GREENSBORO, N.C., April 30, 2015 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported first quarter 2015 results with highlights as follows:
1st Quarter 2015 Financial Highlights
- Net income of $1,629,000 in the first quarter of 2015 improved from $265,000 in the first quarter of 2014.
- Net income available to common shareholders was $1.4 million and $0.07 million in the first quarters of 2015 and 2014, respectively.
- Diluted net income per common share was $0.40 in the first quarter of 2015 compared to $0.02 in the first quarter of 2014.
- A private placement of convertible preferred stock was completed on March 31, 2015, and most of the net proceeds of $14.1 million will be used to redeem outstanding preferred stock of $11.0 million. The new issue of convertible preferred stock will automatically convert to common stock if approved by common stockholders at the upcoming annual meeting.
- Average non-interest bearing demand deposits increased 25.9% in the first quarter of 2015 from the first quarter of 2014.
- Non-performing assets decreased to $11.5 million, or 1.62% of assets, at March 31, 2015 from $18.1 million, or 2.75% of assets, at March 31, 2014.
- The Mortgage Division realized net income of $439,000 in the first quarter of 2015 compared to a loss in the first quarter of 2014.
Robert T. Braswell, President and CEO, commented, "I am pleased to report the completion of our private placement of convertible preferred stock at the end of the first quarter, which resulted in net proceeds of approximately $14.1 million. This offering will be used to redeem our existing Series A preferred stock of approximately $11.0 million and provide additional capital for our growth. The conversion of the newly issued convertible preferred to common stock will further strengthen our Common Tier 1 risk-based capital ratio."
"Our earnings per share which totaled $1.08 over the last four quarters and $0.40 in the first quarter of 2015 reflect our success in executing our business plan of growing our business and improving asset quality. The growth of over 25% in our average non-interest bearing demand accounts in the past year validates that our emphasis on exceptional customer service has enhanced our relationships with customers," 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. Our ninth full-service office is currently under construction in Winston-Salem with a planned opening in July of 2015. 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 | ||
| March 31, | December 31, | |
| 2015 | 2014 | |
| (unaudited) | ||
| (in thousands, except share data) | ||
| Assets | ||
| Cash and due from banks | $ 6,670 | $ 7,942 |
| Interest-bearing deposits with banks | 52,454 | 38,232 |
| Bank term deposits | 15,106 | 14,106 |
| Securities available-for-sale, at fair value | 49,403 | 51,200 |
| Securities held-to-maturity (fair values of $15,716 in 2015 and $15,945 in 2014) | 15,313 | 15,644 |
| Loans held for sale | 64,274 | 39,780 |
| Loans | 467,232 | 472,189 |
| Less allowance for loan losses | (6,954) | (6,520) |
| Net loans | 460,278 | 465,669 |
| Premises and equipment, net | 18,568 | 18,311 |
| Other real estate owned | 5,116 | 5,610 |
| Bank-owned life insurance | 11,571 | 11,483 |
| Other assets | 11,919 | 11,286 |
| Total assets | $ 710,672 | $ 679,263 |
| Liabilities and Stockholders' Equity | ||
| Deposits | ||
| Non-interest bearing demand | $ 115,271 | $ 106,163 |
| NOW, money market and savings | 349,716 | 344,919 |
| Time | 144,430 | 143,816 |
| Total deposits | 609,417 | 594,898 |
| Advances from the Federal Home Loan Bank | 2,759 | 2,785 |
| Securities sold under agreements to repurchase | 148 | 176 |
| Subordinated debentures | 19,610 | 19,610 |
| Other liabilities and accrued expenses | 10,500 | 9,139 |
| Total liabilities | 642,434 | 626,608 |
| Stockholders' equity | ||
| Preferred stock, no par value, authorized 1,000,000 shares; | ||
| issued and outstanding 10,994 shares | 10,994 | 10,994 |
| Convertible preferred stock, no par value, authorized 15,500 shares; | ||
| issued and outstanding 15,500 in 2015 and none in 2014 | 14,103 | -- |
| Common stock, $1 par value; authorized 20,000,000 shares; | ||
| issued and outstanding 3,434,680 in 2015 and 2014 | 3,435 | 3,435 |
| Additional paid-in capital | 16,339 | 16,339 |
| Retained earnings | 22,130 | 20,748 |
| Stock in directors' rabbi trust | (1,555) | (1,465) |
| Directors' deferred fees obligation | 1,555 | 1,465 |
| Accumulated other comprehensive income | 1,237 | 1,139 |
| Total stockholders' equity | 68,238 | 52,655 |
| Total liabilities and stockholders' equity | $ 710,672 | $ 679,263 |
| Carolina Bank Holdings, Inc. and Subsidiary | ||
| Consolidated Statements of Income (unaudited) | ||
| Three Months | ||
| Ended March 31, | ||
| 2015 | 2014 | |
| (in thousands, except per share data) | ||
| Interest income | ||
| Loans | $ 5,992 | $ 5,754 |
| Investment securities, taxable | 338 | 420 |
| Investment securities, non taxable | 122 | 142 |
| Interest from deposits in banks | 61 | 60 |
| Total interest income | 6,513 | 6,376 |
| Interest expense | ||
| NOW, money market, savings | 239 | 236 |
| Time deposits | 312 | 418 |
| Other borrowed funds | 152 | 164 |
| Total interest expense | 703 | 818 |
| Net interest income | 5,810 | 5,558 |
| Provision for loan losses | 300 | 770 |
| Net interest income after provision for loan losses | 5,510 | 4,788 |
| Non-interest income | ||
| Service charges | 303 | 299 |
| Mortgage banking income | 2,907 | 1,333 |
| Gain on sale of investment securities available-for-sale | 27 | 49 |
| Other | 46 | 69 |
| Total non-interest income | 3,283 | 1,750 |
| Non-interest expense | ||
| Salaries and benefits | 4,318 | 3,835 |
| Occupancy and equipment | 776 | 761 |
| Foreclosed property expense | (131) | 105 |
| Professional fees | 449 | 458 |
| Outside data processing | 274 | 251 |
| FDIC insurance | 131 | 134 |
| Advertising and promotion | 193 | 321 |
| Stationery, printing and supplies | 151 | 137 |
| Other | 381 | 333 |
| Total non-interest expense | 6,542 | 6,335 |
| Income before income taxes | 2,251 | 203 |
| Income tax expense (benefit) | 622 | (62) |
| Net income | 1,629 | 265 |
| Dividends and accretion on preferred stock | 247 | 191 |
| Net income available to common stockholders | $ 1,382 | $ 74 |
| Net income per common share | ||
| Basic | $ 0.40 | $ 0.02 |
| Diluted | $ 0.40 | $ 0.02 |
| Carolina Bank Holdings, Inc. | ||||||||||
| Consolidated Financial Highlights | ||||||||||
| First Quarter 2015 | ||||||||||
| (unaudited) | ||||||||||
| Quarterly | Years Ended | |||||||||
| 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||
| ($ in thousands except for share data) | 2015 | 2014 | 2014 | 2014 | 2014 | 2014 | 2013 | |||
| EARNINGS | ||||||||||
| Net interest income | $ | 5,810 | 6,164 | 5,892 | 5,643 | 5,558 | 23,257 | 22,315 | ||
| Provision for loan losses | $ | 300 | 50 | 270 | 346 | 770 | 1,436 | 3,450 | ||
| NonInterest income | $ | 3,283 | 2,721 | 2,602 | 2,340 | 1,750 | 9,413 | 14,334 | ||
| NonInterest expense | $ | 6,542 | 7,128 | 6,829 | 6,712 | 6,335 | 27,004 | 27,620 | ||
| Net income | $ | 1,629 | 1,319 | 1,012 | 750 | 265 | 3,346 | 4,010 | ||
| Net income available to common stockholders | $ | 1,382 | 1,072 | 764 | 503 | 74 | 2,413 | 2,928 | ||
| Basic earnings per common share | $ | 0.40 | 0.31 | 0.22 | 0.15 | 0.02 | 0.70 | 0.86 | ||
| Diluted earnings per common share | $ | 0.40 | 0.31 | 0.22 | 0.15 | 0.02 | 0.70 | 0.85 | ||
| Average common shares outstanding | 3,434,680 | 3,434,680 | 3,431,933 | 3,430,036 | 3,428,891 | 3,431,385 | 3,410,974 | |||
| Average diluted common shares outstanding | 3,451,902 | 3,434,680 | 3,432,130 | 3,434,101 | 3,433,501 | 3,433,603 | 3,426,764 | |||
| PERFORMANCE RATIOS | ||||||||||
| Return on average assets * | 0.97% | 0.78% | 0.60% | 0.46% | 0.16% | 0.50% | 0.60% | |||
| Return on average common equity ** | 13.24% | 10.36% | 7.56% | 5.12% | 0.77% | 6.05% | 7.52% | |||
| Net interest margin (fully-tax equivalent) * | 3.75% | 3.95% | 3.81% | 3.74% | 3.75% | 3.80% | 3.59% | |||
| Efficiency ratio | 71.21% | 79.39% | 79.48% | 83.19% | 85.85% | 81.78% | 74.88% | |||
| Efficiency ratio (excluding mortgage division) | 68.63% | 73.94% | 68.81% | 73.10% | 71.07% | 71.73% | 69.63% | |||
| # full-time equivalent employees - period end | 191 | 189 | 193 | 195 | 194 | 189 | 191 | |||
| CAPITAL | ||||||||||
| Equity to period-end assets | 9.60% | 7.75% | 7.68% | 7.57% | 7.60% | 7.75% | 7.50% | |||
| Common tangible equity to assets | 6.07% | 6.13% | 6.03% | 5.93% | 5.93% | 6.13% | 5.83% | |||
| Tier 1 leverage capital ratio - Bank | 9.20% | 9.11% | 9.03% | 9.07% | 8.97% | 9.11% | 8.86% | |||
| Tier 1 risk-based capital ratio - Bank | 11.25% | 11.42% | 11.05% | 10.81% | 11.13% | 11.42% | 11.19% | |||
| Total risk-based capital ratio - Bank | 13.50% | 13.67% | 13.61% | 13.41% | 13.79% | 13.67% | 13.85% | |||
| Book value per common share *** | $ | 11.48 | 12.13 | 11.75 | 11.57 | 11.36 | 12.13 | 11.26 | ||
| ASSET QUALITY | ||||||||||
| Net loan charge-offs (recoveries) | $ | (134) | 76 | 927 | 1,432 | 144 | 2,579 | 5,731 | ||
| Net charge-offs (recoveries) to average loans * | -0.11% | 0.06% | 0.80% | 1.26% | 0.13% | 0.56% | 1.33% | |||
| Allowance for loan losses | $ | 6,954 | 6,520 | 6,546 | 7,203 | 8,289 | 6,520 | 7,663 | ||
| Allowance for loan losses to loans held invst. | 1.49% | 1.38% | 1.39% | 1.55% | 1.85% | 1.38% | 1.73% | |||
| Nonperforming loans | $ | 6,362 | 6,458 | 10,348 | 12,435 | 16,610 | 6,458 | 16,731 | ||
| Performing restructured loans | $ | 9,548 | 9,774 | 9,883 | 9,983 | 10,145 | 9,774 | 10,381 | ||
| Other real estate owned | $ | 5,116 | 5,610 | 5,587 | 4,431 | 1,494 | 5,610 | 2,329 | ||
| Nonperforming loans to loans held for investment | 1.36% | 1.37% | 2.20% | 2.68% | 3.70% | 1.37% | 3.77% | |||
| Nonperforming assets to total assets | 1.62% | 1.78% | 2.40% | 2.52% | 2.75% | 1.78% | 2.88% | |||
| END OF PERIOD BALANCES | ||||||||||
| Total assets | $ | 710,672 | 679,263 | 669,029 | 669,162 | 657,365 | 679,263 | 661,807 | ||
| Total loans held for investment | $ | 467,232 | 472,189 | 470,782 | 464,706 | 448,858 | 472,189 | 444,087 | ||
| Total deposits | $ | 609,417 | 594,898 | 586,940 | 577,313 | 575,850 | 594,898 | 579,097 | ||
| Stockholders' equity | $ | 68,238 | 52,655 | 51,352 | 50,679 | 49,956 | 52,655 | 49,604 | ||
| AVERAGE BALANCES | ||||||||||
| Total assets | $ | 682,777 | 675,159 | 669,168 | 656,724 | 657,959 | 664,812 | 671,529 | ||
| Total earning assets | $ | 638,368 | 629,331 | 623,761 | 613,582 | 617,147 | 620,996 | 627,491 | ||
| Total loans held for investment | $ | 472,073 | 475,106 | 466,268 | 455,798 | 454,039 | 462,870 | 432,471 | ||
| Total non interest-bearing demand deposits | $ | 110,318 | 104,241 | 96,248 | 90,186 | 87,597 | 94,618 | 82,343 | ||
| Common stockholders' equity | $ | 42,341 | 41,065 | 40,069 | 39,401 | 38,947 | 39,904 | 38,927 | ||
| * annualized for all periods presented | ||||||||||
| **return on average common equity is computed using net income available to common stockholders | ||||||||||
| ***assumes conversion of convertible preferred stock to 1,550,000 shares of common stock in 1st Quarter 2015 | ||||||||||