GREENSBORO, N.C., Aug. 2, 2011 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported second quarter 2011 results with highlights as follows:
Second Quarter 2011 Financial Highlights
- Net interest income, computed on a fully taxable basis, was $5.8 million in the second quarter of 2011, up 1.2% from the second quarter of 2010.
- The net interest margin, computed on a fully taxable basis, increased to 3.76% in the second quarter of 2011 compared to 3.50% in the second quarter of 2010.
- Carolina Bank, the subsidiary of Carolina Bank Holdings, Inc., continued to maintain 'Well Capitalized' status, the highest regulatory capital measure. Capital ratios at June 30, 2011 for Carolina Bank improved to 8.00% for Tier 1 leverage, 9.63% for Tier 1 risk-based, and 12.54% for total risk-based.
- The provision for loan losses decreased to $1.65 million in the second quarter of 2011 from $4.7 million in the same quarter of 2010.
- Net loss for the second quarter of 2011 of $58,000 improved from the net loss of $1,568,000 in the second quarter 2010. Net loss allocable to common shareholders was $350,000 and $1,856,000 in the second quarter of 2011 and 2010, respectively. Net income available to common shareholders in the second quarter of 2011 would have exceeded $500,000, excluding $1.4 million of impairment charges related to real estate owned sales after June 30, 2011.
- Diluted net (loss) per common share was ($0.10) and ($0.55) in the second quarter of 2011 and 2010, respectively.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc., commented, "We are pleased to report substantial progress in the financial improvement of our core bank. Our net interest margin improved in 2011 to the highest level in ten years, our capital ratios are at a three year high, and our provision for loan losses declined 64.9% in the second quarter of 2011 from a year ago. Our mortgage banking division improved its profitability from the first quarter of 2011 and has seen a recent increase in originations."
Non-performing loans to total loans held for investment increased to 5.95% at June 30, 2011 from 5.39% at December 31, 2010. Non-performing assets to total assets increased to 6.26% at June 30, 2011 from 5.55% at December 31, 2010; however, non-performing assets of over $5.0 million were sold during July. Braswell commented, "Reducing the elevated level of non-performing assets is a top priority of our Bank in 2011." The bank had net loan charge-offs of $0.63 million and $5.13 million in the second quarter of 2011 and 2010, respectively. The allowance for loan losses to loans held for investment increased from 2.40% at December 31, 2010 to 2.68% at June 30, 2011.
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 | ||||
|
June 30, 2011 |
December 31, 2010* |
|||
| (unaudited) | ||||
| (in thousands) | ||||
| Assets | ||||
| Cash and due from banks | $ 5,053 | $ 5,116 | ||
| Interest-bearing deposits with banks | 25,781 | 17,710 | ||
| Securities available-for-sale, at fair value | 46,256 | 42,785 | ||
| Securities held-to-maturity | 479 | 563 | ||
| Loans held for sale | 39,507 | 53,961 | ||
| Loans | 501,144 | 514,029 | ||
| Less allowance for loan losses | (13,439) | (12,359) | ||
| Net loans | 487,705 | 501,670 | ||
| Premises and equipment, net | 18,336 | 18,622 | ||
| Other real estate owned | 11,513 | 9,848 | ||
| Bank-owned life insurance | 10,193 | 10,003 | ||
| Other assets | 15,449 | 16,423 | ||
| Total assets | $ 660,272 | $ 676,701 | ||
| Liabilities and Stockholders' Equity | ||||
| Deposits | ||||
| Non-interest bearing demand | $ 44,622 | $ 43,564 | ||
| NOW, money market and savings | 312,771 | 303,203 | ||
| Time | 224,439 | 257,800 | ||
| Total deposits | 581,832 | 604,567 | ||
| Advances from the Federal Home Loan Bank | 3,121 | 3,165 | ||
| Securities sold under agreements to repurchase | 5,705 | 432 | ||
| Subordinated debentures | 19,451 | 19,414 | ||
| Other liabilities and accrued expenses | 5,172 | 4,841 | ||
| Total liabilities | 615,281 | 632,419 | ||
| Commitments | ||||
| Stockholders' equity | ||||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2011 and 2010 | 14,991 | 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 | 15,852 | 15,834 | ||
| Retained earnings | 7,884 | 7,910 | ||
| Stock in directors' rabbi trust | (786) | (718) | ||
| Directors' deferred fees obligation | 786 | 718 | ||
| Accumulated other comprehensive income | 1,036 | 499 | ||
| Total stockholders' equity | 44,991 | 44,282 | ||
| Total liabilities and stockholders' equity | $ 660,272 | $ 676,701 | ||
| * Derived from audited consolidated financial statements. | ||||
| Carolina Bank Holdings, Inc. and Subsidiary | ||||||||
| Consolidated Statements of Operations (unaudited) | ||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| (in thousands, except per share data) | ||||||||
| Interest income | ||||||||
| Loans | $ 6,899 | $ 7,543 | $ 14,049 | $ 15,019 | ||||
| Investment securities, taxable | 360 | 420 | 761 | 882 | ||||
| Investment securities, non taxable | 147 | 164 | 309 | 326 | ||||
| Interest from deposits in banks | 28 | 22 | 48 | 44 | ||||
| Total interest income | 7,434 | 8,149 | 15,167 | 16,271 | ||||
| Interest expense | ||||||||
| NOW, money market, savings | 638 | 926 | 1,298 | 1,916 | ||||
| Time deposits | 865 | 1,328 | 1,832 | 2,711 | ||||
| Other borrowed funds | 187 | 225 | 375 | 454 | ||||
| Total interest expense | 1,690 | 2,479 | 3,505 | 5,081 | ||||
| Net interest income | 5,744 | 5,670 | 11,662 | 11,190 | ||||
| Provision for loan losses | 1,650 | 4,700 | 3,350 | 6,688 | ||||
| Net interest income after provision for loan losses | 4,094 | 970 | 8,312 | 4,502 | ||||
| Non-interest income | ||||||||
| Service charges | 256 | 235 | 487 | 451 | ||||
| Mortgage banking income | 2,069 | 2,187 | 3,704 | 3,936 | ||||
| Gains on sale of investment securities | 114 | 55 | 211 | 185 | ||||
| Repossessed asset gains (losses) | 53 | (140) | 53 | (267) | ||||
| Other | 128 | 165 | 275 | 330 | ||||
| Total non-interest income | 2,620 | 2,502 | 4,730 | 4,635 | ||||
| Non-interest expense | ||||||||
| Salaries and benefits | 3,193 | 2,810 | 6,157 | 5,384 | ||||
| Occupancy and equipment | 558 | 598 | 1,196 | 1,206 | ||||
| Professional fees | 229 | 342 | 482 | 602 | ||||
| Outside data processing | 181 | 216 | 400 | 457 | ||||
| FDIC insurance | 334 | 262 | 719 | 519 | ||||
| Advertising and promotion | 143 | 91 | 230 | 250 | ||||
| Stationery, printing and supplies | 134 | 132 | 273 | 246 | ||||
| Impairment of repossessed assets | 1,423 | 962 | 1,423 | 1,469 | ||||
| Repossessed asset expenses | 315 | 259 | 609 | 422 | ||||
| Other | 512 | 500 | 1,003 | 895 | ||||
| Total non-interest expense | 7,022 | 6,172 | 12,492 | 11,450 | ||||
| Income (loss) before income taxes | (308) | (2,700) | 550 | (2,313) | ||||
| Income tax benefit | (250) | (1,132) | (4) | (1,044) | ||||
| Net income (loss) | (58) | (1,568) | 554 | (1,269) | ||||
| Dividends and accretion on preferred stock | 292 | 288 | 580 | 573 | ||||
| Net (loss) allocable to common stockholders | $ (350) | $ (1,856) | $ (26) | $ (1,842) | ||||
| Net (loss) per common share | ||||||||
| Basic | $ (0.10) | $ (0.55) | $ (0.01) | $ (0.54) | ||||
| Diluted | $ (0.10) | $ (0.55) | $ (0.01) | $ (0.54) | ||||
| Carolina Bank Holdings, Inc. | ||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||
| Second Quarter 2011 | ||||||||||||||
| (unaudited) | ||||||||||||||
| Quarterly | Years Ended | |||||||||||||
| ($ in thousands except for share data) |
2nd Qtr. 2011 |
1st Qtr. 2011 |
4th Qtr. 2010 |
3rd Qtr. 2010 |
2nd Qtr. 2010 |
2010 | 2009 | |||||||
| EARNINGS | ||||||||||||||
| Net interest income | $ 5,744 | 5,918 | 6,170 | 5,981 | 5,670 | 23,341 | 19,705 | |||||||
| Provision for loan loss | $ 1,650 | 1,700 | 1,825 | 6,620 | 4,700 | 15,133 | 10,520 | |||||||
| NonInterest income | $ 2,620 | 2,110 | 4,710 | 4,030 | 2,502 | 13,375 | 10,550 | |||||||
| NonInterest expense | $ 7,022 | 5,470 | 8,190 | 6,421 | 6,172 | 26,061 | 20,577 | |||||||
| Net income (loss) | $ (58) | 612 | 679 | (1,804) | (1,568) | (2,394) | (358) | |||||||
| Net income (loss) available to common stockholders | $ (350) | 324 | 392 | (2,086) | (1,856) | (3,536) | (1,448) | |||||||
| Basic earnings (loss) per share | $ (0.10) | 0.10 | 0.12 | (0.62) | (0.55) | (1.04) | (0.43) | |||||||
| Diluted earnings (loss) per share | $ (0.10) | 0.10 | 0.12 | (0.62) | (0.55) | (1.04) | (0.43) | |||||||
| Average shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,383,748 | |||||||
| Average diluted shares outstanding | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,385,102 | |||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets * | -0.21% | 0.20% | 0.22% | -1.19% | -1.06% | -0.51% | -0.22% | |||||||
| Return on average common equity * | -4.65% | 4.41% | 5.24% | -26.45% | -22.54% | -11.08% | -4.21% | |||||||
| Net interest margin (fully-tax equivalent) * | 3.76% | 3.88% | 3.80% | 3.70% | 3.50% | 3.63% | 3.20% | |||||||
| Efficiency ratio | 83.24% | 67.47% | 74.73% | 63.64% | 74.80% | 70.38% | 67.42% | |||||||
| # full-time equivalent employees - period end | 168 | 163 | 155 | 153 | 147 | 155 | 140 | |||||||
| CAPITAL | ||||||||||||||
| Equity to ending assets | 6.81% | 6.76% | 6.54% | 6.36% | 6.58% | 6.54% | 6.88% | |||||||
| Common tangible equity to assets | 4.54% | 4.52% | 4.36% | 4.25% | 4.50% | 4.36% | 4.80% | |||||||
| Tier 1 leverage capital ratio - Bank | 8.00% | 7.91% | 7.59% | 7.43% | 7.23% | 7.59% | 7.45% | |||||||
| Tier 1 risk-based capital ratio - Bank | 9.63% | 9.38% | 9.00% | 8.73% | 8.55% | 9.00% | 8.50% | |||||||
| Total risk-based capital ratio - Bank | 12.54% | 12.24% | 11.82% | 11.52% | 11.34% | 11.82% | 11.24% | |||||||
| Book value per common share | $ 8.86 | 8.86 | 8.70 | 8.79 | 9.37 | 8.70 | 9.88 | |||||||
| ASSET QUALITY | ||||||||||||||
| Net charge-offs (recoveries) | $ 625 | 1,645 | 1,096 | 5,261 | 5,126 | 12,855 | 6,199 | |||||||
| Net charge-offs to average loans * | 0.50% | 1.29% | 0.84% | 4.02% | 3.80% | 2.43% | 1.19% | |||||||
| Allowance for loan losses | $ 13,439 | 12,414 | 12,359 | 11,629 | 10,270 | 12,359 | 10,081 | |||||||
| Allowance for loan losses to loans held invst. | 2.68% | 2.47% | 2.40% | 2.24% | 1.93% | 2.40% | 1.90% | |||||||
| Nonperforming loans | $ 29,827 | 28,651 | 27,713 | 26,972 | 24,721 | 27,713 | 14,163 | |||||||
| Performing restructured loans | $ 17,138 | 11,910 | 8,396 | 700 | -- | 8,396 | -- | |||||||
| Repossessed assets | $ 11,513 | 11,177 | 9,863 | 9,763 | 7,792 | 9,863 | 13,964 | |||||||
| Nonperforming loans to loans held for investment | 5.95% | 5.71% | 5.39% | 5.20% | 4.63% | 5.39% | 2.67% | |||||||
| Nonperforming assets to total assets | 6.26% | 6.00% | 5.55% | 5.25% | 4.62% | 5.55% | 4.04% | |||||||
| END OF PERIOD BALANCES | ||||||||||||||
| Total assets | $ 660,272 | 664,130 | 676,701 | 700,234 | 704,340 | 676,701 | 697,052 | |||||||
| Total loans held for investment | $ 501,144 | 501,977 | 514,029 | 519,177 | 533,486 | 514,029 | 530,606 | |||||||
| Total deposits | $ 581,832 | 589,395 | 604,567 | 626,060 | 626,527 | 604,567 | 617,471 | |||||||
| Stockholders' equity | $ 44,991 | 44,903 | 44,282 | 44,507 | 46,359 | 44,282 | 47,948 | |||||||
| AVERAGE BALANCES | ||||||||||||||
| Total assets | $ 666,538 | 673,663 | 693,279 | 698,106 | 700,598 | 695,847 | 665,555 | |||||||
| Total earning assets | $ 619,704 | 626,822 | 653,276 | 650,068 | 658,491 | 650,926 | 624,031 | |||||||
| Total loans held for investment | $ 500,095 | 510,051 | 521,462 | 523,714 | 539,554 | 529,415 | 522,965 | |||||||
| Total interest-bearing deposits | $ 542,800 | 555,381 | 574,181 | 580,084 | 584,031 | 578,815 | 528,158 | |||||||
| Common stockholders' equity | $ 30,171 | 29,795 | 29,702 | 31,295 | 33,034 | 31,924 | 34,385 | |||||||
| * annualized for all periods presented | ||||||||||||||
| return on average assets and on average common equity are computed using net income (loss) available to common stockholders | ||||||||||||||