2019 Bank Annual Report
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2019 Ray Grace Commissioner of Banks State of North Carolina OFFICE OF THE COMMISSIONER OF BANKS Roy Cooper Ray Grace GOVERNOR COMMISSIONER OF BANKS To The Honorable Roy Cooper, Governor of North Carolina: I hereby respectfully submit the 2019 Annual Report of the Commissioner of Banks. The report provides financial information for the calendar year ended December 31, 2019, regarding North Carolina state-chartered commercial banks, savings banks and nondepository trust companies under supervision of the Office of the Commissioner of Banks. During 2019, North Carolina state-chartered banks showed continued signs of improvement and experienced a generally favorable year. Aggregate total assets of North Carolina state-chartered banks increased significantly during the year, primarily due to the merger of SunTrust Bank, Atlanta, Georgia, and Branch Banking and Trust Company (“BB&T”), Winston-Salem. The combination of these two institutions to form Truist Bank, headquartered in Charlotte, increased aggregate total assets in North Carolina by approximately $242 billion. Apart from the impact of this merger, several other institutions in the state realized healthy growth rates during the year. The following five banks each attained 15 percent or more growth in total assets: First Capital Bank, Laurinburg; Live Oak Banking Company, Wilmington; First Carolina Bank, Rocky Mount; Dogwood State Bank, Raleigh; and blue harbor bank, Mooresville. Also noteworthy for the year was the opening of American Bank of the Carolinas, headquartered in Monroe, the first de novo bank in North Carolina since 2009. Overall asset quality of North Carolina’s state-chartered banks and savings institutions improved during 2019. The aggregate delinquency ratio, a measurement of past-due and nonaccrual loans and leases to total loans and leases, declined from 1.58 percent to 1.35 percent. However, the aggregate level of Other Real Estate Owned, an asset comprised of foreclosed real estate, increased slightly during the year. The majority of North Carolina’s state-chartered institutions maintained favorable levels of profitability, although some key ratios declined during the year. In 2019, the ratio of net income to average total assets declined from 0.89 percent to 0.63 percent, while the net interest margin dropped from 3.90 percent to 3.80 percent. These declines are largely attributable to the challenges of operating in a low interest rate environment. Most institutions are well-capitalized and are important contributors to the communities and markets they serve. The Office of the Commissioner of Banks remains committed to and is focused on ensuring that all institutions under its supervision operate in a safe and sound manner, with adequate capital and capable management. Detailed information on each bank is provided in the Bank Directory Section of this report. As a convenience to the public and the banking industry, this report is also available on the Commissioner of Banks’ website at http://www.nccob.gov. Respectfully submitted, Ray Grace Commissioner of Banks Location: 316 W. Edenton Street, Raleigh, NC 27603 Mailing Address: 4309 Mail Service Center, Raleigh, NC 27699-4309 (919)733-3016 Fax: (919)733-6918 Internet: http://www.nccob.gov An Equal Opportunity/Affirmative Action Employer Table of Contents Aggregate Data...................................................................................................................... 1 Bank Directory.........................................................................................................................3 State Trust Companies.......................................................................................................... 16 Bank Charter and Office Activity............................................................................................. 20 Legislative Summary...............................................................................................................101 NC State-Chartered Banks Aggregate Report of Condition ASSETS* 2019 2018 2017 2016 2015 2014 Cash and due from depository institutions 22,240 7,021 6,486 9,031 8,576 5,584 Securities 86,232 56,402 58,388 58,480 56,839 54,087 Federal funds sold and resell agreements 272 29 50 63 54 69 Total loans and leases 354,632 191,341 185,105 203,456 181,378 158,675 Less: loan loss allowance 1,709 1,709 1,639 1,794 1,725 1,804 Trading account assets 5,302 152 579 627 821 658 Net fixed assets including capital leases 6,945 3,853 3,669 4,235 3,826 3,413 Other real estate owned 177 140 166 333 366 488 Intangible assets 30,344 12,201 11,814 12,706 10,739 8,700 All other assets 26,658 14,343 15,283 15,782 14,712 13,864 Total assets 531,651 284,181 279,901 302,919 275,586 243,732 LIABILITIES AND CAPITAL* 2019 2018 2017 2016 2015 2014 Total deposits 407,259 223,648 217,171 240,367 215,575 188,139 Federal funds and repurchase agreements 1,098 672 2,405 1,687 3,059 2,329 All other interest-bearing liabilities 35,690 17,233 17,597 14,026 14,091 15,334 All other liabilities 15,866 7,756 8,322 8,627 9,706 8,699 Equity capital 71,737 34,872 34,406 38,212 33,155 29,231 Total liabilities, preferred stock, and equity 531,651 284,181 279,901 302,919 275,586 243,732 1 NC State-Chartered Banks Aggregate Report of Income INCOME STATEMENT* 2019 2018 2017 2016 2015 2014 Total tax-exempt interest income 202 196 293 323 287 285 Total taxable interest income 11,068 9,636 8,552 9,024 7,807 7,413 Total noninterest income 5,590 5,214 5,422 4,980 4,436 3,891 Total interest expense 1,998 1,336 780 809 746 803 Total noninterest expense 9,190 8,335 8,944 8,848 7,980 7,364 Provision for loan and lease losses 395 363 268 362 217 115 Realized gains (losses) on securities (107) 1 (4) 69 16 0 Applicable income taxes 1,021 977 1,245 1,335 964 859 Net extraordinary gains (losses) (13) (20) (21) (17) (40) (105) Net income (loss) 4,165 4,014 3,006 3,025 2,600 2,341 OTHER DATA 2019 2018 2017 2016 2015 2014 Number of institutions reporting 38 38 42 52 53 56 Number of unprofitable institutions 5 2 3 1 3 6 Noncurrent loans and leases 4,201 1,470 1,575 1,859 1,845 2,035 Restructured loans and leases 731 887 834 1,041 999 1,129 AVERAGE RATIOS 2019 2018 2017 2016 2015 2014 Equity capital to total assets 14.64 12.63 12.64 11.99 11.72 11.33 Delinquency ratio 1.35 1.58 1.61 1.89 2.19 2.55 Liquidity ratio 26.30 23.72 24.62 23.77 24.54 26.32 Yield on average earning assets (TE**) 4.64 4.53 4.17 4.18 4.22 4.28 Cost of funds 1.10 0.81 0.61 0.59 0.60 0.66 Net interest margin (TE**) 3.80 3.90 3.68 3.71 3.73 3.73 Efficiency ratio 87.82 73.10 75.67 77.93 80.74 80.47 Net income to average total assets 0.63 0.89 0.67 0.66 0.70 0.62 * Amounts Rounded to Millions of Dollars ** (TE) Tax-Equivalent 2 Alliance Bank & Trust Company Gastonia Daniel M. Boyd, IV 292 W. Main Avenue, 28052 President and Chief Executive Officer (704) 865-1634 www.alliancebanknc.com Assets (000) Liabilities and Equity (000) Cash and balances due from depository institutions $24,198 Deposits $143,368 Securities $23,685 Federal funds purchased and repurchase agreements $0 Federal funds sold and resell agreements $0 Other borrowed money $0 Net loans and leases $105,044 Other liabilities $632 Net fixed assets including capital leases $3,221 Total liabilities $144,000 Other real estate owned $0 Total equity $13,298 Intangible assets $0 Total liabilities and equity $157,298 Other assets $1,150 Total Assets $157,298 2019 Earnings $1,044 American Bank of the Carolinas Monroe William R. Adcock 3302-A Highway 74 West, 28110 President and Chief Executive Officer 704-996-5011 www.abt-nc.com/ Assets (000) Liabilities and Equity (000) Cash and balances due from depository institutions $23,514 Deposits $23,311 Securities $3,958 Federal funds purchased and repurchase agreements $0 Federal funds sold and resell agreements $3,097 Other borrowed money $0 Net loans and leases $12,910 Other liabilities $37 Net fixed assets including capital leases $418 Total liabilities $23,348 Other real estate owned $0 Total equity $20,712 Intangible assets $0 Total liabilities and equity $44,060 Other assets $163 Total Assets $44,060 2019 Earnings -$2,359 Aquesta Bank Cornelius James C. Engel, Jr. 19510 Jetton Rd., 28031 President and Chief Executive Officer (704) 439-4343 www.aquesta.com Assets (000) Liabilities and Equity (000) Cash and balances due from depository institutions $17,728 Deposits $421,084 Securities $56,737 Federal funds purchased and repurchase agreements $0 Federal funds sold and resell agreements $1,729 Other borrowed money $46,540 Net loans and leases $411,952 Other liabilities $2,836 Net fixed assets including capital leases $16,939 Total liabilities $470,460 Other real estate owned $0 Total equity $53,146 Intangible assets $28 Total liabilities and equity $523,606 Other assets $18,493 Total Assets $523,606 2019 Earnings $4,436 3 Bank of Oak Ridge Oak Ridge Thomas W. Wayne 2211 Oak Ridge Rd., 27310 Chief Executive Officer (336) 644-9944 www.bankofoakridge.com Assets (000) Liabilities and Equity (000) Cash and balances due from depository institutions $20,910 Deposits $399,356 Securities $41,914 Federal funds purchased and repurchase agreements $0 Federal funds sold and resell agreements $0 Other borrowed money $16,336 Net loans and leases $386,056 Other liabilities $5,560 Net fixed assets including capital leases $11,043 Total liabilities $421,252 Other real estate owned $0 Total equity $50,892 Intangible assets $0 Total liabilities and equity $472,144 Other assets $12,221 Total Assets $472,144 2019 Earnings