Four Oaks Bank Announces Third Quarter Earnings

President and Chief Executive Officer David H. Rupp
President and Chief Executive Officer David H. Rupp

Four Oaks Fincorp, Inc., the holding company for Four Oaks Bank & Trust Company, announced Wednesday the results for the third quarter and nine months ended September 30, 2015. For the three months ended September 30th, the bank 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 bank 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.

“We continue to make progress in the execution of our strategic plan,” President and Chief Executive Officer David H. Rupp stated. “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 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 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.

With $714.5 million in total assets as of September 30, 2015, 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.