Welcome!

News Feed Item

Bank of the Carolinas Corporation Reports Fourth Quarter and Year-End Financial Results

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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at @DevOpsSUMMIT and CloudEXPO tell the world how they can leverage this emerging disruptive trend."
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, redu...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.