Lincolnton, N.C.-based Carolina Trust BancShares Inc. on March 22 said Nasdaq's listing qualifications department told the company it has regained compliance with the exchange's rules after taking certain corrective actions.
The company on March 18 told the Nasdaq Stock Market that its unit Carolina Trust Bank inadvertently made payments to a law firm affiliated with Johnathan Rhyne Jr., a director of Carolina Trust BancShares and a member of its audit committee. The payments were made between 2016 and 2019 in connection with home-equity line of credit loans between Carolina Trust Bank and various borrowers. Upon discovering the payments, Carolina Trust Bank discontinued the payments and ensured no additional payments would be made to the law firm.
Nasdaq's listing qualifications department on March 22 said the payments violated rules requiring independence for audit committee members, but since the bank ensured no additional payments would be made to the law firm, the company had regained compliance. Rhyne will remain a director of the company.