GREENSBORO, N.C., Feb. 2, 2012 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported fourth quarter and year end 2011 results with highlights as follows:
Fourth Quarter and Year End 2011 Financial Highlights
- Net income for the fourth quarter of 2011 was a record $1,031,000, an increase of 51.8% from net income of $679,000 reported in the fourth quarter of 2010. Net income (loss) was $2,397,000 and $(2,394,000) for the years ended December 31, 2011 and 2010, respectively.
- Diluted net income per common share increased 83% to $0.22 in the fourth quarter of 2011 from $0.12 in the fourth quarter of 2010. Diluted net income (loss) per common share was $0.36 and $(1.04) for the years ended December 31, 2011 and 2010, respectively.
- Net income available to common shareholders was $729,000 in the fourth quarter of 2011 compared to $392,000 in the fourth quarter of 2010.
- The net interest margin, computed on a fully taxable basis, increased to 4.14% in the fourth quarter of 2011 compared to 3.80% in the fourth quarter of 2010. The net interest margin increased to 3.92% in all of 2011 from 3.63% in 2010.
- Carolina Bank, the subsidiary of Carolina Bank Holdings, Inc., continued to maintain 'Well Capitalized' status, the highest regulatory capital measure. Capital ratios at December 31, 2011 for Carolina Bank improved to 8.02% for Tier 1 leverage, 9.60% for Tier 1 risk-based, and 12.50% for total risk-based.
- Non-interest-bearing demand deposits grew 32.7% in 2011 after growing 11.0% in 2010.
- Net loan charge-offs declined 42.3% to $7,416,000, or 1.49% of average loans, in 2011 from $12,855,000, or 2.43% of average loans, in 2010.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc., commented, "We continued our goal of building shareholder value during 2011 by increasing our margins, improving asset quality, building net income, and strengthening relationships with our customers. Our net interest margins of 4.14% in the fourth quarter and 3.92% for all of 2011 were the highest in eleven years. We continued to grow our core deposits with non-interest-bearing demand deposits increasing 32.7% in 2011 after growing 11.0% in 2010 as businesses enjoyed our outstanding customer service. Additionally, our mortgage division experienced strong originations and good profitability during the fourth quarter and all of 2011, enhancing our non-interest income."
Non-performing loans to total loans held for investment decreased to 4.79% at December 31, 2011 from 5.39% at December 31, 2010. Non-performing assets to total assets decreased to 4.46% at December 31, 2011 from 5.55% at December 31, 2010. Net loan charge-offs declined to $7.4 million in 2011 from $12.9 million in 2010. Braswell commented, "We made steady progress in bringing down the elevated level of non-performing assets in 2011 and will continue that focus in the coming years. We are also pleased that loan charge-offs declined substantially in 2011 to more manageable levels. Our continued focus and efforts to develop a stronger credit culture are progressing well and should improve future results for our shareholders. We were also able to improve our capital ratios in 2011 through the retention of earnings and managed growth."
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 and a mortgage loan production office in Burlington. 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 | ||
| December 31, | ||
| 2011 | 2010* | |
| (unaudited) | ||
| (in thousands except share and per share data) | ||
| Assets | ||
| Cash and due from banks | $ 5,664 | $ 5,116 |
| Interest-bearing deposits with banks | 7,647 | 17,710 |
| Securities available-for-sale, at fair value | 42,208 | 42,785 |
| Securities held-to-maturity | 392 | 563 |
| Loans held for sale | 91,955 | 53,961 |
| Loans | 487,031 | 514,029 |
| Less allowance for loan losses | (11,793) | (12,359) |
| Net loans | 475,238 | 501,670 |
| Premises and equipment, net | 17,442 | 18,622 |
| Other real estate owned | 6,728 | 9,848 |
| Bank-owned life insurance | 10,385 | 10,003 |
| Other assets | 15,666 | 16,423 |
| Total assets | $ 673,325 | $ 676,701 |
| Liabilities and Stockholders' Equity | ||
| Deposits | ||
| Non-interest bearing demand | $ 57,812 | $ 43,564 |
| NOW, money market and savings | 324,449 | 303,203 |
| Time | 214,803 | 257,800 |
| Total deposits | 597,064 | 604,567 |
| Advances from the Federal Home Loan Bank | 3,075 | 3,165 |
| Securities sold under agreements to repurchase | 1,536 | 432 |
| Subordinated debentures | 19,489 | 19,414 |
| Other liabilities and accrued expenses | 5,603 | 4,841 |
| Total liabilities | 626,767 | 632,419 |
| Stockholders' equity | ||
| Preferred stock, no par value, authorized 1,000,000 shares;issued and outstanding 16,000 shares in 2011 and 2010 | 15,177 | 14,811 |
| Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,387,045 in 2011 and 2010 | 3,387 | 3,387 |
| Common stock warrants | 1,841 | 1,841 |
| Additional paid-in capital | 15,870 | 15,834 |
| Retained earnings | 9,132 | 7,910 |
| Stock in directors' rabbi trust | (875) | (718) |
| Directors' deferred fees obligation | 875 | 718 |
| Accumulated other comprehensive income | 1,151 | 499 |
| Total stockholders' equity | 46,558 | 44,282 |
| Total liabilities and stockholders' equity | $ 673,325 | $ 676,701 |
| * Derived from audited consolidated financial statements. | ||
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Operations (unaudited) | ||||
| Three Months | Years Ended | |||
| Ended December 31, | December 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 7,541 | $ 7,759 | $ 28,743 | $ 30,549 |
| Investment securities, taxable | 325 | 362 | 1,419 | 1,637 |
| Investment securities, non taxable | 118 | 156 | 551 | 650 |
| Interest from deposits in banks | 7 | 18 | 77 | 78 |
| Total interest income | 7,991 | 8,295 | 30,790 | 32,914 |
| Interest expense | ||||
| NOW, money market, savings | 598 | 732 | 2,526 | 3,505 |
| Time deposits | 757 | 1,203 | 3,411 | 5,223 |
| Other borrowed funds | 194 | 190 | 758 | 845 |
| Total interest expense | 1,549 | 2,125 | 6,695 | 9,573 |
| Net interest income | 6,442 | 6,170 | 24,095 | 23,341 |
| Provision for loan losses | 1,700 | 1,825 | 6,850 | 15,133 |
| Net interest income after provision for loan losses | 4,742 | 4,345 | 17,245 | 8,208 |
| Non-interest income | ||||
| Service charges | 199 | 228 | 986 | 910 |
| Mortgage banking income | 3,260 | 4,492 | 9,928 | 11,686 |
| Gain on sale of investment securities | -- | -- | 239 | 535 |
| Gain (loss) on the sale of other real estate owned | (152) | (34) | (316) | (273) |
| Other | 119 | 24 | 503 | 517 |
| Total non-interest income | 3,426 | 4,710 | 11,340 | 13,375 |
| Non-interest expense | ||||
| Salaries and benefits | 3,522 | 3,595 | 13,129 | 12,232 |
| Occupancy and equipment | 696 | 629 | 2,519 | 2,490 |
| Professional fees | 226 | 479 | 929 | 1,418 |
| Outside data processing | 166 | 231 | 793 | 948 |
| FDIC insurance | 209 | 328 | 1,026 | 1,109 |
| Advertising and promotion | 321 | 155 | 731 | 699 |
| Stationery, printing and supplies | 172 | 158 | 614 | 557 |
| Impairment of other real estate owned | 443 | 1,438 | 2,442 | 3,350 |
| Other real estate owned expense | 223 | 361 | 1,106 | 1,027 |
| Other | 799 | 816 | 2,342 | 2,231 |
| Total non-interest expense | 6,777 | 8,190 | 25,631 | 26,061 |
| Income (loss) before income taxes | 1,391 | 865 | 2,954 | (4,478) |
| Income tax expense (benefit) | 360 | 186 | 557 | (2,084) |
| Net income (loss) | 1,031 | 679 | 2,397 | (2,394) |
| Dividends and accretion on preferred stock | 302 | 287 | 1,174 | 1,142 |
| Net income (loss) available (allocable) to common stockholders | $ 729 | $ 392 | $ 1,223 | $ (3,536) |
| Net income (loss) per common share | ||||
| Basic | $ 0.22 | $ 0.12 | $ 0.36 | $ (1.04) |
| Diluted | $ 0.22 | $ 0.12 | $ 0.36 | $ (1.04) |
| Carolina Bank Holdings, Inc. | |||||||||||
| Consolidated Financial Highlights | |||||||||||
| Fourth Quarter 2011 | |||||||||||
| (unaudited) | |||||||||||
| Quarterly | Years Ended | ||||||||||
| 4th Qtr | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | |||||||
| ($ in thousands except for share data) | 2011 | 2011 | 2011 | 2011 | 2010 | 2011 | 2010 | ||||
| EARNINGS | |||||||||||
| Net interest income | $ 6,442 | 5,991 | 5,744 | 5,918 | 6,170 | 24,095 | 23,341 | ||||
| Provision for loan loss | $ 1,700 | 1,800 | 1,650 | 1,700 | 1,825 | 6,850 | 15,133 | ||||
| NonInterest income | $ 3,426 | 3,184 | 2,620 | 2,110 | 4,710 | 11,340 | 13,375 | ||||
| NonInterest expense | $ 6,777 | 6,362 | 7,022 | 5,470 | 8,190 | 25,631 | 26,061 | ||||
| Net income (loss) | $ 1,031 | 812 | (58) | 612 | 679 | 2,397 | (2,394) | ||||
| Net income (loss) available to common stockholders | $ 729 | 520 | (350) | 324 | 392 | 1,223 | (3,536) | ||||
| Basic earnings (loss) per share | $ 0.22 | 0.15 | (0.10) | 0.10 | 0.12 | 0.36 | (1.04) | ||||
| Diluted earnings (loss) per share | $ 0.22 | 0.15 | (0.10) | 0.10 | 0.12 | 0.36 | (1.04) | ||||
| Average shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | ||||
| Average diluted shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | ||||
| PERFORMANCE RATIOS | |||||||||||
| Return on average assets * | 0.43% | 0.31% | -0.21% | 0.20% | 0.22% | 0.18% | -0.51% | ||||
| Return on average common equity * | 9.31% | 6.80% | -4.65% | 4.41% | 5.24% | 4.03% | -11.08% | ||||
| Net interest margin (fully-tax equivalent) * | 4.14% | 3.89% | 3.76% | 3.88% | 3.80% | 3.92% | 3.63% | ||||
| Efficiency ratio | 68.28% | 68.89% | 83.24% | 67.47% | 74.73% | 71.79% | 70.38% | ||||
| # full-time equivalent employees - period end | 174 | 167 | 168 | 163 | 155 | 174 | 155 | ||||
| CAPITAL | |||||||||||
| Equity to ending assets | 6.91% | 6.90% | 6.81% | 6.76% | 6.54% | 6.91% | 6.54% | ||||
| Common tangible equity to assets | 4.66% | 4.64% | 4.54% | 4.52% | 4.36% | 4.66% | 4.36% | ||||
| Tier 1 leverage capital ratio - Bank | 8.02% | 8.15% | 8.00% | 7.91% | 7.59% | 8.02% | 7.59% | ||||
| Tier 1 risk-based capital ratio - Bank | 9.60% | 9.64% | 9.63% | 9.38% | 9.00% | 9.60% | 9.00% | ||||
| Total risk-based capital ratio - Bank | 12.50% | 12.53% | 12.54% | 12.24% | 11.82% | 12.50% | 11.82% | ||||
| Book value per common share | $ 9.26 | 9.03 | 8.86 | 8.86 | 8.70 | 9.26 | 8.70 | ||||
| ASSET QUALITY | |||||||||||
| Net charge-offs (recoveries) | $ 1,956 | 3,190 | 625 | 1,645 | 1,096 | 7,416 | 12,855 | ||||
| Net charge-offs to average loans * | 1.60% | 2.58% | 0.50% | 1.29% | 0.84% | 1.49% | 2.43% | ||||
| Allowance for loan losses | $ 11,793 | 12,049 | 13,439 | 12,414 | 12,359 | 11,793 | 12,359 | ||||
| Allowance for loan losses to loans held invst. | 2.42% | 2.46% | 2.68% | 2.47% | 2.40% | 2.42% | 2.40% | ||||
| Nonperforming loans | $ 23,315 | 24,429 | 29,827 | 28,651 | 27,713 | 23,315 | 27,713 | ||||
| Performing restructured loans | $ 18,502 | 18,167 | 17,138 | 11,910 | 4,791 | 18,502 | 4,791 | ||||
| Other real estate owned | $ 6,728 | 8,972 | 11,513 | 11,177 | 9,848 | 6,728 | 9,848 | ||||
| Nonperforming loans to loans held for investment | 4.79% | 4.99% | 5.95% | 5.71% | 5.39% | 4.79% | 5.39% | ||||
| Nonperforming assets to total assets | 4.46% | 5.06% | 6.26% | 6.00% | 5.55% | 4.46% | 5.55% | ||||
| END OF PERIOD BALANCES | |||||||||||
| Total assets | $ 673,325 | 661,784 | 660,272 | 664,130 | 676,701 | 673,325 | 676,701 | ||||
| Total loans held for investment | $ 487,031 | 489,782 | 501,144 | 501,977 | 514,029 | 487,031 | 514,029 | ||||
| Total deposits | $ 597,064 | 585,184 | 581,832 | 589,395 | 604,567 | 597,064 | 604,567 | ||||
| Stockholders' equity | $ 46,558 | 45,696 | 44,991 | 44,903 | 44,282 | 46,558 | 44,282 | ||||
| AVERAGE BALANCES | |||||||||||
| Total assets | $ 670,436 | 664,373 | 666,538 | 673,663 | 693,279 | 668,753 | 695,847 | ||||
| Total earning assets | $ 623,176 | 617,852 | 619,704 | 626,822 | 653,276 | 621,889 | 650,926 | ||||
| Total loans held for investment | $ 489,915 | 494,669 | 500,095 | 510,051 | 521,462 | 498,683 | 529,415 | ||||
| Total interest-bearing deposits | $ 537,287 | 534,140 | 542,800 | 555,381 | 574,181 | 542,402 | 578,815 | ||||
| Common stockholders' equity | $ 31,052 | 30,328 | 30,171 | 29,795 | 29,702 | 30,337 | 31,924 | ||||
| * annualized for all periods presented | |||||||||||
| return on average assets and on average common equity are computed using net income (loss) available to common stockholders | |||||||||||