GREENSBORO, N.C., Oct. 30, 2014 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported third quarter 2014 results with highlights as follows:
3rd Quarter Financial Highlights
- Loans held for investment increased 9.3% from $430.7 million at September 30, 2013 to $470.8 million at September 30, 2014. Loans held for investment have grown sequentially for the past five quarters.
- The net interest margin, computed on a fully taxable basis, improved to 3.81% in the third quarter of 2014 from 3.38% in the third quarter of 2013.
- Average non-interest bearing demand deposits increased 12.0% in the third quarter of 2014 from the third quarter of 2013.
- Net income of $1,012,000 in the third quarter of 2014 improved on a sequential basis from $750,000 in the second quarter and from $265,000 in the first quarter.
- Diluted net income per common share was $0.22 in the third quarter of 2014 and $0.23 in the third quarter of 2013. Net income available to common stockholders was $764,000 and $776,000 for the third quarters of 2014 and 2013, respectively.
- Non-performing assets decreased $0.8 million and $3.0 million during the third quarter and first nine months of 2014, respectively, to $16.1 million at September 30, 2014.
- Mortgage banking gross revenues decreased $0.3 million to $2.1 million for the third quarter of 2014 from the third quarter of 2013. The Mortgage Division incurred a net loss of $160,000 in the third quarter of 2014 compared to a net loss of $21,000 in the third quarter of 2013. The third quarter loss for the mortgage division improved from a second quarter 2014 net loss of $183,000.
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 3.81% in the third quarter of 2014 from 3.38% in the third quarter of 2013. Our net income, asset quality, loan growth, net interest margin, and non-interest bearing demand deposits all improved sequentially in the third quarter of 2014."
"We recently began originating Small Business Administration (SBA) loans and expect our first closings in the fourth quarter of 2014. We look forward to expanding SBA lending in 2015 since it complements our existing expertise and strengths in commercial lending," said Braswell.
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, Pinehurst, 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 | ||
| September 30, | December 31, | |
| 2014 | 2013 | |
| (unaudited) | ||
| (in thousands, except share data) | ||
| Assets | ||
| Cash and due from banks | $ 7,484 | $ 6,037 |
| Interest-bearing deposits with banks | 20,426 | 58,859 |
| Bank term deposits | 13,359 | 11,118 |
| Securities available-for-sale, at fair value | 56,090 | 62,016 |
| Securities held-to-maturity (fair values of $16,047 in 2014 and $14,462 in 2013) | 15,928 | 14,810 |
| Loans held for sale | 43,950 | 28,382 |
| Loans | 470,782 | 444,087 |
| Less allowance for loan losses | (6,546) | (7,663) |
| Net loans | 464,236 | 436,424 |
| Premises and equipment, net | 18,582 | 18,261 |
| Other real estate owned | 5,587 | 2,329 |
| Bank-owned life insurance | 11,393 | 11,129 |
| Other assets | 11,994 | 12,442 |
| Total assets | $ 669,029 | $ 661,807 |
| Liabilities and Stockholders' Equity | ||
| Deposits | ||
| Non-interest bearing demand | $ 93,832 | $ 84,911 |
| NOW, money market and savings | 343,107 | 342,970 |
| Time | 150,001 | 151,216 |
| Total deposits | 586,940 | 579,097 |
| Advances from the Federal Home Loan Bank | 2,810 | 2,885 |
| Securities sold under agreements to repurchase | -- | 3,032 |
| Subordinated debentures | 19,610 | 19,610 |
| Other liabilities and accrued expenses | 8,317 | 7,579 |
| Total liabilities | 617,677 | 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 3,434,680 in 2014 and 3,428,776 in 2013 | 3,435 | 3,429 |
| Additional paid-in capital | 16,295 | 16,226 |
| Retained earnings | 19,677 | 18,336 |
| Stock in directors' rabbi trust | (1,384) | (1,347) |
| Directors' deferred fees obligation | 1,384 | 1,347 |
| Accumulated other comprehensive income | 951 | 619 |
| Total stockholders' equity | 51,352 | 49,604 |
| Total liabilities and stockholders' equity | $ 669,029 | $ 661,807 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||||
| Consolidated Statements of Income (unaudited) | ||||
| Three Months | Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| (in thousands, except per share data) | ||||
| Interest income | ||||
| Loans | $ 6,139 | $ 5,659 | $ 17,751 | $ 18,500 |
| Investment securities, taxable | 385 | 323 | 1,216 | 831 |
| Investment securities, non taxable | 131 | 137 | 409 | 350 |
| Interest from deposits in banks | 41 | 91 | 150 | 176 |
| Total interest income | 6,696 | 6,210 | 19,526 | 19,857 |
| Interest expense | ||||
| NOW, money market and savings | 240 | 260 | 716 | 856 |
| Time deposits | 396 | 469 | 1,221 | 1,492 |
| Other borrowed funds | 168 | 179 | 496 | 554 |
| Total interest expense | 804 | 908 | 2,433 | 2,902 |
| Net interest income | 5,892 | 5,302 | 17,093 | 16,955 |
| Provision for loan losses | 270 | 600 | 1,386 | 1,100 |
| Net interest income after provision for loan losses | 5,622 | 4,702 | 15,707 | 15,855 |
| Non-interest income | ||||
| Service charges | 320 | 301 | 940 | 848 |
| Mortgage banking income | 2,114 | 2,413 | 5,401 | 9,894 |
| Gain on sale of investment securities | 113 | 80 | 256 | 272 |
| Other | 55 | 111 | 95 | 411 |
| Total non-interest income | 2,602 | 2,905 | 6,692 | 11,425 |
| Non-interest expense | ||||
| Salaries and benefits | 4,522 | 4,003 | 12,373 | 13,361 |
| Occupancy and equipment | 767 | 742 | 2,321 | 2,236 |
| Foreclosed property expense | 11 | 84 | 174 | 962 |
| Professional fees | 403 | 385 | 1,407 | 926 |
| Outside data processing | 274 | 189 | 800 | 643 |
| FDIC insurance | 132 | 135 | 399 | 383 |
| Advertising and promotion | 222 | 162 | 716 | 653 |
| Stationery, printing and supplies | 148 | 144 | 426 | 478 |
| Other | 350 | 385 | 1,260 | 1,503 |
| Total non-interest expense | 6,829 | 6,229 | 19,876 | 21,145 |
| Income before income taxes | 1,395 | 1,378 | 2,523 | 6,135 |
| Income tax expense | 383 | 355 | 496 | 1,924 |
| Net income | 1,012 | 1,023 | 2,027 | 4,211 |
| Dividends and accretion on preferred stock | 248 | 247 | 686 | 858 |
| Net income available to common shareholders | $ 764 | $ 776 | $ 1,341 | $ 3,353 |
| Net income per common share | ||||
| Basic | $ 0.22 | $ 0.23 | $ 0.39 | $ 0.98 |
| Diluted | $ 0.22 | $ 0.23 | $ 0.39 | $ 0.98 |
| Carolina Bank Holdings, Inc. | |||||||
| Consolidated Financial Highlights | |||||||
| Third Quarter 2014 | |||||||
| (unaudited) | |||||||
| Quarterly | Years Ended | ||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||
| ($ in thousands except for share data) | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2012 |
| EARNINGS | |||||||
| Net interest income | $ 5,892 | 5,643 | 5,558 | 5,360 | 5,302 | 22,315 | 24,187 |
| Provision for loan losses | $ 270 | 346 | 770 | 2,350 | 600 | 3,450 | 2,360 |
| NonInterest income | $ 2,602 | 2,340 | 1,750 | 2,909 | 2,905 | 14,334 | 19,650 |
| NonInterest expense | $ 6,829 | 6,712 | 6,335 | 6,475 | 6,229 | 27,620 | 30,243 |
| Net income (loss) | $ 1,012 | 750 | 265 | (201) | 1,023 | 4,010 | 7,502 |
| Net income (loss) available to common stockholders | $ 764 | 503 | 74 | (425) | 776 | 2,928 | 6,276 |
| Basic earnings (loss) per common share | $ 0.22 | 0.15 | 0.02 | (0.12) | 0.23 | 0.86 | 1.85 |
| Diluted earnings (loss) per common share | $ 0.22 | 0.15 | 0.02 | (0.12) | 0.23 | 0.85 | 1.85 |
| Average common shares outstanding | 3,431,933 | 3,430,036 | 3,428,891 | 3,428,776 | 3,423,961 | 3,410,974 | 3,387,045 |
| Average diluted common shares outstanding | 3,431,975 | 3,434,101 | 3,433,381 | 3,437,015 | 3,435,335 | 3,426,764 | 3,395,383 |
| PERFORMANCE RATIOS | |||||||
| Return on average assets ** | 0.45% | 0.31% | 0.05% | -0.25% | 0.46% | 0.44% | 0.93% |
| Return on average common equity ** | 7.56% | 5.12% | 0.77% | -4.29% | 7.93% | 7.52% | 18.05% |
| Net interest margin (fully-tax equivalent) * | 3.81% | 3.74% | 3.75% | 3.46% | 3.38% | 3.59% | 3.89% |
| Efficiency ratio | 79.48% | 83.19% | 85.85% | 77.70% | 75.27% | 74.88% | 68.68% |
| Efficiency ratio (excluding mortgage division) | 68.81% | 73.10% | 71.07% | 69.95% | 64.43% | 69.63% | 75.09% |
| # full-time equivalent employees - period end | 193 | 195 | 194 | 191 | 203 | 191 | 208 |
| CAPITAL | |||||||
| Equity to period-end assets | 7.68% | 7.57% | 7.60% | 7.50% | 7.54% | 7.50% | 7.79% |
| Common tangible equity to assets | 6.03% | 5.93% | 5.93% | 5.83% | 5.91% | 5.83% | 5.53% |
| Tier 1 leverage capital ratio - Bank | 9.03% | 9.07% | 8.97% | 8.86% | 8.81% | 8.86% | 9.23% |
| Tier 1 risk-based capital ratio - Bank | 11.05% | 10.81% | 11.13% | 11.19% | 11.67% | 11.19% | 11.27% |
| Total risk-based capital ratio - Bank | 13.61% | 13.41% | 13.79% | 13.85% | 14.76% | 13.85% | 14.18% |
| Book value per common share | $ 11.75 | 11.57 | 11.36 | 11.26 | 11.51 | 11.26 | 11.30 |
| ASSET QUALITY | |||||||
| Net charge-offs | $ 927 | 1,432 | 144 | 2,388 | 3,030 | 5,731 | 4,209 |
| Net charge-offs to average loans * | 0.80% | 1.26% | 0.13% | 2.21% | 2.85% | 1.33% | 0.90% |
| Allowance for loan losses | $ 6,546 | 7,203 | 8,289 | 7,663 | 7,701 | 7,663 | 9,944 |
| Allowance for loan losses to loans held invst. | 1.39% | 1.55% | 1.85% | 1.73% | 1.79% | 1.73% | 2.15% |
| Nonperforming loans | $ 10,348 | 12,435 | 16,610 | 16,731 | 19,606 | 16,731 | 13,067 |
| Performing restructured loans | $ 9,883 | 9,983 | 10,145 | 10,381 | 10,933 | 10,381 | 13,822 |
| Other real estate owned | $ 5,587 | 4,431 | 1,494 | 2,329 | 3,446 | 2,329 | 5,940 |
| Nonperforming loans to loans held for investment | 2.20% | 2.68% | 3.70% | 3.77% | 4.55% | 3.77% | 2.83% |
| Nonperforming assets to total assets | 2.40% | 2.52% | 2.75% | 2.88% | 3.45% | 2.88% | 2.75% |
| END OF PERIOD BALANCES | |||||||
| Total assets | $ 669,029 | 669,162 | 657,365 | 661,807 | 667,833 | 661,807 | 691,868 |
| Total loans held for investment | $ 470,782 | 464,706 | 448,858 | 444,087 | 430,736 | 444,087 | 461,728 |
| Total deposits | $ 586,940 | 577,313 | 575,850 | 579,097 | 584,494 | 579,097 | 590,925 |
| Stockholders' equity | $ 51,352 | 50,679 | 49,956 | 49,604 | 50,383 | 49,604 | 53,862 |
| AVERAGE BALANCES | |||||||
| Total assets | $ 669,168 | 656,724 | 657,959 | 664,516 | 671,632 | 671,529 | 671,376 |
| Total earning assets | $ 623,761 | 613,582 | 617,147 | 622,481 | 629,994 | 627,491 | 626,735 |
| Total loans held for investment | $ 466,268 | 455,798 | 454,039 | 431,602 | 425,271 | 432,471 | 465,478 |
| Total non interest-bearing demand deposits | $ 96,248 | 90,186 | 87,597 | 87,987 | 85,972 | 82,343 | 62,155 |
| Common stockholders' equity | $ 40,069 | 39,401 | 38,947 | 39,339 | 38,803 | 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 | |||||||