Carolina Bank Holdings, Inc. Reports a 67% Increase in EPS to $1.17 in 2015

GREENSBORO, N.C., Jan. 29, 2016 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (NASDAQ:CLBH) today reported 2015 annual and fourth quarter results with highlights as follows:

2015 and 4th Quarter Financial Highlights

  • Nonperforming assets declined to $7.7 million, or 1.10% of assets, at December 31, 2015 compared to $14.0 million, or 2.0% of assets, at September 30, 2015.
  • Average non-interest bearing demand deposits increased 25.1% in 2015 from 2014.
  • Net income available to common shareholders increased to $5.4 million in 2015 from $2.4 million in 2014. Diluted net income per common share increased to $1.17 in 2015 from $0.70 in 2014.
  • Net income available to common shareholders decreased 3.4% to $1,036,000 in the fourth quarter of 2015 from $1,072,000 in the fourth quarter of 2014.
  • Assets increased 3.2% in 2015 to $700.8 million at December 31, 2015.
  • The number of common shares outstanding increased to 5,021,330 at December 31, 2015 from 3,434,680 at December 31, 2014, primarily due to convertible preferred stock issued on March 31, 2015 which was converted into 1,550,000 shares of common stock on May 22, 2015.
  • The Mortgage Division realized net income of $1,550,000 in 2015 compared to a loss of $702,000 in 2014. The Mortgage Division had a net loss of $100,000 in the fourth quarter of 2015 compared to net income of $76,000 in the fourth quarter of 2014.


Robert T. Braswell, President and CEO, commented, “I am pleased to report that our asset quality improved substantially in the fourth quarter with a reduction of 45% in our nonperforming assets. We realized higher net proceeds than previously estimated on the payoff of nonperforming loans which resulted in a reduction in our provision for loan losses in the fourth quarter. With the improvement in asset quality, we are increasing our efforts at growing the loan portfolio and reducing professional costs related to nonperforming assets.”

“We continue to build value for shareholders with our emphasis on increasing non-interest bearing demand deposits as average balances in 2015 increased over 25% from average balances in 2014. While we are pleased with the performance of our mortgage division in 2015, which realized net income of over $1.5 million, our fourth quarter results in the mortgage division were less than expected due to regulatory changes and declining originations. We have recently taken steps to improve internal processes in the mortgage division to allow us to effectively manage future growth,” 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, three in Greensboro, one in Asheboro, one in High Point, one in Burlington, and two in Winston-Salem. Our Greensboro Friendly Center branch closed on July 31, 2015 due to an expiring lease in late 2015. Our second full-service office in Winston-Salem, opened in August of 2015. Residential mortgage loan production offices are located in Burlington, Chapel Hill, 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,
2015 2014
(unaudited)
(in thousands, except share data)
Assets
Cash and due from banks $ 6,559 $ 7,942
Interest-bearing deposits with banks 69,233 38,232
Bank term deposits 16,604 14,106
Securities available-for-sale, at fair value 47,360 51,200
Securities held-to-maturity (fair values of $15,226 in 2015 and $15,945 in 2014) 14,954 15,644
Loans held for sale 39,583 39,780
Loans 465,804 472,189
Less allowance for loan losses (5,872) (6,520)
Net loans 459,932 465,669
Premises and equipment, net 19,007 18,311
Other real estate owned 4,592 5,610
Bank-owned life insurance 11,843 11,483
Other assets 11,131 11,286
Total assets $ 700,798 $ 679,263
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing demand $ 125,189 $ 106,163
NOW, money market and savings 349,815 344,919
Time 132,303 143,816
Total deposits 607,307 594,898
Advances from the Federal Home Loan Bank 2,681 2,785
Securities sold under agreements to repurchase 47 176
Subordinated debentures 19,610 19,610
Other liabilities and accrued expenses 10,014 9,139
Total liabilities 639,659 626,608
Stockholders' equity
Preferred stock, no par value, authorized 1,000,000 shares;
issued and outstanding 10,994 shares - 10,994
Common stock, $1 par value; authorized 20,000,000 shares;
issued and outstanding 5,021,330 in 2015 and 3,434,680 in 2014 5,021 3,435
Additional paid-in capital 29,234 16,339
Retained earnings 26,174 20,748
Stock in directors' rabbi trust (1,831) (1,465)
Directors' deferred fees obligation 1,831 1,465
Accumulated other comprehensive income 710 1,139
Total stockholders’ equity 61,139 52,655
Total liabilities and stockholders’ equity $ 700,798 $ 679,263




Carolina Bank Holdings, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)
Three Months Years Ended
Ended December 31, December 31,
2015 2014 2015 2014
(in thousands, except per share data)
Interest income
Loans $ 6,235 $ 6,417 $ 24,314 $ 24,168
Investment securities, taxable 325 331 1,310 1,547
Investment securities, non taxable 116 123 479 532
Interest from deposits in banks 84 51 267 201
Total interest income 6,760 6,922 26,370 26,448
Interest expense
NOW, money market, savings 240 241 953 957
Time deposits 266 372 1,142 1,593
Other borrowed funds 173 145 630 641
Total interest expense 679 758 2,725 3,191
Net interest income 6,081 6,164 23,645 23,257
Provision for (recovery of) loan losses (200) 50 1,085 1,436
Net interest income after provision for loan losses 6,281 6,114 22,560 21,821
Non-interest income
Service charges 313 329 1,232 1,269
Mortgage banking income 2,206 2,370 12,054 7,771
Gain on sale of investment securities available-for-sale - 18 27 274
Other 72 4 330 99
Total non-interest income 2,591 2,721 13,643 9,413
Non-interest expense
Salaries and benefits 4,351 4,578 17,784 16,951
Occupancy and equipment 787 749 3,105 3,070
Foreclosed property expense 226 96 317 270
Professional fees 761 374 2,138 1,781
Outside data processing 270 290 1,079 1,090
FDIC insurance 105 135 498 534
Advertising and promotion 354 222 932 938
Stationery, printing and supplies 135 134 582 560
Other 287 550 1,499 1,810
Total non-interest expense 7,276 7,128 27,934 27,004
Income before income taxes 1,596 1,707 8,269 4,230
Income tax expense 560 388 2,502 884
Net income 1,036 1,319 5,767 3,346
Dividends and accretion on preferred stock - 247 341 933
Net income available to common stockholders $ 1,036 $ 1,072 $ 5,426 $ 2,413
Net income per common share
Basic $ 0.21 $ 0.31 $ 1.24 $ 0.70
Diluted $ 0.21 $ 0.31 $ 1.17 $ 0.70



Carolina Bank Holdings, Inc.
Consolidated Financial Highlights
Fourth Quarter 2015
(unaudited)
Quarterly Years Ended
4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr
($ in thousands except for share data) 2015 2015 2015 2015 2014 2015 2014
EARNINGS
Net interest income$ 6,081 5,889 5,865 5,810 6,164 23,645 23,257
Provision for loan losses$ (200) 450 535 300 50 1,085 1,436
NonInterest income$ 2,591 3,641 4,128 3,283 2,721 13,643 9,413
NonInterest expense$ 7,276 7,015 7,101 6,542 7,128 27,934 27,004
Net income$ 1,036 1,436 1,666 1,629 1,319 5,767 3,346
Net income available to common stockholders$ 1,036 1,436 1,572 1,382 1,072 5,426 2,413
Basic earnings per common share$ 0.21 0.29 0.38 0.40 0.31 1.24 0.70
Diluted earnings per common share$ 0.21 0.29 0.32 0.40 0.31 1.17 0.70
Average common shares outstanding 5,008,301 4,990,163 4,099,303 3,434,680 3,434,680 4,389,086 3,431,385
Average diluted common shares outstanding 5,019,056 5,000,352 4,988,938 3,451,902 3,434,680 4,620,411 3,433,603
PERFORMANCE RATIOS
Return on average assets * 0.59% 0.83% 0.96% 0.97% 0.78% 0.84% 0.50%
Return on average common equity ** * 6.79% 9.59% 11.38% 13.24% 10.36% 9.96% 6.05%
Net interest margin (fully-tax equivalent) * 3.79% 3.74% 3.65% 3.75% 3.95% 3.73% 3.80%
Efficiency ratio 83.05% 72.94% 70.38% 71.21% 79.39% 74.18% 81.78%
Efficiency ratio (excluding mortgage division) 75.06% 73.29% 69.79% 68.63% 73.94% 71.72% 71.73%
# full-time equivalent employees - period end 192 190 192 191 189 192 189
CAPITAL
Equity to period-end assets 8.72% 8.72% 8.55% 9.60% 7.75% 8.72% 7.75%
Common tangible equity to assets 8.72% 8.72% 8.55% 6.07% 6.13% 8.72% 6.13%
Tier 1 leverage capital ratio - Bank 9.71% 9.65% 9.24% 9.20% 9.11% 9.71% 9.11%
Tier 1 risk-based capital ratio - Bank 12.09% 11.66% 11.23% 11.25% 11.42% 12.09% 11.42%
Total risk-based capital ratio - Bank 13.81% 13.90% 13.21% 13.50% 13.67% 13.81% 13.67%
Book value per common share$ 12.18 12.04 11.72 11.48 12.13 12.18 12.13
ASSET QUALITY
Net loan charge-offs (recoveries)$ 1,495 (1,321) 1,694 (134) 76 1,733 2,579
Net charge-offs (recoveries) to average loans * 1.29% -1.15% 1.45% -0.11% 0.06% 0.37% 0.56%
Allowance for loan losses$ 5,872 7,567 5,795 6,954 6,520 5,872 6,520
Allowance for loan losses to loans held invst. 1.26% 1.62% 1.26% 1.49% 1.38% 1.26% 1.38%
Nonperforming loans$ 3,110 8,964 11,716 6,362 6,458 3,110 6,458
Performing restructured loans$ 9,687 9,317 9,450 9,548 9,774 9,687 9,774
Other real estate owned$ 4,592 5,073 5,352 5,116 5,610 4,592 5,610
Nonperforming loans to loans held for investment 0.67% 1.92% 2.54% 1.36% 1.37% 0.67% 1.37%
Nonperforming assets to total assets 1.10% 2.04% 2.50% 1.62% 1.78% 1.10% 1.78%
END OF PERIOD BALANCES
Total assets$ 700,798 688,974 683,685 710,672 679,263 700,798 679,263
Total loans held for investment$ 465,804 465,889 461,000 467,232 472,189 465,804 472,189
Total deposits$ 607,307 596,489 592,719 609,417 594,898 607,307 594,898
Stockholders' equity$ 61,139 60,098 58,460 68,238 52,655 61,139 52,655
AVERAGE BALANCES
Total assets$ 692,522 684,917 699,101 682,777 675,159 689,842 664,812
Total earning assets$ 646,158 633,304 654,317 638,368 629,331 643,031 620,996
Total loans held for investment$ 463,285 459,538 465,914 472,073 475,106 465,163 462,870
Total non interest-bearing demand deposits$ 125,279 119,074 118,577 110,318 104,241 118,355 94,618
Common stockholders' equity$ 60,522 59,384 55,414 42,341 41,065 54,479 39,904
* annualized for all periods presented
**return on average common equity is computed using net income available to common stockholders


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

Source:Carolina Bank Holdings, Inc.