LINCOLNTON, N.C., Oct. 19, 2015 (GLOBE NEWSWIRE) -- Carolina Trust Bank (Nasdaq:CART) today reported net income available to common shareholders of $372,000 for the third quarter 2015 or $0.08 per diluted common share compared to second quarter 2015 net income of $302,000 or $0.08 per diluted common share.
Before payment of dividends on preferred shares, Carolina Trust Bank had net income of $431,000 for the third quarter 2015. Third quarter 2015 net income reflected an effective tax rate of 51.95% compared to untaxed net income available to common shareholders of $678,000 or $0.15 per diluted share for the third quarter 2014. The effective tax rate for the current quarter was elevated above normal levels due to the State of North Carolina reducing its corporate tax rate to 4% for 2016. This resulted in a $100,000 unfavorable adjustment to the Bank’s deferred tax asset. Income before taxes for the third quarter 2015 was $898,000 compared to $737,000 for the same quarter a year ago.
Improving asset quality resulted in the reversal of $170,000 from past provisions set aside for loan losses. Total loans increased by $8.16 million in the third quarter. On a year-over-year basis, loans increased $58.54 million or 25.68%. Deposits increased by $9.20 million in the third quarter and $53.79 million or 23.23% from a year ago.
“We maintained excellent net margins and strong loan demand,” said President and Chief Executive Officer Jerry L. Ocheltree. “The quality of our portfolio resulted in a negative provision for loan losses, which certainly is welcomed news. Asset quality continues to show improvement each quarter.”
Selected Financial Highlights
Year-Over-Year
September 30, 2015 compared to September 30, 2014
- Total loans increased $58.54 million or 25.68%
- Total deposits increased $53.79 million or 23.22%
- Net interest margin was 4.17% compared to 4.36%
- Net interest income increased $487,000 or 17.36%
- Total nonperforming assets decreased $1.10 million or 20.51 %
Linked-Quarter
September 30, 2015 compared to June 30, 2015
Income Statement
- Total revenues, less interest expense, increased $215,000
-- Net interest income increased $221,000 or 7.20%
-- Non-interest income decreased $4,000 or 1.32%
-- Interest expense increased $23,000 or 3.99%
-- Non-interest expense increased $106,000 or 3.84%
Balance Sheet
- Total assets of $332.36 million decreased $1.06 million or 0.32%
- Total deposits of $285.39 million increased $9.20 million or 3.33%
- Total loans of $286.47 million increased $8.16 million or 2.93%
- Reserve for loan loss of $3.83 million decreased $61,000 or 1.57%
- Total shareholders' equity of $30.55 million increased $436,000 or 1.45%
Credit Quality
- Total nonperforming assets decreased $1.42 million or 25.04%
- Other Real Estate Owned decreased $163,000 or 6.99%
- Non-accrual loans decreased $1.26 million or 39.03%
- Net loan charge-offs to average loans were -0.04%
Capital for the Bank exceeded "well-capitalized" requirements for each of the four primary capital levels monitored by state and federal regulators. As of September 30, 2015, Common equity tier 1 capital ratio was 8.67%; Tier 1 capital ratio was 8.78%; Total capital ratio was 10.03%; and Tier 1 leverage ratio was 8.12%.
Revenue
Total revenues, less interest expense, increased $217,000 from the previous quarter and $555,000 from the quarter ended September 30, 2014. Interest income was $3.89 million compared to $3.65 million for the prior quarter and $3.29 million for the same period a year ago. Net interest income increased $221,000 from the second quarter 2015 and $487,000 from a year ago. Non-interest expense increased $106,000 from the previous quarter.
Balance Sheet
Total assets at September 30, 2015, decreased $1.06 million or 0.32% from the previous quarter, but increased $62.29 million or 23.06% from September 30, 2014. Total deposits of $285.39 million at September 30, 2015, increased $9.20 million or 3.33% from June 30, 2015, and $53.79 million or 23.22% from a year ago.
Total loans were $286.47 million at September 30, 2015, up 2.93% from the previous quarter, and 25.68% from September 30, 2014. Reserve for loan loss was $3.83 million at September 30, 2015, decreasing from $3.89 million from the previous quarter, and $4.17 million from a year ago.
Asset Quality
Total nonperforming assets of $4.25 million at September 30, 2015, decreased $1.42 million from the prior quarter, and $1.10 million from September 30, 2014. Non-accrual loans of $1.96 million at September 30, 2015, decreased $1.26 million from the previous quarter and $1.12 million from September 30, 2014.
Other Real Estate Owned decreased $163,000 from June 30, 2015, and $93,000 from a year ago. Nonperforming assets were 1.28% of total assets at September 30, 2015, compared to 1.70% at June 30, 2015, and 1.98% at September 30, 2014. Allowance for loan losses to total loans was 1.34% at September 30, 2015, compared to 1.40% at June 30, 2015, and 1.83% at September 30, 2014.
Performance Ratios
Annualized return on average assets was 0.51% at September 30, 2015, compared to 0.46% for quarter ended June 30, 2015, and 1.08% for quarter ended September 30, 2014. Annualized return on average equity was 5.58% at September 30, 2015, compared to 4.74% for the quarter ended June 30, 2015, and 11.94% for the quarter ended September 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) | |||||||||||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
| Balance Sheet Data: | |||||||||||||||
| Total Assets | $ | 332,359 | $ | 333,414 | $ | 305,545 | $ | 293,041 | $ | 270,072 | |||||
| Total Deposits | $ | 285,385 | $ | 276,183 | $ | 259,711 | $ | 237,176 | $ | 231,600 | |||||
| Total Loans | $ | 286,469 | $ | 278,305 | $ | 257,919 | $ | 244,646 | $ | 227,933 | |||||
| Reserve for Loan Loss | $ | 3,825 | $ | 3,886 | $ | 3,954 | $ | 4,002 | $ | 4,165 | |||||
| Total Shareholders Equity | $ | 30,547 | $ | 30,111 | $ | 30,189 | $ | 29,807 | $ | 24,650 | |||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| For the three months ended | |||||||||||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
| Income and Per Share Data: | |||||||||||||||
| Interest Income | $ | 3,891 | $ | 3,647 | $ | 3,412 | $ | 3,293 | $ | 3,292 | |||||
| Interest Expense | 599 | 576 | 535 | 498 | 487 | ||||||||||
| Net Interest Income | 3,292 | 3,071 | 2,877 | 2,795 | 2,805 | ||||||||||
| Provision for (recovery of) Loan Loss | (170 | ) | - | - | - | - | |||||||||
| Net Interest Income After Provision | 3,462 | 3,071 | 2,877 | 2,795 | 2,805 | ||||||||||
| Non-interest Income | 300 | 304 | 236 | 275 | 232 | ||||||||||
| Non-interest Expense | 2,864 | 2,758 | 2,812 | 2,710 | 2,300 | ||||||||||
| Income Before Taxes | 898 | 617 | 301 | 360 | 737 | ||||||||||
| Income Tax Expense (benefit) | 466 | 256 | 125 | (4,539 | ) | - | |||||||||
| Net Income | 432 | 361 | 176 | 4,899 | 737 | ||||||||||
| Preferred Stock Dividend | 59 | 59 | 59 | 59 | 59 | ||||||||||
| Income available to common shareholders | $ | 373 | $ | 302 | $ | 117 | $ | 4,840 | $ | 678 | |||||
| Net Income Per Common Share: | |||||||||||||||
| Basic | $ | 0.08 | $ | 0.07 | $ | 0.03 | $ | 1.04 | $ | 0.15 | |||||
| Diluted | $ | 0.08 | $ | 0.06 | $ | 0.03 | $ | 1.04 | $ | 0.15 | |||||
| Average Common Shares Outstanding: | |||||||||||||||
| Basic | 4,645,975 | 4,645,975 | 4,643,666 | 4,635,215 | 4,635,172 | ||||||||||
| Diluted | 4,721,188 | 4,685,122 | 4,680,116 | 4,669,888 | 4,677,837 | ||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
| Capital Ratios: | |||||||||||||||
| Common equity tier 1 capital ratio | 8.67 | % | 7.77 | % | 8.07 | % | n/a | n/a | |||||||
| Tier 1 capital ratio | 8.78 | % | 8.62 | % | 9.00 | % | 9.77 | % | 10.53 | % | |||||
| Total Capital ratio | 10.03 | % | 9.88 | % | 10.25 | % | 11.03 | % | 11.79 | % | |||||
| Tier 1 leverage ratio | 8.12 | % | 8.28 | % | 8.53 | % | 9.02 | % | 9.10 | % | |||||
| Tangible Common Equity | $ | 27,778 | $ | 27,304 | $ | 27,385 | $ | 26,965 | $ | 21,805 | |||||
| Common Shares Outstanding | 4,645,975 | 4,645,755 | 4,645,755 | 4,635,422 | 4,635,172 | ||||||||||
| Book Value Per Common Share | $ | 5.98 | $ | 5.88 | $ | 5.89 | $ | 5.82 | $ | 4.70 | |||||
| Performance Ratios (annualized): | |||||||||||||||
| Return on Average Assets (%) | 0.51 | % | 0.46 | % | 0.24 | % | 7.35 | % | 1.08 | % | |||||
| Return on Average Equity (%) | 5.58 | % | 4.74 | % | 2.35 | % | 78.68 | % | 11.94 | % | |||||
| Net Interest Margin (%) | 4.17 | % | 4.18 | % | 4.19 | % | 4.20 | % | 4.36 | % | |||||
| Asset Quality: | |||||||||||||||
| Delinquent Loans ( 30-89 days accruing interest) | $ | 2,667 | $ | 2,119 | $ | 2,813 | $ | 2,631 | $ | 2,569 | |||||
| Delinquent Loans ( 90 days or more and accruing) | 115 | 114 | 112 | 174 | - | ||||||||||
| Non-accrual Loans | $ | 1,964 | $ | 3,221 | $ | 3,450 | $ | 3,991 | $ | 3,082 | |||||
| OREO and repossessed property | 2,168 | 2,331 | 2,328 | 2,048 | 2,261 | ||||||||||
| Total Nonperforming Assets | $ | 4,247 | $ | 5,666 | $ | 5,890 | $ | 6,213 | $ | 5,343 | |||||
| Restructured Loans | $ | 4,788 | $ | 4,338 | $ | 4,436 | $ | 4,871 | $ | 4,765 | |||||
| Nonperforming Assets to Total Assets | 1.28 | % | 1.70 | % | 1.93 | % | 2.12 | % | 1.98 | % | |||||
| Nonperforming Assets to Equity Capital & ALLL | 12.36 | % | 16.67 | % | 17.25 | % | 18.38 | % | 18.54 | % | |||||
| Allowance for Loan Losses to Non-performing Assets | 90.06 | % | 68.58 | % | 67.13 | % | 64.41 | % | 77.95 | % | |||||
| Allowance for Loan Losses to Total Loans | 1.34 | % | 1.40 | % | 1.53 | % | 1.64 | % | 1.83 | % | |||||
| Net Loan Charge-Offs (recoveries) | $ | (108 | ) | $ | 68 | $ | 48 | $ | 162 | $ | (22 | ) | |||
| Net Loan Charge-Offs to Average Loans (%) | -0.04 | % | 0.03 | % | 0.02 | % | 0.07 | % | -0.01 | % | |||||
| Note: Financial information is unaudited. | |||||||||||||||