GREENSBORO, N.C., April 29, 2013 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported first quarter 2013 results with highlights as follows:
First Quarter 2013 Financial Highlights
- Diluted net income per common share increased 55.6% to $0.42 in the first quarter of 2013 from $0.27 in the first quarter of 2012.
- Net income for the first quarter of 2013 was $1,718,000, an increase of 39.9% from net income of $1,228,000 reported in the first quarter of 2012.
- Net income available to common shareholders was $1,413,000 in the first quarter of 2013 compared to $926,000 in the first quarter of 2012.
- The net interest margin, computed on a fully taxable basis, decreased to 3.94% in the first quarter of 2013 compared to 3.98% in the first quarter of 2012.
- Mortgage banking revenues increased 22.9% to $3,895,000 in the first quarter of 2013 from $3,169,000 in the first quarter of 2012.
- Carolina Bank, the subsidiary of Carolina Bank Holdings, Inc., continued to maintain 'Well Capitalized' status, the highest regulatory capital measure. Capital ratios at March 31, 2013 for Carolina Bank improved to 9.34% for Tier 1 leverage, 12.23% for Tier 1 risk-based, and 15.28% for total risk-based.
- Average non-interest-bearing demand deposits increased 34.0% in the first quarter of 2013 from the same quarter in 2012.
- Net loan charge-offs declined to $105,000, or 0.09% of average loans (annualized), in the first quarter of 2013 from $762,000, or 0.64% of average loans (annualized), in the first quarter of 2012.
- Non-performing assets to total assets decreased to 2.72% at March 31, 2013 from 4.62% at March 31, 2012
"We continued our goal of building shareholder value in 2013 by increasing net income and by strengthening our relationships with customers despite a challenging lending environment," said President and Chief Executive Officer Robert T. Braswell. "Average loans declined during the first quarter of 2013 due to irrational terms being offered by some of our competitors and lackluster demand by borrowers, but we continued our focus on increasing our commercial relationships as evidenced by a 34% increase in average non-interest-bearing demand deposits in the first quarter of 2013 from the first quarter of last year."
"We expanded our residential mortgage operation in Raleigh in the first quarter of 2013 and are pleased to report that our residential mortgage division experienced higher originations and increased profitability in the first quarter of 2013 over the first quarter of 2012. The mortgage division experienced slowing originations and lower profitability on a sequential quarter basis due to reduced refinancing activity by borrowers."
"We are continuing our focus in reducing non-performing assets in 2013 and are pleased that loan charge-offs and non-performing assets declined substantially in 2013," said Braswell. "Our provision for loan losses declined to $400,000 in the first quarter of 2013 from $1,460,000 in the first quarter of 2012 due to the improvement in the quality of our loan portfolio, reduced loan charge-offs, and lower loan balances."
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, Hillsborough, 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 | ||||
|
March 31, 2013 |
December 31, 2012 |
|||
| (unaudited) | ||||
| (in thousands, except share data) | ||||
| Assets | ||||
| Cash and due from banks | $ 6,613 | $ 7,913 | ||
| Interest-bearing deposits with banks | 72,243 | 7,186 | ||
| Securities available-for-sale, at fair value | 46,931 | 42,036 | ||
| Securities held-to-maturity | -- | 211 | ||
| Loans held for sale | 77,440 | 131,762 | ||
| Loans | 431,754 | 461,728 | ||
| Less allowance for loan losses | (10,239) | (9,944) | ||
| Net loans | 421,515 | 451,784 | ||
| Premises and equipment, net | 17,551 | 17,732 | ||
| Other real estate owned | 7,555 | 5,940 | ||
| Bank-owned life insurance | 10,858 | 10,765 | ||
| Other assets | 14,058 | 16,539 | ||
| Total assets | $ 674,764 | $ 691,868 | ||
| Liabilities and Stockholders' Equity | ||||
| Deposits | ||||
| Non-interest bearing demand | $ 74,432 | $ 73,032 | ||
| NOW, money market and savings | 338,133 | 343,740 | ||
| Time | 173,389 | 174,153 | ||
| Total deposits | 585,954 | 590,925 | ||
| Advances from the Federal Home Loan Bank | 2,958 | 15,982 | ||
| Securities sold under agreements to repurchase | 3,112 | 1,950 | ||
| Subordinated debentures | 19,582 | 19,563 | ||
| Other liabilities and accrued expenses | 7,769 | 9,586 | ||
| Total liabilities | 619,375 | 638,006 | ||
| Stockholders' equity | ||||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 16,000 shares | 15,677 | 15,573 | ||
| Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,388,773 in 2013 and 3,387,045 in 2012 | 3,389 | 3,387 | ||
| Common stock warrants | 1,841 | 1,841 | ||
| Additional paid-in capital | 15,917 | 15,906 | ||
| Retained earnings | 16,822 | 15,408 | ||
| Stock in directors' rabbi trust | (1,128) | (1,050) | ||
| Directors' deferred fees obligation | 1,128 | 1,050 | ||
| Accumulated other comprehensive income | 1,743 | 1,747 | ||
| Total stockholders' equity | 55,389 | 53,862 | ||
| Total liabilities and stockholders' equity | $ 674,764 | $ 691,868 | ||
| Carolina Bank Holdings, Inc. and Subsidiary | ||
| Consolidated Statements of Income (unaudited) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| (in thousands, except per share data) | ||
| Interest income | ||
| Loans | $ 6,719 | $ 7,085 |
| Investment securities, taxable | 248 | 306 |
| Investment securities, non taxable | 106 | 107 |
| Interest from deposits in banks | 18 | 10 |
| Total interest income | 7,091 | 7,508 |
| Interest expense | ||
| NOW, money market, savings | 320 | 548 |
| Time deposits | 520 | 709 |
| Other borrowed funds | 188 | 202 |
| Total interest expense | 1,028 | 1,459 |
| Net interest income | 6,063 | 6,049 |
| Provision for loan losses | 400 | 1,460 |
| Net interest income after provision for loan losses | 5,663 | 4,589 |
| Non-interest income | ||
| Service charges | 252 | 283 |
| Mortgage banking income | 3,895 | 3,169 |
| Gain on sale of investment securities available-for-sale | 22 | -- |
| Other | 145 | 167 |
| Total non-interest income | 4,314 | 3,619 |
| Non-interest expense | ||
| Salaries and benefits | 4,748 | 4,030 |
| Occupancy and equipment | 747 | 682 |
| Foreclosed property expense | 331 | 399 |
| Professional fees | 186 | 257 |
| Outside data processing | 259 | 206 |
| FDIC insurance | 169 | 215 |
| Advertising and promotion | 206 | 175 |
| Stationery, printing and supplies | 153 | 135 |
| Other | 583 | 411 |
| Total non-interest expense | 7,382 | 6,510 |
| Income before income taxes | 2,595 | 1,698 |
| Income tax expense | 877 | 470 |
| Net income | 1,718 | 1,228 |
| Dividends and accretion on preferred stock | 305 | 302 |
| Net income available to common stockholders | $ 1,413 | $ 926 |
| Net income per common share | ||
| Basic | $ 0.42 | $ 0.27 |
| Diluted | $ 0.42 | $ 0.27 |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| First Quarter 2013 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| ($ in thousands except for share data) |
1st Qtr 2013 |
4th Qtr 2012 |
3rd Qtr 2012 |
2nd Qtr 2012 |
1st Qtr 2012 |
2012 |
2011 |
| EARNINGS | |||||||
| Net interest income | $ 6,063 | 6,351 | 5,848 | 5,939 | 6,049 | 24,187 | 24,095 |
| Provision for loan loss | $ 400 | 300 | 600 | -- | 1,460 | 2,360 | 6,850 |
| NonInterest income | $ 4,314 | 5,655 | 5,568 | 4,806 | 3,619 | 19,650 | 11,182 |
| NonInterest expense | $ 7,382 | 8,323 | 8,085 | 7,323 | 6,510 | 30,243 | 25,473 |
| Net income | $ 1,718 | 2,187 | 1,819 | 2,268 | 1,228 | 7,502 | 2,397 |
| Net income available to common stockholders | $ 1,413 | 1,884 | 1,505 | 1,961 | 926 | 6,276 | 1,223 |
| Basic earnings per share | $ 0.42 | 0.56 | 0.44 | 0.58 | 0.27 | 1.85 | 0.36 |
| Diluted earnings per share | $ 0.42 | 0.55 | 0.44 | 0.58 | 0.27 | 1.85 | 0.36 |
| Average common shares outstanding | 3,387,813 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 | 3,387,045 |
| Average diluted common shares outstanding | 3,398,070 | 3,420,396 | 3,387,045 | 3,387,045 | 3,387,045 | 3,395,383 | 3,387,045 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets * | 0.84% | 1.11% | 0.89% | 1.18% | 0.56% | 0.93% | 0.18% |
| Return on average common equity * | 14.68% | 19.99% | 16.75% | 23.44% | 11.58% | 18.05% | 4.03% |
| Net interest margin (fully-tax equivalent) * | 3.94% | 4.01% | 3.71% | 3.86% | 3.98% | 3.89% | 3.92% |
| Efficiency ratio | 70.78% | 69.02% | 70.55% | 67.84% | 66.97% | 68.68% | 71.66% |
| # full-time equivalent employees - period end | 215 | 208 | 206 | 200 | 184 | 208 | 174 |
| CAPITAL | |||||||
| Equity to period-end assets | 8.21% | 7.79% | 7.68% | 7.40% | 7.18% | 7.79% | 6.91% |
| Common tangible equity to assets | 5.89% | 5.53% | 5.39% | 5.13% | 4.89% | 5.53% | 4.66% |
| Tier 1 leverage capital ratio - Bank | 9.34% | 9.23% | 9.00% | 8.79% | 8.35% | 9.23% | 8.02% |
| Tier 1 risk-based capital ratio - Bank | 12.23% | 11.27% | 11.14% | 11.12% | 9.92% | 11.27% | 9.60% |
| Total risk-based capital ratio - Bank | 15.28% | 14.18% | 14.09% | 14.12% | 12.83% | 14.18% | 12.50% |
| Book value per common share | $ 11.72 | 11.30 | 10.75 | 10.27 | 9.65 | 11.30 | 9.26 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 105 | 1,080 | 988 | 1,379 | 762 | 4,209 | 7,416 |
| Net charge-offs to average loans * | 0.09% | 0.95% | 0.86% | 1.18% | 0.64% | 0.90% | 1.49% |
| Allowance for loan losses | $ 10,239 | 9,944 | 10,725 | 11,112 | 12,491 | 9,944 | 11,793 |
| Allowance for loan losses to loans held invst. | 2.37% | 2.15% | 2.33% | 2.42% | 2.60% | 2.15% | 2.42% |
| Nonperforming loans | $ 10,806 | 13,067 | 21,387 | 21,771 | 23,187 | 13,067 | 22,915 |
| Performing restructured loans | $ 14,391 | 13,822 | 11,192 | 12,207 | 15,728 | 13,822 | 18,502 |
| Other real estate owned | $ 7,555 | 5,940 | 4,751 | 6,384 | 7,708 | 5,940 | 6,728 |
| Nonperforming loans to loans held for investment | 2.50% | 2.83% | 4.66% | 4.74% | 4.82% | 2.83% | 4.71% |
| Nonperforming assets to total assets | 2.72% | 2.75% | 3.87% | 4.16% | 4.62% | 2.75% | 4.40% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 674,764 | 691,868 | 675,746 | 677,476 | 668,009 | 691,868 | 673,325 |
| Total loans held for investment | $ 431,754 | 461,728 | 459,323 | 459,144 | 480,888 | 461,728 | 487,031 |
| Total deposits | $ 585,954 | 590,925 | 588,672 | 592,103 | 588,500 | 590,925 | 596,639 |
| Stockholders' equity | $ 55,389 | 53,862 | 51,879 | 50,143 | 47,943 | 53,862 | 46,558 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 678,373 | 675,573 | 675,569 | 670,339 | 663,932 | 671,376 | 668,753 |
| Total earning assets | $ 629,687 | 635,170 | 631,347 | 624,183 | 616,101 | 626,736 | 621,889 |
| Total loans held for investment | $ 449,704 | 456,738 | 459,800 | 466,412 | 479,121 | 465,478 | 498,683 |
| Total interest-bearing deposits | $ 512,562 | 519,595 | 527,545 | 528,463 | 529,405 | 526,237 | 542,402 |
| Common stockholders' equity | $ 39,044 | 37,487 | 35,750 | 33,649 | 32,159 | 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 | |||||||