Market Overview

Momentum Carries Carolina Trust Bank to 2Q Profit

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LINCOLNTON, N.C., July 21, 2015 (GLOBE NEWSWIRE) -- Carolina Trust Bank (Nasdaq: CART) today reported net income available to common shareholders of $302,000 for the second quarter 2015 or $0.06 per diluted common share compared to a first quarter 2015 net income of $117,000 or $0.03 per diluted common share.

Before payment of dividends on preferred shares, the Bank had net income of $361,000 for the second quarter 2015. For the quarter ended June 30, 2014, net income available to common shareholders was $610,000 or $0.13 per diluted share.

Second quarter profits were driven by loan growth, higher total revenue and net interest income. Disciplined pricing contributed to a strong net interest margin of 4.18%, significantly higher than the 3.85% average for the Bank's NC peer group.

"We continue to experience strong loan demand throughout our footprint," said President and CEO Jerry L. Ocheltree. "Loan production has been so good that we actually met annual loan growth goals for the year this quarter. But that doesn't mean we plan to take our foot off the accelerator.

"The bank is beginning to reap the benefits from all the hard work from the past," he said. "We're improving in nearly every measure of profitability and asset quality. We have tremendous momentum."

Selected Financial Highlights

Year-Over-Year

June 30, 2015 compared to June 30, 2014

  • Total loans increased $55.78 million or 25.06%
  • Total deposits increased $45.34 million or 19.64%
  • Net interest margin was 4.18% compared to 4.42%
  • Net interest income increased $286,000 or 10.27%
  • Total nonperforming assets increased $628,000 or 12.47%


Linked-Quarter

June 30, 2015 compared to March 31, 2015

Income Statement

  • Total revenues, less interest expense, increased $263,000 from March 31, 2015 
    -- Net interest income increased $194,000 or 6.74%  
    -- Non-interest income increased $68,000 or 28.81% 
    -- Interest expense increased $41,000 or 7.66%
    -- Non-interest expense decreased $54,000 or 1.92%


Balance Sheet

  • Total assets of $333.41 million increased $27.87 million or 9.12%
  • Total deposits of $276.18 million increased $16.47 million or 6.34%
  • Total loans of $278.31 million increased $20.39 million or 7.9%
  • Reserve for loan loss of $3.89 million decreased $68,000 or 1.72%
  • Total shareholders' equity of $30.11 million decreased $78,000 or 0.26%


Credit Quality

  • Total nonperforming assets decreased $224,000 or 3.80%
  • Other Real Estate Owned increased $3,000 or 0.13%
  • Non-accrual loans decreased $229,000 or 6.64%
  • Net loan charge-offs to average loans were 0.03%


Carolina Trust Bank continued to exceed "well-capitalized" requirements for each of the four primary capital levels monitored by state and federal regulators. As of June 30, 2015, Common equity tier 1 capital ratio was 7.73%; Tier 1 capital ratio was 8.59%; Total capital ratio was 9.84%; and Tier 1 leverage ratio was 8.24%.

Revenue

Total revenues, less interest expense, increased $263,000 from the previous quarter and $344,000 from the quarter ended June 30, 2014. Interest income was $3.65 million compared to $3.41 million from the prior quarter and $3.27 million for the same period a year ago. Net interest income increased $194,000 from the first quarter 2015 and $286,000 from a year ago.

Non-interest expense, up last quarter due to increases in salaries and overhead expenses, decreased $54,000 in the second quarter 2015. On a year-over-year basis, commercial and retail lenders booked net new loans of $55.78 million, an increase of 25.06% from June 30, 2014.

Balance Sheet

Total assets of $333.41 million at June 30, 2015, increased $27.87 million from the prior quarter and $65.80 million from June 30, 2014. Total deposits were $276.18 million at June 30, 2015, compared to $259.71 million at March 31, 2015, and $230.84 million at June 30, 2014. Total loans were $278.31 million at June 30, 2015, compared to $257.92 million at March 31, 2015, and $222.53 million at June 30, 2014. Reserve for loan loss was $3.89 million at June 30, 2015, compared to $3.95 million at March 31, 2015, and $4.14 million at June 30, 2014.

Asset Quality

Total nonperforming assets of $5.66 million at June 30, 2015 decreased $224,000 from March 31, 2015, but increased $628,000 from June 30, 2014. Non-accrual loans of $3.22 million at June 30, 2015 decreased $229,000 from March 31, 2015, but were up $454,000 from June 30, 2014. Other Real Estate Owned increased $3,000 from March 31, 2015, and $60,000 from June 30, 2014. Nonperforming assets were 1.70% of total assets at June 30, 2015, compared to 1.93% of total assets at March 31, 2015, and 1.88% at June 30, 2014. Allowance for loan losses to total loans was 1.40% at June 30, 2015, compared to 1.53% at March 31, 2015, and 1.86% at June 30, 2014.

Performance Ratios

Annualized return on average assets was 0.46% at June 30, 2015, compared to 0.24% for quarter ended March 31, 2015, and 1.00% for quarter ended June 30, 2014. Annualized return on average equity was 4.74% at June 30, 2015, compared to 2.35% for the quarter ended March 31, 2015, and 11.42% for the quarter ended June 30, 2014.

Carolina Trust Bank is a full service state chartered bank headquartered in Lincolnton, N.C., operating nine full service branches in Lincoln, Catawba, Gaston and Rutherford Counties in western North Carolina and a loan production office in Mooresville, N.C.

Forward-Looking Statement: This news release contains forward-looking statements. Words such as "anticipates," " believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward-looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand and asset quality, including real estate and other collateral values; changes in banking regulations and accounting principles, policies or guidelines; and the impact of competition from traditional or new sources. These and other factors that may emerge could cause decisions and actual results to differ materially from current expectations. Carolina Trust Bank takes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

 

Carolina Trust Bank        
     
   (Dollars in thousands)  
 June 30March 31December 31September 30June 30 
  2015  2015  2014  2014  2014  
Balance Sheet Data: 
Total Assets  $  333,414 $  305,545 $  293,041 $  270,072 $  267,618  
Total Deposits  $  276,183 $  259,711 $  237,176 $  231,600 $  230,841  
Total Loans  $  278,305 $  257,919 $  244,646 $  227,933 $  222,529  
Reserve for Loan Loss  $  3,886 $  3,954 $  4,002 $  4,165 $  4,143  
Total Shareholders Equity  $  30,111 $  30,189 $  29,807 $  24,650 $  23,969  
     
       
   (Dollars in thousands, except per share data)   
     For the three months ended
  
 June 30March 31December 31September 30June 30 
  2015  2015  2014  2014  2014  
Income and Per Share Data:       
Interest Income $  3,647 $  3,412 $  3,293 $  3,292 $  3,269  
Interest Expense    576    535    498    487    484  
Net Interest Income    3,071    2,877    2,795    2,805    2,785  
Provision for Loan Loss    -    -    -    -    (125) 
Net Interest Income After Provision    3,071    2,877    2,795    2,805    2,910  
Non-interest Income    304    236    275    232    247  
Non-interest Expense    2,758    2,812    2,710    2,300    2,488  
Income Before Taxes    617    301    360    737    669  
Income Tax Expense (benefit)    256    125    (4,539)   -    -  
Net Income     361    176    4,899    737    669  
       
Preferred Stock Dividend    59    59    59    59    59  
       
Income available to common shareholders$  302 $  117 $  4,840 $  678 $  610  
       
Net Income Per Common Share:       
Basic $  0.07 $  0.03 $  1.04 $  0.15 $  0.13  
Diluted $  0.06 $  0.03 $  1.04 $  0.15 $  0.13  
Average Common Shares Outstanding:       
Basic    4,645,963    4,643,666    4,635,215    4,635,172    4,635,097  
Diluted    4,685,122    4,680,116    4,669,888    4,677,837    4,645,291  
       
       
       
  (Dollars in thousands, except per share data)  
 June 30March 31December 31September 30June 30 
  2015  2015  2014  2014  2014  
Capital Ratios:       
Common equity tier 1 capital ratio  7.73% 8.07% n/a  n/a   n/a   
Tier 1 capital ratio  8.59% 9.00% n/a   n/a   n/a   
Total Capital ratio  9.84% 10.25% n/a   n/a   n/a   
Tier 1 leverage ratio  8.24% 8.53% 9.02% 9.10% 8.92% 
        
Tangible Common Equity $  27,304 $  27,385 $  26,965 $  21,805 $  21,107  
Common Shares Outstanding    4,645,975    4,645,755    4,635,422    4,635,172    4,635,172  
Book Value Per Common Share $  5.88 $  5.89 $  5.82 $  4.70 $  4.55  
        
Performance Ratios (annualized):       
Return on Average Assets (%)  0.46% 0.24% 7.35% 1.08% 1.00% 
Return on Average Equity (%)  4.74% 2.35% 78.68% 11.94% 11.42% 
Net Interest Margin (%)  4.18% 4.19% 4.20% 4.36% 4.42% 
       
Asset Quality:       
Delinquent Loans ( 30-89 days accruing interest)$  2,119 $  2,813 $  2,631 $  2,569 $  2,219  
       
Delinquent Loans ( 90 days or more )    114    112    174    -    -  
Non-accrual Loans $  3,221 $  3,450 $  3,991 $  3,082 $  2,767  
OREO and repossessed property    2,331     2,328     2,048     2,261     2,271   
 Total Nonperforming Assets $  5,666 $  5,890 $  6,213 $  5,343 $  5,038  
       
Restructured Loans $  4,338 $  4,436 $  4,871 $  4,765 $  4,343  
       
Nonperforming Assets to Total Assets  1.70% 1.93% 2.12% 1.98% 1.88% 
Nonperforming Assets to Equity Capital & ALLL 16.67% 17.25% 18.38% 18.54% 17.92% 
Allowance for Loan Losses to Non-performing Assets 68.58% 67.13% 64.41% 77.95% 82.24% 
Allowance for Loan Losses to Total Loans  1.40% 1.53% 1.64% 1.83% 1.86% 
Net Loan Charge-Offs (recoveries) $  68 $  48 $  162 $  (22)$  (102) 
Net Loan Charge-Offs to Average Loans (%) 0.03% 0.02% 0.07% -0.01% -0.05% 
       
Note: Financial information is unaudited.       

 

 

 

Contact: Jerry L. Ocheltree President and CEO Carolina Trust Bank (704) 735-1104
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