MOCKSVILLE, N.C., April 26, 2013 /PRNewswire/ -- Bank of the Carolinas Corporation (OTCQB: BCAR) today reported financial results for the three-month period ended March 31, 2013.
For the three-month period ended March 31, 2013, the Company reported net income available to common shareholders of $191,000 as compared to net income of $551,000 for the fourth quarter of 2012 and a net loss of $2.7 million for the first quarter of 2012. Net income per diluted common share was $0.05 for the first quarter of 2013 compared with net income per share of $0.14 for the fourth quarter of 2012 and a net loss per share of $0.70 for the first quarter of 2012.
Results of operations were positive for the second consecutive quarter. The provision for loan losses recognizes a recovery of $1.1 million in the first quarter of 2013 compared to an expense of $1.3 million in the first quarter a year ago. Costs related to foreclosed real estate were $365,000 for the first quarter of 2013 as compared to $839,000 in the first quarter of 2012. For the first quarter of 2013, credit-related costs totaled a recovery of $995,000, or a 146.1% decrease over the previous year's first quarter costs of $2.2 million.
The Company continues its progress in reducing the level of nonperforming assets. As of March 31, 2013, the Company's nonperforming assets decreased to $7.8 million and amounted to 1.80% of total assets as compared to $12.7 million or 2.91% of total assets as of December 31, 2012 and compared to $23.4 million, or 4.88% of total assets as of March 31, 2012. The allowance for loan losses was 2.42% of total loans as of March 31, 2013. Net loan recoveries amounted to $754,000 for the first quarter of 2013, as compared to net loan recoveries of $77,000 in the fourth quarter of 2012 and net loan chargeoffs of $1.3 million in the first quarter of 2012.
The Company's net interest margin was 2.74% in the first quarter of 2013, which is a decrease of 7 basis points from 2.81% in the first quarter of 2012. Noninterest expense for the three-month period, excluding the costs related to foreclosed real estate, decreased 15.4% versus the first quarter of 2012. The Company was able to reduce other noninterest expenses by closing its Cleveland, North Carolina branch in February 2013. Cost savings of $587,000 have been recognized in salary and benefits, occupancy and equipment, and consultant and legal fees.
Total assets at March 31, 2013 amounted to $432.2 million, a decrease of 9.9% when compared to $479.8 million as of March 31, 2012. Loans totaled $269.0 million at March 31, 2013, a decline of 9.2% from a year earlier, and deposits decreased 11.3% over the prior year to $366.5 million. The Company's deposit mix has improved by decreasing non-core brokered deposits by $36.6 million, or 85.6%, since March 31, 2012.
The Company's banking subsidiary had a Tier 1 leverage capital ratio and Tier 1 capital to risk-weighted assets ratio of 3.75% and 5.17% respectively, while its total capital to risk-weighted assets ratio was 6.43% as of March 31, 2013.
President and CEO, Stephen R. Talbert, said, "We are proud of the progress we have made and we will continue to work diligently for our shareholders."
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, King, 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:
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Stephen R. Talbert
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President and Chief Executive Officer
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Bank of the Carolinas Corporation
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