EX-99 2 newsrelease.htm PRESS RELEASE Carolina Bank Holdings, Inc. Reports EPS of $0.40 for the First Quarter of 2015

EXHIBIT 99.1

Carolina Bank Holdings, Inc. Reports EPS of $0.40 for the First Quarter of 2015

GREENSBORO, N.C., April 30, 2015 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported first quarter 2015 results with highlights as follows:

1st Quarter 2015 Financial Highlights

  • Net income of $1,629,000 in the first quarter of 2015 improved from $265,000 in the first quarter of 2014.
  • Net income available to common shareholders was $1.4 million and $0.07 million in the first quarters of 2015 and 2014, respectively.
  • Diluted net income per common share was $0.40 in the first quarter of 2015 compared to $0.02 in the first quarter of 2014.
  • A private placement of convertible preferred stock was completed on March 31, 2015, and most of the net proceeds of $14.1 million will be used to redeem outstanding preferred stock of $11.0 million. The new issue of convertible preferred stock will automatically convert to common stock if approved by common stockholders at the upcoming annual meeting.
  • Average non-interest bearing demand deposits increased 25.9% in the first quarter of 2015 from the first quarter of 2014.
  • Non-performing assets decreased to $11.5 million, or 1.62% of assets, at March 31, 2015 from $18.1 million, or 2.75% of assets, at March 31, 2014.
  • The Mortgage Division realized net income of $439,000 in the first quarter of 2015 compared to a loss in the first quarter of 2014.

Robert T. Braswell, President and CEO, commented, "I am pleased to report the completion of our private placement of convertible preferred stock at the end of the first quarter, which resulted in net proceeds of approximately $14.1 million. This offering will be used to redeem our existing Series A preferred stock of approximately $11.0 million and provide additional capital for our growth. The conversion of the newly issued convertible preferred to common stock will further strengthen our Common Tier 1 risk-based capital ratio."

"Our earnings per share which totaled $1.08 over the last four quarters and $0.40 in the first quarter of 2015 reflect our success in executing our business plan of growing our business and improving asset quality. The growth of over 25% in our average non-interest bearing demand accounts in the past year validates that our emphasis on exceptional customer service has enhanced our relationships with customers," 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, four in Greensboro, one in Asheboro, one in High Point, one in Burlington, and one in Winston-Salem. Our ninth full-service office is currently under construction in Winston-Salem with a planned opening in July of 2015. Residential mortgage loan production offices are located in Burlington, Chapel Hill, Pinehurst, 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,
  2015 2014
  (unaudited)  
  (in thousands, except share data)
Assets    
Cash and due from banks  $ 6,670  $ 7,942
Interest-bearing deposits with banks  52,454  38,232
Bank term deposits  15,106  14,106
Securities available-for-sale, at fair value  49,403  51,200
Securities held-to-maturity (fair values of $15,716 in 2015 and $15,945 in 2014)   15,313  15,644
Loans held for sale  64,274  39,780
Loans   467,232  472,189
Less allowance for loan losses  (6,954)  (6,520)
Net loans   460,278  465,669
Premises and equipment, net  18,568  18,311
Other real estate owned  5,116  5,610
Bank-owned life insurance  11,571  11,483
Other assets  11,919  11,286
Total assets  $ 710,672  $ 679,263
     
Liabilities and Stockholders' Equity    
Deposits    
Non-interest bearing demand  $ 115,271  $ 106,163
NOW, money market and savings  349,716  344,919
Time  144,430  143,816
Total deposits  609,417  594,898
     
Advances from the Federal Home Loan Bank  2,759  2,785
Securities sold under agreements to repurchase  148  176
Subordinated debentures  19,610  19,610
Other liabilities and accrued expenses  10,500  9,139
Total liabilities  642,434  626,608
     
Stockholders' equity    
Preferred stock, no par value, authorized 1,000,000 shares;    
issued and outstanding 10,994 shares   10,994  10,994
Convertible preferred stock, no par value, authorized 15,500 shares;    
issued and outstanding 15,500 in 2015 and none in 2014  14,103  --
Common stock, $1 par value; authorized 20,000,000 shares;     
issued and outstanding 3,434,680 in 2015 and 2014  3,435  3,435
Additional paid-in capital  16,339  16,339
Retained earnings   22,130  20,748
Stock in directors' rabbi trust  (1,555)  (1,465)
Directors' deferred fees obligation  1,555  1,465
Accumulated other comprehensive income   1,237  1,139
Total stockholders' equity  68,238  52,655
Total liabilities and stockholders' equity  $ 710,672  $ 679,263
     
     
Carolina Bank Holdings, Inc. and Subsidiary    
Consolidated Statements of Income (unaudited)    
  Three Months
  Ended March 31, 
  2015 2014
  (in thousands, except per share data)
Interest income    
Loans  $ 5,992  $ 5,754
Investment securities, taxable  338  420
Investment securities, non taxable  122  142
Interest from deposits in banks  61  60
Total interest income  6,513  6,376
     
Interest expense    
NOW, money market, savings  239  236
Time deposits  312  418
Other borrowed funds  152  164
Total interest expense  703  818
     
Net interest income  5,810  5,558
Provision for loan losses  300  770
Net interest income after provision for loan losses  5,510  4,788
Non-interest income    
Service charges  303  299
Mortgage banking income  2,907  1,333
Gain on sale of investment securities available-for-sale  27  49
Other  46  69
Total non-interest income  3,283  1,750
     
Non-interest expense    
Salaries and benefits  4,318  3,835
Occupancy and equipment  776  761
Foreclosed property expense  (131)  105
Professional fees  449  458
Outside data processing  274  251
FDIC insurance  131  134
Advertising and promotion  193  321
Stationery, printing and supplies  151  137
Other  381  333
Total non-interest expense  6,542 6,335
     
Income before income taxes  2,251  203
Income tax expense (benefit)   622  (62)
Net income   1,629  265
Dividends and accretion on preferred stock  247  191
Net income available to common stockholders  $ 1,382  $ 74
Net income per common share    
Basic  $ 0.40  $ 0.02
Diluted  $ 0.40  $ 0.02
 
                   
                   
Carolina Bank Holdings, Inc.                  
Consolidated Financial Highlights               
First Quarter 2015                  
(unaudited)                  
    Quarterly    Years Ended
    1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr      
($ in thousands except for share data)   2015 2014 2014 2014 2014   2014 2013
                   
EARNINGS                  
 Net interest income $ 5,810 6,164 5,892 5,643 5,558    23,257  22,315
 Provision for loan losses $ 300 50 270 346 770    1,436  3,450
 NonInterest income $ 3,283 2,721 2,602 2,340 1,750    9,413  14,334
 NonInterest expense $ 6,542 7,128 6,829 6,712 6,335    27,004  27,620
 Net income  $ 1,629 1,319 1,012 750 265    3,346  4,010
 Net income available to common stockholders $ 1,382 1,072 764 503 74    2,413  2,928
 Basic earnings per common share $ 0.40 0.31 0.22 0.15 0.02    0.70  0.86
 Diluted earnings per common share $ 0.40 0.31 0.22 0.15 0.02    0.70  0.85
 Average common shares outstanding   3,434,680 3,434,680 3,431,933 3,430,036 3,428,891    3,431,385 3,410,974
 Average diluted common shares outstanding   3,451,902 3,434,680 3,432,130 3,434,101 3,433,501    3,433,603 3,426,764
                   
PERFORMANCE RATIOS                  
 Return on average assets *   0.97% 0.78% 0.60% 0.46% 0.16%   0.50% 0.60%
 Return on average common equity **   13.24% 10.36% 7.56% 5.12% 0.77%   6.05% 7.52%
 Net interest margin (fully-tax equivalent) *   3.75% 3.95% 3.81% 3.74% 3.75%   3.80% 3.59%
 Efficiency ratio   71.21% 79.39% 79.48% 83.19% 85.85%   81.78% 74.88%
 Efficiency ratio (excluding mortgage division)   68.63% 73.94% 68.81% 73.10% 71.07%   71.73% 69.63%
 # full-time equivalent employees - period end   191 189 193 195 194   189 191
                   
CAPITAL                  
 Equity to period-end assets   9.60% 7.75% 7.68% 7.57% 7.60%   7.75% 7.50%
 Common tangible equity to assets   6.07% 6.13% 6.03% 5.93% 5.93%   6.13% 5.83%
 Tier 1 leverage capital ratio - Bank   9.20% 9.11% 9.03% 9.07% 8.97%   9.11% 8.86%
 Tier 1 risk-based capital ratio - Bank   11.25% 11.42% 11.05% 10.81% 11.13%   11.42% 11.19%
 Total risk-based capital ratio - Bank   13.50% 13.67% 13.61% 13.41% 13.79%   13.67% 13.85%
 Book value per common share *** $  11.48  12.13  11.75  11.57  11.36    12.13  11.26
                   
ASSET QUALITY                  
 Net loan charge-offs (recoveries)  $ (134) 76 927 1,432 144    2,579  5,731
 Net charge-offs (recoveries) to average loans *   -0.11% 0.06% 0.80% 1.26% 0.13%   0.56% 1.33%
 Allowance for loan losses $ 6,954 6,520 6,546 7,203 8,289   6,520 7,663
 Allowance for loan losses to loans held invst.   1.49% 1.38% 1.39% 1.55% 1.85%   1.38% 1.73%
 Nonperforming loans $  6,362  6,458  10,348  12,435  16,610    6,458  16,731
 Performing restructured loans $ 9,548 9,774 9,883 9,983 10,145   9,774 10,381
 Other real estate owned $ 5,116 5,610 5,587 4,431 1,494   5,610 2,329
 Nonperforming loans to loans held for investment   1.36% 1.37% 2.20% 2.68% 3.70%   1.37% 3.77%
 Nonperforming assets to total assets   1.62% 1.78% 2.40% 2.52% 2.75%   1.78% 2.88%
                   
END OF PERIOD BALANCES                  
 Total assets $ 710,672 679,263 669,029 669,162 657,365   679,263 661,807
 Total loans held for investment $ 467,232 472,189 470,782 464,706 448,858   472,189 444,087
 Total deposits $ 609,417 594,898 586,940 577,313 575,850   594,898 579,097
 Stockholders' equity $ 68,238 52,655 51,352 50,679 49,956   52,655 49,604
                   
AVERAGE BALANCES                  
 Total assets $ 682,777 675,159 669,168 656,724 657,959    664,812 671,529
 Total earning assets $ 638,368 629,331 623,761 613,582 617,147    620,996 627,491
 Total loans held for investment  $ 472,073 475,106 466,268 455,798 454,039    462,870 432,471
 Total non interest-bearing demand deposits  $  110,318  104,241  96,248  90,186  87,597    94,618 82,343
 Common stockholders' equity $ 42,341 41,065 40,069 39,401 38,947    39,904 38,927
                   
* annualized for all periods presented
**return on average common equity is computed using net income available to common stockholders
***assumes conversion of convertible preferred stock to 1,550,000 shares of common stock in 1st Quarter 2015
CONTACT: Carolina Bank Holdings, Inc.
         T. Allen Liles, EVP and CFO
         Telephone: 336-286-8746
         Email: a.liles@carolinabank.com