GREENSBORO, N.C., Oct. 28, 2013 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported third quarter 2013 results with highlights as follows:
Third Quarter 2013 Financial Highlights
- 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, 2013 for Carolina Bank were 8.81% for Tier 1 leverage, 11.67% for Tier 1 risk-based, and 14.76% for total risk-based.
- $5 million of the $16 million in outstanding preferred stock was repurchased in August 2013 which should be $0.12 accretive to diluted earnings per common share in 2014 based on current interest rates.
- Non-interest bearing demand deposits increased 39.5% in the past year to $87.8 million at September 30, 2013.
- Loans held for investment increased $12.6 million during the third quarter to $430.7 million at September 30, 2013.
- In response to a decline in mortgage banking income, twelve administrative positions were eliminated late in the third quarter resulting in annual savings of approximately $450,000.
- Non-performing assets to total assets decreased to 3.54% at September 30, 2013 from 3.87% at September 30, 2012.
- Diluted net income per common share decreased to $0.98 for the nine months ended September 2013 from $1.30 for the same period in 2012. Diluted net income per common share was $0.23 and $0.44 for the third quarters of 2013 and 2012, respectively.
- Net income was $4,211,000 for the nine months ended September 30, 2013 compared to $5,315,000 for the nine months ended September 30, 2012. Net income was $1,023,000 and $1,819,000 in the third quarters of 2013 and 2012, respectively.
- Net income available to common shareholders was $776,000 in the third quarter of 2013 compared to $1,505,000 in the third quarter of 2012.
- The net interest margin, computed on a fully taxable basis, was 3.46% in the third quarter of 2013 compared to 3.71% in the third quarter of 2012.
"We continued our goal of building shareholder value in the third quarter of 2013 by repurchasing $5 million in preferred stock and by strengthening our relationships with customers as evidenced by an increase in non-interest bearing demand deposits and loans held for investment, primarily commercial loans. We are focusing on continuing our growth in both of these important areas in the coming months to improve our net interest margin," said President and Chief Executive Officer Robert T. Braswell.
"As a result of the increase in mortgage rates and a decline in mortgage banking revenue during 2013, we have made a number of adjustments to continue a profitable mortgage banking operation. We eliminated 12 administrative positions which reduced annual compensation by approximately $450,000. We also opened loan production offices in Chapel Hill and Sanford and employed additional account executives and loan advisors to increase mortgage production. The new loan advisors have been accretive to our results and the new account executives are expected to be accretive to our future results. We continue to monitor the mortgage environment for opportunities to improve our profitability."
"We also continue to concentrate on reduction of non-performing and classified assets in 2013 and are pleased that classified assets have declined for two years in a row," said Braswell. "Our goals include continued reduction of classified assets and improvements in loan quality during the remainder of 2013 and throughout 2014."
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. Residential mortgage loan production offices are located in Burlington, Chapel Hill, Hillsborough, Sanford, and Raleigh in addition to a wholesale residential mortgage operation in Greensboro. 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, | ||
| 2013 | 2012 | ||
| (unaudited) | |||
| (in thousands, except per share data) | |||
| Assets | |||
| Cash and due from banks | $ 7,824 | $ 7,913 | |
| Interest-bearing deposits with banks | 91,062 | 7,186 | |
| Securities available-for-sale, at fair value | 61,683 | 42,036 | |
| Securities held-to-maturity | 12,010 | 211 | |
| Loans held for sale | 28,592 | 131,762 | |
| Loans | 430,736 | 461,728 | |
| Less allowance for loan losses | (7,701) | (9,944) | |
| Net loans | 423,035 | 451,784 | |
| Premises and equipment, net | 17,216 | 17,732 | |
| Other real estate owned | 3,446 | 5,940 | |
| Bank-owned life insurance | 11,039 | 10,765 | |
| Other assets | 11,926 | 16,539 | |
| Total assets | $ 667,833 | $ 691,868 | |
| Liabilities and Stockholders' Equity | |||
| Deposits | |||
| Non-interest bearing demand | $ 87,761 | $ 73,032 | |
| NOW, money market and savings | 339,534 | 343,740 | |
| Time | 157,199 | 174,153 | |
| Total deposits | 584,494 | 590,925 | |
| Advances from the Federal Home Loan Bank | 2,910 | 15,982 | |
| Securities sold under agreements to repurchase | 2,950 | 1,950 | |
| Subordinated debentures | 19,610 | 19,563 | |
| Other liabilities and accrued expenses | 7,486 | 9,586 | |
| Total liabilities | 617,450 | 638,006 | |
| Stockholders' equity | |||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 10,994 shares in 2013 and 16,000 in 2012 | 10,908 | 15,573 | |
| Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,428,776 in 2013 and 3,387,045 in 2012 | 3,429 | 3,387 | |
| Common stock warrants | -- | 1,841 | |
| Additional paid-in capital | 16,226 | 15,906 | |
| Retained earnings | 18,761 | 15,408 | |
| Stock in directors' rabbi trust | (1,257) | (1,050) | |
| Directors' deferred fees obligation | 1,257 | 1,050 | |
| Accumulated other comprehensive income | 1,059 | 1,747 | |
| Total stockholders' equity | 50,383 | 53,862 | |
| Total liabilities and stockholders' equity | $ 667,833 | $ 691,868 | |
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Income (unaudited) | ||||
| Three Months | Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 5,659 | $ 6,659 | $ 18,500 | $ 20,631 |
| Investment securities, taxable | 323 | 303 | 831 | 922 |
| Investment securities, non taxable | 137 | 89 | 350 | 296 |
| Interest from deposits in banks | 91 | 37 | 176 | 68 |
| Total interest income | 6,210 | 7,088 | 19,857 | 21,917 |
| Interest expense | ||||
| NOW, money market and savings | 260 | 421 | 856 | 1,490 |
| Time deposits | 469 | 620 | 1,492 | 1,993 |
| Other borrowed funds | 179 | 199 | 554 | 598 |
| Total interest expense | 908 | 1,240 | 2,902 | 4,081 |
| Net interest income | 5,302 | 5,848 | 16,955 | 17,836 |
| Provision for loan losses | 600 | 600 | 1,100 | 2,060 |
| Net interest income after provision for loan losses | 4,702 | 5,248 | 15,855 | 15,776 |
| Non-interest income | ||||
| Service charges | 301 | 251 | 848 | 852 |
| Mortgage banking income | 2,413 | 5,178 | 9,894 | 12,703 |
| Gain on sale of investment securities | 80 | -- | 272 | -- |
| Other | 111 | 139 | 411 | 440 |
| Total non-interest income | 2,905 | 5,568 | 11,425 | 13,995 |
| Non-interest expense | ||||
| Salaries and benefits | 4,003 | 4,628 | 13,361 | 13,062 |
| Occupancy and equipment | 742 | 670 | 2,236 | 2,029 |
| Foreclosed property expense | 84 | 1,112 | 962 | 2,085 |
| Professional fees | 385 | 299 | 926 | 819 |
| Outside data processing | 189 | 220 | 643 | 641 |
| FDIC insurance | 135 | 217 | 383 | 639 |
| Advertising and promotion | 162 | 166 | 653 | 546 |
| Stationery, printing and supplies | 144 | 162 | 478 | 464 |
| Other | 385 | 611 | 1,503 | 1,635 |
| Total non-interest expense | 6,229 | 8,085 | 21,145 | 21,920 |
| Income before income taxes | 1,378 | 2,731 | 6,135 | 7,851 |
| Income tax expense | 355 | 912 | 1,924 | 2,536 |
| Net income | 1,023 | 1,819 | 4,211 | 5,315 |
| Dividends and accretion on preferred stock | 247 | 314 | 858 | 923 |
| Net income available to common stockholders | $ 776 | $ 1,505 | $ 3,353 | $ 4,392 |
| Net income per common share | ||||
| Basic | $ 0.23 | $ 0.44 | $ 0.98 | $ 1.30 |
| Diluted | $ 0.23 | $ 0.44 | $ 0.98 | $ 1.30 |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| Third Quarter 2013 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||
| ($ in thousands except for share data) | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2011 |
| EARNINGS | |||||||
| Net interest income | $ 5,302 | 5,590 | 6,063 | 6,351 | 5,848 | 24,187 | 24,095 |
| Provision for loan loss | $ 600 | 100 | 400 | 300 | 600 | 2,360 | 6,850 |
| NonInterest income | $ 2,905 | 4,206 | 4,314 | 5,655 | 5,568 | 19,650 | 11,182 |
| NonInterest expense | $ 6,229 | 7,534 | 7,382 | 8,323 | 8,085 | 30,243 | 25,473 |
| Net income | $ 1,023 | 1,470 | 1,718 | 2,187 | 1,819 | 7,502 | 2,397 |
| Net income available to common stockholders | $ 776 | 1,164 | 1,413 | 1,884 | 1,505 | 6,276 | 1,223 |
| Basic earnings per share | $ 0.23 | 0.34 | 0.42 | 0.56 | 0.44 | 1.85 | 0.36 |
| Diluted earnings per share | $ 0.23 | 0.34 | 0.42 | 0.55 | 0.44 | 1.85 | 0.36 |
| Average common shares outstanding | 3,423,961 | 3,403,347 | 3,387,813 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 |
| Average diluted common shares outstanding | 3,435,335 | 3,423,373 | 3,411,335 | 3,420,396 | 3,387,045 | 3,395,383 | 3,387,045 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets * | 0.46% | 0.70% | 0.84% | 1.11% | 0.89% | 0.93% | 0.18% |
| Return on average common equity * | 7.93% | 12.04% | 14.68% | 19.99% | 16.75% | 18.05% | 4.03% |
| Net interest margin (fully-tax equivalent) * | 3.46% | 3.65% | 3.94% | 4.01% | 3.71% | 3.89% | 3.92% |
| Efficiency ratio | 75.27% | 76.50% | 70.78% | 69.02% | 70.55% | 68.68% | 71.66% |
| # full-time equivalent employees - period end | 203 | 215 | 215 | 208 | 206 | 208 | 174 |
| CAPITAL | |||||||
| Equity to period-end assets | 7.54% | 8.09% | 8.21% | 7.79% | 7.68% | 7.79% | 6.91% |
| Common tangible equity to assets | 5.91% | 5.74% | 5.89% | 5.53% | 5.39% | 5.53% | 4.66% |
| Tier 1 leverage capital ratio - Bank | 8.81% | 9.39% | 9.34% | 9.23% | 9.00% | 9.23% | 8.02% |
| Tier 1 risk-based capital ratio - Bank | 11.67% | 12.68% | 12.23% | 11.27% | 11.14% | 11.27% | 9.60% |
| Total risk-based capital ratio - Bank | 14.76% | 15.81% | 15.28% | 14.18% | 14.09% | 14.18% | 12.50% |
| Book value per common share | $ 11.51 | 11.23 | 11.72 | 11.30 | 10.75 | 11.30 | 9.26 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 3,030 | 208 | 105 | 1,080 | 988 | 4,209 | 7,416 |
| Net charge-offs to average loans * | 2.85% | 0.20% | 0.09% | 0.95% | 0.86% | 0.90% | 1.49% |
| Allowance for loan losses | $ 7,701 | 10,131 | 10,239 | 9,944 | 10,725 | 9,944 | 11,793 |
| Allowance for loan losses to loans held invst. | 1.79% | 2.42% | 2.37% | 2.15% | 2.33% | 2.15% | 2.42% |
| Nonperforming loans | $ 19,606 | 16,501 | 10,806 | 13,067 | 21,387 | 13,067 | 22,915 |
| Performing restructured loans | $ 10,933 | 14,151 | 14,391 | 13,822 | 11,192 | 13,822 | 18,502 |
| Other real estate owned | $ 3,446 | 4,031 | 7,555 | 5,940 | 4,751 | 5,940 | 6,728 |
| Nonperforming loans to loans held for investment | 4.55% | 3.95% | 2.50% | 2.83% | 4.66% | 2.83% | 4.71% |
| Nonperforming assets to total assets | 3.54% | 3.07% | 2.72% | 2.75% | 3.87% | 2.75% | 4.40% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 667,833 | 669,489 | 674,764 | 691,868 | 675,746 | 691,868 | 673,325 |
| Total loans held for investment | $ 430,736 | 418,158 | 431,754 | 461,728 | 459,323 | 461,728 | 487,031 |
| Total deposits | $ 584,494 | 581,404 | 585,954 | 590,925 | 588,672 | 590,925 | 596,639 |
| Stockholders' equity | $ 50,383 | 54,192 | 55,389 | 53,862 | 51,879 | 53,862 | 46,558 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 671,632 | 671,745 | 678,373 | 675,573 | 675,569 | 671,376 | 668,753 |
| Total earning assets | $ 629,994 | 627,855 | 629,687 | 635,170 | 631,347 | 626,736 | 621,889 |
| Total loans held for investment | $ 425,271 | 423,587 | 449,704 | 456,738 | 459,800 | 465,478 | 498,683 |
| Total interest-bearing deposits | $ 499,026 | 506,978 | 512,562 | 519,595 | 527,545 | 526,237 | 542,402 |
| Common stockholders' equity | $ 38,803 | 38,764 | 39,044 | 37,487 | 35,750 | 34,778 | 30,337 |
| * annualized for all periods presented | |||||||
| return on average assets and on average common equity are computed using net income available to common stockholders | |||||||