Carolina Trust Bank Reports Profit for First Quarter 2013

Carolina Trust Bank Reports Profit for First Quarter 2013

'Economy continues to show signs of recovery; loan production strong'

LINCOLNTON, N.C., April 26, 2013 (GLOBE NEWSWIRE) -- Carolina Trust Bank
(Nasdaq:CART) today reported net income of $32,000 for the quarter ended March
31, 2013, or $0.01 per diluted common share available to common shareholders,
compared to net income of $562,000 for the same period in 2012, or $0.12 per
diluted common share available to common shareholders. Excluding payment of
dividends on preferred shares, the bank realized net income of $77,000 for the
first quarter of 2013.

On a link-quarter basis, first-quarter results compared to a net loss of
$572,000 at Dec. 31, 2012, or $0.12 per diluted common share attributable to
common shareholders. Though earnings were affected by a loan loss provision of
$413,000, the allowance set aside for problem loans was the bank's lowest in
four quarters.

"The economy continues to show signs of recovery and our loan production is
strong. This past quarter we booked $12.3 million in new loans; we also have a
significant number of loans in our pipeline," said President and CEO Mike
Cline.

"In the past few years we have developed a reliable income stream that has
provided stability in a difficult economic climate," Cline said. "The strength
of our core fundamentals is the primary reason we continue to make progress
and maintain strong capital levels."

First Quarter 2013 Financial Highlights

Balance Sheet

  *Total assets were $275.60 million at March 31, 2013, compared to $271.05
    million at Dec. 31, 2012, and $276.37 at March 31, 2012.
  *Deposits totaled $240.59 million at March 31, 2013, compared to $233.86
    million at Dec. 31, 2012, and $231.92 million at March 31, 2012.
  *Total loans were $215.98 at March 31, 2013, compared to $221.48 million at
    Dec. 31, 2012, and $217.88 million at March 31, 2012.
  *Total Shareholders' Equity was $24.87 million at March 31, 2013, compared
    to $24.94 million at Dec. 31, 2012, and $26.57 million at March 31, 2012.

Income Statement

  *Total revenues, less interest expense, were $2.76 million in the first
    quarter of 2013, compared to $3.02 million at Dec. 31, 2012, and $2.77
    million at March 31, 2012.
  *Net interest income was $2.51 million in the first quarter of 2013, down
    from $2.68 million at Dec. 31, 2012, but essentially flat from the same
    period a year ago.
  *Interest expense in the first quarter of 2013 was $588,000, compared to
    $648,000 at Dec. 31, 2012, and $791,000 at March 31, 2012.
  *Net Interest margin was 4.00% at March 31, 2013, compared to 4.27% at Dec.
    31, 2012, and 3.99% at March 31, 2012.

Credit Quality

  *Total nonperforming assets were $12.65 million at March 31, 2013, compared
    to $12.66 million at Dec. 31, 2012, and $10.75 million at March 31, 2012.
  *Nonperforming assets to total assets were 4.59% at March 31, 2013,
    compared to 4.67% at Dec. 31, 2012, and 3.89% at March 31, 2012.
  *Non-accrual loans were $9.11 million at March 31, 2013, compared to $8.50
    million at Dec. 31, 2012, and $6.29 million at March 31, 2012.
  *Net loan charge-offs were $350,000 at March 31, 2013, compared to $773,000
    at Dec. 31, 2012, and $172,000 for the quarter ended March 31, 2012.

Review of Balance Sheet

Total assets of $275.60 million at March 31, 2013, increased by $4.55 million
from Dec. 31, 2012, but declined marginally from $276.37 million at March 31,
2012. Total deposits increased to $240.59 million in the first quarter of
2013, up $6.73 million from Dec. 31, 2012, and $8.67 million from March 31,
2012. Total loans were $215.98 million at March 31, 2013, down $5.50 million
from the previous quarter, due primarily to early pay-offs and the transfer of
problems loans to Other Real Estate Owned.

Carolina Trust Bank continues to maintain strong capital levels that exceed
regulatory requirements for being "well-capitalized." At March 31, 2013, the
bank reported Tier 1 Leverage Ratio of 8.71%, Tier 1 Risk-based Capital Ratio
of 10.79%, and Total Risk-based Capital Ratio of 12.05%.

Review of Income Statement

Net interest margin fell slightly to 4.00% on a link-quarter basis, due
primarily to competitive pricing of loans in the marketplace. However, ongoing
management of funding costs continued to contribute to the strength of the
bank's margin. Interest expense, which has trended favorably for 13 straight
quarters, declined $60,000 from Dec. 31, 2012, and $203,000 from March 31,
2012.

Net interest income was $2.51 million in the first quarter of 2013, down
$169,000 from the previous quarter, but essentially flat from the quarter
ended March 31, 2012. Non-interest income of $251,000 in the first quarter of
2013 declined $97,000 from Dec. 31, 2012, and $8,000 from March 31, 2012.
Non-interest expense trended favorably lower in the first quarter of 2013 to
$2.27 million, down $325,000 from the previous quarter, but up $309,000 from
March 31, 2012. Provision for loan loss was $413,000 for the quarter ended
March 31, 2013, down $687,000 from Dec. 31, 2012, but up $189,000 from March
31, 2012.

Review of Credit Quality

Total nonperforming assets, which include foreclosed property and non-accrual
loans, were $12.65 million at March 31, 2013, down slightly from the $12.66
million reported at Dec. 31, 2012, but up $1.90 million from a year ago.
Allowance for loan losses to nonperforming assets were 38.23% at March 31,
2013, slightly higher than 37.69% at Dec. 31, 2012, but down from 41.09% at
March 31, 2012.

Loans 30 to 89 days past due were $2.84 million at March 31, 2013, declining
$804,000 from Dec. 31, 2012, and $1.27 million from March 31, 2012.
Non-accrual loans were $9.11 million at March 31, 2013, compared to $8.49
million at Dec. 31, 2012, and $6.29 million at March 31, 2012. Property held
in foreclosure declined to $3.54 million in the first quarter of 2013, from
$4.17 million at Dec. 31, 2012, and from $4.46 million at March 31, 2012. On a
year-over-year basis, Carolina Trust reduced the carrying amount of foreclosed
property by $917,000.

Net loan charge-offs declined to $350,000 for the quarter ended March 31,
2013, down $423,000 from the quarter ended Dec. 31, 2012, but up $179,000 from
the quarter ended March 31, 2012. Net loan charge-offs to average loans was
0.16% for the quarter ended March 31, 2013, compared to 0.35% for the quarter
ended Dec. 31, 2012, and 0.08% for the quarter ended March 31, 2012.

Carolina Trust Bank is a full service state chartered bank headquartered in
Lincolnton, N.C., operating six full service branches in Lincoln, Catawba and
Gaston Counties in western North Carolina and loan production offices in
Forest City, NC and 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)
                    March 31   December 31 September 30 June 30    March 31
                    2013       2012        2012         2012       2012
Balance Sheet Data:                                             
Total Assets         275,597   271,051    283,164     283,829   276,365
Total Deposits       240,589   233,861    241,140     239,883   231,924
Total Loans          215,984   221,480    223,717     223,357   217,875
Reserve for Loan     4,836     4,773      4,383       4,534     4,417
Loss
Total Shareholders   24,871    24,935     26,977      27,004    26,566
Equity
                                                               
                                                               
                    (Dollars in thousands, except per share data)
                    For the three months ended
                    March 31   December 31 September 30 June 30    March 31
                    2013       2012        2012         2012       2012
Income and Per Share                                            
Data:
Interest Income      3,095     3,324      3,374       3,339     3,299
Interest Expense     588       648        695         742       791
Net Interest Income  2,507     2,676      2,679       2,597     2,508
Provision for Loan   413       1,100      572         471       224
Loss
Net Interest Income  2,094     1,576      2,107       2,126     2,284
After Provision
Non-interest Income  251       348        332         342       259
Non-interest Expense 2,268     2,593      2,511       2,094     1,959
Income (loss) Before 77        (669)      (72)        374       584
Taxes
Income Tax Expense   --        --         --          --        --
(benefit)
Net Income (loss)    77        (669)      (72)        374       584
                                                               
Preferred Stock      45        (97)       73          73        22
Dividend
                                                               
Income available
(loss) attributable  32        (572)      (145)       301       562
to common
shareholders
                                                               
Net Income (loss)                                               
Per Common Share:
Basic                0.01      (0.12)     (0.03)      0.07      0.12
Diluted              0.01      (0.12)     (0.03)      0.07      0.12
Average Common                                                  
Shares Outstanding:
Basic                4,634,482 4,634,482  4,634,286   4,634,286 4,634,262
Diluted              4,637,422 4,634,482  4,634,286   4,634,286 4,634,262
                                                               
                                                               
                                                               
                    March 31   December 31 September 30 June 30    March 31
                    2013       2012        2012         2012       2012
Capital Ratios:                                                 
Tier 1 Leverage      8.71%      8.61%       9.14%        9.33%      9.49%
Ratio
Tier 1 Risk-based    10.79%     10.60%      11.16%       11.20%     11.35%
Capital Ratio
Total Risk-based     12.05%     11.86%      12.41%       12.46%     12.61%
Capital Ratio
                                                               
Tangible Common      21,529    21,581     22,262      22,285    21,509
Equity
Common Shares        4,634,482 4,634,482  4,634,482   4,634,482 4,634,262
Outstanding
Book Value Per       4.65      4.66       4.80        4.81      4.64
Common Share
                                                               
Performance Ratios:                                             
Return on Average    0.11%      -0.95%      -0.10%       5.40%      0.87%
Assets (%)
Return on Average    1.24%      -9.93%      -1.04%       5.57%      8.91%
Equity (%)
Net Interest Margin  4.00%      4.27%       4.14%        3.99%      3.99%
(%)
                                                               
Asset Quality:                                                  
Delinquent Loans (   2,835     3,639      2,751       4,599     4,102
30-89 days )
                                                               
Delinquent Loans (   --        --         --          --        1
90 days or more )
Non-accrual Loans    9,107     8,494      5,957       6,739     6,290
OREO and repossessed 3,542     4,169      4,127       4,876     4,459
property
Total Nonperforming  12,649    12,663     10,084      11,615    10,750
Assets
                                                               
Restructured Loans   4,711     4,983      3,413       3,229     4,106
                                                               
Nonperforming Assets 4.59%      4.67%       3.56%        4.09%      3.89%
to Total Assets
Nonperforming Assets
to Equity Capital &  42.58%     42.62%      32.16%       36.83%     34.70%
ALLL
Allowance for Loan
Losses to            38.23%     37.69%      43.46%       39.04%     41.09%
Non-performing
Assets
Allowance for Loan
Losses to Total      2.24%      2.16%       1.96%        2.03%      2.03%
Loans
Net Loan             350        773         761          355        172
Charge-Offs
Net Loan Charge-Offs 0.16%      0.35%       0.34%        0.16%      0.08%
to Average Loans (%)
                                                               
Note: Financial
information is                                                  
unaudited.

CONTACT: J. Michael Cline
         President and CEO
         Carolina Trust Bank
         (704) 735-1104
 
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