GREENSBORO, N.C., Oct. 31, 2012 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported third quarter 2012 results with highlights as follows:
Third Quarter 2012 Financial Highlights
- Net income for the third quarter of 2012 was $1,819,000 compared to $812,000 in the third quarter of 2011.
- Diluted net income per common share increased to $0.44 in the third quarter of 2012 from $0.15 in the third quarter of 2011.
- Net income available to common shareholders was $1,505,000 in the third quarter of 2012 compared to $520,000 in the third quarter of 2011.
- Net income available to common shareholders was $4,392,000 in the first nine months of 2012, or $1.30 per common share, compared to $494,000, or $0.15 per common share, in the first nine months of 2011.
- The net interest margin, computed on a fully taxable basis, decreased to 3.71% in the third quarter of 2012 compared to 3.89% in the third quarter of 2011.
- Mortgage banking income gross revenues increased to $5,576,000 in the third quarter of 2012 from $2,964,000 in the third 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 September 30, 2012 for Carolina Bank improved to 9.00% for Tier 1 leverage, 11.14% for Tier 1 risk-based, and 14.09% for total risk-based.
- Average non-interest-bearing demand deposits increased 24.6% in the first nine months of 2012 from the first nine months in 2011.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc. commented, "We are pleased to report strong net income and earnings per share for the third quarter. Our financial results reflect improved credit quality and strong results by our mortgage division. While the continued low interest rate environment negatively impacted our net interest margin during the quarter, our mortgage division experienced record originations and revenues during the third quarter of 2012."
Non-performing loans to total loans held for investment decreased to 4.66% at September 30, 2012 from 4.99% at September 30, 2011. Non-performing assets to total assets decreased to 3.87% at September 30, 2012 from 5.06% at September 30, 2011. Both of these ratios improved from the previous quarter. Braswell commented, "We continue to focus on improving asset quality and resolving several long standing credit challenges."
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 | ||
| September 30, | December 31, | |
| 2012 | 2011 | |
| (unaudited) | ||
| Assets | ||
| Cash and due from banks | $ 5,947 | $ 5,664 |
| Interest-bearing deposits with banks | 32,074 | 7,647 |
| Securities available-for-sale, at fair value | 45,197 | 42,208 |
| Securities held-to-maturity | 226 | 392 |
| Loans held for sale | 95,711 | 91,955 |
| Loans | 459,323 | 487,031 |
| Less allowance for loan losses | (10,725) | (11,793) |
| Net loans | 448,598 | 475,238 |
| Premises and equipment, net | 17,419 | 17,442 |
| Other real estate owned | 4,751 | 6,728 |
| Bank-owned life insurance | 10,670 | 10,385 |
| Other assets | 15,153 | 15,666 |
| Total assets | $ 675,746 | $ 673,325 |
| Liabilities and Stockholders' Equity | ||
| Deposits | ||
| Non-interest bearing demand | $ 62,924 | $ 57,475 |
| NOW, money market and savings | 335,114 | 324,449 |
| Time | 190,634 | 214,715 |
| Total deposits | 588,672 | 596,639 |
| Advances from the Federal Home Loan Bank | 3,006 | 3,075 |
| Securities sold under agreements to repurchase | 3,688 | 1,536 |
| Subordinated debentures | 19,545 | 19,489 |
| Other liabilities and accrued expenses | 8,956 | 6,028 |
| Total liabilities | 623,867 | 626,767 |
| Stockholders' equity | ||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2012 and 2011 | 15,471 | 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 | 15,897 | 15,870 |
| Retained earnings | 13,524 | 9,132 |
| Stock in directors' rabbi trust | (975) | (875) |
| Directors' deferred fees obligation | 975 | 875 |
| Accumulated other comprehensive income | 1,759 | 1,151 |
| Total stockholders' equity | 51,879 | 46,558 |
| Total liabilities and stockholders' equity | $ 675,746 | $ 673,325 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Income (unaudited) | ||||
| Three Months | Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 6,659 | $ 7,153 | $ 20,631 | $ 21,202 |
| Investment securities, taxable | 303 | 333 | 922 | 1,094 |
| Investment securities, non taxable | 89 | 124 | 296 | 433 |
| Interest from deposits in banks | 37 | 22 | 68 | 70 |
| Total interest income | 7,088 | 7,632 | 21,917 | 22,799 |
| Interest expense | ||||
| NOW, money market, savings | 421 | 630 | 1,490 | 1,928 |
| Time deposits | 620 | 822 | 1,993 | 2,654 |
| Other borrowed funds | 199 | 189 | 598 | 564 |
| Total interest expense | 1,240 | 1,641 | 4,081 | 5,146 |
| Net interest income | 5,848 | 5,991 | 17,836 | 17,653 |
| Provision for loan losses | 600 | 1,800 | 2,060 | 5,150 |
| Net interest income after provision for loan losses | 5,248 | 4,191 | 15,776 | 12,503 |
| Non-interest income | ||||
| Service charges | 251 | 300 | 852 | 787 |
| Mortgage banking income | 5,576 | 2,964 | 13,392 | 6,668 |
| Gain on sale of investment securities available-for-sale | -- | 28 | -- | 239 |
| Loss on sale of other real estate owned | (312) | (217) | (266) | (164) |
| Other | 145 | 109 | 458 | 384 |
| Total non-interest income | 5,660 | 3,184 | 14,436 | 7,914 |
| Non-interest expense | ||||
| Salaries and benefits | 4,628 | 3,450 | 13,062 | 9,607 |
| Occupancy and equipment | 670 | 627 | 2,029 | 1,823 |
| Professional fees | 299 | 221 | 819 | 703 |
| Outside data processing | 220 | 227 | 641 | 627 |
| FDIC insurance | 217 | 98 | 639 | 817 |
| Advertising and promotion | 166 | 180 | 546 | 410 |
| Stationery, printing and supplies | 162 | 169 | 464 | 442 |
| Impairment of other real estate owned | 588 | 576 | 1,194 | 1,999 |
| Other real estate owned expense | 218 | 274 | 643 | 883 |
| Other | 1,009 | 540 | 2,324 | 1,543 |
| Total non-interest expense | 8,177 | 6,362 | 22,361 | 18,854 |
| Income before income taxes | 2,731 | 1,013 | 7,851 | 1,563 |
| Income tax expense | 912 | 201 | 2,536 | 197 |
| Net income | 1,819 | 812 | 5,315 | 1,366 |
| Dividends and accretion on preferred stock | 314 | 292 | 923 | 872 |
| Net income available to common stockholders | $ 1,505 | $ 520 | $ 4,392 | $ 494 |
| Net income per common share | ||||
| Basic | $ 0.44 | $ 0.15 | $ 1.30 | $ 0.15 |
| Diluted | $ 0.44 | $ 0.15 | $ 1.30 | $ 0.15 |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| Third Quarter 2012 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr. | |||
| ($ in thousands except for share data) | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 | 2010 |
| EARNINGS | |||||||
| Net interest income | $ 5,848 | 5,939 | 6,049 | 6,442 | 5,991 | 24,095 | 23,341 |
| Provision for loan loss | $ 600 | 0 | 1,460 | 1,700 | 1,800 | 6,850 | 15,133 |
| NonInterest income | $ 5,660 | 4,976 | 3,800 | 3,426 | 3,184 | 11,340 | 13,375 |
| NonInterest expense | $ 8,177 | 7,493 | 6,691 | 6,777 | 6,362 | 25,631 | 26,061 |
| Net income | $ 1,819 | 2,268 | 1,228 | 1,031 | 812 | 2,397 | (2,394) |
| Net income available to common stockholders | $ 1,505 | 1,961 | 926 | 729 | 520 | 1,223 | (3,536) |
| Basic earnings (loss) per share | $ 0.44 | 0.58 | 0.27 | 0.22 | 0.15 | 0.36 | (1.04) |
| Diluted earnings (loss) per share | $ 0.44 | 0.58 | 0.27 | 0.22 | 0.15 | 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 * | 0.89% | 1.18% | 0.56% | 0.43% | 0.31% | 0.18% | -0.51% |
| Return on average common equity * | 16.75% | 23.44% | 11.58% | 9.31% | 6.80% | 4.03% | -11.08% |
| Net interest margin (fully-tax equivalent) * | 3.71% | 3.86% | 3.98% | 4.14% | 3.89% | 3.92% | 3.63% |
| Efficiency ratio | 70.78% | 68.34% | 67.57% | 68.28% | 68.89% | 71.79% | 70.38% |
| # full-time equivalent employees - period end | 206 | 200 | 184 | 174 | 167 | 174 | 155 |
| CAPITAL | |||||||
| Equity to period-end assets | 7.68% | 7.40% | 7.18% | 6.91% | 6.90% | 6.91% | 6.54% |
| Common tangible equity to assets | 5.40% | 5.13% | 4.89% | 4.66% | 4.63% | 4.66% | 4.36% |
| Tier 1 leverage capital ratio - Bank | 9.00% | 8.79% | 8.35% | 8.02% | 8.15% | 8.02% | 7.59% |
| Tier 1 risk-based capital ratio - Bank | 11.14% | 11.12% | 9.92% | 9.60% | 9.64% | 9.60% | 9.00% |
| Total risk-based capital ratio - Bank | 14.09% | 14.12% | 12.83% | 12.50% | 12.53% | 12.50% | 11.82% |
| Book value per common share | $ 10.75 | 10.27 | 9.65 | 9.26 | 9.03 | 9.26 | 8.70 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 988 | 1,379 | 762 | 1,956 | 3,190 | 7,416 | 12,855 |
| Net charge-offs to average loans * | 0.86% | 1.18% | 0.64% | 1.60% | 2.58% | 1.49% | 2.43% |
| Allowance for loan losses | $ 10,725 | 11,112 | 12,491 | 11,793 | 12,049 | 11,793 | 12,359 |
| Allowance for loan losses to loans held invst. | 2.33% | 2.42% | 2.60% | 2.42% | 2.46% | 2.42% | 2.40% |
| Nonperforming loans | $ 21,387 | 21,771 | 23,187 | 22,915 | 24,429 | 22,915 | 27,713 |
| Performing restructured loans | $ 11,192 | 12,207 | 15,728 | 18,502 | 18,167 | 18,502 | 4,791 |
| Other real estate owned | $ 4,751 | 6,384 | 7,708 | 6,728 | 8,972 | 6,728 | 9,848 |
| Nonperforming loans to loans held for investment | 4.66% | 4.74% | 4.82% | 4.71% | 4.99% | 4.71% | 5.39% |
| Nonperforming assets to total assets | 3.87% | 4.16% | 4.62% | 4.40% | 5.06% | 4.40% | 5.55% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 675,746 | 677,476 | 668,009 | 673,325 | 661,784 | 673,325 | 676,701 |
| Total loans held for investment | $ 459,323 | 459,144 | 480,888 | 487,031 | 489,782 | 487,031 | 514,029 |
| Total deposits | $ 588,672 | 592,103 | 588,500 | 596,639 | 585,184 | 596,639 | 604,567 |
| Stockholders' equity | $ 51,879 | 50,143 | 47,943 | 46,558 | 45,696 | 46,558 | 44,282 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 675,569 | 670,339 | 663,932 | 670,436 | 664,373 | 668,753 | 695,847 |
| Total earning assets | $ 631,347 | 624,183 | 616,101 | 623,176 | 617,852 | 621,889 | 650,926 |
| Total loans held for investment | $ 459,800 | 466,412 | 479,121 | 489,915 | 494,669 | 498,683 | 529,415 |
| Total interest-bearing deposits | $ 527,545 | 528,463 | 529,405 | 537,287 | 534,140 | 542,402 | 578,815 |
| Common stockholders' equity | $ 35,750 | 33,649 | 32,159 | 31,052 | 30,328 | 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 | |||||||