MOCKSVILLE, N.C., April 23 /PRNewswire/ -- Bank of the Carolinas Corporation , today reported financial results for the three months ended March 31, 2007.
For the three month period ended March 31, 2007, diluted earnings per share were $.20 which was unchanged from the first quarter of 2006. Net income for the first quarter of 2007 was $780,000, as compared to $804,000 in the first quarter of 2006.
Total assets at March 31, 2007 amounted to $472.8 million, an increase of 20.1% when compared to the March 31, 2006 amount of $393.7 million. Net loans increased 15.0% over the prior year to $353.2 million, while deposits grew to $407.2 million, a 22.5% increase. The allowance for loan losses was 1.05% of total loans as of March 31, 2007, and net year to date charge-offs were 0.07% of average loans outstanding.
Net interest income increased only slightly over the year ago quarter as an increase in earning assets was substantially offset by a decline in the Company's net interest margin. However, the Company did experience significant growth of 20.2% in non-interest income for the first quarter of 2007 versus the comparable quarter in 2006. While non-interest expense rose 13.0% quarter over quarter, it decreased as a percentage of average assets.
As was previously announced on April 12, 2007, the Company has entered into a definitive agreement with Randolph Bank & Trust Company (Pink Sheets: RDBN) whereby Randolph Bank will be merged into Bank of the Carolinas. The transaction is subject to shareholder and regulatory approval and is expected to be consummated in the fourth quarter of 2007.
Bank of the Carolinas Corporation is the holding company for Bank of the Carolinas, a state chartered bank headquartered in Mocksville, NC with offices in Advance, Asheboro, Cleveland, Harrisburg, King, Landis, Lexington and Winston-Salem. Common stock of the Company is traded on the NASDAQ Capital Market under the symbol BCAR.
This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Bank of the Carolinas Corporation undertakes no obligation to revise these statements following the date of this press release.
Bank of the Carolinas Corporation
Consolidated Balance Sheets
(In Thousands--Unaudited)
March 31
2007 2006
Assets
Cash and Due from Banks $ 5,594 $ 4,486
Interest-Bearing Deposits in Banks 100 173
Federal Funds Sold 27,467 2,779
Securities Available for Sale 58,452 54,689
Loans 356,948 310,615
Less, Allowance for Loan Losses (3,735) (3,410)
Total Loans, Net 353,213 307,205
Properties and Equipment 11,391 11,266
Other Assets 16,626 13,144
Total Assets $ 472,843 $ 393,742
Liabilities
Non-interest Bearing Demand Deposits $ 29,603 $ 33,322
Interest Bearing Demand Deposits 64,377 61,105
Savings Deposits 11,428 12,071
Time Deposits 301,808 225,924
Total Deposits 407,216 332,422
Borrowings 23,000 24,000
Retail Repurchase Agreements 994 --
Other Liabilities 3,191 2,069
Total Liabilities 434,401 358,491
Shareholders' Equity
Common Stock, Par Value $5 Per Share:
Authorized 15,000,000 Shares;
Issued 3,831,692 Shares in 2007
and 3,825,192 Shares in 2006 19,158 19,126
Additional Paid-In Capital 11,471 11,421
Retained Earnings 7,881 5,196
Accumulated Other Comprehensive Loss (68) (492)
Total Shareholders' Equity 38,442 35,251
Total Liabilities and
Shareholders' Equity $ 472,843 $ 393,742
Bank of the Carolinas Corporation
Consolidated Statements of Income
(In Thousands, Except Share and Per Share Data)
(Unaudited)
Three Months Ended
March 31
2007 2006
Interest Income
Interest and Fees on Loans $ 7,309 $ 5,805
Interest on Securities 614 477
Federal Funds Sold 177 138
Deposits in Other Banks 4 1
Total Interest Income 8,104 6,421
Interest Expense
Deposits 4,250 2,676
Borrowed Funds 285 271
Total Interest Expense 4,535 2,947
Net Interest Income 3,569 3,474
Provision for Loan Losses 62 117
Net Interest Income After
Provision for Loan Losses 3,507 3,357
Other Income
Customer Service Fees 236 221
Mortgage Loan Broker Fees 31 59
Investment Services 43 --
Increase in CSV of Life Insurance 82 49
Other Income 37 28
Total Other Income 429 357
Noninterest Expense
Salaries and Benefits 1,517 1,355
Occupancy and Equipment 418 337
Other Noninterest Expense 852 774
Total Noninterest Expense 2,787 2,466
Income Before Income Taxes 1,149 1,248
Income Taxes 369 444
Net Income $ 780 $ 804
Earnings Per Share
Basic $ 0.20 $ 0.21
Diluted $ 0.20 $ 0.20
Weighted Average Shares Outstanding
Basic 3,826,706 3,825,192
Diluted 3,949,095 3,964,428
Bank of the Carolinas Corporation
Performance Ratios
Three Months Ended March 31
2007 2006 Change*
Financial Ratios
Return On Average Assets 0.69% 0.84% (15)BP
Return On Average Shareholders'
Equity 8.27% 9.26% (99)
Net Interest Margin 3.31% 3.86% (55)
Asset Quality Ratios
Net-chargeoffs to Average Loans 0.07% 0.03% 4 BP
Nonperforming Loans To Total
Loans 0.70% 0.42% 28
Nonperforming Assets To Total
Assets 0.72% 0.60% 12
Allowance For Loan Losses To
Total Loans 1.05% 1.10% (5)
* BP denotes basis points.
For further information contact:
Eric E. Rhodes
Chief Financial Officer
Bank of the Carolinas
(336) 751-5755
