Southeast Super-Community Bank
Conference
February 3, 2004
Forward-Looking Statements
This presentation may contain, in addition to historical information, various “forward looking statements” that represent our judgment concerning the future and are subject to risks and uncertainties that could cause Carolina Bank Holdings’ actual operating results and financial position to differ materially from those projected in the forward looking statements. Such forward looking statements can be identified by the use of forward looking terminology, such as, “may,” “will,” “expect,” “anticipate,” “estimate,” or “continue,” or the negative thereof or other variations thereof or comparable terminology. We undertake no obligation to update any forward looking statements to reflect events or circumstances arising after the date of this presentation.
Overview
• Opened in November 1996
• Single bank holding company offering traditional banking to individuals and small to medium sized businesses.
• Four branches (3 in Greensboro, 1 in Asheboro)
• Issued 805,000 shares in December 2002
• 1.873 million shares outstanding
• Stock Symbol CLBH ( Nasdaq Small Cap)
• Inside ownership 12.42%
• Management:
– Robert T. Braswell—CEO
– Allen Liles – CFO
– Gunnar N. R. Fromen—Senior Loan Officer
– Daniel Hornfeck – Chief Credit Officer
Vision
2006 Franchise
• Community Bank with
concentration in Greensboro,
Asheboro and adjoining
markets.
• Broad array of value added
products for the commercial
and consumer market.
• Building value for our
shareholders through
profitability, organic growth,
and acquisitions only if they
meet our financial goals and fit
our geographic targets.
2006 Financial Goals
• Assets $350 million +
• ROA > 1%
• ROE >13%
CLBH Market
Piedmont Triad area: Principally Greensboro
Greensboro:
• Largest city in Greensboro/Winston-Salem/High Point MSA which comprises 8 counties and more than 1.25 million people
• Second largest SMSA in North Carolina
• Midway between Washington and Atlanta
CLBH Market Demographics
Guilford North
County Carolina
Median HH Income 2003 $47,433 $47,405
Projected HH Income Change 2003-8 13.80% 13.47%
Population 436,087 8,408,414
Projected change 2003-8 5.89% 7.00%
Top employers: Jefferson Pilot Financial, American Express, Moses Cone Health Systems, R.F. Micro Devices
Deposit Market Share: Guilford County
$ in 000’s 6/30/99 6/30/00 6/30/01 6/30/02 6/30/03
% Share 1.04% 1.55% 1.88% 2.38% 2.46%
CLBH $54,240 $82,082 $107,603 $142,337 $183,569
Deposits
Total $5,221,823 $5,287,513 $5,709,130 $5,988,832 $6,711,122
Deposits
Source:FDIC
Peer Pricing Comparison
Carolina Bank Peer Group
Holdings Median*
Market Value $28.13 million $36.28 million
Price/LTM Core 23.52X 23.74X
Earnings
Price/Book 147.7% 169.2%
Average Daily Volume 2,968 512
(1 Year)
*American Community Bcsh., Waccamaw Bksh., Crescent Financial Corp, First Trust Bank, M&F Bancorp, MidCarolina Fin Corp, New Century Bncp, North State Bncp, Bank of the Carolinas.
Balance Sheet Growth
Assets (29.5%) CAGR
Loans (28.5%) CAGR
Deposits (28.6%) CAGR)
Credit Quality
Net Charge Offs/ Average Loans 1999- 2003
Credit Quality
Non Performing Assets + 90 days / Total Assets
Income Statement
$ in 000’s 2001 2002 2003
Net Interest $3,619 $4,933 $6,260
Income
Provision $391 $685 $692
Non Interest $557 $911 $1,453
Income (Ex.
Securities gains/
write downs)
Non interest $3,386 $4,237 $5,198
Expense
Net Income $402 $601 $1,150
Key Ratios
2001 2002 2003
ROA 0.31% .37% 0.57%
NIM 2.96% 3.17% 3.30%
Non Interest 0.43% 0.56% 0.72%
Income/Average
Assets
Non Interest 2.62% 2.61% 2.58%
Expense/Avg
Assets
Loans and $6,672 $7,576 $7,900
Deposits/EMP
Efficiency 81.1% 73.00% 67.39%
Per Share Data
2001 2002 2003
EPS fully diluted $0.39 $0.55 $0.61
Book Value Per $9.29 $9.93 $10.44
Share (Tangible
and Reported)
Shares 1,032,438 1,086,632 1,884,847
Outstanding
(Average
diluted)
Year End 6.32% 9.66% 8.62%
Equity/Assets
Summary
• Located in the second largest SMSA in North Carolina
• Targeting the most attractive communities for future growth
• Despite the demise of traditional industries in our area, we have achieved strong growth, excellent credit quality and improving profitability.
• Highly attractive well-capitalized community bank
• Strong, seasoned management team (101 years of experience)
• Significant growth potential in EPS and market share
