Tuesday, July 29, 2014

CommunityOne posts profit in 2nd quarter

Charlotte-based CommunityOne Bancorp on Tuesday reported profit of $2.8 million in the second quarter, an improvement over the $3.2 million loss it posted in the same time period last year.

The better results came as the holding company of CommunityOne Bank reported lower expenses in the quarter compared with the same period a year ago. Costs in the second quarter of last year, such as those associated a merger and foreclosure properties, weighed on the bank's earnings.

The recent second quarter marked the fourth profitable quarter in a row for the lender, which has struggled to become profitable since the financial crisis.

“Overall, I continued to be very pleased with our performance and loan growth is occurring in all lines of business,” CommunityOne President Bob Reid said in a statement.

As the bank seeks to further grow its lending, it is expanding its footprint. Last month, it opened a real estate and commercial loan production office in Raleigh. Also last month, it hired a residential mortgage sales
manager focused on Charlotte and other metro areas in North Carolina.

This month, the lender hired four commercial bankers in Greensboro and two commercial bankers for a real estate and commercial loan production office in Winston-Salem.

The bank, formerly known as FNB United, changed its name to CommunityOne Bancorp last year after it completed the merger of its two banks, Granite Falls-based Bank of Granite and Asheboro-based CommunityOne Bank, in a move to help it return to profitability.

The merger costs affected its second quarter results last year. Expenses stemming from distressed properties also affected second quarter results last year, but the bank continues to see a declined in the amount of those loans on its books.

Like other many other banks, CommunityOne reported lower mortgage-related income in the second quarter compared with the same period a year ago. Banks nationwide are reporting a decline in income from their mortgage operations after interest rates that started rising last year lowered demand for mortgages.

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