Carolina Bank (CLBH) 8-K Regulation FD Disclosure

Southeast 2007 SuperCommunity

Southeast 2007 SuperCommunity

Bank Conference

Bank Conference

February 14, 2007

Exhibit 99.1

Forward-Looking Statements

Forward-Looking Statements

This

This

presentation

presentation

may

may

contain,

contain,

in

in

addition

addition

to

to

historical

historical

information,

information,

various

various

“forward-looking

“forward-looking

statements”

statements”

that

that

represent

represent

our

our

judgment

judgment

concerning

concerning

the

the

future

future

and

and

are

are

subject

subject

to

to

risks

risks

and

and

uncertainties

uncertainties

that

that

could

could

cause

cause

the

the

actual

actual

operating

operating

results

results

and

and

financial

financial

position

position

of

of

Carolina

Carolina

Bank

Bank

Holdings

Holdings

Inc.

Inc.

to

to

differ

differ

materially

materially

from

from

those

those

projected

projected

in

in

the

the

forward-looking

forward-looking

statements.

statements.

Such

Such

forward-looking

forward-looking

statements

statements

can

can

be

be

identified

identified

by

by

the

the

use

use

of

of

forward-looking

forward-looking

terminology,

terminology,

such

such

as,

as,

“may,”

“may,”

“will,”

“will,”

“expect,”

“expect,”

“anticipate,”

“anticipate,”

“estimate,”

“estimate,”

or

or

“continue,”

“continue,”

or

or

the

the

negative

negative

thereof,

thereof,

or

or

other

other

variations

variations

thereof

thereof

or

or

comparable

comparable

terminology.

terminology.

For

For

a

a

discussion

discussion

of

of

factors

factors

that

that

may

may

cause

cause

such

such

forward-looking

forward-looking

statements

statements

to

to

differ

differ

materially

materially

from

from

actual

actual

results,

results,

please

please

refer

refer

to

to

Carolina

Carolina

Bank

Bank

Holdings’

Holdings’

most

most

recent

recent

documents

documents

filed

filed

with

with

the

the

Securities

Securities

and

and

Exchange

Exchange

Commission.

Commission.

We

We

undertake

undertake

no

no

obligation

obligation

to

to

update

update

any

any

forward-looking

forward-looking

statements

statements

to

to

reflect

reflect

events

events

or

or

circumstances

circumstances

arising

arising

after

after

the

the

date

date

of

of

this

this

presentation.

presentation.

Corporate Overview

Corporate Overview

•

•

Headquartered in Greensboro, NC

Headquartered in Greensboro, NC

•

•

Opened November 1996

Opened November 1996

•

•

Serving 3 counties of Piedmont Triad

Serving 3 counties of Piedmont Triad

•

•

Six branches: 3 in Greensboro,1 in Asheboro, 1 in

Six branches: 3 in Greensboro,1 in Asheboro, 1 in

Burlington, 1 in High Point

Burlington, 1 in High Point

•

•

Assets of $412 million at December 31, 2006

Assets of $412 million at December 31, 2006

CLBH Market Statistics

CLBH Market Statistics

•

•

Initial public offering November 1996

Initial public offering November 1996

•

•

Secondary offering in December 2002

Secondary offering in December 2002

•

•

Listed on NASDAQ Capital Market: CLBH

Listed on NASDAQ Capital Market: CLBH

•

•

Market capitalization: $44.6 million*

Market capitalization: $44.6 million*

•

•

No. shares outstanding: 2.7 million

No. shares outstanding: 2.7 million

•

•

Trading volume: 2,524 shares (avg. daily 3 month)

Trading volume: 2,524 shares (avg. daily 3 month)

•

•

Institutional ownership: 21.4%

Institutional ownership: 21.4%

•

•

Insider ownership: 8.78%

Insider ownership: 8.78%

*As of Feb. 1, 2007

Strategic Priorities

Strategic Priorities

•

•

Expansion from Greensboro hub to communities in

Expansion from Greensboro hub to communities in

Piedmont Triad

Piedmont Triad

•

•

Growth of revenue base through:

Growth of revenue base through:

–

–

Business-based lending strategy

Business-based lending strategy

–

–

Consumer and business core deposit growth

Consumer and business core deposit growth

–

–

Diversification of non-interest income

Diversification of non-interest income

•

•

Maintain sound asset quality

Maintain sound asset quality

•

•

Manage capital to support growth and enhance

Manage capital to support growth and enhance

shareholder value

shareholder value

Strong Balance Sheet Growth

Strong Balance Sheet Growth

* CAGR = Compound annual growth rate 2001-2006

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2001

2002

2003

2004

2005

2006

5-Year CAGRs:

Assets:   

22.1%

Loans:    

23.7%

Deposits:  23.7%

(thousands)

$0.27

$0.38

$0.42

$0.59

$0.73

$1.00

2001

2002

2003

2004

2005

2006

Consistent Earnings Growth

Consistent Earnings Growth

Diluted Earnings Per Share

5-Year CAGR* = 29.9%

*CAGR = Compound annual growth rate 2001-2006

The Management Team: 

Seasoned, Experienced

The Management Team: 

Seasoned, Experienced

12

12

36

36

25

25

32

32

Years in

Years in

Banking

Banking

8

8

EVP & Senior

EVP & Senior

Lending Officer

Lending Officer

Gunnar N.R. Fromen

Gunnar N.R. Fromen

3

3

SVP & Chief Credit

SVP & Chief Credit

Officer

Officer

Daniel D. Hornfeck

Daniel D. Hornfeck

5

5

EVP & CFO

EVP & CFO

T. Allen Liles

T. Allen Liles

10

10

President & CEO

President & CEO

Robert T. Braswell

Robert T. Braswell

Years with

Years with

CLBH

CLBH

Title

Title

Insider ownership is 8.78%

Carolina Bank Market:

The Piedmont Triad

Carolina Bank Market:

The Piedmont Triad

•

•

Greensboro: 3 branches

Greensboro: 3 branches

–

–

The logistical hub for the Piedmont

The logistical hub for the Piedmont

–

–

3

3rd

rd

largest city in NC; population of

largest city in NC; population of

240,955

240,955

���

•

Asheboro:

Asheboro: Opened in March 2004

Opened in March 2004

•

•

Burlington:

Burlington:

–

–

LPO opened in 3Q 2005

LPO opened in 3Q 2005

–

–

Deposit-taking office opened in 2006

Deposit-taking office opened in 2006

–

–

Bank-owned facility to open in 2007

Bank-owned facility to open in 2007

–

–

Strategically located halfway

Strategically located halfway

between the Research Triangle and

between the Research Triangle and

the Triad

the Triad

•

•

High Point:

High Point: Opened in January 2007

Opened in January 2007

A Transitioning Economy

A Transitioning Economy

•

•

From an Old Guard Fortune 500 economy based on textiles,

From an Old Guard Fortune 500 economy based on textiles,

insurance and furniture

insurance and furniture

•

•

Transitioning to a technology-based and value-added manufacturing

Transitioning to a technology-based and value-added manufacturing

economic base

economic base

•

•

Business-friendly environment: low taxes, building costs & wages

Business-friendly environment: low taxes, building costs & wages

•

•

Hub for surface transportation; more highways converge on

Hub for surface transportation; more highways converge on

Greensboro than any other region in North Carolina

Greensboro than any other region in North Carolina

•

•

FedEx is building a major Mid-Atlantic freight hub in Greensboro;

FedEx is building a major Mid-Atlantic freight hub in Greensboro;

attracts distribution & logistics facilities to the area

attracts distribution & logistics facilities to the area

•

•

Honda Aircraft just announced plans to manufacture its advanced

Honda Aircraft just announced plans to manufacture its advanced

light jet, HondaJet, at a new plant adjacent to the Piedmont triad

light jet, HondaJet, at a new plant adjacent to the Piedmont triad

Airport.

Airport.

A Regional Higher-Education Hub:

Colleges in Carolina Bank’s Market

A Regional Higher-Education Hub:

Colleges in Carolina Bank’s Market

Greensboro

Greensboro

1,200

1,200

Greensboro College

Greensboro College

Greensboro

Greensboro

2,700

2,700

Guilford College

Guilford College

Greensboro

Greensboro

(Jamestown)

(Jamestown)

9,800

9,800

Guilford Technical

Guilford Technical

Community College

Community College

Greensboro / Elon

Greensboro / Elon

5,000

5,000

Elon University & Law

Elon University & Law

School

School

Greensboro

Greensboro

11,100

11,100

NC A&T State University

NC A&T State University

Greensboro

Greensboro

16,100

16,100

UNC Greensboro

UNC Greensboro

Location

Location

Enrollment

Enrollment

Name

Name

Greensboro: 

Moving Up in Market Share

Greensboro: 

Moving Up in Market Share

79.5%

79.5%

77.5%

77.5%

Total:

Total:

4.9%

4.9%

5.3%

5.3%

Carolina Bank Holdings, Inc.

Carolina Bank Holdings, Inc.

13.7%

13.7%

12.5%

12.5%

Bank of America

Bank of America

13.2%

13.2%

12.9%

12.9%

SunTrust Banks Inc

SunTrust Banks Inc

17.6%

17.6%

18.2%

18.2%

BB&T Corp.

BB&T Corp.

35.0%

35.0%

33.9%

33.9%

Wachovia Corp

Wachovia Corp

2005 Market

2005 Market

Share

Share

2006 Market

2006 Market

Share

Share

Banking in Greensboro:

Banking in Greensboro:

Growth of Core Deposits**

Growth of Core Deposits**

$0

$50

$100

$150

$200

2001

2002

2003

2004

2005

2006

Lower-Cost Deposits*

Retail CDs

Jumbo CDs

(millions)

*Lower

cost

=

Transaction

accounts

+

MM

+

savings

**Core

deposits

=

Lower

cost 

deposits + retail CDs   ***CAGR = Compound annual growth rate 2001-2006

5-Year CAGRs:***

5-Year CAGRs:***

Lower-Cost Deposits*    27.8%

Lower-Cost Deposits*    27.8%

Core Deposits**              23.1%

Core Deposits**              23.1%

Loan Portfolio

Loan Portfolio

•

•

73%

73%

of loan portfolio is

of loan portfolio is

prime-based

prime-based

•

•

80% is secured by RE

80% is secured by RE

•

•

Local decision-making

Local decision-making

•

•

Commercial lenders

Commercial lenders

average >23 years

average >23 years

•

•

Each lender has specific

Each lender has specific

signature authority based

signature authority based

on experience and skill set

on experience and skill set

•

•

Approval is multiple one-up

Approval is multiple one-up

C&I

18.5%

Consumer, etc

1.3%

Comm. RE

38.1%

Construction

19.8%

Res. RE

22.3%

Total Loans = $315.7 MM

at Dec. 31, 2006

Asset Quality

Asset Quality

1.26%

1.25%

1.25%

1.26%

1.22%

0.18%

0.38%

0.06%

0.13%

0.22%

0.32%

1.23%

2001

2002

2003

2004

2005

2006

Net Charge Offs/Average Loans

Loan Loss Reserve/Gross Loans

Asset Quality

Asset Quality

0.80%

0.59%

0.57%

0.29%

0.17%

0.36%

0.68%

0.00%

0.50%

1.00%

1.50%

2.00%

2001

2002

2003

2004

2005

2006

Non-Performing Assets + 90 days/ Total Assets

$2.5 million restructured loan.

Year-Over-Year Performance

Year-Over-Year Performance

-

-

1.56%

1.56%

59.48%

59.48%

60.42%

60.42%

Efficiency Ratio

Efficiency Ratio

+ 0.61%

+ 0.61%

3.30%

3.30%

3.28%

3.28%

NIM

NIM

+ 15.9%

+ 15.9%

0.73%

0.73%

0.63%

0.63%

ROAA

ROAA

+ 25.2%

+ 25.2%

11.63%

11.63%

9.29%

9.29%

ROAE

ROAE

+ 20.2%

+ 20.2%

315.7

315.7

262.6

262.6

Loans HFI ($MM)

Loans HFI ($MM)

+ 37.0%

+ 37.0%

$1.00

$1.00

$0.73

$0.73

Diluted EPS

Diluted EPS

+ 37.9%

+ 37.9%

2,811

2,811

2,037

2,037

Net Income ($000)

Net Income ($000)

% Change

% Change

2006

2006

2005

2005

Fourth Quarter Performance

Fourth Quarter Performance

+ 0.26%

+ 0.26%

62.22%

62.22%

62.06%

62.06%

Efficiency Ratio

Efficiency Ratio

-

-

6.16%

6.16%

3.20%

3.20%

3.41%

3.41%

NIM

NIM

-

-

12.5%

12.5%

0.56%

0.56%

0.64%

0.64%

ROAA

ROAA

-

-

11.9%

11.9%

8.68%

8.68%

9.85%

9.85%

ROAE

ROAE

+ 0.0%

+ 0.0%

$0.20

$0.20

$0.20

$0.20

Diluted EPS

Diluted EPS

+ 0.0%

+ 0.0%

556

556

555

555

Net Income ($000)

Net Income ($000)

% Change

% Change

2006

2006

2005

2005

Net Income

Net Income

$2,811

$2,037

$1,633

$1,150

$601

$402

2001

2002

2003

2004

2005

2006

(000s)

5-Year CAGR* = 47.6%

*CAGR= Compound annual growth rate 2001-2006

Total Revenue

Total Revenue

$3,619

$4,934

$6,261

$8,315

$10,228

$12,188

$557

$1,354

$1,263

$1,230

$1,773

$911

$0

$4,000

$8,000

$12,000

$16,000

2001

2002

2003

2004

2005

2006

Net Interest Income

Non-interest Income*

(000)

5-Year Total Revenue CAGR* = 27.3%

*CAGR= Compound annual growth rate 2001-2006

Efficiency Ratio

Efficiency Ratio

59.48%

60.42%

66.15%

67.39%

72.49%

81.10%

2001

2002

2003

2004

2005

2006

Managing Capital to Support Growth

Managing Capital to Support Growth

1996:  Raised $6.5MM in IPO

1996:  Raised $6.5MM in IPO

2001:  Added $3.1 million floating rate trust preferred

2001:  Added $3.1 million floating rate trust preferred

2002:  Raised $8.5 million in secondary offering of common stock

2002:  Raised $8.5 million in secondary offering of common stock

2004:  Issued $10.3 million floating rate trust preferred; replaced

2004:  Issued $10.3 million floating rate trust preferred; replaced

$3.1 million issue of 2001

$3.1 million issue of 2001

•

•

Stock dividends:  10% in 2000 & 2001, 20% in 2004 & 2005

Stock dividends:  10% in 2000 & 2001, 20% in 2004 & 2005

•

•

No cash dividends or buybacks

No cash dividends or buybacks

•

•

Capital available to support ~ $135 million of additional growth

Capital available to support ~ $135 million of additional growth

and remain well-capitalized

and remain well-capitalized

•

•

Goal for 2007 is asset & loan growth in low teens

Goal for 2007 is asset & loan growth in low teens

CLBH:

An Attractive Investment Opportunity

CLBH:

An Attractive Investment Opportunity

LTM EPS

LTM EPS

$1.00

$1.00

LTM EPS Growth

LTM EPS Growth

+37.0%

+37.0%

Price*/LTM EPS              16.4x

Price*/LTM EPS              16.4x

PEG Ratio

PEG Ratio

0.44

0.44

Price*/Book value         177.7%

Price*/Book value         177.7%

Price as of 02/01/07 = $16.40

Book

value as of 12/31/06 = $9.52 per share

Investment Summary

Investment Summary

•

•

A growing and attractive market

A growing and attractive market

•

•

A strengthening economy

A strengthening economy

•

•

Stable net interest margin

Stable net interest margin

•

•

Improving asset quality

Improving asset quality

•

•

Seasoned management team

Seasoned management team

•

•

Attractive valuation

Attractive valuation

~ Community banking strategy

~ Community banking strategy

& superior execution ~

& superior execution ~

Differentiate Carolina Bank from large regional competitors

Differentiate Carolina Bank from large regional competitors