GREENSBORO, N.C., Jan. 29, 2016 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (NASDAQ:CLBH) today reported 2015 annual and fourth quarter results with highlights as follows:

2015 and 4^th Quarter Financial Highlights

• Nonperforming assets declined to $7.7 million, or 1.10% of assets, at December 31, 2015 compared to $14.0 million, or 2.0% of assets, at September 30, 2015.
• Average non-interest bearing demand deposits increased 25.1% in 2015 from 2014.
• Net income available to common shareholders increased to $5.4 million in 2015 from $2.4 million in 2014. Diluted net income per common share increased to $1.17 in 2015 from $0.70 in 2014.
• Net income available to common shareholders decreased 3.4% to $1,036,000 in the fourth quarter of 2015 from $1,072,000 in the fourth quarter of 2014.  
• Assets increased 3.2% in 2015 to $700.8 million at December 31, 2015.
• The number of common shares outstanding increased to 5,021,330 at December 31, 2015 from 3,434,680 at December 31, 2014, primarily due to convertible preferred stock issued on March 31, 2015 which was converted into 1,550,000 shares of common stock on May 22, 2015.
• The Mortgage Division realized net income of $1,550,000 in 2015 compared to a loss of $702,000 in 2014.  The Mortgage Division had a net loss of $100,000 in the fourth quarter of 2015 compared to net income of $76,000 in the fourth quarter of 2014.

Robert T. Braswell, President and CEO, commented, “I am pleased to report that our asset quality improved substantially in the fourth quarter with a reduction of 45% in our nonperforming assets. We realized higher net proceeds than previously estimated on the payoff of nonperforming loans which resulted in a reduction in our provision for loan losses in the fourth quarter. With the improvement in asset quality, we are increasing our efforts at growing the loan portfolio and reducing professional costs related to nonperforming assets.”

“We continue to build value for shareholders with our emphasis on increasing non-interest bearing demand deposits as average balances in 2015 increased over 25% from average balances in 2014. While we are pleased with the performance of our mortgage division in 2015, which realized net income of over $1.5 million, our fourth quarter results in the mortgage division were less than expected due to regulatory changes and declining originations. We have recently taken steps to improve internal processes in the mortgage division to allow us to effectively manage future growth,” 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. Our Greensboro Friendly Center branch closed on July 31, 2015 due to an expiring lease in late 2015. Our second full-service office in Winston-Salem, opened in August of 2015. 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
					December 31,
						2015				2014
					(unaudited)
				(in thousands, except share data)
	Assets
	Cash and due from banks				$	6,559			$	7,942
	Interest-bearing deposits with banks					69,233				38,232
	Bank term deposits					16,604				14,106
	Securities available-for-sale, at fair value					47,360				51,200
	Securities held-to-maturity (fair values of $15,226 in 2015 and $15,945 in 2014)					14,954				15,644
	Loans held for sale					39,583				39,780
	Loans					465,804				472,189
	Less allowance for loan losses					(5,872	)			(6,520	)
			Net loans			459,932				465,669
	Premises and equipment, net					19,007				18,311
	Other real estate owned					4,592				5,610
	Bank-owned life insurance					11,843				11,483
	Other assets					11,131				11,286
			Total assets		$	700,798			$	679,263
	Liabilities and Stockholders' Equity
	Deposits
		Non-interest bearing demand			$	125,189			$	106,163
		NOW, money market and savings				349,815				344,919
		Time				132,303				143,816
			Total deposits			607,307				594,898
	Advances from the Federal Home Loan Bank					2,681				2,785
	Securities sold under agreements to repurchase					47				176
	Subordinated debentures					19,610				19,610
	Other liabilities and accrued expenses					10,014				9,139
			Total liabilities			639,659				626,608
	Stockholders' equity
		Preferred stock, no par value, authorized 1,000,000 shares;
			issued and outstanding 10,994 shares			-				10,994
		Common stock, $1 par value; authorized 20,000,000 shares;
			issued and outstanding 5,021,330 in 2015 and 3,434,680 in 2014			5,021				3,435
		Additional paid-in capital				29,234				16,339
		Retained earnings				26,174				20,748
		Stock in directors' rabbi trust				(1,831	)			(1,465	)
		Directors' deferred fees obligation				1,831				1,465
		Accumulated other comprehensive income				710				1,139
			Total stockholders’ equity			61,139				52,655
			Total liabilities and stockholders’ equity		$	700,798			$	679,263

 

	Carolina Bank Holdings, Inc. and Subsidiary
	Consolidated Statements of Income (unaudited)
					Three Months								Years Ended
					Ended December 31,								December 31,
						2015				2014				2015				2014
					(in thousands, except per share data)
	Interest income
		Loans			$	6,235			$	6,417			$	24,314			$	24,168
		Investment securities, taxable				325				331				1,310				1,547
		Investment securities, non taxable				116				123				479				532
		Interest from deposits in banks				84				51				267				201
			Total interest income			6,760				6,922				26,370				26,448
	Interest expense
		NOW, money market, savings				240				241				953				957
		Time deposits				266				372				1,142				1,593
		Other borrowed funds				173				145				630				641
			Total interest expense			679				758				2,725				3,191
	Net interest income					6,081				6,164				23,645				23,257
	Provision for (recovery of) loan losses					(200	)			50				1,085				1,436
	Net interest income after provision for loan losses					6,281				6,114				22,560				21,821
	Non-interest income
		Service charges				313				329				1,232				1,269
		Mortgage banking income				2,206				2,370				12,054				7,771
		Gain on sale of investment securities available-for-sale				-				18				27				274
		Other				72				4				330				99
			Total non-interest income			2,591				2,721				13,643				9,413
	Non-interest expense
		Salaries and benefits				4,351				4,578				17,784				16,951
		Occupancy and equipment				787				749				3,105				3,070
		Foreclosed property expense				226				96				317				270
		Professional fees				761				374				2,138				1,781
		Outside data processing				270				290				1,079				1,090
		FDIC insurance				105				135				498				534
		Advertising and promotion				354				222				932				938
		Stationery, printing and supplies				135				134				582				560
		Other				287				550				1,499				1,810
			Total non-interest expense			7,276				7,128				27,934				27,004
	Income before income taxes					1,596				1,707				8,269				4,230
	Income tax expense					560				388				2,502				884
	Net income					1,036				1,319				5,767				3,346
	Dividends and accretion on preferred stock					-				247				341				933
	Net income available to common stockholders				$	1,036			$	1,072			$	5,426			$	2,413
	Net income per common share
		Basic			$	0.21			$	0.31			$	1.24			$	0.70
		Diluted			$	0.21			$	0.31			$	1.17			$	0.70

 

 

Carolina Bank Holdings, Inc.
Consolidated Financial Highlights
Fourth  Quarter 2015
(unaudited)
		Quarterly																Years Ended
		4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
($ in thousands except for share data)			2015			2015			2015			2015			2014				2015				2014
EARNINGS
Net interest income	$		6,081			5,889			5,865			5,810			6,164				23,645				23,257
Provision for loan losses	$		(200	)		450			535			300			50				1,085				1,436
NonInterest income	$		2,591			3,641			4,128			3,283			2,721				13,643				9,413
NonInterest expense	$		7,276			7,015			7,101			6,542			7,128				27,934				27,004
Net income	$		1,036			1,436			1,666			1,629			1,319				5,767				3,346
Net income available to common stockholders	$		1,036			1,436			1,572			1,382			1,072				5,426				2,413
Basic earnings per common share	$		0.21			0.29			0.38			0.40			0.31				1.24				0.70
Diluted earnings per common share	$		0.21			0.29			0.32			0.40			0.31				1.17				0.70
Average common shares outstanding			5,008,301			4,990,163			4,099,303			3,434,680			3,434,680				4,389,086				3,431,385
Average diluted common shares outstanding			5,019,056			5,000,352			4,988,938			3,451,902			3,434,680				4,620,411				3,433,603
PERFORMANCE RATIOS
Return on average assets *			0.59	%		0.83	%		0.96	%		0.97	%		0.78	%			0.84	%			0.50	%
Return on average common equity **  *			6.79	%		9.59	%		11.38	%		13.24	%		10.36	%			9.96	%			6.05	%
Net interest margin (fully-tax equivalent) *			3.79	%		3.74	%		3.65	%		3.75	%		3.95	%			3.73	%			3.80	%
Efficiency ratio			83.05	%		72.94	%		70.38	%		71.21	%		79.39	%			74.18	%			81.78	%
Efficiency ratio (excluding mortgage division)			75.06	%		73.29	%		69.79	%		68.63	%		73.94	%			71.72	%			71.73	%
# full-time equivalent employees - period end			192			190			192			191			189				192				189
CAPITAL
Equity to period-end assets			8.72	%		8.72	%		8.55	%		9.60	%		7.75	%			8.72	%			7.75	%
Common tangible equity to assets			8.72	%		8.72	%		8.55	%		6.07	%		6.13	%			8.72	%			6.13	%
Tier 1 leverage capital ratio - Bank			9.71	%		9.65	%		9.24	%		9.20	%		9.11	%			9.71	%			9.11	%
Tier 1 risk-based capital ratio - Bank			12.09	%		11.66	%		11.23	%		11.25	%		11.42	%			12.09	%			11.42	%
Total risk-based capital ratio - Bank			13.81	%		13.90	%		13.21	%		13.50	%		13.67	%			13.81	%			13.67	%
Book value per common share	$		12.18			12.04			11.72			11.48			12.13				12.18				12.13
ASSET QUALITY
Net loan charge-offs (recoveries)	$		1,495			(1,321	)		1,694			(134	)		76				1,733				2,579
Net charge-offs (recoveries) to average loans *			1.29	%		-1.15	%		1.45	%		-0.11	%		0.06	%			0.37	%			0.56	%
Allowance for loan losses	$		5,872			7,567			5,795			6,954			6,520				5,872				6,520
Allowance for loan losses to loans held invst.			1.26	%		1.62	%		1.26	%		1.49	%		1.38	%			1.26	%			1.38	%
Nonperforming loans	$		3,110			8,964			11,716			6,362			6,458				3,110				6,458
Performing restructured loans	$		9,687			9,317			9,450			9,548			9,774				9,687				9,774
Other real estate owned	$		4,592			5,073			5,352			5,116			5,610				4,592				5,610
Nonperforming loans to loans held for investment			0.67	%		1.92	%		2.54	%		1.36	%		1.37	%			0.67	%			1.37	%
Nonperforming assets to total assets			1.10	%		2.04	%		2.50	%		1.62	%		1.78	%			1.10	%			1.78	%
END OF PERIOD BALANCES
Total assets	$		700,798			688,974			683,685			710,672			679,263				700,798				679,263
Total loans held for investment	$		465,804			465,889			461,000			467,232			472,189				465,804				472,189
Total deposits	$		607,307			596,489			592,719			609,417			594,898				607,307				594,898
Stockholders' equity	$		61,139			60,098			58,460			68,238			52,655				61,139				52,655
AVERAGE BALANCES
Total assets	$		692,522			684,917			699,101			682,777			675,159				689,842				664,812
Total earning assets	$		646,158			633,304			654,317			638,368			629,331				643,031				620,996
Total loans held for investment	$		463,285			459,538			465,914			472,073			475,106				465,163				462,870
Total non interest-bearing demand deposits	$		125,279			119,074			118,577			110,318			104,241				118,355				94,618
Common stockholders' equity	$		60,522			59,384			55,414			42,341			41,065				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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