Carolina Trust BancShares, Inc. Revises 4th Quarter 2017 Earnings Lower by $158,000 for Correction to Income Tax Charge

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  • The income tax charge was related to the revaluation of deferred tax assets when the Tax Cuts and Jobs Act ("tax reform") was signed into law

LINCOLNTON, N.C., March 22, 2018 (GLOBE NEWSWIRE) -- Carolina Trust BancShares, Inc. (the "Company") CART announces that its financial results for the quarter ended December 31, 2017 have been revised to report a net loss of $354,000 or $0.07 per diluted share.  Previously, on January 26, 2018, the Company reported a net loss of $196,000 or $0.04 per diluted share.  The $158,000 change in earnings is due to additional income tax expense recorded for a correction to the revaluation of the deferred tax assets ("DTAs"). 

The DTA revaluation was required when tax reform was signed into law on December 22, 2017, which lowered the Company's federal tax rate from 34% to 21% beginning in 2018.  Originally, the Company recorded an estimated income tax charge of $778,000 due to the revaluation of the DTAs.  After further review, the estimated income tax charge has been revised to $936,000, an increase of $158,000, to correct an error in the utilization of net operating loss carryforwards in the initial estimate. 


 
Dollars in thousands, except share and per share data
 
Carolina Trust BancShares, Inc.
Selected Financial Highlights 
 
  Unaudited Unaudited  Unaudited  Unaudited (a)
  12/31/179/30/176/30/173/31/1712/31/16
Balance Sheet Data:     
Total Assets$406,618$400,297 $390,168 $382,481 $374,917 
Total Loans 348,679 340,038  324,349  311,609  308,492 
Reserve for Loan Loss 3,599 3,423  3,213  3,471  3,393 
Total Deposits 340,653 337,589  330,893  323,179  318,665 
Total Shareholders' Equity 29,119 29,765  29,573  29,361  29,033 
 
 
Comparative Income Statements
For the Three Months Ended 
 
 Unaudited
12/31/17
Unaudited
12/31/16
Variance
$
Variance
 %
Income and Per Share Data:    
Interest Income$4,672 $4,146 $526  13%
Interest Expense 916  838  78  9%
Net Interest Income 3,756  3,308  448  14%
Provision for (Recovery of) Loan Loss  149  (149) 298  NM 
Net Interest Income After Provision 3,607  3,457  150  4%
Non-interest Income 379  282  97  34%
Non-interest Expense 3,114  3,143  (29) -1%
Income Before Taxes 872  596  276  46%
Income Tax Expense 1,226  214  1,012  473%
Net Income (Loss) (354) 382  (736) NM 
Preferred Stock Dividend -0-  47  (47) -100%
Net Income (Loss) Available to Common Shareholders$(354)$335 $(689) NM 
     
Net Income (Loss) Per Common Share:    
Basic$(0.08)$0.07   
Diluted$(0.07)$0.07   
Average Common Shares Outstanding:    
Basic 4,657,304  4,650,563   
Diluted 4,752,961  4,703,681   

(a) Note:  Derived from audited financial statements



 
Carolina Trust BancShares, Inc.
Comparative Income Statements 
For the years ended
Dollars in thousands, except per share data
  
 Unaudited
12/31/17
(a)
12/31/16
Variance
$
Variance
 %
Income and Per Share Data:    
Interest Income$17,449$16,222 $1,227 8%
Interest Expense 3,479 2,872  607 21%
Net Interest Income 13,970 13,350  620 5%
Provision for (Recovery of) Loan Loss 704 (27) 731 NM 
Net Interest Income After Provision 13,266 13,377  (111)-1%
Non-interest Income 1,376 1,229  147 12%
Non-interest Expense 12,644 12,388  256 2%
Income Before Taxes 1,998 2,218  (220)-10%
Income Tax Expense 1,594 877  717 82%
Net Income 404 1,341  (937)-70%
Preferred Stock Dividend-0- 222  (222)-100%
Net Income Available to Common Shareholders$404$1,119 $(715)-64%
     
Net Income Per Common Share:    
Basic$0.09$0.24   
Diluted$0.09$0.24   
Average Common Shares Outstanding:    
Basic 4,655,369 4,649,405   
Diluted 4,734,874 4,697,765   

(a) Note:  Derived from audited financial statements   


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

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