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Carolina Bank Holdings, Inc. Reports EPS of $0.22 in the First Quarter of 2016

GREENSBORO, N.C., April 28, 2016 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (NASDAQ:CLBH) today reported first quarter 2016 results with highlights as follows:

1st Quarter 2016 Financial Highlights

  • Nonperforming assets declined to $8.1 million, or 1.15% of assets, at March 31, 2016 from $11.5 million, or 1.6% of assets, at March 31, 2015. Net loan loss recoveries were $97,000 and $134,000 in the first quarters of 2016 and 2015, respectively.
  • Average non-interest bearing demand deposits increased 17.3% in the first quarter of 2016 from average non-interest bearing demand deposits in first quarter of 2015.
  • Gain on the sale of SBA loans was $237,000 in the first quarter of 2016 compared to no gains in the first quarter of 2015.
  • Book value per common share increased to $12.45 at March 31, 2016 from $12.18 at December 31, 2015 and $11.48 at March 31, 2015.
  • Net income available to common shareholders decreased to $1,101,000, or $0.22 per diluted common share, in the first quarter of 2016 from $1,382,000, or $0.40 per diluted common share, in the first quarter of 2015.
  • New loans originated, excluding residential mortgage loans held for sale, increased to $69.3 million in the first quarter of 2016 compared to $33.6 million in the first quarter of 2015. Loans outstanding decreased during the quarter due to the timing of construction loan pay-offs and delayed funding of some of the new construction loan originations.
  • The Mortgage Division had a net loss of $166,000 in the first quarter of 2016 compared to net income of $439,000 in the first quarter of 2015.

Robert T. Braswell, President and CEO, commented, “I am pleased to report that our SBA lending has kicked into high gear with the recognition of $237,000 in gains during the quarter. This new lending niche provides Carolina Bank customers with additional options. Although outstanding loans declined during the quarter due to the timing of construction loan pay-offs, we expect loans outstanding to grow in the near future as recently originated loans fund up. While commercial loan originations were strong, residential mortgage activity was weak due to seasonal factors and due to delays related to new regulatory requirements. Applications for residential mortgage loans have recently increased which should boost originations in the mortgage division in the second quarter.”

“We continue to build shareholder value with our continued emphasis on non-interest bearing demand deposits which grew, on an average basis, over 17% during the first quarter of 2016 from a year ago same quarter. We are also pleased with the improvement in our credit quality over the past few years which eliminated the need to make a provision for loan losses during the first quarter of 2016,” 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. 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
March 31, December 31,
2016 2015
(unaudited)
(in thousands, except share data)
Assets
Cash and due from banks $5,466 $6,559
Interest-bearing deposits with banks 87,254 69,233
Bank term deposits 19,839 16,604
Securities available-for-sale, at fair value 46,482 47,360
Securities held-to-maturity (fair values of $15,109 in 2016 and $15,226 in 2015) 14,600 14,954
Loans held for sale 36,133 39,583
Loans 455,139 465,804
Less allowance for loan losses (5,969) (5,872)
Net loans 449,170 459,932
Premises and equipment, net 18,803 19,007
Other real estate owned 4,587 4,592
Bank-owned life insurance 11,936 11,843
Other assets 11,434 11,131
Total assets $705,704 $700,798
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing demand $132,235 $125,189
NOW, money market and savings 343,623 349,815
Time 125,215 132,303
Total deposits 601,073 607,307
Advances from the Federal Home Loan Bank 12,654 2,681
Securities sold under agreements to repurchase 47 47
Subordinated debentures 19,610 19,610
Other liabilities and accrued expenses 9,633 10,014
Total liabilities 643,017 639,659
Stockholders' equity
Preferred stock, no par value, authorized 1,000,000 shares;
Series A preferred stock - none issued and outstanding - -
Series B convertible preferred stock - none issued and outstanding - -
Common stock, $1 par value; authorized 20,000,000 shares; issued
and outstanding 5,037,108 in 2016 and 5,021,330 in 2015 5,037 5,021
Additional paid-in capital 29,383 29,234
Retained earnings 27,275 26,174
Stock in directors' rabbi trust (1,931) (1,831)
Directors' deferred fees obligation 1,931 1,831
Accumulated other comprehensive income 992 710
Total stockholders’ equity 62,687 61,139
Total liabilities and stockholders’ equity $705,704 $700,798


Carolina Bank Holdings, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)
Three Months
Ended March 31,
2016 2015
(in thousands, except per share data)
Interest income
Loans $5,830 $5,992
Investment securities, taxable 392 338
Investment securities, non taxable 118 122
Interest from deposits in banks 154 61
Total interest income 6,494 6,513
Interest expense
NOW, money market, savings 239 239
Time deposits 262 312
Other borrowed funds 222 152
Total interest expense 723 703
Net interest income 5,771 5,810
Provision for loan losses - 300
Net interest income after provision for loan losses 5,771 5,510
Non-interest income
Service charges 291 303
Mortgage banking income 1,703 2,907
Gain on sale of SBA loans 237 -
Other 58 73
Total non-interest income 2,289 3,283
Non-interest expense
Salaries and benefits 4,237 4,318
Occupancy and equipment 749 776��
Foreclosed property expense (income) 45 (131)
Professional fees 415 449
Outside data processing 274 274
FDIC insurance 93 131
Advertising and promotion 277 193
Stationery, printing and supplies 131 151
Other 409 381
Total non-interest expense 6,630 6,542
Income before income taxes 1,430 2,251
Income tax expense 329 622
Net income 1,101 1,629
Dividends and accretion on preferred stock - 247
Net income available to common stockholders $1,101 $1,382
Net income per common share
Basic $0.22 $0.40
Diluted $0.22 $0.40


Carolina Bank Holdings, Inc.
Consolidated Financial Highlights
First Quarter 2016
(unaudited)
Quarterly Years Ended
1st Qtr4th Qtr3rd Qtr2nd Qtr1st Qtr
($ in thousands except for share data) 2016 2015 2015 2015 2015 2015 2014
EARNINGS
Net interest income$ 5,771 6,081 5,889 5,865 5,810 23,645 23,257
Provision for loan losses$ - (200) 450 535 300 1,085 1,436
NonInterest income$ 2,289 2,591 3,641 4,128 3,283 13,643 9,413
NonInterest expense$ 6,630 7,276 7,015 7,101 6,542 27,934 27,004
Net income$ 1,101 1,036 1,436 1,666 1,629 5,767 3,346
Net income available to common stockholders$ 1,101 1,036 1,436 1,572 1,382 5,426 2,413
Basic earnings per common share$ 0.22 0.21 0.29 0.38 0.40 1.24 0.70
Diluted earnings per common share$ 0.22 0.21 0.29 0.32 0.40 1.17 0.70
Average common shares outstanding 5,036,150 5,008,301 4,990,163 4,099,303 3,434,680 4,389,086 3,431,385
Average diluted common shares outstanding 5,041,038 5,019,056 5,000,352 4,988,938 3,451,902 4,620,411 3,433,603
PERFORMANCE RATIOS
Return on average assets * 0.63% 0.59% 0.83% 0.96% 0.97% 0.84% 0.50%
Return on average common equity ** * 7.14% 6.79% 9.59% 11.38% 13.24% 9.96% 6.05%
Net interest margin (fully-tax equivalent) * 3.61% 3.79% 3.74% 3.65% 3.75% 3.73% 3.80%
Efficiency ratio 80.98% 83.05% 72.94% 70.38% 71.21% 74.18% 81.78%
Efficiency ratio (excluding mortgage division) 71.95% 75.06% 73.29% 69.79% 68.63% 71.72% 71.73%
# full-time equivalent employees - period end 190 192 190 192 191 192 189
CAPITAL
Equity to period-end assets 8.88% 8.72% 8.72% 8.55% 9.60% 8.72% 7.75%
Common tangible equity to assets 8.88% 8.72% 8.72% 8.55% 6.07% 8.72% 6.13%
Tier 1 leverage capital ratio - Bank 9.74% 9.71% 9.65% 9.24% 9.20% 9.71% 9.11%
Tier 1 risk-based capital ratio - Bank 12.62% 12.09% 11.66% 11.23% 11.25% 12.09% 11.42%
Total risk-based capital ratio - Bank 14.40% 13.81% 13.90% 13.21% 13.50% 13.81% 13.67%
Book value per common share$ 12.45 12.18 12.04 11.72 11.48 12.18 12.13
ASSET QUALITY
Net loan charge-offs (recoveries)$ (97) 1,495 (1,321) 1,694 (134) 1,733 2,579
Net charge-offs (recoveries) to average loans * -0.08% 1.29% -1.15% 1.45% -0.11% 0.37% 0.56%
Allowance for loan losses$ 5,969 5,872 7,567 5,795 6,954 5,872 6,520
Allowance for loan losses to loans held invst. 1.31% 1.26% 1.62% 1.26% 1.49% 1.26% 1.38%
Nonperforming loans$ 3,519 3,110 8,964 11,716 6,362 3,110 6,458
Performing restructured loans$ 12,078 9,687 9,317 9,450 9,548 9,687 9,774
Other real estate owned$ 4,587 4,592 5,073 5,352 5,116 4,592 5,610
Nonperforming loans to loans held for investment 0.77% 0.67% 1.92% 2.54% 1.36% 0.67% 1.37%
Nonperforming assets to total assets 1.15% 1.10% 2.04% 2.50% 1.62% 1.10% 1.78%
END OF PERIOD BALANCES
Total assets$ 705,704 700,798 688,974 683,685 710,672 700,798 679,263
Total loans held for investment$ 455,139 465,804 465,889 461,000 467,232 465,804 472,189
Total deposits$ 601,073 607,307 596,489 592,719 609,417 607,307 594,898
Stockholders' equity$ 62,687 61,139 60,098 58,460 68,238 61,139 52,655
AVERAGE BALANCES
Total assets$ 702,473 692,522 684,917 699,101 682,777 689,842 664,812
Total earning assets$ 657,915 646,158 633,304 654,317 638,368 643,031 620,996
Total loans held for investment$ 466,301 463,285 459,538 465,914 472,073 465,163 462,870
Total non interest-bearing demand deposits$ 129,367 125,279 119,074 118,577 110,318 118,355 94,618
Common stockholders' equity$ 61,979 60,522 59,384 55,414 42,341 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.