×

Carolina Bank Holdings, Inc. Reports EPS of $0.31 for the Fourth Quarter of 2014

GREENSBORO, N.C., Jan. 30, 2015 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported 2014 and fourth quarter results with highlights as follows:

2014 and 4th Quarter Financial Highlights

  • Loans held for investment increased 6.3% from $444.1 million at December 31, 2013 to $472.2 million at December 31, 2014. Loans held for investment have grown consecutively for the past six quarters.
  • The net interest margin, computed on a fully taxable basis, improved to 3.95% in the fourth quarter of 2014 from 3.46% in the fourth quarter of 2013. The net interest margin was 3.80% and 3.59% for the years ended December 31, 2014 and 2013, respectively.
  • Average non-interest bearing demand deposits increased 18.5% in the fourth quarter of 2014 from the fourth quarter of 2013.
  • Net income of $1,319,000 in the fourth quarter of 2014 improved from $1,012,000 in the third quarter of 2014 and from $750,000 in the second quarter of 2014.
  • Diluted net income per common share was $0.31 in the fourth quarter of 2014 compared to $0.22 and $0.15 in the previous two quarters, respectively.
  • Non-performing assets decreased by $4.0 million during the fourth quarter and $6.9 million during the year to $12.1 million at December 31, 2014.
  • Net income available to common shareholders was $2.4 million and $2.9 million in 2014 and 2013, respectively. Diluted net income per common share was $0.70 in 2014 compared to $0.85 in 2013.
  • The Mortgage Division realized net income of $76,000 in the fourth quarter of 2014 compared to losses in the previous three quarters. The mortgage division had a net loss of $702,000 in 2014 compared to net income of $1,086,000 in 2013.

Robert T. Braswell, President and CEO, commented, "As we previously communicated, sequential quarterly improvement has occurred through proper execution of various improvement plans. The growth in our net income, loans, deposits, net interest income and non-interest income during the fourth quarter of 2014 resulted from our exceptional customer service which has been our focus for several years and has enhanced our relationships with customers. We believe fourth quarter results have built an excellent base for future improvement 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. Our ninth full-service office is currently under construction in Winston-Salem with a planned opening in the second quarter 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
December 31,
2014 2013
(unaudited)
(in thousands, except share data)
Assets
Cash and due from banks $ 7,942 $ 6,037
Interest-bearing deposits with banks 38,232 58,859
Bank term deposits 14,106 11,118
Securities available-for-sale, at fair value 51,200 62,016
Securities held-to-maturity (fair values of $15,933 in 2014 and $14,462 in 2013) 15,644 14,810
Loans held for sale 39,780 28,382
Loans 472,189 444,087
Less allowance for loan losses (6,520) (7,663)
Net loans 465,669 436,424
Premises and equipment, net 18,311 18,261
Other real estate owned 5,610 2,329
Bank-owned life insurance 11,483 11,129
Other assets 11,286 12,442
Total assets $ 679,263 $ 661,807
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing demand $ 106,163 $ 84,911
NOW, money market and savings 344,919 342,970
Time 143,816 151,216
Total deposits 594,898 579,097
Advances from the Federal Home Loan Bank 2,785 2,885
Securities sold under agreements to repurchase 176 3,032
Subordinated debentures 19,610 19,610
Other liabilities and accrued expenses 9,139 7,579
Total liabilities 626,608 612,203
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 16,339 16,226
Retained earnings 20,748 18,336
Stock in directors' rabbi trust (1,465) (1,347)
Directors' deferred fees obligation 1,465 1,347
Accumulated other comprehensive income 1,139 619
Total stockholders' equity 52,655 49,604
Total liabilities and stockholders' equity $ 679,263 $ 661,807
Carolina Bank Holdings, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)
Three Months Years Ended
Ended December 31, December 31,
2014 2013 2014 2013
(in thousands, except per share data)
Interest income
Loans $ 6,417 $ 5,628 $ 24,168 $ 24,128
Investment securities, taxable 331 390 1,547 1,221
Investment securities, non taxable 123 130 532 480
Interest from deposits in banks 51 66 201 242
Total interest income 6,922 6,214 26,448 26,071
Interest expense
NOW, money market, savings 241 243 957 1,099
Time deposits 372 443 1,593 1,935
Other borrowed funds 145 168 641 722
Total interest expense 758 854 3,191 3,756
Net interest income 6,164 5,360 23,257 22,315
Provision for loan losses 50 2,350 1,436 3,450
Net interest income after provision for loan losses 6,114 3,010 21,821 18,865
Non-interest income
Service charges 329 308 1,269 1,156
Mortgage banking income 2,370 2,527 7,771 12,421
Gain on sale of investment securities available-for-sale 18 -- 274 272
Other 4 74 99 485
Total non-interest income 2,721 2,909 9,413 14,334
Non-interest expense
Salaries and benefits 4,578 3,792 16,951 17,153
Occupancy and equipment 749 708 3,070 2,944
Foreclosed property expense 96 5 270 967
Professional fees 374 626 1,781 1,552
Outside data processing 290 275 1,090 918
FDIC insurance 135 136 534 519
Advertising and promotion 222 177 938 830
Stationery, printing and supplies 134 171 560 649
Other 550 585 1,810 2,088
Total non-interest expense 7,128 6,475 27,004 27,620
Income before income taxes 1,707 (556) 4,230 5,579
Income tax expense 388 (355) 884 1,569
Net income 1,319 (201) 3,346 4,010
Dividends and accretion on preferred stock 247 224 933 1,082
Net income available to common stockholders $ 1,072 $ (425) $ 2,413 $ 2,928
Net income per common share
Basic $ 0.31 $ (0.12) $ 0.70 $ 0.86
Diluted $ 0.31 $ (0.12) $ 0.70 $ 0.85
Carolina Bank Holdings, Inc.
Consolidated Financial Highlights
Fourth Quarter 2014
(unaudited)
Quarterly Years Ended
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
($ in thousands except for share data) 2014 2014 2014 2014 2013 2014 2013
EARNINGS
Net interest income $ 6,164 5,892 5,643 5,558 5,360 23,257 22,315
Provision for loan losses $ 50 270 346 770 2,350 1,436 3,450
NonInterest income $ 2,721 2,602 2,340 1,750 2,909 9,413 14,334
NonInterest expense $ 7,128 6,829 6,712 6,335 6,475 27,004 27,620
Net income (loss) $ 1,319 1,012 750 265 (201) 3,346 4,010
Net income (loss) available to common stockholders $ 1,072 764 503 74 (425) 2,413 2,928
Basic earnings (loss) per common share $ 0.31 0.22 0.15 0.02 (0.12) 0.70 0.86
Diluted earnings (loss) per common share $ 0.31 0.22 0.15 0.02 (0.12) 0.70 0.85
Average common shares outstanding 3,434,680 3,431,933 3,430,036 3,428,891 3,428,776 3,431,385 3,410,974
Average diluted common shares outstanding 3,434,680 3,432,130 3,434,101 3,433,501 3,437,015 3,433,603 3,426,764
PERFORMANCE RATIOS
Return on average assets * 0.78% 0.60% 0.46% 0.16% -0.12% 0.50% 0.60%
Return on average common equity ** 10.36% 7.56% 5.12% 0.77% -4.29% 6.05% 7.52%
Net interest margin (fully-tax equivalent) * 3.95% 3.81% 3.74% 3.75% 3.46% 3.80% 3.59%
Efficiency ratio 79.39% 79.48% 83.19% 85.85% 77.70% 81.78% 74.88%
Efficiency ratio (excluding mortgage division) 73.94% 68.81% 73.10% 71.07% 69.95% 71.73% 69.63%
# full-time equivalent employees - period end 189 193 195 194 191 189 191
CAPITAL
Equity to period-end assets 7.75% 7.68% 7.57% 7.60% 7.50% 7.75% 7.50%
Common tangible equity to assets 6.13% 6.03% 5.93% 5.93% 5.83% 6.13% 5.83%
Tier 1 leverage capital ratio - Bank 9.11% 9.03% 9.07% 8.97% 8.86% 9.11% 8.86%
Tier 1 risk-based capital ratio - Bank 11.42% 11.05% 10.81% 11.13% 11.19% 11.42% 11.19%
Total risk-based capital ratio - Bank 13.67% 13.61% 13.41% 13.79% 13.85% 13.67% 13.85%
Book value per common share $ 12.13 11.75 11.57 11.36 11.26 12.13 11.26
ASSET QUALITY
Net charge-offs $ 76 927 1,432 144 2,388 2,579 5,731
Net charge-offs to average loans * 0.06% 0.80% 1.26% 0.13% 2.21% 0.56% 1.33%
Allowance for loan losses $ 6,520 6,546 7,203 8,289 7,663 6,520 7,663
Allowance for loan losses to loans held invst. 1.38% 1.39% 1.55% 1.85% 1.73% 1.38% 1.73%
Nonperforming loans $ 6,458 10,348 12,435 16,610 16,731 6,458 16,731
Performing restructured loans $ 9,774 9,883 9,983 10,145 10,381 9,774 10,381
Other real estate owned $ 5,610 5,587 4,431 1,494 2,329 5,610 2,329
Nonperforming loans to loans held for investment 1.37% 2.20% 2.68% 3.70% 3.77% 1.37% 3.77%
Nonperforming assets to total assets 1.78% 2.40% 2.52% 2.75% 2.88% 1.78% 2.88%
END OF PERIOD BALANCES
Total assets $ 679,263 669,029 669,162 657,365 661,807 679,263 661,807
Total loans held for investment $ 472,189 470,782 464,706 448,858 444,087 472,189 444,087
Total deposits $ 594,898 586,940 577,313 575,850 579,097 594,898 579,097
Stockholders' equity $ 52,655 51,352 50,679 49,956 49,604 52,655 49,604
AVERAGE BALANCES
Total assets $ 675,159 669,168 656,724 657,959 664,516 664,812 671,529
Total earning assets $ 629,331 623,761 613,582 617,147 622,481 620,996 627,491
Total loans held for investment $ 475,106 466,268 455,798 454,039 431,602 462,870 432,471
Total non interest-bearing demand deposits $ 104,241 96,248 90,186 87,597 87,987 94,618 82,343
Common stockholders' equity $ 41,065 40,069 39,401 38,947 39,339 39,904 38,927
* annualized for all periods presented
**return 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.comSource:Carolina Bank Holdings, Inc.