Carolina Bank Holdings, Inc. Reports EPS of $0.32 for the Second Quarter of 2015

GREENSBORO, N.C., July 30, 2015 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (NASDAQ:CLBH) today reported second quarter 2015 results with highlights as follows:

2nd Quarter 2015 Financial Highlights

• Net income of $1,666,000 in the second quarter of 2015 increased 122.1% from $750,000 in the second quarter of 2014.
• Net income available to common shareholders increased 212.5% to $1,572,000 in the second quarter of 2015 from $503,000 in the second quarter of 2014.
• Diluted net income per common share was $0.32 in the second quarter of 2015 compared to $0.15 in the second quarter of 2014.
• Convertible preferred stock, which was issued on March 31, 2015, was converted into 1,550,000 shares of new common stock in May of 2015.
• Series A preferred stock of $11.0 million was retired using a majority of the net proceeds of $14.1 million raised in the convertible preferred stock private placement.
• Average non-interest bearing demand deposits increased 31.5% in the second quarter of 2015 from the second quarter of 2014.
• Non-performing assets were $17.1 million, or 2.50% of assets, at June 30, 2015 compared to $16.9 million, or 2.52% of assets, at June 30, 2014.
• Classified loans decreased to $18.5 million at June 30, 2015 from $20.1 million at June 30, 2014.
• The Mortgage Division realized net income of $649,000 in the second quarter of 2015 compared to a loss of $183,000 in the second quarter of 2014.

Robert T. Braswell, President and CEO, commented, "I am pleased to report that our remaining $11 million in Series A preferred stock with a 9% per annum dividend rate was repurchased and retired in May 2015, which will eliminate approximately $1 million per year in dividend payments. Our Series B convertible preferred stock, which was issued on March 31, 2015 in a private placement offering, was also converted to common stock in May after an affirmative vote by our stockholders. The above actions have improved our capital position and provide a base for future growth."

"Our diluted earnings per share which totaled $1.25 over the last four quarters and $0.32 in the second quarter of 2015 reflect our success in executing our business plans. The growth of over 31% in our average non-interest bearing demand accounts in the past year validates that our emphasis on exceptional customer service has enhanced our relationships with customers," said Braswell.

Braswell further commented, "It is with great pleasure that I announce that J. Alexander S. Barrett, a Partner with Hagan Barrett Langley, PLLC, practicing in the areas of complex business and commercial litigation and employment law, was unanimously elected as Chairman of the Board. Alex has been a Board member since 2004 and has chaired a number of committees. I would also like to thank Gary N. Brown, who was a founding director, for his outstanding service as our Chairman for six years and prior service as Vice Chairman for twelve years. Gary will continue on the Board and has agreed to serve again as Vice Chairman."

About the Company

Carolina Bank, the banking subsidiary of Carolina Bank Holdings, Inc. began banking operations on November 25, 1996. The parent company is a North Carolina corporation organized in 2000. The bank is engaged in lending and deposit gathering activities in the Piedmont Triad of North Carolina, with operations in four counties: Guilford, Alamance, Forsyth and Randolph. The bank has eight full-service banking locations, four in Greensboro, one in Asheboro, one in High Point, one in Burlington, and one in Winston-Salem. Our Greensboro Friendly Center branch will close on July 31, 2015 due to an expiring lease in late 2015. Our second full-service office in Winston-Salem, currently under construction, will open in August of 2015. Residential mortgage loan production offices are located in Burlington, Chapel Hill, Pinehurst, and Sanford in addition to a wholesale residential mortgage operation in Greensboro. The Company's stock is listed on the NASDAQ Global Market under the symbol CLBH. Further information is available on the Company's web site: www.carolinabank.com.

This press release contains forward-looking statements regarding future events. These statements are only predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include risks of managing our growth, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to be materially different from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission. Carolina Bank Holdings, Inc. undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.