MT. PLEASANT, S.C., July 23, 2010 (GLOBE NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB) announced that it had unaudited net income of $742,000, or $0.16 per basic share, for the six months ended June 30, 2010. This compares to unaudited net income of $725,000, or $0.16 per basic share, for the six months ended June 30, 2009. The June 30, 2010 earnings per share are based on 4,553,903 basic average shares compared to 4,525,542 basic average shares for the six months ending June 30, 2009.
Total assets as of June 30, 2010 were $498.5 million, compared to $521.4 million as of December 31, 2009; a decrease of 4.4%. Loans, excluding loans held for sale, decreased to $ 343.0 million, down 3.8% from $ 356.9 million as of December 31, 2009. Chairman and Chief Executive Officer L. Wayne Pearson noted, "We continue to focus on reducing our level of nonperforming assets. The Company also continues to seek quality loan opportunities."
As of June 30, 2010, the Bank's Tier One Leverage ratio was 9.77% and its Total Risk Based Capital ratio was 15.95%. Both of these ratios are substantially above the FDIC minimums for well capitalized institutions.
During the first six months of 2010 the Company increased its core deposits and reduced its dependency on brokered deposits. Brokered deposits declined by $21.3 million since December 31, 2009 and $51.2 million since June 30, 2009. "This reduction in wholesale funding has been the result of our new core deposit programs. Our Rewards Checking products have been well received by existing customers, and have attracted significant new banking relationships," said Pearson.
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) | |||
| Six Months Ended | Three Months Ended | ||
| June 2010 | March 2010 | ||
| (Unaudited) | (Unaudited) | ||
| INCOME STATEMENT DATA | |||
| Net interest income | $5,915 | $2,882 | |
| Provision for loan losses | 1,800 | 1,000 | |
| Noninterest income | 3,509 | 1,970 | |
| Noninterest expenses | 6,644 | 3,332 | |
| Net income | $742 | $363 | |
| PER SHARE DATA * | |||
| Net income per share | |||
| Basic | $0.16 | $0.08 | |
| Diluted | $0.16 | $0.08 | |
| BALANCE SHEET DATA | |||
| Total assets | $498,513 | $504,034 | |
| Total deposits | 350,304 | 358,153 | |
| Total loans (net) | 332,763 | 335,567 | |
| Investment securities | 72,958 | 84,635 | |
| Other borrowings | 88,565 | 85,843 | |
| Junior subordinated debentures | 10,310 | 10,310 | |
| Shareholders' equity | 46,494 | 46,021 | |
| Average shares outstanding | |||
| Basic | 4,553,903 | 4,550,015 | |
| Diluted | 4,553,903 | 4,550,015 | |
| Book value per share | $10.20 | $10.11 | |
| Key ratios | |||
| Return on assets* | 0.29% | 0.29% | |
| Return on equity* | 3.27% | 3.23% | |
| Equity to asset ratio | 9.33% | 9.13% | |
| Non-performing assets^ to assets | 6.24% | 7.01% | |
| Reserve to loans | 3.00% | 2.98% | |
| Reserve to nonperforming loans | 41.61% | 39.95% | |
| Net interest margin | 2.85% | 2.72% | |
| * Ratios for less than one year are annualized. | |||
| ^ Includes nonaccrual loans, loans 90 days past due still accruing interest, and other real estate owned. | |||
| BANK REGULATORY CAPITAL RATIOS | Total Risk- Based1 | Tier 1 Risk- Based2 | Tier 1 Leverage3 |
| June 30, 2010 | 15.95% | 14.68% | 9.77% |
| March 31, 2010 | 15.22% | 13.95% | 9.66% |
| FDIC Well Capitalized Minimum | 10.00% | 6.00% | 5.00% |
| ¹Total Risk- Based Capital divided by total risk- weighted assets | |||
| ²Tier 1 Capital divided by total risk - weighted assets | |||
| ³Tier 1 Capital divided by average total assets | |||
| Southcoast Financial Corporation | |||
| Consolidated Balance Sheets | |||
|
June 30 2010 |
December 31 2009 |
June 30 2009 |
|
| (Unaudited) | (Audited) | (Unaudited) | |
| Assets | |||
| Cash and due from banks | $40,834 | $40,790 | $10,108 |
| Federal Funds sold | 533 | 109 | 9 |
| Investments | 72,958 | 65,042 | 57,328 |
| Loans held for sale | 0 | 320 | 980 |
| Loans | 343,044 | 356,912 | 383,701 |
| Less: Allowance for loan losses | 10,281 | 10,042 | 6,506 |
| Net loans | 332,763 | 346,870 | 377,195 |
| Fixed assets | 22,958 | 22,692 | 27,635 |
| Other assets | 28,467 | 45,584 | 46,372 |
| Total Assets | $498,513 | $521,407 | $519,627 |
| Liabilities & Shareholders' Equity | |||
| Deposits: | |||
| Non-interest bearing | $29,167 | $25,922 | $29,596 |
| Interest bearing | 321,137 | 342,615 | 330,449 |
| Total deposits | 350,304 | 368,537 | 360,045 |
| Other borrowings | 88,565 | 91,044 | 89,682 |
| Other liabilities | 2,840 | 6,435 | 5,301 |
| Junior subordinated debentures | 10,310 | 10,310 | 10,310 |
| Total liabilities | 452,019 | 476,326 | 465,338 |
| Shareholders' Equity | |||
| Common Stock | 53,638 | 53,583 | 53,515 |
| Retained Earnings(Deficit) and Accumulated OCI | (7,144) | (8,502) | 774 |
| Total shareholders' equity | 46,494 | 45,081 | 54,289 |
| Total Liabilities and Shareholders' equity | $498,513 | $521,407 | $519,627 |
| Southcoast Financial Corporation | |||||||
| Consolidated Income Statements | |||||||
| (Dollars in thousands, except earnings per share) | |||||||
| Six Months Ended | Three Months Ended | ||||||
|
June 30, 2010 |
June 30, 2009 |
June 30, 2010 |
June 30, 2009 |
||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Interest Income | |||||||
| Interest and fees on loans | $9,551 | $11,796 | $4,777 | $5,777 | |||
| Interest on investments | 1,396 | 1,437 | 709 | 724 | |||
| Interest on Fed funds sold | 23 | 1 | 9 | 0 | |||
| Total interest income | 10,970 | 13,234 | 5,495 | 6,501 | |||
| Interest expense | 5,055 | 6,604 | 2,462 | 3,159 | |||
| Net interest income | 5,915 | 6,630 | 3,033 | 3,342 | |||
| Provision for loan losses | 1,800 | 550 | 800 | 450 | |||
| Net interest income after provision | 4,115 | 6,080 | 2,233 | 2,892 | |||
| Noninterest income | 3,509 | 2,279 | 1,578 | 1,638 | |||
| Total operating income | 7,624 | 8,359 | 3,811 | 4,530 | |||
| Noninterest expense | |||||||
| Salaries and benefits | 3,321 | 3,794 | 1,657 | 1,728 | |||
| Occupancy and equipment | 1,439 | 1,386 | 672 | 721 | |||
| Other expenses | 1,884 | 2,460 | 1,022 | 1,621 | |||
| Total noninterest expense | 6,644 | 7,640 | 3,351 | 4,070 | |||
| Income before taxes | 980 | 719 | 460 | 460 | |||
| Income tax expense | 238 | -6 | 81 | 38 | |||
| Net income | $742 | $725 | $379 | $422 | |||
| Basic net income per share | $0.16 | $0.16 | $0.08 | $0.09 | |||
| Diluted net income per share | $0.16 | $0.16 | $0.08 | $0.09 | |||
| Average number of shares | |||||||
| Basic | 4,553,903 | 4,525,542 | 4,557,748 | 4,529,153 | |||
| Diluted | 4,553,903 | 4,525,542 | 4,557,748 | 4,529,153 | |||