MT. PLEASANT, S.C., April 15, 2015 (GLOBE NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB) announced that it had unaudited net income of $1,978,000, or $.28 per basic share, for the quarter ended March 31, 2015. This compares to unaudited net income of $643,000, or $0.09 per basic share, for the quarter ended March 31, 2014. The March 31, 2015 income per share is based on 7,099,979 basic average shares outstanding compared to 7,085,818 basic average shares outstanding for 2014. The 2015 results include continued improvement in asset quality, deposit pricing mix, and net interest margin.
For the quarter ended March 31, 2015, net interest income totaled $4,015,000, an increase of $385,000 from $3,630,000 for the quarter ended March 31, 2014. The net interest margin increased to 3.89% as of March 31, 2015 from 3.81% as of March 31, 2014.
Noninterest income for the first quarter of 2015 increased to $1,281,000 from $488,000 for the first quarter of 2014, primarily due to a $750,000 gain on the sale of land.
Noninterest expense was $3,140,000 for the first quarter of 2015 compared to $3,130,000 for the first quarter of 2014.
For the quarter ending March 31, 2015, the Company reduced its allowance for loan losses by recording a negative loan loss provision of $900,000. No provision was recorded for the quarter ending March 31, 2014. This reduction in the allowance was a direct result of improved asset quality, and was the second consecutive quarter with a negative provision, as the Company recorded a negative provision of $600,000 for the quarter ended December 31, 2014. The Company's ratio of nonperforming assets to total assets was 2.00% as of March 31, 2015, compared to 2.92% as of March 31, 2014. The allowance for loan losses as a percentage of total loans was 1.33% as of March 31, 2015, compared to 1.81% as of March 31, 2014. The allowance for loan losses as a percentage of total nonperforming loans totaled 83.32% as of March 31, 2015, compared to 68.61% as of March 31, 2014. The year to year reduction in the allowance for loan losses to total loans reflected improved credit quality in the loan portfolio, most notably due to significant reductions in delinquent loans and criticized and classified loans.
Total assets as of March 31, 2015 were $492.3 million compared to $476.8 million as of December 31, 2014, an increase of 3.25%. Loans increased 0.96% to $367.6 million, from $364.1 million as of December 31, 2014. Deposits increased by $23.2 million, or 7.01% to $354.2 million at March 31, 2015, from $331.0 million at December 31, 2014. This increase was comprised of a $12.3 million increase in noninterest demand deposits, a $4.7 million increase in noninterest bearing nontime deposits, and a $6.2 million increase in time deposits. Growth in core deposits is an important part of the Company's strategic plan.
The subsidiary bank's capital position as of March 31, 2015 remains in excess of regulatory well-capitalized requirements.
"We are proud of the improvements in our Company's performance as they reflect the loyalty of our customers and the dedication of our employees," said L. Wayne Pearson, Chairman and Chief Executive Officer.
About Southcoast Financial Corporation
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 ten branches in the Charleston, South Carolina area. Southcoast Financial Corporation's common stock is traded on the NASDAQ Global Market under the symbol SOCB.
| Southcoast Financial Corporation | ||
| Consolidated Balance Sheets | ||
| (Dollars in thousands) | ||
| March 31 | December 31 | |
| 2015 | 2014 | |
| (Unaudited) | ||
| Assets | ||
| Cash and cash equivalents | $ 47,471 | $ 33,572 |
| Investments | 38,856 | 39,269 |
| Loans held for sale | -- | -- |
| Loans | 367,630 | 364,148 |
| Less: Allowance for loan losses | 4,875 | 5,602 |
| Net loans | 362,755 | 358,546 |
| Fixed assets | 19,747 | 20,455 |
| Other assets | 23,488 | 24,991 |
| Total Assets | $ 492,317 | $ 476,833 |
| Liabilities & Shareholders' Equity | ||
| Deposits: | ||
| Noninterest bearing | $ 60,956 | $ 48,700 |
| Interest bearing nontime | 166,424 | 161,691 |
| Time deposits | 126,853 | 120,643 |
| Total deposits | 354,233 | 331,034 |
| Other borrowings | 74,350 | 83,802 |
| Other liabilities | 3,604 | 4,382 |
| Junior subordinated debentures | 10,310 | 10,310 |
| Total liabilities | 442,497 | 429,528 |
| Shareholders' Equity | ||
| Common Stock | 54,667 | 54,643 |
| Accumulated deficit | (4,222) | (6,200) |
| Accumulated other comprehensive loss | (625) | (1,138) |
| Total shareholders' equity | 49,820 | 47,305 |
| Total Liabilities and Shareholders' equity | $ 492,317 | $ 476,833 |
| Southcoast Financial Corporation | ||
| Consolidated Income Statement | ||
| (Dollars in thousands, except share data) | ||
| Quarter Ended | ||
| March 31, | March 31, | |
| 2015 | 2014 | |
| (Unaudited) | (Unaudited) | |
| Interest Income | ||
| Interest and fees on loans | $ 4,604 | $ 4,235 |
| Interest on investments | 251 | 301 |
| Interest on Fed funds sold | 9 | 6 |
| Total interest income | 4,864 | 4,542 |
| Interest expense | 849 | 912 |
| Net interest income | 4,015 | 3,630 |
| Provision for loan losses | (900) | -- |
| Net interest after provision | 4,915 | 3,630 |
| Noninterest income | 1,281 | 488 |
| Total noninterest income | 1,281 | 488 |
| Total operating income | 6,196 | 4,118 |
| Noninterest expense | ||
| Salaries and benefits | 1,830 | 1,759 |
| Occupancy and furniture and equipment | 702 | 719 |
| Other expenses | 608 | 652 |
| Total noninterest expense | 3,140 | 3,130 |
| Income before taxes | 3,056 | 988 |
| Income tax expense | 1,078 | 345 |
| Net income | $ 1,978 | $ 643 |
| Basic net income per common share | $ 0.28 | $ 0.09 |
| Diluted net income per common share | $ 0.28 | $ 0.09 |
| Average number of common shares | ||
| Basic | 7,099,979 | 7,085,818 |
| Diluted | 7,099,979 | 7,085,818 |
| Southcoast Financial Corporation | ||
| SELECTED FINANCIAL DATA | ||
| (dollars in thousands, except earnings per share) | ||
| Three Months Ended | ||
| March 31, 2015 | March 31, 2014 | |
| (Unaudited) | ||
| INCOME STATEMENT DATA | ||
| Net interest income | $ 4,014 | $ 3,630 |
| Provision for loan losses | (900) | -- |
| Noninterest income | 1,281 | 488 |
| Noninterest expenses | 3,140 | 3,130 |
| Income Tax expense | 1,077 | 345 |
| Net income | $ 1,978 | $ 643 |
| PER SHARE DATA | ||
| Net income per share | ||
| Basic | $ 0.28 | $ 0.09 |
| Diluted | $ 0.28 | $ 0.09 |
| Average shares outstanding1 | ||
| Basic | 7,099,979 | 7,085,818 |
| Diluted | 7,099,979 | 7,085,818 |
| Key ratios | ||
| Return on assets1 | 1.71% | 0.59% |
| Return on equity1 | 16.52% | 6.06% |
| Nonperforming assets to assets2 | 2.00% | 2.92% |
| Reserve to loans | 1.33% | 1.81% |
| Reserve to nonperforming loans3 | 83.32% | 68.61% |
| Net interest margin1 | 3.89% | 3.81% |
| 1 Ratios for three months are annualized. | ||
| 2 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, troubled debt restructures, and other real estate owned. | ||
| 3 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, and troubled debt restructures. | ||