Loan growth of $5.40 million or 2.43% contributes to third quarter results;
Net income increases 10.16% on linked-quarter basis
CTB reports net income of $1.96 million for first nine months of 2014
LINCOLNTON, N.C., Oct. 16, 2014 (GLOBE NEWSWIRE) -- Carolina Trust Bank (Nasdaq:CART) today reported net income available to common shareholders of $678,000 for the third quarter 2014 or $0.15 per diluted common share, compared to $200,000 for the same quarter a year ago or $0.04 per diluted common share. Results reflect an increase of $478,000 or 239% compared to the quarter ended September 30, 2013.
Net income available to common shareholders for the third quarter increased $68,000 or 11.15% on a linked-quarter basis. These results compared to $610,000 for the quarter ended June 30, 2014 or $0.13 per diluted common share. For the first nine months of 2014, Carolina Trust reported net income available to common shareholders of $1.79 million compared to a net loss attributable to common shareholders of $1.26 million for the same period in 2013. Excluding payment of dividends on preferred shares, the bank earned $737,000 for the third quarter.
"Without question, the 2.43% growth of our loan portfolio in one three-month period is a remarkable achievement, particularly in a recovering economy," said President and CEO Jerry L. Ocheltree. "As markets rebound and small business expands, we are adding lenders and staff in preparation for 2015. We recently brought on board two experienced lenders knowledgeable of the Mooresville, NC market where we expect to open a second loan production office by month-end."
Selected Financial Highlights
Year-Over-Year Comparisons
September 30, 2014 compared to September 30, 2013
- Net interest income increased $39,000 or 1.41%
- Interest expense decreased $34,000 or 6.53%
- Non-interest income decreased $27,000 or 10.42%
- Non-interest expense decreased $77,000 or 3.24%
- Net interest margin was 4.36% compared to 4.37%
- Net interest income after provision for loan losses increased $438,000 or 18.50%
Linked-Quarter Comparisons
September 30, 2014 compared to June 30, 2014
Income Statement
-
Total revenues, less interest expense, up $5,000 from June 30, 2014
- Net interest income increased $20,000 or 0.72%
- Net interest income after provision for loan losses decreased $105,000 or 3.61%
- Interest expense increased $3,000 or 0.62%
- Non-interest expense decreased $188,000 or 7.56%
Balance Sheet
- Total deposits of $231.60 million increased $759,000 or 0.33%
- Total loans of $227.93 million increased $5.40 million or 2.43%
- Total assets of $270.07 million increased $2.45 million or 0.92%
- Reserve for loan losses of $4.17 million increased $22,000 or 0.53%
- Total shareholders' equity of $24.65 million increased $681,000 or 2.84%
Credit Quality
- Total nonperforming assets increased $305,000 or 6.05%
- Other Real Estate Owned decreased $10,000 or 0.44%
- Non-accrual loans increased $315,000 or 11.38%
- Net recoveries of loans previously charged-off were $22,000 or 0.01% of average total loans
Capital levels, exceeding "well-capitalized" requirements, improved from June 30, 2014 in each of the three primary categories monitored by state and federal regulators: Tier 1 Leverage Ratio was 9.10% compared to 8.92%; Tier 1 Risk-based Capital Ratio was 10.53% compared to 10.51%; and Total Risk-based Capital Ratio was 11.79% compared to 11.77%.
Revenue
Loan growth, asset quality, net interest margin, and expense control drove third quarter profits in 2014. Non-interest expense declined $188,000 or 7.56%. With loans up $5.40 million, interest income for the year peaked in the third quarter at $3.29 million.
Balance Sheet
Total shareholder equity of $24.65 million at September 30, 2014 increased $681,000 from June 30, 2014, and $1.68 million from September 30, 2013. Total deposits of $231.60 million at September 30, 2014 increased $759,000 from June 30, 2014 and decreased $1.38 million from September 30, 2013. Total loans of $227.93 million at September 30, 2014 increased $5.40 million from June 30, 2014 and $5.34 million from September 30, 2013. Total assets of $270.07 million at September 30, 2014 increased $2.45 million from June 30, 2014 and $1.52 million from September 30, 2013. Reserve for loan losses of $4.17 million at September 30, 2014 increased $22,000 from June 30, 2014 and $180,000 from September 30, 2013.
Asset Quality
Some measures of asset quality slipped marginally, but fell within management's expectations as ongoing and effective monitoring of the bank's portfolio remained a top priority. Total nonperforming assets were $5.34 million at September 30, 2014, an increase of 6.05% from June 30, 2014, and decreased 34.08% from September 30, 2013. Other Real Estate Owned decreased 0.44% from June 30, 2014 and 43.73% from September 30, 2013. Nonperforming assets were 1.98% of total assets at September 30, 2014, compared to 1.88% at June 30, 2014, and 3.02% at September 30, 2013. Nonperforming assets to equity capital and allowance for loan and lease losses increased to 18.54% at September 30, 2014 from 17.92% at June 30, 2014, and decreased from 30.07% at September 30, 2013.
Delinquent loans 30 to 89 days past due were $2.57 million at September 30, 2014, up $350,000 from June 30, 2014, and down $748,000 from September 30, 2013. Non-accrual loans were $3.08 million at September 30, 2014, compared to $2.77 million at June 30, 2014 and $4.09 million at September 30, 2013.
Performance Ratios
Annualized return on average assets was 1.08% for the quarter ended September 30, 2014, compared to 1.00% for the quarter ended June 30, 2014, and 0.37% for the quarter ended September 30, 2013. Return on average equity was 11.94% for the quarter ended September 30, 2014, compared to 11.42% for the quarter ended June 30, 2014, and 4.32% for the quarter ended September 30, 2013.
Carolina Trust Bank is a full service state chartered bank headquartered in Lincolnton, N.C., operating seven full service branches in Lincoln, Catawba, Gaston and Rutherford Counties in western North Carolina and a loan production office in Hickory, 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) | |||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |
| 2014 | 2014 | 2014 | 2013 | 2013 | |
| Balance Sheet Data: | |||||
| Total Assets | $ 270,072 | $ 267,618 | $ 266,549 | $ 266,435 | $ 268,555 |
| Total Deposits | $ 231,600 | $ 230,841 | $ 230,646 | $ 228,885 | $ 232,978 |
| Total Loans | $ 227,933 | $ 222,529 | $ 221,887 | $ 223,891 | $ 222,594 |
| Reserve for Loan Loss | $ 4,165 | $ 4,143 | $ 4,165 | $ 4,066 | $ 3,985 |
| Total Shareholders Equity | $ 24,650 | $ 23,969 | $ 23,068 | $ 22,256 | $ 22,973 |
| (Dollars in thousands, except per share data) | |||||
| For the three months ended | |||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |
| 2014 | 2014 | 2014 | 2013 | 2013 | |
| Income and Per Share Data: | |||||
| Interest Income | $ 3,292 | $ 3,269 | $ 3,187 | $ 3,270 | $ 3,287 |
| Interest Expense | 487 | 484 | 481 | 492 | 521 |
| Net Interest Income | 2,805 | 2,785 | 2,706 | 2,778 | 2,766 |
| Provision for Loan Loss | -- | (125) | 45 | 637 | 399 |
| Net Interest Income After Provision | 2,805 | 2,910 | 2,661 | 2,141 | 2,367 |
| Non-interest Income | 232 | 247 | 242 | 241 | 259 |
| Non-interest Expense | 2,300 | 2,488 | 2,350 | 2,713 | 2,377 |
| Income (loss) Before Taxes | 737 | 669 | 553 | (331) | 249 |
| Income Tax Expense (benefit) | -- | -- | -- | -- | -- |
| Net Income (loss) | 737 | 669 | 553 | (331) | 249 |
| Preferred Stock Dividend | 59 | 59 | 51 | 49 | 49 |
| Income available (loss attributable) to common shareholders | $ 678 | $ 610 | $ 502 | $ (380) | $ 200 |
| Net Income (loss) Per Common Share: | |||||
| Basic | $ 0.15 | $ 0.13 | $ 0.11 | $ (0.08) | $ 0.04 |
| Diluted | $ 0.15 | $ 0.13 | $ 0.11 | $ (0.08) | $ 0.04 |
| Average Common Shares Outstanding: | |||||
| Basic | 4,635,172 | 4,635,097 | 4,634,894 | 4,634,702 | 4,634,702 |
| Diluted | 4,677,837 | 4,645,291 | 4,649,981 | 4,634,702 | 4,639,053 |
| September 30 | June 30 | March 31 | December 31 | September 30 | |
| 2014 | 2014 | 2014 | 2013 | 2013 | |
| Capital Ratios: | |||||
| Tier 1 Leverage Ratio | 9.10% | 8.92% | 8.51% | 8.24% | 8.44% |
| Tier 1 Risk-based Capital Ratio | 10.53% | 10.51% | 10.01% | 9.54% | 9.84% |
| Total Risk-based Capital Ratio | 11.79% | 11.77% | 11.27% | 10.80% | 11.09% |
| Tangible Common Equity | $ 21,805 | $ 21,107 | $ 20,187 | $ 19,358 | $ 20,072 |
| Common Shares Outstanding | 4,635,172 | 4,635,172 | 4,634,952 | 4,634,702 | 4,634,702 |
| Book Value Per Common Share | $ 4.70 | $ 4.55 | $ 4.36 | $ 4.18 | $ 4.33 |
| Performance Ratios: | |||||
| Return on Average Assets (%) | 1.08% | 1.00% | 0.84% | -0.49% | 0.37% |
| Return on Average Equity (%) | 11.94% | 11.42% | 9.83% | -5.78% | 4.32% |
| Net Interest Margin (%) | 4.36% | 4.42% | 4.35% | 4.37% | 4.37% |
| Asset Quality: | |||||
| Delinquent Loans ( 30-89 days accruing interest) | $ 2,569 | $ 2,219 | $ 1,943 | $ 2,219 | $ 3,317 |
| Delinquent Loans ( 90 days or more ) | -- | -- | -- | 517 | -- |
| Non-accrual Loans | $ 3,082 | $ 2,767 | $ 3,603 | $ 3,286 | $ 4,087 |
| OREO and repossessed property | 2,261 | 2,271 | 3,234 | 3,908 | 4,018 |
| Total Nonperforming Assets | $ 5,343 | $ 5,038 | $ 6,837 | $ 7,711 | $ 8,105 |
| Restructured Loans | $ 4,765 | $ 4,343 | $ 5,546 | $ 4,219 | $ 5,247 |
| Nonperforming Assets to Total Assets | 1.98% | 1.88% | 2.57% | 2.89% | 3.02% |
| Nonperforming Assets to Equity Capital & ALLL | 18.54% | 17.92% | 25.11% | 29.29% | 30.07% |
| Allowance for Loan Losses to Non-performing Assets | 77.95% | 82.24% | 60.92% | 52.73% | 49.17% |
| Allowance for Loan Losses to Total Loans | 1.83% | 1.86% | 1.88% | 1.82% | 1.79% |
| Net Loan Charge-Offs (recoveries) | $ (22) | $ (102) | $ (54) | $ 555 | $ 474 |
| Net Loan Charge-Offs to Average Loans (%) | -0.01% | -0.05% | -0.02% | 0.25% | 0.21% |
| Note: Financial information is unaudited. | |||||