MT. PLEASANT, S.C., April 20, 2007 (PRIME NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB), announced that it had unaudited pre-tax income of $1,275,000 and unaudited net income of $831,000, or $.16 per basic share, for the quarter ended March 31, 2007. This compares to pre-tax income of $2,087,000 and net income of $1,336,000, or $0.25 per basic share for the quarter ended March 31, 2006. The March 31, 2007 earnings per share are based on 5,317,350 basic average shares compared to 5,451,109 average shares for the first quarter of 2006. This decrease in shares is the result of a stock repurchase initiative undertaken in January 2007. The Company's Board of Directors authorized the repurchase of up to 547,194 shares, or 10% of the Company's outstanding shares as of January 23, 2007. During the quarter the Company repurchased 154,588 shares for a total of $6,407,901. Chairman and Chief Executive Officer, L. Wayne Pearson said, "While we experienced a drop in net income compared to the first quarter of 2006, we continue to focus on the growth of our banking system. The decline in net income is due primarily to a decrease in non-recurring income from real estate sales. We also experienced increases in personnel costs to support the growth of our branch network, and due to the acquisition of Charlestowne Mortgage Corporation, and our expansion to Hilton Head, South Carolina."
Total assets as of March 31, 2007 were $463.9 million compared to $504.1 million as of March 31, 2006, a decrease of 8.0%. Loans, excluding loans held for sale, decreased to $364.0 million, down 3.3% from $376.3 million as of March 31, 2006. Deposits during the same period declined 15.2% to $279.1 million. The decline in loans and deposits is directly related to our decision to reduce our wholesale lending operations and our related brokered and wholesale deposit base. As of March 31, 2007, the ratio of nonperforming assets to total assets was 0.09% and the allowance for loan losses as a percentage of loans was 1.20%.
The Corporation currently has nine branches and will open our tenth branch at the intersection of Highway 17N at Park West and South Morgans Point Road in Mt. Pleasant, South Carolina in the next few days.
Southcoast Financial Corporation, headquartered in Mt. Pleasant, South Carolina, is the holding company of Southcoast Community Bank. The Bank, which opened for business July 20, 1998, is a state chartered commercial bank operating from its main office at 530 Johnnie Dodds Boulevard in Mt. Pleasant, South Carolina. Trading in Southcoast Financial Corporation's common stock is traded on the NASDAQ Global Market under the symbol SOCB.
This press release contains forward-looking statements about branch openings within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events.
Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward looking-statements can be guaranteed. Our actual results may vary materially, and there are no guarantees about the performance of our stock.
We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future results or otherwise. You are advised, however, to consult any future disclosures we make on related subjects in our reports to the SEC.
Southcoast Financial Corporation SELECTED FINANCIAL DATA (dollars in thousands, except earnings per share) Three Months Ended March 2007 March 2006 (Unaudited) INCOME STATEMENT DATA Net interest income $ 3,641 $ 4,026 Provision for loan losses -- 319 Noninterest income 603 786 Noninterest expenses 2,969 2,406 Net income 831 1,336 PER SHARE DATA (a) Net income per share Basic $ 0.16 $ 0.25 Diluted $ 0.16 $ 0.24 BALANCE SHEET DATA Total assets $ 463,900 $ 504,069 Total deposits 279,148 328,981 Total loans (net) 359,625 371,747 Investment securities 47,404 54,820 Total earning assets 425,821 468,596 Advances from FHLB 81,000 77,000 Junior subordinated debentures 21,655 21,655 Shareholders' equity 73,272 74,576 Average shares outstanding Basic 5,317,350 5,451,109 Diluted 5,322,363 5,456,380 Key ratios (b) Return on assets 0.71% 1.16% Return on equity 4.43% 7.33% Equity to asset ratio 15.79% 14.79% Non-performing assets to assets 0.09% 0.10% Reserve to loans 1.20% 1.20% Net interest margin 3.42% 3.80% Employees 115 88 # of accounts 10,863 10,726 # of offices open 9 8 # of offices under construction 1 1 # of office sites purchased 2 0 ATM stand alone 1 1 Year Year Year Year Year Ended Ended Ended Ended Ended Dec. 2006 Dec. 2005 Dec. 2004 Dec. 2003 Dec. 2002 INCOME STATEMENT DATA Net interest income $ 16,145 $ 13,914 $ 10,692 $ 7,858 $ 5,458 Provision for loan losses 723 865 1,146 735 480 Noninterest income 3,837 2,725 2,700 1,711 1,767 Noninterest expenses 11,542 9,243 7,966 6,171 4,866 Net income 4,839 4,189 2,982 1,704 1,147 PER SHARE DATA (a) Net income per share Basic $ 0.89 $ 1.06 $ 0.83 $ 0.76 $ 0.57 Diluted $ 0.89 $ 1.06 $ 0.82 $ 0.74 $ 0.55 BALANCE SHEET DATA Total assets $ 481,856 $ 476,599 $ 366,103 $ 253,217 $ 181,513 Total deposits 310,893 311,554 258,153 166,213 132,655 Total loans (net) 363,246 371,656 293,207 199,732 134,729 Investment securities 46,341 35,203 24,831 22,049 7,608 Total earning assets 445,525 440,942 344,482 238,009 168,225 Advances from FHLB 66,000 67,000 58,000 41,100 23,500 Junior subordinated debentures 21,655 21,655 11,345 11,345 11,345 Shareholders' equity 78,803 73,315 36,571 33,410 12,709 Average shares outstanding Basic 5,461,034 3,941,199 3,586,523 2,246,398 2,021,109 Diluted 5,465,859 3,945,882 3,637,618 2,299,766 2,102,388 Key ratios (b) Return on assets 1.00% 1.04% 0.98% 0.79% 0.78% Return on equity 6.22% 9.28% 8.56% 10.43% 9.45% Equity to asset ratio 16.35% 15.38% 9.99% 13.19% 7.00% Non-performing assets to assets 0.18% 0.11% 0.27% 0.04% 0.06% Reserve to loans 1.19% 1.14% 1.15% 1.18% 1.21% Net interest margin 3.64% 3.69% 3.78% 3.90% 4.02% Employees 110 88 83 68 59 # of accounts 10,778 10,728 9,391 7,814 6,899 # of offices open 8 8 7 5 5 # of offices under construction 2 1 0 2 0 # of office sites purchased 2 0 2 1 2 ATM stand alone 1 1 1 0 0 (a) Per share data has been adjusted for 10% stock dividends in 2006, 2005, 2004, 2002, and a 15% dividend in 2003. (b) Ratios for three months are annualized. Southcoast Financial Corporation Consolidated Balance Sheets March 31 March 31 Dec. 31 Dec. 31 Dec. 31 2007 2006 2006 2005 2004 (Unaudited) (Unaudited) (Audited) (Audited) (Audited) Assets Cash and due from banks $ 8,458 $ 19,317 $ 7,008 $ 14,378 $ 11,853 Federal Funds sold 13,762 24,034 31,204 16,964 4,236 Investments 47,404 54,821 46,460 35,203 24,831 Loans held for sale 331 5,424 140 9,275 12,010 Loans 363,989 376,273 367,611 375,926 296,611 Less: Allowance for loan losses 4,364 4,525 4,364 4,270 3,404 -------- -------- -------- -------- -------- Net loans 359,625 371,748 363,247 371,656 293,207 Fixed assets 25,605 20,008 25,126 19,898 14,844 Other assets 8,715 8,717 8,671 9,225 5,122 -------- -------- -------- -------- -------- Total Assets $463,900 $504,069 $481,856 $476,599 $366,103 ======== ======== ======== ======== ======== Liabilities & Shareholders' Equity Deposits: Non-interest bearing 31,499 $ 42,217 $ 34,694 $ 38,754 $ 27,955 Interest bearing 247,649 286,764 276,199 272,800 230,198 -------- -------- -------- -------- -------- Total deposits 279,148 328,981 310,893 311,554 258,153 Other borrowings 86,925 77,053 67,841 67,000 58,000 Other liabilities 2,900 1,804 2,664 3,075 2,034 Junior subordinated debentures 21,655 21,655 21,655 21,655 11,345 -------- -------- -------- -------- -------- Total liabilities 390,628 429,493 403,053 403,284 329,532 Shareholders' Equity Common Stock 68,937 74,943 75,316 70,268 34,081 Retained Earnings and Accumulated Other Comprehensive Income or Loss 4,335 (367) 3,487 3,047 2,490 -------- -------- -------- -------- -------- Total shareholders' equity 73,272 74,576 78,803 73,315 36,571 -------- -------- -------- -------- -------- Total Liabilities and Shareholders' equity $463,900 $504,069 $481,856 $476,599 $366,103 ======== ======== ======== ======== ======== Book Value Per Share(a) $ 14.13 $ 13.68 $ 14.41 $ 13.45 $ 10.17 Reserve to Loans Ratio 1.20% 1.20% 1.19% 1.14% 1.15% (a) Adjusted for a 10% stock dividend in 2006, 2005, and 2004. Southcoast Financial Corporation Consolidated Income Statement (Dollars in thousands, except share data) Quarter Ended March 31, March 31, 2007 2006 (Unaudited) (Unaudited) Interest Income Interest and fees on loans $ 6,974 $ 6,734 Interest on investments 602 440 Interest on Fed funds sold 217 105 ---------- ---------- Total interest income 7,793 7,279 Interest expense 4,152 3,253 ---------- ---------- Net interest income 3,641 4,026 Provision for loan losses -- 319 ---------- ---------- Net interest after provision 3,641 3,707 Other noninterest income 603 786 ---------- ---------- Total operating income 4,244 4,493 Noninterest expense Salaries and benefits 1,728 1,477 Occupancy and furniture and equipment 545 388 Other expenses 696 541 ---------- ---------- Total noninterest expense 2,969 2,406 Income before taxes 1,275 2,087 Income tax expense 444 751 ---------- ---------- Net income $ 831 $ 1,336 ========== ========== Basic net income per common share $ 0.16 $ 0.25 Diluted net income per common share $ 0.16 $ 0.24 Average number of common shares(a) Basic(a) 5,317,350 5,451,109 Diluted(a) 5,322,363 5,456,380 (a) Adjusted for a 10% stock dividend in 2006.