Carolina Bank Holdings, Inc. is formed for the purpose of serving as a bank holding company of Carolina Bank (the Bank). The bank engages in a banking business in Guilford, Alamance, Randolph and Forsyth Counties, North Carolina. Its operations are commercially oriented and directed to individuals and small to medium-sized businesses located in its market area and its deposits and loans are derived from customers in its geographic market. The bank provides most traditional commercial and consumer banking services, including personal and commercial checking and savings accounts, money market accounts, certificates of deposit, individual retirement accounts and related business and individual banking services. As of December 31, 2011, the loans secured by real estate mortgages included 86.3 % of the loan portfolio.