Carolina Bank Holdings Inc. (CLBH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Carolina Bank Holdings Inc. has a market cap of $15.3 million; its shares were traded at around $4.5509 with and P/S ratio of 0.4. Carolina Bank Holdings Inc. had an annual average earning growth of 2.1% over the past 5 years.
Liabilities. Total deposits increased by $8.3 million, or 1.3%, from $617.5 million at December 31, 2009, to $625.7 million at March 31, 2010. Time deposits increased $15.6 million and transaction accounts declined $7.4 million during the first quarter of 2010. We plan to continue our efforts to gain deposits through quality service, convenient locations, and competitive pricing. Our continued branching activities are designed to enhance customer convenience and related deposit gathering activities as well as provide new sources for loans. While deposit growth is an ongoing goal, wholesale sources of funding such as Federal Home Loan Bank advances and repurchase borrowings, may be utilized where cost beneficial and when necessary to meet liquidity requirements. Federal Home Loan Bank advances declined $2.0 million during the first three months to $5.8 million at March 31, 2010 due to adequate deposit growth. We had approximately $21.0 million in out-of-market time deposits from other institutions and $42.6 million in brokered deposits at March 31, 2010, an increase of $9.2 million in these two types of accounts from December 31, 2009.
General. Net income for first quarter of 2010 was $299,000 compared to $665,000 in the first quarter of 2009. Net income available to common stockholders for the three months ended March 31, 2010 and 2009, amounted to $14,000, or $0.00 per diluted share and $411,000, or $0.12 per diluted share, respectively. Net income available to common stockholders represents net income less preferred stock dividends and related discount accretion. The decrease in net income available to common shareholders was primarily due to a higher provision for loan losses, higher repossessed asset losses, and repossessed asset impairment losses during the first quarter of 2010. The seasonally
Non-interest expense. Total non-interest expense amounted to $5,278,000 and $4,472,000 for the three months ended March 31, 2010 and 2009, respectively. Excluding impairment charges in both periods and increased FDIC insurance premiums of $160,000, non-interest expenses increased $390,000, or 9.2% in 2010 from 2009. Salaries and employee benefits increased 5.4% or $131,000. Other expenses rose $293,000, or 110.6%, to $558,000 due to higher real estate owned expenses, higher franchise taxes related to increased capital, and warranty provisions related to wholesale mortgage production. Impairment charges of $507,000 in the first quarter of 2010 were related to three repossessed assets.
Non-performing assets, composed of foreclosed real estate, repossessions, non-accrual loans and restructured loans, totaled $31,143,000 at March 31, 2010, compared to $28,127,000 at December 31, 2009. Non-performing assets, as a percentage of total assets, was 4.42% at March 31, 2010, compared to 4.04% at December 31, 2009. There were no loans 90 days or more past due and still accruing interest at March 31, 2010 or at December 31, 2009. Foreclosed real estate and other repossessed assets were $11,507,000 at March 31, 2010 and $13,964,000 at December 31, 2009. The elevated level of non-performing assets at March 31, 2010 is related to the declining economic conditions in our lending markets. The unemployment rate in North Carolina increased to 11.1% in March 2010 from 8.5% in December 2008. A large portion of our loans are made to businesses and real estate developers and are secured by real estate. Due to slowing economic conditions, it has been difficult for borrowers to sell businesses or real estate properties as needed to pay off their loans.
Our allowance for loan losses is composed of two parts, a specific portion related to non-performing and problem loans and a general section related to performing loans. The specific portion of our allowance for loan losses, which relates to non-performing loans, increased to $5,285,000 at March 31, 2010 from $4,431,000 at December 31, 2009 as the level of non-performing loans increased $5,492,000 during the same period to $19,635,000 at March 31, 2010. The general section of our allowance for loan losses decreased to $5,412,000 at March 31, 2010 from $5,650,000 at December 31, 2009 because performing loans declined during the first quarter of 2010. The general section of our allowance applies to performing loans and was determined by applying estimated loss ratios inherent in the loan portfolio, ranging from 0.20% on loans secured by stocks and deposits to 10.00% on unsecured consumer revolving loans, to categories of performing loans at each period end. The loss ratios in the general section of the allowance were increased for construction and nonfarm nonresidential loans while loss ratios for commercial and industrial loans and multifamily loans were decreased due to historical loss trends. The general section also includes specific allowances for watch list loans which are still performing but carry a higher degree of risk because of declining credit factors. Watch list loans declined approximately $4 million during the first quarter of 2010.
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Carolina Bank Holdings Inc. has a market cap of $15.3 million; its shares were traded at around $4.5509 with and P/S ratio of 0.4. Carolina Bank Holdings Inc. had an annual average earning growth of 2.1% over the past 5 years.
Highlight of Business Operations:
Assets. Our total assets increased by $7.0 million, or 1.0%, from $697.1 million at December 31, 2009, to $704.1 million at March 31, 2010. During the three months ended March 31, 2010, cash and due from banks and interest-bearing deposits with banks increased by $6.0 million, while investment securities decreased by $1.6 million. Loans held for sale increased 5.3% during the first three months of 2010 to $30.9 million at March 31, 2010 due to continued strong originations by our wholesale loan division. Loans held for investment increased by $3.4 million or 0.65% during the first three months of 2010. We experienced slowing commercial and consumer loan demand in our primary lending markets, Guilford, Randolph, Alamance and Forsyth Counties, North Carolina in the first quarter of 2010 and second half of 2009.Liabilities. Total deposits increased by $8.3 million, or 1.3%, from $617.5 million at December 31, 2009, to $625.7 million at March 31, 2010. Time deposits increased $15.6 million and transaction accounts declined $7.4 million during the first quarter of 2010. We plan to continue our efforts to gain deposits through quality service, convenient locations, and competitive pricing. Our continued branching activities are designed to enhance customer convenience and related deposit gathering activities as well as provide new sources for loans. While deposit growth is an ongoing goal, wholesale sources of funding such as Federal Home Loan Bank advances and repurchase borrowings, may be utilized where cost beneficial and when necessary to meet liquidity requirements. Federal Home Loan Bank advances declined $2.0 million during the first three months to $5.8 million at March 31, 2010 due to adequate deposit growth. We had approximately $21.0 million in out-of-market time deposits from other institutions and $42.6 million in brokered deposits at March 31, 2010, an increase of $9.2 million in these two types of accounts from December 31, 2009.
General. Net income for first quarter of 2010 was $299,000 compared to $665,000 in the first quarter of 2009. Net income available to common stockholders for the three months ended March 31, 2010 and 2009, amounted to $14,000, or $0.00 per diluted share and $411,000, or $0.12 per diluted share, respectively. Net income available to common stockholders represents net income less preferred stock dividends and related discount accretion. The decrease in net income available to common shareholders was primarily due to a higher provision for loan losses, higher repossessed asset losses, and repossessed asset impairment losses during the first quarter of 2010. The seasonally
Non-interest expense. Total non-interest expense amounted to $5,278,000 and $4,472,000 for the three months ended March 31, 2010 and 2009, respectively. Excluding impairment charges in both periods and increased FDIC insurance premiums of $160,000, non-interest expenses increased $390,000, or 9.2% in 2010 from 2009. Salaries and employee benefits increased 5.4% or $131,000. Other expenses rose $293,000, or 110.6%, to $558,000 due to higher real estate owned expenses, higher franchise taxes related to increased capital, and warranty provisions related to wholesale mortgage production. Impairment charges of $507,000 in the first quarter of 2010 were related to three repossessed assets.
Non-performing assets, composed of foreclosed real estate, repossessions, non-accrual loans and restructured loans, totaled $31,143,000 at March 31, 2010, compared to $28,127,000 at December 31, 2009. Non-performing assets, as a percentage of total assets, was 4.42% at March 31, 2010, compared to 4.04% at December 31, 2009. There were no loans 90 days or more past due and still accruing interest at March 31, 2010 or at December 31, 2009. Foreclosed real estate and other repossessed assets were $11,507,000 at March 31, 2010 and $13,964,000 at December 31, 2009. The elevated level of non-performing assets at March 31, 2010 is related to the declining economic conditions in our lending markets. The unemployment rate in North Carolina increased to 11.1% in March 2010 from 8.5% in December 2008. A large portion of our loans are made to businesses and real estate developers and are secured by real estate. Due to slowing economic conditions, it has been difficult for borrowers to sell businesses or real estate properties as needed to pay off their loans.
Our allowance for loan losses is composed of two parts, a specific portion related to non-performing and problem loans and a general section related to performing loans. The specific portion of our allowance for loan losses, which relates to non-performing loans, increased to $5,285,000 at March 31, 2010 from $4,431,000 at December 31, 2009 as the level of non-performing loans increased $5,492,000 during the same period to $19,635,000 at March 31, 2010. The general section of our allowance for loan losses decreased to $5,412,000 at March 31, 2010 from $5,650,000 at December 31, 2009 because performing loans declined during the first quarter of 2010. The general section of our allowance applies to performing loans and was determined by applying estimated loss ratios inherent in the loan portfolio, ranging from 0.20% on loans secured by stocks and deposits to 10.00% on unsecured consumer revolving loans, to categories of performing loans at each period end. The loss ratios in the general section of the allowance were increased for construction and nonfarm nonresidential loans while loss ratios for commercial and industrial loans and multifamily loans were decreased due to historical loss trends. The general section also includes specific allowances for watch list loans which are still performing but carry a higher degree of risk because of declining credit factors. Watch list loans declined approximately $4 million during the first quarter of 2010.
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