Carolina Trust Bank Announces Second Quarter Results

LINCOLNTON, N.C., Aug. 3  /PRNewswire-FirstCall/ -- Carolina Trust Bank (NASDAQ:CART) reported a net loss of ($167,000) for the quarter ended June 30, 2009 compared to net profit of $15,000 for the same quarter last year.  After adjusting for a preferred stock dividend of $68,000 the net loss attributable to common shareholders in the last quarter was ($235,000) or ($.13) per diluted share.

As of June 30, 2009 the bank reported total assets of $171,419,000 which are up 19% from the same period last year.  Total deposits were up 20% to $135,187,000 and total loans are up 13% to $146,805,000 over the same period last year.

The provision for loan loss for the quarter was $258,000 compared to $85,000 for the same period last year.  We feel with the continued decline in real estate values this increase was the prudent thing to do.  We will continue to review this reserve on a monthly basis and make adjustments when necessary.  Another direct hit to our second quarter income was the special FDIC insurance assessment which had to be accrued by June 30.  This totaled $76,000.

We are beginning to see a slight improvement in our net interest margin as rates seem to finally have bottomed out and we have been able to reprice deposits.  Non-interest income has been a bright spot having increased 11% year-to-date over last year.

In June Carolina Trust Bank announced it would be acquiring Carolina Commerce Bank in Gastonia in an all-stock transaction.  We feel the addition of this location will add to our growth and income in the future.  This deal should be completed in the fourth quarter of 2009.

Carolina Trust Bank is a full service state chartered bank headquartered in Lincolnton, N.C. operating out of five full service branches in Lincoln and Catawba 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)
                            ----------------------
                                    June 30
                                2009       2008
                                ----       ----
  Balance Sheet Data:
  Total Assets                171,419    144,050
  Total Deposits              135,187    112,447
  Total Loans                 146,805    129,671
  Reserve for Loan Loss         2,716      1,465
  Total Shareholders Equity    19,909     16,655



                                                         Year to Date
                                    June 30                 June 30
                                2009       2008         2009       2008
  Income and Per Share Data:
  Interest Income               2,176      2,259        4,325      4,611
  Interest Expense              1,025      1,060        2,077      2,161
  Net Interest Income           1,151      1,199        2,248      2,450
  Provision for Loan Loss         258         85          282        169
  Net Interest Income After
   Provision                      893      1,114        1,966      2,281
  Other Income                    214        209          468        421
  Other Expense                 1,403      1,317        2,729      2,570
  (Loss) Income Before Taxes     (296)         6         (295)       132
  Income Tax (benefit) Expense   (129)        (9)        (129)        29
  Net (loss) Income              (167)        15         (166)       103

  Preferred Stock
   Dividend                        68          -          109          -

  (Loss Attributable) Income
   available to common
   shareholders                  (235)        15         (275)       103

  (Loss) Earnings Per Common
   Share:*
  Basic                         (0.13)      0.01        (0.16)      0.06
  Diluted                       (0.13)      0.01        (0.16)      0.06
  Average Shares Outstanding:
  Basic                     1,761,410  1,748,796    1,761,410  1,746,108
  Diluted                   1,761,410  1,778,676    1,761,410  1,781,915


  Asset Quality:
  Net Loan Charge-Offs              7         33           14         68
  Net Loan Charge-Offs to
   Average Loans (%)             0.01%      0.02%        0.01%      0.05%

  Performance Ratios:
  Return on Average Assets (%)  -0.39%      0.04%       -0.20%      0.15%
  Return on Average Equity (%)  -3.31%      0.37%       -1.72%      1.24%
  Net Interest Margin (%)        2.84%      3.45%        2.84%      3.63%


  Note: All quarterly information is unaudited.


DATASOURCE: Carolina Trust Bank



CONTACT:  John Michael Cline, President & CEO of Carolina Trust Bank,

[phone]



Web Site:  http://www.carolinatrust.com/ 

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