Carolina Bank Holdings, Inc. Reports EPS Of $0.85 For 2013

GREENSBORO, N.C., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported 2013 results with highlights as follows:

2013 and 4 th Quarter Financial Highlights
  • Carolina Bank, the subsidiary of Carolina Bank Holdings, Inc., continued to maintain 'Well Capitalized' status, the highest regulatory capital measure. Capital ratios at December 31, 2013 for Carolina Bank were 8.86% for Tier 1 leverage, 11.19% for Tier 1 risk-based, and 13.85% for total risk-based.
  • $5 million of the $16 million in outstanding preferred stock was repurchased in August 2013 which should be $0.12 accretive to diluted earnings per common share in 2014 based on current interest rates.
  • Average non-interest bearing demand deposits increased 32.5% in 2013 from 2012. Average non-interest bearing demand deposits increased 35.1% in the fourth quarter of 2013 from the fourth quarter of 2012.
  • Loans held for investment increased $13.4 million during the fourth quarter to $444.1 million at December 31, 2013.
  • In response to a decline in mortgage banking activity and income, the number of full-time equivalent employees was reduced to 191 at December 31, 2013 from 208 at December 31, 2012.
  • Net income for 2013 was the second highest in our history at $4,010,000 compared to a record $7,502,000 in 2012.
  • Diluted net income per common share decreased to $0.85 in 2013 from $1.85 in 2012. Diluted net income (loss) per common share was $(0.12) and $0.55 for the fourth quarters of 2013 and 2012, respectively.
  • Net income available to common stockholders was $2,928,000 in 2013 compared to $6,276,000 in 2012. Net income (loss) available (allocable) to common stockholders was $(425,000) and $1,884,000 for the fourth quarters of 2013 and 2012, respectively.
  • The net interest margin, computed on a fully taxable basis, was 3.59% in 2013 compared to 3.89% in 2012.
  • Our Winston–Salem office was relocated to Stratford Road, the most desirable shopping area, in December 2013.

"We continued our goal of building shareholder value in the fourth quarter by strengthening our relationships with customers as evidenced by an increase in average non-interest bearing demand deposits of 32.5% and by increasing our loans held for investment, primarily commercial loans, for the past two quarters in a row. We are focusing on continuing our growth in both of these important areas in the coming months to improve our net interest margin," said President and Chief Executive Officer Robert T. Braswell.

"As a result of the increase in mortgage interest rates and a decline in mortgage banking revenue of $5,489,000 during 2013, we have made a number of adjustments to continue a profitable mortgage banking operation. We eliminated 20 administrative positions which reduced annual compensation by approximately $750,000. We also opened loan production offices in Chapel Hill and Sanford during 2013 and employed an additional account executive in a major market. We continue to monitor the mortgage environment for opportunities to improve our profitability."

"We are disappointed to report a net loss in the fourth quarter of 2013 which primarily resulted from estimated loan losses of approximately $1.5 million on one loan relationship. We do not believe this loss is indicative of our high standards and strong credit culture," said Braswell. "Despite this one unexpected setback, classified and non-performing assets continue to decline, demonstrating an improvement in our overall credit quality."

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     
  December 31,
  2013 2012
  (unaudited)  
  (in thousands, except share data)
Assets    
Cash and due from banks  $ 6,037  $ 7,913
Interest-bearing deposits with banks  69,977  7,186
Securities available-for-sale, at fair value  62,016  42,036
Securities held-to-maturity  14,810  211
Loans held for sale  28,382  131,762
Loans   444,087  461,728
Less allowance for loan losses  (7,663)  (9,944)
Net loans   436,424  451,784
Premises and equipment, net  18,261  17,732
Other real estate owned  2,329  5,940
Bank-owned life insurance  11,129  10,765
Other assets  12,442  16,539
Total assets  $ 661,807  $ 691,868
     
Liabilities and Stockholders' Equity    
Deposits    
Non-interest bearing demand  $ 84,911  $ 73,032
NOW, money market and savings  342,970  343,740
Time  151,216  174,153
Total deposits  579,097  590,925
     
Advances from the Federal Home Loan Bank  2,885  15,982
Securities sold under agreements to repurchase  3,032  1,950
Subordinated debentures  19,610  19,563
Other liabilities and accrued expenses  7,579  9,586
Total liabilities  612,203  638,006
     
Stockholders' equity    
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding 10,994 shares in 2013 and 16,000 in 2012  10,994 15,573
Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 3,428,776 in 2013 and 3,387,045 in 2012  3,429 3,387
Common stock warrants  -- 1,841
Additional paid-in capital  16,226 15,906
Retained earnings   18,336 15,408
Stock in directors' rabbi trust  (1,347) (1,050)
Directors' deferred fees obligation  1,347 1,050
Accumulated other comprehensive income   619 1,747
Total stockholders' equity  49,604 53,862
Total liabilities and stockholders' equity  $ 661,807  $ 691,868
     
Carolina Bank Holdings, Inc. and Subsidiary        
Consolidated Statements of Income (unaudited)        
  Three Months Years Ended
  Ended December 31,  December 31, 
  2013 2012 2013 2012
  (in thousands, except per share data)
Interest income        
Loans  $ 5,628  $ 7,072  $ 24,128  $ 27,703
Investment securities, taxable  390  273  1,221  1,195
Investment securities, non taxable  130  106  480  402
Interest from deposits in banks  66  25  242  93
Total interest income  6,214  7,476  26,071  29,393
         
Interest expense        
NOW, money market and savings  243  345  1,099  1,835
Time deposits  443  576  1,935  2,569
Other borrowed funds  168  204  722  802
Total interest expense  854  1,125  3,756  5,206
         
Net interest income  5,360  6,351  22,315  24,187
Provision for loan losses  2,350  300  3,450  2,360
Net interest income after provision for loan losses  3,010  6,051  18,865  21,827
Non-interest income        
Service charges  308  274  1,156  1,126
Mortgage banking income  2,527  5,207  12,421  17,910
Gain on sale of investment securities   --  37  272  37
Other  74  137  485  577
Total non-interest income  2,909  5,655  14,334  19,650
         
Non-interest expense        
Salaries and benefits  3,792  5,023  17,153  18,085
Occupancy and equipment  708  664  2,944  2,693
Foreclosed property expense  5  578  967  2,663
Professional fees  626  461  1,552  1,280
Outside data processing  275  246  918  887
FDIC insurance  136  211  519  850
Advertising and promotion  177  251  830  797
Stationery, printing and supplies  171  176  649  640
Other  585  713  2,088  2,348
Total non-interest expense  6,475  8,323  27,620  30,243
         
Income (loss) before income taxes  (556)  3,383  5,579  11,234
Income tax expense (benefit)  (355)  1,196  1,569  3,732
Net income (loss)  (201)  2,187  4,010  7,502
Dividends and accretion on preferred stock  224  303  1,082  1,226
Net income (loss) available (allocable) to common stockholders  $ (425)  $ 1,884  $ 2,928  $ 6,276
Net income (loss) per common share        
Basic  $ (0.12)  $ 0.56  $ 0.86  $ 1.85
Diluted  $ (0.12)  $ 0.55  $ 0.85  $ 1.85
         
 
Carolina Bank Holdings, Inc.
Consolidated Financial Highlights 
Fourth Quarter 2013
(unaudited)
  Quarterly  Years Ended
  4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr    
($ in thousands except for share data) 2013 2013 2013 2013 2012 2013 2012
               
EARNINGS              
 Net interest income  $ 5,360 5,302 5,590 6,063 6,351  22,315  24,187
 Provision for loan loss  $ 2,350 600 100 400 300  3,450  2,360
 NonInterest income  $ 2,909 2,905 4,206 4,314 5,655  14,334  19,650
 NonInterest expense  $ 6,475 6,229 7,534 7,382 8,323  27,620  30,243
 Net income (loss) $ (201) 1,023 1,470 1,718 2,187  4,010  7,502
 Net income (loss) available to common stockholders $ (425) 776 1,164 1,413 1,884  2,928  6,276
 Basic earnings (loss) per share $ (0.12) 0.23 0.34 0.42 0.56  0.86  1.85
 Diluted earnings (loss) per share $ (0.12) 0.23 0.34 0.42 0.55  0.85  1.85
 Average common shares outstanding 3,428,776 3,423,961 3,403,347 3,387,813 3,387,045 3,410,974 3,387,045
 Average diluted common shares outstanding 3,437,015 3,435,335 3,423,373 3,411,335 3,420,396 3,426,764 3,395,383
               
PERFORMANCE RATIOS              
 Return on average assets ** -0.25% 0.46% 0.70% 0.84% 1.11% 0.44% 0.93%
 Return on average common equity ** -4.29% 7.93% 12.04% 14.68% 19.99% 7.52% 18.05%
 Net interest margin ( fully-tax equivalent) * 3.46% 3.46% 3.65% 3.94% 4.01% 3.59% 3.89%
 Efficiency ratio 77.70% 75.27% 76.50% 70.78% 69.02% 74.88% 68.68%
 # full-time equivalent employees - period end 191 203 215 215 208 191 208
               
CAPITAL              
 Equity to period-end assets 7.50% 7.54% 8.09% 8.21% 7.79% 7.50% 7.79%
 Common tangible equity to assets 5.83% 5.91% 5.74% 5.89% 5.53% 5.83% 5.53%
 Tier 1 leverage capital ratio - Bank 8.86% 8.81% 9.39% 9.34% 9.23% 8.86% 9.23%
 Tier 1 risk-based capital ratio - Bank 11.19% 11.67% 12.68% 12.23% 11.27% 11.19% 11.27%
 Total risk-based capital ratio - Bank 13.85% 14.76% 15.81% 15.28% 14.18% 13.85% 14.18%
 Book value per common share  $ 11.26  11.51  11.23  11.72  11.30  11.26  11.30
               
ASSET QUALITY              
 Net charge-offs   $ 2,388 3,030 208 105 1,080  5,731  4,209
 Net charge-offs to average loans * 2.21% 2.85% 0.20% 0.09% 0.95% 1.33% 0.90%
 Allowance for loan losses  $ 7,663 7,701 10,131 10,239 9,944 7,663 9,944
 Allowance for loan losses to loans held invst. 1.73% 1.79% 2.42% 2.37% 2.15% 1.73% 2.15%
 Nonperforming loans  $ 16,731  19,606  16,501  10,806  13,067  16,731  13,067
 Performing restructured loans  $ 10,381 10,933 14,151 14,391 13,822 10,381 13,822
 Other real estate owned  $ 2,329 3,446 4,031 7,555 5,940 2,329 5,940
 Nonperforming loans to loans held for investment 3.77% 4.55% 3.95% 2.50% 2.83% 3.77% 2.83%
 Nonperforming assets to total assets 2.88% 3.45% 3.07% 2.72% 2.75% 2.88% 2.75%
               
END OF PERIOD BALANCES              
 Total assets  $ 661,807 667,833 669,489 674,764 691,868 661,807 691,868
 Total loans held for investment  $ 444,087 430,736 418,158 431,754 461,728 444,087 461,728
 Total deposits  $ 579,097 584,494 581,404 585,954 590,925 579,097 590,925
 Stockholders' equity  $ 49,604 50,383 54,192 55,389 53,862 49,604 53,862
               
AVERAGE BALANCES              
 Total assets  $ 664,516 671,632 671,745 678,373 675,573 671,529 671,376
 Total earning assets  $ 622,481 629,994 627,855 629,687 635,170 627,491 626,735
 Total loans held for investment   $ 431,602 425,271 423,587 449,704 456,738 432,471 465,478
 Total non interest-bearing demand deposits   $ 87,987 85,972 78,299 76,952 65,142 82,343 62,155
 Common stockholders' equity  $ 39,339 38,803 38,764 39,044 37,487 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
CONTACT: FOR ADDITIONAL INFORMATION, PLEASE CONTACT:         Carolina Bank Holdings, Inc.         T. Allen Liles, EVP and CFO         Telephone: 336-286-8746         Email: a.liles@carolinabank.com

If you liked this article you might like

3 Banking Stocks Pushing Industry Growth

3 Banking Stocks Pushing Industry Growth

Atlantic Coast Federal, Carolina Bank Holdings: Early Volume Plays

Atlantic Coast Federal, Carolina Bank Holdings: Early Volume Plays

Small Cap Regional Banks Continue to Rally

Small Cap Regional Banks Continue to Rally

Small Banks See Opportunity in Mortgages

Small Banks See Opportunity in Mortgages

Monday's Financial Winners & Losers

Monday's Financial Winners & Losers