Carolina Trust Bank Announces First Quarter Results

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Apr 28, 2010, 05:44 ET

LINCOLNTON, N.C., April 28 /PRNewswire-FirstCall/ -- Carolina Trust Bank (Nasdaq: CART) reported a net profit of $452,000 for the quarter ended March 31, 2010 compared to a net profit of $1,000 for the same period last year. After adjusting for $69,000 in dividends and accretion on preferred stock, net income available to common shareholders was $383,000 for the quarter ended March 31, 2010 compared to a loss of ($41,000) for the same period in 2009. Basic and diluted earnings per share were $0.15 for the quarter ended March 31, 2010 compared to ($0.02) for the quarter ended March 31, 2009.

As of March 31, 2010 the bank reported total assets of $274,662,000, which were up 60% over the same period in 2009. Total deposits were up 72% to $232,510,000 and total loans were up 49% to $216,825,000 over March 31, 2009.

J. Michael Cline, President and CEO stated, although we have only seen a slight up swing in our local economy, the increased volume we have as a result of our acquisition of Carolina Commerce Bank in the fourth quarter last year has given us an 85% increase in net interest income while we have only increased other expenses 39%. Our net interest margin increased to 4.01% for the quarter ended March 31, 2010 from 2.83% for the same quarter in 2009.

We are concerned about the continuing decline of real estate values especially as it relates to commercial real estate. In the first quarter this year we added $514,000 to our provision for loan losses compared to $24,000 for the same period last year.

As we continue to operate in an extremely tough economic environment we will as always operate Carolina Trust Bank in a safe and sound manner.

Carolina Trust Bank is a full service state chartered bank headquartered in Lincolnton, N.C. operating out of six full service branches in Lincoln, Catawba and Gaston Counties and a loan production office in Rutherford County. Its common stock is traded on the NASDAQ under the symbol CART.

*Carolina Trust Bank*

		(Dollars in thousands)
		March 31
		2010	2009
Balance Sheet Data:
Total Assets		274,662	171,631
Total Deposits		232,510	135,240
Total Loans		216,825	145,625
Reserve for Loan Loss		2,996	2,466
Total Shareholders Equity		22,402	20,142


	(Dollars in thousands, except per share data)
	For the three months ended
		March 31
		2010	2009
Income and Per Share Data:
Interest Income		3,693	2,149
Interest Expense		1,192	1,052
Net Interest Income		2,501	1,096
Provision for Loan Loss		514	24
Net Interest Income After Provision		1,987	1,072
Other Income		312	254
Other Expense		1,847	1,326
Income (loss) Before Taxes		452	1
Income Tax Expense (benefit)		-	-
Net Income		452	1

Preferred Stock Dividend		69	42

Income available to common shareholders		383	(41)

Net Income Per Share:*
Basic		0.15	(0.02)
Diluted		0.15	(0.02)
Average Shares Outstanding:
Basic		2,534,262	1,761,410
Diluted		2,534,262	1,761,410


Asset Quality:
Net Loan Charge-Offs		731	6
Net Loan Charge-Offs to Average Loans (%)		0.33%	0.00%

Performance Ratios:
Return on Average Assets (%)		0.67%	0.00%
Return on Average Equity (%)		8.21%	0.01%
Net Interest Margin (%)		4.01%	2.83%


Note: All 2010 information is unaudited.