CresCom fuels profit gain at Charleston bank owner Carolina Financial

CresCom Bank doubled it branch network in April.

Carolina Financial Corp. reported a 74 percent jump in second-quarter net income from a year ago, driven primarily by gains at its expanding CresCom Bank subsidiary.

The Charleston-based holding company said earnings for the April-June period, were $3.9 million, or 41 cents a share.

“It was really one of the best quarters production-wise we’ve had in a long time,” Carolina Financial CEO Jerry Rexroad said.

CresCom accounted for $2.8 million of the earnings, a 56 percent increase from the second quarter last year. The most recent period included results from 13 retail offices the bank purchased in April, mostly in southeastern North Carolina. That deal doubled CresCom’s branch network.

“The acquisition ... obviously was very beneficial for us, but we also had really great loan growth and growth in checking operations,” Rexroad said.

Crescent Mortgage, a national Atlanta-based wholesale home loan business that Carolina Financial owns, also reported improved results for the second quarter. Its net income more than doubled to $1.32 million.

For the first six month of the year, profits at Carolina Financial totaled $6.9 million, up 64 percent from the first half of 2014.

“I’d say we’re pleased,” Rexroad said.

We're starting a weekly newsletter about the business stories that are shaping Charleston and South Carolina. Get ahead with us - it's free.

With assets of nearly $1.3 billion, Carolina Financial is the largest bank owner based in the Charleston region. It received approval from the Federal Deposit Insurance Corp. this month to open a full-service CresCom branch in Greenville later this year.

Contact John McDermott at 937-5572.