Attached files
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| 8-K - 8-K - TIDELANDS BANCSHARES INC | a11-28018_28k.htm |
Exhibit 99.1
News Release
Contact:
Thomas Lyles
Chief Executive Officer and acting President
875 Lowcountry Blvd
Mount Pleasant, SC 29464
(843) 388-8433
Tidelands Bancshares Announces Third Quarter Results
Tidelands Bancshares, Inc. reported that its third quarter, 2011, net income was $1.4 million as compared to a loss of $406 thousand for the third quarter of 2010. This represents a quarter over quarter improvement of 347%. Gains on the sale of securities, reduced provisioning for possible loan losses and lower noninterest expenses were the drivers behind the return to profitability for the quarter. On a per share basis, the net income for the quarter ended September 30, 2011 was $0.35 compared to a loss of $0.10 for the same quarter of 2010. On a year to date basis, the net loss improved $1.1 million, or 10.4% from the $10.5 million loss reported year to date for 2010.
Total assets declined to $533.7 million from $571.3 million at year end 2010. This decline was led by a $41.6 million decline in the loan portfolio and a $37.5 million reduction in deposits. The resulting regulatory capital ratios at September 30, 2011 for Tidelands Bank, the wholly owned subsidiary of Tidelands Bancshares, were in excess of those levels prescribed to be adequately capitalized. Please note that the year to date amounts have changed because the June 30th amounts were restated.
About Tidelands Bancshares, Inc.
Tidelands Bancshares, Inc., headquartered in Mt. Pleasant, SC, operates as a bank holding company of Tidelands Bank. Tidelands Bank is a local community bank focused on serving individuals, families, entrepreneurs, and small businesses in the South Carolina Lowcountry, with 7 locations serving Charleston, Dorchester, Berkley, Horry, and Beaufort counties. Tidelands Bank offers mortgages, construction loans, deposit products, internet banking, 24 hour telephone banking, and ATM service, and takes great pride in providing the custom banking solutions and services necessary to meet customer needs. Traded on the NASDAQ pink sheets market as TDBK, Tidelands can also be found on the web at www.tidelandsbank.com. For more information regarding the matters described in this press release, please refer to Tidelands Bancshares, Inc.’s filings, including on Form 8-K, with the Securities and Exchange Commission at www.sec.gov.
Forward Looking Statements
Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of the strategic plan, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, greater than expected noninterest expenses, volatile credit and financial markets, potential deterioration in real estate values, and regulatory changes and excessive loan losses, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-
looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise.
-Financial Tables Follow-
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the quarter ended September 30, 2011 are unaudited but, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.
Consolidated Statements of Operations
For the nine and three months ended September 30, 2011 and 2010
(Unaudited)
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Nine Months Ended |
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Three Months Ended |
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2011 |
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2010 |
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2011 |
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2010 |
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Interest income: |
|
|
|
|
|
|
|
|
| ||||
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Loans, including fees |
|
$ |
16,080,236 |
|
$ |
18,413,874 |
|
$ |
5,161,786 |
|
$ |
5,988,637 |
|
|
Securities available for sale, taxable |
|
1,511,584 |
|
4,542,503 |
|
474,985 |
|
352,740 |
| ||||
|
Securities available for sale, non-taxable |
|
— |
|
37,723 |
|
— |
|
— |
| ||||
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Federal funds sold |
|
41,527 |
|
59,612 |
|
12,819 |
|
22,186 |
| ||||
|
Other interest income |
|
366 |
|
980 |
|
239 |
|
101 |
| ||||
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Total interest income |
|
17,633,713 |
|
23,054,692 |
|
5,649,829 |
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6,363,664 |
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Interest expense: |
|
|
|
|
|
|
|
|
| ||||
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Time deposits $100,000 and over |
|
2,057,134 |
|
2,028,284 |
|
672,395 |
|
723,157 |
| ||||
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Other deposits |
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2,500,668 |
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4,998,246 |
|
753,187 |
|
1,277,599 |
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Other borrowings |
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1,806,880 |
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2,278,295 |
|
571,329 |
|
496,333 |
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Total interest expense |
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6,364,682 |
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9,304,825 |
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1,996,911 |
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2,497,089 |
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Net interest income |
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11,269,031 |
|
13,749,867 |
|
3,652,918 |
|
3,866,575 |
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Provision for loan losses |
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10,050,117 |
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10,670,000 |
|
300,000 |
|
920,000 |
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Net interest income (loss) after provision for loan losses |
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1,218,914 |
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3,079,867 |
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3,352,918 |
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2,946,575 |
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|
|
|
|
|
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|
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|
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Noninterest income (loss): |
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|
|
|
|
|
|
|
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Service charges on deposit accounts |
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38,988 |
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34,255 |
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13,326 |
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11,446 |
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Residential mortgage origination income |
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113,395 |
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172,622 |
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31,819 |
|
48,531 |
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Gain on sale of securities available for sale |
|
1,209,050 |
|
1,741,539 |
|
1,209,050 |
|
394,408 |
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Other service fees and commissions |
|
414,941 |
|
411,253 |
|
120,218 |
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150,207 |
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Increase in cash surrender value of BOLI |
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404,736 |
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417,382 |
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132,961 |
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143,930 |
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Loss on extinguishment of debt |
|
— |
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(1,619,771 |
) |
— |
|
— |
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Other |
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54,653 |
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44,248 |
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32,148 |
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(99,838 |
) | ||||
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Total noninterest income (loss) |
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2,235,763 |
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1,201,528 |
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1,539,522 |
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648,684 |
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Noninterest expense: |
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|
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|
|
|
|
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Salaries and employee benefits |
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4,521,539 |
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5,695,655 |
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1,324,396 |
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1,736,371 |
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Net occupancy |
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1,207,343 |
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1,237,750 |
|
405,129 |
|
417,037 |
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Furniture and equipment |
|
635,152 |
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664,221 |
|
219,188 |
|
218,077 |
| ||||
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Other real estate owned expense |
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1,932,861 |
|
2,059,765 |
|
150,728 |
|
359,243 |
| ||||
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Other operating |
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3,932,947 |
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4,454,547 |
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1,142,321 |
|
1,034,830 |
| ||||
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Total noninterest expense |
|
12,229,842 |
|
14,111,938 |
|
3,241,762 |
|
3,765,558 |
| ||||
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Income (Loss) before income taxes |
|
(8,775,165 |
) |
(9,830,543 |
) |
1,650,678 |
|
(170,299 |
) | ||||
|
Income tax benefit |
|
(48,692 |
) |
— |
|
— |
|
— |
| ||||
|
Net income (loss) |
|
(8,726,473 |
) |
(9,830,543 |
) |
1,650,678 |
|
(170,299 |
) | ||||
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Accretion of preferred stock to redemption value |
|
166,104 |
|
155,424 |
|
55,368 |
|
51,808 |
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Preferred dividends accrued |
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541,800 |
|
547,820 |
|
180,600 |
|
184,613 |
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Net income (loss) available to common shareholders |
|
$ |
(9,434,378 |
) |
$ |
(10,533,787 |
) |
$ |
1,414,710 |
|
$ |
(406,720 |
) |
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Income (Loss) per common share |
|
|
|
|
|
|
|
|
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Basic income (loss) per share |
|
$ |
(2.31 |
) |
$ |
(2.58 |
) |
$ |
0.35 |
|
$ |
(0.10 |
) |
|
Diluted income (loss) per share |
|
$ |
(2.31 |
) |
$ |
(2.58 |
) |
$ |
0.35 |
|
$ |
(0.10 |
) |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
| ||||
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Basic |
|
4,088,372 |
|
4,087,399 |
|
4,092,053 |
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4,086,245 |
| ||||
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Diluted |
|
4,088,372 |
|
4,087,399 |
|
4,092,053 |
|
4,086,245 |
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Item 1. Financial Statements
Consolidated Balance Sheets
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|
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September 30, |
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December 31, |
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2011 |
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2010 |
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(Unaudited) |
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(Audited) |
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Assets: |
|
|
|
|
| ||
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|
|
|
|
|
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Cash and cash equivalents: |
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|
|
|
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Cash and due from banks |
|
$ |
7,875,794 |
|
$ |
3,657,977 |
|
|
Federal funds sold |
|
14,220,000 |
|
24,069,000 |
| ||
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Total cash and cash equivalents |
|
22,095,794 |
|
27,726,977 |
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Securities available-for-sale |
|
62,640,092 |
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57,955,698 |
| ||
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Nonmarketable equity securities |
|
3,836,950 |
|
5,267,750 |
| ||
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Total securities |
|
66,477,042 |
|
63,223,448 |
| ||
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Mortgage loans held for sale |
|
391,000 |
|
— |
| ||
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Loans receivable |
|
396,028,966 |
|
437,688,015 |
| ||
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Less allowance for loan losses |
|
11,249,088 |
|
11,459,047 |
| ||
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Loans, net |
|
384,779,878 |
|
426,228,968 |
| ||
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Premises, furniture and equipment, net |
|
22,555,193 |
|
22,422,388 |
| ||
|
Accrued interest receivable |
|
1,906,797 |
|
1,928,992 |
| ||
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Bank owned life insurance |
|
14,819,363 |
|
14,414,626 |
| ||
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Other real estate owned |
|
18,533,963 |
|
11,905,865 |
| ||
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Other assets |
|
2,229,272 |
|
3,439,207 |
| ||
|
Total assets |
|
$ |
533,788,302 |
|
$ |
571,290,471 |
|
|
|
|
|
|
|
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Liabilities: |
|
|
|
|
| ||
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Deposits: |
|
|
|
|
| ||
|
Noninterest-bearing transaction accounts |
|
$ |
13,082,191 |
|
$ |
14,573,484 |
|
|
Interest-bearing transaction accounts |
|
23,194,426 |
|
26,474,037 |
| ||
|
Savings and money market accounts |
|
111,740,850 |
|
142,644,095 |
| ||
|
Time deposits $100,000 and over |
|
184,217,232 |
|
176,293,300 |
| ||
|
Other time deposits |
|
111,219,843 |
|
121,008,483 |
| ||
|
Total deposits |
|
443,454,542 |
|
480,993,399 |
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|
|
|
|
|
|
| ||
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Securities sold under agreements to repurchase |
|
20,000,000 |
|
20,000,000 |
| ||
|
Advances from Federal Home Loan Bank |
|
34,000,000 |
|
27,000,000 |
| ||
|
Junior subordinated debentures |
|
14,434,000 |
|
14,434,000 |
| ||
|
ESOP borrowings |
|
1,475,000 |
|
1,625,000 |
| ||
|
Accrued interest payable |
|
2,104,924 |
|
1,510,282 |
| ||
|
Other liabilities |
|
3,108,151 |
|
2,085,131 |
| ||
|
Total liabilities |
|
518,576,617 |
|
547,647,812 |
| ||
|
|
|
|
|
|
| ||
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Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
|
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Shareholders’ equity: |
|
|
|
|
| ||
|
Preferred stock, $.01 par value and liquidation value per share of $1,000, 10,000,000 shares authorized, 14,448 issued and outstanding at September 30, 2011 and December 31, 2010 |
|
13,902,996 |
|
13,736,892 |
| ||
|
Common stock, $.01 par value, 10,000,000 shares authorized; 4,277,176 shares issued and outstanding at September 30, 2011 and December 31, 2010 |
|
42,772 |
|
42,772 |
| ||
|
Common stock-warrant, 571,821 shares outstanding at September 30, 2011 and December 31, 2010 |
|
1,112,248 |
|
1,112,248 |
| ||
|
Unearned ESOP shares |
|
(1,737,668 |
) |
(1,907,361 |
) | ||
|
Capital surplus |
|
43,243,238 |
|
43,404,879 |
| ||
|
Retained deficit |
|
(41,938,533 |
) |
(32,504,156 |
) | ||
|
Accumulated other comprehensive income |
|
586,632 |
|
(242,615 |
) | ||
|
Total shareholders’ equity |
|
15,211,685 |
|
23,642,659 |
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
533,788,302 |
|
$ |
571,290,471 |
|