to challenge our industry, and we are diligently monitoring and taking defensive measures to mitigate the potential impact.”
Gross loans and leases increased by $24.3 million to $499.8 million on March 31, 2017 from $475.5 million on March 31, 2016 and total assets increased by $38.8 million to $669.4 million at March 31, 2017 from $630.6 million at March 31, 2016. Total deposits increased to $548.3 million on March 31, 2017 from $524.0 million on March 31, 2016, an increase of $24.3 million, according to the release.
“Our board is focused on strategies for growth of the bank,” said Terry Cash, chairman of the board of directors. “We believe growth is crucial to driving increased earnings and our goal of increasing returns for our shareholders.”