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

Carolina Bank Holdings Inc

CIK: 1127160 Ticker: CLBH

EXHIBIT 99.1

Carolina Bank Holdings, Inc. Reports EPS of $0.31 in the Third Quarter

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, 
      2016   2015  
     (unaudited)   
    (in thousands, except share data)
 Assets     
 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  
 Loans     503,226     465,804  
 Less allowance for loan losses    (5,764)    (5,872) 
   Net loans    497,462     459,932  
 Premises and equipment, net    18,389     19,007  
 Other real estate owned    3,914     4,592  
 Bank-owned life insurance    12,118     11,843  
 Other assets    11,298     11,131  
   Total assets $  708,890  $  700,798  
         
 Liabilities and Stockholders' Equity     
 Deposits     
  Non-interest bearing demand $  143,057  $  125,189  
  NOW, money market and savings    355,364     349,815  
  Time    103,062     132,303  
   Total deposits    601,483     607,307  
         
 Advances from the Federal Home Loan Bank    12,100     2,681  
 Securities sold under agreements to repurchase    -     47  
 Subordinated debentures    19,610     19,610  
 Other liabilities and accrued expenses    10,131     10,014  
   Total liabilities    643,324     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 5,045,358 in 2016 and 5,021,330 in 2015    5,045     5,021  
  Additional paid-in capital    29,471     29,234  
  Retained earnings    30,082     26,174  
  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,
      2016   2015   2016   2015 
    (in thousands, except per share data)
 Interest income        
  Loans $  6,063  $  6,062  $  18,046  $  18,079 
  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 
            
 Interest expense        
  NOW, money market, savings    234     237     700     713 
  Time deposits    223     277     731     876 
  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 
 Non-interest income        
  Service charges    318     304     916     919 
  Mortgage banking income    2,533     3,220     7,115     9,848 
  Gain on sale of SBA loans    261     67     498     120 
  Other    70     50     211     165 
   Total non-interest income    3,182     3,641     8,740     11,052 
            
 Non-interest expense        
  Salaries and benefits    4,536     4,533     13,216     13,433 
  Occupancy and equipment    722     783     2,170     2,318 
  Professional fees    457     474     1,379     1,377 
  Outside data processing    280     270     831     809 
  FDIC insurance    109     132     310     393 
  Advertising and promotion    244     225     734     578 
  Stationery, printing and supplies    142     149     433     447 
  Merger expense    154     -     739     - 
  Other    279     449     1,195     1,303 
   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 
 Net income     1,564     1,436     3,908     4,731 
 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        
  Basic $  0.31  $  0.29  $  0.78  $  1.05 
  Diluted $  0.31  $  0.29  $  0.77  $  0.98 


 


Carolina Bank Holdings, Inc.    
Consolidated Financial Highlights      
Third  Quarter 2016    
(unaudited)    
  Quarterly  Years Ended 
  3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr     
($ in thousands except for share and per share data)  2016  2016  2016  2015  2015   2015   2014  
            
EARNINGS           
  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  
  NonInterest income$ 3,182  3,269  2,289  2,591  3,641     13,643     9,413  
  NonInterest expense$ 6,923  7,454  6,630  7,276  7,015     27,934     27,004  
  Net income$ 1,564  1,243  1,101  1,036  1,436     5,767     3,346  
  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  
            
PERFORMANCE RATIOS           
  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  
            
CAPITAL           
  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  
            
ASSET QUALITY           
  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% 
  Nonperforming loans$   4,392    5,101    3,519    3,110    8,964     3,110     6,458  
  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 assets$ 708,890  706,495  705,704  700,798  688,974   700,798   679,263  
  Total loans held for investment$ 503,226  476,783  455,139  465,804  465,889   465,804   472,189  
  Total deposits$ 601,483  599,148  601,073  607,307  596,489   607,307   594,898  
  Stockholders' equity$ 65,566  64,120  62,687  61,139  60,098   61,139   52,655  
            
AVERAGE BALANCES           
  Total assets$ 712,919  706,633  702,473  692,522  684,917     689,842     664,812  
  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: a.liles@carolinabank.com


The following information was filed by Carolina Bank Holdings Inc (CLBH) on Thursday, October 27, 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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Consolidated Balance Sheets
Consolidated Balance Sheets [parenthetical]
Consolidated Statement Of Stockholders' Equity
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Income
Basis Of Presentation
Business Combinations
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Earnings Per Common Share
Earnings Per Common Share (details Textual)
Earnings Per Common Share (details)
Earnings Per Common Share (tables)
Fair Value Measurements
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Loans And Allowance For Loan Losses (details 1)
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Loans And Allowance For Loan Losses (details 3)
Loans And Allowance For Loan Losses (details 4)
Loans And Allowance For Loan Losses (details 5)
Loans And Allowance For Loan Losses (details 6)
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Ticker: CLBH
CIK: 1127160
Form Type: 10-Q Quarterly Report
Accession Number: 0001144204-16-133390
Submitted to the SEC: Thu Nov 10 2016 5:12:33 PM EST
Accepted by the SEC: Thu Nov 10 2016
Period: Friday, September 30, 2016
Industry: State Commercial Banks

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