MT. PLEASANT, S.C., April 9, 2008 (PRIME NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB) announced that it had unaudited pre-tax income of $944,000 and an unaudited net income of $744,000, or $.16 per basic share, for the quarter ended March 31, 2008. This compares to pre-tax income of $1,275,000 and net income of $831,000, or $0.14 per basic share, for the quarter ended March 31, 2007.
The March 31, 2008 earnings per share are based on 4,792,108 basic average shares compared to 5,849,085 average shares for the first quarter of 2007. This decrease in average shares is the result of the Company's ongoing program to repurchase and retire outstanding shares. Most recently the Company's Board of Directors authorized the repurchase of up to 484,527 shares, or 10% of the Company's outstanding shares, as of January 22, 2008. During the quarter the Company repurchased 295,152 shares for a total of $4,097,630.
Chairman and Chief Executive Officer, L. Wayne Pearson said, "Although we and the banking industry are feeling the effects of a lower interest rate environment and a slowing economy, we are pleased that our stock repurchase program has resulted in an increase in per share income for the first quarter of 2008 of two cents per share when compared to the first quarter of 2007."
Total assets as of March 31, 2008 were $525.9 million compared to $464.0 million as of March 31, 2007; an increase of 13.3%. Loans, excluding loans held for sale, increased to $385.3 million, up 5.9% from $364.0 million as of March 31, 2007. Deposits during the same period increased 27.2% to $355.1 million. As of March 31, 2008, the ratio of nonperforming assets to total assets was 1.07% and the allowance for loan losses as a percentage of loans was 1.10%.
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 and nine branches in the Charleston, South Carolina area. Trading in Southcoast Financial Corporation's common stock is traded on the NASDAQ Global Market under the symbol SOCB.
Southcoast Financial Corporation
SELECTED FINANCIAL DATA
(dollars in thousands, except earnings per share)
Three Months Ended
March 2008 March 2007
(Unaudited)
INCOME STATEMENT DATA
Net interest income $3,453 $3,641
Provision for loan losses 381 --
Noninterest income 795 603
Noninterest expenses 2,923 2,969
Net income 744 831
PER SHARE DATA *
Net income per share
Basic $0.16 $0.14
Diluted $0.16 $0.14
BALANCE SHEET DATA
Total assets $525,897 $464,003
Total deposits 355,064 279,148
Total loans (net) 381,076 359,625
Investment securities 67,908 47,404
Total earning assets 456,609 425,821
Other borrowings 96,880 86,925
Junior subordinated debentures 10,310 21,655
Shareholders' equity 59,505 73,272
Average shares outstanding
Basic 4,792,108 5,849,085
Diluted 4,792,108 5,854,599
Key ratios **
Return on assets 0.60% 0.71%
Return on equity 4.94% 4.43%
Equity to asset ratio 11.31% 15.79%
Non-performing assets to assets 1.07% 0.09%
Reserve to loans 1.10% 1.20%
Net interest margin 3.13% 3.42%
Employees 109 115
# of accounts 11,669 10,863
# of offices open 10 9
# of offices under construction 0 1
# of office sites purchased 3 2
ATM stand alone 1 1
Year Year Year Year Year
Ended Ended Ended Ended Ended
Dec. 2007 Dec. 2006 Dec. 2005 Dec. 2004 Dec. 2003
INCOME
STATEMENT DATA
Net interest
income $14,354 $16,145 $13,914 $10,692 $7,858
Provision for
loan losses 0 723 865 1,146 735
Noninterest
income 2,554 3,837 2,725 2,700 1,711
Noninterest
expenses 11,999 11,542 9,243 7,966 6,171
Net income 3,429 4,839 4,189 2,982 1,704
PER SHARE
DATA *
Net income
per share
Basic $0.63 $0.81 $0.97 $0.76 $0.69
Diluted $0.63 $0.80 $0.97 $0.75 $0.67
BALANCE SHEET
DATA
Total assets $500,852 $481,856 $476,599 $366,102 $253,217
Total deposits 342,755 310,893 311,554 258,153 166,213
Total loans
(net) 374,117 363,246 371,656 293,207 199,732
Investment
securities 62,609 46,461 35,203 24,831 22,049
Total earning
assets 443,200 445,119 440,942 344,482 238,009
Other
borrowings 81,230 67,841 67,000 58,000 41,100
Junior
subordinated
debentures 10,310 21,655 21,655 11,345 11,345
Shareholders'
equity 62,741 78,803 73,315 36,571 33,410
Average shares
outstanding
Basic 5,419,474 6,007,137 4,335,319 3,945,175 2,471,038
Diluted 5,423,915 6,012,445 4,340,470 4,001,380 2,529,742
Key ratios **
Return on
assets 0.71% 1.00% 1.04% 0.98% 0.79%
Return on
equity 4.96% 6.22% 9.28% 8.56% 10.43%
Equity to
asset ratio 12.53% 16.35% 15.38% 9.99% 13.19%
Non-performing
assets to
assets 0.91% 0.18% 0.11% 0.27% 0.04%
Reserve to
loans 1.14% 1.19% 1.14% 1.15% 1.18%
Net interest
margin 3.40% 3.64% 3.69% 3.78% 3.90%
Employees 114 110 91 77 68
# of accounts 11,737 10,778 10,728 9,391 7,814
# of offices
open 10 8 8 7 5
# of offices
under
construction 0 2 1 0 2
# of office
sites
purchased 0 2 0 2 1
ATM stand
alone 1 1 1 1 0
* Per share data has been adjusted for 10% stock dividends in 2007,
2006, 2005, and 2004.
** Ratios for three months are annualized
Southcoast Financial Corporation
Consolidated Income Statement
(Dollars in thousands, except share data)
Quarter Ended
March 31, March 31,
2008 2007
(Unaudited) (Unaudited)
Interest Income
Interest and fees on loans $6,834 $6,974
Interest on investments 818 602
Interest on Fed funds sold 12 217
-------- --------
Total interest income 7,664 7,793
Interest expense 4,211 4,152
-------- --------
Net interest income 3,453 3,641
Provision for loan losses 381 --
-------- --------
Net interest after provision 3,072 3,641
Other noninterest income 795 603
-------- --------
Total operating income 3,867 4,244
Noninterest expense
Salaries and benefits 1,723 1,728
Occupancy and furniture and equipment 574 545
Other expenses 626 696
-------- --------
Total noninterest expense 2,923 2,969
Income before taxes 944 1,275
Income tax expense 200 444
-------- --------
Net income $744 $831
======== ========
Basic net income per common share $0.16 $0.14
Diluted net income per common share $0.16 $0.14
Average number of common shares
Basic 4,792,108 5,849,085
Diluted 4,792,108 5,854,599
Southcoast Financial Corporation
Consolidated Balance Sheets
March 31 March 31 Dec. 31 Dec. 31 Dec. 31
2008 2007 2007 2006 2005
(Unaudited) (Unaudited) (Audited) (Audited) (Audited)
Assets
Cash and due from
banks $22,327 $8,458 $7,033 $7,008 $14,378
Federal Funds sold 1,176 13,762 3,774 31,204 16,964
Investments 67,908 47,404 62,609 46,460 35,203
Loans held for sale 0 331 384 140 9,275
Loans 385,316 363,989 378,414 367,611 375,926
Less: Allowance
for loan losses 4,240 4,364 4,297 4,364 4,270
-------- -------- -------- -------- --------
Net loans 381,076 359,625 374,117 363,247 371,656
Fixed assets 26,687 25,605 26,735 25,126 19,898
Other assets 26,723 8,818 26,200 8,671 9,225
-------- -------- -------- -------- --------
Total Assets $525,897 $464,003 $500,852 $481,856 $476,599
======== ======== ======== ======== ========
Liabilities &
Shareholders'
Equity
Deposits:
Non-interest
bearing $30,821 $31,499 $32,607 $34,694 $38,754
Interest bearing 324,243 247,649 310,148 276,199 272,800
-------- -------- -------- -------- --------
Total deposits 355,064 279,148 342,755 310,893 311,554
Other borrowings 96,880 86,925 81,230 67,841 67,000
Other liabilities 4,138 3,003 3,816 2,664 3,075
Junior subordinated
debentures 10,310 21,655 10,310 21,655 21,655
-------- -------- -------- -------- --------
Total
liabilities 466,392 390,731 438,111 403,053 403,284
Shareholders'
Equity
Common Stock 56,099 68,937 60,157 75,316 70,268
Retained Earnings
and Accumulated
Other
Comprehensive
Income or Loss 3,406 4,335 2,584 3,487 3,047
-------- -------- -------- -------- --------
Total
shareholders'
equity 59,505 73,272 62,741 78,803 73,315
-------- -------- -------- -------- --------
Total Liabilities
and
Shareholders'
equity $525,897 $464,003 $500,852 $481,856 $476,599
======== ======== ======== ======== ========
Book Value Per
Share $12.61 $12.85 $12.52 $14.41 $14.80
Reserve to Loans
Ratio 1.10% 1.20% 1.14% 1.19% 1.14%