Carolina Trust BancShares, Inc. Revises 4th Quarter 2017 Earnings Lower by $158,000 for Correction to Income Tax Charge

  • The income tax charge was related to the revaluation of deferred tax assets when the Tax Cuts and Jobs Act (“tax reform”) was signed into law

LINCOLNTON, N.C., March 22, 2018 (GLOBE NEWSWIRE) -- Carolina Trust BancShares, Inc. (the “Company”) (NASDAQ:CART) announces that its financial results for the quarter ended December 31, 2017 have been revised to report a net loss of $354,000 or $0.07 per diluted share. Previously, on January 26, 2018, the Company reported a net loss of $196,000 or $0.04 per diluted share. The $158,000 change in earnings is due to additional income tax expense recorded for a correction to the revaluation of the deferred tax assets (“DTAs”).

The DTA revaluation was required when tax reform was signed into law on December 22, 2017, which lowered the Company’s federal tax rate from 34% to 21% beginning in 2018. Originally, the Company recorded an estimated income tax charge of $778,000 due to the revaluation of the DTAs. After further review, the estimated income tax charge has been revised to $936,000, an increase of $158,000, to correct an error in the utilization of net operating loss carryforwards in the initial estimate.


Dollars in thousands, except share and per share data
Carolina Trust BancShares, Inc.
Selected Financial Highlights
Unaudited Unaudited Unaudited Unaudited (a)
12/31/179/30/176/30/173/31/1712/31/16
Balance Sheet Data:
Total Assets$406,618$400,297 $390,168 $382,481 $374,917
Total Loans 348,679 340,038 324,349 311,609 308,492
Reserve for Loan Loss 3,599 3,423 3,213 3,471 3,393
Total Deposits 340,653 337,589 330,893 323,179 318,665
Total Shareholders’ Equity 29,119 29,765 29,573 29,361 29,033
Comparative Income Statements
For the Three Months Ended
Unaudited
12/31/17
Unaudited
12/31/16
Variance
$
Variance
%
Income and Per Share Data:
Interest Income$4,672 $4,146 $526 13%
Interest Expense 916 838 78 9%
Net Interest Income 3,756 3,308 448 14%
Provision for (Recovery of) Loan Loss 149 (149) 298 NM
Net Interest Income After Provision 3,607 3,457 150 4%
Non-interest Income 379 282 97 34%
Non-interest Expense 3,114 3,143 (29) -1%
Income Before Taxes 872 596 276 46%
Income Tax Expense 1,226 214 1,012 473%
Net Income (Loss) (354) 382 (736) NM
Preferred Stock Dividend -0- 47 (47) -100%
Net Income (Loss) Available to Common Shareholders$(354)$335 $(689) NM
Net Income (Loss) Per Common Share:
Basic$(0.08)$0.07
Diluted$(0.07)$0.07
Average Common Shares Outstanding:
Basic 4,657,304 4,650,563
Diluted 4,752,961 4,703,681

(a) Note: Derived from audited financial statements



Carolina Trust BancShares, Inc.
Comparative Income Statements
For the years ended
Dollars in thousands, except per share data
Unaudited
12/31/17
(a)
12/31/16
Variance
$
Variance
%
Income and Per Share Data:
Interest Income$17,449$16,222 $1,227 8%
Interest Expense 3,479 2,872 607 21%
Net Interest Income 13,970 13,350 620 5%
Provision for (Recovery of) Loan Loss 704 (27) 731 NM
Net Interest Income After Provision 13,266 13,377 (111)-1%
Non-interest Income 1,376 1,229 147 12%
Non-interest Expense 12,644 12,388 256 2%
Income Before Taxes 1,998 2,218 (220)-10%
Income Tax Expense 1,594 877 717 82%
Net Income 404 1,341 (937)-70%
Preferred Stock Dividend-0- 222 (222)-100%
Net Income Available to Common Shareholders$404$1,119 $(715)-64%
Net Income Per Common Share:
Basic$0.09$0.24
Diluted$0.09$0.24
Average Common Shares Outstanding:
Basic 4,655,369 4,649,405
Diluted 4,734,874 4,697,765

(a) Note: Derived from audited financial statements


Contact:
Jerry L. Ocheltree
President and CEO
Carolina Trust BancShares, Inc.
(704) 735-1104

Source:Carolina Trust Bank