GREENSBORO, N.C., Oct. 27, 2016 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported third quarter 2016 results with highlights as follows:
Third Quarter 2016 Financial Highlights
- Net income available to common shareholders increased to $1,564,000, or $0.31 per diluted common share, in the third quarter of 2016 from $1,436,000, or $0.29 per diluted common share in the third quarter of 2015.
- Book value per common share increased to $13.00 at September 30, 2016 from $12.18 at December 31, 2015 and $12.04 at September 30, 2015.
- Loans held for investment increased 5.55% during the third quarter of 2016 and are up 8.03% year-to-date.
- Average non-interest bearing demand deposits increased 23.33% in the third quarter of 2016 from average non-interest bearing demand deposits in third quarter of 2015.
- The net interest margin on a fully taxable basis decreased to 3.60% in the third quarter of 2016 from 3.74% in the third quarter of 2015; however, net interest income on a fully taxable basis increased to $6,059,000 in the third quarter of 2016 from $5,976,000 in the third quarter of 2015 due to growth and improved asset quality.
- Nonperforming assets declined to $8,306,000, or 1.17% of assets, at September 30, 2016 from $14,037,000, or 2.04% of assets, at September 30, 2015.
- Net loan loss charge-offs were $108,000 for the first nine months of 2016 compared to $1,733,000 for the year ended December 31, 2015.
- The Commercial/Retail Bank segment which excludes the mortgage division and the holding company had net income of $1,670,000 and $940,000 for the third quarters of 2016 and 2015, respectively. The increase in 2016 resulted from a lower provision for loan losses, lower operating expenses, and higher gains from the origination and sale of SBA loans.
- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) entered into a definitive merger agreement with First Bancorp (Nasdaq:FBNC) on June 21, 2016. CLBH stockholders are scheduled to receive either 1.002 shares of FBNC common stock or $20 in cash for each share of CLBH common stock, subject to total consideration being 75% stock/25% cash.
Robert T. Braswell, President and CEO, commented, “I am pleased with our progress in building and improving our relationships with customers as evidenced by our growth in loans and non-interest-bearing deposits during the third quarter. We have also gained momentum in originating and selling SBA loans during 2016 and have continued to improve our credit quality.”
We are excited about our proposed merger with First Bancorp who shares our philosophy of delivering unparalleled service and financial solutions. Our team has been busy with merger integration planning which is proceeding according to schedule. I encourage our shareholders to vote "for" the merger when proxy materials are delivered in November,” 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.
Additional Information About the Proposed Merger with First Bancorp and Where to Find It
This material contained in this press release is not a substitute for the proxy statement/prospectus or any other documents which First Bancorp and Carolina Bank Holdings may send to their respective shareholders in connection with the proposed merger. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.
In connection with the proposed transaction, First Bancorp has filed with the SEC a Registration Statement on Form S-4 that includes a proxy statement of Carolina Bank Holdings, Inc. and a prospectus of First Bancorp, as well as other relevant documents concerning the proposed transaction. Investors and security holders are also urged to carefully review and consider each of First Bancorp’s and Carolina Bank Holdings’ public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. The proxy statement/prospectus will be mailed to the shareholders of Carolina Bank Holdings on or about November 3, 2016. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SHAREHOLDERS OF CAROLINA BANK HOLDINGS ARE URGED TO CAREFULLY READ THE ENTIRE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders may obtain a free copy of the proxy statement/prospectus and other filings containing information about First Bancorp and Carolina Bank Holdings at the SEC’s website at www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the Securities and Exchange Commission by First Bancorp on its website at http://www.localfirstbank.com and by Carolina Bank Holdings, Inc. on its website at http://www.carolinabank.com.
First Bancorp, Carolina Bank Holdings, Inc. and certain of their respective directors and executive officers may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of shareholders of Carolina Bank Holdings, Inc. in connection with the proposed transaction. Information about the directors and executive officers of First Bancorp and their ownership of First Bancorp common stock is set forth in the proxy statement for First Bancorp’s 2016 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on April 4, 2016. Information about the directors and executive officers of Carolina Bank Holdings and their ownership of Carolina Bank Holdings’ common stock is set forth in the proxy statement for Carolina Bank Holdings, Inc.’s 2016 Annual Meeting of Shareholders, as filed with the SEC on a Schedule 14A on April 5, 2016. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
|Carolina Bank Holdings, Inc. and Subsidiary|
|Consolidated Balance Sheets|
|September 30,||December 31,|
|(in thousands, except share data)|
|Cash and due from banks||$||4,807||$||6,559|
|Interest-bearing deposits with banks||47,658||69,233|
|Bank term deposits||15,139||16,604|
|Securities available-for-sale, at fair value||41,458||47,360|
|Securities held-to-maturity (fair values of $14,557 in 2016 and $15,226 in 2015)||14,031||14,954|
|Loans held for sale||42,616||39,583|
|Less allowance for loan losses||(5,764||)||(5,872||)|
|Premises and equipment, net||18,389||19,007|
|Other real estate owned||3,914||4,592|
|Bank-owned life insurance||12,118||11,843|
|Liabilities and Stockholders' Equity|
|Non-interest bearing demand||$||143,057||$||125,189|
|NOW, money market and savings||355,364||349,815|
|Advances from the Federal Home Loan Bank||12,100||2,681|
|Securities sold under agreements to repurchase||-||47|
|Other liabilities and accrued expenses||10,131||10,014|
|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, $1 par value; authorized 20,000,000 shares; issued|
|and outstanding 5,045,358 in 2016 and 5,021,330 in 2015||5,045||5,021|
|Additional paid-in capital||29,471||29,234|
|Stock in directors' rabbi trust||(2,089||)||(1,831||)|
|Directors' deferred fees obligation||2,089||1,831|
|Accumulated other comprehensive income||968||710|
|Total stockholders’ equity||65,566||61,139|
|Total liabilities and stockholders’ equity||$||708,890||$||700,798|
|Carolina Bank Holdings, Inc. and Subsidiary|
|Consolidated Statements of Income (unaudited)|
|Three Months||Nine Months|
|Ended September 30,||Ended September 30,|
|(in thousands, except per share data)|
|Investment securities, taxable||306||322||1,023||985|
|Investment securities, non taxable||116||116||349||363|
|Interest from deposits in banks||112||57||406||183|
|Total interest income||6,597||6,557||19,824||19,610|
|NOW, money market, savings||234||237||700||713|
|Other borrowed funds||240||154||693||457|
|Total interest expense||697||668||2,124||2,046|
|Net interest income||5,900||5,889||17,700||17,564|
|Provision for loan losses||-||450||-||1,285|
|Net interest income after provision for loan losses||5,900||5,439||17,700||16,279|
|Mortgage banking income||2,533||3,220||7,115||9,848|
|Gain on sale of SBA loans||261||67||498||120|
|Total non-interest income||3,182||3,641||8,740||11,052|
|Salaries and benefits||4,536||4,533||13,216||13,433|
|Occupancy and equipment||722||783||2,170||2,318|
|Outside data processing||280||270||831||809|
|Advertising and promotion||244||225||734||578|
|Stationery, printing and supplies||142||149||433||447|
|Total non-interest expense||6,923||7,015||21,007||20,658|
|Income before income taxes||2,159||2,065||5,433||6,673|
|Income tax expense||595||629||1,525||1,942|
|Dividends and accretion on preferred stock||-||-||-||341|
|Net income available to common stockholders||$||1,564||$||1,436||$||3,908||$||4,390|
|Net income per common share|
|Carolina Bank Holdings, Inc.|
|Consolidated Financial Highlights|
|Third Quarter 2016|
|3rd Qtr||2nd Qtr||1st Qtr||4th Qtr||3rd Qtr|
|($ in thousands except for share and per share data)||2016||2016||2016||2015||2015||2015||2014|
|Net interest income||$||5,900||6,029||5,771||6,081||5,889||23,645||23,257|
|Provision for loan losses||$||-||-||-||(200||)||450||1,085||1,436|
|Net income available to common stockholders||$||1,564||1,243||1,101||1,036||1,436||5,426||2,413|
|Basic earnings per common share||$||0.31||0.25||0.22||0.21||0.29||1.24||0.70|
|Diluted earnings per common share||$||0.31||0.25||0.22||0.21||0.29||1.17||0.70|
|Average common shares outstanding||5,044,646||5,038,723||5,036,150||5,008,301||4,990,163||4,389,086||3,431,385|
|Average diluted common shares outstanding||5,048,705||5,042,626||5,041,038||5,019,056||5,000,352||4,620,411||3,433,603|
|Return on average assets *||0.87||%||0.71||%||0.63||%||0.59||%||0.83||%||0.84||%||0.50||%|
|Return on average common equity ** *||9.59||%||7.89||%||7.14||%||6.79||%||9.59||%||9.96||%||6.05||%|
|Net interest margin (fully-tax equivalent) *||3.60||%||3.73||%||3.61||%||3.79||%||3.74||%||3.73||%||3.80||%|
|Efficiency ratio (excluding merger expenses)||73.22||%||72.89||%||80.98||%||83.05||%||72.94||%||74.18||%||81.78||%|
|Efficiency ratio (excluding mortgage div/merger X)||64.39||%||67.83||%||71.95||%||75.06||%||73.29||%||71.72||%||71.73||%|
|# full-time equivalent employees - period end||177||187||190||192||190||192||189|
|Equity to period-end assets||9.25||%||9.08||%||8.88||%||8.72||%||8.72||%||8.72||%||7.75||%|
|Common tangible equity to assets||9.25||%||9.08||%||8.88||%||8.72||%||8.72||%||8.72||%||6.13||%|
|Tier 1 leverage capital ratio - Bank||10.10||%||9.94||%||9.74||%||9.71||%||9.65||%||9.71||%||9.11||%|
|Tier 1 risk-based capital ratio - Bank||12.35||%||12.20||%||12.62||%||12.09||%||11.66||%||12.09||%||11.42||%|
|Total risk-based capital ratio - Bank||13.98||%||13.82||%||14.40||%||13.81||%||13.90||%||13.81||%||13.67||%|
|Book value per common share||$||13.00||12.71||12.45||12.18||12.04||12.18||12.13|
|Net loan charge-offs (recoveries)||$||(146||)||351||(97||)||1,495||(1,321||)||1,733||2,579|
|Net charge-offs (recoveries) to average loans *||-0.12||%||0.30||%||-0.08||%||1.29||%||-1.15||%||0.37||%||0.56||%|
|Allowance for loan losses||$||5,764||5,618||5,969||5,872||7,567||5,872||6,520|
|Allowance for loan losses to loans held invst.||1.15||%||1.18||%||1.31||%||1.26||%||1.62||%||1.26||%||1.38||%|
|Performing restructured loans||$||9,375||9,486||12,078||9,687||9,317||9,687||9,774|
|Other real estate owned||$||3,914||4,212||4,587||4,592||5,073||4,592||5,610|
|Nonperforming loans to loans held for investment||0.87||%||1.07||%||0.77||%||0.67||%||1.92||%||0.67||%||1.37||%|
|Nonperforming assets to total assets||1.17||%||1.32||%||1.15||%||1.10||%||2.04||%||1.10||%||1.78||%|
|END OF PERIOD BALANCES|
|Total loans held for investment||$||503,226||476,783||455,139||465,804||465,889||465,804||472,189|
|Total earning assets||$||669,231||663,082||657,915||646,158||633,304||643,031||620,996|
|Total loans held for investment||$||494,502||470,021||466,301||463,285||459,538||465,163||462,870|
|Total non interest-bearing demand deposits||$||146,848||141,092||129,367||125,279||119,074||118,355||94,618|
|Common stockholders' equity||$||64,855||63,349||61,979||60,522||59,384||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: firstname.lastname@example.org
Source:Carolina Bank Holdings, Inc.