EXHIBIT 99.1
PRESS RELEASE
For Immediate Release
For Further Information Contact:
Robert T. Braswell, President
Carolina Bank Holdings, Inc.
2604 Lawndale Drive
Greensboro, NC 27108
(336) 288-1898
GREENSBORO, N.C., April 14 /PRNewswire-FirstCall/ -- Carolina Bank Holdings,
Inc. (Nasdaq: CLBH - News) announced 2003 first-quarter results. Characterizing
the report, Robert T. Braswell, President and Chief Executive Officer stated,
"We could not be more pleased with the continued strong growth and improving
profitability of this period, especially considering the external factors of war
and continued economic malaise that grip our country." Carolina Bank Holdings,
Inc. operates Carolina Bank, Greensboro, NC as a wholly-owned subsidiary.
Compared to the quarter ended March 2002, the company reported net loans
increased 27 percent to $141,500,000; deposits increased 30 percent to
$161,743,000 and total assets increased 29 percent to $194,931,000. Over the
same period, net income increased in actual dollars, 164% to $230,000; earnings
per share increased 50% to $0.12 per share. The increase in earnings per share
did not increase proportionally because the company added 805,000 new shares
from a successful secondary offering in December 2002. Those new shares were not
present in March 31, 2002 numbers.
Braswell also stated, "The company has not been immune from the effects of a
weak economy. Consequently, we have experienced a temporary increase in problem
assets. Compared with the first quarter of 2002, non-performing assets increased
from 0.57 percent to 0.81 percent. Accordingly, the company has increased the
allowance for loan losses from 1.30 percent to 1.33 percent. For the quarter
ended March 31, 2003, the bank had net recoveries of 0.02%."
The Asheboro loan production office continues to do well. The company has
acquired a premier site in Asheboro, NC for the next full-service banking
office. The current Asheboro office will be incorporated into the new facility.
Further, the company expects to open that office in the fourth quarter of this
year. Future sites for expansion in Greensboro are under evaluation, with
expectations of an opening mid 2004.
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 table, "Selected Financial Information."
It is an integral part of this communication.
CAROLINA BANK HOLDINGS, INC.
Selected Financial Information
2003 2002
(in thousands, except First Fourth Third Second First
per share) Quarter Quarter Quarter Quarter Quarter
OPERATING INCOME SUMMARY
Interest income $ 2,341 $ 2,376 $ 2,319 $ 2,237 $ 2,153
Interest expense 977 1,021 1,054 981 1,095
Net interest income 1,364 1,355 1,265 1,256 1,058
Provision for loan
losses 237 190 175 215 105
Non-interest inc. before
securities gns 371 335 268 167 142
Securities gains
(losses),net 53 - 20 - -
Non-interest expenses 1,222 1,169 1,079 1,053 966
Income before income
taxes 329 331 299 155 129
Income taxes 99 91 125 55 42
Net income $ 230 $ 240 $ 174 $ 100 $ 87
PER COMMON SHARE
Basic $ 0.12 $ 0.20 $ 0.17 $ 0.10 $ 0.08
Diluted 0.12 0.20 0.16 0.10 0.08
Book Value (on
outstanding shares) 10.05 9.93 9.88 9.65 9.29
ASSET QUALITY
Allowance for loan
losses $ 1,904 $ 1,661 $ 1,626 $ 1,531 $ 1,472
Non-performing loans 1,384 37 395 753 858
Repossed assets 199 648 478 - -
Net loan chargeoffs
(recoveries) (6) 155 80 156 2
Allowance for loan
losses to loans 1.33% 1.25% 1.26% 1.25% 1.30%
Non-performing assets to
total assets 0.81% 0.36% 0.51% 0.45% 0.57%
AVERAGE BALANCES
Loans $141,065 $130,888 $126,628 $117,913 $110,355
Earning assets $181,565 $168,176 161,663 149,459 142,382
Total assets $192,565 $176,790 169,685 156,829 150,044
AT PERIOD END
Loans before allowance $143,374 $133,045 $128,775 $122,527 $112,852
Total assets 194,931 189,871 170,935 167,573 151,639
Deposits 161,743 154,878 145,564 142,254 124,396
Stockholders' Equity 18,549 18,344 10,287 10,049 9,592
RATIOS ANNUALIZED
Net yield - avg interest
earning assets 3.00% 3.22% 3.13% 3.36% 2.97%
Return on average assets 0.48% 0.54% 0.41% 0.26% 0.23%
Net charge-offs to
average loans -0.02% 0.47% 0.25% 0.53% 0.01%
Efficiency ratio (excl
security gains) 0.70 0.69 0.70 0.74 0.81
Note: Quarterly information is unaudited.
CAROLINA BANK HOLDINGS, INC.
Selected Financial Information
Years Ended
(in thousands, except per share) 2002 2001 2000
OPERATING INCOME SUMMARY
Interest income $ 9,085 $ 9,016 $ 8,002
Interest expense 4,151 5,397 4,464
Net interest income 4,934 3,619 3,538
Provision for loan losses 685 391 332
Non-interest inc. before securities
gns 912 557 280
Securities gains (losses),net 20 129 -
Non-interest expenses 4,267 3,386 2,642
Income before income taxes 914 528 844
Income taxes 313 126 302
Net income $ 601 $ 402 $ 542
PER COMMON SHARE
Basic $ 0.56 $ 0.39 $ 0.53
Diluted 0.55 0.39 0.53
Book Value (on outstanding shares) 9.93 9.29 8.88
ASSET QUALITY
Allowance for loan losses $ 1,661 $ 1,369 $ 1,187
Non-performing loans 37 443 254
Repossed assets 648 - -
Net loan chargeoffs (recoveries) 393 209 51
Allowance for loan losses to loans 1.25% 1.26% 1.40%
Non-performing assets to total assets 0.36% 0.29% 0.23%
AVERAGE BALANCES
Loans $121,446 $ 95,602 $ 71,497
Earning assets 155,420 122,273 90,743
Total assets 163,337 129,022 95,350
AT PERIOD END
Loans before allowance $133,045 $108,882 $ 84,815
Total assets 189,871 151,515 112,498
Deposits 154,878 124,654 97,331
Stockholders' Equity 18,344 9,590 9,168
RATIOS ANNUALIZED
Net yield - avg interest earning
assets 3.17% 2.96% 3.90%
Return on average assets 0.37% 0.31% 0.57%
Net charge-offs to average loans 0.32% 0.22% 0.07%
Efficiency ratio (excl security
gains) 0.73 0.81 0.69
Note: Quarterly information is unaudited.
***End of Release***