GREENSBORO, N.C., Aug. 2, 2010 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported second quarter 2010 results with highlights as follows:
Second Quarter 2010 Financial Highlights
- Assets increased 4.3% to $704.3 million at June 30, 2010 from $675.2 million at June 30, 2009. Assets increased 1.0% during the first six months of 2010.
- Carolina Bank, the only subsidiary of Carolina Bank Holdings, Inc., continued to maintain "Well Capitalized" status, the highest regulatory capital measure.
- Net interest income, computed on a fully taxable basis, reached an all time quarterly high of $5.75 million in the second quarter of 2010, up 19.7% from the second quarter of 2009.
- The net interest margin, computed on a fully taxable basis, increased to 3.50% in the second quarter of 2010 compared to 3.15% in the second quarter of 2009.
- The mortgage division earned $0.52 million in the second quarter and $0.93 million in the first six months of 2010 due to lower interest rates and an expanding market.
- Net loss was $1.57 million in the second quarter of 2010 compared to net income of $0.34 million in the second quarter of 2009.
- Net loss allocable to common stockholders was $1.86 million, or ($0.55) per diluted share, in the second quarter of 2010 compared net income available to shareholders of $0.05 million, or $0.02 per diluted share, in the second quarter of 2009.
- Provision for loan losses increased to $4.7 million in the second quarter of 2010 from $2.0 million in the same quarter of 2009. Asset impairments were $0.96 million and $0.51 million in the second quarters of 2010 and 2009, respectively.
Net loss allocable to common stockholders was $1.84 million, or ($0.54) per diluted common share, in the first six months of 2010 compared to net income available to common shareholders of $0.46 million, or $0.14 per diluted common share, in first half of 2009. Robert T. Braswell, President and CEO of Carolina Bank Holdings, commented, "We continued to increase our net interest income, which reached an all-time high in the second quarter, through our emphasis on building profitable relationships with our customers. Our mortgage division is performing at a very high level and earned $0.52 million in the second quarter and $0.93 million in the first six months of 2010. With the softness in interest rates, a recent major increase in applications signals a strong third quarter for the mortgage division. It is also a pleasure to welcome Michelle Roten, former CEO and owner of Hallmark Residential Mortgage, and her team who joined the bank on July 1, 2010. Michelle and her team will help facilitate the growth of our retail market share in the Triad through an expanded retail mortgage presence."
Non-performing loans to total loans held for investment increased to 4.63% at June 30, 2010 from 3.68% at March 31, 2010. Non-performing assets to total assets increased to 4.62% at June 30, 2010 from 4.42% at March 31, 2010. Braswell commented, "The current economic times have challenged some of our customers and we are disappointed in our level of non-performing loans. We have adopted a more conservative loan loss methodology suggested by the FDIC in the second quarter which resulted in acceleration of loan charge-offs and in a higher provision for loan losses than would have been experienced under our former loan loss model. We have dedicated more resources to problem loan resolution and have strengthened our commercial underwriting to improve our loan quality in the future." The bank had net loan charge-offs of $5.13 million and $1.23 million in the second quarter of 2010 and 2009, respectively. The allowance for loan losses was 1.93% and 1.42% of loans held for investment at June 30, 2010 and 2009, respectively.
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, North Carolina. A mortgage loan production office was opened in Burlington in July 2010. 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.
| Carolina Bank Holdings, Inc. and Subsidiary | |||
| Consolidated Balance Sheets | |||
| At June 30, 2010 and 2009 and December 31, 2009 | |||
| (unaudited) | |||
| June 30, | December 31, | ||
| 2010 | 2009 | 2009 | |
| ASSETS | |||
| Cash and due from banks | $ 6,038 | $ 17,256 | $ 6,416 |
| Short-term investments and interest-earning deposits | 30,942 | 21 | 34,039 |
| Total cash and cash equivalents | 36,980 | 17,277 | 40,455 |
| Securities available for sale, at fair value | 48,572 | 55,149 | 52,924 |
| Securities held-to-maturity, at amortized cost | 681 | 933 | 770 |
| Loans held for sale | 46,207 | 36,606 | 29,388 |
| Loans | 533,486 | 532,954 | 530,606 |
| Allowance for loan losses | (10,270) | (7,560) | (10,081) |
| Net loans | 523,216 | 525,394 | 520,525 |
| Premises and equipment, net | 18,965 | 19,415 | 19,351 |
| Other assets | 29,719 | 20,418 | 33,639 |
| Total assets | $ 704,340 | $ 675,192 | $ 697,052 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| LIABILITIES | |||
| Deposits: | |||
| Noninterest-bearing | $ 42,132 | $ 31,754 | $ 39,261 |
| Interest-bearing | 584,395 | 527,036 | 578,210 |
| Total deposits | 626,527 | 558,790 | 617,471 |
| Short-term borrowings | 5,240 | 2,138 | 683 |
| Federal Home Loan Bank advances | 2,744 | 41,821 | 7,783 |
| Subordinated debentures | 19,377 | 19,302 | 19,360 |
| Other liabilities | 4,093 | 4,199 | 3,807 |
| Total liabilities | 657,981 | 626,250 | 649,104 |
| STOCKHOLDERS' EQUITY | |||
|
Preferred stock, no par, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2010 and 2009 |
14,639 | 14,313 | 14,473 |
|
Common stock, $1 par value, 20,000,000 shares authorized; issued and outstanding -- 3,387,045 shares in 2010 and 2009 |
3,387 | 3,387 | 3,387 |
| Common stock warrants | 1,841 | 1,841 | 1,841 |
| Additional paid-in capital | 15,817 | 15,780 | 15,799 |
| Retained earnings | 9,603 | 13,355 | 11,445 |
| Stock in director rabbi trust | (608) | (758) | (874) |
| Directors deferred fees obligation | 608 | 758 | 874 |
| Accumulated other comprehensive income | 1,072 | 266 | 1,003 |
| Total stockholders' equity | 31,720 | 34,629 | 33,475 |
| Total liabilities and stockholders' equity | $ 689,701 | $ 660,879 | $ 682,579 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Operations | ||||
| For the three and six months ended June 30, 2010 and 2009 | ||||
| (unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 7,543 | $ 7,414 | $ 15,019 | $ 14,627 |
| Investment securities, taxable | 420 | 533 | 882 | 1,126 |
| Investment securities, non taxable | 164 | 135 | 326 | 258 |
| Interest from federal funds sold and other | 22 | 1 | 44 | 1 |
| Total interest income | 8,149 | 8,083 | 16,271 | 16,012 |
| Interest expense | ||||
| NOW, money market, savings | 926 | 1,134 | 1,916 | 2,114 |
| Time deposits | 1,328 | 1,898 | 2,711 | 4,170 |
| Other borrowed funds | 225 | 311 | 454 | 676 |
| Total interest expense | 2,479 | 3,343 | 5,081 | 6,960 |
| Net interest income | 5,670 | 4,740 | 11,190 | 9,052 |
| Provision for loan losses | 4,700 | 2,036 | 6,688 | 3,231 |
|
Net interest income after provision for loan losses |
970 | 2,704 | 4,502 | 5,821 |
| Non-interest income | ||||
| Service charges | 235 | 248 | 451 | 498 |
| Mortgage banking income | 2,187 | 2,798 | 3,936 | 4,608 |
| Gains on sale of investment securities | 55 | -- | 185 | 235 |
| Repossessed asset gains (losses) | (140) | 51 | (267) | 51 |
| Other | 165 | 139 | 330 | 246 |
| Total non-interest income | 2,502 | 3,236 | 4,635 | 5,638 |
| Non-interest expense | ||||
| Salaries and benefits | 2,810 | 2,520 | 5,384 | 4,963 |
| Occupancy and equipment | 598 | 576 | 1,206 | 1,169 |
| Professional fees | 342 | 252 | 602 | 600 |
| Outside data processing | 216 | 201 | 457 | 406 |
| FDIC insurance | 262 | 623 | 519 | 720 |
| Advertising and promotion | 91 | 132 | 250 | 290 |
| Stationery, printing and supplies | 132 | 173 | 246 | 285 |
| Impairment of investment security | -- | 514 | -- | 765 |
| Impairment of repossessed assets | 962 | -- | 1,469 | -- |
| Other | 759 | 517 | 1,317 | 787 |
| Total non-interest expense | 6,172 | 5,508 | 11,450 | 9,985 |
| Income (loss) before income taxes | (2,700) | 432 | (2,313) | 1,474 |
| Income tax expense (benefit) | (1,132) | 97 | (1,044) | 474 |
| Net income (loss) | (1,568) | 335 | (1,269) | 1,000 |
| Dividends and accretion on preferred stock | 288 | 284 | 573 | 538 |
|
Net income (loss) available (allocable) to common stockholders |
$ (1,856) | $ 51 | $ (1,842) | $ 462 |
| Net income (loss) per common share | ||||
| Basic | $ (0.55) | $ 0.02 | $ (0.54) | $ 0.14 |
| Diluted | $ (0.55) | $ 0.02 | $ (0.54) | $ 0.14 |
| Carolina Bank Holdings, Inc. | |||||||||||
| Consolidated Financial Highlights | |||||||||||
| Second Quarter 2010 | |||||||||||
| (unaudited) | |||||||||||
| Quarterly | Year Ended | ||||||||||
| 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | |||||||
| ($ in thousands except for share data) | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | ||||
| EARNINGS | |||||||||||
| Net interest income | $ 5,670 | 5,520 | 5,538 | 5,115 | 4,740 | 19,705 | 14,727 | ||||
| Provision for loan loss | $ 4,700 | 1,988 | 5,552 | 1,737 | 2,036 | 10,520 | 1,910 | ||||
| NonInterest income | $ 2,502 | 2,133 | 2,635 | 1,579 | 3,242 | 10,550 | 4,609 | ||||
| NonInterest expense | $ 6,172 | 5,278 | 5,053 | 4,841 | 5,514 | 20,577 | 14,058 | ||||
| Net income (loss) | $ (1,568) | 299 | (1,527) | 169 | 335 | (358) | 2,194 | ||||
| Net income (loss) available to common stockholders | $ (1,856) | 14 | (1,802) | (108) | 51 | (1,448) | 2,194 | ||||
| Basic earnings (loss) per share | $ (0.55) | 0.01 | (0.53) | (0.03) | 0.02 | (0.43) | 0.66 | ||||
| Diluted earnings (loss) per share | $ (0.55) | 0.01 | (0.53) | (0.03) | 0.02 | (0.43) | 0.65 | ||||
| Average shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,383,748 | 3,344,010 | ||||
| Average diluted shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,385,102 | 3,386,631 | ||||
| PERFORMANCE RATIOS | |||||||||||
| Return on average assets * | -1.06% | 0.01% | -1.03% | -0.06% | 0.03% | -0.22% | 0.39% | ||||
|
Return on average common equity * |
-22.46% | 0.17% | -20.42% | -1.22% | 0.60% | -4.21% | 7.13% | ||||
| Net interest margin (fully-tax equivalent) * | 3.50% | 3.54% | 3.41% | 3.25% | 3.15% | 3.20% | 2.82% | ||||
| Efficiency ratio | 74.80% | 68.24% | 61.30% | 71.55% | 68.55% | 67.42% | 72.09% | ||||
| # full-time equivalent employees - period end | 147 | 143 | 140 | 136 | 136 | 140 | 119 | ||||
| CAPITAL | |||||||||||
| Equity to ending assets | 6.58% | 6.83% | 6.88% | 7.39% | 7.25% | 6.88% | 5.12% | ||||
| Common tangible equity to assets | 4.50% | 4.77% | 4.80% | 5.26% | 5.13% | 4.80% | 5.12% | ||||
| Tier 1 leverage capital ratio - Bank | 7.23% | 7.54% | 7.45% | 7.84% | 8.10% | 7.45% | 7.00% | ||||
| Tier 1 risk-based capital ratio - Bank | 8.55% | 8.59% | 8.50% | 8.82% | 8.86% | 8.50% | 7.62% | ||||
| Total risk-based capital ratio - Bank | 11.34% | 11.34% | 11.24% | 11.48% | 11.61% | 11.24% | 10.29% | ||||
| Book value per common share | $ 9.37 | 9.91 | 9.88 | 10.52 | 10.22 | 9.88 | 9.43 | ||||
| ASSET QUALITY | |||||||||||
| Net charge-offs (recoveries) | $ 5,126 | 1,372 | 2,509 | 2,259 | 1,225 | 6,199 | 682 | ||||
| Net charge-offs to average loans * | 3.80% | 1.03% | 1.88% | 1.73% | 0.94% | 1.19% | 0.15% | ||||
| Allowance for loan losses | $ 10,270 | 10,697 | 10,081 | 7,038 | 7,560 | 10,081 | 5,760 | ||||
| Allowance for loan losses to loans held invst. | 1.93% | 2.00% | 1.90% | 1.33% | 1.42% | 1.90% | 1.15% | ||||
| Nonperforming loans | $ 24,721 | 19,636 | 14,163 | 14,407 | 16,829 | 14,163 | 5,656 | ||||
| Restructured loans | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Repossessed assets | $ 7,792 | 11,507 | 13,964 | 7,676 | 5,329 | 13,964 | 728 | ||||
| Nonperforming loans to loans held for investment | 4.63% | 3.68% | 2.67% | 2.71% | 3.16% | 2.67% | 1.13% | ||||
| Nonperforming assets to total assets | 4.62% | 4.42% | 4.04% | 3.26% | 3.28% | 4.04% | 1.04% | ||||
| END OF PERIOD BALANCES | |||||||||||
| Total assets | $ 704,340 | 704,085 | 697,052 | 676,826 | 675,192 | 697,052 | 616,611 | ||||
| Total loans held for investment | $ 533,486 | 534,045 | 530,606 | 530,791 | 532,954 | 530,606 | 501,424 | ||||
| Total deposits | $ 626,527 | 625,730 | 617,471 | 594,863 | 558,790 | 617,471 | 498,064 | ||||
| Stockholders' equity | $ 46,359 | 48,112 | 47,948 | 50,017 | 48,942 | 47,948 | 31,576 | ||||
| AVERAGE BALANCES | |||||||||||
| Total assets | $ 700,598 | 691,406 | 694,529 | 679,780 | 654,900 | 665,555 | 557,283 | ||||
| Total earning assets | $ 658,491 | 641,861 | 651,733 | 633,107 | 612,353 | 624,031 | 527,958 | ||||
| Total loans held for investment | $ 539,554 | 532,928 | 533,143 | 523,019 | 521,406 | 522,965 | 451,583 | ||||
| Total interest-bearing deposits | $ 584,031 | 576,968 | 573,595 | 545,912 | 514,875 | 528,158 | 423,680 | ||||
| Common stockholders' equity | $ 33,152 | 33,702 | 35,008 | 35,097 | 34,288 | 34,385 | 30,771 | ||||
| * annualized for all periods presented | |||||||||||
| return on average assets and on average common equity are computed using net income (loss) available to common stockholders | |||||||||||