MOCKSVILLE, N.C., Jan. 31, 2014 /PRNewswire/ -- Bank of the
Carolinas Corporation (OTCQB: BCAR) today reported financial
results for the three- and twelve-month periods ended December 31, 2013.
For the three-month period ended December
31, 2013, the Company reported a net loss available to
common shareholders of $764,000 as
compared to net income of $147,000
for the third quarter of 2013 and net income of $551,000 for the fourth quarter of 2012.
Net loss per diluted common share was $0.20 for the fourth quarter of 2013 compared
with net income per share of $0.04
for the third quarter of 2013 and net income per share of
$0.14 for the fourth quarter of
2012.
For the year ended December 31,
2013, the Company reported a net loss available to common
shareholders of $1.4 million or
$0.36 per common share, compared to a
net loss of $5.5 million or
$1.42 per common share for the year
ended December 31, 2012.
The provision for loan losses recognized an expense of
$39,000 in the fourth quarter of 2013
compared to a recovery of $637,000 in
the fourth quarter a year ago. For the year ended
December 31, 2013, the provision for
loan losses recognized a recovery of $1.2
million compared to an expense of $2.4 million for the year ended December 31, 2012. Costs related to
foreclosed real estate were $134,000
for the fourth quarter of 2013 as compared to $2,000 in the fourth quarter of 2012. For
the year ended December 31, 2013,
costs related to foreclosed real estate were $810,000 as compared to $2.4 million for the year ended December 31, 2012. Through December 31, 2013, credit-related costs totaled a
recovery of $1.3 million, or a 127.2%
decrease over the previous year's costs of $5.0 million through December 31, 2012.
As of December 31, 2013, the
Company's nonperforming assets were $6.0
million and amounted to 1.41% of total assets as compared to
$8.7 million or 2.03% of total assets
as of September 30, 2013 and compared
to $12.7 million, or 2.91% of total
assets as of December 31, 2012.
The allowance for loan losses was 2.16% of total loans as of
December 31, 2013. Net loan
recoveries amounted to $2.0 million
for the year ended December 31, 2013
as compared to net loan chargeoffs of $3.6
million for the year ended December
31, 2012.
The Company's net interest margin was 2.75% in the fourth
quarter of 2013, which is a decrease of 1 basis point from 2.76% in
the fourth quarter of 2012. Net interest margin stayed
consistent year over year at 2.72%. Noninterest expenses,
excluding the costs related to foreclosed real estate, decreased
11.0% for the year 2013 versus 2012. Cost savings of
$1.2 million for 2013 have been
recognized in salary and benefits, occupancy and equipment, and
consultant and legal fees.
Total assets at December 31, 2013
amounted to $426.7 million, a
decrease of 2.3% when compared to $436.8
million as of December 31,
2012. Loans totaled $278.5
million at December 31, 2013,
an increase of $8.1 million or 3.0%
from a year earlier. Deposits decreased 1.8% over the prior
year to $366.2 million. The Company's
deposit mix has improved by reducing $15.1
million in non-core brokered deposits since December 31, 2012.
The Company's banking subsidiary had a Tier 1 leverage capital
ratio and Tier 1 capital to risk-weighted assets ratio of 3.08% and
4.21% respectively, while its total capital to risk-weighted assets
ratio was 5.47% as of December 31,
2013.
President and CEO, Stephen R.
Talbert, said, "We are proud of the progress we made in 2013
and look forward to continued improvement in 2014. Our staff
continues to work hard to make Bank of the Carolinas better each
day."
Bank of the Carolinas Corporation is the holding company for
Bank of the Carolinas, a North
Carolina chartered bank headquartered in Mocksville, NC with offices in Advance, Asheboro, Concord, Harrisburg, Landis, Lexington and Winston-Salem. The common
stock of the Company is quoted under the symbol "BCAR" on the OTCQB
marketplace operated by OTC Markets Group Inc.
For further information contact:
Stephen R. Talbert
President and Chief Executive Officer
Bank of the Carolinas Corporation
(336) 751-5755
DISCLOSURES ABOUT FORWARD LOOKING
STATEMENTS
Statements in this press release relating to plans, strategies,
economic performance and trends, projections of results of specific
activities or investments, expectations or beliefs about future
events or results, and other statements that are not descriptions
of historical facts, may be forward-looking statements as defined
in Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking information
is inherently subject to risks and uncertainties, and actual
results could differ materially from those currently anticipated
due to a number of factors which include, but are not limited to,
factors discussed in our Annual Report on Form 10-K and in other
documents we file with the Securities and Exchange Commission from
time to time. Copies of those reports are available directly
through the SEC's Internet website at www.sec.gov.
Forward-looking statements may be identified by terms such as
"may," "will," "should," "could," "expects," "plans," "intends,"
"anticipates," "feels," "believes," "estimates," "predicts,"
"forecasts," "potential" or "continue," or similar terms or the
negative of these terms, or other statements concerning opinions or
judgments of our management about future events. Factors that
could influence the accuracy of forward-looking statements include,
but are not limited to (a) pressures on our earnings, capital and
liquidity resulting from current and future conditions in the
credit and capital markets, (b) continued or unexpected
increases in nonperforming loans and credit losses in our loan
portfolio, (c) continued adverse conditions in the economy and in
the real estate market in our banking markets (particularly those
conditions that affect our loan portfolio, the abilities of our
borrowers to repay their loans, and the values of collateral that
secures our loans), (d) the financial success or changing
strategies of our customers, (e) actions of government regulators,
or change in laws, regulations or accounting standards, that
adversely affect our business, (f) changes in the interest rate
environment and the level of market interest rates that reduce our
net interest margins and/or the values of loans we make and
securities we hold, (g) changes in competitive pressures
among depository and other financial institutions or in our ability
to compete effectively against other financial institutions in our
banking markets, and (h) other developments or changes in our
business that we do not expect. Although we believe that the
expectations reflected in the forward-looking statements included
in this press release are reasonable, they represent our
management's judgments only as of the date they are made, and we
cannot guarantee future results, levels of activity, performance or
achievements. As a result, readers are cautioned not to place
undue reliance on these forward-looking statements. All
forward-looking statements attributable to us are expressly
qualified in their entirety by the cautionary statements in this
paragraph. We have no obligation, and do not intend, to
update these forward-looking statements.
Bank of the Carolinas
Corporation
|
|
|
Consolidated
Balance Sheets
|
|
|
(In Thousands Except
Share Data)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
Assets:
|
|
(Unaudited)
|
|
*
|
|
Cash and due from
banks, noninterest-bearing
|
|
$
12,778
|
|
$
5,942
|
|
Temporary
investments
|
|
21,644
|
|
29,214
|
|
Investment
securities
|
|
90,315
|
|
106,931
|
|
Loans
|
|
278,510
|
|
270,374
|
|
Less, allowance
for loan losses
|
|
(6,015)
|
|
(6,890)
|
|
Total loans, net
|
|
272,495
|
|
263,484
|
|
Premises and
equipment, net
|
|
11,274
|
|
11,843
|
|
Other real estate
owned
|
|
1,233
|
|
4,976
|
|
Bank owned life
insurance
|
|
10,888
|
|
10,536
|
|
Other
assets
|
|
6,055
|
|
3,859
|
|
Total
Assets
|
|
$
426,682
|
|
$
436,785
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Noninterest bearing
demand deposits
|
|
$
35,243
|
|
$
36,622
|
|
Interest-checking
deposits
|
|
40,939
|
|
37,768
|
|
Savings and money
market deposits
|
|
109,419
|
|
111,459
|
|
Time
deposits
|
|
180,549
|
|
187,123
|
|
Total deposits
|
|
366,150
|
|
372,972
|
|
Securities sold under
repurchase agreements
|
|
45,388
|
|
45,362
|
|
Subordinated
debt
|
|
7,855
|
|
7,855
|
|
Other
liabilities
|
|
2,509
|
|
2,138
|
|
Total
Liabilities
|
|
421,902
|
|
428,327
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Preferred
stock, no par value
|
|
13,179
|
|
13,179
|
|
Discount on preferred
stock
|
|
(100)
|
|
(419)
|
|
Common stock, $5 par
value per share
|
|
19,479
|
|
19,479
|
|
Additional paid-in
capital
|
|
12,991
|
|
12,991
|
|
Retained
losses
|
|
(37,479)
|
|
(37,355)
|
|
Accumulated other
comprehensive income (loss)
|
|
(3,290)
|
|
583
|
|
Total Shareholders'
Equity
|
|
4,780
|
|
8,458
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
426,682
|
|
$
436,785
|
|
|
|
|
|
|
|
Preferred shares
authorized
|
|
3,000,000
|
|
3,000,000
|
|
Preferred shares
issued and outstanding
|
|
13,179
|
|
13,179
|
|
Unaccrued preferred
stock dividend
|
|
1,894
|
|
1,406
|
|
Common shares
authorized
|
|
15,000,000
|
|
15,000,000
|
|
Common shares issued
and outstanding
|
|
3,895,840
|
|
3,895,840
|
|
|
|
|
|
|
|
Book value per
common share
|
|
$
(2.64)
|
|
$
(1.57)
|
|
|
|
|
|
|
|
*Derived from audited
financial statements
|
|
|
|
|
|
|
|
|
Bank of the
Carolinas Corporation
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
(In Thousands Except
Share Data)
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December
31
|
|
December
31
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Interest
income
|
|
(Unaudited)
|
|
*
|
|
(Unaudited)
|
|
*
|
|
Interest
and fees on loans
|
|
$
3,274
|
|
$
3,398
|
|
$
12,978
|
|
$
14,303
|
|
Interest
on securities
|
|
550
|
|
626
|
|
2,156
|
|
2,669
|
|
Other interest
income
|
|
18
|
|
18
|
|
74
|
|
77
|
|
Total interest
income
|
|
3,842
|
|
4,042
|
|
15,208
|
|
17,049
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Interest
on deposits
|
|
540
|
|
695
|
|
2,301
|
|
3,225
|
|
Interest
on borrowed funds
|
|
570
|
|
570
|
|
2,259
|
|
2,268
|
|
Total interest
expense
|
|
1,110
|
|
1,265
|
|
4,560
|
|
5,493
|
|
Net interest
income
|
|
2,732
|
|
2,777
|
|
10,648
|
|
11,556
|
|
Provision for loan losses
|
|
39
|
|
(637)
|
|
(2,039)
|
|
2,359
|
|
Net
interest income after provision for
|
|
|
|
|
|
|
|
|
|
loan losses
|
|
2,693
|
|
3,414
|
|
12,687
|
|
9,197
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
Customer
service fees
|
|
292
|
|
309
|
|
1,149
|
|
1,176
|
|
Increase
in value of bank owned life insurance
|
|
89
|
|
89
|
|
352
|
|
774
|
|
Gains on
investment securities
|
|
-
|
|
43
|
|
-
|
|
2,190
|
|
Other
income
|
|
19
|
|
8
|
|
28
|
|
28
|
|
Total noninterest
income
|
|
400
|
|
449
|
|
1,529
|
|
4,168
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
Salaries
and benefits
|
|
1,633
|
|
1,611
|
|
6,437
|
|
6,877
|
|
Occupancy and equipment
|
|
450
|
|
452
|
|
1,787
|
|
1,903
|
|
FDIC
insurance assessments
|
|
363
|
|
375
|
|
1,459
|
|
1,600
|
|
Data
processing expense
|
|
245
|
|
252
|
|
1,054
|
|
989
|
|
Valuation provisions and net operating costs
|
|
|
|
|
|
|
|
|
|
associated with
foreclosed real estate
|
|
134
|
|
2
|
|
810
|
|
2,417
|
|
Other
|
|
785
|
|
787
|
|
3,082
|
|
4,158
|
|
Total noninterest
expenses
|
|
3,610
|
|
3,479
|
|
14,629
|
|
17,944
|
|
Income (Loss)
before income taxes
|
|
(517)
|
|
384
|
|
(413)
|
|
(4,579)
|
|
Provision for income taxes
|
|
-
|
|
(409)
|
|
-
|
|
-
|
|
Net income
(loss)
|
|
$
(517)
|
|
$
793
|
|
$
(413)
|
|
$
(4,579)
|
|
Dividends and
accretion on preferred stock
|
|
(247)
|
|
(242)
|
|
(978)
|
|
(956)
|
|
Net loss available
to common shareholders
|
|
$
(764)
|
|
$
551
|
|
$
(1,391)
|
|
$
(5,535)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.20)
|
|
$
0.14
|
|
$
(0.36)
|
|
$
(1.42)
|
|
Diluted
|
|
$
(0.20)
|
|
$
0.14
|
|
$
(0.36)
|
|
$
(1.42)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,895,840
|
|
3,895,840
|
|
3,895,840
|
|
3,895,840
|
|
Diluted
|
|
3,895,840
|
|
3,895,840
|
|
3,895,840
|
|
3,895,840
|
|
|
|
|
|
|
|
|
|
|
|
*Derived from audited
financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of the
Carolinas Corporation
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
(Dollars in thousands
except per share amounts)
|
|
|
|
|
|
|
|
As of or for
the
|
|
|
|
year ended
December 31
|
|
|
|
2013
|
|
2012
|
|
Change*
|
|
Average balance
sheet data
|
|
|
|
|
|
|
|
|
|
|
|
Average
loans
|
|
$
272,614
|
|
|
$
287,764
|
|
|
(5.26)
|
%
|
|
|
Average earning
assets
|
|
390,854
|
|
|
425,385
|
|
|
(8.12)
|
|
|
|
Average total
assets
|
|
427,789
|
|
|
464,541
|
|
|
(7.91)
|
|
|
|
Average common
shareholders' equity
|
|
(5,817)
|
|
|
(2,691)
|
|
|
116.16
|
|
|
|
Average total
shareholders' equity
|
|
7,362
|
|
|
10,488
|
|
|
(29.81)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end balance
sheet data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$
278,510
|
|
|
$
270,374
|
|
|
3.01
|
%
|
|
|
Allowance for loan
losses
|
|
(6,015)
|
|
|
(6,890)
|
|
|
(12.70)
|
|
|
|
Total
assets
|
|
426,682
|
|
|
436,785
|
|
|
(2.31)
|
|
|
|
Total
deposits
|
|
366,150
|
|
|
372,972
|
|
|
(1.83)
|
|
|
|
Total common
shareholders' equity
|
|
(8,399)
|
|
|
(4,721)
|
|
|
77.91
|
|
|
|
Total shareholders'
equity
|
|
4,780
|
|
|
8,458
|
|
|
(43.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
indicators
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
|
$
(1,164)
|
|
|
$
3,570
|
|
|
(132.60)
|
%
|
|
|
Total nonperforming
loans
|
|
4,789
|
|
|
7,733
|
|
|
(38.07)
|
|
|
|
Total nonperforming
assets
|
|
6,022
|
|
|
12,709
|
|
|
(52.62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios
|
|
|
|
|
|
|
|
|
|
|
|
Net-chargeoffs
(recoveries) to average loans **
|
|
(0.43)
|
%
|
|
1.24
|
%
|
|
(167)
|
BP
|
|
|
Nonperforming loans
to total loans
|
|
1.72
|
|
|
2.86
|
|
|
(114)
|
|
|
|
Nonperforming assets
to total assets
|
|
1.41
|
|
|
2.91
|
|
|
(150)
|
|
|
|
Nonperforming assets
to loan-related assets
|
|
2.15
|
|
|
4.62
|
|
|
(246)
|
|
|
|
Allowance for loan
losses to total loans
|
|
2.16
|
|
|
2.55
|
|
|
(39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets **
|
|
(0.10)
|
%
|
|
(0.99)
|
%
|
|
89
|
BP
|
|
|
Return on average
common shareholders' equity **
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
|
Net interest margin
**
|
|
2.72
|
|
|
2.72
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share
|
|
$
(0.36)
|
|
|
$
(1.42)
|
|
|
74.65
|
%
|
|
|
Diluted loss per
common share
|
|
(0.36)
|
|
|
(1.42)
|
|
|
74.65
|
|
|
|
Book value per common
share
|
|
(2.64)
|
|
|
(1.57)
|
|
|
67.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* BP
denotes basis points. N/M denotes not meaningful.
|
|
|
|
|
|
** ratio
annualized.
|
|
|
|
|
|
|
|
|
|
|
Bank of the
Carolinas Corporation
|
|
|
|
|
|
Other Financial
Data (continued)
|
|
|
|
|
|
(Dollars in thousands
except per share amounts)
|
|
|
|
|
|
|
|
|
|
As of or for
the
|
|
|
|
|
|
|
three months ended
December 31
|
|
|
|
|
|
|
2013
|
|
2012
|
|
Change*
|
|
|
Average balance
sheet data
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
loans
|
|
$
279,326
|
|
|
$
275,438
|
|
|
1.41
|
%
|
|
|
|
Average earning
assets
|
|
394,744
|
|
|
404,511
|
|
|
(2.41)
|
|
|
|
|
Average total
assets
|
|
429,727
|
|
|
441,097
|
|
|
(2.58)
|
|
|
|
|
Average common
shareholders' equity
|
|
(7,129)
|
|
|
(4,670)
|
|
|
52.63
|
|
|
|
|
Average total
shareholders' equity
|
|
6,050
|
|
|
8,509
|
|
|
(28.89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
indicators
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
$
239
|
|
|
$
(77)
|
|
|
(411.02)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-chargeoffs to
average loans **
|
|
0.34
|
%
|
|
(0.11)
|
%
|
|
45
|
BP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets **
|
|
(0.48)
|
%
|
|
0.72
|
%
|
|
(120)
|
BP
|
|
|
|
Return on average
common shareholders' equity **
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
|
|
Net interest margin
**
|
|
2.75
|
|
|
2.76
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share
|
|
$
(0.20)
|
|
|
$
0.14
|
|
|
242.86
|
%
|
|
|
|
Diluted loss per
common share
|
|
(0.20)
|
|
|
0.14
|
|
|
242.86
|
|
|
|
|
Book value per common
share
|
|
(2.64)
|
|
|
(1.57)
|
|
|
67.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* BP
denotes basis points. N/M denotes not meaningful.
|
|
|
|
|
|
|
|
** ratio
annualized.
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Bank of the Carolinas Corporation