GREENSBORO, N.C., July 28, 2014 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported second quarter 2014 results with highlights as follows:
2nd Quarter Financial Highlights
- Net income of $750,000 in the second quarter of 2014 improved on a sequential basis from $265,000 in the first quarter and from a net loss of $201,000 in the fourth quarter of 2013.
- Loans held for investment increased 11.1% from $418.2 million at June 30, 2013 to $464.7 million at June 30, 2014. Loans held for investment have grown sequentially for the past four quarters.
- The net interest margin, computed on a fully taxable basis, improved to 3.74% in the second quarter of 2014 from 3.65% in the second quarter of 2013.
- Average non-interest bearing demand deposits increased 15.2% in the second quarter of 2014 from the second quarter of 2013.
- Mortgage banking gross revenues decreased $1.6 million to $2.0 million for the second quarter of 2014 from the second quarter of 2013. The Mortgage Division incurred a net loss of $183,000 in the second quarter of 2014 compared to net income of $373,000 in the second quarter of 2013. The second quarter loss for the mortgage division improved from a first quarter 2014 net loss of $435,000.
- Diluted net income per common share decreased to $0.15 in the second quarter of 2014 from $0.34 in the second quarter of 2013. Net income available to common stockholders was $503,000 and $1,164,000 for the second quarters of 2014 and 2013, respectively.
- Excluding the loss from the Mortgage Division, net income available to common stockholders in the second quarter of 2014 would have been approximately $686,000, or $0.20 net income per diluted common share.
- Noninterest expense decreased $0.8 million, or 10.9%, in the second quarter of 2014 from the second quarter of 2013.
- Non-performing assets decreased $1.2 million and $2.2 million during the second quarter and first six months of 2014, respectively, to $16.9 million at June 30, 2014.
Robert T. Braswell, President and CEO, commented, "We continue to build value for our shareholders through our reduction in non-performing assets, by increasing our loans held for investment, and by growing non-interest bearing deposits. As a result of our progress, our net interest margin increased to 3.74% in the second quarter of 2014 from 3.65% in the second quarter of 2013. Our net income, asset quality, loan growth, net interest margin, and non-interest bearing demand deposits all improved sequentially in the second quarter of 2014."
"We have seen a recent upswing in mortgage loan applications which indicates future improvement in the performance of our mortgage division. While the mortgage division's net loss of $183,000 in the second quarter of 2014 was less than the net loss of $435,000 in the first quarter, we continue our focus on improving results through expanded markets and improved efficiencies," said Braswell.
Braswell further commented, "I am pleased to announce that David Caster has joined Carolina Bank as Vice President, Small Business Administration (SBA) Program Manager. Dave brings 29 years of banking experience and will coordinate SBA lending and related sales. We expect SBA lending and related sales to be accretive to our net income in late 2014 and in 2015."
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, and Sanford 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 | ||
| June 30, | December 31, | |
| 2014 | 2013 | |
| (unaudited) | ||
| (in thousands, except share data) | ||
| Assets | ||
| Cash and due from banks | $ 15,143 | $ 6,037 |
| Interest-bearing deposits with banks | 11,076 | 58,859 |
| Bank term deposits | 11,865 | 11,118 |
| Securities available-for-sale, at fair value | 60,348 | 62,016 |
| Securities held-to-maturity (fair values of $16,476 in 2014 and $14,462 in 2013) | 16,269 | 14,810 |
| Loans held for sale | 49,301 | 28,382 |
| Loans | 464,706 | 444,087 |
| Less allowance for loan losses | (7,203) | (7,663) |
| Net loans | 457,503 | 436,424 |
| Premises and equipment, net | 18,355 | 18,261 |
| Other real estate owned | 4,431 | 2,329 |
| Bank-owned life insurance | 11,304 | 11,129 |
| Other assets | 13,567 | 12,442 |
| Total assets | $ 669,162 | $ 661,807 |
| Liabilities and Stockholders' Equity | ||
| Deposits | ||
| Non-interest bearing demand | $ 91,894 | $ 84,911 |
| NOW, money market and savings | 343,570 | 342,970 |
| Time | 141,849 | 151,216 |
| Total deposits | 577,313 | 579,097 |
| Advances from the Federal Home Loan Bank | 12,835 | 2,885 |
| Securities sold under agreements to repurchase | 494 | 3,032 |
| Subordinated debentures | 19,610 | 19,610 |
| Other liabilities and accrued expenses | 8,231 | 7,579 |
| Total liabilities | 618,483 | 612,203 |
| Stockholders' equity | ||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 10,994 shares | 10,994 | 10,994 |
| Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,431,440 in 2014 and 3,428,776 in 2013 | 3,432 | 3,429 |
| Additional paid-in capital | 16,247 | 16,226 |
| Retained earnings | 18,913 | 18,336 |
| Stock in directors' rabbi trust | (1,495) | (1,347) |
| Directors' deferred fees obligation | 1,495 | 1,347 |
| Accumulated other comprehensive income | 1,093 | 619 |
| Total stockholders' equity | 50,679 | 49,604 |
| Total liabilities and stockholders' equity | $ 669,162 | $ 661,807 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Income (unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 5,858 | $ 6,122 | $ 11,612 | $ 12,841 |
| Investment securities, taxable | 411 | 260 | 831 | 508 |
| Investment securities, non taxable | 136 | 107 | 278 | 213 |
| Interest from deposits in banks | 49 | 67 | 109 | 85 |
| Total interest income | 6,454 | 6,556 | 12,830 | 13,647 |
| Interest expense | ||||
| NOW, money market and savings | 240 | 276 | 476 | 596 |
| Time deposits | 407 | 503 | 825 | 1,023 |
| Other borrowed funds | 164 | 187 | 328 | 375 |
| Total interest expense | 811 | 966 | 1,629 | 1,994 |
| Net interest income | 5,643 | 5,590 | 11,201 | 11,653 |
| Provision for loan losses | 346 | 100 | 1,116 | 500 |
| Net interest income after provision for loan losses | 5,297 | 5,490 | 10,085 | 11,153 |
| Non-interest income | ||||
| Service charges | 321 | 295 | 620 | 547 |
| Mortgage banking income | 1,954 | 3,586 | 3,287 | 7,481 |
| Gain on sale of investment securities | 94 | 170 | 143 | 192 |
| Other | (29) | 155 | 40 | 300 |
| Total non-interest income | 2,340 | 4,206 | 4,090 | 8,520 |
| Non-interest expense | ||||
| Salaries and benefits | 4,016 | 4,610 | 7,851 | 9,358 |
| Occupancy and equipment | 793 | 747 | 1,554 | 1,494 |
| Foreclosed property expense | 58 | 547 | 163 | 878 |
| Professional fees | 546 | 355 | 1,004 | 541 |
| Outside data processing | 275 | 195 | 526 | 454 |
| FDIC insurance | 133 | 79 | 267 | 248 |
| Advertising and promotion | 173 | 285 | 494 | 491 |
| Stationery, printing and supplies | 141 | 181 | 278 | 334 |
| Other | 577 | 535 | 910 | 1,118 |
| Total non-interest expense | 6,712 | 7,534 | 13,047 | 14,916 |
| Income before income taxes | 925 | 2,162 | 1,128 | 4,757 |
| Income tax expense | 175 | 692 | 113 | 1,569 |
| Net income | 750 | 1,470 | 1,015 | 3,188 |
| Dividends and accretion on preferred stock | 247 | 306 | 438 | 611 |
| Net income available to common shareholders | $ 503 | $ 1,164 | $ 577 | $ 2,577 |
| Net income per common share | ||||
| Basic | $ 0.15 | $ 0.34 | $ 0.17 | $ 0.76 |
| Diluted | $ 0.15 | $ 0.34 | $ 0.17 | $ 0.75 |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| Second Quarter 2014 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||
| ($ in thousands except for share data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | 2012 |
| EARNINGS | |||||||
| Net interest income | $ 5,643 | 5,558 | 5,360 | 5,302 | 5,590 | 22,315 | 24,187 |
| Provision for loan losses | $ 346 | 770 | 2,350 | 600 | 100 | 3,450 | 2,360 |
| NonInterest income | $ 2,340 | 1,750 | 2,909 | 2,905 | 4,206 | 14,334 | 19,650 |
| NonInterest expense | $ 6,712 | 6,335 | 6,475 | 6,229 | 7,534 | 27,620 | 30,243 |
| Net income (loss) | $ 750 | 265 | (201) | 1,023 | 1,470 | 4,010 | 7,502 |
| Net income (loss) available to common stockholders | $ 503 | 74 | (425) | 776 | 1,164 | 2,928 | 6,276 |
| Basic earnings (loss) per common share | $ 0.15 | 0.02 | (0.12) | 0.23 | 0.34 | 0.86 | 1.85 |
| Diluted earnings (loss) per common share | $ 0.15 | 0.02 | (0.12) | 0.23 | 0.34 | 0.85 | 1.85 |
| Average common shares outstanding | 3,430,036 | 3,428,891 | 3,428,776 | 3,423,961 | 3,403,347 | 3,410,974 | 3,387,045 |
| Average diluted common shares outstanding | 3,434,101 | 3,433,381 | 3,437,015 | 3,435,335 | 3,423,373 | 3,426,764 | 3,395,383 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets ** | 0.31% | 0.05% | -0.25% | 0.46% | 0.70% | 0.44% | 0.93% |
| Return on average common equity ** | 5.12% | 0.77% | -4.29% | 7.93% | 12.04% | 7.52% | 18.05% |
| Net interest margin (fully-tax equivalent) * | 3.74% | 3.75% | 3.46% | 3.46% | 3.65% | 3.59% | 3.89% |
| Efficiency ratio | 83.19% | 85.85% | 77.70% | 75.27% | 76.50% | 74.88% | 68.68% |
| # full-time equivalent employees - period end | 195 | 194 | 191 | 203 | 215 | 191 | 208 |
| CAPITAL | |||||||
| Equity to period-end assets | 7.57% | 7.60% | 7.50% | 7.54% | 8.09% | 7.50% | 7.79% |
| Common tangible equity to assets | 5.93% | 5.93% | 5.83% | 5.91% | 5.74% | 5.83% | 5.53% |
| Tier 1 leverage capital ratio - Bank | 9.07% | 8.97% | 8.86% | 8.81% | 9.39% | 8.86% | 9.23% |
| Tier 1 risk-based capital ratio - Bank | 10.81% | 11.13% | 11.19% | 11.67% | 12.68% | 11.19% | 11.27% |
| Total risk-based capital ratio - Bank | 13.41% | 13.79% | 13.85% | 14.76% | 15.81% | 13.85% | 14.18% |
| Book value per common share | $ 11.57 | 11.36 | 11.26 | 11.51 | 11.23 | 11.26 | 11.30 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 1,432 | 144 | 2,388 | 3,030 | 208 | 5,731 | 4,209 |
| Net charge-offs to average loans * | 1.26% | 0.13% | 2.21% | 2.85% | 0.20% | 1.33% | 0.90% |
| Allowance for loan losses | $ 7,203 | 8,289 | 7,663 | 7,701 | 10,131 | 7,663 | 9,944 |
| Allowance for loan losses to loans held invst. | 1.55% | 1.85% | 1.73% | 1.79% | 2.42% | 1.73% | 2.15% |
| Nonperforming loans | $ 12,435 | 16,610 | 16,731 | 19,606 | 16,501 | 16,731 | 13,067 |
| Performing restructured loans | $ 9,983 | 10,145 | 10,381 | 10,933 | 14,151 | 10,381 | 13,822 |
| Other real estate owned | $ 4,431 | 1,494 | 2,329 | 3,446 | 4,031 | 2,329 | 5,940 |
| Nonperforming loans to loans held for investment | 2.68% | 3.70% | 3.77% | 4.55% | 3.95% | 3.77% | 2.83% |
| Nonperforming assets to total assets | 2.52% | 2.75% | 2.88% | 3.45% | 3.07% | 2.88% | 2.75% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 669,162 | 657,365 | 661,807 | 667,833 | 669,489 | 661,807 | 691,868 |
| Total loans held for investment | $ 464,706 | 448,858 | 444,087 | 430,736 | 418,158 | 444,087 | 461,728 |
| Total deposits | $ 577,313 | 575,850 | 579,097 | 584,494 | 581,404 | 579,097 | 590,925 |
| Stockholders' equity | $ 50,679 | 49,956 | 49,604 | 50,383 | 54,192 | 49,604 | 53,862 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 656,724 | 657,959 | 664,516 | 671,632 | 671,745 | 671,529 | 671,376 |
| Total earning assets | $ 613,582 | 617,147 | 622,481 | 629,994 | 627,855 | 627,491 | 626,735 |
| Total loans held for investment | $ 455,798 | 454,039 | 431,602 | 425,271 | 423,587 | 432,471 | 465,478 |
| Total non interest-bearing demand deposits | $ 90,186 | 87,597 | 87,987 | 85,972 | 78,299 | 82,343 | 62,155 |
| Common stockholders' equity | $ 39,401 | 38,947 | 39,339 | 38,803 | 38,764 | 38,927 | 34,761 |
| * annualized for all periods presented | |||||||
| **return on average assets and on average common equity are computed using net income available to common stockholders | |||||||