EXHIBIT 99.1

Carolina Bank Holdings, Inc. Reports Record 4th Quarter Net Income

GREENSBORO, N.C., Feb. 2, 2012 (GLOBE NEWSWIRE) -- Carolina Bank Holdings, Inc. (Nasdaq:CLBH) today reported fourth quarter and year end 2011 results with highlights as follows:

Fourth Quarter and Year End 2011 Financial Highlights

• Net income for the fourth quarter of 2011 was a record $1,031,000, an increase of 51.8% from net income of $679,000 reported in the fourth quarter of 2010. Net income (loss) was $2,397,000 and $(2,394,000) for the years ended December 31, 2011 and 2010, respectively.
• Diluted net income per common share increased 83% to $0.22 in the fourth quarter of 2011 from $0.12 in the fourth quarter of 2010. Diluted net income (loss) per common share was $0.36 and $(1.04) for the years ended December 31, 2011 and 2010, respectively.
• Net income available to common shareholders was $729,000 in the fourth quarter of 2011 compared to $392,000 in the fourth quarter of 2010.
• The net interest margin, computed on a fully taxable basis, increased to 4.14% in the fourth quarter of 2011 compared to 3.80% in the fourth quarter of 2010. The net interest margin increased to 3.92% in all of 2011 from 3.63% in 2010.
• Carolina Bank, the subsidiary of Carolina Bank Holdings, Inc., continued to maintain 'Well Capitalized' status, the highest regulatory capital measure. Capital ratios at December 31, 2011 for Carolina Bank improved to 8.02% for Tier 1 leverage, 9.60% for Tier 1 risk-based, and 12.50% for total risk-based.
• Non-interest-bearing demand deposits grew 32.7% in 2011 after growing 11.0% in 2010.
• Net loan charge-offs declined 42.3% to $7,416,000, or 1.49% of average loans, in 2011 from $12,855,000, or 2.43% of average loans, in 2010.

Robert T. Braswell, President and CEO of Carolina Bank Holdings, Inc., commented, "We continued our goal of building shareholder value during 2011 by increasing our margins, improving asset quality, building net income, and strengthening relationships with our customers. Our net interest margins of 4.14% in the fourth quarter and 3.92% for all of 2011 were the highest in eleven years. We continued to grow our core deposits with non-interest-bearing demand deposits increasing 32.7% in 2011 after growing 11.0% in 2010 as businesses enjoyed our outstanding customer service. Additionally, our mortgage division experienced strong originations and good profitability during the fourth quarter and all of 2011, enhancing our non-interest income."

Non-performing loans to total loans held for investment decreased to 4.79% at December 31, 2011 from 5.39% at December 31, 2010. Non-performing assets to total assets decreased to 4.46% at December 31, 2011 from 5.55% at December 31, 2010. Net loan charge-offs declined to $7.4 million in 2011 from $12.9 million in 2010. Braswell commented, "We made steady progress in bringing down the elevated level of non-performing assets in 2011 and will continue that focus in the coming years. We are also pleased that loan charge-offs declined substantially in 2011 to more manageable levels. Our continued focus and efforts to develop a stronger credit culture are progressing well and should improve future results for our shareholders. We were also able to improve our capital ratios in 2011 through the retention of earnings and managed growth."

About the Company

Carolina Bank, the banking subsidiary of Carolina Bank Holdings, Inc. began banking operations on November 25, 1996. The parent company is a North Carolina corporation organized in 2000. The bank is engaged in lending and deposit gathering activities in the Piedmont Triad of North Carolina, with operations in four counties: Guilford, Alamance, Forsyth and Randolph. The bank has eight full-service banking locations, four in Greensboro, one in Asheboro, one in High Point, one in Burlington, and one in Winston-Salem and a mortgage loan production office in Burlington. The Company's stock is listed on the NASDAQ Global Market under the symbol CLBH. Further information is available on the Company's web site: www.carolinabank.com.

This press release contains forward-looking statements regarding future events. These statements are only predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include risks of managing our growth, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to be materially different from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission. Carolina Bank Holdings, Inc. undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:  Carolina Bank Holdings, Inc.
          T. Allen Liles, EVP and CFO
          Telephone: 336-286-8746
          Email: a.liles@carolinabank.com