Market Overview

Carolina Trust BancShares, Inc. Reports 2nd Quarter 2019 Results

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  • $0.19 Net Income Per Diluted Share for the second quarter of 2019 as compared to $0.08 for the second quarter of 2018
  • Adjusted Net Income Per Diluted Share excluding merger expenses, accretion of loan and deposit fair market value adjustments, and amortization of core deposit intangibles, was $0.20 for the second quarter of 2019 as compared to $0.12 for the second quarter of 2018 (a non-GAAP measure)

LINCOLNTON, N.C., July 30, 2019 (GLOBE NEWSWIRE) -- Carolina Trust BancShares, Inc. (the "Company") (NASDAQ - CART) reports its financial results today for the most recently completed  quarter.  In the quarter that ended June 30, 2019 ("2Q19"), the Company's net income was $1,818,000 or $0.19 per diluted share as compared to $510,000 or $0.08 per diluted share in the quarter ended June 30, 2018 ("2Q18"), an increase of $1,308,000 or $0.11 per diluted share.  The diluted average common shares outstanding increased to 9.4 million shares in 2Q19 from 6.7 million shares in 2Q18, following the acquisition of Clover Community Bankshares, Inc., ("Clover") and its subsidiary bank, Clover Community Bank on January 1, 2019 that was described in more detail in the Company's first quarter 2019 earnings release.

The Company recognized expenses and income in each period that were related to its acquisition.  These items, net of tax, reduced income by $43,000 in 2Q19 and by $287,000 in 2Q18 when the Company began incurring investment banking, legal, and due diligence fees for the Clover acquisition.  Adjusted net income, which excludes these merger-related items and is a non-GAAP (Generally Accepted Accounting Principles) measure, was $1,861,000 in 2Q19 and $797,000 in 2Q18.  On a diluted per share basis, adjusted net income was $0.20 in 2Q19 and $0.12 in 2Q18.  See the non-GAAP reconciliation table that accompanies this release.

For the linked quarter ended March 31, 2019, net income was $337,000 or $0.04 per diluted share and adjusted net income was $1,710,000 or $0.18, per diluted share.

Jerry Ocheltree, President and CEO, stated, "We are pleased with the results of the second quarter including higher net income and improved ROA, ROE, and efficiency ratios following a successful integration of the Clover franchise during the first quarter.  We have a stronger team that serves a larger portion of the Charlotte MSA and have generated profits for capital support of our planned asset growth.  In the second half of 2019 we will work each day to serve our customers well and to be responsive to their financial needs, while at the same time working toward the planned merger and successful integration into Carolina Financial Corporation and its subsidiary, CresCom Bank.  As part of this larger community bank, we are excited about continuing the highest level of service with an anticipated wider array of products as part of the Carolina Financial team led by Jerry Rexroad and his experienced and dedicated executives." 

The table below summarizes the key components of net income for 2Q19 and 2Q18.

$ in thousands For the three months ended    
  June 30, 2019 June 30, 2018 Increase
(Decrease)
% Change
Interest income $ 7,403   $ 5,198   $ 2,205   42 %
Interest expense   1,548     1,155     393   34 %
Net interest income   5,855     4,043     1,812   45 %
Provision for loan loss   76     88     (12 ) (14 %)
Noninterest income   664     366     298   81 %
Noninterest expense, excluding merger expenses   4,059     3,297     762   23 %
Merger expenses   49     323     (274 ) (85 %)
Pre-tax income   2,335     701     1,634   233 %
Income tax expense   517     191     326   171 %
Net income $ 1,818   $ 510      1,308   256 %
         
Non-GAAP measurements:        
Net income $ 1,818   $ 510      
Adjustments:        
+ Merger expenses   49     323      
- Accretion of purchased loan discounts   (132 )   (2 )    
- Accretion of purchased time deposit discounts   10     -      
+ Amortization of core deposit intangible   125     9      
- Net tax effect of adjustments   (9 )   (43 )    
= Adjusted net income $ 1,861   $ 797   $ 1,064   134 %
         
Return on assets  
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