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 Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st 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
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