CAROLINA BANK HOLDINGS INC

CIK:0001127160|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest income
Loans	$ 6,063	$ 6,062	$ 18,046	$ 18,079
Investment securities, taxable	306	322	1,023	985
Investment securities, nontaxable	116	116	349	363
Interest from deposits in banks	112	57	406	183
Total interest income	6,597	6,557	19,824	19,610
Interest expense
NOW, money market, savings	234	237	700	713
Time deposits	223	277	731	876
Other borrowed funds	240	154	693	457
Total interest expense	697	668	2,124	2,046
Net interest income	5,900	5,889	17,700	17,564
Provision for loan losses	0	450	0	1,285
Net interest income after provision for loan losses	5,900	5,439	17,700	16,279
Non-interest income
Service charges	318	304	916	919
Mortgage banking income	2,533	3,220	7,115	9,848
Gain on sale of SBA loans	261	67	498	120
Other	70	50	211	165
Total non-interest income	3,182	3,641	8,740	11,052
Non-interest expense
Salaries and benefits	4,536	4,533	13,216	13,433
Occupancy and equipment	722	783	2,170	2,318
Professional fees	457	474	1,379	1,377
Outside data processing	280	270	831	809
FDIC insurance	109	132	310	393
Advertising and promotion	244	225	734	578
Stationery, printing and supplies	142	149	433	447
Merger expense	154	0	739	0
Other	279	449	1,195	1,303
Total non-interest expense	6,923	7,015	21,007	20,658
Income before income taxes	2,159	2,065	5,433	6,673
Income tax expense	595	629	1,525	1,942
Net income	1,564	1,436	3,908	4,731
Dividends and accretion on preferred stock	0	0	0	341
Net income available to common stockholders	$ 1,564	$ 1,436	$ 3,908	$ 4,390
Net income per common share
Basic	$ 0.31	$ 0.29	$ 0.78	$ 1.05
Diluted	$ 0.31	$ 0.29	$ 0.77	$ 0.98

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income	$ 3,908	$ 4,731
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Provision for loan losses	0	1,285
Depreciation	625	617
Increase in cash surrender value of bank-owned life insurance	(275)	(268)
Deferred income taxes (benefit)	(166)	718
Amortization, net of accretion	177	85
Capitalized interest on fixed asset construction	0	(40)
Increase in fair value of loans held for sale	(261)	(774)
Gain on sale of other real estate owned	(47)	(201)
Gain on sale of investments	0	(27)
Gain on sale of loans held for sale	(7,046)	(8,780)
Impairment of other real estate owned	77	200
Proceeds from sale of loans held for sale	382,422	543,172
Originations of loans held for sale	(378,148)	(544,600)
Increase in interest rate lock commitments	(75)	(716)
Increase in other assets	(78)	(207)
Increase in other liabilities and accrued expenses	136	1,004
Net cash provided by (used for) operating activities	1,249	(3,801)
Cash flows from investing activities
Decrease in bank term deposits	1,465	0
Purchases of investment securities available-for-sale	(2,150)	(2,610)
Maturities and calls of securities available-for-sale	3,387	1,311
Maturities and calls of securities held-to-maturity	377	316
Repayments from mortgage-backed securities available-for-sale	4,955	1,484
Repayments from mortgage-backed securities held-to-maturity	470	512
Net (increase) decrease in loans	(38,008)	5,449
Proceeds from sales of investment securities	0	1,295
Improvements to other real estate owned	(327)	(89)
Purchases of premises and equipment	(7)	(1,401)
Proceeds from sales of other real estate owned	1,453	1,240
Net cash provided by (used for) investing activities	(28,385)	7,507
Cash flows from financing activities
Net increase (decrease) in deposits	(5,824)	1,591
Net proceeds from issuance of preferred stock converted to common stock	0	14,069
Repurchase of preferred stock	0	(10,994)
Net increase (decrease) in advances from the Federal Home Loan Bank	9,419	(78)
Decrease in securities sold under agreements to repurchase	(47)	(128)
Proceeds from exercise of stock options	261	85
Dividends paid on preferred stock	0	(465)
Net cash provided by financing activities	3,809	4,080
Net increase (decrease) in cash and cash equivalents	(23,327)	7,786
Cash and cash equivalents at beginning of period	75,792	46,174
Cash and cash equivalents at end of period	52,465	53,960
Supplemental disclosure of cash flow information
Cash paid during the period for interest	2,087	2,120
Cash paid during the period for income taxes	1,802	1,362
Supplemental disclosure of non-cash transactions
Transfer of loans to other real estate owned	478	613
Change in unrealized gains on securities available-for-sale, net of tax	$ 258	$ (107)

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 4,807	$ 6,559
Interest-bearing deposits with banks	47,658	69,233
Bank term deposits	15,139	16,604
Securities available-for-sale, at fair value	41,458	47,360
Securities held-to-maturity (fair values of $14,557 in 2016 and $15,226 in 2015)	14,031	14,954
Loans held for sale	42,616	39,583
Loans	503,226	465,804
Less allowance for loan losses	(5,764)	(5,872)
Net loans	497,462	459,932
Premises and equipment, net	18,389	19,007
Other real estate owned	3,914	4,592
Bank-owned life insurance	12,118	11,843
Other assets	11,298	11,131
Total assets	708,890	700,798
Deposits
Non-interest bearing demand	143,057	125,189
NOW, money market and savings	355,364	349,815
Time	103,062	132,303
Total deposits	601,483	607,307
Advances from the Federal Home Loan Bank	12,100	2,681
Securities sold under agreements to repurchase	0	47
Subordinated debentures	19,610	19,610
Other liabilities and accrued expenses	10,131	10,014
Total liabilities	643,324	639,659
Commitments and contingencies - Note P
Stockholders' equity
Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding 5,045,358 in 2016 and 5,021,330 in 2015	5,045	5,021
Additional paid-in capital	29,471	29,234
Retained earnings	30,082	26,174
Stock in directors’ rabbi trust	(2,089)	(1,831)
Directors’ deferred fees obligation	2,089	1,831
Accumulated other comprehensive income	968	710
Total stockholders’ equity	65,566	61,139
Total liabilities and stockholders’ equity	708,890	700,798
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock value	0	0
Series B Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock value	0	0
Total stockholders’ equity	$ 0	$ 0