Carolina National Corporation Announces Results for the Year End 2006

COLUMBIA, S.C., Feb. 5  /PRNewswire-FirstCall/ -- Carolina National Corporation, (NASDAQ:CNCP) parent of Carolina National Bank and Trust Company, is pleased to announce the consolidated financial results for 2006:

                                         Un-audited             Audited
                                    December 31, 2006      December 31, 2005
  Balance Sheet ($s in thousands)
    Assets
  Cash equivalents                      $ 12,036               $ 20,968
  Investment Securities                      644                  3,501
  Loans, net                             192,350                137,270
  Other Assets                             3,882                  3,118
    Total Assets                        $208,912               $164,857
      Liabilities
  Deposits                              $175,582               $135,746
  Other Liabilities                        2,737                  2,743
    Total Liabilities                   $178,319               $138,489
      Equity
  Shareholders' Equity                  $ 30,593               $ 26,368
  Total Liabilities and
    Shareholders' Equity                $208,912               $164,857

  Year To Date Income Statement ($s in thousands)
  Net Interest Income                    $ 8,006                $ 5,072
  Provision for Loan Losses                  603                    550
  Net Interest Income after
    Provision for Loan Losses              7,403                  4,522
  Non-interest Income                        413                    373
  Non-interest Expense                     4,780                  3,902
  Income Tax Expense                       1,107                    346
    Net Income                           $ 1,929                  $ 647


  Quarter To Date Income Statement ($s in thousands)
  Net Interest Income                    $ 2,157                $ 1,557
  Provision for Loan Losses                  264                    102
  Net Interest Income after
    Provision for Loan Losses              1,893                  1,455
  Non-interest Income                        113                    103
  Non-interest Expense                     1,318                  1,180
  Income Tax Expense                         277                    131
    Net Income                             $ 411                  $ 247



Roger Whaley, President and Chief Executive Officer stated that "2006 was a very good year for Carolina National as the company realized a 198% increase in earnings over the prior year, reporting net income of $1,929,000 in 2006 versus $647,200 in 2005. Net interest margin increased in 2006 to 4.42%, an increase of 9% over our 2005 net interest margin. Total assets increased 27% over 2005 to $208,912,000 at December 31, 2006. Total loans increased 40.0% during 2006 to $194,785,000. Mr. Whaley also stated that the fourth quarter results saw an increase in net income of 66% to $411,000 from the $247,000 recognized in the same three month period of 2005.

The bank maintained a quality loan portfolio as charge offs for 2006 were $51,000, or 0.03% of total loans, while non-performing loans were $654,000, or 0.34% of total loans. These ratios are well below our peer group. Additionally, the allowance for loan losses was 1.25% of total loans at year end. At December 31, 2006, 60% of total loans were nonresidential mortgage loans while residential mortgage loans, commercial and industrial loans and consumer loans made up 28%, 11% and 1%, respectively, of the loan portfolio.

The bank's loan portfolio is primarily funded by the bank's deposits which increased by 29% to $175,582,000 at December 31, 2006. Noninterest bearing demand deposits were 10% of the total while interest bearing demand deposits were 6%, money market deposits and savings accounts were 20%, certificates of deposit under $100,000 were 27% and certificates of deposit of $100,000 and over were 37%.

The bank continues to focus its efforts in the Columbia and Lexington markets of South Carolina and opened its fourth full service branch on Garners Ferry Road in Columbia in October 2006. Plans are to continue to open one or more branches each year at targeted locations in our market area over the next several years."

Mr. Whaley continued by saying that he was excited about the future of the company and wanted to thank its customers, employees and shareholders for their support and business through the years as they are responsible for the current and future success of Carolina National Corporation. 

DATASOURCE: Carolina National Corporation



CONTACT:  Roger Whaley of Carolina National Corporation, [phone]



Web site:  http://www.carolinanationalbank.com/

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