GREENSBORO, N.C., Nov. 2, 2010 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported third quarter 2010 results with highlights as follows:

Third Quarter 2010 Financial Highlights
  • Assets increased 3.5% to $700.2 million at September 30, 2010 from $676.8 million at September 30, 2009. Assets increased 0.5% during the first nine months of 2010.
  • Carolina Bank, the only subsidiary of Carolina Bank Holdings, Inc., continued to maintain "Well Capitalized" status, the highest regulatory capital measure.
  • Net interest income, computed on a fully taxable basis, reached an all time quarterly high of $6.06 million in the third quarter of 2010, up 16.8% from the third quarter of 2009.
  • The net interest margin, computed on a fully taxable basis, increased to 3.70% in the third quarter of 2010 compared to 3.25% in the third quarter of 2009.
  • The mortgage division earned $0.75 million in the third quarter and $1.68 million in the first nine months of 2010 due to lower interest rates and an expanding market.
  • Net loss was $1.80 million in the third quarter of 2010 compared to net income of $0.17 million in the third quarter of 2009.
  • Net loss allocable to common stockholders was $2.09 million, or ($0.62) per diluted share, and $0.11 million, or ($0.03) per diluted share, in the third quarter of 2010 and 2009, respectively.
  • Provision for loan losses increased to $6.6 million in the third quarter of 2010 from $1.7 million in the same quarter of 2009. Asset impairments were $0.44 million and $0.09 million in the third quarters of 2010 and 2009, respectively.

Net loss allocable to common stockholders was $3.93 million, or ($1.16) per diluted common share, in the first nine months of 2010 compared to net income available to common shareholders of $0.35 million, or $0.10 per diluted common share, in first nine months of 2009. Robert T. Braswell, President and CEO of Carolina Bank Holdings, commented, "We continued to increase our net interest income, which reached an all-time high in the third quarter, through our emphasis on building profitable relationships with our customers. Our mortgage division continued to perform at a very high level, earning $0.75 million in the third quarter, an increase of 81.3% from the third quarter of 2009. We expect a strong fourth quarter in our mortgage division based on current applications and low interest rates."

Non-performing loans to total loans held for investment increased to 5.20% at September 30, 2010 from 4.63% at June 30, 2010. Non-performing assets to total assets increased to 5.25% at September 30, 2010 from 4.62% at June 30, 2010. Braswell commented, "The current economic times continue to challenge some of our customers and we are disappointed in our level of non-performing loans. Reducing the elevated level of non-performing assets is a top priority of our team. We have strengthened our risk management procedures and believe we will exit this downturn as a better performing bank." The bank had net loan charge-offs of $5.26 million and $2.26 million in the third quarter of 2010 and 2009, respectively. The allowance for loan losses was 2.24% and 1.33% of loans held for investment at September 30, 2010 and 2009, respectively.

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. A mortgage loan production office was opened in Burlington in July 2010. 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      
At September 30, 2010 and 2009 and December 31, 2009      
  (unaudited)  
  September 30, December 31, 
  2010 2009 2009
       
ASSETS      
Cash and due from banks  $ 4,596  $ 4,882  $ 6,416
Short-term investments and interest-earning deposits  26,226  26,393  34,039
Total cash and cash equivalents  30,822  31,275  40,455
       
Securities available for sale, at fair value  44,129  54,387  52,924
Securities held-to-maturity, at amortized cost  595  853  770
       
Loans held for sale  65,330  24,979  29,388
Loans  519,177  530,791  530,606
Allowance for loan losses  (11,629)  (7,038)  (10,081)
Net loans  507,548  523,753  520,525
       
Premises and equipment, net  18,759  19,408  19,351
Other assets  33,051  22,171  33,639
       
Total assets  $ 700,234  $ 676,826  $ 697,052
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
LIABILITIES      
Deposits:      
 Noninterest-bearing  $ 43,208  $ 36,180  $ 39,261
 Interest-bearing  582,852  558,683  578,210
Total deposits  626,060  594,863  617,471
       
Short-term borrowings  2,866  976  683
Federal Home Loan Bank advances  2,724  7,202  7,783
Subordinated debentures  19,395  19,321  19,360
Other liabilities  4,682  4,447  3,807
Total liabilities  655,727  626,809  649,104
       
STOCKHOLDERS' EQUITY      
Preferred stock, no par, authorized 1,000,000 shares; issued and outstanding 16,000 shares in 2010 and 2009  14,724  14,392  14,473
Common stock, $1 par value, 20,000,000 shares authorized; issued and outstanding -- 3,387,045 shares in 2010 and 2009  3,387  3,387  3,387
Common stock warrants  1,841  1,841  1,841
Additional paid-in capital  15,826  15,790  15,799
Retained earnings  7,516  13,247  11,445
Stock in director rabbi trust  (664)  (821)  (874)
Directors deferred fees obligation  664  821  874
Accumulated other comprehensive income   1,213  1,360  1,003
Total stockholders' equity  44,507  50,017  47,948
       
Total liabilities and stockholders' equity  $ 700,234  $ 676,826  $ 697,052
         
Carolina Bank Holdings, Inc. and Subsidiary        
Consolidated Statements of Operations        
For the three and nine months ended September 30, 2010 and 2009        
(unaudited)        
  Three Months Nine Months
  Ended September 30,  Ended September 30, 
  2010 2009 2010 2009
  (in thousands, except per share data)
Interest income        
Loans  $ 7,771  $ 7,512  $ 22,790  $ 22,139
Investment securities, taxable  393  526  1,275  1,652
Investment securities, non taxable  168  154  494  412
Interest from federal funds sold and other  16  21  60  22
Total interest income  8,348  8,213  24,619  24,225
         
Interest expense        
NOW, money market, savings  857  1,188  2,773  3,302
Time deposits  1,309  1,639  4,020  5,809
Other borrowed funds  201  271  655  947
Total interest expense  2,367  3,098  7,448  10,058
         
Net interest income  5,981  5,115  17,171  14,167
Provision for loan losses  6,620  1,737  13,308  4,968
Net interest income after  provision for loan losses  (639)  3,378  3,863  9,199
Non-interest income        
Service charges  231  299  682  797
Mortgage banking income  3,258  1,962  7,194  6,570
Gains (losses) on sale of investment securities  350  (136)  535  99
Repossessed asset gains (losses)  28  (695)  (239)  (644)
Other  163  149  493  401
Total non-interest income  4,030  1,579  8,665  7,223
         
Non-interest expense        
Salaries and benefits  3,253  2,520  8,637  7,483
Occupancy and equipment  655  583  1,861  1,752
Professional fees  337  295  939  895
Outside data processing  260  209  717  615
FDIC insurance  262  257  781  977
Advertising and promotion  294  145  544  435
Stationery, printing and supplies  153  138  399  423
Impairment of investment security  -- 85  --  850
Impairment of repossessed assets  443  --  1,912  --
Other  764  609  2,081  1,402
Total non-interest expense  6,421  4,841  17,871  14,832
         
Income (loss) before income taxes  (3,030)  116  (5,343)  1,590
Income tax expense (benefit)  (1,226)  (53)  (2,270)  421
Net income (loss)  (1,804)  169  (3,073)  1,169
Dividends and accretion on preferred stock  282  277  855  815
Net income (loss) available (allocable) to common stockholders  $ (2,086)  $ (108)  $ (3,928)  $ 354
         
         
Net income (loss) per common share        
Basic  $ (0.62)  $ (0.03)  $ (1.16)  $ 0.10
Diluted  $ (0.62)  $ (0.03)  $ (1.16)  $ 0.10
               
Carolina Bank Holdings, Inc.              
Consolidated Financial Highlights             
Third Quarter 2010              
(unaudited)              
  Quarterly Year Ended
  3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.    
($ in thousands except for share data) 2010 2010 2010 2009 2009 2009 2008
               
EARNINGS              
Net interest income $ 5,981 5,670 5,520 5,538 5,115  19,705  14,727
Provision for loan loss $ 6,620 4,700 1,988 5,552 1,737  10,520  1,910
NonInterest income $ 4,030 2,502 2,133 2,635 1,579  10,550  4,609
NonInterest expense $ 6,421 6,172 5,278 5,053 4,841  20,577  14,058
Net income (loss)  $ (1,804) (1,568) 299 (1,527) 169  (358)  2,194
Net income (loss) available to common stockholders $ (2,086) (1,856) 14 (1,802) (108) (1,448) 2,194
Basic earnings (loss) per share $ (0.62) (0.55) 0.01 (0.53) (0.03)  (0.43)  0.66
Diluted earnings (loss) per share $ (0.62) (0.55) 0.01 (0.53) (0.03)  (0.43)  0.65
Average shares outstanding 3,387,045 3,387,045 3,387,045 3,387,045 3,387,045  3,383,748  3,344,010
Average diluted shares outstanding 3,387,045 3,387,045 3,387,045 3,387,045 3,387,045  3,385,102  3,386,631
               
PERFORMANCE RATIOS              
Return on average assets * -1.19% -1.06% 0.01% -1.03% -0.06% -0.22% 0.39%
Return on average common equity * -26.22% -22.46% 0.17% -20.42% -1.22% -4.21% 7.13%
Net interest margin (fully-tax equivalent) * 3.70% 3.50% 3.54% 3.41% 3.25% 3.20% 2.82%
Efficiency ratio 63.64% 74.80% 68.24% 61.30% 71.55% 67.42% 72.09%
# full-time equivalent employees - period end  153  147  143  140  136  140  119
               
CAPITAL              
Equity to ending assets 6.36% 6.58% 6.83% 6.88% 7.39% 6.88% 5.12%
Common tangible equity to assets 4.27% 4.50% 4.77% 4.80% 5.26% 4.80% 5.12%
Tier 1 leverage capital ratio - Bank 7.43% 7.23% 7.54% 7.45% 7.84% 7.45% 7.00%
Tier 1 risk-based capital ratio - Bank 8.73% 8.55% 8.59% 8.50% 8.82% 8.50% 7.62%
Total risk-based capital ratio - Bank 11.52% 11.34% 11.34% 11.24% 11.48% 11.24% 10.29%
Book value per common share $ 8.79 9.37 9.91 9.88 10.52 9.88 9.43
               
ASSET QUALITY              
Net charge-offs (recoveries) $ 5,261  5,126  1,372  2,509 2,259  6,199  682
Net charge-offs to average loans * 4.02% 3.80% 1.03% 1.88% 1.73% 1.19% 0.15%
Allowance for loan losses $ 11,629 10,270 10,697 10,081 7,038 10,081 5,760
Allowance for loan losses to loans held invst. 2.24% 1.93% 2.00% 1.90% 1.33% 1.90% 1.15%
Nonperforming loans $ 26,972 24,721 19,636 14,163 14,407 14,163 5,656
Performing restructured loans $ 700 0 0 0 0 0 0
Repossessed assets $ 9,763 7,792 11,507 13,964 7,676 13,964 728
Nonperforming loans to loans held for investment 5.20% 4.63% 3.68% 2.67% 2.71% 2.67% 1.13%
Nonperforming assets to total assets 5.25% 4.62% 4.42% 4.04% 3.26% 4.04% 1.04%
               
END OF PERIOD BALANCES              
Total assets $ 700,234 704,340 704,085 697,052 676,826 697,052 616,611
Total loans held for investment $ 519,177 533,486 534,045 530,606 530,791 530,606 501,424
Total deposits $ 626,060 626,527 625,730 617,471 594,863 617,471 498,064
Stockholders' equity $ 44,507 46,359 48,112 47,948 50,017 47,948 31,576
               
AVERAGE BALANCES              
Total assets $ 698,106 700,598 691,406 694,529 679,780 665,555 557,283
Total earning assets $ 650,068 658,491 641,861 651,733 633,107 624,031 527,958
Total loans held for investment  $ 523,714 539,554 532,928 533,143 523,019 522,965 451,583
Total interest-bearing deposits  $ 580,084 584,031 576,968 573,595 545,912 528,158 423,680
Common stockholders' equity $ 31,568 33,152 33,702 35,008 35,097 34,385 30,771
               
* annualized for all periods presented              
 return on average assets and on average common equity are computed using net income (loss) available to common stockholders  
CONTACT:  Carolina Bank Holdings, Inc.           Robert T. Braswell, President and CEO           336-286-8740          b.braswell@carolinabank.com

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX