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
