GREENSBORO, N.C., April 30, 2010 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported first quarter 2010 results with highlights as follows:
First Quarter 2010 Financial Highlights
- Assets increased 11.1% to $704.1 million at March 31, 2010 from $633.8 million at March 31, 2009. Assets increased 1.0% during the first quarter.
- Net income was $299,000 in the first quarter of 2010 compared to $665,000 in the first quarter of 2009.
- Net income available to common stockholders was $14,000, or $0.00 per diluted share, in the first quarter of 2010 compared to $411,000, or $0.12 per diluted share, in the first quarter of 2009.
- Net interest income increased 28.0% in the first quarter of 2010 from the same quarter a year ago to $5.5 million.
- The net interest margin, computed on a fully taxable basis, increased to 3.54% in the first quarter of 2010 compared to 2.96% in the first quarter of 2009, a five year quarterly high.
- Non-interest income decreased 11.0% in the first quarter of 2010 from the first quarter of 2009 due to lower gains on sales of investments and higher losses on sale of repossessed assets.
- Provision for loan losses increased to $2.0 million in the first quarter of 2010 from $1.2 million in the same quarter of 2009.
Net income and net income available to common stockholders was $299,000 and $14,000 in the first quarter of 2010, respectively, compared to $665,000 and $411,000 in first quarter of 2009, respectively. Net income per common share was $0.00 in the first quarter of 2010 compared to net income per common share of $0.12 in the first quarter of 2009. Robert T. Braswell, President and CEO of Carolina Bank Holdings, commented, "Carolina Bank surpassed $700 million in assets in March 2010 and enjoyed improved net income on a sequential quarterly basis. We continued to increase our net interest margin through our emphasis on profitable growth. We are pleased that our net interest margin increased to a five year quarterly high of 3.54% in the first quarter of 2010. "
Assets increased 1.0% in the first quarter of 2010 to $704.1 million and deposits increased 1.3% to $625.7 million at March 31, 2010. The net interest margin was 3.54% in the first quarter of 2010 compared to 2.96% in the first quarter of 2009.
Non-interest income of $2.1 million in the first quarter of 2010 declined 11.0% from the same quarter of 2009. Mortgage banking income of $1.7 million represented a majority of the non-interest income in the 2010 period and declined only 3.4% from the year ago quarter.
Non-performing loans to total loans held for investment increased to 3.68% at March 31, 2010 from 2.67% at December 31, 2009. Non-performing assets to total assets increased to 4.42% at March 31, 2010 from 4.04% at December 31, 2009. Braswell commented, "The current economic times have challenged some of our customers. We are disappointed in our level of non-performing loans and have increased our resources to dispose of non-performing assets and to improve our risk management procedures. However, we feel we are nearing the peak of non-performing asset growth and expect improvements in subsequent quarters." The bank had annualized net charge-offs of 1.03% and 0.16% of average loans held for investment in the first quarter of 2010 and 2009, respectively. The allowance for loan losses was 2.00% and 1.31% of loans held for investment at March 31, 2010 and 2009, respectively.
Non-interest expense was $5.3 million in the first quarter of 2010, an increase of 18.0% from 2009. Impairment charges of $507,000 on three repossessed assets and increased FDIC insurance assessments of $160,000 represented the majority of the increased expenses.
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. 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.
The above release presents certain financial information excluding the impairment charges and FDIC assessments (non-GAAP). These expense items are included in the financial results presented in accordance with generally accepted accounting principles (GAAP). Non-GAAP measures are not in accordance with, or a substitute for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations that would be reflected in measures determined in accordance with GAAP. Non-GAAP measures should only be used to evaluate our results of operations in conjunction with corresponding GAAP measures.
| Carolina Bank Holdings, Inc. and Subsidiary | |||
| Consolidated Balance Sheets | |||
| At March 31, 2010 and 2009 and December 31, 2009 | |||
| (unaudited) | |||
| March 31, | December 31, | ||
| 2010 | 2009 | 2009 | |
| ASSETS | |||
| Cash and due from banks | $ 6,164 | $ 6,282 | $ 6,416 |
| Short-term investments and interest-earning deposits | 40,287 | 39 | 34,039 |
| Total cash and cash equivalents | 46,451 | 6,321 | 40,455 |
| Securities available for sale, at fair value | 51,392 | 52,145 | 52,924 |
| Securities held-to-maturity, at amortized cost | 717 | 1,074 | 770 |
| Loans held for sale | 30,941 | 30,796 | 29,388 |
| Loans | 534,045 | 514,203 | 530,606 |
| Allowance for loan losses | (10,697) | (6,749) | (10,081) |
| Net loans | 523,348 | 507,454 | 520,525 |
| Premises and equipment, net | 19,159 | 19,459 | 19,351 |
| Other assets | 32,077 | 16,555 | 33,639 |
| Total assets | $ 704,085 | $ 633,804 | $ 697,052 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| LIABILITIES | |||
| Deposits: | |||
| Noninterest-bearing | $ 36,910 | $ 27,692 | $ 39,261 |
| Interest-bearing | 588,820 | 493,755 | 578,210 |
| Total deposits | 625,730 | 521,447 | 617,471 |
| Short-term borrowings | 1,037 | 4,918 | 683 |
| Federal Home Loan Bank advances | 5,763 | 36,840 | 7,783 |
| Subordinated debentures | 19,358 | 19,283 | 19,360 |
| Other liabilities | 4,085 | 3,601 | 3,807 |
| Total liabilities | 655,973 | 586,089 | 649,104 |
| STOCKHOLDERS' EQUITY | |||
|
Preferred stock, no par, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2010 and 2009 |
14,555 | 14,235 | 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 | 15,808 | 15,772 | 15,799 |
| Retained earnings | 11,459 | 13,304 | 11,445 |
| Stock in director rabbi trust | (648) | (713) | (874) |
| Directors deferred fees obligation | 648 | 713 | 874 |
| Accumulated other comprehensive income (loss) | 1,062 | (824) | 1,003 |
| Total stockholders' equity | 48,112 | 47,715 | 47,948 |
| Total liabilities and stockholders' equity | $ 704,085 | $ 633,804 | $ 697,052 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||
| Consolidated Statements of Operations | ||
| For the three months ended March 31, 2010 and 2009 | ||
| (unaudited) | ||
| For the Three Months Ended | ||
| March 31, | ||
| 2010 | 2009 | |
| (in thousands, except per share data) | ||
| Interest income: | ||
| Loans | $ 7,476 | $ 7,213 |
| Investment securities - taxable | 462 | 593 |
| Investment securities - non taxable | 162 | 123 |
| Other interest income | 22 | -- |
| Total interest income | 8,122 | 7,929 |
| Interest expense: | ||
| NOW, money market, savings | 990 | 980 |
| Time deposits | 1,383 | 2,272 |
| Other borrowed funds | 229 | 365 |
| Total interest expense | 2,602 | 3,617 |
| Net interest income | 5,520 | 4,312 |
| Provision for loan losses | 1,988 | 1,195 |
|
Net interest income after provision for loan losses |
3,532 | 3,117 |
| Noninterest income: | ||
| Service charges | 216 | 250 |
| Mortgage banking income | 1,749 | 1,810 |
| Gain on sale of investments | 130 | 235 |
| Repossessed asset losses | (127) | (4) |
| Other | 165 | 106 |
| Total noninterest income | 2,133 | 2,397 |
| Noninterest expense: | ||
| Salaries and benefits | 2,574 | 2,443 |
| Occupancy and equipment | 608 | 593 |
| Professional fees | 260 | 348 |
| Outside data processing | 241 | 205 |
| FDIC Insurance | 257 | 97 |
| Advertising and promotion | 159 | 158 |
| Stationery, printing and supplies | 114 | 112 |
| Impairment of a marketable security | -- | 251 |
| Impairment of repossessed assets | 507 | -- |
| Other | 558 | 265 |
| Total noninterest expense | 5,278 | 4,472 |
| Income before income taxes | 387 | 1,042 |
| Income tax expense | 88 | 377 |
| Net income | 299 | 665 |
| Dividends and accretion on preferred stock | 285 | 254 |
| Net income available to common stockholders | $ 14 | $ 411 |
| Basic earnings per common share | $ -- | $ 0.12 |
| Diluted earnings per common share | $ -- | $ 0.12 |
| Average common shares outstanding | 3,387,045 | 3,451,559 |
|
Average common shares and dilutive potential common shares outstanding |
3,387,045 | 3,455,621 |
| Total shares outstanding at end of period | 3,387,045 | 3,387,045 |
| Carolina Bank Holdings, Inc. | ||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||
| First Quarter 2010 | ||||||||||||||
| (unaudited) | ||||||||||||||
| Quarterly | Year Ended | |||||||||||||
| 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||||||
| ($ in thousands except for share data) | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | |||||||
| EARNINGS | ||||||||||||||
| Net interest income | $5,520 | 5,538 | 5,115 | 4,740 | 4,312 | 19,705 | 14,727 | |||||||
| Provision for loan loss | $1,988 | 5,552 | 1,737 | 2,036 | 1,195 | 10,520 | 1,910 | |||||||
| NonInterest income | $2,133 | 2,635 | 1,579 | 3,242 | 2,402 | 10,550 | 4,609 | |||||||
| NonInterest expense | $5,278 | 5,053 | 4,841 | 5,514 | 4,482 | 20,577 | 14,058 | |||||||
| Net income (loss) | $299 | (1,527) | 169 | 335 | 665 | (358) | 2,194 | |||||||
| Net income (loss) available to common stockholders | $14 | (1,802) | (108) | 51 | 411 | (1,448) | 2,194 | |||||||
| Basic earnings (loss) per share | $0.00 | (0.53) | (0.03) | 0.02 | 0.12 | (0.43) | 0.66 | |||||||
| Diluted earnings (loss) per share | $0.00 | (0.53) | (0.03) | 0.02 | 0.12 | (0.43) | 0.65 | |||||||
| Average shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,451,559 | 3,383,748 | 3,344,010 | |||||||
| Average diluted shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,455,621 | 3,385,102 | 3,386,631 | |||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets * | 0.01% | -1.03% | -0.06% | 0.03% | 0.26% | -0.22% | 0.39% | |||||||
| Return on average common equity * | 0.17% | -20.42% | -1.22% | 0.60% | 4.96% | -4.21% | 7.13% | |||||||
| Net interest margin (fully-tax equivalent) * | 3.54% | 3.41% | 3.25% | 3.15% | 2.96% | 3.20% | 2.82% | |||||||
| Efficiency ratio | 68.24% | 61.30% | 71.55% | 68.55% | 66.26% | 67.42% | 72.09% | |||||||
| # full-time equivalent employees - period end | 143 | 140 | 136 | 136 | 119 | 140 | 119 | |||||||
| CAPITAL | ||||||||||||||
| Equity to ending assets | 6.83% | 6.88% | 7.39% | 7.25% | 7.53% | 6.88% | 5.12% | |||||||
| Common tangible equity to assets | 4.77% | 4.80% | 5.26% | 5.13% | 5.28% | 4.80% | 5.12% | |||||||
| Tier 1 leverage capital ratio - Bank | 7.54% | 7.45% | 7.84% | 8.10% | 8.32% | 7.45% | 7.00% | |||||||
| Tier 1 risk-based capital ratio - Bank | 8.59% | 8.50% | 8.82% | 8.86% | 9.25% | 8.50% | 7.62% | |||||||
| Total risk-based capital ratio - Bank | 11.34% | 11.24% | 11.48% | 11.61% | 12.01% | 11.24% | 10.29% | |||||||
| Book value per common share | $9.91 | 9.88 | 10.52 | 10.22 | 9.88 | 9.88 | 9.43 | |||||||
| ASSET QUALITY | ||||||||||||||
| Net charge-offs (recoveries) | $1,372 | 2,509 | 2,259 | 1,225 | 206 | 6,199 | 682 | |||||||
| Net charge-offs to average loans * | 1.03% | 1.88% | 1.73% | 0.94% | 0.16% | 1.19% | 0.15% | |||||||
| Allowance for loan losses | $10,697 | 10,081 | 7,038 | 7,560 | 6,749 | 10,081 | 5,760 | |||||||
| Allowance for loan losses to loans held invst. | 2.00% | 1.90% | 1.33% | 1.42% | 1.31% | 1.90% | 1.15% | |||||||
| Nonperforming loans | $19,636 | 14,163 | 14,407 | 16,829 | 12,201 | 14,163 | 5,656 | |||||||
| Restructured loans | $0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
| Repossessed assets | $11,507 | 13,964 | 7,676 | 5,329 | 1,288 | 13,964 | 728 | |||||||
| Nonperforming loans to loans held for investment | 3.68% | 2.67% | 2.71% | 3.16% | 2.37% | 2.67% | 1.13% | |||||||
| Nonperforming assets to total assets | 4.42% | 4.04% | 3.26% | 3.28% | 2.13% | 4.04% | 1.04% | |||||||
| END OF PERIOD BALANCES | ||||||||||||||
| Total assets | $704,085 | 697,052 | 676,826 | 675,192 | 633,804 | 697,052 | 616,611 | |||||||
| Total loans held for investment | $534,045 | 530,606 | 530,791 | 532,954 | 514,203 | 530,606 | 501,424 | |||||||
| Total deposits | $625,730 | 617,471 | 594,863 | 558,790 | 521,447 | 617,471 | 498,064 | |||||||
| Stockholders' equity | $48,112 | 47,948 | 50,017 | 48,942 | 47,715 | 47,948 | 31,576 | |||||||
| AVERAGE BALANCES | ||||||||||||||
| Total assets | $691,406 | 694,529 | 679,780 | 654,900 | 633,012 | 665,555 | 557,283 | |||||||
| Total earning assets | $641,861 | 651,733 | 633,107 | 612,353 | 598,620 | 624,031 | 527,958 | |||||||
| Total loans held for investment | $532,928 | 533,143 | 523,019 | 521,406 | 514,292 | 522,965 | 451,583 | |||||||
| Total interest-bearing deposits | $576,968 | 573,595 | 545,912 | 514,875 | 478,247 | 528,158 | 423,680 | |||||||
| Common stockholders' equity | $33,702 | 35,008 | 35,097 | 34,288 | 33,614 | 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 | ||||||||||||||