Carolina Bank Holdings Inc. (CLBH, Financial) filed Quarterly Report for the period ended 2009-09-30.
CAROLINA BANK HOLDING specializes in lending to entrepreneur-owned businesses and professional associations. Carolina Bank offers an array of value-priced banking products and a seasoned, professional corps of commercial bankers. A hallmark of the bank is fast, responsive decision-making. Customers may access their accounts with a 24-hour telephone banking system and though the Internet. The bank provides customers free ATM access by rebating foreign ATM transaction costs. Carolina Bank Holdings Inc. has a market cap of $12.2 million; its shares were traded at around $3.59 with a P/E ratio of 13.9 and P/S ratio of 0.4. Carolina Bank Holdings Inc. had an annual average earning growth of 17% over the past 5 years.
Liabilities. Total deposits increased by $96.8 million, or 19.4%, from $498.1 million at December 31, 2008, to $594.9 million at September 30, 2009. NOW, money market and savings accounts increased $112.3 million while time deposits declined $22.3 million during the first nine months of 2009. 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 $49.7 million during the first nine months to $7.2 million at September 30, 2009 due to strong deposit growth. We had approximately $23.7 million in out-of-market time deposits from other institutions and $38.3 million in brokered deposits at September 30, 2009, an increase of $0.6 million in these two types of accounts from December 31, 2008.
General. Net income for third quarter of 2009 was $169,000 compared to $704,000 in the third quarter of 2008. Net income (loss) available to common stockholders for the three months ended September 30, 2009 and 2008, amounted to $(108,000), or $(0.03) per diluted share and $704,000, or $0.21 per diluted share, respectively. Net income (loss) 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 and
General. Net income for the nine months ended September 30, 2009 and 2008, amounted to $1,169,000 and $2,014,000, respectively. Net income available to common stockholders for the nine months ended September 30, 2009 and 2008, amounted to $354,000, or $0.10 per diluted share and $2,014,000, or $0.49 per diluted share, respectively. The decrease in net income available to common shareholders was primarily due to a higher provision for loan losses and higher repossessed asset losses as credit conditions and real estate values deteriorated in our markets during 2009. An impairment of a marketable security of $850,000 during 2009 also contributed to the decline in net income.
Non-interest expense. Total non-interest expense amounted to $14,832,000 for the nine months ended September 30, 2009, as compared to $10,127,000 for the nine months ended September 30, 2008, an increase of 46.6%. Excluding an impairment charge on an investment security of $850,000 and increased FDIC insurance premiums of $602,000, non-interest expenses increased $3,253,000, or 32.1% in 2009 from 2008. Higher expenses resulted primarily from growth in our wholesale mortgage division, from our new corporate headquarters and banking branch in downtown Greensboro, and from an expanded office in Winston-Salem.
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 $1,623,000 at September 30, 2009 from $840,000 at December 31, 2008 as the level of non-performing loans increased $8,751,000 during the same period to $14,407,000 at September 30, 2009. The general section of our allowance for loan losses was $5,415,000 at September 30, 2009 and $4,920,000 at December 31, 2008. 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 0.25% on loans secured by stocks and deposits to 6.00% 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 revolving residential lines and nonfarm nonresidential loans due to increased charge-offs in these categories during 2009. 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.
Read the The complete Report
CAROLINA BANK HOLDING specializes in lending to entrepreneur-owned businesses and professional associations. Carolina Bank offers an array of value-priced banking products and a seasoned, professional corps of commercial bankers. A hallmark of the bank is fast, responsive decision-making. Customers may access their accounts with a 24-hour telephone banking system and though the Internet. The bank provides customers free ATM access by rebating foreign ATM transaction costs. Carolina Bank Holdings Inc. has a market cap of $12.2 million; its shares were traded at around $3.59 with a P/E ratio of 13.9 and P/S ratio of 0.4. Carolina Bank Holdings Inc. had an annual average earning growth of 17% over the past 5 years.
Highlight of Business Operations:
Assets. Our total assets increased by $60.2 million, or 9.8%, from $616.6 million at December 31, 2008, to $676.8 million at September 30, 2009. During the nine months ended September 30, 2009, cash and due from banks increased by $25.3 million, while investment securities decreased by $5.7 million. Loans held for sale increased 30.4% during the first nine months of 2009 to $25.0 million at September 30, 2009 due to strong originations by our wholesale loan division. Loans held for investment increased by $29.4 million or 5.9% during the first nine months of 2009. We experienced good commercial and consumer loan demand in our primary lending markets, Guilford, Randolph, Alamance and Forsyth Counties, North Carolina in the first half of 2009. Loans held for investment declined slightly during the third quarter of 2009, primarily due to an increased focus on credit issues.Liabilities. Total deposits increased by $96.8 million, or 19.4%, from $498.1 million at December 31, 2008, to $594.9 million at September 30, 2009. NOW, money market and savings accounts increased $112.3 million while time deposits declined $22.3 million during the first nine months of 2009. 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 $49.7 million during the first nine months to $7.2 million at September 30, 2009 due to strong deposit growth. We had approximately $23.7 million in out-of-market time deposits from other institutions and $38.3 million in brokered deposits at September 30, 2009, an increase of $0.6 million in these two types of accounts from December 31, 2008.
General. Net income for third quarter of 2009 was $169,000 compared to $704,000 in the third quarter of 2008. Net income (loss) available to common stockholders for the three months ended September 30, 2009 and 2008, amounted to $(108,000), or $(0.03) per diluted share and $704,000, or $0.21 per diluted share, respectively. Net income (loss) 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 and
General. Net income for the nine months ended September 30, 2009 and 2008, amounted to $1,169,000 and $2,014,000, respectively. Net income available to common stockholders for the nine months ended September 30, 2009 and 2008, amounted to $354,000, or $0.10 per diluted share and $2,014,000, or $0.49 per diluted share, respectively. The decrease in net income available to common shareholders was primarily due to a higher provision for loan losses and higher repossessed asset losses as credit conditions and real estate values deteriorated in our markets during 2009. An impairment of a marketable security of $850,000 during 2009 also contributed to the decline in net income.
Non-interest expense. Total non-interest expense amounted to $14,832,000 for the nine months ended September 30, 2009, as compared to $10,127,000 for the nine months ended September 30, 2008, an increase of 46.6%. Excluding an impairment charge on an investment security of $850,000 and increased FDIC insurance premiums of $602,000, non-interest expenses increased $3,253,000, or 32.1% in 2009 from 2008. Higher expenses resulted primarily from growth in our wholesale mortgage division, from our new corporate headquarters and banking branch in downtown Greensboro, and from an expanded office in Winston-Salem.
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 $1,623,000 at September 30, 2009 from $840,000 at December 31, 2008 as the level of non-performing loans increased $8,751,000 during the same period to $14,407,000 at September 30, 2009. The general section of our allowance for loan losses was $5,415,000 at September 30, 2009 and $4,920,000 at December 31, 2008. 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 0.25% on loans secured by stocks and deposits to 6.00% 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 revolving residential lines and nonfarm nonresidential loans due to increased charge-offs in these categories during 2009. 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.
Read the The complete Report
