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Carolina Bank Holdings, Inc. Reports EPS of $0.40 for the First Quarter of 2015

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

CONTACT: Carolina Bank Holdings, Inc. T. Allen Liles, EVP and CFO Telephone: 336-286-8746 Email: a.liles@carolinabank.comSource:Carolina Bank Holdings, Inc.