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Carolina Bank Holdings Inc (CLBH) SEC Filing 10-Q Quarterly report for the period ending Thursday, June 30, 2016

Carolina Bank Holdings Inc

CIK: 1127160 Ticker: CLBH

EXHIBIT 99.1

Carolina Bank Holdings, Inc. Reports Results for the Second Quarter of 2016

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


2nd Quarter 2016 Financial Highlights

  • Net income available to common shareholders, excluding merger expenses and related tax benefits, increased to $1,739,000, or $0.34 per diluted common share, in the second quarter of 2016 from $1,572,000, or $0.32 per diluted common share, in the second quarter of 2015. (1.)
  • Including merger expenses and related tax benefits, net income was $1,243,000, or $0.25 per diluted common share, in the second quarter of 2016.
  • Book value per common share increased to $12.71 at June 30, 2016 from $12.18 at December 31, 2015 and $11.72 at June 30, 2015.
  • Loans held for investment increased 4.8% during the second quarter of 2016 and are up 2.4% year-to-date.
  • Average non-interest bearing demand deposits increased 19.0% in the second quarter of 2016 from average non-interest bearing demand deposits in the second quarter of 2015.
  • Net interest margin on a fully-taxable basis increased to 3.73% in the second quarter of 2016 from 3.65% in the second quarter of 2015.
  • Nonperforming assets declined to $9.3 million, or 1.32% of assets, at June 30, 2016 from $17.1 million, or 2.5% of assets, at June 30, 2015. Net loan loss charge-offs were $351,000 and $1,694,000 in the second quarters of 2016 and 2015, respectively.
  • The Mortgage Division had net income of $285,000 in the second quarter of 2016 compared to net income of $649,000 in the second quarter of 2015.  
  • 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.  Closing of the merger is contingent upon the receipt of required regulatory and shareholder approvals.

(1.) Net income available to common shareholders and diluted earnings per share, excluding merger expenses and related tax benefits, are not recognized under United States generally accepted accounting principles. These measures are calculated by excluding direct merger expenses, net of any reduction in income taxes, from net income.

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 second quarter. Excluding the impact of merger expenses, our net income in the second quarter of 2016, was the highest quarterly net income in three and a half years.”  

“We have also made substantial improvements in our credit quality over the past few years which eliminated the need to make a provision for loan losses during the first six months of 2016. We believe that our strong credit culture and commitment to exceptional customer service compliment the similar efforts at First Bank. We are looking forward to a smooth merger with First Bank late this year or early next year and already see many future benefits for our customers and shareholders,” 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.

The information as of and for the quarter ended June 30, 2016 is unaudited.  This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance or determinations 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, completion of our pending merger and successful merger integration, 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      
     June 30, December 31, 
      2016   2015  
     (unaudited)   
     (in thousands, except share data) 
 Assets     
 Cash and due from banks $  6,869  $  6,559  
 Interest-bearing deposits with banks    45,352     69,233  
 Bank term deposits    18,847     16,604  
 Securities available-for-sale, at fair value    45,610     47,360  
 Securities held-to-maturity (fair values of $14,988 in 2016 and $15,226 in 2015)     14,370     14,954  
 Loans held for sale    57,432     39,583  
 Loans      476,783     465,804  
 Less allowance for loan losses    (5,618)    (5,872) 
   Net loans     471,165     459,932  
 Premises and equipment, net    18,618     19,007  
 Other real estate owned    4,212     4,592  
 Bank-owned life insurance    12,024     11,843  
 Other assets    11,996     11,131  
   Total assets $  706,495  $  700,798  
         
 Liabilities and Stockholders' Equity     
 Deposits     
  Non-interest bearing demand $  140,717  $  125,189  
  NOW, money market and savings    337,313     349,815  
  Time    121,118     132,303  
   Total deposits    599,148     607,307  
         
 Advances from the Federal Home Loan Bank    12,627     2,681  
 Securities sold under agreements to repurchase    47     47  
 Subordinated debentures    19,610     19,610  
 Other liabilities and accrued expenses    10,943     10,014  
   Total liabilities    642,375     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 5,043,108 in 2016 and 5,021,330 in 2015    5,043     5,021  
  Additional paid-in capital    29,448     29,234  
  Retained earnings     28,518     26,174  
  Stock in directors' rabbi trust    (2,015)    (1,831) 
  Directors' deferred fees obligation    2,015     1,831  
  Accumulated other comprehensive income     1,111     710  
   Total stockholders’ equity    64,120     61,139  
   Total liabilities and stockholders’ equity $  706,495  $  700,798  
         

 

 Carolina Bank Holdings, Inc. and Subsidiary         
 Consolidated Statements of Income (unaudited)         
     Three Months Six Months 
     Ended June 30,  Ended June 30,  
      2016   2015   2016   2015  
     (in thousands, except per share data)     
 Interest income         
  Loans $  6,153  $  6,025  $  11,983  $  12,017  
  Investment securities, taxable    325     325     717     663  
  Investment securities, non taxable    115     125     233     247  
  Interest from deposits in banks    140     65     294     126  
   Total interest income    6,733     6,540     13,227     13,053  
             
 Interest expense         
  NOW, money market, savings    227     237     466     476  
  Time deposits    246     287     508     599  
  Other borrowed funds    231     151     453     303  
   Total interest expense    704     675     1,427     1,378  
             
 Net interest income    6,029     5,865     11,800     11,675  
 Provision for loan losses    -     535     -     835  
 Net interest income after provision for loan losses     6,029     5,330     11,800     10,840  
 Non-interest income         
  Service charges    307     312     598     615  
  Mortgage banking income    2,879     3,721     4,582     6,628  
  Gain on sale of SBA loans    -     53     237     53  
  Other    83     42     141     115  
   Total non-interest income    3,269     4,128     5,558     7,411  
             
 Non-interest expense         
  Salaries and benefits    4,443     4,582     8,680     8,900  
  Occupancy and equipment    699     759     1,448     1,535  
  Foreclosed property expense     43     155     88     24  
  Professional fees    507     454     922     903  
  Outside data processing    277     265     551     539  
  FDIC insurance    108     130     201     261  
  Advertising and promotion    213     160     490     353  
  Stationery, printing and supplies    160     147     291     298  
  Merger expense    585     -     585     -  
  Other    419     449     828     830  
   Total non-interest expense    7,454     7,101     14,084     13,643  
             
 Income before income taxes    1,844     2,357     3,274     4,608  
 Income tax expense     601     691     930     1,313  
 Net income     1,243     1,666     2,344     3,295  
 Dividends and accretion on preferred stock    -     94     -     341  
 Net income available to common stockholders $  1,243  $  1,572  $  2,344  $  2,954  
 Net income per common share         
  Basic $  0.25  $  0.38  $  0.47  $  0.78  
  Diluted $  0.25  $  0.32  $  0.46  $  0.70  
             

 

Carolina Bank Holdings, Inc.    
Consolidated Financial Highlights     
Second  Quarter 2016    
(unaudited)    
  Quarterly  Years Ended 
  2nd Qtr1st Qtr4th Qtr3rd Qtr2nd Qtr     
($ in thousands except for share data)  2016  2016  2015  2015  2015   2015   2014  
            
EARNINGS           
Net interest income$ 6,029  5,771  6,081  5,889  5,865   23,645   23,257  
Provision for loan losses$ -  -  (200) 450  535   1,085   1,436  
NonInterest income$ 3,269  2,289  2,591  3,641  4,128   13,643   9,413  
NonInterest expense$ 7,454  6,630  7,276  7,015  7,101   27,934   27,004  
Net income$ 1,243  1,101  1,036  1,436  1,666   5,767   3,346  
Net income available to common stockholders$ 1,243  1,101  1,036  1,436  1,572   5,426   2,413  
Basic earnings per common share$ 0.25  0.22  0.21  0.29  0.38   1.24   0.70  
Diluted earnings per common share$ 0.25  0.22  0.21  0.29  0.32   1.17   0.70  
Average common shares outstanding  5,038,723  5,036,150  5,008,301  4,990,163  4,099,303   4,389,086   3,431,385  
Average diluted common shares outstanding  5,042,626  5,041,038  5,019,056  5,000,352  4,988,938   4,620,411   3,433,603  
            
PERFORMANCE RATIOS           
Return on average assets *  0.71% 0.63% 0.59% 0.83% 0.96%  0.84%  0.50% 
Return on average common equity **  *  7.89% 7.14% 6.79% 9.59% 11.38%  9.96%  6.05% 
Net interest margin (fully-tax equivalent) *  3.73% 3.61% 3.79% 3.74% 3.65%  3.73%  3.80% 
Efficiency ratio (excluding merger expenses)  72.89% 80.98% 83.05% 72.94% 70.38%  74.18%  81.78% 
Efficiency ratio (excluding mortgage div/merger X)   67.93% 71.95% 75.06% 73.29% 69.79%  71.72%  71.73% 
# full-time equivalent employees - period end  187  190  192  190  192   192   189  
            
CAPITAL           
Equity to period-end assets  9.08% 8.88% 8.72% 8.72% 8.55%  8.72%  7.75% 
Common tangible equity to assets  9.08% 8.88% 8.72% 8.72% 8.55%  8.72%  6.13% 
Tier 1 leverage capital ratio - Bank  9.94% 9.74% 9.71% 9.65% 9.24%  9.71%  9.11% 
Tier 1 risk-based capital ratio - Bank  12.20% 12.62% 12.09% 11.66% 11.23%  12.09%  11.42% 
Total risk-based capital ratio - Bank  13.82% 14.40% 13.81% 13.90% 13.21%  13.81%  13.67% 
Book value per common share$ 12.71  12.45  12.18  12.04  11.72   12.18   12.13  
            
ASSET QUALITY           
Net loan charge-offs (recoveries)$ 351  (97) 1,495  (1,321) 1,694   1,733   2,579  
Net charge-offs (recoveries) to average loans *  0.30% -0.08% 1.29% -1.15% 1.45%  0.37%  0.56% 
Allowance for loan losses$ 5,618  5,969  5,872  7,567  5,795   5,872   6,520  
Allowance for loan losses to loans held invst.  1.18% 1.31% 1.26% 1.62% 1.26%  1.26%  1.38% 
Nonperforming loans$ 5,101  3,519  3,110  8,964  11,716   3,110   6,458  
Performing restructured loans$ 9,486  12,078  9,687  9,317  9,450   9,687   9,774  
Other real estate owned$ 4,212  4,587  4,592  5,073  5,352   4,592   5,610  
Nonperforming loans to loans held for investment      1.07% 0.77% 0.67% 1.92% 2.54%  0.67%  1.37% 
Nonperforming assets to total assets  1.32% 1.15% 1.10% 2.04% 2.50%  1.10%  1.78% 
            
END OF PERIOD BALANCES           
Total assets$ 706,495  705,704  700,798  688,974  683,685   700,798   679,263  
Total loans held for investment$ 476,783  455,139  465,804  465,889  461,000   465,804   472,189  
Total deposits$ 599,148  601,073  607,307  596,489  592,719   607,307   594,898  
Stockholders' equity$ 64,120  62,687  61,139  60,098  58,460   61,139   52,655  
            
AVERAGE BALANCES           
Total assets$ 706,633  702,473  692,522  684,917  699,101   689,842   664,812  
Total earning assets$ 663,082  657,915  646,158  633,304  654,317   643,031   620,996  
Total loans held for investment$ 470,021  466,301  463,285  459,538  465,914   465,163   462,870  
Total non interest-bearing demand deposits$ 141,092  129,367  125,279  119,074  118,577   118,355   94,618  
Common stockholders' equity$ 63,349  61,979  60,522  59,384  55,414   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  


The following information was filed by Carolina Bank Holdings Inc (CLBH) on Thursday, July 28, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Carolina Bank Holdings Inc provided additional information to their SEC Filing as exhibits

Ticker: CLBH
CIK: 1127160
Form Type: 10-Q Quarterly Report
Accession Number: 0001144204-16-118602
Submitted to the SEC: Fri Aug 12 2016 12:43:21 PM EST
Accepted by the SEC: Fri Aug 12 2016
Period: Thursday, June 30, 2016
Industry: State Commercial Banks

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