Carolina Trust Bank Reports Third Quarter 2013 Profit

Carolina Trust Bank Reports Third Quarter 2013 Profit

Positive Results Driven by Higher Net Interest Income and Lower Provision;
Loan Production and Net Interest Margin Remain Strong

LINCOLNTON, N.C., Oct. 21, 2013 (GLOBE NEWSWIRE) -- Carolina Trust Bank
(Nasdaq:CART) today reported net income of $200,000 for the third quarter
2013, or $0.04 per diluted share available to common shareholders. Third
quarter profits were driven by higher net interest income, lower non-interest
expense and lower provision for loan loss.

Excluding payment of dividends on preferred shares, CTB earned a profit of
$249,000. Results compared with a net loss of $1.44 million for the second
quarter 2013, or $0.32 per diluted common share, and a net loss of $72,000 for
the third quarter 2012, or $0.03 per diluted common share.

President Mike Cline, who announced his retirement last month effective
year-end, said he's pleased with the bank's progress. "Our overall trends are
healthy and we have taken care of the big credit problems," he said. "These
past several years have been extremely challenging, not only for us but for
the entire financial industry. We're pleased with what we've been able to
accomplish. Our loan portfolio and balance sheet are much improved.
Fundamentals are solid and core earnings are strong."

3Q-2Q 2013 Comparisons

Income Statement Highlights

  *Total revenues, less interest expense, up 4.60% from second quarter 2013

    *Net interest income increased $142,000 or 5.41%
    *Non-interest income declined 3.36%
    *Interest expense decreased 3.16%
    *Non-interest expense declined $1.12 million or 32.06%
    *Net interest margin improved to 4.37%, up 28 basis points
    *Provision for loan loss declined $436,000, or 52.22%

Balance Sheet Highlights

  *Total loans increased $6.54 million from second quarter 2013 to $222.594
    million

    *$16.56 million in new loans originated, offset by charge-offs and
      pay-downs

  *Total deposits of $232.98 million, up marginally from prior quarter 2013

    *Interest expense declined for 15^th straight quarter
    *Core deposits remained strong, reflecting customer loyalty

  *Total assets increased $3.00 million from second quarter 2013 to $268.56
    million
    
  *Credit quality continued to improve in the third quarter 2013

    *Total nonperforming assets declined 6.86%
    *Other Real Estate Owned, or foreclosed property, decreased 16.48%
    *Non-accrual loans up marginally 5.04%
    *Net loan charge-offs totaled $476,000, down $1.13 million
    *Net loan charge-offs to average loans remained below 1%

  *Capital levels continued to exceed "well-capitalized" requirements in
    third quarter 2013

    *Capital ratios improved on a link-quarter basis - Tier 1 Leverage Ratio
      to 8.44%, Tier 1 Risk-based Capital Ratio to 9.84%, and Total Risk-based
      Capital Ratio to 11.09%

  *Reserve for loan loss of $3.99 million declined $75,000 from second
    quarter 2013

Revenue

Led by higher net interest income, total revenues, less interest expense
increased $133,000 to $3.03 million in the third quarter 2013 on a
linked-quarter basis while up marginally from prior year.

Net interest income increased $142,000 to $2.77 million from previous quarter
and $87,000 from year-ago quarter. Net interest income was driven by lower
rates paid on deposits.

Interest expense fell for the 15^th straight quarter to $521,000 in the third
quarter 2013. Ongoing pricing discipline resulted in an improvement in net
interest margin to 4.37%, compared with 4.09% for the prior quarter and 4.14%
for the third quarter 2012.

Non-interest income declined $9,000 to $259,000 in the third quarter 2013 on a
linked-quarter basis, and $73,000 from the prior year. Non-interest expense
was $2.38 million, down $1.12 million from the second quarter 2013 and
$133,000 from a year ago.

Provision for loan loss decreased $436,000 from second quarter 2013 and
$173,000 from third quarter 2012, reflecting improvement in portfolio trends.

Loans and deposits

Total loans were $222.59 million at Sept. 30, 2013, compared with $216.10
million at June 30, 2013, and $223.72 million at Sept. 30, 2012. The Bank
generated $16.56 million in new loans in the third quarter, resulting in net
new loans of $6.54 million after charge-offs and loan pay-outs.

For the first nine months of 2013, Carolina Trust Bank booked new loans of
$44.96 million. In May this year, Carolina Trust had loan originations of
$9.10 million, its second largest monthly production in two years.

Total deposits of $232.98 million were marginally higher from second quarter
2013, but down from $241.14 million for the third quarter 2012, primarily due
to a decrease in brokered deposits. Core deposits remained strong, reflecting
customer loyalty in the form of checking, savings and certificate of deposit
accounts.

Capital

Capital increased in the third quarter 2013. Shareholders' equity improved by
$450,000 to $22.97 million as capital ratios improved on a linked-quarter
basis. At Sept. 30, 2013, Tier 1 Leverage Ratio was 8.44%, up from 8.24%; Tier
1 Risk-based Capital Ratio was 9.84%, up from 9.80%; and Total Risk-based
Capital Ratio was 11.09%, up from 11.06%. Capital levels continue to exceed
regulatory requirements for being "well-capitalized."

Asset Quality

Improvement in asset quality accelerated on a linked-quarter and
year-over-year basis. Total nonperforming assets declined $597,000, or 6.86%,
from second quarter 2013 and $1.98 million, or 19.63%, from a year ago.
Nonperforming assets were 3.03% of total assets, compared to 3.28% in the
previous quarter and 3.56% in the third quarter 2012.

Non-accrual loans were $4.09 million at Sept. 30, 2013 up slightly on a
link-quarter basis, but down $1.87 million, or 31.39%, from prior year. Other
Real Estate, or foreclosed property, declined $793,000, or 16.48%, from June
30, 2013, and $109,000 from Sept. 30, 2012. Loans 30 to 89 days past due were
$3.32 million at Sept. 30, 2013, down $264,000 from June 30, 2013, but up
$566,000 from Sept. 30 2012.

Net loan charge-offs were $474,000 for the third quarter 2013, compared with
$1.61 million for the second quarter 2013, and $723,000 for the third quarter
2012. Net loan charge-offs were less than 1% of average loans. Allowance for
loan losses to total loans was 1.79%, compared with 1.88% at June 30, 2013 and
1.96% at Sept. 30, 2012.

The Lincolnton, N.C.-based state chartered bank operates seven full service
branches in Lincoln, Catawba, Gaston and Rutherford Counties in western North
Carolina. It also maintains 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
                  2013         2013       2013       2012        2012
Balance Sheet                                                 
Data:
Total Assets       268,555     265,554   275,597   271,051    283,164
Total Deposits     232,978     232,621   240,589   233,861    241,140
Total Loans        222,594     216,055   215,984   221,480    223,717
Reserve for Loan   3,985       4,060     4,836     4,773      4,383
Loss
Total Shareholders 22,973      22,523    24,871    24,935     26,977
Equity
                                                             
                                                             
                  (Dollars in thousands, except per share data)
                  For the three months ended
                  September 30 June 30    March 31   December 31 September 30
                  2013         2013       2013       2012        2012
Income and Per                                                
Share Data:
Interest Income    3,287       3,162     3,095     3,324      3,374
Interest Expense   521         538       588       648        695
Net Interest       2,766       2,624     2,507     2,676      2,679
Income
Provision for Loan 399         835       413       1,100      572
Loss
Net Interest
Income After       2,367       1,789     2,094     1,576      2,107
Provision
Non-interest       259         268       251       348        332
Income
Non-interest       2,377       3,500     2,268     2,593      2,511
Expense
Income (loss)      249         (1,443)   77        (669)      (72)
Before Taxes
Income Tax Expense --          --        --        --         --
(benefit)
Net Income (loss)  249         (1,443)   77        (669)      (72)
                                                             
Preferred Stock    49          48        45        (97)       73
Dividend
                                                             
Income available
(loss)
attributable to    200         (1,491)   32        (572)      (145)
common
shareholders
                                                             
Net Income (loss)                                             
Per Common Share:
Basic              0.04        (0.32)    0.01      (0.12)     (0.03)
Diluted            0.04        (0.32)    0.01      (0.12)     (0.03)
Average Common
Shares                                                        
Outstanding:
Basic              4,634,702   4,634,482 4,634,482 4,634,482  4,634,286
Diluted            4,639,053   4,634,482 4,637,422 4,634,482  4,634,286
                                                             
                                                             
                                                             
                  September 30 June 30    March 31   December 31 September 30
                  2013         2013       2013       2012        2012
Capital Ratios:                                               
Tier 1 Leverage    8.44%        8.24%      8.71%      8.61%       9.14%
Ratio
Tier 1 Risk-based  9.84%        9.80%      10.79%     10.60%      11.16%
Capital Ratio
Total Risk-based   11.09%       11.06%     12.05%     11.86%      12.41%
Capital Ratio
                                                             
Tangible Common    19,585      19,188    21,529    21,581     22,262
Equity
Common Shares      4,634,482   4,634,482 4,634,482 4,634,482  4,634,482
Outstanding
Book Value Per     4.23        4.14      4.65      4.66       4.80
Common Share
                                                             
Performance                                                   
Ratios:
Return on Average  0.37%        -2.12%     0.11%      -0.95%      -0.10%
Assets (%)
Return on Average  4.32%        -23.20%    1.24%      -9.93%      -1.04%
Equity (%)
Net Interest       4.37%        4.09%      4.00%      4.27%       4.14%
Margin (%)
                                                             
Asset Quality:                                                
Delinquent Loans ( 3,317       3,581     2,835     3,639      2,751
30-89 days )
                                                             
Delinquent Loans ( --          --        --        --         --
90 days or more )
Non-accrual Loans  4,087       3,891     9,107     8,494      5,957
OREO and
repossessed        4,018       4,811     3,542     4,169      4,127
property
Total
Nonperforming      8,105       8,702     12,649    12,663     10,084
Assets
                                                             
Restructured Loans 5,247       4,465     4,711     4,983      3,413
                                                             
Nonperforming
Assets to Total    3.02%        3.28%      4.59%      4.67%       3.56%
Assets
Nonperforming
Assets to Equity   30.07%       32.74%     42.58%     42.62%      32.16%
Capital & ALLL
Allowance for Loan
Losses to          49.17%       46.66%     38.23%     37.69%      43.46%
Non-performing
Assets
Allowance for Loan
Losses to Total    1.79%        1.88%      2.24%      2.16%       1.96%
Loans
Net Loan           474         1,609     350        773         723
Charge-Offs
Net Loan
Charge-Offs to     0.73%        0.73%      0.16%      0.35%       0.34%
Average Loans (%)
                                                             
Note: Financial information is unaudited.


CONTACT: J. Michael Cline
         President and CEO
         Carolina Trust Bank
         (704) 735-1104
 
Press spacebar to pause and continue. Press esc to stop.