Friday, February 7, 2014

CommunityOne gets closer to profitability in 2013

Charlotte-based CommunityOne bank inched closer to profitability in 2013, reporting Friday a net loss of $1.5 million for the year. That's up from a $40 million loss the year before.

CommunityOne earned $2.3 million in the fourth quarter, reversing a $6.3 million loss from the same time period a year ago. It was the second profitable quarter in a row for the bank. In the third quarter, CommunityOne recorded its first quarter of profitability since 2008.

The bank has been in rebuilding mode since 2011, when Bank of Granite and CommunityOne were forced together as each were in danger of failing. The two merged as part of a $310 million recapitalization, and two former First Union executives were brought in to run the bank.

The past year was an eventful one in the bank's recovery. The FDIC lifted its consent order against Bank of Granite in March, and the OCC followed suit with CommunityOne's order in June. That allowed the merger of the two to be finalized. Federal prosecutors in Charlotte also formally dismissed charges stemming from an anti-money-laundering investigation. The bank had been in a deferred prosecution agreement.

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