Carolina Financial Corporation reports results for second quarter of 2018

Carolina Financial Corporation announced financial results for the second quarter of 2018.

Financial highlights at and for the three months ended June 30, 2018, include:

• Net income for the second quarter 2018 increased 60.2% to $15.0 million, or $0.70 per diluted share, from $9.3 million, or $0.58 per diluted share for the second quarter of 2017.  Included in net income are pretax merger-related expenses of $0.5 million and $0.3 million for the second quarter of 2018 and 2017, respectively.
• Operating earnings for the second quarter of 2018, which exclude certain non-operating income and expenses, increased 70.9% to $15.6 million, or $0.73 or per diluted share, from $9.1 million, or $0.56 per diluted share, for the second quarter of 2017.
• Operating earnings for Q2 2018 have been adjusted to eliminate the following significant items:
  • Pretax merger-related expenses of $506,000
  • The fair value gain on interest rate swaps of $451,000.
  • The loss on sale of securities of $746,000.
• Performance ratios for Q2 2018 compared to Q2 2017:
  • Return on average assets was 1.65% compared to 1.72%.
  • Operating return on average assets was 1.72% compared to 1.69%.
  • Return on average tangible equity was 17.02% compared to 16.02%.
  • Operating return on average tangible equity was 17.74% compared to 15.65%.
• Loans receivable, gross grew $107.7 million, or at an annualized rate of 9.3% since December 31, 2017.
• Nonperforming assets to total assets were 0.28% at June 30, 2018 compared to 0.20% at December 31, 2017.
• Total deposits increased $103.9 million since December 31, 2017. Core deposits increased $76.6 million since December 31, 2017.
• On June 11, Carolina Financial Corporation completed the sale of 1.5 million shares of its common stock. The net proceeds of the offering to the Company, after estimated expenses, were approximately $63.1 million.

“We continue to see the impact of solid organic growth and prior acquisitions on earnings.  Overall, results for the second quarter of 2018 continued to improve with an increase in net income to $15.0 million compared to the second quarter of 2017.” stated Jerry Rexroad, Chief Executive Officer.

About Carolina Financial Corporation

Carolina Financial Corporation (NASDAQ:CARO) is the holding company of CresCom Bank, which also owns and operates Atlanta-based  Crescent Mortgage Company.  As of June 30, 2018, Carolina Financial Corporation had approximately $3.7 billion in total assets and Crescent Mortgage Company was approved to originate loans in 48 states partnering with community banks, credit unions and mortgage brokers.