Four Oaks Bank & Trust (fka FOFN)

[Enterprising Investor]

Done deal.

[Renee]

FOFN: Shareholders of Four Oaks Fincorp, Inc. (FOFN) will receive 1) $1.90/share in cash and 2) 0.6178 shares of United Community Banks, Inc. (UCBI) in accordance with the terms of the merger agreement.

FINRA deleted symbol:

http://otce.finra.org/DLDeletions

[Enterprising Investor]

Sold at $17.75 this morning.

No one bats 1.000.

[norweger1979]

Congratulations!

[Enterprising Investor]

United Community Banks, Inc. and Four Oaks Fincorp, Inc. Announce Merger Agreement (6/27/17)

Expands franchise footprint into the attractive Raleigh, NC MSA

Partnership with 105-year-old community bank with significant operations in North Carolina’s fastest-growing MSA; consistent with United growth strategy

Strategically and financially attractive combination

BLAIRSVILLE, Ga. and FOUR OAKS, N.C., June 27, 2017 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ:UCBI) (“United”) and Four Oaks Fincorp, Inc. (OTCQX:FOFN) (“Four Oaks”) announced today a definitive agreement for United to acquire Four Oaks and its wholly owned bank subsidiary, Four Oaks Bank & Trust Company (“Four Oaks Bank”), in a stock and cash transaction. The transaction has been unanimously approved by the Board of Directors of each company and is expected to close in the fourth quarter of 2017.

Four Oaks Bank operates 14 banking offices, 12 of which are located in the Raleigh, North Carolina metropolitan statistical area, including loan production offices in Raleigh and Apex. Two additional banking offices are located in the eastern North Carolina locations of Dunn and Wallace. The merger will expand United’s presence in these fast-growing markets and allow it to offer its expanded product line to Four Oaks Bank’s customers.

Under the terms of the agreement, Four Oaks shareholders will receive merger consideration consisting of approximately 90 percent stock, with a fixed exchange ratio of .6178 shares of United common stock and 10 percent cash or $1.90 for each share of Four Oaks. The transaction is currently valued at approximately $124 million based on United’s closing price of $26.48 per share on June 23, 2017. The transaction is expected to be less than 1 percent dilutive to United’s tangible book value per share, including one-time transaction costs; and 2 percent – or $.04 per share – accretive to United’s fully diluted earnings per share for 2018, excluding one-time transaction costs. 

“This transaction is yet another example of our growth strategy into new, fast-growing markets,” said Jimmy Tallent, Chairman and Chief Executive Officer of United. “Four Oaks provides a strong customer base and an excellent springboard for additional growth in metropolitan Raleigh. It will also greatly assist us in attracting strong, in-market bankers to grow in this new market area for United. With a number of merger transactions taking place across North Carolina, and in the Raleigh MSA in particular, we are confident in the opportunities such market disruption will offer. Our intent is to further expand our presence in Raleigh-area communities while creating value for shareholders and customers of both organizations.”

Tallent continued, “We are especially pleased to join forces with a 105-year-old, highly respected community bank with a tremendous core deposit and customer base. Four Oaks’ commitment to outstanding customer and community service is well aligned with our own, making this a great cultural fit. The combined franchise will be well positioned for growth and success and we will be focused on investing in additional lending resources to take advantage of this great opportunity.”

“We are very excited to join the United Community Bank team,” said Chief Executive Officer David Rupp. “Four Oaks shareholders will be rewarded through the superior financial performance of United and Four Oaks customers will find that they share our focus on outstanding personalized service. Together, we will leverage the new resources and products available through United Community Bank to expand relationships and continue to grow in North Carolina.”
Four Oaks Bank will merge into United’s bank subsidiary and will operate under the United Community Bank brand. At March 31, 2017, Four Oaks Bank had $737 million in assets, including $513 million in loans, and $560 million in deposits, of which nearly two-thirds are considered core deposits.

“The transaction with Four Oaks is a success for customers, employees and shareholders of both organizations and ultimately our combined company,” said United President and Chief Operating Officer Lynn Harton. “I am originally from North Carolina and spent a good part of my early career in eastern NC and Raleigh. We are excited to have this opportunity to build upon the Four Oaks team and their legacy of community focus and excellent customer service.”

Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Four Oaks’ shareholders.
Banks Street Partners, LLC acted as financial advisor to United, and Troutman Sanders LLP served as its legal advisor. Sandler O’Neill + Partners, LP served as Four Oaks’ financial advisor, and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP served as its legal advisor. 

About United Community Banks, Inc.

United Community Banks, Inc. (NASDAQ:UCBI) is a registered bank holding company based in Blairsville, Georgia with $10.7 billion in assets. The company’s banking subsidiary, United Community Bank, is one of the southeast region’s largest full-service banks, operating 134 offices in Georgia, North Carolina, South Carolina and Tennessee. The bank specializes in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range of consumer and commercial banking products including mortgage, advisory and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service: In 2014, 2015 and 2016, J.D. Power ranked United Community Bank first in customer satisfaction in the Southeast. In 2017, for the fourth consecutive year, Forbes included United on its list of the top 100 Best Banks in America. Additional information about the company and the bank’s full range of products and services can be found at www.ucbi.com.

About Four Oaks Fincorp, Inc.

With $736.7 million in total assets as of March 31, 2017, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fourteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

https://globenewswire.com/news-release/2017/06/27/1029395/0/en/United-Community-Banks-Inc-and-Four-Oaks-Fincorp-Inc-Announce-Merger-Agreement.html

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces Termination of Written Agreement with Federal Reserve Bank of Richmond (5/04/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), announced today that the Bank’s July 2015 Written Agreement (the “Written Agreement”) with the Federal Reserve Bank of Richmond (the “FRB”) has been terminated by the FRB with an effective termination date of April 28, 2017.

David Rupp, President and Chief Executive Officer stated, “Since our capital raise in August of 2014, the team at Four Oaks has worked diligently to improve our performance and put ourselves in a position to grow the Bank and serve more customers. The significant upgrade in our risk management and an improved partnership with the regulators has allowed us to move beyond the regulatory restrictions of the past. Considering this announcement, solid first quarter earnings and the return of our dividend, we are excited about the path forward.”

http://www.businesswire.com/news/home/20170504006308/en/Oaks-Fincorp-Announces-Termination-Written-Agreement-Federal

[Enterprising Investor]

Four Oaks Bank keeps pushing for stock liquidity (4/29/17)

By Lauren K. Ohnesorge

Four Oaks CEO David Rupp says the move could be good for the bank, however, as it will allow for “a little more liquidity” in the stock.

Currently, more than half of the bank is owned by insiders.

“It would be nice if there was more flow out in the market,” he says, adding that there’s been interest – particularly since the reverse stock split Four Oaks finalized in March, where every five shares of stock were automatically combined into one share. At the time, it was hoped that a higher stock price would give the bank options should the board decide to apply for a national securities exchange such as the Nasdaq, which requires an initial bid price of $4 per share.

Rupp says this week the plan is to keep its options open.

Lehman, who owns nearly half of the company, entered into a $16 million stock purchase agreement with Four Oaks in 2014.

“He’s very patient and a big supporter of the bank and this is just a natural evolution for him,” Rupp says. “It gives him flexibility if he wants to sell a portion of his holdings.”

Rupp cautions that the filing doesn’t mean that he has to sell shares – just that Lehman, a former attorney, now has that flexibility.

In addition to Four Oaks, Lehman has served as a director of several banks, including Village Bank & Trust Financial Corporation, Firsst Capital Bancorp, Virginia Commerce Bancorp and Tower Bancorp.

Earlier this week, Four Oaks declared a cash dividend of one cent per share to shareholders of record as of May 8. It’s the first dividend for the bank since it suspended the practice in the fourth quarter of 2010 following the economic crisis. And Rupp says it’s a sign of a turnaround.

“We had a really good quarter and wanted to pay it back,” he says.

Last week the bank reported a net income of $1.2 million, or 18 cents per diluted share, for its first quarter. Gross loans increased $6 million in the quarter for an annualized growth rate of 4.7 percent.

While Four Oaks Fincorp, which had $736.7 million in total assets as of the end of March, was incorporated as a bank holding company in 1997, its bank subsidiary dates back to 1912.

Four Oaks has about 175 employees and has 15 offices across Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh and Apex.

Four Oaks Fincorp trades Over The Counter under the ticker FOFN, with shares selling at about $14 a share.

http://www.bizjournals.com/triangle/news/2017/04/29/four-oaks-bank-keeps-pushing-for-stock-liquidity.html

[Enterprising Investor]

Four Oaks Fincorp, Inc. Declares 2017 Second Quarter Dividend (4/25/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company, today announced that the Board of Directors of the Company declared a cash dividend of $0.01 per share payable on or after May 23, 2017, to shareholders of record on May 8, 2017. This is the first dividend since the Company suspended dividends in the fourth quarter of 2010 following the economic crisis.

President and Chief Executive Officer David H. Rupp stated, “Prior to 2010, we had a long tradition of paying quarterly dividends. Following a solid first quarter of earnings and thanks to the hard work of our employees, the loyalty of our customers, and the support of our shareholders, we are happy that the Company is again in the position to return a portion of the bank’s earnings to our shareholders.”

With $736.7 million in total assets as of March 31, 2017, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20170425005353/en/Oaks-Fincorp-Declares-2017-Quarter-Dividend

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces 2017 First Quarter Earnings (4/20/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced earnings for the first quarter ended March 31, 2017. The Company reported net income of $1.2 million or $0.18 per diluted share compared to net income of $831,000 or $0.13 per diluted share for the same period in 2016, an increase of $357,000 or $0.05 per diluted share. The Company recorded income tax expense of $653,000 for the three months ended March 31, 2017 as compared to $463,000 for the same period in 2016.

President and Chief Executive Officer David H. Rupp stated, "In the first quarter, our performance continued to improve with a notable increase in earnings. We are pleased with the customer relationships that are driving robust deposit growth, which in turn have led to solid loan growth. Asset quality remains strong and we believe we have positioned Four Oaks Bank for a successful 2017."

First Quarter 2017 Highlights:

Net income of $1.2 million, an increase of $357,000 or 43% as compared to first quarter 2016

Earnings per share totaling $0.18, an increase of $0.05 as compared to first quarter 2016

Demand, savings, and money market deposits increased $16.4 million compared to December 31, 2016 for an annualized growth rate of 18.5%

Gross loans increased $6.0 million during the quarter for an annualized growth rate of 4.7%

Reverse Stock Split:

On March 8, 2017, the previously announced one for five reverse stock split of the Company’s outstanding common stock (the “Reverse Stock Split”) was effective. As a result of the Reverse Stock Split, every five shares of the Company’s common stock issued and outstanding were consolidated into one issued and outstanding share of common stock. All share and share-related information presented in this press release has been retroactively adjusted to reflect the decreased number of shares resulting from the Reverse Stock Split.

Net Interest Margin and Net Interest Income:

Net interest margin annualized for the three months ended March 31, 2017 was 3.97% compared to 3.69% as of March 31, 2016. Net interest income totaled $6.4 million for the three months ended March 31, 2017 as compared to $5.9 million for the same period in 2016, an increase of $538,000 or 9.1%. Interest income totaled $7.6 million for the three months ended March 31, 2017 compared to $7.1 million for the same period in 2016, an increase of $487,000 or 6.8%. Interest expense remained flat at $1.2 million for the three months ended March 31, 2017 and 2016.

The primary driver of the improved margins and overall net interest income was the increase in interest earned on loans offset by a decrease in interest earned on investment securities. Both of these fluctuations were driven primarily by changes in average balances as interest rates remained fairly constant over both periods.

Non-Interest Income:

Non-interest income was $1.3 million for the three months ended March 31, 2017 compared to $1.2 million for the same period in 2016. Increases were seen in all categories of non-interest income as compared to the prior year. Service charges and fees increased $55,000 while other non-interest income increased $45,000. Additionally, the Company invested in a new bank owned life insurance policy during the fourth quarter of 2016, which increased fee income for the three months ended March 31, 2017 by $55,000.

Non-Interest Expense:

Non-interest expense totaled $5.9 million for the three months ended March 31, 2017 compared to $5.8 million for the same period in 2016. Other operating expenses increased $210,000 due primarily to the normalization of card processing expenses as all card-related conversions are now complete. There was additionally an increase in total compensation expenses, which totaled $110,000. The primary drivers of this increase were changes in the vesting expectations for performance based restricted stock awards and an increase in the Company match on employee 401K plans that was implemented late in the first quarter of 2016. These increases were offset by improvements in asset quality related expenses, which led to reductions in FDIC assessment rates as well as collection and foreclosure related expenses.

Balance Sheet:

Total assets were $736.7 million at March 31, 2017 compared to $719.9 million at December 31, 2016, an increase of $16.8 million or 2.3%, primarily due to increased cash and loan growth. Cash, cash equivalents, and investments were $175.3 million at March 31, 2017 compared to $163.6 million at December 31, 2016, an increase of $11.7 million or 7.1%. Outstanding gross loans grew to $513.0 million at March 31, 2017 compared to $507.0 million at December 31, 2016, an increase of $6.0 million or 1.2%.

Total liabilities were $667.1 million at March 31, 2017, an increase of $15.2 million or 2.3%, from $651.9 million at December 31, 2016. Total deposits increased $6.5 million or 1.2% during the three month period ended March 31, 2017, from $553.5 million at December 31, 2016, to $560.0 million at March 31, 2017. Demand, savings, and money market deposit accounts increased $16.4 million or 4.6% during the three month period ended March 31, 2017 totaling $368.6 million compared to $352.2 million as of December 31, 2016. This growth was offset by reductions in time deposits of $9.9 million or 4.9%, which totaled $191.4 million as of March 31, 2017 compared to $201.3 million at December 31, 2016. Long-term borrowings were $80.0 million at March 31, 2017 compared to $70.0 million at December 31, 2016, an increase of $10.0 million or 14.3%. Total shareholders’ equity increased $1.5 million or 2.3%, from $68.0 million at December 31, 2016, to $69.5 million at March 31, 2017. This increase resulted primarily from net income generated during the first quarter, as well as increases in accumulated other comprehensive income on the available for sale securities portfolio.

Asset Quality:

Asset quality measures have continued to be positive and management believes asset quality is now at stabilized levels. Nonperforming assets totaled $6.1 million or 0.82% of total assets at March 31, 2017 compared to $6.0 million or 0.84% of total assets at December 31, 2016. The allowance for loan and lease losses remained flat at $9.6 million for the periods ended March 31, 2017 and December 31, 2016. The allowance for loan and lease losses as a percentage of gross loans was 1.88% and 1.90% at March 31, 2017 and December 31, 2016, respectively. The Company reported a classified asset to capital ratio of 8.4% as of March 31, 2017 compared to 8.9% as of December 31, 2016.

Capital:

The Bank remains well capitalized at March 31, 2017 and reports total risk based capital of 15.5%, Tier 1 risk based capital of 14.2%, a leverage ratio of 11.2%, and common equity Tier 1 capital of 14.2%. At December 31, 2016, the Bank had total risk based capital of 15.4%, Tier 1 risk based capital of 14.1%, a leverage ratio of 11.0%, and common equity Tier 1 capital of 14.1%.
With $736.7 million in total assets as of March 31, 2017, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20170420005716/en/Oaks-Fincorp-Announces-2017-Quarter-Earnings

[Enterprising Investor]

Investor Presentation (3/15/17)

https://www.sec.gov/Archives/edgar/data/1040799/000115752317000813/a51526554ex99_1.htm

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces Updated Effective Date of Reverse Stock Split and Approval of Share Repurchase Program (3/08/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company, today announced that the Financial Industry Regulatory Authority (“FINRA”) has approved the processing of the previously approved and announced one for five reverse stock split of the Company’s outstanding common stock (the “Reverse Stock Split”). The Reverse Stock Split will become effective with the North Carolina Department of the Secretary of State at 5:00 pm, Eastern Time, on March 8, 2017 (the “Effective Time”). Trading of the Company’s common stock on the OTCQX is expected to continue, on a split-adjusted basis, on Thursday, March 9, 2017 under the existing ticker symbol “FOFN” with the new CUSIP number of 350891206. A “D” will be placed on the ticker symbol for 20 business days reflecting the Reverse Stock Split.

As a result of the Reverse Stock Split, every five shares of the Company’s common stock issued and outstanding at the Effective Time will be consolidated into one issued and outstanding share of common stock. The Company will not issue fractional shares in connection with the Reverse Stock Split. Instead, shareholders who otherwise would be entitled to receive fractional shares because they hold a number of shares not evenly divisible by five will automatically be entitled to receive an additional fraction of a share of common stock to round up to the next whole post-split share.

Computershare Trust Company, N.A., the Company’s transfer agent, will act as the exchange agent for the Reverse Stock Split and will send instructions to shareholders of record regarding the exchange of certificates for book-entry shares of common stock.

The Company also announced that the Board has authorized a share repurchase program under which the Company is authorized to repurchase shares of its common stock in an amount not to exceed an aggregate value of $1,000,000. The program authorizes the Company to repurchase shares of the Company’s common stock until March 1, 2018 in open market or private transactions. The Company expects to use available cash to finance these purchases and will determine the timing and amount of share repurchases based on its evaluation of market conditions and other factors.

With $719.9 million in total assets as of December 31, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20170308005295/en/Oaks-Fincorp-Announces-Updated-Effective-Date-Reverse

[Renee]

FOFN: effective March 9,2017 a one for 5 reverse split:

http://otce.finra.org/DLSymbolNameChanges

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces Effective Date of Reverse Stock Split (2/16/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company, today announced that its Board of Directors (the “Board”) has approved a one for five reverse stock split of its outstanding common stock (the “Reverse Stock Split”) to take effect at approximately 5:00 pm, Eastern Time, on March 1, 2017 (the “Effective Time”). The Reverse Stock Split was approved by the Company’s shareholders at the special meeting of shareholders held on November 8, 2016.

As a result of the Reverse Stock Split, every five shares of the Company’s common stock issued and outstanding at the Effective Time will be consolidated into one issued and outstanding share of common stock. The Company will not issue fractional shares in connection with the Reverse Stock Split. Instead, shareholders who otherwise would be entitled to receive fractional shares because they hold a number of shares not evenly divisible by five will automatically be entitled to receive an additional fraction of a share of common stock to round up to the next whole post-split share. In connection with the Reverse Stock Split, there will be no change in the par value per share of $1.00.

Trading of the Company’s common stock on the OTCQX is expected to continue, on a split-adjusted basis, with the opening of the markets on Thursday, March 2, 2017, under the existing trading symbol “FOFN” with a new CUSIP number. Based on the number of shares currently outstanding, the Reverse Stock Split will reduce the number of shares of the Company’s common stock outstanding from approximately 35 million shares prior to the Reverse Stock Split to approximately 7 million shares following the Reverse Stock Split.

Computershare Trust Company, N.A., the Company’s transfer agent, will act as the exchange agent for the Reverse Stock Split and will send instructions to shareholders of record regarding the exchange of certificates for book-entry shares of common stock.

President and Chief Executive Officer David H. Rupp stated, “After two solid years of performance, this reverse stock split represents the next step in our plan to improve balance sheet efficiency for our Company. We have been fortunate to have a loyal and supportive shareholder base and are working every day to create shareholder value for them.”

With $719.9 million in total assets as of December 31, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20170216005142/en/Oaks-Fincorp-Announces-Effective-Date-Reverse-Stock

[Enterprising Investor]

FOFN hits new 52-week high (2/10/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.6000[+]
Volume 22,901
Net Change 0.2500
Net Change % 7.46%
52 Week High 3.6500 on 02/10/2017
52 Week Low 1.7500 on 02/11/2016
Day High 3.6500
Day Low 3.2500

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces 2016 Fourth Quarter Earnings and Annual Results (2/09/17)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced earnings for the fourth quarter and twelve months ended December 31, 2016. The Company reported pre-tax net income of $1.0 million and $5.3 million, respectively, for the fourth quarter and twelve months ended December 31, 2016 compared to pre-tax net income of $810,000 and $3.5 million for the same periods in 2015. The Company reported net income of $4.2 million or $0.13 per diluted share and $6.9 million or $0.21 per diluted share, respectively, for the fourth quarter and twelve months ended December 31, 2016 compared to net income of $810,000 or $0.02 per diluted share and $20.0 million or $0.62 per diluted share for the same periods in 2015. The Company recorded an income tax benefit of $3.2 million and $1.6 million, respectively, for the fourth quarter and twelve months ended December 31, 2016, as compared to no tax benefit or expense for the fourth quarter 2015 and an income tax benefit of $16.5 million for the twelve months ended December 31, 2015. The income tax benefit in 2015 resulted from the partial reversal of the valuation allowance against the Company's deferred tax assets. The 2016 income tax benefit was due to the reversal of substantially all of the remaining valuation allowance on the deferred tax assets.

President and Chief Executive Officer David H. Rupp stated, "We are pleased with the progress we made during the fourth quarter and all of 2016. We experienced strong growth in loans and deposits, reflecting increased customer activity. Our team performed well and remains focused on supporting the growth in our communities. As we enter 2017, we will continue to invest in improving our delivery capabilities, serving more customers in the channels they choose to access."

2016 Company Highlights:

• Loan portfolio growth of $48.7 million or 11%

• Demand, savings, and money market deposits increased $40.0 million or 13%

• Net interest income increased by $1.8 million for the twelve month period, an 8% improvement year over year

• A 50% increase in pre-tax net income to $5.3 million for the year ended December 31, 2016 as compared to the previous year

• Fully transitioned leadership team, positioning the Company for future growth

Net Interest Margin and Net Interest Income:

Net interest margin annualized for the three and twelve months ended December 31, 2016 was 3.77% and 3.74%, respectively, compared to 3.41% and 3.29% for the same periods in 2015. Net interest income totaled $6.2 million and $24.4 million for the quarter and twelve months ended December 31, 2016, respectively, as compared to $5.6 million and $22.6 million for the same periods in 2015, an 11.0% and 7.8% increase, respectively. The primary driver of the improved margins and overall net interest income was the reduction in funding costs due to the balance sheet strategies executed in late 2015. These strategies included the extinguishment of high-cost long term borrowings and refinancing the Company's subordinated debt at lower rates. Interest income totaled $7.4 million and $29.2 million for the quarter and twelve months ended December 31, 2016, respectively, compared to $7.2 million and $29.4 million for these same periods in 2015. Interest expense declined to $1.2 million and $4.8 million for the quarter and twelve months ended December 31, 2016, respectively, as compared to $1.6 million and $6.8 million for the same periods in 2015.

Non-Interest Income:

Non-interest income was $1.7 million and $5.8 million for the quarter and twelve months ended December 31, 2016, respectively, as compared to $4.7 million and $9.6 million for these same periods in 2015. The decline in 2016 non-interest income for both the three and twelve month periods was primarily due to reductions in income from the sale of problem loans as we completed the previously disclosed asset resolution plan during 2015. Total gains from problem loan sales were $351,000 for the three and twelve month periods ended December 31, 2016 as compared to $3.1 million and $3.2 million for the same periods in 2015, a $2.8 million and $2.9 million decline, respectively. An additional contributor to the decline was the absence of ACH third party payment processor indemnification income as the Company exited this business line in 2015. This business line exit accounted for $97,000 and $445,000 of the overall decline for the three and twelve month periods ended December 31, 2016, respectively, as compared to the same periods in the previous year. Other factors contributing to the overall decline were less significant but included reduced premium income from the sale of government guaranteed loans and reductions in service charges on deposit accounts.

Non-Interest Expense:

Non-interest expense totaled $6.9 million and $24.8 million for the quarter and twelve months ended December 31, 2016, respectively, as compared to $9.4 million and $28.6 million for the same periods in 2015. As previously mentioned, the Company restructured the balance sheet during the fourth quarter 2015, which resulted in $2.1 million in long term debt extinguishment costs. The absence of this expense in 2016 was a primary driver in the decline of non-interest expense for the three and twelve month period. Another significant contributor included reductions of $1.0 million and $1.2 million in salary expenses for the three and twelve month periods, respectively. During late 2015, the Company exited certain personnel contracts and incurred related expenses as it transitioned the leadership team.

Income Taxes:

For the quarter ended December 31, 2016, the Company reported an income tax benefit totaling $3.2 million compared to no income tax expense or benefit for this same period in 2015. For the twelve months ended December 31, 2016, the Company reported a $1.6 million an income tax benefit as compared to a $16.5 million benefit for this same period in 2015. For both periods, the income tax benefit recorded was the result of a reversal of a portion of the valuation allowance against deferred tax assets net of income tax expense. Since the partial valuation allowance reversal during the second quarter of 2015, the Company continued to assess both positive and negative evidence to determine the ability to fully utilize the deferred tax assets prior to its expiration. During the fourth quarter 2016, based upon the assessment of all positive and negative evidence, we determined that it is more likely than not that the Company will generate sufficient taxable income of the appropriate character that would fully allow it to utilize the deferred tax assets and reversed substantially all of the remaining valuation allowance.

Balance Sheet:

Total assets were $719.9 million at December 31, 2016 compared to $691.4 million at December 31, 2015, an increase of $28.5 million or 4.1%. Cash, cash equivalents, and investments were $163.6 million at December 31, 2016 compared to $189.2 million at December 31, 2015, a decrease of $25.6 million or 13.5%. Strong loan demand offset the reductions in the investment portfolio resulting in growth of $48.7 million or 10.6% as outstanding gross loans grew to $507.0 million at December 31, 2016 compared to $458.3 million at December 31, 2015. Additionally contributing to the year over year change was a $5 million investment in life insurance. Investments in life insurance totaled $14.8 million at December 31, 2015 compared to $20.0 million at December 31, 2016.

Total liabilities were $651.9 million at December 31, 2016, an increase of $20.9 million or 3.3%, from $631.0 million at December 31, 2015. Total deposits increased $11.2 million or 2.1% during the twelve month period ended December 31, 2016, from $542.3 million at December 31, 2015, to $553.5 million at December 31, 2016. Demand, savings, and money market deposit accounts increased $40.0 million or 12.8% for the year ended 2016 totaling $352.3 million compared to $312.3 million as of December 31, 2015. This growth was offset by reductions in time deposits of $28.8 million or 12.5% which totaled $201.3 million as of December 31, 2016 compared to $230.1 million at December 31, 2015. Long-term borrowings were $70.0 million at December 31, 2016 compared to $60.0 million at December 31, 2015. Total shareholders’ equity increased $7.6 million or 12.6%, from $60.4 million at December 31, 2015, to $68.0 million at December 31, 2016.

Asset Quality:

Asset quality measures improved again in 2016 and management believes they have now stabilized. Nonperforming assets totaled $6.0 million or 0.8% of total assets at December 31, 2016, a decrease of $2.4 million compared to $8.4 million or 1.2% of total assets at December 31, 2015. The allowance for loan and lease losses remained flat at $9.6 million for the periods ended December 31, 2016 and 2015. The allowance for loan and lease losses as a percentage of gross loans was 1.9% and 2.1% at December 31, 2016 and December 31, 2015, respectively. The Company reported a classified asset to capital ratio of 8.9% as of December 31, 2016 compared to 12.5% as of December 31, 2015.

Capital:

The Bank remains well capitalized at December 31, 2016 and reports total risk based capital of 15.4%, Tier 1 risk based capital of 14.1%, a leverage ratio of 11.0%, and common equity Tier 1 capital of 14.1%. At December 31, 2015, the Bank had total risk based capital of 15.6%, Tier 1 risk based capital of 14.4%, a leverage ratio of 10.2%, and common equity Tier 1 capital of 14.4%. The reductions in overall capital ratios are due to increases in average assets and risk weighted assets from growth and shifts in asset mix on the balance sheet, offset by increases in regulatory capital from ongoing earnings.

With $719.9 million in total assets as of December 31, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20170209005260/en/Oaks-Fincorp-Announces-2016-Fourth-Quarter-Earnings

[Enterprising Investor]

FOFN hits new 52-week high (2/08/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.3000 [-]
Volume 15,487
Net Change 0.1500
Net Change % 4.76%
52 Week High 3.4000 on 02/08/2017
52 Week Low 1.7500 on 02/08/2016
Day High 3.4000
Day Low 3.2500

[Enterprising Investor]

FOFN hits new 52-week high (1/19/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.0000 [-]
Volume 1,935
Net Change 0.0
Net Change % 0.0%
52 Week High 3.2500 on 01/19/2017
52 Week Low 1.7500 on 02/08/2016
Day High 3.2500
Day Low 3.0000

[Enterprising Investor]

FOFN hits new 52-week high (1/11/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.0000 [-]
Volume 6,971
Change -0.0693
Net Change % -2.26%
52 Week High 3.1000 on 01/11/2017
52 Week Low 1.7500 on 02/08/2016
Day High 3.1000
Day Low 3.0000

[Enterprising Investor]

FOFN hits new 52-week high (1/10/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.0693[+]
Volume 30,590
Net Change 0.0693
Net Change % 2.31%
52 Week High 3.0693 on 01/10/2017
52 Week Low 1.7500 on 02/08/2016
Day High 3.0693
Day Low 3.0000

[Enterprising Investor]

FOFN hits new 52-week high (1/06/17)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 3.0000[+]
Volume 23,412
Net Change 0.1200
Net Change % 4.17%
52 Week High 3.0000 on 01/06/2017
52 Week Low 1.7500 on 02/08/2016
Day High 3.0000
Day Low 2.8800

[Enterprising Investor]

FOFN hits new 52-week high (12/27/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.8800[+]
Volume 41,162
Net Change 0.3300
Net Change % 12.94%
52 Week High 2.8800 on 12/27/2016
52 Week Low 1.7500 on 12/29/2015
Day High 2.8800
Day Low 2.6000

[Enterprising Investor]

FOFN hits new 52-week high (12/07/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.7700[+]
Volume 12,118
Net Change 0.0700
Net Change % 2.59%
52 Week High 2.7700 on 12/07/2016
52 Week Low 1.7100 on 12/17/2015
Day High 2.7700
Day Low 2.7000

[Enterprising Investor]

FOFN hits new 52-week high (12/06/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.7000[+]
Volume 13,721
Net Change 0.0300
Net Change % 1.12%
52 Week High 2.7000 on 12/06/2016
52 Week Low 1.7100 on 12/17/2015
Day High 2.7000
Day Low 2.6800

[Enterprising Investor]

FOFN hits new 52-week high (12/05/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.6700[+]
Volume 5,414
Net Change 0.0700
Net Change % 2.69%
52 Week High 2.6700 on 12/05/2016
52 Week Low 1.7100 on 12/17/2015
Day High 2.6700
Day Low 2.6177

[Enterprising Investor]

FOFN hits new 52-week high (11/29/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.5200 [-]
Volume 31,926
Net Change -0.0700
Net Change % -2.7%
52 Week High 2.6000 on 11/29/2016
52 Week Low 1.7100 on 11/30/2015
Day High 2.6000
Day Low 2.5200

[Enterprising Investor]

FOFN hits new 52-week high (11/28/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.5900[+]
Volume 1,400
Net Change 0.0700
Net Change % 2.78%
52 Week High 2.5900 on 11/28/2016
52 Week Low 1.7100 on 11/30/2015
Day High 2.5900
Day Low 2.5400

[Enterprising Investor]

FOFN hits new 52-week high (11/23/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.5200 [-]
Volume 9,808
Net Change 0.0200
Net Change % 0.8%
52 Week High 2.5400 on 11/23/2016
52 Week Low 1.7100 on 11/24/2015
Day High 2.5400
Day Low 2.5010

[Enterprising Investor]

FOFN hits new 52-week high (11/21/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.5000[+]
Volume 10,261
Net Change 0.0246
Net Change % 0.99%
52 Week High 2.5000 on 11/21/2016
52 Week Low 1.7100 on 11/23/2015
Day High 2.5000
Day Low 2.4800

[Enterprising Investor]

FOFN hits new 52-week high (11/18/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.4754[+]
Volume 1,000
Net Change 0.0154
Net Change % 0.63%
52 Week High 2.4754 on 11/18/2016
52 Week Low 1.7100 on 11/17/2015
Day High 2.4754
Day Low 2.4754

[Enterprising Investor]

People view banks as boring.

Based on shares acquired in the rights offering and a subsequent open market purchase on 8/29/14, the market value of my FOFN position is now worth twice as much as my average cost.

[Enterprising Investor]

FOFN hits new 52-week high (11/17/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.4600[+]
Volume 3,800
Net Change 0.0200
Net Change % 0.82%
52 Week High 2.4600 on 11/17/2016
52 Week Low 1.7100 on 11/17/2015
Day High 2.4600
Day Low 2.4470

[Enterprising Investor]

FOFN hits new 52-week high (11/15/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.4300[+]
Volume 10,113
Net Change 0.0300
Net Change % 1.25%
52 Week High 2.4400 on 11/15/2016
52 Week Low 1.7100 on 11/17/2015
Day High 2.4400
Day Low 2.4000

[Enterprising Investor]

FOFN hits new 52-week high (11/14/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.4000[+]
Volume 16,623
Net Change 0.0700
Net Change % 3.0%
52 Week High 2.4000 on 11/14/2016
52 Week Low 1.6000 on 08/26/2015
Day High 2.4000
Day Low 2.3300

[Enterprising Investor]

FOFN held its Special Meeting of Shareholders on 11/08/16.

Shareholders approved an amendment to the Company’s Articles of Incorporation to effect a one-for-five reverse stock split of the Company’s authorized, issued and outstanding common stock.

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces 2016 Third Quarter and Year to Date Earnings (11/01/16)

FOUR OAKS, N.C.--(BUSINESS WIRE)--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:

Net interest margin annualized for the three and nine months ended September 30, 2016 was 3.76% and 3.73%, respectively, compared to 3.43% and 3.25% for the same periods in 2015. The primary driver of the improved margins was the reduction in funding costs from the Company's balance sheet strategies executed in 2015, including the extinguishment of high-cost long term borrowings and refinancing subordinated debt at lower rates. Net interest income totaled $6.2 million and $18.2 million for the quarter and nine months ended September 30, 2016, respectively, as compared to $5.6 million and $17.0 million for the same periods in 2015. Interest expense declined to $1.2 million and $3.6 million for the quarter and nine months ended September 30, 2016, respectively, as compared to $1.7 million and $5.1 million for the same periods in 2015.

Non-Interest Income:

Non-interest income was $1.3 million and $4.1 million for the quarter and nine months ended September 30, 2016, respectively, as compared to $1.7 million and $4.9 million for these same periods in 2015. For the three months ended September 30, 2015, there was $309,000 in one-time gains from the sale of loans and investments that were not present for the three months ended September 30, 2016, contributing to most of the decline. The primary driver for the $800,000 decline for the nine month period comparison was the absence of $348,000 in ACH third party payment processor indemnification income as the Company exited this business line in 2015. Additional factors contributing to the overall decline include reductions in service charges on deposit accounts, reduced premium income from the sale of government guaranteed loans, and the absence of one-time gains on loans held for sale.

Non-Interest Expense:

Non-interest expense totaled $6.0 million and $18.0 million for the quarter and nine months ended September 30, 2016, respectively, as compared to $6.5 million and $19.2 million for the same periods in 2015. Declines for the quarter and nine months ended September 30, 2016 can be seen in many categories as the Company strives to increase efficiency and reduce the overall expense base. Ongoing improvements in asset quality contributed to declines in FDIC assessment rates, as well as collection and foreclosure related expenses. Another primary contributor to the decline for both periods was the reduction in technology conversion related expenses that were present during the three and nine month period ending September 30, 2015.

Income Taxes:

During 2016, the Company began recording income tax expense for the first time since the establishment of the valuation allowance on the Company’s deferred tax assets in 2010. For the quarter and nine months ended September 30, 2016, the Company reported a provision for income taxes totaling $633,000 and $1.6 million, respectively, as compared to an income tax expense of $92,000 and an income tax benefit of $16.5 million for these same periods in 2015. The recorded income tax expense in the third quarter of 2015 was due to a reduction in the North Carolina state tax rate and its impact on the deferred tax asset. The North Carolina state tax rate was again reduced in 2016 and consequently the deferred tax asset was revalued, increasing tax expense for the third quarter of 2016.

Balance Sheet:

Total assets were $722.9 million at September 30, 2016 compared to $691.4 million at December 31, 2015, an increase of $31.5 million or 4.6%. Cash, cash equivalents, and investments were $191.8 million at September 30, 2016 compared to $189.2 million at December 31, 2015, an increase of $2.6 million or 1.4%. Strong loan demand resulted in growth of $31.1 million or 6.8% as outstanding gross loans grew to $489.4 million at September 30, 2016 compared to $458.3 million at December 31, 2015.

Total liabilities were $657.9 million at September 30, 2016, an increase of $26.9 million or 4.3%, from $631.0 million at December 31, 2015. Total deposits increased $17.9 million during the nine month period ended September 30, 2016, from $542.3 million at December 31, 2015, to $560.2 million at September 30, 2016. Long-term borrowings were $70.0 million at September 30, 2016 compared to $60.0 million at December 31, 2015, an increase of $10.0 million or 16.7%. Total shareholders’ equity increased $4.5 million or 7.5%, from $60.4 million at December 31, 2015, to $64.9 million at September 30, 2016.

Asset Quality:

Nonperforming assets totaled $5.9 million or 0.8% of total assets at September 30, 2016, a decrease of $2.5 million compared to $8.4 million or 1.2% of total assets at December 31, 2015. The allowance for loan and lease losses increased slightly during the nine month period to $9.7 million as of September 30, 2016 compared to $9.6 million as of December 31, 2015, due to net recoveries of $57,000 during the 2016 period. The allowance for loan and lease losses as a percentage of gross loans was 2.0% and 2.1% at September 30, 2016 and December 31, 2015, respectively.

Capital:

The Bank remains well capitalized at September 30, 2016 and reports total risk based capital of 15.7%, Tier 1 risk based capital of 14.5%, a leverage ratio of 10.8%, and common equity Tier 1 capital of 14.5%. At December 31, 2015, the Bank had total risk based capital of 15.6%, Tier 1 risk based capital of 14.4%, a leverage ratio of 10.2%, and common equity Tier 1 capital of 14.4%.

With $722.9 million in total assets as of September 30, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its fifteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO) and Apex (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20161101005822/en/Oaks-Fincorp-Announces-2016-Quarter-Year-Date

[Enterprising Investor]

FOFN could benefit from uplisting down the road.

The NASDAQ Stock Market LLC, which, for example, requires, among other items, an initial bid price of at least $4.00 per share and, following initial listing, maintenance of a continue price of at least $1.00 per share.

[Enterprising Investor]

FOFN would not issue fractional shares.

Shareholders who otherwise would be entitled to receive fractional shares because they hold a number of shares not evenly divisible by five will automatically be entitled to receive an additional fraction of a share of common stock to round up to the next whole post-split share.

https://www.sec.gov/Archives/edgar/data/1040799/000104079916000028/fofn-2016specialmeetingpro.htm

[genlou]

Dear Shareholder:

Accompanying this letter is the Notice of Special Meeting, Proxy Statement, and proxy card for Four Oaks Fincorp, Inc.’s Special Meeting of Shareholders to be held on November 8, 2016. Whether or not you plan to attend the meeting in person, please submit voting instructions for your shares promptly using the directions on your proxy card to vote by one of the following methods: (1) by telephone, by calling the toll-free telephone number printed on your proxy card; (2) over the Internet, by accessing the website address printed on your proxy card; or (3) by marking, dating and signing your proxy card and returning it in the accompanying postage-paid envelope. If you do attend the Special Meeting, you can revoke your proxy and vote in person.

The Special Meeting will begin at 10:00 a.m. on Tuesday, November 8, 2016, in the training center of the company’s principal offices, located at 5987 U.S. 301 South, Four Oaks, North Carolina. At the Special Meeting, our shareholders will vote to approve an amendment to our Articles of Incorporation to effect a one-for-five reverse stock split of our authorized, issued and outstanding common stock and transact any other business properly brought before the meeting. Although a reverse stock split proposal was previously approved at our 2016 Annual Meeting of Shareholders, we are submitting a new proposal to our shareholders for approval in order to modify how the company will address fractional shares resulting from the reverse stock split and to extend the period of time during which the board of directors may exercise its discretionary authority to effect the reverse stock split.

As always, we hope to see you at the Special Meeting, and please remember to vote your shares as directed on your proxy card provided as soon as possible.

Sincerely yours,

/s/ David H. Rupp

David H. Rupp
Chief Executive Officer and President

[Enterprising Investor]

FOFN hits new 52-week high (8/26/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.3700[+]
Volume 165
Net Change 0.0700
Net Change % 3.04%
52 Week High 2.3700 on 08/26/2016
52 Week Low 1.6000 on 08/26/2015
Day High 2.3700
Day Low 2.3700

[Enterprising Investor]

FOFN hits new 52-week high (8/25/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.3000[+]
Volume 21,093
Net Change 0.1500
Net Change % 6.98%
52 Week High 2.3000 on 08/25/2016
52 Week Low 1.6000 on 08/26/2015
Day High 2.2900
Day Low 2.2300

[Enterprising Investor]

FOFN hits new 52-week high (8/01/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.2900[+]
Net Change 0.0800
Net Change % 3.62%
52 Week High 2.2900 on 08/01/2016
52 Week Low 1.6000 on 08/24/2015
Day High 2.2900
Day Low 2.2300

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces 2016 Second Quarter Earnings (7/29/16)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced earnings for the second quarter and six months ended June 30, 2016. The Company reported pre-tax net income of $1.4 million and $2.7 million, respectively, for the second quarter and six months ended June 30, 2016 compared to pre-tax net income of $914,000 and $1.9 million for the same periods in 2015. The Company reported net income of $872,000 or $0.03 per diluted share and $1.7 million or $0.05 per diluted share, respectively, for the second quarter and six months ended June 30, 2016 compared to net income of $17.5 million or $0.54 per diluted share and $18.5 million or $0.57 per diluted share for the same periods in 2015. The Company recorded income tax expense of $498,000 and $961,000, respectively, for the second quarter and six months ended June 30, 2016, as compared to an income tax benefit of $16.6 million for the same periods in 2015 which 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 another solid quarter at Four Oaks Bank. Customer activity remains strong, with both loans and core deposits growing nicely. Importantly, this has been the first full quarter of operations with our new leadership team fully in place at the Bank and I am excited about the progress we are making together.”

Second Quarter 2016 Highlights:

• Pre-tax net income increased $456,000 and $772,000, respectively, for the three and six months ended June 30, 2016 as compared to the same periods in 2015.

• Continued improvement in net interest income with an increase of $460,000 and $609,000, respectively, for the three and six months ended June 30, 2016 as compared to the same periods in 2015.

• Rising loan demand continues with growth of $28.8 million or 12.6% annualized for the six months ended June 30, 2016 compared to 1.3% for the twelve months ended December 31, 2015.

• Asset quality continues to improve as nonperforming assets declined $1.8 million or 21.6% during the first six months 2016 and with classified to capital of 9.5% as of June 30, 2016 compared to 12.5% at December 31, 2015 and 17.1% at June 30, 2015.

Net Interest Margin and Net Interest Income:

Net interest margin annualized for the three and six months ended June 30, 2016 was 3.8% and 3.7%, respectively, compared to 3.3% and 3.2% for the same periods in 2015. Net interest income totaled $6.1 million and $12.0 million for the quarter and six months ended June 30, 2016, respectively, as compared to $5.6 million and $11.4 million for the same periods in 2015. Cost of funds continues to improve as interest expense declined to $1.2 million and $2.5 million for the quarter and six months ended June 30, 2016, respectively, as compared to $1.7 million and $3.4 million for the same periods in 2015. The primary driver for the increased net interest income was reduced borrowing costs from the Company’s balance sheet strategies executed in 2015. This improvement in funding costs was partially offset by declines in interest income on loans for the six month period as there was limited recovery of lost interest on nonaccrual loans compared to this same period in 2015.

Non-Interest Income:

Non-interest income was $1.6 million and $2.7 million for the quarter and six months ended June 30, 2016, respectively, as compared to $1.7 million and $3.2 million for these same periods in 2015. The comparative declines in non-interest income stem primarily from reduced premium income on the sale of government guaranteed loans and the absence of ACH third party payment processor indemnification income as the Company exited this business line in 2015. During the second quarter and six months ended June 30, 2016, non-interest income included loan premium and indemnification income of $54,000 and $56,000, respectively, compared to $338,000 and $556,000 for these same periods in 2015. Offsetting these declines were increases in gains on the sale of investment securities available for sale totaling $266,000 and $210,000 for the second quarter and six months ended June 30, 2016, respectively, as compared to these same periods in 2015.

Non-Interest Expense:

Non-interest expense totaled $6.3 million and $12.0 million for the quarter and six months ended June 30, 2016, respectively, as compared to $6.4 million and $12.7 million for the same periods in 2015. Declines for quarter and six months ended June 30, 2016 were seen in almost all expense categories as the Company continues to pursue ways to increase efficiency and reduce the overall expense base. Continued improvement in asset quality contributed to declines in multiple categories as did the absence of technology conversion related expenses that were present during 2015.

Income Taxes:

During 2016, the Company began recording income tax expense for the first time since the establishment of the valuation allowance on the Company’s deferred tax assets in 2010. For the quarter and six months ended June 30, 2016, the Company reported a provision for income taxes totaling $498,000 and $961,000, respectively, as compared to a $16.6 million income tax benefit recorded for these same periods in 2015 which resulted from the partial reversal of the valuation allowance against deferred tax assets executed in the second quarter of 2015.

Balance Sheet:

Total assets were $713.0 million at June 30, 2016 compared to $691.4 million at December 31, 2015, an increase of $21.6 million or 3.1%. Cash, cash equivalents, and investments were $183.1 million at June 30, 2016 compared to $189.2 million at December 31, 2015, a decrease of $6.1 million or 3.2%. Strong loan demand resulted in growth of $28.8 million or 6.3% as outstanding gross loans grew to $487.1 million at June 30, 2016 compared to $458.3 million at December 31, 2015.

Total liabilities were $649.1 million at June 30, 2016, an increase of $18.1 million or 2.9%, from $631.0 million at December 31, 2015. Total deposits increased $9.5 million during the six month period ended June 30, 2016, from $542.3 million at December 31, 2015, to $551.8 million at June 30, 2016. Long-term borrowings were $70.0 million at June 30, 2016 compared to $60.0 million at December 31, 2015, an increase of $10.0 million or 16.7%. Total shareholders’ equity increased $3.5 million or 5.7%, from $60.4 million at December 31, 2015, to $63.9 million at June 30, 2016.

Asset Quality:

Nonperforming assets totaled $6.6 million or 0.9% of total assets at June 30, 2016, a decrease of $1.8 million compared to $8.4 million or 1.2% of total assets at December 31, 2015. The allowance for loan and lease losses decreased during the six month period to $9.1 million as of June 30, 2016 compared to $9.6 million as of December 31, 2015, due to net charge-offs of $547,000 during the 2016 period. The allowance for loan and lease losses as a percentage of gross loans was 1.9% and 2.1% at June 30, 2016 and December 31, 2015, respectively.

Capital:

The Bank remains well capitalized at June 30, 2016 and reports total risk based capital of 15.6%, Tier 1 risk based capital of 14.4%, a leverage ratio of 10.6%, and common equity Tier 1 capital of 14.4%. At December 31, 2015, the Bank had total risk based capital of 15.6%, Tier 1 risk based capital of 14.4%, leverage ratio of 10.2%, and common equity Tier 1 capital of 14.4%.

With $713.0 million in total assets as of June 30, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its sixteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO), Apex (LPO) and Southern Pines (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20160729005437/en/Oaks-Fincorp-Announces-2016-Quarter-Earnings

[Enterprising Investor]

FOFN hits new 52-week high (7/28/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.2100 [-]
Volume 350
Net Change -0.0100
Net Change % -0.45%
52 Week High 2.2400 on 07/28/2016
52 Week Low 1.5700 on 07/30/2015
Day High 2.2400
Day Low 2.2100

[Enterprising Investor]

FOFN hits new 52-week high (7/20/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.2000[+]
Volume 7,350
Net Change 0.0300
Net Change % 1.38%
Day High 2.2000
Day Low 2.1600
52 Week High 2.2000 on 07/20/2016
52 Week Low 1.5700 on 07/23/2015

[Enterprising Investor]

FOFN hits new 52-week high (7/14/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.1800[+]
Volume 7,211
Net Change 0.0800
Net Change % 3.81%
Day High 2.1800
Day Low 2.1000
52 Week High 2.1800 on 07/14/2016
52 Week Low 1.5700 on 07/23/2015

[Enterprising Investor]

FOFN hits new 52-week high (5/19/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.1500[+]
Volume 11,729
Net Change 0.0500
Net Change % 3.47%
Day High 2.1500
Net Change % 2.38%
52 Week High 2.1500 on 05/19/2016
52 Week Low 1.4200 on 06/09/2015

[Enterprising Investor]

FOFN hits new 52-week high (5/16/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.0900[+]
Volume 16,206
Net Change 0.0700
Net Change % 3.47%
Day High 2.0900
Day Low 2.0200
52 Week High 2.0900 on 05/16/2016
52 Week Low 1.4200 on 06/09/2015

[Enterprising Investor]

FOFN hits new 52-week high (5/02/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 2.0000[+]
Volume 26,753
Net Change 0.0800
Net Change % 4.17%
Day High 2.0000
Day Low 1.9300
52 Week High 2.0000 on 05/02/2016
52 Week Low 1.4200 on 06/09/2015

[Enterprising Investor]

Four Oaks Fincorp, Inc. Announces 2016 First Quarter Earnings (4/29/16)

FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced results for the first quarter ended March 31, 2016. For the first quarter, the Company reported pre-tax net income of $1.3 million compared to $978,000 for the same period in 2015 and $810,000 for the preceding quarter ended December 31, 2015, an increase of $316,000 and $484,000, respectively. The Company reported net income of $831,000 or $0.03 per diluted share compared to net income of $978,000 or $0.03 per diluted share for the same period in 2015.

President and Chief Executive Officer David H. Rupp stated, “We are pleased with the continued progress throughout the Bank. Following a year of foundational improvement, we are seeing solid loan and deposit growth and an increase in customer activity. We will continue to focus on improving operations and earnings, as well as increasing our service level for our wonderful customers. We remain thankful for their support and for the support of our communities.

Additionally, I am excited to report that we have finished the management team transition at the Bank with the addition of our Chief Information Officer, Larry DesPrés. The ever increasing importance of technology requires this critical investment which will allow the Bank to improve service and deliver additional capabilities that our customers demand. As we raise our game in the digital marketplace, we will never lose sight of what makes Four Oaks Bank special—our amazing team members.”

First Quarter 2016 Highlights:

• Pre-tax net income increased $484,000 for the quarter ended March 31, 2016 compared to the preceding quarter ended December 31, 2015.

• Strong loan demand resulting in growth of $17.5 million or 3.8% for the quarter ending March 31, 2016 compared to 1.3% for the full year ended December 31, 2015.

• Deposit growth that continues to exceed expectations resulting in an increase in total deposits of $19.0 million or 3.5% during the first quarter of 2016 as compared to the period ended December 31, 2015.

• Net interest income for the first quarter of 2016 increased $303,000 compared to the fourth quarter of 2015.

• Non-interest expenses declined $3.6 million and totaled $5.8 million for the first quarter of 2016 compared to $9.4 million for the preceding quarter ended December 31, 2015. The fourth quarter of 2016 included $3.0 million in personnel expenses and debt extinguishment costs that were not present in the first quarter of 2016.

• Classified assets continued to decline with a classified to capital ratio of 10.0% as of March 31, 2016 compared to 12.5% at December 31, 2015 and 20.2% at March 31, 2015.

Net Interest Margin and Net Interest Income:

Net interest margin annualized for the three months ended March 31, 2016 was 3.7% compared to 3.1% as of March 31, 2015. Net interest income increased to $5.9 million for the three months ended March 31, 2016, as compared to $5.7 million for the same period in 2015. Interest expense for the period ended March 31, 2016 declined approximately $500,000 as a result of the balance sheet strategies executed in 2015 which entailed reducing high cost Federal Home Loan Bank borrowings and refinancing the Company’s subordinated debt. Interest expense totaled $1.2 million for the three months ended March 31, 2016 compared to $1.7 million for the same period in 2015. The reduction in interest expense was offset by a decline in interest income for the quarter to $7.1 million for the three months ended March 31, 2016 compared to $7.5 million for the same period in 2015. During the three month period ended March 31, 2015, the Company earned approximately $300,000 in previously deferred interest from problem loan payouts.

Non-Interest Income:

Non-interest income was $1.2 million for the three months ended March 31, 2016 compared to $1.5 million for the same period in 2015. Of the decline, $179,000 related to the absence of ACH third party payment processors indemnification income as the Company completed the exit from this line of business in 2015. Additionally contributing to the decline were reductions in service charges on deposits accounts and other service charges, commissions, and fees.

Non-Interest Expense:

Non-interest expense totaled $5.8 million for the three months ended March 31, 2016 compared to $6.3 million for the same period in 2015. Professional and consulting fees declined $226,000 due to reductions in legal fees, audit expenses, and nonrecurring items incurred during the first quarter of 2015. Also contributing to the decline was a reduction in other operating expenses of $143,000 when compared to first quarter of 2015. During the first quarter of 2015, the Company completed an upgrade of its technology platform and the absence of these expenses is the primary contributor to the decline in other operating expenses. The Company continues to review ways to reduce non-interest expenses and determine ways to provide for more efficient operations.

Income Taxes:

During the first quarter of 2016, the Company began recording income tax expense for the first time since the establishment of the valuation allowance on the Company’s deferred tax assets in 2010. For the quarter ended March 31, 2016, the Company reported a provision for income taxes totaling $463,000 compared to no income tax provision for this same quarter in 2015.

Balance Sheet:

Total assets were $721.7 million at March 31, 2016 compared to $691.4 million at December 31, 2015, an increase of $30.3 million or 4.4% primarily due to increased cash and solid loan growth. Cash, cash equivalents, and investments were $201.9 million at March 31, 2016 compared to $189.2 million at December 31, 2015, an increase of $12.7 million or 6.7%. Outstanding gross loans grew to $475.8 million at March 31, 2016 compared to $458.3 million at December 31, 2015, an increase of $17.5 million or 3.8%.

Total liabilities were $659.5 million at March 31, 2016, an increase of $28.5 million or 4.5%, from $631.0 million at December 31, 2015. Total deposits increased $19.1 million or 3.5% during the three month period ended March 31, 2016, from $542.3 million at December 31, 2015, to $561.4 million at March 31, 2016. Long-term borrowings were $70.0 million at March 31, 2016 compared to $60.0 million at December 31, 2015, an increase of $10.0 million or 16.7%. Total shareholders' equity increased $1.8 million or 3.0%, from $60.4 million at December 31, 2015, to $62.2 million at March 31, 2016. This increase resulted primarily from net income generated during the first quarter, as well as increases in accumulated other comprehensive income on the available for sale securities portfolio.

Asset Quality:

Nonperforming assets totaled $7.1 million or 1.0% of total assets at March 31, 2016, a decrease of $1.3 million compared to $8.4 million or 1.2% of total assets at December 31, 2015. The Company completed its asset resolution plan in 2015 and management believes problem assets have now reached manageable levels in which resolution can occur in the normal course of business. The allowance for loan and lease losses decreased during the quarter to $9.1 million as of March 31, 2016 compared to $9.6 million as of December 31, 2015 due to net charge-offs of $532,000 during the period. The allowance for loan and lease losses as a percentage of gross loans was 1.9% and 2.1% at March 31, 2016 and December 31, 2015, respectively.

Capital:

The Bank remains well capitalized at March 31, 2016 and reports total risk based capital of 15.5%, Tier 1 risk based capital of 14.2%, a leverage ratio of 10.5%, and common equity Tier 1 capital of 14.2%. At December 31, 2015, the Bank had total risk based capital of 15.6%, Tier 1 risk based capital of 14.4%, leverage ratio of 10.2%, and common equity Tier 1 capital of 14.4%. At March 31, 2016, the Company had total risk based capital of 15.8%, Tier 1 risk based capital of 12.3%, a leverage ratio of 9.1%, and common equity Tier 1 capital of 10.7%, as compared to 16.0%, 12.4%, 8.8%, and 11.3%, respectively at December 31, 2015.

With $721.7 million in total assets as of March 31, 2016, the Company, through its wholly-owned subsidiary, Four Oaks Bank & Trust Company, offers a broad range of financial services through its sixteen offices in Four Oaks, Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh (LPO), Apex (LPO) and Southern Pines (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.

http://www.businesswire.com/news/home/20160429005479/en/Oaks-Fincorp-Announces-2016-Quarter-Earnings

[Enterprising Investor]

FOFN hits new 52-week high (4/19/16)

FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 1.9500[+]
Volume 6,448
Net Change 0.0400
Net Change % 2.09%
Day High 1.9500
Day Low 1.9100
52 Week High 1.900 on 04/19/2016
52 Week Low 1.4200 on 06/09/2015