GREENSBORO, N.C., Aug. 1, 2012 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported second quarter 2012 results with highlights as follows:
Second Quarter 2012 Financial Highlights
- Net income for the second quarter of 2012 was a record $2,268,000 compared to a net loss of $58,000 in the second quarter of 2011. This marks the third quarter in a row of record quarterly net income.
- Diluted net income per common share increased to $0.58 in the second quarter of 2012 from $0.27 in the first quarter of 2012 and from a net loss per common share of $0.10 in the second quarter of 2011.
- Net income available to common shareholders was $1,961,000 in the second quarter of 2012 compared to a net loss allocable to common shareholders of $350,000 in the second quarter of 2011.
- Net income available to common shareholders was $2,887,000 in the first six months of 2012, or $0.85 per common share, compared to net loss allocable to common shareholders of $26,000, or ($0.01) per common share, in the first six months of 2011.
- The net interest margin, computed on a fully taxable basis, increased to 3.86% in the second quarter of 2012 compared to 3.76% in the second quarter of 2011.
- Mortgage banking income gross revenues increased to $4,519,000 in the second quarter of 2012 from $2,069,000 in the second quarter of 2011.
- 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, 2012 for Carolina Bank improved to 8.79% for Tier 1 leverage, 11.12% for Tier 1 risk-based, and 14.12% for total risk-based.
- Average non-interest-bearing demand deposits increased 26.1% in the second quarter of 2012 from the same quarter in 2011.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc. commented, "We are pleased to report record net income for the third consecutive quarter. Our record net income and earnings per share in the second quarter reflect improved credit quality and strong results by our mortgage division. No provision for loan losses was necessary in the second quarter of 2012 due to a decline in total loans and improved loan quality. Our net interest margin, computed on a fully taxable basis, rose 0.10% from a year ago but declined from the previous two quarters due to low interest rates and higher short-term liquidity. "
Non-performing loans to total loans held for investment decreased to 4.74% at June 30, 2012 from 5.95% at June 30, 2011. Non-performing assets to total assets decreased to 4.16% at June 30, 2012 from 6.26% at June 30, 2011. Both of these ratios improved from the previous quarter. Braswell commented, "We have focused on improving credit quality over the past several years and our efforts are paying off."
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 mortgage loan production offices in Burlington, Raleigh, and Hillsborough. 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, | December 31, | |||
| 2012 | 2011 | |||
| (unaudited) | ||||
| (in thousands except share and per share data) | ||||
| Assets | ||||
| Cash and due from banks | $ 5,842 | $ 5,664 | ||
| Interest-bearing deposits with banks | 70,321 | 7,647 | ||
| Securities available-for-sale, at fair value | 44,870 | 42,208 | ||
| Securities held-to-maturity | 312 | 392 | ||
| Loans held for sale | 57,708 | 91,955 | ||
| Loans | 459,144 | 487,031 | ||
| Less allowance for loan losses | (11,112) | (11,793) | ||
| Net loans | 448,032 | 475,238 | ||
| Premises and equipment, net | 17,434 | 17,442 | ||
| Other real estate owned | 6,384 | 6,728 | ||
| Bank-owned life insurance | 10,573 | 10,385 | ||
| Other assets | 16,000 | 15,666 | ||
| Total assets | $ 677,476 | $ 673,325 | ||
| Liabilities and Stockholders' Equity | ||||
| Deposits | ||||
| Non-interest bearing demand | $ 59,708 | $ 57,475 | ||
| NOW, money market and savings | 332,078 | 324,449 | ||
| Time | 200,317 | 214,715 | ||
| Total deposits | 592,103 | 596,639 | ||
| Advances from the Federal Home Loan Bank | 3,029 | 3,075 | ||
| Securities sold under agreements to repurchase | 5,103 | 1,536 | ||
| Subordinated debentures | 19,526 | 19,489 | ||
| Other liabilities and accrued expenses | 7,572 | 6,028 | ||
| Total liabilities | 627,333 | 626,767 | ||
| Commitments | ||||
| Stockholders' equity | ||||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2012 and 2011 | 15,371 | 15,177 | ||
| Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,387,045 in 2012 and 2011 | 3,387 | 3,387 | ||
| Common stock warrants | 1,841 | 1,841 | ||
| Additional paid-in capital | 15,888 | 15,870 | ||
| Retained earnings | 12,019 | 9,132 | ||
| Stock in directors' rabbi trust | (899) | (875) | ||
| Directors' deferred fees obligation | 899 | 875 | ||
| Accumulated other comprehensive income | 1,637 | 1,151 | ||
| Total stockholders' equity | 50,143 | 46,558 | ||
| Total liabilities and stockholders' equity | $ 677,476 | $ 673,325 | ||
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Operations (unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 6,887 | $ 6,899 | $ 13,972 | $ 14,049 |
| Investment securities, taxable | 313 | 360 | 619 | 761 |
| Investment securities, non taxable | 100 | 147 | 207 | 309 |
| Interest from deposits in banks | 21 | 28 | 31 | 48 |
| Total interest income | 7,321 | 7,434 | 14,829 | 15,167 |
| Interest expense | ||||
| NOW, money market, savings | 521 | 638 | 1,069 | 1,298 |
| Time deposits | 664 | 865 | 1,373 | 1,832 |
| Other borrowed funds | 197 | 187 | 399 | 375 |
| Total interest expense | 1,382 | 1,690 | 2,841 | 3,505 |
| Net interest income | 5,939 | 5,744 | 11,988 | 11,662 |
| Provision for loan losses | -- | 1,650 | 1,460 | 3,350 |
| Net interest income after provision for loan losses | 5,939 | 4,094 | 10,528 | 8,312 |
| Non-interest income | ||||
| Service charges | 318 | 256 | 601 | 487 |
| Mortgage banking income | 4,519 | 2,069 | 7,816 | 3,704 |
| Gain on sale of investment securities available-for-sale | -- | 114 | -- | 211 |
| Gain (loss) on sale of other real estate owned | (2) | 53 | 46 | 53 |
| Other | 141 | 128 | 313 | 275 |
| Total non-interest income | 4,976 | 2,620 | 8,776 | 4,730 |
| Non-interest expense | ||||
| Salaries and benefits | 4,404 | 3,193 | 8,434 | 6,157 |
| Occupancy and equipment | 677 | 558 | 1,359 | 1,196 |
| Professional fees | 263 | 229 | 520 | 482 |
| Outside data processing | 215 | 181 | 421 | 400 |
| FDIC insurance | 207 | 334 | 422 | 719 |
| Advertising and promotion | 205 | 143 | 380 | 230 |
| Stationery, printing and supplies | 167 | 134 | 302 | 273 |
| Impairment of other real estate owned | 310 | 1,423 | 606 | 1,423 |
| Other real estate owned expense | 269 | 315 | 425 | 609 |
| Other | 776 | 512 | 1,315 | 1,003 |
| Total non-interest expense | 7,493 | 7,022 | 14,184 | 12,492 |
| Income (loss) before income taxes | 3,422 | (308) | 5,120 | 550 |
| Income tax expense (benefit) | 1,154 | (250) | 1,624 | (4) |
| Net income (loss) | 2,268 | (58) | 3,496 | 554 |
| Dividends and accretion on preferred stock | 307 | 292 | 609 | 580 |
| Net income (loss) available (allocable) to common stockholders | $ 1,961 | $ (350) | $ 2,887 | $ (26) |
| Net income (loss) per common share | ||||
| Basic | $ 0.58 | $ (0.10) | $ 0.85 | $ (0.01) |
| Diluted | $ 0.58 | $ (0.10) | $ 0.85 | $ (0.01) |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| Second Quarter 2012 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr. | 2nd Qtr. | |||
| ($ in thousands except for share data) | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 |
| EARNINGS | |||||||
| Net interest income | $ 5,939 | 6,049 | 6,442 | 5,991 | 5,744 | 24,095 | 23,341 |
| Provision for loan loss | $ 0 | 1,460 | 1,700 | 1,800 | 1,650 | 6,850 | 15,133 |
| NonInterest income | $ 4,976 | 3,800 | 3,426 | 3,184 | 2,620 | 11,340 | 13,375 |
| NonInterest expense | $ 7,493 | 6,691 | 6,777 | 6,362 | 7,022 | 25,631 | 26,061 |
| Net income (loss) | $ 2,268 | 1,228 | 1,031 | 812 | (58) | 2,397 | (2,394) |
| Net income (loss) available to common stockholders | $ 1,961 | 926 | 729 | 520 | (350) | 1,223 | (3,536) |
| Basic earnings (loss) per share | $ 0.58 | 0.27 | 0.22 | 0.15 | (0.10) | 0.36 | (1.04) |
| Diluted earnings (loss) per share | $ 0.58 | 0.27 | 0.22 | 0.15 | (0.10) | 0.36 | (1.04) |
| Average common 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 common 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 * | 1.18% | 0.56% | 0.43% | 0.31% | -0.21% | 0.18% | -0.51% |
| Return on average common equity * | 23.44% | 11.58% | 9.31% | 6.80% | -4.65% | 4.03% | -11.08% |
| Net interest margin (fully-tax equivalent) * | 3.86% | 3.98% | 4.14% | 3.89% | 3.76% | 3.92% | 3.63% |
| Efficiency ratio | 68.34% | 67.57% | 68.28% | 68.89% | 83.24% | 71.79% | 70.38% |
| # full-time equivalent employees - period end | 200 | 184 | 174 | 167 | 168 | 174 | 155 |
| CAPITAL | |||||||
| Equity to period-end assets | 7.40% | 7.18% | 6.91% | 6.90% | 6.81% | 6.91% | 6.54% |
| Common tangible equity to assets | 5.13% | 4.89% | 4.66% | 4.63% | 4.54% | 4.66% | 4.36% |
| Tier 1 leverage capital ratio - Bank | 8.79% | 8.35% | 8.02% | 8.15% | 8.00% | 8.02% | 7.59% |
| Tier 1 risk-based capital ratio - Bank | 11.12% | 9.92% | 9.60% | 9.64% | 9.63% | 9.60% | 9.00% |
| Total risk-based capital ratio - Bank | 14.12% | 12.83% | 12.50% | 12.53% | 12.54% | 12.50% | 11.82% |
| Book value per common share | $ 10.27 | 9.65 | 9.26 | 9.03 | 8.86 | 9.26 | 8.70 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 1,379 | 762 | 1,956 | 3,190 | 625 | 7,416 | 12,855 |
| Net charge-offs to average loans * | 1.18% | 0.64% | 1.60% | 2.58% | 0.50% | 1.49% | 2.43% |
| Allowance for loan losses | $ 11,112 | 12,491 | 11,793 | 12,049 | 13,439 | 11,793 | 12,359 |
| Allowance for loan losses to loans held invst. | 2.42% | 2.60% | 2.42% | 2.46% | 2.68% | 2.42% | 2.40% |
| Nonperforming loans | $ 21,771 | 23,187 | 22,915 | 24,429 | 29,827 | 22,915 | 27,713 |
| Performing restructured loans | $ 12,207 | 15,728 | 18,502 | 18,167 | 17,138 | 18,502 | 4,791 |
| Other real estate owned | $ 6,384 | 7,708 | 6,728 | 8,972 | 11,513 | 6,728 | 9,848 |
| Nonperforming loans to loans held for investment | 4.74% | 4.82% | 4.71% | 4.99% | 5.95% | 4.71% | 5.39% |
| Nonperforming assets to total assets | 4.16% | 4.62% | 4.40% | 5.06% | 6.26% | 4.40% | 5.55% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 677,476 | 668,009 | 673,325 | 661,784 | 660,272 | 673,325 | 676,701 |
| Total loans held for investment | $ 459,144 | 480,888 | 487,031 | 489,782 | 501,144 | 487,031 | 514,029 |
| Total deposits | $ 592,103 | 588,500 | 596,639 | 585,184 | 581,832 | 596,639 | 604,567 |
| Stockholders' equity | $ 50,143 | 47,943 | 46,558 | 45,696 | 44,991 | 46,558 | 44,282 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 670,339 | 663,932 | 670,436 | 664,373 | 666,538 | 668,753 | 695,847 |
| Total earning assets | $ 624,183 | 616,101 | 623,176 | 617,852 | 619,704 | 621,889 | 650,926 |
| Total loans held for investment | $ 466,412 | 479,121 | 489,915 | 494,669 | 500,095 | 498,683 | 529,415 |
| Total interest-bearing deposits | $ 528,463 | 529,405 | 537,287 | 534,140 | 542,800 | 542,402 | 578,815 |
| Common stockholders' equity | $ 33,649 | 32,159 | 31,052 | 30,328 | 30,171 | 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 | |||||||