GREENSBORO, N.C., April 28, 2009 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported net income for the first quarter of 2009 of $665,000 and net income available to common stockholders of $411,000, or $0.12 per diluted common share, compared to $702,000, or $0.21 per diluted common share in the first quarter of 2008. Net income before income taxes and the provision for loan losses was $2.2 million in the first quarter of 2009 compared to $1.3 million in the first quarter of 2008.
Robert T. Braswell, President and CEO of Carolina Bank Holdings, commented, "Our core earnings before provision for loan losses was strong during the first quarter of 2009. On a sequential basis our net income of $665,000 for the first quarter of 2009 exceeded net income of $180,000 in the fourth quarter of 2008. Our net interest margin increased by 0.40% from the fourth quarter of 2008 and fee income from our wholesale mortgage division reached record levels. We have also increased our efforts assisting more of our customers through some challenging credit issues during this difficult economic cycle."
Net interest income for the first quarter of 2009 increased $0.7 million from the same quarter in 2008, or 21.0% to $4.3 million, reflecting a 22.0% increase in average earning assets and a 2 basis point increase in the net interest margin to 2.96% in 2009.
Non-interest income for the first quarter of 2009 was $2.4 million, an increase of $1.5 million from the first quarter of 2008. Excluding gains on the sale of investments of $235,000 during the first quarter of 2009, non-interest income increased 152.9% over the first quarter of 2008. Mortgage banking income, which are fees from the origination and sale of residential mortgage loans, increased to $1.8 million in the first quarter of 2009 from $0.6 million in the first quarter of 2008.
Non-interest expense increased to $4.5 million in the first quarter of 2009, an increase of 44.7% from the first quarter of 2008. Excluding a $251,000 impairment charge in the first quarter of 2009 related to an investment security in a correspondent bank, the increase in expenses was 36.6% and corresponded with our strong loan, deposit and fee income growth. A new corporate headquarters and full service office in downtown Greensboro, a new office in Winston-Salem, and the expanded wholesale mortgage division accounted for much of the new expense in 2009.
Mr. Braswell added, "We continue to concentrate on our bank's asset quality as our non-performing asset levels have risen in 2009 due to economic weakness and the related impact on some of our business customers. We are disappointed in the increase in non-performing assets over the past quarter but are working diligently to reduce them." Non-performing assets were $13.5 million, or 2.13% of assets at March 31, 2009, compared with $6.4 million, or 1.04% of assets at December 31, 2008. The bank had annualized net charge-offs of 0.16% and 0.06% of average loans in the first quarters of 2009 and 2008, respectively. The allowance for loan losses was 1.31% and 1.13% of loans held for investment at March 31, 2009 and 2008, respectively.
Shareholders' equity was strengthened during the first quarter of 2009 from the issuance of $16.0 million of preferred stock to the United States Treasury under the UST Capital Purchase Program and from an increase in retained earnings. Dividends paid and accrued to the United States Treasury totaled $178,000 in the first quarter of 2009.
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. 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 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
At March 31, 2009 and 2008 and December 31, 2008
(unaudited)
March 31, Dec. 31,
2009 2008 2008
---------------------------------------------------------------------
(in thousands)
ASSETS
Cash and due from banks $ 6,282 $ 5,320 $ 5,896
Short-term investments and
interest-earning deposits 38 28 51
Federal funds sold 1 -- 1
------------------ --------
Total cash and cash equivalents 6,321 5,348 5,948
Securities available for sale,
at fair value 52,145 58,793 59,803
Securities held-to-maturity,
at amortized cost 1,074 3,087 1,116
Loans held for sale 30,796 16,020 19,163
Loans 514,203 416,121 501,424
Allowance for loan losses (6,749) (4,700) (5,760)
------------------ --------
Net loans 507,454 411,421 495,664
Premises and equipment, net 19,459 15,542 19,652
Other assets 16,555 13,992 15,265
------------------ --------
Total assets $633,804 $524,203 $616,611
================== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 27,692 $ 29,650 $ 29,367
Interest-bearing 493,755 408,049 468,697
------------------ --------
Total deposits 521,447 437,699 498,064
Short-term borrowings 4,918 5,486 6,591
Federal Home Loan Bank advances 36,840 36,574 56,856
Subordinated debentures 19,283 10,310 19,265
Other liabilities 3,601 3,601 4,259
------------------ --------
Total liabilities 586,089 493,670 585,035
STOCKHOLDERS' EQUITY
Preferred stock, no par, authorized
1,000,000 shares; issued and
outstanding 16,000 shares in 2009 and
none in 2008 14,235 -- --
Common stock, $1 par value, 20,000,000
shares authorized; issued and
outstanding - 3,387,045 shares in
2009 and 3,342,966 and
3,348,193 in 2008 3,387 3,343 3,348
Additional paid-in capital 17,613 15,515 15,586
Retained earnings 13,304 11,401 12,893
Stock in director rabbi trust (713) (588) (648)
Directors deferred fees obligation 713 588 648
Accumulated other comprehensive
income (loss) (824) 274 (251)
------------------ --------
Total stockholders' equity 47,715 30,533 31,576
------------------ --------
Total liabilities and
stockholders' equity $633,804 $524,203 $616,611
================== ========
Carolina Bank Holdings, Inc. and Subsidiary
Consolidated Statements of Operations
For the three months ended March 31, 2009 and 2008
(unaudited)
For the Three Months
Ended March 31,
----------------------
2009 2008
---------------------------------------------------------------------
(in thousands, except
per share data)
Interest income:
Loans $ 7,213 $ 7,318
Investment securities - taxable 593 740
Investment securities - non taxable 123 82
Interest from federal funds sold -- 12
Other interest income -- 1
----------------------
Total interest income 7,929 8,153
Interest expense:
NOW, money market, savings 980 1,227
Time deposits 2,272 2,846
Other borrowed funds 365 515
----------------------
Total interest expense 3,617 4,588
----------------------
Net interest income 4,312 3,565
Provision for loan losses 1,195 235
----------------------
Net interest income after provision
for loan losses 3,117 3,330
Noninterest income:
Service charges 250 197
Mortgage banking income 1,810 575
Gain on sale of investments 235 --
Other 107 85
----------------------
Total noninterest income 2,402 857
Noninterest expense:
Salaries and benefits 2,443 1,755
Occupancy and equipment 593 379
Professional fees 348 289
Outside data processing 205 174
Advertising and promotion 158 115
Stationery, printing and supplies 112 108
Impairment of marketable securities 251 --
Other 367 273
----------------------
Total noninterest expense 4,477 3,093
----------------------
Income before income taxes 1,042 1,094
Income taxes expense 377 392
----------------------
Net income 665 702
Dividends and accretion on preferred stock 254 --
----------------------
Net income available to common stockholders $ 411 $ 702
======================
Basic earnings per common share $ 0.12 $ 0.21
Diluted earnings per common share $ 0.12 $ 0.21
Average common shares outstanding 3,451,559 3,341,061
Average common shares and dilutive
potential common shares outstanding 3,455,621 3,415,029
Total Shares outstanding at end of period 3,387,045 3,342,966
Carolina Bank Holdings, Inc.
Consolidated Financial Highlights
First Quarter 2009
(unaudited)
Quarterly
----------------------------------------------
($ in thousands except 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
for share data) 2009 2008 2008 2008
----------------------------------------------
EARNINGS
Net interest income $ 4,312 3,591 3,860 3,711
Provision for
loan loss $ 1,195 705 350 620
NonInterest income $ 2,402 1,297 1,034 1,421
NonInterest expense $ 4,482 3,931 3,434 3,600
Net income $ 665 180 704 608
Net income available
to common
stockholders $ 411 180 704 608
Basic earnings
per share $ 0.12 0.05 0.21 0.18
Diluted earnings
per share $ 0.12 0.05 0.21 0.18
Average shares
outstanding 3,451,559 3,348,193 3,343,818 3,342,966
Average diluted
shares outstanding 3,455,621 3,366,244 3,367,778 3,397,474
PERFORMANCE RATIOS
Return on average
assets * 0.26% 0.12% 0.49% 0.45%
Return on average
common equity * 5.07% 2.31% 8.99% 7.90%
Net interest margin
(fully-tax
equivalent) * 2.96% 2.56% 2.86% 2.91%
Efficiency ratio 68.65% 79.64% 69.54% 69.63%
# of full-time
equivalent
employees -
period end 119 119 114 101
CAPITAL
Equity to ending
assets 7.53% 5.12% 5.30% 5.42%
Tier 1 leverage
capital ratio - Bank 8.32% 7.00% 7.28% 7.51%
Tier 1 risk-based
capital ratio - Bank 9.25% 7.62% 7.78% 8.08%
Total risk-based
capital ratio - Bank 12.01% 10.29% 10.47% 9.09%
Book value per share $ 10.00 9.43 9.28 9.19
ASSET QUALITY
Net charge-offs
(recoveries) $ 206 399 (2) 218
Net charge-offs to
average loans * 0.16% 0.33% 0.00% 0.20%
Allowance for
loan losses $ 6,749 5,760 5,454 5,102
Allowance for loan
losses to loans
held for investment 1.31% 1.15% 1.14% 1.12%
Nonperforming loans $ 12,201 5,656 2,912 1,601
Restructured loans $ 0 0 0 0
Other real estate
owned $ 1,288 728 441 511
Nonperforming loans
to loans held
for investment 2.37% 1.13% 0.61% 0.35%
Nonperforming assets
to total assets 2.13% 1.04% 0.57% 0.37%
END OF PERIOD BALANCES
Total assets $ 633,804 616,611 591,364 567,119
Total loans held
for investment $ 514,203 501,424 477,298 456,841
Total deposits $ 521,447 498,064 464,969 460,340
Stockholders' equity $ 47,715 31,576 31,357 30,723
AVERAGE BALANCES
Total assets $ 633,285 598,800 571,941 544,808
Total earning assets $ 598,620 563,769 541,231 516,152
Total loans held
for investment $ 514,292 486,472 470,730 436,610
Total interest-bearing
deposits $ 478,247 453,645 427,669 411,423
Stockholders' equity $ 32,901 30,911 31,058 30,869
Quarterly Year Ended
----------------------------------
($ in thousands except 1st Qtr.
for share data) 2008 2008 2007
---------------------- ----------
EARNINGS
Net interest income $ 3,565 14,727 14,171
Provision for loan loss $ 235 1,910 1,162
NonInterest income $ 857 4,609 1,729
NonInterest expense $ 3,093 14,058 9,927
Net income $ 702 2,194 3,024
Net income available
to common stockholders $ 702 2,194 3,024
Basic earnings per share $ 0.21 0.66 0.92
Diluted earnings per share $ 0.21 0.65 0.89
Average shares outstanding 3,341,061 3,344,010 3,280,315
Average diluted shares outstanding 3,415,029 3,386,631 3,402,711
PERFORMANCE RATIOS
Return on average assets * 0.55% 0.39% 0.67%
Return on average common equity * 9.29% 7.13% 10.98%
Net interest margin (fully-tax
equivalent) * 2.94% 2.82% 3.30%
Efficiency ratio 69.40% 72.08% 62.20%
# of full-time equivalent
employees - period end 96 119 89
CAPITAL
Equity to ending assets 5.82% 5.12% 5.93%
Tier 1 leverage capital
ratio - Bank 7.83% 7.00% 8.17%
Tier 1 risk-based capital
ratio - Bank 8.71% 7.62% 8.97%
Total risk-based capital
ratio - Bank 9.73% 10.29% 10.00%
Book value per share $ 9.13 9.43 8.94
ASSET QUALITY
Net charge-offs (recoveries) $ 67 682 528
Net charge-offs to
average loans * 0.06% 0.15% 0.15%
Allowance for loan losses $ 4,700 5,760 4,532
Allowance for loan losses to
loans held for investment 1.13% 1.15% 1.13%
Nonperforming loans $ 3,715 5,656 3,538
Restructured loans $ 0 0 0
Other real estate owned $ 592 728 1,001
Nonperforming loans to loans held
for investment 0.89% 1.13% 0.88%
Nonperforming assets
to total assets 0.82% 1.04% 0.91%
END OF PERIOD BALANCES
Total assets $ 524,203 616,611 500,116
Total loans held for investment $ 416,121 501,424 400,784
Total deposits $ 437,699 498,064 418,573
Stockholders' equity $ 30,533 31,576 29,640
AVERAGE BALANCES
Total assets $ 513,580 557,282 451,130
Total earning assets $ 490,678 527,957 431,926
Total loans held for investment $ 412,521 451,583 358,575
Total interest-bearing deposits $ 401,975 423,679 361,800
Stockholders' equity $ 30,319 30,771 27,541
* annualized for all periods presented