OTC Markets Group (OTCM): Tell us about your company.
Deanna W. Hart: Four Oaks Fincorp, Inc. was formed in 1997 to serve as the holding company for Four Oaks Bank, which was incorporated in 1912. We are a $700 million-in-assets community bank with offices in central and eastern North Carolina, offering a wide range of commercial banking products through multiple delivery channels. We re-capitalized in 2014 and have now fully transitioned our balance sheet and leadership team to position us for future growth.
OTCM: What were your major accomplishments in 2016?
Ms. Hart: In 2016, we experienced double-digit loan and deposit growth in our core markets and have returned to sustained profitability with a 50% increase in pre-tax income. Risk management improved in the areas of credit, interest rate, operating, regulation and technology and, as mentioned earlier, we fully transitioned our leadership team. Additionally, we upgraded our technology platform, repositioned our balance sheet and strengthened our credit culture as asset quality measures have now stabilized.
OTCM: What is your strategy for growth in 2017?
Ms. Hart: Our goal for 2017 is to continue organic growth in our core markets by improving our delivery and taking our customers’ view on all transactions. We are reviewing ways we can enhance the customer experience while ensuring our processes are as efficient as possible.
We plan to add new products, technology, and delivery channels to ensure we offer competitive solutions that allow customers to access their accounts in any method they choose. We are also working to target specific customer segments in which we exhibit the core competencies to effectively serve them.
OTCM: Four Oaks celebrates 2 years on OTCQX this month (February). What has been your experience trading on OTCQX and how have you leveraged the market as part of your overall IR program?
Ms. Hart: We have been pleased with the move to OTCQX. The OTCQX market has allowed greater transparency in trading activity and we believe it has increased liquidity in our stock, which has increased in price more than 75% in the past 12 months.
OTCM: What else do you want investors to know about Four Oaks?
Ms. Hart: We are a 100+ year–old community bank that strives to remain relevant in an ever-changing market. We are excited about the growth opportunities ahead of us and operate in great markets, including Raleigh, NC – one of the fastest growing cities in the U.S. We have many initiatives underway to improve the products we offer, the ways in which we deliver and to improve ongoing productivity.
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