Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
FOFN hits new 52-week high (4/14/16)
FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 1.9300[+]
Volume 2,520
Net Change 0.0300
Net Change % 1.58%
Day High 1.9300
Day Low 1.9000
52 Week High 1.9300 on 04/14/2016
52 Week Low 1.4200 on 06/09/2015
FOFN hits new 52-week high (3/22/16)
FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 1.9200[+]
Volume 4,705
Net Change 0.1200
Net Change % 6.67%
Day High 1.9200
Day Low 1.8500
52 Week High 1.9200 on 01/15/2016
52 Week Low 1.4200 on 06/09/2015
Four Oaks Fincorp, Inc. Announces 2015 Fourth Quarter Earnings and Annual Results (2/18/16)
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 the results for the fourth quarter and twelve months ended December 31, 2015. For the three months ended December 31, 2015, the Company reported net income of $810,000 or $0.03 per basic and diluted share compared to net income of $633,000 or $0.04 per basic and diluted share for the same period in 2014. For the twelve months ended December 31, 2015, the Company had net income of $20.0 million or $0.62 per basic and diluted share compared to a net loss of $4.2 million or $0.24 per basic and diluted share for the same period in 2014.
President and Chief Executive Officer David H. Rupp stated, “We continue to make progress in the execution of our strategic plan. We accomplished many of our goals for 2015 including restructuring the balance sheet, improving asset quality, transitioning our technology platform and growing loans and deposits. With this work behind us, our team can focus on growing the Bank and continuing to serve our wonderful customers. We remain thankful for their support and for the support of our communities.”
Net Interest Income and Net Interest Margin:
Net interest margin annualized for the three and twelve months ended December 31, 2015 was 3.4% and 3.3%, respectively, compared to 2.6% for these same periods in 2014. Net interest income before the provision for loan losses totaled $5.6 million and $22.6 million for the three and twelve months ended December 31, 2015, respectively, as compared to $5.2 million and $20.7 million for the same periods in 2014. The increased net interest income stems primarily from increased investment income, declining interest expense on deposits, and lower expense on long-term borrowings that resulted from balance sheet strategies executed by the Company during 2014 and 2015.
Non-Interest Income:
Non-interest income was $4.7 million and $9.6 million for the three and twelve months ended December 31, 2015, respectively, compared to $3.3 million and $11.1 million for the same periods in 2014. The increased income for the quarter was primarily driven by increased gains from the sale of problem loans identified during the previously disclosed Asset Resolution Plan, offset by declines in ACH third party payment processors (TPPP) indemnification income as the Company’s exit from this business line exit is complete.
Non-Interest Expense:
Non-interest expense totaled $9.4 million and $28.6 million for the three and twelve months ended December 31, 2015, respectively, as compared to $7.9 million and $28.1 million for the same periods in 2014. Salaries and benefit related expenses were a primary driver of the change with an increase of $1.5 million and $3.2 million for the three and twelve month periods, respectively. This increase includes compensation costs related to restructuring the organization along with increased investment in our associates. Other operating expenses were also elevated and increased $275,000 and $986,000 for the three and twelve month periods, respectively, as the Company upgraded its technology platform during 2015. The Company continued to restructure the balance sheet during 2015 and extinguished $40 million of long-term debt with a total expense of $2.1 million for the twelve months ended December 31, 2015 as compared to $22 million in extinguishments with a total expense of $1.5 million for the same period in 2014. These increases were offset by declines in collection and foreclosed asset related expenses, lower FDIC insurance premiums, and reduced professional and consulting fees as we began to benefit from improved asset quality and reductions in risk.
Income Taxes:
The Company reported no income tax expense for the three months ended December 31, 2015 and December 31, 2014. The Company also reported a $16.5 million income tax benefit for the twelve months ended December 31, 2015 compared to no income tax expense or benefit for the twelve months ended December 31, 2014. The income tax benefit in 2015 was the result of a reversal of a portion of the valuation allowance against the Company’s deferred tax assets which occurred during the second quarter of 2015.
Balance Sheet:
Total assets were $691.2 million at December 31, 2015 compared to $820.8 million at December 31, 2014, a decline of $129.6 million related nearly entirely to the exit of the ACH TPPP business line. Cash, cash equivalents, and investments were $189.2 million at December 31, 2015 compared to $336.9 million at December 31, 2014, a decrease of $147.7 million related almost entirely to the above-mentioned business line exit. Total loans increased to $458.3 million at December 31, 2015 compared to $452.3 million at December 31, 2014 as loan production was offset by pay downs, maturities, and the resolution of problem loans during the year. Total liabilities were $631.0 million at December 31, 2015 compared to $780.1 million at December 31, 2014, a decline of $149.1 million primarily due to the business line exit and reductions in long-term borrowings.
Total shareholders’ equity increased $19.5 million to $60.2 million at December 31, 2015 compared to $40.7 million at December 31, 2014. This increase resulted from net income due to improved operating performance, as well as the reversal of the $16.5 million valuation allowance against the Company’s deferred tax assets recognized during the second quarter of 2015.
Asset Quality:
Asset quality continued to improve with classified assets to capital declining to 12.4% as of December 31, 2015 compared to 23.9% at December 31, 2014. Total nonperforming assets, which includes nonaccrual loans and foreclosed assets, totaled $8.4 million or 1.2% of total assets at December 31, 2015, as compared to $13.9 million or 1.7% of total assets at December 31, 2014. The Company focused on resolution of problem assets during 2015 and completed the Asset Resolution Plan during the fourth quarter 2015. The allowance for loan and lease losses increased to $9.6 million as of December 31, 2015 compared to $9.4 million as of December 31, 2014 due to net recoveries of $238,000 during the twelve months ended December 31, 2015. The allowance for loan and lease losses as a percentage of gross loans remains 2.1% at December 31, 2015 as compared to the same period in 2014.
Capital:
Capital has continued to improve due to the increased profitability and improvements in asset quality. The Bank remains well capitalized at December 31, 2015 and reports a leverage ratio of 10.2%, an increase of 300 basis points over 2014; common equity Tier 1 capital and Tier 1 risk based capital of 14.4% and total risk based capital of 15.7%. At December 31, 2014, the Bank had a leverage ratio of 7.2%, common equity Tier 1 capital and Tier 1 risk based capital of 13.5%, and total risk based capital of 14.7%.
With $691.2 million in total assets as of December 31, 2015, 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/20160218006722/en/Oaks-Fincorp-Announces-2015-Fourth-Quarter-Earnings
Four Oaks Fincorp, Inc. Completes Refinancing of Subordinated Debt (1/14/16)
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 that the Company has completed a private placement offering (the “Offering”) of $11.5 million in aggregate principal amount of subordinated promissory notes due November 30, 2025 (the “Notes”) to certain accredited investors. The Company is obligated to pay interest on the Notes at an annualized rate of 6.25% payable in quarterly installments. The Company may prepay the Notes at any time after November 30, 2020, subject to compliance with applicable law. The proceeds of the Offering were used to prepay the Company’s outstanding subordinated promissory notes issued in 2009 that had an annualized rate of 8.5%.
“With the completion of this refinancing, the Company has secured more attractively-priced long-term capital for the Bank while retaining a core group of the same note investors from our 2009 offering,” said David Rupp, President, and Chief Executive Officer of the Company and the Bank. “We are very pleased with the results of this refinancing and the support received from our note investors,” Rupp added.
With $714.5 million in total assets as of September 30, 2015, 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.
Cautionary Statement
The Offering discussed above involved the sale of securities in a private transaction that was not registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be subject to the resale restrictions under the Securities Act. The Notes may not be offered or sold absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any Notes sold in the Offering and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Contacts
Four Oaks Fincorp, Inc.
David H. Rupp, President, and Chief Executive Officer
Deanna W. Hart, Executive Vice President and Chief Financial Officer
919-963-2177
http://www.businesswire.com/news/home/20160114005594/en/Oaks-Fincorp-Completes-Refinancing-Subordinated-Debt
FOFN hits new 52-week high (1/13/16)
FOUR OAKS FINCORP INC (FOFN)
Last Trade [tick] 1.9000[+]
Volume 1,000
Net Change 0.0405
Net Change % 2.18%
Day High 1.9000
Day Low 1.9000
52 Week High 1.9000 on 01/13/2016
52 Week Low 1.4000 on 03/19/2015
Four Oaks Bank Announces Changes to Executive Management Team (1/05/16)
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”), is proud to announce that on December 21, 2015, the Board of Directors of the Company (the “Board”) approved the appointment of Lisa S. Herring to the position of Chief Operating Officer of the Company and the Bank, effective January 4, 2016. Ms. Herring has been with the Bank since 2002 in a number of roles, including most recently serving as the Bank’s Executive Vice President and Chief Risk Officer since July 2009. Ms. Herring will also retain her role as Chief Risk Officer.
“Lisa has been vital to numerous strategic initiatives and operational improvements at the Bank over many years and will play an increasingly important role in the Bank’s future,” said David Rupp, President and Chief Executive Officer of the Company and the Bank.
Additionally, on December 21, 2015, Ayden R. Lee, Jr., who has been serving as the Executive Chairman of the Company since June of 2015 after a thirty-five year tenure as an executive of the Company and the Bank, notified the Board of his intention to retire from his position effective December 31, 2015. Mr. Lee will continue to serve as Chairman of the Board of Directors of the Company.
“We extend our immense gratitude to Ayden for his lifetime of dedication and service to the Bank,” said Mr. Rupp in connection with Mr. Lee’s retirement. “We wish him the best during his retirement from the day-to-day operations of the Bank, and we are so pleased that he will continue to provide direction, wisdom and counsel from his position as Chairman of the Board of Directors,” added Mr. Rupp.
With $714.5 million in total assets as of September 30, 2015, 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/20160105005441/en/Oaks-Bank-Announces-Executive-Management-Team
Four Oaks Fincorp Commences Subordinated Note Offering (12/08/15)
On 12/01/15, Four Oaks Fincorp, Inc. commenced a private placement offering of up to $12 million in aggregate principal amount of subordinated promissory notes due November 30, 2025 to certain accredited investors pursuant to a Subordinated Note Purchase Agreement, dated December 1, 2015.
The Notes pay interest at 6.25% payable in quarterly installments commencing on March 1, 2015. The notes can be prepaid at any time after 11/20/20. The proceeds are being used to repay the outstanding subordinated promissory notes issued in 2009.
The rate on the notes being paid off is 8.5%.
http://www.sec.gov/Archives/edgar/data/1040799/000115752315003989/a51238824.htm
Four Oaks Fincorp, Inc. Announces 2015 Third Quarter and Year to Date Results (10/28/15)
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 the results for the third quarter and nine months ended September 30, 2015. For the three months ended September 30, 2015, the Company reported net income of $734,000 or $0.02 per diluted share compared to a net loss of $8.6 million or $0.42 per diluted share for the same period in 2014. For the nine months ended September 30, 2015, the Company had net income of $19.2 million or $0.60 per diluted share compared to a net loss of $4.8 million or $0.38 per diluted share for the same period in 2014.
President and Chief Executive Officer David H. Rupp stated, “We continue to make progress in the execution of our strategic plan. With a significant portion of our technology conversion and asset resolution efforts behind us, we can get to work on growing the Bank and continuing to serve our wonderful customers. We remain thankful for their support and for the support of our communities and our fine team members as we focus on community banking and its important role in the economy.”
Net Interest Income and Net Interest Margin:
Net interest margin annualized for the three and nine months ended September 30, 2015 was 3.4% and 3.3%, respectively, compared to 2.5% and 2.6% for these same periods in 2014. Net interest income before the provision for loan losses totaled $5.6 million and $17.0 million for the quarter and nine months ended September 30, 2015, respectively, as compared to $5.1 million and $15.5 million for the same periods in 2014. The increased net interest income stems primarily from increased investment income, declining interest expense on deposits, and lower expense on long-term borrowings that resulted from the balance sheet strategies executed by the Company in the fourth quarter of 2014.
Non-Interest Income:
Non-interest income was $1.7 million and $4.9 million for the quarter and nine months ended September 30, 2015, respectively, as compared to $2.3 million and $7.8 million for these same periods in 2014. The comparative declines in non-interest income were primarily from lower income received through ACH third party payment processor (TPPP) indemnifications as the Company exited this line of business during the first half of 2015. During the third quarter and nine months ended September 30, 2015, other non-interest income included indemnification income of $5,000 and $348,000, respectively, compared to $772,000 and $3.1 million during the third quarter and nine months ended September 30, 2014.
Non-Interest Expense:
Non-interest expense totaled $6.5 million and $19.2 million for the quarter and nine months ended September 30, 2015, respectively, as compared to $8.0 million and $20.1 million for the same periods in 2014. The decline from the prior year was primarily driven by reduced collection and foreclosed asset related expenses, lower FDIC insurance premiums, and reduced professional and consulting fees. This decline was offset by increases in compensation-related expenses and other operating expenses as the Company continues to make investments in our associates and upgrades its technology platform.
Income Taxes:
The Company reported a $92,000 income tax expense for the quarter ended September 30, 2015 and a $16.5 million income tax benefit for the nine months ended September 30, 2015. The current quarter expense is due to a reduction in the North Carolina state tax rate and its impact on the deferred tax asset. This expense is offset by a $16.6 million income tax benefit recognized during the second quarter of 2015 as a result of the partial release of the valuation allowance against the Company’s deferred tax assets.
Balance Sheet:
Total assets were $714.5 million at September 30, 2015 compared to $820.8 million at December 31, 2014, a decline of $106.3 million related nearly entirely to the exit of the ACH TPPP business line, offset by the reversal of the valuation allowance on the Company’s deferred tax asset during the second quarter of 2015. Cash, cash equivalents, and investments were $217.6 million at September 30, 2015 compared to $336.9 million at December 31, 2014, a decrease of $119.3 million related to the above mentioned business line exit. Total loans increased to $452.8 million at September 30, 2015 compared to $452.3 million at December 31, 2014 as loan production was offset by pay downs and maturities. Total liabilities were $654.3 million at September 30, 2015 compared to $780.1 million at December 31, 2014, a decline of $125.8 million primarily due to the ACH TPPP business line exit.
Total shareholders' equity increased $19.5 million to $60.2 million at September 30, 2015 compared to $40.7 million at December 31, 2014. This increase resulted from net income due to improved operating performance, as well as the reversal of the $16.6 million valuation allowance against the Company’s deferred tax assets.
Asset Quality:
Asset quality continues to improve with classified assets to capital ratio declining to 12.7% as of September 30, 2015 compared to 23.9% at December 31, 2014. Total nonperforming assets, which includes nonaccrual loans and foreclosed assets, totaled $6.9 million or 1.0% of total assets at September 30, 2015, as compared to $13.9 million or 1.7% of total assets at December 31, 2014. The Company continues to work toward completion of the previously disclosed asset resolution plan to ensure reductions in nonperforming assets. The allowance for loan and lease losses increased to $10.3 million as of September 30, 2015 compared to $9.4 million as of December 31, 2014 due to net recoveries of $895,000 during the nine months ended September 30, 2015. The allowance for loan and lease losses as a percentage of gross loans increased to 2.3% at September 30, 2015, up from 2.1% at December 31, 2014.
Capital:
Capital has continued to increase. The Bank remains well capitalized at September 30, 2015 and reports a leverage ratio of 10.0%, common equity Tier 1 and Tier 1 risk based capital of 14.2%, and total risk based capital of 15.5%. At December 31, 2014, the Bank had a leverage ratio of 7.2%, common equity Tier 1 capital and Tier 1 risk based capital of 13.5%, and total risk based capital of 14.7%.
With $714.5 million in total assets as of September 30, 2015 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/20151028005402/en/Oaks-Fincorp-Announces-2015-Quarter-Year-Date
Four Oaks Bank CFO resigns (9/01/15)
Nancy Wise, chief financial officer for the parent company of Four Oaks Bank, has resigned, effective Tuesday. According to a company statement, she resigned “to spend time caring for aging family members.”
In connection with the resignation, Four Oaks management proposed a severance agreement, effective Sept. 15, which puts Wise in the position to get a lump sum payout by Sept. 30. Specifically, she’ll be entitled to receive $10,000 in addition to an amount equal to 16 months of her current base salary. That means a lump sum payment of about $214,000. Four Oaks will also reimburse Wise for the premiums she pays to continue coverage under the firm’s group health insurance policy for the 18-month period beginning Oc. 1. Additionally, she will be paid for all unused vacation and sick time.
Wise joined the company in 2001 as senior vice president and CFO. She has served as executive vice president and CFO since 2005.
Her 2014 salary was $153,041, which, including bonuses and and awards, came to more than $156,000 in total compensation.
In her stead, Deanna Hart, the bank’s senior vice president and controller, will take on the CFO role as the bank searches for a new finance executive.
Four Oaks Bank had a total of $722 million in assets as of the end of June. The bank operates from 16 offices in its home base of Four Oaks, as well as Clayton, Smithfield, Garner, Benson, Fuquay-Varina, Wallace, Holly Springs, Harrells, Zebulon, Dunn, Raleigh, Apex and Southern Pines. The company trades through its market makers under the symbol FOFN.
Wise’s departure is just the latest management change at the bank. In recent months, VantageSouth vet David Rupp took over the CEO seat from longtime leader Ayden Lee.
http://www.bizjournals.com/triangle/news/2015/09/01/four-oaks-bank-cfo-nancy-wise-resigns.html
Four Oaks Fincorp, Inc. Announces Release from 2011 Written Agreement (8/04/15)
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 that the Company and Bank have been released from the Written Agreement dated May 24, 2011 with the Federal Reserve Bank of Richmond and the North Carolina Office of the Commissioner of Banks.
Working closely with its regulatory partners, the Company has been able to demonstrate substantial business and risk management progress and was deemed in compliance with the twenty point Written Agreement. The Company’s 2014 capital raise, continued asset quality improvements, and implementation of the asset resolution plan were critical to the Bank’s ability to demonstrate the required compliance. At the same time, the Bank has entered into a more narrow, three point Written Agreement only with the Federal Reserve Bank of Richmond that is unrelated to the Bank’s financial condition. This agreement covers the preparation and implementation of programs related to board oversight, review of new products and services, and ongoing customer monitoring. The Bank has already made strides in improving these areas and believes that it will be able to demonstrate full compliance with this agreement in the future.
President and Chief Executive Officer David H. Rupp stated, “This has been an important quarter for our Bank. Following the announcement of record earnings, we were able to reach agreement with our regulatory partners to lift the Written Agreement from 2011. This action reflects improvements in our capital position, asset quality, and governance. We will continue to work diligently to improve the Bank across all areas. We are very thankful for the support of our customers, our communities and our fine team members who have remained loyal to the Bank as we have worked through these changes.”
With $722 million in total assets as of June 30, 2015 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/20150804006355/en/Oaks-Fincorp-Announces-Release-2011-Written-Agreement#.VcEpAyHbKUk
Four Oaks Fincorp, Inc. Announces Record Earnings of $17.5 Million for the Second Quarter 2015 (7/31/15)
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 the results for the second quarter and six months ended June 30, 2015. The Company reported net income of $17.5 million and $18.5 million, respectively, for the second quarter and six months ended June 30, 2015 compared to net income of $2.4 million and $3.8 million for the same periods in 2014.
During the second quarter of 2015, the Company determined that it is more likely than not that sufficient taxable income will be generated to realize a significant portion of its deferred tax assets. This conclusion, and partial release of the valuation allowance, was based upon a number of factors including continued improvement in quarterly earnings, forecasted future profitability, improved asset quality and the execution of the Asset Resolution Plan. As a result, the Company recognized a $16.5 million income tax benefit which positively impacted earnings and increased capital for the Bank and the Company.
In addition to the partial reversal of the valuation allowance, the Company continues to improve performance and reported pre-tax earnings of $914,000 and $1.9 million, respectively, for the second quarter and six months ended June 30, 2015. Asset quality continues to improve with classified assets to capital ratio declining to 17.1% as of June 30, 2015 compared to 23.9% at December 31, 2014 and 65.0% at June 30, 2014. The Bank remains well capitalized at June 30, 2015 and reports a leverage ratio of 9.5%, common equity Tier 1 and Tier 1 risk based capital of 14.0%, and total risk based capital of 15.2%. At December 31, 2014, the Bank had a leverage ratio of 7.2%, common equity Tier 1 capital and Tier 1 risk based capital of 13.5%, and total risk based capital of 14.7%.
Net Interest Income and Net Interest Margin:
Net interest margin annualized for the three and six months ended June 30, 2015 was 3.3% and 3.2% compared to 2.7% for these same periods in 2014. Net interest income totaled $5.6 million and $11.4 million for the quarter and six months ended June 30, 2015, respectively, as compared to $5.2 million and $10.4 million for the same periods in 2014. Cost of funds continues to improve as interest expense declined to $1.7 million and $3.4 million for the quarter and six months ended June 30, 2015, respectively, as compared to $2.0 million and $4.1 million for the same periods in 2014. The increased net interest income stems primarily from increased investment income, declining interest expense on deposits, and lower expense on long term borrowings that resulted from the balance sheet strategies executed by the Company in the fourth quarter of 2014.
Non-Interest Income:
Non-interest income was $1.7 million and $3.2 million for the quarter and six months ended June 30, 2015, respectively, as compared to $3.4 million and $5.5 million for these same periods in 2014. The comparative declines in non-interest income continue to be primarily from lower income received through ACH third party payment processor (TPPP) indemnifications as the Company has substantially exited this line of business as of June 30, 2015. During the second quarter and six months ended June 30, 2015, other non-interest income included indemnification income of $164,000 and $343,000, respectively, compared to $1.7 million and $2.3 million during the second quarter and six months ended June 30, 2014.
Non-Interest Expense:
Non-interest expense totaled $6.4 million and $12.7 million for the quarter and six months ended June 30, 2015, respectively, as compared to $6.2 million and $12.1 million for the same periods in 2014. These increases resulted primarily from increases in compensation-related expenses as the Company added additional personnel and implemented new performance based compensation plans in 2015. Other operating expenses increased for both periods reflecting continued investment in our technology platform, along with the noted investment in our employees, both of which we believe will allow the Company to build a foundation for future growth. These increased expenses were offset by declines in collection and foreclosure related expenses and FDIC insurance due to improvements in asset quality and an overall improved financial condition.
Balance Sheet:
Total assets were $721.9 million at June 30, 2015 compared to $820.8 million at December 31, 2014, a decline of $98.9 million related nearly entirely to the exit of the ACH TPPP business line, offset by the reversal of the valuation allowance, which was a $16.5 million increase to total assets. Cash, cash equivalents, and investments were $219.8 million at June 30, 2015 compared to $336.9 million at December 31, 2014, a decrease of $117.1 million related to the above mentioned business line exit. Outstanding gross loans increased to $454.6 million at June 30, 2015 compared to $452.3 million at December 31, 2014 as solid loan production was offset by loan pay downs and maturities. Total liabilities were $663.1 million at June 30, 2015 compared to $780.1 million at December 31, 2014, a decline of $117.0 million primarily due to the ACH TPPP business line exit.
Total shareholders' equity increased $18.1 million to $58.8 million at June 30, 2015 compared to $40.7 million at December 31, 2014. This increase resulted primarily from the increased net income due to improved operating performance and the reversal of the $16.5 million valuation allowance against the Company’s deferred tax assets.
Asset Quality:
Nonperforming loans totaled $8.2 million at June 30, 2015, a decrease of $1.9 million compared to $10.1 million at December 31, 2014. Foreclosed assets totaled $2.7 million at June 30, 2015 compared to $3.8 million at December 31, 2014, a reduction of $1.1 million. Total nonperforming assets were $10.9 million or 1.6% of total assets at June 30, 2015, as compared to $13.9 million or 1.7% of total assets at December 31, 2014. The continued declines in nonperforming asset ratios are due to ongoing efforts by the Company to execute our previously disclosed asset resolution plan and reduced additions to nonperforming assets. The allowance for loan and lease losses increased slightly to $9.8 million as of June 30, 2015 compared to $9.4 million as of December 31, 2014 due to net recoveries of $434,000 during the first half of the year. The allowance for loan and lease losses as a percentage of gross loans increased slightly to 2.2% at June 30, 2015, up from 2.1% at December 31, 2014.
President and Chief Executive Officer David H. Rupp stated, “This has been an important quarter for our Company. The reversal of a significant portion of the valuation allowance reflects the ongoing improvements across our business, balanced with conservatism and an eye to the future. Lending, deposit gathering and operating earnings continued at a solid pace and we were able to complete the bulk of our technology conversion during the first half of this year. We remain thankful for the support of our customers, our communities and our fine team members as we focus on community banking and its important role in the economy.”
With $721.9 million in total assets as of June 30, 2015 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/20150731005169/en/Oaks-Fincorp-Announces-Record-Earnings-17.5-Million#.Vbtz-bTbKUk
Four Oaks Bank Approves Management Transition Plan (6/08/15)
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”), is proud to announce that on June 8, 2015, the Board of Directors of the Company (the “Board”) approved a management transition plan (the “Transition Plan”) whereby (i) David H. Rupp, the Company’s current President, Chief Operating Officer and member of the Board, will become Chief Executive Officer of the Company and the Bank and (ii) Ayden R. Lee, Jr., who has been serving as the Chief Executive Officer of the Company and the Bank, will become the Executive Chairman of the Company. As Executive Chairman, Mr. Lee will provide, among other things, strategic, governance, shareholder relations, and risk management support and oversight to the Company, its executive team and the Board. Mr. Lee will also continue in his role as Chairman of the Board. Upon being appointed as Chief Executive Officer, Mr. Rupp will no longer serve as the Chief Operating Officer of the Company but will continue serving as the President and a member of the Board. The Transition Plan is targeted to become effective on or about June 30, 2015, and is subject to approval by the Federal Reserve Bank of Richmond.
Mr. Rupp has been serving as the Company’s President and Chief Operating Officer since March 2015, after serving as Executive Vice President and Chief Operating Officer since October 2014 and Senior Vice President, Strategic Project Manager since June 2014. He was also appointed to the Board on March 23, 2015. Prior to joining the Bank, he most recently served as Retail Banking and Mortgage President of VantageSouth Bank from 2012 to 2014. From 2009 to 2011, Mr. Rupp served as Chief Executive Officer of Greystone Bank and, from 2008 to 2009, he served as Senior Executive Vice President of Regions Financial Corporation. Prior to his employment with Regions Financial Corporation, Mr. Rupp held various positions at Bank of America and First Union Corporation.
“It has been my great honor to serve as the Company’s CEO since 1980; and to have been surrounded by an outstanding board and team of community bankers for the entire period. The Company and Bank are now at a good place and it is an appropriate time for me to step down. David Rupp is an outstanding leader and I am both pleased and excited to transition the CEO reins to him. Please join me in both welcoming and supporting David as he leads the Company forward,” said Mr. Lee.
Four Oaks Bank & Trust Company is a state chartered bank headquartered in Four Oaks, North Carolina, where it was chartered in 1912. The wholly-owned subsidiary of Four Oaks Fincorp, Inc., the single bank holding company trading under the symbol FOFN on the OTCQX Marketplace, the Bank had $820.8 million in assets as of December 31, 2014. The Bank presently operates thirteen branches located in Four Oaks, Clayton, Garner, Smithfield, Benson, Fuquay-Varina, Holly Springs, Wallace, Harrells, Zebulon, Dunn and Raleigh and loan production offices in Southern Pines, Raleigh, and Apex North Carolina.
http://www.businesswire.com/news/home/20150608006676/en/Oaks-Bank-Approves-Management-Transition-Plan#.VXc6HYnbKUk
Four Oaks Fincorp, Inc. Announces 2015 First Quarter Earnings (4/28/15)
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 the results for the first quarter ended March 31, 2015. The Company reported net income of $978,000 for the quarter ended March 31, 2015 compared to $1.4 million for the same period in 2014. Net interest income increased during the first quarter of 2015 by $527,000 as compared to the same period in 2014. Non-interest income declined when compared to first quarter 2014 as we recognized one-time payments related to our exit of the ACH third party payment processor (“TPPP”) business line. Non-interest expenses increased with the conversion to a new technology platform allowing us to build a foundation for future growth. The Bank’s classified assets continue to decline with classified assets to capital ratio of 20.2% as of March 31, 2015 compared to 23.7% at December 31, 2014 and 82.2% at March 31, 2014.
The Bank remains well capitalized at March 31, 2015 and reports total risk based capital of 14.0%, Tier 1 risk based capital of 12.7%, and a leverage ratio of 7.7%. At December 31, 2014, the Bank had total risk based capital of 14.7%, Tier 1 risk based capital of 13.5%, and a leverage ratio of 7.2%. At March 31, 2015 the Company had total risk based capital of 14.2%, Tier 1 risk based capital of 11.0%, and a leverage ratio of 6.6%, as compared to 15.0%, 11.6%, and 6.2%, respectively at December 31, 2014. Although not significant, the decline in capital ratios for both the Bank and Company were due to the implementation of BASEL III, which became effective January 1, 2015.
Net Interest Income and Net Interest Margin:
Net interest margin annualized for the three months ended March 31, 2015 was 3.1% compared to 2.7% as of March 31, 2014. Net interest income increased to $5.7 million for the three months ended March 31, 2015, as compared to $5.2 million for the same period in 2014, primarily due to increased investment income coupled with declining interest expense. Cost of funds continues to improve as interest expense declined to $1.7 million for the three months ended March 31, 2015 compared to $2.0 million for the same period in 2014, due to a shift in deposit mix from time deposits to demand, savings, and money market deposits, lower rates on new and renewing time deposits, and declining interest expense on long-term borrowings as a result of the $22.0 million pay down in Federal Home Loan Bank borrowings during 2014.
Non-Interest Income:
Non-interest income was $1.5 million for the three months ended March 31, 2015 compared to $2.1 million for the same period in 2014. The decline in non-interest income was primarily due to lower income received through ACH TPPP indemnifications as we exit this line of business. During the first quarter of 2015, other non-interest income included indemnification income of $179,000 compared to $538,000 during the first quarter of 2014. In addition, other service charges, commissions, and fees was $60,000 lower for the three months ended March 31, 2015 as compared to the same period in 2014 due to lower premium income received on the sale of government guaranteed loans.
Non-Interest Expense:
Non-interest expense totaled $6.3 million for the three months ended March 31, 2015 compared to $6.0 million for the same period in 2014. Salaries related expenses increased $400,000 due to personnel additions, implementation of a restricted stock plan, and accruals related to performance-based compensation for 2015. Professional and consulting fees were $199,000 greater for the three months ended March 31, 2015 as compared to the same quarter in 2014 and other operating expenses increased $275,000 for this same period. These increases are the result of a project to upgrade our technology platform, in partnership with our core processor, in order to offer additional products and services for our customers. As asset quality continues to improve, collections and foreclosure expenses for the three months ended March 31, 2015 declined $308,000 and FDIC insurance premiums declined $279,000 when compared to the same period in 2014.
Balance Sheet:
Total assets were $767.2 million at March 31, 2015 compared to $820.8 million at December 31, 2014, a decline of $53.6 million. Cash, cash equivalents, and investments were $278.2 million at March 31, 2015 compared to $336.9 million at December 31, 2014, a decrease of $58.7 million or 17.4%. Outstanding gross loans increased to $458.6 million at March 31, 2015 compared to $452.3 million at December 31, 2014 as we began to implement a strategy of portfolio loan growth. Total liabilities were $724.8 million at March 31, 2015 compared to $780.1 million at December 31, 2014. The decline in both assets and liabilities were the result of a $48.1 million reduction in deposits as the Company exits the ACH TPPP business line.
Total shareholders' equity increased to $42.4 million at March 31, 2015 compared to $40.7 million at December 31, 2014. This increase resulted primarily from the net income during the first quarter, as well as increases in accumulated other comprehensive income on the available for sale securities portfolio.
Asset Quality:
Nonperforming loans totaled $8.9 million at March 31, 2015, a decrease of $1.2 million compared to $10.1 million at December 31, 2014. Foreclosed assets totaled $3.3 million at March 31, 2015 compared to $3.8 million at December 31, 2014, a reduction of $500,000. Total nonperforming assets were $12.1 million or 1.6% of total assets at March 31, 2015, as compared to $13.9 million or 1.7% of total assets at December 31, 2014. The continued declines in nonperforming loans and foreclosed assets were primarily the result of continued efforts by the Company as we execute the asset resolution plan, coupled with reduced additions to these categories. The allowance for loan and lease losses increased slightly during the quarter to $9.8 million as of March 31, 2015 compared to $9.4 million as of December 31, 2014 due to net recoveries of $413,000 during the period. The allowance for loan and lease losses as a percentage of gross loans remained constant at 2.1% at both March 31, 2015 and December 31, 2014.
President and Chief Operating Officer David H. Rupp states, “We are pleased to report a solid quarter of earnings and improvement across Four Oaks Bank. Asset quality improvements and our capital position continue to exceed our expectations. The repositioning of the balance sheet, which began late last year, continues to provide benefit as we make better use of our liquidity and become more efficient. We see increased activity across most of our markets and we are working diligently to meet the needs of our customers. We remain thankful for the support of our customers, communities and our fine team members as we focus on community banking and its important role in the economy.”
With $767.2 million in total assets as of March 31, 2015 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 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/20150428005260/en/Oaks-Fincorp-Announces-2015-Quarter-Earnings#.VT-BoYktGUk
Four Oaks Bank Appoints New President (4/02/15)
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”), is proud to announce that, effective March 31, 2015, David H. Rupp was appointed President of the Bank and of the Company. Ayden Lee, Jr., who has been serving as the President of the Company and the Bank, will continue to serve in his roles of Chief Executive Officer of the Company and the Bank and Chairman of the Board of Directors of the Company (the “Board”).
Mr. Rupp became the Bank’s Executive Vice President, Chief Operating Officer in September 2014 after serving as Senior Vice President, Strategic Project Manager since June 2014. He was also appointed to the Board on March 23, 2015. Prior to joining the Bank, he most recently served as Retail Banking and Mortgage President of VantageSouth Bank from 2012 to 2014. From 2009 to 2011, Mr. Rupp served as Chief Executive Officer of Greystone Bank and, from 2008 to 2009, he served as Senior Executive Vice President of Regions Financial Corporation. Prior to his employment with Regions Financial Corporation, Mr. Rupp held various positions at Bank of America and First Union Corporation.
“We’re fortunate to have found such an experienced and strong executive in David. In a period of the bank’s long history marked by exciting events, his appointment to the position of President of our company is one more example of our board’s commitment to embracing change in our path towards a very bright future,” said Mr. Lee.
Four Oaks Bank & Trust Company is a state chartered bank headquartered in Four Oaks, North Carolina, where it was chartered in 1912. The wholly-owned subsidiary of Four Oaks Fincorp, Inc., the single bank holding company trading under the symbol FOFN on the OTCQX Marketplace, the Bank had $820.8 million in assets as of December 31, 2014. The Bank presently operates thirteen branches located in Four Oaks, Clayton, Garner, Smithfield, Benson, Fuquay-Varina, Holly Springs, Wallace, Harrells, Zebulon, Dunn and Raleigh and loan production offices in Southern Pines and in Raleigh, North Carolina.
http://www.businesswire.com/news/home/20150402006478/en/Oaks-Bank-Appoints-President#.VR2vroktGUk
Four Oaks Bank Appoints Two New Directors (3/27/5)
FOUR OAKS, N.C--Four Oaks Fincorp, Inc. (OTCQX:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), is proud to announce that, effective March 23, 2015, Kenneth R. Lehman and David H. Rupp were appointed to the Boards of Directors of the Bank and of the Company.
Mr. Lehman is a private investor, attorney and banking entrepreneur. Mr. Lehman was an attorney with the Securities and Exchange Commission from 1988 through 1992, and in 1993, he co-founded a nationally recognized law firm that specialized in securities, mergers and acquisitions, and banking. He retired from that firm in 2002. Since 2003, Mr. Lehman has co-founded three banks and served as a director of several banks and bank holding companies. Over the last five years Mr. Lehman has served as a director of three publicly-traded companies including First Capital Bancorp, Inc., where he has served as a director since 2012, Virginia Commerce Bancorp, Inc., where he has served as a director since November 2009, and Tower Bancorp, Inc., where he served as a director from March 2009 through February 2012.
Mr. Rupp became the Bank’s Executive Vice President, Chief Operating Officer in September 2014 after serving as Senior Vice President, Strategic Project Manager since June 2014. Prior to joining the Bank, he most recently served as Retail Banking and Mortgage President of VantageSouth Bank from 2012 to 2014. From 2009 to 2011, Mr. Rupp served as Chief Executive Officer of Greystone Bank and, from 2008 to 2009, he served as Senior Executive Vice President of Regions Financial Corporation. Prior to his employment with Regions Financial Corporation, Mr. Rupp held various positions at Bank of America and First Union Corporation.
“We are very pleased to have both Ken and David join our board. They each bring with them a great deal of experience in the financial industry that we believe will add significant depth to our board and, in turn, our company. These appointments mark another milestone in our plan to build a strong foundation for the future growth of our company,” said Chairman, President and Chief Executive Officer Ayden R. Lee, Jr.
Four Oaks Bank & Trust Company is a state chartered bank headquartered in Four Oaks, North Carolina, where it was chartered in 1912. The wholly-owned subsidiary of Four Oaks Fincorp, Inc., the single bank holding company trading under the symbol FOFN on the OTCQX Marketplace, the Bank had $820.8 million in assets as of December 31, 2014. The Bank presently operates thirteen branches located in Four Oaks, Clayton, Garner, Smithfield, Benson, Fuquay-Varina, Holly Springs, Wallace, Harrells, Zebulon, Dunn and Raleigh and loan production offices in Southern Pines and in Raleigh, North Carolina.
CONTACT:
Four Oaks Bank & Trust
Pam Ashworth, Vice President, Marketing, 919-255-7662
http://www.sec.gov/Archives/edgar/data/1040799/000115752315001035/a51068366-ex991.htm
Four Oaks Fincorp, Inc. Announces 2014 Fourth Quarter Earnings and Annual Results (3/09/15)
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 the results for the fourth quarter and twelve months ended December 31, 2014. The Company reported net income of $633,000 for the fourth quarter and a net loss of $4.2 million for the twelve months ended December 31, 2014 compared to a net loss of $402,000 and $350,000 for the same periods in 2013. During 2014, the Company raised $24 million in capital and executed an asset resolution plan, a process to identify and value for disposal various impaired legacy loans and foreclosed real estate. The charge for the asset resolution plan was taken in the third quarter of 2014. The Bank’s classified assets as of December 31, 2014 totaled $16.8 million, resulting in a classified to capital ratio of 23.7% compared to total classified assets of $50.4 million and a classified to capital ratio of 89.7% at year end 2013. The 66.0% decline in the classified to capital ratio is the result of continued focus on improving asset quality combined with the capital raise and asset resolution plan execution.
The Bank was well capitalized at December 31, 2014 with capital ratios increasing during the year as a result of the capital raise and continuing progress in restructuring the balance sheet. At December 31, 2014, the Bank reports total risk based capital of 14.7%, Tier 1 risk based capital of 13.5%, and a leverage ratio of 7.2%. At December 31, 2013, the Bank had total risk based capital of 10.9%, Tier 1 risk based capital of 9.7%, and a leverage ratio of 5.5%. At December 31, 2014, the Company had total risk based capital of 15.0%, Tier 1 risk based capital of 11.6%, and a leverage ratio of 6.2%, as compared to 10.7%, 6.3%, and 3.6%, respectively, at December 31, 2013.
Net Interest Income and Net Interest Margin:
Net interest income before the provision for loan losses totaled $5.2 million and $20.7 million for the three and twelve months ended December 31, 2014, respectively, as compared to $5.3 million and $20.3 million for the same periods in 2013. Net interest margin annualized for the three and twelve months ended December 31, 2014 was 2.6% and 2.6%, respectively, as compared to 2.7% and 2.6% as of December 31, 2013. Although fairly constant, our net interest margin continues to be impacted for 2014 by elevated levels of nonperforming loans and lower rates on new and renewing loans in response to competitive pressures. Cost of funds continues to improve as interest expense declined to $2.0 million and $8.1 million for the three and twelve months ended December 31, 2014, respectively, as compared to $2.1 million and $8.8 million for the same periods in 2013, due to a shift in deposit mix from time deposits to demand deposits and lower rates on new and renewing deposits.
Non-Interest Income:
Non-interest income was $3.3 million and $11.1 million for the three and twelve months ended December 31, 2014, respectively, compared to $1.8 million and $7.2 million for the same periods in 2013. During 2014, other non-interest income includes nonrecurring settlements reached with certain third party payment processors of $822,000 and $3.9 million for the quarter and twelve months ended December 31, 2014, respectively. The Company additionally reported gains on the sale of loans held for sale of $1.2 million for the three and twelve months ended December 31, 2014. During the first quarter of 2013, there was a nonrecurring deposit premium of $586,000 recognized from the sale of two branches to First Bank. In addition, other services charges, commissions and fees was $500,000 lower for the three and twelve months ended December 31, 2014 as compared to the same periods in 2013 due to lower premium income received on the sale of government guaranteed loans.
Non-Interest Expense:
Non-interest expense totaled $7.9 million and $28.1 million for the three and twelve months ended December 31, 2014, respectively, compared to $7.5 million and $27.8 million for the same periods in 2013. During the fourth quarter of 2014, the Company incurred $1.2 million in expenses due to the prepayment of $17.0 million in borrowings from the Federal Home Loan Bank of Atlanta. During this same period of 2013, the Company accrued $1.2 million for a settlement related to a U.S. Department of Justice investigation of ACH third party payment processors.
Balance Sheet:
Total assets were $820.8 million at December 31, 2014, a slight decline when compared to $821.5 million at December 31, 2013. Cash, cash equivalents, and investments were $332.1 million at December 31, 2014, an increase of $41.1 million or 14.1% from the total of $291.0 million at December 31, 2013. Outstanding gross loans declined to $452.3 million at December 31, 2014 from $492.7 million at December 31, 2013 due to pay downs and payoffs on existing loans, problem loan write-downs, and a transfer of loans to held-for-sale in anticipation of near term loan sales. Total liabilities were $780.1 million at December 31, 2014, a decrease of $19.8 million from $799.9 million at December 31, 2013. This was primarily the result of pay downs in long-term borrowings of $17.0 million and $22.0 million for the three and twelve months ended December 31, 2014, respectively, offset by an increase in total deposits of $3.6 million for the twelve months ended December 31, 2014 .
Total shareholders' equity increased $19.1 million to $40.7 million at December 31, 2014 from $21.6 million at December 31, 2013. This increase resulted primarily from the capital raise. With the effect of the capital raise, book value per share decreased to $1.27 per share at December 31, 2014 compared to $2.71 per share at December 31, 2013.
Asset Quality:
Nonperforming loans totaled $10.1 million at December 31, 2014, a decrease of $17.2 million from $27.3 million at December 31, 2013. Foreclosed assets totaled $3.8 million at December 31, 2014 compared to $8.5 million at December 31, 2013, a reduction of $4.7 million. Total nonperforming assets were $13.9 million or 1.7% of total assets at December 31, 2014, as compared to $35.8 million or 4.4% of total assets at December 31, 2013. The declines in nonperforming loans and foreclosed assets were primarily the result of charge-offs, write-downs, and disposals from the execution of the asset resolution plan. These declines additionally contributed to declines in the allowance for loan and lease losses to $9.4 million or 2.1% of gross loans compared to $11.6 million or 2.4% of gross loans as of December 31, 2013.
Chairman, President, and Chief Executive Officer Ayden R. Lee, Jr. states, “We are pleased to report positive earnings for the fourth quarter of 2014, as we continue to move forward with improvements in our operations made possible by the capital raise and execution of the asset resolution plan. These changes position the Company for the future by significantly improving capital ratios and asset quality. We continue to reposition the balance sheet for growth and have many positive initiatives underway that will allow us to offer new products and services to our customer base. The support of our shareholders, customers, and employees is vital to our success and, as always, is greatly appreciated.”
With $820.8 million in total assets as of December 31, 2014, 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 Southern Pines (LPO), North Carolina. Four Oaks Fincorp, Inc. trades through its market makers under the symbol of FOFN.
Information in this press release may contain forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, our ability to comply with the Written Agreement we entered with the Federal Reserve Bank of Richmond and the North Carolina Office of the Commissioner of Banks in May 2011, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates on the level and composition of deposits, the effects of competition from other financial institutions, the failure of assumptions underlying the establishment of the allowance for loan losses, our ability to maintain an effective internal control environment, and the low trading volume of the Company's common stock. Additional factors that could cause actual results to differ materially are discussed in the Company's filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. The Company does not undertake a duty to update any forward-looking statements in this press release.
Contacts
Four Oaks Fincorp, Inc.
Ayden R. Lee, Jr., 919-963-2177
Chairman, President, and Chief Executive Officer
or
Nancy S. Wise, 919-963-2177
Executive Vice President and Chief Financial Officer
http://www.businesswire.com/news/home/20150309005332/en/Oaks-Fincorp-Announces-2014-Fourth-Quarter-Earnings#.VP2enoktGUk
Four Oaks Fincorp, Inc. Begins Trading on OTCQX (2/02/15)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCQX: FOFN) holding company for Four Oaks Bank & Trust Company in North Carolina, announced that its common stock began trading today on OTCQX, the best marketplace for established, global and growth companies operated by OTC Markets Group Inc. Prior to this, the company’s shares traded on the OTCQB venture marketplace. The Company’s ticker symbol “FOFN” remains the same.
To qualify for OTCQX a bank must meet high financial standards, be current with its regulatory reporting and post quarterly results and report material events in a timely manner. These banks must also appoint a Corporate Broker, a FINRA member broker-dealer specializing in bank stocks, to serve as their OTCQX advisor. Sandler O’Neill & Partners, L.P., a nationally recognized firm, will serve as Four Oaks Fincorp’s Corporate Broker on OTCQX.
Ayden R. Lee, Jr., Chairman of the Board, President, and Chief Executive Officer of Four Oaks Fincorp, Inc. and Four Oaks Bank & Trust Company said, “Our bank was chartered in 1912; like any company that is over 100 years old, our shareholder base is changing and the need for shareholder liquidity is becoming more important. To satisfy this growing need, the company is joining the OTCQX marketplace with the goal of making our stock more accessible to all investors and to increase shareholder value over time.”
U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.
About Four Oaks Fincorp, Inc.
Four Oaks Fincorp is the holding company for Four Oaks Bank & Trust Company (“the Bank”). The Bank provides traditional personal banking services as well as loans for business, agriculture, real estate, personal use, home improvement, and automobiles. Four Oaks is a community bank with 13 branch offices and two loan production offices located in Johnston, Wake, Moore, Harnett, Duplin and Sampson Counties of North Carolina.
Further information is available on the Company’s website at www.fouroaksbank.com.
http://www.businesswire.com/news/home/20150202006247/en/Oaks-Fincorp-Begins-Trading-OTCQX#.VNAWn4ktGUk
Four Oaks Fincorp, Inc. Announces 2014 Third Quarter and Year to Date Results (10/27/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced the results for the third quarter and nine months ended September 30, 2014. The Company reported a net loss of $8.6 million and $4.8 million, respectively, for the third quarter and nine months ended September 30, 2014 compared to net income of $79,000 and $52,000 for the same periods in 2013. During the third quarter the Company raised $24 million in capital and executed an asset resolution plan (the “ARP”), a process to identify and value for disposal various impaired legacy loans and foreclosed real estate. The Company had net charge-offs totaling $9.6 million and $10.2 million during the quarter and nine months ended September 30, 2014, respectively, as compared to $1.7 million and $4.3 million for the same periods of 2013, respectively. Foreclosed assets totaled $4.7 million at September 30, 2014, down from $8.5 million at December 31, 2013. The change in foreclosed assets can be attributed to $3.7 million in net sales proceeds and $1.7 in write-downs, which was offset by $1.6 million in additions. The elevated levels of charge-offs and write-downs were primarily the result of executing the ARP. Certain impaired loans were charged down to disposal value in anticipation of near-term sales resulting in a decrease in the allowance for loan losses (ALLL) as a percentage of gross loans to 2.09% at September 30, 2014 from 2.35% at December 31, 2013. Net charges for the ARP totaled $9.5 million for the third quarter and nine months ended September 30, 2014. As a result of the ARP, the Bank’s Texas Ratio has fallen below 40%. A bank’s Texas ratio is a measure of portfolio risk and is calculated by dividing total nonperforming assets, including troubled debt restructurings, by tangible common equity plus the allowance for loan losses. Excluding the charge for the asset resolution plan, the Company earned $0.9 million during the third quarter and $4.7 million for the nine months ended September 30, 2014. Management remains focused on finishing the resolution process and putting legacy loan issues behind the organization.
The Bank was well capitalized at September 30, 2014 with capital ratios increasing during the quarter as a result of the capital raise and asset resolution process. At September 30, 2014, the Bank reports total risk based capital of 15.0%, tier 1 risk based capital of 13.7%, and a leverage ratio of 7.1%. At December 31, 2013, the Bank had total risk based capital of 10.9%, tier 1 risk based capital of 9.7%, and a leverage ratio of 5.5%. At September 30, 2014, the Company had total risk based capital of 15.9%, tier 1 risk based capital of 11.8%, and a leverage ratio of 6.2%, as compared to 10.7%, 6.3%, and 3.6%, respectively, at December 31, 2013.
Asset Quality:
Outstanding gross loans held for investment declined to $446.4 million at September 30, 2014 from $492.7 million at December 31, 2013 due to declining loan balances, write-downs, and a transfer of loans to held for sale of $11.2 million in anticipation of near term loan sales. Nonperforming loans totaled $16.0 million at September 30, 2014, a decrease of $11.3 million from $27.3 million at December 31, 2013. Total nonperforming assets were $20.7 million or 2.5% of total assets at September 30, 2014, as compared to $35.8 million or 4.4% of total assets at December 31, 2013. The declines in nonperforming loans and nonperforming assets were primarily the result of charge-offs and write-downs originating from the ARP. As of September 30, 2014, the Bank continues to improve on its compliance with the written agreement in place with our regulators, which calls for the Company to reduce problem assets and concentrations of credit, while also increasing capital. The capital raise, along with the ARP, has allowed for compliance in these critical areas.
Net Interest Income and Net Interest Margin:
Net interest income before the provision for loan losses totaled $5.3 million and $16.1 million for the quarter and nine months ended September 30, 2014, respectively, as compared to $5.3 million and $15.6 million for the same periods in 2013. Net interest margin annualized for the nine months ended September 30, 2014 was 2.73% as compared to 2.68% for the nine months ended September 30, 2013. Although improving, our net interest margin continues to be impacted by elevated levels of nonperforming loans and lower rates on new and renewing loans in response to competitive pressures. Cost of funds continues to improve as interest expense declined to $2.0 million and $6.1 million for the quarter and nine months ended September 30, 2014, respectively, as compared to $2.2 million and $6.7 million for the same periods in 2013, due to a shift in deposit mix from time deposits to demand deposits and lower rates on new and renewing deposits.
Non-Interest Income:
Non-interest income was $2.3 million and $7.8 million for the quarter and nine months ended September 30, 2014, respectively, compared to $1.6 million and $5.4 million for the same periods in 2013. During 2014, other non-interest income includes nonrecurring settlements reached with certain third party payment processors of $0.7 million and $3.0 million for the quarter and nine months ended September 30, 2014, respectively. In the first quarter of 2013 there was a nonrecurring deposit premium of $586,000 recognized from the sale of two branches to First Bank.
Non-Interest Expense:
Non-interest expense was $8.2 million and $20.8 million for the quarter and nine months ended September 30, 2014, respectively, compared to $6.9 million and $21.0 million for the same periods in 2013. The increase for the three months ended September 30, 2014 was primarily the result of additional write downs on foreclosed real estate and expenses incurred due to the prepayment of certain borrowings from the Federal Home Loan Bank of Atlanta.
Balance Sheet:
Total assets were $837.9 million at September 30, 2014, an increase of $16.4 million or 2.0% from $821.5 million at December 31, 2013. Cash, cash equivalents, and investments were $344.6 million at September 30, 2014, an increase of $53.5 million or 18.4% from the total of $291.0 million at December 31, 2013. Total liabilities were $797.8 million at September 30, 2014, a decrease of $2.1 million or 0.3% from $799.9 million at December 31, 2013.
Total shareholders' equity increased $18.5 million to $40.1 million at September 30, 2014 from $21.6 million at December 31, 2013. This increase resulted primarily from the capital raise. With the effect of the capital raise, book value per share decreased to $1.25 per share at September 30, 2014 compared to $2.71 per share at December 31, 2013.
Chairman, President, and Chief Executive Officer, Ayden R. Lee, Jr. states, “It is a pleasure to report the on-going improvements in our operations including the execution of the asset resolution plan, made possible by the successful capital raise closed out during the month of August. These changes position the Company for the future by significantly improving capital ratios and asset quality to the best levels seen in years. We have many positive initiatives underway as we look forward to returning to growth and further strengthening our support of all our customers and the communities we serve. The support of our shareholders, customers, and employees is vital to our success and, as always, is greatly appreciated.”
With $837.9 million in total assets as of September 30, 2014, 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, Harrells, Zebulon, Dunn, Raleigh, 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/20141027005388/en/Oaks-Fincorp-Announces-2014-Quarter-Year-Date#.VE49b4l0yUk
Four Oaks Fincorp, Inc. Announces Adoption of Tax Asset Protection Plan (8/19/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced that its Board of Directors has adopted a tax asset protection plan (the “Plan”) intended to preserve the long-term value of the Company’s federal net operating loss and other tax carryforwards, which represent a substantial asset to the Company and its shareholders. The Plan is similar to tax protection plans adopted by other public companies with significant tax carryforwards. As of June 30, 2014, the Company had a federal net operating loss carryforward of approximately $36.8 million, as well as state net operating loss carryforwards and federal and state tax credits that can be carried forward to future years.
“The Plan should protect the Company’s valuable tax assets by reducing the likelihood of an unintended ‘ownership change’ under technical IRS rules,” said Ayden R. Lee Jr., the Company’s Chairman, President and Chief Executive Officer. Under Section 382 of the Internal Revenue Code, the use of the Company’s net operating loss and other carryforwards would be limited in the event of an “ownership change,” which is defined as a cumulative change of more than 50% during any three year period by shareholders owning 5% or more of the Company’s stock. Certain Company actions, including share repurchases, would add to the cumulative ownership change under Section 382.
The Plan is designed to discourage any person from becoming a 5% shareholder, thereby reducing the risk of such an ownership change. There is no guarantee, however, that the Plan will prevent the Company from experiencing an ownership change, and the Company may pursue additional means of protecting this substantial asset.
Existing holders of 4.9% or more of the Company’s outstanding shares of common stock are exempt from triggering provisions of the Plan, but lose that exemption as soon as they make any additional purchases of Company common stock. The Board of Directors considered a number of factors in establishing the term of the Plan, including anticipated use of the net operating loss carryforwards, governance matters and efficiency. The Company does not anticipate exhausting its net operating loss carryforwards prior to the expiration of the term; nevertheless, the Plan will expire if the value of any unused carryforwards is no longer material. The Plan will also expire upon redemption or exchange of the rights. Otherwise, the Plan will expire no later than the close of business on August 18, 2020, unless extended by the Board of Directors.
Additional information regarding the Plan will be contained in a Current Report on Form 8-K and in a Registration Statement on Form 8-A that the Company will file with the Securities and Exchange Commission. In addition, the Company’s registered shareholders of record as of August 19, 2014 will be mailed a summary of the rights to be issued under the Plan.
Contacts
Four Oaks Fincorp, Inc.
Ayden R. Lee, Jr., Chairman, President, and Chief Executive Officer
or
Nancy S. Wise, Executive Vice President and Chief Financial Officer
919-963-2177
http://www.businesswire.com/news/home/20140819005604/en/Oaks-Fincorp-Announces-Adoption-Tax-Asset-Protection#.U_wA-th0zIU
Iam happy I was able to get something. Thanks to EI and Chevy
My oversubscription commitment was 21,000 shares.
Received 1,937 oversubscription shares in addition to 300 basic shares. My average cost has been pushed down to $1.05 per share from $2.23 on the initial 100-share stake, so I have already locked in a nice paper profit.
Like I mentioned yesterday, I was hoping for something approaching 50 percent. Only getting a 9.2 percent allocation is bad for us but actually very good for the company.
We could have committed to buying even more shares. The result would have been more shares allocated to us. However, it would have taken more cash.
Plan B would entail buying more shares. However, there could be some downward pressure for a couple days as investors may take some of this profit off of the table. It may take a week or so for prices to level out.
wow only received 374 shares of over subscription, only a fraction of what I asked for
I was hoping for something closer to 50 percent.
Insider Buying: Kenneth R. Lehman Purchases 15,125,000 Shares of Four Oaks Fincorp Stock (FOFN)
Aug 18th, 2014
Four Oaks Fincorp (NASDAQ:FOFN) major shareholder Kenneth R. Lehman bought 15,125,000 shares of Four Oaks Fincorp stock on the open market in a transaction that occurred on Friday, August 15th. The stock was purchased at an average cost of $1.00 per share, with a total value of $15,125,000.00. Following the transaction, the insider now directly owns 16,000,000 shares of the company’s stock, valued at approximately $16,000,000. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Large shareholders that own at least 10% of a company’s shares are required to disclose their transactions with the SEC.
Shares of Four Oaks Fincorp (NASDAQ:FOFN) remained flat at $1.40 during during mid-day trading trading on Monday. The stock had a trading volume of 9,340 shares. Four Oaks Fincorp has a one year low of $1.11 and a one year high of $3.00. The stock’s 50-day moving average is $1.27 and its 200-day moving average is $1.82. The company has a market cap of $12.4 million and a price-to-earnings ratio of 3.33.
Four Oaks Fincorp, Inc is a bank holding company. The Company’s primary function is to serve as the holding company for its wholly owned subsidiaries, Four Oaks Bank & Trust Company (NASDAQ:FOFN) and Four Oaks Mortgage Services, LLC.
http://www.wkrb13.com/markets/358121/insider-buying-kenneth-r-lehman-purchases-15125000-shares-of-four-oaks-fincorp-stock-fofn/
*We'll take all the FOFN attention we can get.
Marker:
Four Oaks Fincorp, I (FOFN)
$1.40 0.0 (0.00%)
Volume: 9,340
Four Oaks Fincorp, Inc. Announces Closing of Rights Offering and Standby Offering (8/18/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company, today announced the conclusion of its previously announced rights offering (the “Rights Offering”) and concurrent standby offering to Kenneth R. Lehman (the “Standby Offering”), in which the Company issued an aggregate of 24,000,000 shares of common stock at $1.00 per share for aggregate gross proceeds of $24.0 million (the maximum permissible pursuant to the terms of the Rights Offering and Standby Offering). In connection with the Rights Offering, 9,248,464 shares were issued to holders upon exercise of their basic subscription privilege (including 2,625,000 shares issued to Mr. Lehman) and 1,376,536 shares were issued to holders upon exercise of their oversubscription privilege, which was approximately 9.2% of the total number of shares requested pursuant to holders’ oversubscription privilege. In connection with the Standby Offering, Mr. Lehman purchased an additional 12,500,000 shares.
Shares purchased in the Rights Offering will be issued in book entry from. Direct registration system statements for shares purchased in the Rights Offering are expected to be mailed to purchasers on or about August 19, 2014. Shareholders who purchased shares in the Rights Offering through their brokerage accounts will receive their purchased shares and any excess subscription payments within their respective accounts.
Chairman, President and Chief Executive Officer, Ayden R. Lee, Jr., said, “The tremendous success of this rights offering and the associated standby offering reinforces the capital foundation of the Company and builds on the positive trends in our operations and financial results. We greatly appreciate the continued support of our Four Oaks shareholders and remain sharply focused on capitalizing on this positive momentum.”
http://www.businesswire.com/news/home/20140818005151/en/Oaks-Fincorp-Announces-Closing-Rights-Offering-Standby#.U_HxHIl0yUk
WTG EI n CHEVY thumbs up
Four Oaks Fincorp, Inc. Announces 2014 Second Quarter and Year to Date Results (8/06/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced the results for the second quarter and six months ended June 30, 2014. Net income was $2.4 million and $3.8 million, respectively, for the second quarter and six months ended June 30, 2014 compared to net losses of $105,000 and $28,000 for the same periods in 2013. The Bank was well capitalized at June 30, 2014, with total risk based capital of 12.1%, tier 1 risk based capital of 10.8%, and a leverage ratio of 5.9%. At December 31, 2013, the Bank had total risk based capital of 10.9%, tier 1 risk based capital of 9.7%, and a leverage ratio of 5.5%. The Company had total risk based capital of 11.7%, tier 1 risk based capital of 7.8%, and a leverage ratio of 4.3% at June 30, 2014, as compared to 10.7%, 6.3%, and 3.6%, respectively, at December 31, 2013.
Asset Quality:
Outstanding gross loans declined to $476.7 million at June 30, 2014 from $492.7 million at December 31, 2013. The Company had net charge-offs of $570,000 and $644,000 during the quarter and six months ended June 30, 2014, respectively, as compared to $1.2 million and $2.5 million for the same periods of 2013, respectively. Nonaccrual loans were $23.4 million at June 30, 2014, a decrease of $3.8 million from $27.2 million at December 31, 2013. Continued declines in charge offs, and decreases in gross loans of $16.0 million, resulted in a decrease in the allowance for loan losses (ALLL) as a percentage of gross loans to 2.30% at June 30, 2014 from 2.35% at December 31, 2013. At June 30, 2014, 19.4% or $2.1 million of the $11.0 million ALLL represents specific reserves on impaired loans as compared to 15.7% or $1.8 million of the $11.6 million ALLL at December 31, 2013. Management believes that at June 30, 2014, the allowance for loan losses was adequate to absorb probable losses inherent in the loan portfolio. In 2014, our focus remains directed to removing nonperforming assets from the balance sheet.
Total nonperforming assets were $29.5 million or 3.5% of total assets at June 30, 2014, as compared to $35.8 million or 4.4% of total assets at December 31, 2013. Nonperforming loans decreased to $23.4 million at June 30, 2014 from $27.3 million at December 31, 2013. Foreclosed assets totaled $6.0 million at June 30, 2014, down from $8.5 million at December 31, 2013. The change in foreclosed assets can be attributed to $2.8 million of sales and $295,000 in write-downs, which was partially offset by $542,000 in additions. Troubled debt restructurings (TDRs) totaled $18.0 million at June 30, 2014, and were comprised of $9.0 million of nonperforming TDRs and $9.0 million of performing TDRs. This compares to total TDRs at December 31, 2013 of $21.3 million which were comprised of $14.3 million of non-performing TDRs and $7.0 million of performing TDRs. At both June 30, 2014 and December 31, 2013, the nonperforming TDRs were included in the totals for nonaccrual and nonperforming loans referenced above. At June 30, 2014, we were in partial compliance with the written agreement in place with our regulators, which calls for the Company to reduce problem assets and concentrations of credit, while also increasing capital.
Net Interest Income and Net Interest Margin:
Net interest income before the provision for loan losses totaled $5.4 million and $10.8 million for the quarter and six months ended June 30, 2014, respectively, as compared to $5.0 million and $10.3 million for the same periods in 2013. Net interest margin annualized for the six months ended June 30, 2014 was 2.78% as compared to 2.63% as of June 30, 2013. Although improving, our net interest margin continues to be impaired by elevated levels of nonaccrual loans and lower rates on new and renewing loans in response to competitive pressures. Cost of funds continues to improve as interest expense declined to $2.0 million and $4.1 million for the quarter and six months ended June 30, 2014, respectively, as compared to $2.2 million and $4.5 million for the same periods in 2013, due to a shift in deposit mix from time deposits to demand deposits and lower rates on new and renewing deposits.
Non-Interest Income:
Non-interest income was $3.4 million and $5.5 million for the quarter and six months ended June 30, 2014, respectively, compared to $1.7 million and $3.8 million for the same periods in 2013. During 2014, other non-interest income includes nonrecurring settlements reached with certain third party payment processors of $1.7 million and $2.3 million for the quarter and six months ended June 30, 2014, respectively. In the first quarter of 2013 there was a nonrecurring deposit premium of $586,000 recognized from the sale of two branches to First Bank.
Non-Interest Expense:
Non-interest expense was $6.4 million and $12.5 million for the quarter and six months ended June 30, 2014, respectively, compared to $6.8 million and $14.1 million for the same periods in 2013. These decreases resulted primarily from reductions in expenses related to collections, the cost of holding foreclosed assets, and declines in salaries and benefits.
Balance Sheet:
Total assets were $833.4 million at June 30, 2014, an increase of $11.8 million or 1.4% from $821.5 million at December 31, 2013. Cash and cash equivalents and investments were $294.2 million at June 30, 2014, an increase of $35.0 million or 13.5% from the total of $259.2 million at December 31, 2013. Gross loans were $476.7 million at June 30, 2014, a decrease of $16.0 million or 3.3% from the $492.7 million outstanding at December 31, 2013.
Total liabilities were $806.1 million at June 30, 2014, an increase of $6.2 million or 0.8% from $799.9 million at December 31, 2013.
Total shareholders' equity increased $5.7 million to $27.3 million at June 30, 2014 from $21.6 million at December 31, 2013. This increase resulted primarily from net income of $3.8 million and the sale of $875,000 of common stock to Kenneth R. Lehman, a private investor. Book value per share increased to $3.08 per share at June 30, 2014 compared to $2.71 per share at December 31, 2013.
Chairman, President, and Chief Executive Officer, Ayden R. Lee, Jr. states, “It is very exciting to report quarterly and year to date net income of $2.4 million and $3.8 million. We have many positive initiatives underway in 2014 as we welcome shareholder Kenneth R. Lehman to our Four Oaks Bank family. The support of our shareholders, customers, and employees is vital to our success and, as always, is greatly appreciated.”
With $833.4 million in total assets as of June 30, 2014, 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, Harrells, Zebulon, Dunn, Raleigh, 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/20140806006560/en/Oaks-Fincorp-Announces-2014-Quarter-Year-Date#.U-KfG_ldV8E
...roger that!
It's time to find another rights offering with the key words - "backstop investor". Ken Lehman is somebody worth following.
Time to find another rights offering to exercise.
If that sounds familiar, Tarek El Moussa uses the phrase, "time to find another house to flip", at the end of each episode of Flip or Flop.
Market price also rises to pro forma book value.
I'm not surprised with todays' news EI...I know you aren't either.
From a company perspective this was a perfectly executed way to go about doing a Rights Offering.. start to finish.
Four Oaks Fincorp, Inc. Announces Preliminary Results of Rights Offering (8/06/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced that the subscription period of its previously announced rights offering (the “Rights Offering”) expired at 5:00 p.m., Eastern Time, on July 31, 2014. Subscription rights that were not properly exercised by such time have expired and are no longer exercisable.
Based on the preliminary results, the Company estimates that it will receive aggregate gross proceeds in connection with the Rights Offering and related transactions of $24.0 million dollars. The Company expects that it will receive the maximum amount permissible pursuant to the terms of the Rights Offering and that all basic subscriptions received will be filled. Based on the significant response to the Offering, the Company anticipates that only a fraction of the oversubscription requests will be satisfied.
The Company’s estimates above are preliminary, as the Rights Offering is subject to a finalization and verification process by the Company and the subscription agent, Registrar and Transfer Company, which the Company expects to be complete during the month of August 2014. After all allocations and adjustments contemplated by the terms of the Rights Offering have been effected, the Rights Offering will be completed and the Company will distribute shares of its common stock to holders of subscription rights who validly exercised their subscription rights and paid the subscription price in full. Any excess subscription payments received by the subscription agent and not used in the Rights Offering will be returned, without interest or penalty, as soon as practicable following completion of the Rights Offering.
http://www.businesswire.com/news/home/20140806006306/en/Oaks-Fincorp-Announces-Preliminary-Results-Rights-Offering#.U-KCl_ldV8E
Based on Lehamns' past activity he appears to be a very experienced, capable and highly successful bank investor.
I'm encouraged to see his involvement in our FOFN deal.
Lehman owned 1,441,441 shares of VCBI prior to the merger with United Bankshares, Inc.
Shareholders received .5442 of UBSI shares for each share of VCBI. The deal value was $14.00 per share.
He sold 111,113 shares at $16.77 on 12/13/13 and converted the rest.
http://www.sec.gov/Archives/edgar/data/1099305/000123148813000028/xslF345X03/primary_doc.xml
Investor Kenneth Lehman to Buy Marine Bank & Trust in Fla. (11/27/13)
BY CHRIS CUMMING
Bank investor Kenneth Lehman plans to buy a controlling stake in Marine Bank & Trust Co. in Vero Beach, Fla.
Lehman has applied to purchase 100 million shares of Marine Bank's common stock and 5 million shares of its preferred stock, the Washington Business Journal reported Wednesday. The sale price wasn't disclosed, but a regulatory filing lists the market value of the $138 million-asset company's common stock at $1.50 per share, the Journal reports.
Lehman has filed a change-of-control application with regulators and the deal could be finalized next week, Marine Bank President Bill Penney told American Banker. Penney said he could not comment further on the planned sale before it was approved.
In March, the Federal Deposit Insurance Corp. issued a cease-and-desist order against Marine Bank, alleging that it engaged in unsafe lending and "a clear pattern of risky practices," including holding insufficient capital reserves. It ordered the bank to raise its Tier 1 capital ratio to 8% and total risk-based capital to 12%. Those figures were 5.75% and 9.77% as of Sept. 30, according to the FDIC.
Lehman, 54, has invested in many community banks, including First Capital Financial Corp. in Glen Allen, Va., and Delmar Bancorp (DBCP) in Maryland. He is also the secretary and a board member at Virginia Commerce Bancshares (VCBI) in Arlington, and helped lead the company's planned $491 million sale to United Bancshares in West Virginia, which was agreed to in January.
Source: American Banker
Kenneth R. Lehman, a private investor, is acting as the standby investor.
Lehman has agreed to purchase from us, and we have agreed to sell to him, for $1.00 per share, the lesser of (i) 10,000,000 shares of common stock, (ii) if the rights offering is completed, all shares of common stock not purchased by shareholders exercising their basic subscription privilege, and (iii) the maximum number of shares that he may purchase without causing an “ownership change” under Section 382(g) of the Internal Revenue Code of 1986, as amended, or the Code ( 49.99% of all shares of common stock outstanding at the completion of the offering).
Subscription rights will expire 7/31/14 unless extended.
The Rights Offering can be extended for up to 30 days until 8/30/14.
Very interesting , thanks for sharing
Bank Mergers Gaining Steam, But The Deals Are Still Small
Jul 9, 2014
By Saabira Chaudhuri
Deal activity among U.S. banks so far this year has hit the highest level since 1998, according to a new data from analysts at Raymond James, although the value of deals is small.
With the banking industry seemingly always in consolidation mode, Raymond James evaluates merger activity by counting the number of announced acquisitions relative to the number of U.S. banks at the start of the year. Through the first half of this year, the industry was on pace for 4% of banks to be acquired. That’s up from 3.5% for all of 2013, and marks the highest since 1998’s level of 4.6%.
The firm said it expects bank mergers to continue at a steady clip—although predominantly among the nation’s smallest banks, a trend that has been in place for some time now. “We see meaningful industry consolidation over the next 5-10 years rather than a large wave that occurs over just a few,” analyst Anthony Polini wrote in a note to clients Tuesday.
Bank deals have remained small for a variety of reasons. Among them: small banks are finding the cost of increased compliance onerous, while regulators are perceived as being discouraging of big deals. Raymond James’s data shows that 89% of the 1,195 acquisitions announced from 2009 through the second quarter of this year were for banks with less than $1 billion in assets.
Total deal value, although up by about 33% so far this year compared to the first half of 2013, is still well below the levels reported before the financial crisis. Data from SNL shows that the combined value of all banking deals in 2006 was $93.9 billion, while Raymond James’s data indicates this year is on pace for roughly $12 billion in deals.
Separately, Raymond James notes that acquisitions assisted by the Federal Deposit Insurance Corp. are less likely as the number of banks on the FDIC’s so-called “problem list” had dropped to 411 institutions as of the end of the first quarter, down significantly from the 888 institutions at the end of the same period in 2011.
http://blogs.wsj.com/moneybeat/2014/07/09/bank-mergers-gaining-steam-but-the-deals-are-still-small/
Rights received today.
Then tack on another 25% as punishment so that means stock will touch $1.00.
Four Oaks Fincorp, Inc. Sets Record Date for Rights Offering (6/16/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company, today announced that it has set 5:00 p.m., Eastern Time, on Monday, June 16, 2014, as the record date (the “Record Date”) for the Company’s previously disclosed rights offering of up to approximately $26.6 million (the “Rights Offering”). The Company expects to commence the Rights Offering on or about Wednesday, June 18, 2014.
In the Rights Offering, the Company will distribute, at no charge, non-transferable subscription rights to its shareholders as of the Record Date. For each share of common stock, $1.00 par value per share (the “Common Stock”), held as of the Record Date, a shareholder will receive a non-transferable right to purchase three shares of Common Stock at a subscription price of $1.00 per share (the “Basic Subscription Privilege”). Shareholders who exercise their Basic Subscription Privilege in full will have the opportunity to subscribe for additional shares in the event that not all available shares are purchased pursuant to the Basic Subscription Privilege or by Kenneth R. Lehman pursuant to the Securities Purchase Agreement, dated March 24, 2014, subject to certain limitations.
You may obtain a written prospectus for the Rights Offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), by writing to the Company, P.O. Box 309, Four Oaks, North Carolina 27524, Attention: Corporate Secretary. You may also obtain a copy of the Company’s filings with the Securities and Exchange Commission (the “SEC”) at www.sec.gov.
http://www.businesswire.com/news/home/20140616006508/en/Oaks-Fincorp-Sets-Record-Date-Rights-Offering#.U5-3fdhOXIU
Important FYI:
Form S-1/A (6/10/14)
We are distributing, at no charge, to holders of our common stock, par value $1.00 per share, non-transferable subscription rights to purchase up to an aggregate of 26,633,385 shares of our common stock, which we refer to as the rights offering. You will receive one subscription right for each share of common stock you own as of 5:00 p.m., Eastern Time, on June 16 , 2014. Each subscription right will entitle you, as a holder of our common stock, to purchase three shares of common stock at a subscription price of $1.00 per share, which we refer to as the basic subscription privilege. As of the close of business on June 9 , 2014, 8,877,795 shares of our common stock were issued and outstanding.
If you fully exercise your basic subscription privilege, you will not experience any dilution in the percentage of our outstanding shares of common stock that you own immediately after the completion of the offering. You may also subscribe for additional shares, which we refer to as the oversubscription privilege, for pro rata allocation in the event that not all available shares are purchased pursuant to the shareholders’ basic subscription privilege or by the standby investor (described below). However, the oversubscription privilege will only be offered for an aggregate number of shares that, when combined with the number of shares purchased pursuant to the shareholders’ basic subscription privilege and by the standby investor, does not exceed 24,000,000 shares. If we accept your subscription pursuant to your oversubscription privilege, then in all circumstances the percentage of our outstanding shares that you own immediately after the offering will be higher than it was before the offering. Purchases of shares pursuant to the rights offering are also subject to certain other limitations described in this prospectus.
Subscription rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on July 31 , 2014, unless we extend the rights offering period for up to 30 days until August 30 , 2014. You should carefully consider whether to exercise your subscription rights before the expiration of the rights offering. All exercises of subscription rights are irrevocable. Our board of directors makes no recommendation regarding your exercise of the subscription rights.
We are not requiring an overall minimum subscription to complete the rights offering. However, we reserve the right to amend or cancel the rights offering at any time. Registrar and Transfer Company, our subscription agent for the rights offering, will hold all funds it receives in an escrow account until completion of the rights offering. If we decide to extend, amend or modify the terms of the right offering for any reason, subscriptions received prior to such extension, amendment or modification will remain irrevocable. If we cancel the rights offering, all subscription funds will be returned promptly, without interest or penalty.
This is not an underwritten offering. The rights are being offered directly by us without the services of an underwriter or selling agent.
To facilitate the rights offering, we have entered into a securities purchase agreement, or the Securities Purchase Agreement, with Kenneth R. Lehman, a private investor, whom we refer to as the standby investor. The standby investor has agreed to purchase from us, and we have agreed to sell to him, for $1.00 per share, the lesser of (i) 10,000,000 shares of common stock, (ii) if the rights offering is completed, all shares of common stock not purchased by shareholders exercising their basic subscription privilege, and (iii) the maximum number of shares that he may purchase without causing an “ownership change” under Section 382(g) of the Internal Revenue Code of 1986, as amended, or the Code ( 49.99% of all shares of common stock outstanding at the completion of the offering). In addition, the Securities Purchase Agreement provides the standby investor a right of first refusal to purchase an additional 6,000,000 shares subject to the limitations outlined in clauses (ii) and (iii) above. For a description of the minimum and maximum number of shares that may be purchased by the standby investor, which is dependent on the success of the rights offering, please see the section of this prospectus entitled "The Securities Purchase Agreement."
We refer to the issuance to the standby investor as the standby offering, and we refer to the rights offering and the standby offering together as the offering.
http://www.sec.gov/Archives/edgar/data/1040799/000104079914000016/s-1registrationstatementam.htm
Quarterly Report (10-q)
Date : 05/15/2014 @ 4:00PM
Source : Edgar (US Regulatory)
Stock : Four Oaks Fincorp, Inc. (QB) (FOFN)
Quote : $1.96 -0.07 (-3.45%) @ 4:15PM
[....]
Comparison of Financial Condition at March 31, 2014 and December 31, 2013
The Company’s total assets declined $5.3 million during the three month period ending March 31, 2014 or 0.65% from the balance at December 31, 2013 of $821.5 million to $816.2 million at March 31, 2014 . Cash and cash equivalents increased approximately $22.3 million primarily due to increases in interest bearing deposit accounts at the Federal Reserve. Gross loans declined $9.9 million due to payoffs, paydowns, and charge offs. CDs held for investment declined $3.2 million due to scheduled maturities and investment securities declined $13.1 million . The changes in investments were primarily the result of $13.4 million in sales, $3.7 million in paydowns, net of $3.5 million in investment security purchases. Additionally, foreclosed assets declined $1.1 million as sales continued to outpace additions.
Total deposits decreased $8.4 million or 1.28% for the three month period ended March 31, 2014 as compared to December 31, 2013 . Although total deposits declined, non interest bearing demand deposits increased by $5.3 million as the shift from interest bearing to non interest bearing continues.
Total shareholders’ equity increased from $21.6 million at December 31, 2013 to $24.4 million at March 31, 2014 , due to an increase in accumulated other comprehensive income of $496,000 , net income of $1.4 million , and shares of common stock purchased by the Standby Investor pursuant to the Securities Purchase Agreement.
Results of Operations for the Three Months Ended March 31, 2014 and 2013
Net Income
Net income for the three months ended March 31, 2014 was $1.4 million , or $0.17 per basic and diluted share, as compared to net income of $77,000 , or $0.01 per basic and diluted share, for the three months ended March 31, 2013 . The $1.3 million increase in profits is primarily due to declines in non-interest expenses.
Net Interest Income.
The primary component of earnings for the Bank is net interest income. Net interest income is the difference between interest income, principally from loan and investment securities, and interest expense, principally on customer deposits and borrowings. Changes in net interest income result from changes in volume, spread, and margin. For this purpose, volume refers to the average dollar level of interest-earning assets and interest-bearing liabilities, spread refers to the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities, and margin refers to net interest income divided by average interest-earning assets. Margin is influenced by the level and relative mix of interest-earning assets and interest-bearing liabilities, as well as by levels of non-interest-bearing liabilities and capital.
Net interest income for the three months ended March 31, 2014 was $5.4 million , as compared to $5.3 million for the quarter ended March 31, 2013 . Average interest earning assets declined $35.6 million primarily due to declines in both the loan and investment portfolio; however interest and dividend income remained fairly constant with a $56,000 decline period over period. Average interest bearing liabilities decreased $85.0 million from the quarter ended March 31, 2013 and average rates paid on these deposits increased 6 basis points from 1.43% to 1.49%. The net interest margin increased 21 basis points to 2.83% for the quarter ended March 31, 2014 as compared to 2.62% the quarter ended March 31, 2013.
[....]
http://ih.advfn.com/p.php?pid=nmona&article=62225511
Marker:
Four Oaks Fincorp, I (FOFN)
$1.96 down -0.07 (-3.45%)
Volume: 3,170
Four Oaks Fincorp, Inc. Announces 2014 First Quarter Results (4/21/14)
FOUR OAKS, N.C.--(BUSINESS WIRE)--Four Oaks Fincorp, Inc. (OTCBB:FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced the results for the first quarter of 2014. Net income for the quarter ended March 31, 2014 was $1.4 million compared to net income of $77,000 for the same period in 2013. The Company had net charge-offs of $73,000 during the three months ended March 31, 2014 as compared to $1.3 million in net charge-offs during the same period in 2013. Outstanding loans declined to $482.8 million at March 31, 2014 from $492.7 million at December 31, 2013. Nonaccrual loans were $28.2 million at March 31, 2014, an increase of $1.0 million from $27.2 million at December 31, 2013. Continued declines in charge offs, decreases in gross loans of $9.9 million, and higher reserves on impaired loans, resulted in an increase in the allowance for loan losses (ALLL) as a percentage of gross loans to 2.39% at March 31, 2014 from 2.35% at December 31, 2013. At March 31, 2014, 19.6% or $2.3 million of the $11.5 million ALLL represents specific reserves on impaired loans as compared to 15.1% or $1.8 million of the $11.6 million ALLL at December 31, 2013. Management believes that at March 31, 2014, the allowance for loan losses was adequate to absorb probable losses inherent in the loan portfolio. In 2014, our focus remains directed to removing nonperforming assets from the balance sheet.
The Bank was well capitalized at March 31, 2014, with total risk based capital of 11.5%, tier 1 risk based capital of 10.2%, and a leverage ratio of 5.7%. At December 31, 2013, the Bank had total risk based capital of 10.9%, tier 1 risk based capital of 9.7%, and a leverage ratio of 5.5%. The Company had total risk based capital of 11.0%, tier 1 risk based capital of 7.1%, and a leverage ratio of 3.9% at March 31, 2014, as compared to 10.7%, 6.3%, and 3.6%, respectively, at December 31, 2013. We recently executed a Securities Purchase Agreement with Kenneth R. Lehman, a private investor, pursuant to which we expect to raise over $20 million of new capital.
Asset Quality:
Total nonperforming assets were $35.7 million or 4.4% of total assets at March 31, 2014, as compared to $35.8 million or 4.4% of total assets at December 31, 2013. Nonperforming loans increased to $28.3 million at March 31, 2014 from $27.3 million at December 31, 2013. Foreclosed assets totaled $7.4 million at March 31, 2014, down from $8.5 million at December 31, 2013, due to $253,000 of additions, $1.1 million of sales, and $212,000 in write-downs. Troubled debt restructurings (TDRs) totaled $19.5 million at March 31, 2014, and were comprised of $12.9 million of nonperforming TDRs and $6.6 million of performing TDRs. This compares to total TDRs at December 31, 2013 of $21.3 million which were comprised of $14.3 million of non-performing TDRs and $7.0 million of performing TDRs. At both March 31, 2014 and December 31, 2013, the nonperforming TDRs were included in the totals for nonaccrual and nonperforming loans referenced above. At March 31, 2014, we were in partial compliance with the written agreement in place with our regulators, which calls for the Company to reduce problem assets and concentrations of credit, while also increasing capital.
Net Interest Income and Net Interest Margin:
Net interest income before the provision for loan losses totaled $5.4 million for the three months ended March 31, 2014, as compared to $5.3 million for the same period in 2013. Net interest margin annualized for the three months ended March 31, 2014 was 2.83% as compared to 2.62% as of March 31, 2013. Although improving, our net interest margin continues to suffer due to elevated levels of nonaccrual loans despite improvements in cost of funds. Interest expense declined to $2.0 million for the three months ended March 31, 2014 as compared to $2.3 million for the same period ended March 31, 2013, due to shift in deposit mix from time deposits to demand deposits and lower rates on new and renewing deposits.
Non-Interest Income:
Non-interest income was unchanged at $2.1 million for the three months ended March 31, 2014 and March 31, 2013. While the total was unchanged, each period did contain certain nonrecurring items which constituted the primary changes within non-interest income. During the 2014 period there was $538,000 in other non-interest income recorded resulting from settlements reached with certain third party payment processors, whereas in the 2013 period there was a deposit premium of $586,000 recognized from the sale of two branches to First Bank.
Non-Interest Expense:
Non-interest expense decreased $1.1 million to $6.2 million for the three months ended March 31, 2014 compared to $7.3 million for the three months ended March 31, 2013. This decrease resulted primarily from decreases in professional and consulting fees of $136,000, salaries and benefits of $421,000, and loan collection expenses of $175,000.
Balance Sheet:
Total assets were $816.2 million at March 31, 2014, a decrease of $5.3 million or 0.6% from $821.5 million at December 31, 2013. Cash and cash equivalents and investments were $297.1 million at March 31, 2014, an increase of $6.0 million or 2.1% from the total of $291.1 million at December 31, 2013. Gross loans were $482.8 million at March 31, 2014, a decrease of $9.9 million or 2.0% from the $492.7 million outstanding at December 31, 2013.
Total liabilities decreased $8.1 million or 1.0% from $799.9 million at December 31, 2013 to $791.8 million at March 31, 2014. Principally all of this decrease resulted from the decrease in deposits of $8.3 million or 1.3% from $657.6 million at December 31, 2013 to $649.3 million at March 31, 2014.
Total shareholders' equity increased $2.8 million to $24.4 million at March 31, 2014 from $21.6 million at December 31, 2013. This increase resulted primarily from net income of $1.4 million and the sale of $875,000 of common stock to Kenneth R. Lehman, the private investor mentioned earlier. Book value per share increased to $2.75 per share at March 31, 2014 compared to $2.71 per share at December 31, 2013.
Chairman, President, and Chief Executive Officer, Ayden R. Lee, Jr. states, “It is very exciting to report quarterly net income of $1.4 million. We have many positive initiatives underway in 2014 as we welcome shareholder Kenneth R. Lehman to our Four Oaks Bank family. The support of our shareholders, customers, and employees is vital to our success and, as always, is greatly appreciated.”
With $816.2 million in total assets as of March 31, 2014, 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, Harrells, Zebulon, Dunn, Raleigh, 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/20140421005915/en/Oaks-Fincorp-Announces-2014-Quarter-Results#.U1XG3a1OWUk
Followers
|
0
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
117
|
Created
|
07/14/13
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |