GREENSBORO, N.C., Jan. 31, 2017 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported unaudited fourth quarter and annual 2016 results with highlights as follows:

Fourth Quarter and Annual 2016 Financial Highlights

  • Net income increased to $1,204,000, or $0.24 per diluted common share, in the fourth quarter of 2016 from $1,036,000, or $0.21 per diluted common share in the fourth quarter of 2015. 
  • Net income available to common shareholders decreased to $5,112,000, or $1.01 per diluted common share for the year ended December 31, 2016 from $5,426,000 or $1.17 per diluted common share in 2015.
  • Merger expenses of $819,000 in 2016 resulted in an after-tax reduction in net income of $718,000, or $0.14 per common share.
  • Book value per common share increased to $13.13 at December 31, 2016 from $12.18 at December 31, 2015.
  • Loans held for investment increased 0.75% during the fourth quarter of 2016 and 8.85% for the full year ended December 31, 2016.
  • Average non-interest bearing demand deposits increased 17.58% and 19.29% in the fourth quarter of 2016 and full year of 2016 from the same periods in 2015, respectively.
  • The net interest margin on a fully taxable basis decreased to 3.68% in the fourth quarter of 2016 and 3.66% for the full year of 2016 from 3.79% in the fourth quarter of 2015 and 3.73% for the full year of 2015; however net interest income on a fully taxable basis increased in both the fourth quarter and full year of 2016 from the same periods in 2015.
  • Nonperforming assets declined to $7,396,000, or 1.05% of assets, at December 31, 2016 from $7,702,000, or 1.10% of assets, at December 31, 2015.
  • Net loan loss charge-offs were $184,000 in 2016 compared to $1,733,000 in 2015.
  • The Commercial/Retail Bank segment which excludes the mortgage division and the holding company realized net income of $6,010,000 in 2016 compared to $4,487,000 in 2015. The increase in 2016 resulted from higher net interest income, a lower provision for loan losses, lower operating expenses, and higher gains from the origination and sale of SBA loans.
  • Carolina Bank Holdings, Inc. entered into a definitive merger agreement with First Bancorp (Nasdaq:FBNC) on June 21, 2016. CLBH stockholders are expected 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 8.85% growth in loans held for investment during 2016 and 19.29% increase in average non-interest-bearing deposits during 2016. We continued to improve our credit quality as evidenced by lower non-performing and classified assets and by a sharp reduction in loan charge-offs in 2016.”

“We are excited about our proposed merger with First Bancorp who shares our philosophy of delivering unparalleled service and financial solutions. As previously reported, our shareholders voted overwhelmingly for the merger at our special meeting of shareholders in December 2016. We are currently awaiting final regulatory approval and hope to close the merger in the first quarter of 2017,” 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.

Caution Regarding Forward-Looking Statements

This press release, in particular statements regarding the proposed transaction between Carolina Bank Holdings, Inc. and First Bancorp, the expected timetable for completing the transaction, and any other statements about Carolina Bank Holdings, Inc. or First Bancorp managements’ future expectations, beliefs, goals, plans or prospects, includes forward-looking statements that are based on certain beliefs and assumptions and reflect the current expectations of Carolina Bank Holdings, Inc., First Bancorp, and their respective management. Statements that are predictive in nature, that depend on or relate to future events or conditions, or that include words such as “believes,” “anticipates,” “expects,” “continues,” “predict,” “potential,” “contemplates,” “may,” “will,” “likely,” “could,” “should,” “estimates,” “intends,” “plans” and other similar expressions are forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements involve known and unknown risks, assumptions and uncertainties that may cause actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements, and you should not place undue reliance on these statements. Some of the factors that could cause actual results to differ materially from current expectations are: the ability to consummate the proposed transaction; any conditions imposed on the parties in connection with the consummation of the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement relating to the proposed transaction; Carolina Bank Holdings, Inc.’s ability to maintain relationships with employees and third parties following announcement of the proposed transaction; the ability of the parties to satisfy the conditions to the closing of the proposed transaction; the risk that the proposed transaction may not be completed in the time frame expected by the parties or at all; and the risks that are described from time to time in Carolina Bank Holdings Inc.’s reports filed with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and on general industry and economic conditions. Carolina Bank Holdings, Inc. disclaims any intention or obligation to update or revise any 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. BEFORE MAKING ANY 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.

 Carolina Bank Holdings, Inc. and Subsidiary     
 Consolidated Balance Sheets      
     December 31, December 31, 
     2016 2015 
      (unaudited)      
    (in thousands, except share data)
 Assets     
 Cash and due from banks $4,913  $6,559  
 Interest-bearing deposits with banks  67,732   69,233  
 Bank term deposits  11,305   16,604  
 Securities available-for-sale, at fair value  37,491   47,360  
 Securities held-to-maturity (fair values of $13,774 in 2016 and $15,226 in 2015) 13,715   14,954  
 Loans held for sale  22,877   39,583  
 Loans   507,013   465,804  
 Less allowance for loan losses  (5,688)  (5,872) 
   Net loans  501,325   459,932  
 Premises and equipment, net  18,181   19,007  
 Other real estate owned  3,655   4,592  
 Bank-owned life insurance  12,212   11,843  
 Other assets  11,924   11,131  
   Total assets $705,330  $700,798  
         
 Liabilities and Stockholders' Equity     
 Deposits     
  Non-interest bearing demand $140,329  $125,189  
  NOW, money market and savings  359,150   349,815  
  Time  98,632   132,303  
   Total deposits  598,111   607,307  
         
 Advances from the Federal Home Loan Bank  12,073   2,681  
 Securities sold under agreements to repurchase  -   47  
 Subordinated debentures  19,610   19,610  
 Other liabilities and accrued expenses  9,221   10,014  
   Total liabilities  639,015   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 5,052,500 in 2016 and 5,021,330 in 2015  5,052   5,021  
  Additional paid-in capital  29,577   29,234  
  Retained earnings  31,286   26,174  
  Stock in directors' rabbi trust  (2,156)  (1,831) 
  Directors' deferred fees obligation  2,156   1,831  
  Accumulated other comprehensive income  400   710  
   Total stockholders’ equity  66,315   61,139  
   Total liabilities and stockholders’ equity $705,330  $700,798  
         

 

Carolina Bank Holdings, Inc. and Subsidiary
Consolidated Statements of Income (unaudited)
 
  Three Months 
  Years Ended
  Ended December 31,
  December 31,
  2016 
 2015
  2016 2015
               
 (in thousands, except per share data)
Interest income
              
Loans
 $6,176 $6,235  $24,222 $24,314 
Investment securities, taxable  281  325   1,304  1,310 
Investment securities, non taxable  106  116   455  479 
Interest from deposits in banks  124  84   530  267 
Total interest income  6,687  6,760   26,511  26,370 
               
Interest expense
              
NOW, money market, savings  239  240   939  953 
Time deposits
  193  266   924  1,142 
Other borrowed funds
  246  173   939  630 
Total interest expense  678  679   2,802  2,725 
               
Net interest income
  6,009  6,081   23,709  23,645 
Provision for loan losses
  -
  (200)  -
  1,085 
Net interest income after provision for loan losses  6,009  6,281   23,709  22,560 
Non-interest income
              
Service charges
  314  313   1,230  1,232 
Mortgage banking income  1,995  2,206   9,110  12,054 
Gain on sale of SBA loans  -
  14   498  134 
Other
  84  58   295  223 
Total non-interest income  2,393  2,591   11,133  13,643 
               
Non-interest expense
              
Salaries and benefits
  4,439  4,351   17,655  17,784 
Occupancy and equipment  654  787   2,824  3,105 
Professional fees
  336  761   1,715  2,138 
Outside data processing  328  270   1,159  1,079 
FDIC insurance
  79  105   389  498 
Advertising and promotion  158  354   892  932 
Stationery, printing and supplies  127  135   560  582 
Merger expense
  80  -
   819  -
 
Other
  490  513   1,685  1,816 
Total non-interest expense  6,691  7,276   27,698  27,934 
               
Income before income taxes
  1,711  1,596   7,144  8,269 
Income tax expense
  507  560   2,032  2,502 
Net income
  1,204  1,036   5,112  5,767 
Dividends and accretion on preferred stock  -
  -
   -
  341 
Net income available to common stockholders $1,204 $1,036  $5,112 $5,426 
Net income per common share
              
Basic
 $0.24 $0.21  $1.01 $1.24 
Diluted
 $0.24 $0.21  $1.01 $1.17 
               


Carolina Bank Holdings, Inc.   
Consolidated Financial Highlights    
Fourth  Quarter 2016   
(unaudited)   
   Quarterly  Years Ended
   4th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr    
($ in thousands except for share and per share data)  2016
2016
2016
2016
2015
 2016
 2015
            
EARNINGS           
Net interest income $6,009 5,900 6,029 5,771 6,081  23,709  23,645 
Provision for loan losses $- - - - (200) -  1,085 
Non-interest income $2,393 3,182 3,269 2,289 2,591  11,133  13,643 
Non-interest expense $6,691 6,923 7,454 6,630 7,276  27,698  27,934 
Net income $1,204 1,564 1,243 1,101 1,036  5,112  5,767 
Net income available to common stockholders $1,204 1,564 1,243 1,101 1,036  5,112  5,426 
Basic earnings per common share $0.24 0.31 0.25 0.22 0.21  1.01  1.24 
Diluted earnings per common share $0.24 0.31 0.25 0.22 0.21  1.01  1.17 
Average common shares outstanding  5,047,581 5,044,646 5,038,723 5,036,150 5,008,301  5,041,799  4,389,086 
Average diluted common shares outstanding  5,049,301 5,048,705 5,042,626 5,041,038 5,019,056  5,045,437  4,620,411 
            
PERFORMANCE RATIOS           
Return on average assets *  0.67%0.87%0.71%0.63%0.59% 0.72% 0.84%
Return on average common equity  *  7.26%9.59%7.89%7.14%6.79% 7.98% 9.73%
Net interest margin (fully-tax equivalent) *  3.68%3.60%3.73%3.61%3.79% 3.66% 3.73%
Efficiency ratio (excluding merger expenses)  77.18%73.22%72.89%80.98%83.05% 75.88% 74.18%
Efficiency ratio (excluding mortgage div/merger X)  67.65%64.39%67.83%71.95%75.06% 67.92% 71.72%
# full-time equivalent employees - period end  165 177 187 190 192  165  192 
            
CAPITAL           
Equity to period-end assets  9.40%9.25%9.08%8.88%8.72% 9.40% 8.72%
Common tangible equity to assets  9.40%9.25%9.08%8.88%8.72% 9.40% 8.72%
Tier 1 leverage capital ratio - Bank  10.30%10.10%9.94%9.74%9.71% 10.30% 9.71%
Tier 1 risk-based capital ratio - Bank  12.80%12.35%12.20%12.62%12.09% 12.80% 12.09%
Total risk-based capital ratio - Bank  14.12%13.98%13.82%14.40%13.81% 14.12% 13.81%
Book value per common share $13.13 13.00 12.71 12.45 12.18  13.13  12.18 
            
ASSET QUALITY           
Net loan charge-offs (recoveries) $76 (146)351 (97)1,495  184  1,733 
Net charge-offs (recoveries) to average loans *  0.06%-0.12%0.30%-0.08%1.29% 0.04% 0.37%
Allowance for loan losses $5,688 5,764 5,618 5,969 5,872  5,688  5,872 
Allowance for loan losses to loans held invst.  1.12%1.15%1.18%1.31%1.26% 1.12% 1.26%
Nonperforming loans $3,741 4,392 5,101 3,519 3,110  3,741  3,110 
Performing restructured loans $9,424 9,375 9,486 12,078 9,687  9,424  9,687 
Other real estate owned $3,655 3,914 4,212 4,587 4,592  3,655  4,592 
Nonperforming loans to loans held for investment  0.74%0.87%1.07%0.77%0.67% 0.74% 0.67%
Nonperforming assets to total assets  1.05%1.17%1.32%1.15%1.10% 1.05% 1.10%
            
END OF PERIOD BALANCES           
Total assets $705,330 708,890 706,495 705,704 700,798  705,330  700,798 
Total loans held for investment $507,013 503,226 476,783 455,139 465,804  507,013  465,804 
Total deposits $598,111 601,483 599,148 601,073 607,307  598,111  607,307 
Stockholders' equity $66,315 65,566 64,120 62,687 61,139  66,315  61,139 
            
AVERAGE BALANCES           
Total assets $711,969 712,919 706,633 702,473 692,522  708,520  689,842 
Total earning assets $666,488 669,231 663,082 657,915 646,158  664,200  643,031 
Total loans held for investment $503,185 494,502 470,021 466,301 463,285  483,586  465,163 
Total non interest-bearing demand deposits $147,303 146,848 141,092 129,367 125,279  141,185  118,355 
Common stockholders' equity $66,018 64,855 63,349 61,979 60,522  64,058  54,479 
            
* annualized for all periods presented           
            
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: 
Carolina Bank Holdings, Inc. 
T. Allen Liles, EVP and CFO
Telephone: 336-286-8746
Email: a.liles@carolinabank.com