Strong Quarterly Performance - Report on Carolina Financial Corporation

Aug 04, 2015, 09:30 ET from www.aciassociation.com

NEW YORK, August 4, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Carolina Financial Corporation (NASDAQ: CARO). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=CARO

Highlights from our CARO Report include:

  • Robust Q2 Results and Stable Regulatory Ratios - On July 17, 2015 Carolina Financial Corporation, the holding company of CresCom Bank, announced its financial results for the second quarter as well as H1 of FY15. Net income for the second quarter was reported to be $3.9 million or $0.41 per diluted share as compared to Q2 FY14 where the figure was $2.2 million or $0.24, thereby registering a Y-o-Y growth of 74%. For the first half of fiscal 2015, the net income figure totaled $6.9 million or $0.73 per diluted share vis-à-vis $4.2 million or $0.45 per diluted share reported in H1 FY14. As at June 30, 2015 the Company's regulatory capital ratios exceeded the minimum levels currently required.
  • Factors for Bottom Line Growth - The Company attributes the increase in net income to the significant growth in loans and securities, increased checking fees, and improved results from the Company's retail mortgage team as well as significantly improved results from Crescent Mortgage Company. In addition to these factors, the Bank recovered $460,000 of previously unrecognized interest income from a nonperforming asset that was paid off during June 2015 and recognized a $588,000 gain on interest rate swaps, which were partially offset by a $1.2 million loss on extinguishment of debt arising from the early pay-off of a high rate FHLB advance.
  • CresCom Bank's performance- The Bank's net income for the quarter stood at $2.8 million while for the first half of the fiscal the bank clocked in incomes of $5.3 million. This compares to net income of $1.8 million and $3.5 million for the three and six months ended June 30, 2014, respectively. The Bank continued to witness growth in core deposits (checking, savings and money market) with the figure growing by $5.3 million since December 31, 2014.
  • Crescent Mortgage Company - Crescent Mortgage Company's net income for the second quarter came in at $1.3 million whereas for the first half of the fiscal the figure was $2 million, as compared to figures of $0.61 million for Q2 FY14 and $1.1 million for H1 FY14. This increase in the net income was attributed to an increase in originations and margin expansion resulting in increased mortgage banking income.
  • Management Commentary on the Results - Jerry Rexroad, the Chief Executive Officer of Carolina Financial said that the Company reported another strong quarter of operating results with an increase in net income. He added that CresCom Bank continued to increase earnings while Crescent Mortgage Company reported improved results during the second quarter of 2015 as compared to the prior period. He concluded that these results reflect the successful integration efforts from the Company's recent 13 branch acquisition as well as the hard work and dedication of its team members.

To find out how this influences our rating on Carolina Financial Corporation read the full report in its entirely here: http://www.aciassociation.com/?c=CARO

About ACI Association: 

Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:  

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.

NO WARRANTY 

ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING 

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.

RESTRICTIONS 

ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE www.aciassociation.com