Carolina Financial Corporation
Carolina Financial — Q3 2019 Earnings Presentation
15 slides from Carolina Financial's earnings presentation, Oct 24, 2019
Slide 1: Third Quarter 2019 Earnings Release Investor Presentation
Third Quarter 2019 Earnings Release Investor Presentation NASDAQ: CARO October 24, 2019
Slide 2: Disclaimer
2 Disclaimer Certain statements in this presentation contain “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , such as statements relating to future plans and expectations, and are thus prospective . Such forward - looking statements include
Slide 3: Third Quarter Highlights
3 Third Quarter Highlights • 2019 Q 3 net income increased 9 . 3 % to $ 16 . 6 million, or $ 0 . 74 per diluted share compared to $ 15 . 2 million, or $ 0 . 66 per diluted share for 2018 Q 3 . ( 1 ) • 2019 Q 3 operating earnings (Non - GAAP) increased 20 . 8 % to $ 18 . 6 million, or $ 0 . 83 per di
Slide 4: Community Banking Segment
Community Banking Segment Ome" Have a nice bank
Slide 5: Community Banking Segment Results
5 Community Banking Segment Results Bank Segment Earnings (1) • 2019Q3 community banking segment net income of $16.9 million, or $0.76 per diluted share, compared to $15.3 million for 2018Q3, or $0.67 per diluted share. • 2019Q3 operating earnings (Non - GAAP) of $17.5 million, or $0.78 per diluted
Slide 6: Net Interest Margin
6 4.15% 4.23% 4.00% 3.99% 4.13% 3.80% 3.84% 3.81% 3.82% 3.77% 3.50% 4.00% 4.50% 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 Net Interest Margin (FTE)(2) (%) Net Interest Margin - core (3) (%) Net Interest Margin (1) (1) The September 30, 2019 information is preliminary and based on Company data available at
Slide 7: Bank Segment Operating Efficiencies
7 Bank Segment Operating Efficiencies • Bank Segment noninterest expenses as a percentage of average consolidated assets of 2.00% in 2019Q3 compared to 2.08% in 2018Q3. • Operating Bank Segment noninterest expenses (Non - GAAP) as a percentage of average consolidated assets of 1.95% in 2019Q3 compar
Slide 8: Strong Balance Sheet Growth
8 Strong Balance Sheet Growth • Loans receivable, gross grew at an annualized rate of 10.5% since 12 - 2018. • Total deposits increased $125.0 million since 12 - 2018. Total Deposits ($MM) (1)(2) Total Loans ($MM) (1)(2) Total Assets($MM) (1)(2) (1) Includes assets acquired and liabilities assumed i
Slide 9: Diversified Loan Mix and Solid Asset Quality
9 Diversified Loan Mix and Solid Asset Quality NPAs/ Assets (%) (1)(2) • We have a diversified loan mix, with a focus on lower risk assets. • Our asset quality remains favorable, with NPA’s / assets of 0.52% at September 30, 2019. The increase in the NPA ratio from the prior quarter was primarily du
Slide 10: Improving Deposit Mix
10 Improving Deposit Mix Deposit Composition (9/30/2019) (1) • We grew Total Deposits $125.0 million since December 31, 2018. 2019Q3 Cost of Deposits: 1.00% (1) The September 30, 2019 information is preliminary and based on Company data available at the time of the presentation. (1) Noninterest - Be
Slide 11: Wholesale Mortgage Segment
11 Wholesale Mortgage Segment
Slide 12: Wholesale Mortgage Platform
12 Wholesale Mortgage Segment Wholesale Mortgage Platform (2) • Wholesale Mortgage segment LHFS originations increased in 2019 Q3 compared to 2018Q3. The margin also increased 54 bps in 2019Q3 from 2018Q3. • Wholesale Mortgage 2019Q3 segment net income of $325,000, or $0.01 per diluted share for 201
Slide 13: Focus on Stockholder Results
13 Focus on Stockholder Results • ROAA and ROATCE of 1.71% and 14.08%, respectively, for 2019Q3. • Operating ROAA and ROATCE (Non - GAAP) of 1.91% and 15.72%, respectively, for 2019Q3. • Diluted Earnings Per Share of $0.74 for 2019Q3 compared to $0.66 for 2018Q3. • Diluted Operating Earnings Per Sha
Slide 14: Overall Summary of the 2019 Third Quarter
14 Overall Summary of the 2019 Third Quarter • Very good organic loan growth of $ 70 . 9 million resulting in provision for loan losses of $ 620 , 000 with NPAs remaining stable . • Net interest margin - core (Non - GAAP) ( 2 ) decreased 5 bps point from Q 2 2019 . • Improved mortgage operations dur
Slide 15: Exhibit
15 Exhibit (1) (1) The September 30, 2019 information is preliminary and based on Company data available at the time of the presentation. (2) Net interest margin – tax - equivalent. (3) Net interest margin – core and yield on loans receivable – core excludes the impact of purchase accounting accreti