Carolina Bank Holdings, Inc. was formed for the purpose of serving as a bank holding company of Carolina Bank (the Bank). The Bank’s 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 primarily from customers in its geographic market. The Bank provides 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. The Bank’s lending activities are concentrated in commercial lending but also include commercial loans to small-to-medium sized businesses located for various purposes, and various consumer-type loans to individuals, including installment loans, credit card products, mortgage loans and equity lines of credit.