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)
		12/31/17	9/30/17			6/30/17			3/31/17			12/31/16
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