Investor Relations

Carolina Trust Bank Announces Fourth Quarter Results

February 1, 2010
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PRESS RELEASE

FOR RELEASE: January 29, 2010

CONTACT: Carolina Trust Bank Lincolnton, NC John Michael Cline, President & CEO (704) 735-1104

Carolina Trust Bank Announces Fourth Quarter Results

Carolina Trust Bank (Nasdaq: CART) announced financial results for the fourth quarter of 2009. The bank reported a net loss attributable to common shareholders of $1,325,000, or $.55 per share. That compares to a net loss of $679,000, and $0.39 per share, for the same period in 2008. Contributing to the loss were expenses exceeding $1,100,000 associated with the merger of Carolina Commerce Bank of Gastonia, NC into Carolina Trust Bank. J. Michael Cline, President and CEO, stated, “The combination with Carolina Commerce Bank allowed the bank to gain entry into the adjacent Gaston County market while at the same time allowing for cost reductions. We believe that the merger and the efficiencies it allows will benefit the bank and its shareholders in the future.”

Excluding the one-time expenses associated with the Carolina Commerce merger, the bank reported a net loss attributable to common shareholders of $225,000 for the quarter ended December 31, 2009.

For the year ended December 31, 2009, the bank reported a loss attributable to common shareholders of $2,508,000, or $1.30 per share compared to a loss of $572,000, or $0.33 per share for the year ended December 31, 2008. In addition to the merger related expenses, the bank increased its provision for loan losses during the year by $1,888,000. Cline continued, “We continue to see weakness in the real estate market and the economy generally. Because of that we considered it prudent to elevate our provision for loan losses against our loan portfolio. The bank remains strong and is experiencing an increase in its net interest income. Net interest income rose 24% in 2009 to $5,905,000 as compared to $4,779,000 in 2008.

As of December 31, 2009 the bank had total assets of $269,134,000 compared to $160,427,000 at December 31, 2008. Total deposits increased 79% during the year to $225,853,000, and total loans increased 51% during the period to $219,543,000.

Carolina Trust Bank is a full service state chartered bank headquartered in Lincolnton, N.C. operating out of six full service branches in Lincoln, Catawba and Gaston Counties and a loan production office in Rutherford County. Its common stock is traded on the NASDAQ under the symbol CART.