Four Oaks Bank & Trust (fka FOFN)

[56Chevy]

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

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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.

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Marker:
Four Oaks Fincorp, I (FOFN)
$1.96 down -0.07 (-3.45%)
Volume: 3,170