Banking

CommunityOne posts lower 2nd-quarter profits

CommunityOne Bank president Bob Reid at the bank’s headquarters.
CommunityOne Bank president Bob Reid at the bank’s headquarters. dlaird@charlotteobserver.com

CommunityOne Bancorp said Thursday its second-quarter profit fell about 10 percent from a year ago, as higher tax costs weighed on the Charlotte-based lender’s results.

The parent of CommunityOne Bank made $2.5 million in profit, down from $2.8 million in the same quarter last year. Earnings per share were 10 cents, compared with 13 cents a year ago.

Interest income increased as the lender expanded its commercial, real estate and residential mortgage lending capacity in the Charlotte, Raleigh/Durham and Greensboro areas. The company’s interest income rose to $19.3 million, up about 6 percent from a year ago.

The bank also grew its deposits as it completed its purchase during the quarter of a CertusBank branch in Lenoir and assumed deposits from CertusBank’s Lenoir and Granite Falls branches.

Higher costs from income taxes were a drag on CommunityOne’s profitability. It recorded $1.4 million in income tax expenses in the quarter, compared with $236,000 a year ago.

Non-interest income, a category that includes fees charged to customers, fell about 15 percent, to $4.2 million.

“We continue to be pleased with the progress we are making and are especially excited about the loan growth we are seeing in the Charlotte, Raleigh and Greensboro markets,” CommunityOne President Bob Reid said in a statement.

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