The parent company of Asheville Savings Bank reported a decline in second quarter earnings due to expenses related to its acquisition by First Bancorp, according to a filing Friday with the Securities and Exchange Commission.
ASB Bancorp Inc.’s second quarter net income was $1.2 million, or 31 cents per share, compared to net income of $1.7 million, or 45 cents per share.
In May, the bank agreed to be acquired by First Bancorp, the parent of First Bank in Southern Pines, for $175 million. Merger-related expenses totaled $520,000 before taxes.
“Second quarter net interest income increased and net interest margin expanded over each of the previous four quarters,” said Chief Executive Officer Suzanne DeFerie in a statement. “Asset quality continued to improve during the quarter, in addition to modest growth in average loans and average deposits since the first quarter of 2017.”
Net interest income increased 10.4 percent to $6.5 million for the three months ended June 30.
Noninterest income decreased 29 percent to $1.8 million for the second quarter of 2017 from $2.5 million for the second quarter of 2016, primarily due to decreases in gains realized from the sale of investment securities.
Total assets increased $5.6 million, or 0.7 percent, to $801.4 million at the end of the second quarter.
The bank, founded in 1936, has 13 full-service branches located in Buncombe, Madison, McDowell, Henderson and Transylvania counties in western North Carolina.
The bank’s stock fell 55 cents to $44.45 on Friday.