EX-99 3 dex99.htm PRESS RELEASE Press Release
 
For Immediate Release
 
January 15, 2003
 
Carolina Bank Holdings reports 2002 results
 
Carolina Bank Holdings, Inc. (NASDAQ SmallCap Symbol “CLBH”) announced continued strong growth and improving business performance for the year ending December 31, 2002. Compared to the year ending December 31, 2001, the bank reported assets increased 25 percent to $189,495,000, net loans grew 22 percent to $131,384,000 and deposits increased 24 percent to $154,878,000.
 
Describing the company’s financial performance, Robert T. Braswell, President and CEO, said “on a quarter-to-quarter comparison, fourth quarter 2002 was the best in our company’s history.” Compared with the quarter ending December 31, 2001, the company posted a 183% increase in net income to $240,000. In addition, in the fourth quarter 2002, earnings per share increased 150% to $0.20. “The improvement,” continued Braswell, “is due to improved net interest margins, greater non-interest fee income and growth in our loan portfolio, which is a prime driver of our success.” The bank announced two new revenue producing services in 2002: CheckGuard Overdraft Protection Service and Carolina Bank Investment Services. Both contributed to the company’s success.
 
For the year ending December 31, 2002, net income increased 49.5 percent to $600,842. Earnings per share for the year increased 41 percent to $0.55 diluted. There was a slight increase in charge-offs for the year; however, the bank has experienced a total of only $654,000 in charge-offs since its inception in 1996. Braswell commented on the charge-offs by saying, “We feel our charge-off record is extremely good considering that we have experienced substantial growth in our six-year history. The company has only one piece of property classified as Other Real Estate Owned; it is under contract to close in first quarter 2003. Furthermore, the company’s aggressive collection efforts have moderated growth in Non-Performing Assets.”
 
In September 2002, Carolina Bank Holdings announced a public stock offering. The offering was completed in December 2002; however, it was oversubscribed, with requests for 200,000 more shares than could be fulfilled. Also in December 2002, the company’s stock began trading on the NASDAQ SmallCap Market. Formerly it was traded on the Over The Counter Bulletin Board. Commenting on the change Braswell said, “we have accomplished two worthwhile goals. First, investors have a more liquid investment. Second, the additional capital will allow us to continue our strong growth for the foreseeable future.”
 
The company also announced the appointment of Cindi Welker as the company’s Compliance Officer.
 
Carolina Bank Holdings, Inc. operates Carolina Bank as a wholly owned subsidiary. Carolina Bank specializes in lending to entrepreneur-owned businesses and professional associations. The bank offers an array of value-priced banking products and a seasoned, professional corps of commercial bankers who are more than willing to accommodate clients’ busy schedules. A hallmark of the bank’s business practice is fast, responsive decision-making. Customers may access their accounts with a 24-hour telephone banking system. The bank provides customers free ATM access by rebating foreign ATM transaction costs. The bank operates three offices in Greensboro: 3124 W. Friendly Avenue, 2604 Lawndale Avenue and in Jefferson Village, 1601 Highwoods Boulevard. In May 2002, the bank opened a Loan Production Office in Asheboro, NC.

1

 
This press release contains forward-looking statements regarding future events. These statements are just 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 materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission.
 
# # #
Please see the attached, “Selected Financial Information”. It is an integral part of this communication.
For additional information please contact:
Carolina Bank
Mr. Robert T. Braswell, President and CEO
P. O. Box 10209, Greensboro, North Carolina 27404
Telephone: 336-286-8740 – Email: b.braswell@carolinabank.com

2

 
CAROLINA BANK HOLDINGS, INC.
Selected Financial Information
 
    
2002
     
2001
     
Years Ended
  
(in thousands, except per share)
   
Fourth Quarter
     
Third Quarter
     
Second Quarter
     
First Quarter
     
Fourth Quarter
     
Third Quarter
     
2002
     
2001
     
2000
  
OPERATING INCOME SUMMARY
                                                                                 
Interest income
   
$
2,376
 
   
$
2,319
 
   
$
2,237
 
   
$
2,153
 
   
$
2,222
 
   
$
2,286
 
   
$
9,085
 
   
$
9,016
 
   
$
8,002
 
Interest expense
   
 
1,021
 
   
 
1,054
 
   
 
981
 
   
 
1,095
 
   
 
1,279
 
   
 
1,343
 
   
 
4,151
 
   
 
5,397
 
   
 
4,464
 
Net interest income
   
 
1,355
 
   
 
1,265
 
   
 
1,256
 
   
 
1,058
 
   
 
943
 
   
 
943
 
   
 
4,934
 
   
 
3,619
 
   
 
3,538
 
Provision for loan losses
   
 
190
 
   
 
175
 
   
 
215
 
   
 
105
 
   
 
112
 
   
 
154
 
   
 
685
 
   
 
391
 
   
 
332
 
Non-interest inc. before securities gns
   
 
335
 
   
 
268
 
   
 
167
 
   
 
142
 
   
 
154
 
   
 
127
 
   
 
912
 
   
 
557
 
   
 
280
 
Securities gains (losses),net
   
 
—  
 
   
 
20
 
   
 
—  
 
   
 
—  
 
   
 
73
 
   
 
—  
 
   
 
20
 
   
 
129
 
   
 
—  
 
Non-interest expenses
   
 
1,169
 
   
 
1,079
 
   
 
1,053
 
   
 
966
 
   
 
937
 
   
 
843
 
   
 
4,267
 
   
 
3,386
 
   
 
2,642
 
Income before income taxes
   
 
331
 
   
 
299
 
   
 
155
 
   
 
129
 
   
 
121
 
   
 
73
 
   
 
914
 
   
 
528
 
   
 
844
 
Income taxes
   
 
91
 
   
 
125
 
   
 
55
 
   
 
42
 
   
 
36
 
   
 
27
 
   
 
313
 
   
 
126
 
   
 
302
 
Net income
   
$
240
 
   
$
174
 
   
$
100
 
   
$
87
 
   
$
85
 
   
$
46
 
   
$
601
 
   
$
402
 
   
$
542
 
PER COMMON SHARE
                                                                                 
Basic
   
$
0.20
 
   
$
0.17
 
   
$
0.10
 
   
$
0.08
 
   
$
0.08
 
   
$
0.04
 
   
$
0.56
 
   
$
0.39
 
   
$
0.53
 
Diluted
   
 
0.20
 
   
 
0.16
 
   
 
0.10
 
   
 
0.08
 
   
 
0.08
 
   
 
0.04
 
   
 
0.55
 
   
 
0.39
 
   
 
0.53
 
Book Value (on outstanding shares)
   
 
9.93
 
   
 
9.88
 
   
 
9.65
 
   
 
9.29
 
   
 
9.29
 
   
 
9.40
 
   
 
9.93
 
   
 
9.29
 
   
 
8.88
 
ASSET QUALITY
                                                                                 
Allowance for loan losses
   
$
1,661
 
   
$
1,626
 
   
$
1,531
 
   
$
1,472
 
   
$
1,369
 
   
$
1,446
 
   
$
1,661
 
   
$
1,369
 
   
$
1,187
 
Non-performing loans
   
 
37
 
   
 
395
 
   
 
753
 
   
 
858
 
   
 
443
 
   
 
620
 
   
 
37
 
   
 
443
 
   
 
254
 
Repossed assets
   
 
648
 
   
 
478
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
648
 
   
 
—  
 
   
 
—  
 
Net loan chargeoffs
   
 
155
 
   
 
80
 
   
 
156
 
   
 
2
 
   
 
190
 
   
 
10
 
   
 
393
 
   
 
209
 
   
 
51
 
Allowance for loan losses to loans
   
 
1.25
%
   
 
1.26
%
   
 
1.25
%
   
 
1.30
%
   
 
1.26
%
   
 
1.38
%
   
 
1.25
%
   
 
1.26
%
   
 
1.40
%
Non-performing assets to total assets
   
 
0.36
%
   
 
0.51
%
   
 
0.45
%
   
 
0.57
%
   
 
0.29
%
   
 
0.42
%
   
 
0.36
%
   
 
0.29
%
   
 
0.23
%
AVERAGE BALANCES
                                                                                 
Loans
   
$
130,888
 
   
$
126,628
 
   
$
117,913
 
   
$
110,355
 
   
$
104,903
 
   
$
98,708
 
   
$
121,446
 
   
$
95,602
 
   
$
71,497
 
Earning assets
   
$
168,176
 
   
 
161,663
 
   
 
149,459
 
   
 
142,382
 
   
 
140,392
 
   
 
124,437
 
   
 
155,420
 
   
 
122,273
 
   
 
90,743
 
Total assets
   
$
176,606
 
   
 
169,685
 
   
 
156,829
 
   
 
150,044
 
   
 
148,620
 
   
 
131,472
 
   
 
163,291
 
   
 
129,022
 
   
 
95,350
 
AT PERIOD END
                                                                                 
Loans before allowance
   
$
133,045
 
   
$
128,775
 
   
$
122,527
 
   
$
112,852
 
   
$
108,882
 
   
$
105,121
 
   
$
133,045
 
   
$
108,882
 
   
$
84,815
 
Total assets
   
 
189,495
 
   
 
170,935
 
   
 
167,573
 
   
 
151,639
 
   
 
151,515
 
   
 
147,280
 
   
 
189,495
 
   
 
151,515
 
   
 
112,498
 
Deposits
   
 
154,878
 
   
 
145,564
 
   
 
142,254
 
   
 
124,396
 
   
 
124,654
 
   
 
122,844
 
   
 
154,878
 
   
 
124,654
 
   
 
97,331
 
Stockholders' Equity
   
 
18,344
 
   
 
10,287
 
   
 
10,049
 
   
 
9,592
 
   
 
9,590
 
   
 
9,705
 
   
 
18,344
 
   
 
9,590
 
   
 
9,168
 
RATIOS ANNUALIZED
                                                                                 
Net yield—avg interest earning assets
   
 
3.22
%
   
 
3.13
%
   
 
3.36
%
   
 
2.97
%
   
 
2.69
%
   
 
3.03
%
   
 
3.17
%
   
 
2.96
%
   
 
3.90
%
Return on average assets
   
 
0.54
%
   
 
0.41
%
   
 
0.26
%
   
 
0.23
%
   
 
0.23
%
   
 
0.14
%
   
 
0.37
%
   
 
0.31
%
   
 
0.57
%
Net charge-offs to average loans
   
 
0.47
%
   
 
0.25
%
   
 
0.53
%
   
 
0.01
%
   
 
0.72
%
   
 
0.04
%
   
 
0.32
%
   
 
0.22
%
   
 
0.07
%
Efficiency ratio (excl security gains)
   
 
0.69
 
   
 
0.70
 
   
 
0.74
 
   
 
0.81
 
   
 
0.85
 
   
 
0.79
 
   
 
0.73
 
   
 
0.81
 
   
 
0.69
 
 
Note: Quarterly and 2002 year end information is unaudited.

 
Avg. Interest Earning Assets
30-Sep-02
Average Balances 9/30/02
 
Average Balances
   
Quarter
     
31-Jul
     
30-Aug
     
30-Sep
     
Total
     
Total
Difference Asset Cn
   
55
 
   
73
 
   
68
 
   
78
 
   
219
 
     
Avg Other _bank
                                        
Noninterest Assets
          
151,137
 
   
156,521
 
   
162,571
 
   
156,743
 
     
Avg Bank Equity
   
150,044
 
   
151,228
 
   
156,607
 
   
162,652
 
   
156,829
 
     
Deman Deposit ADJ.
                                        
Equity Adjustment
   
(2,179
)
   
-2891
 
   
-2905
 
   
-2918
 
   
-8714
 
     
    
  
  
  
  
    
    
Average Balances
     
Interest Earning Assets
          
Sept.
     
Aug.
     
July
     
Average
       
Overnight
          
5,293
 
   
4,959
 
   
342
 
   
3,531
 
     
Total Debt Inv.
          
31,529
 
   
29,545
 
   
34,652
 
   
31,909
 
     
Less Unreal Gain
          
(462
)
   
(387
)
   
(365
)
   
(405
)
     
Gross Loans
          
128,192
 
   
127,587
 
   
124,104
 
   
126,628
 
     
           
  
  
  
    
           
164,552
 
   
161,704
 
   
158,733
 
   
161,663
 
     
Bank Assets
          
172,456
 
   
170,549
 
   
166,275
 
   
169,760
 
     
Difference above
                               
(75
)
     
                                
    
Consolidated
                               
169,685
 
     
Bank Equity
          
13,160
 
   
13080
 
   
13,043
 
   
13,094
 
     
Equity Difference
                               
(2,898
)