Attached files
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| 8-K - SOUTHCOAST FINANCIAL CORP | sthcst8-k1stqtr2013.htm |
Exhibit 99
Southcoast Financial Corporation
News Release
Southcoast Announces First Quarter Earnings
Mt. Pleasant, S.C., April 11, 2013 / Globe Newswire / - Southcoast Financial Corporation (NASDAQ: SOCB) announced that it had unaudited net income of $1,006,000, or $.16 per basic share, for the quarter ended March 31, 2013. This compares to unaudited net income of $1,243,000, or $0.20 per basic share, for the quarter ended March 31, 2012. The March 31, 2013 income per share is based on 6,148,152 basic average shares compared to 6,114,128 basic average shares for the first quarter of 2012.
“The first quarter’s results reflect an improved net interest margin, decreased levels of nonperforming assets, and an improved deposit mix,” said L. Wayne Pearson, Chairman and Chief Executive Officer. “The results for this quarter represent the fifth consecutive profitable quarter for our Company since the recession started.”
Net interest income increased $256,000 from $3,177,000 for the first quarter of 2012 to $3,433,000 for the first quarter of 2013. The Company’s annualized net interest margin improved by 17 basis points to 3.63% for the first quarter of 2013 from 3.46% for the first quarter of 2012, due to the significant reduction in our cost of funds.
Noninterest income decreased to $589,000 for the first quarter of 2013 from $906,000 for the first quarter of 2012, primarily due to $215,000 of securities gains and $124,000 of gains on sales of fixed assets during the first quarter of 2012, compared to no gains from sales of securities or fixed assets during the first quarter of 2013.
Noninterest expense levels increased to $2,961,000 for the quarter ended March 31, 2013 from $2,652,000 for the quarter ended March 31, 2012. The first quarter of 2012 included the benefit of $736,000 in net gains on sales of other real estate owned compared to only $288,000 for the quarter ended March 31, 2013.
Total assets as of March 31, 2013 were $441.8 million compared to $438.2 million as of December 31, 2012, an increase of 0.8%. Loans, excluding loans held for sale, decreased to $324.2 million, down 1.0% from $327.5 million as of December 31, 2012. Deposits during the same period increased 0.3% to $320.6 million, while other borrowings increased 3.0% to $64.5 million.
The Company’s ratio of nonperforming assets to total assets was 3.90% as of March 31, 2013, compared to 6.71% as of March 31, 2012. The allowance for loan losses as a percentage of loans was 2.41% as of March 31, 2013, compared to 2.96% as of March 31, 2012. The allowance for loan losses as a percentage of total nonperforming loans totaled 74.88% as of March 31, 2013, compared to 43.13% as of March 31, 2012.
The subsidiary bank’s capital position as of March 31, 2013 remains substantially in excess of regulatory well-capitalized requirements, with Tier 1 capital to average assets of 10.25%. “We continue to be encouraged by the future direction of our Company given our capital strength and improvement in core operations,” concluded Pearson.
About Southcoast Financial Corporation
Southcoast Financial Corporation, headquartered in Mt. Pleasant, South Carolina, is the holding company of Southcoast Community Bank. The Bank, which opened for business July 20, 1998, is a state chartered commercial bank operating from its main office at 530 Johnnie Dodds Boulevard in Mt. Pleasant, South Carolina and nine branches in the Charleston, South Carolina area. Southcoast Financial Corporation’s common stock is traded on the NASDAQ Global Market under the symbol SOCB.
SOURCE Southcoast Financial Corporation
/ Contact William C. Heslop, Senior Vice President and
Chief Financial Officer, (843) 216-3019
2
Southcoast Financial Corporation
Consolidated Balance Sheets
(Dollars in thousands)
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March 31
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December 31
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2013
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2012
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Assets
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Cash and cash equivalents
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$ | 35,097 | $ | 21,984 | ||||
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Investments
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45,879 | 48,367 | ||||||
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Loans held for sale
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776 | 1,789 | ||||||
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Loans
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324,172 | 327,469 | ||||||
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Less: Allowance for loan losses
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7,807 | 8,159 | ||||||
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Net loans
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316,365 | 319,310 | ||||||
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Fixed assets
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21,539 | 21,653 | ||||||
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Other assets
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22,179 | 25,118 | ||||||
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Total Assets
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$ | 441,835 | $ | 438,221 | ||||
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Liabilities & Shareholders' Equity
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Deposits:
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Non-interest bearing
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$ | 45,777 | $ | 38,797 | ||||
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Interest bearing non-time
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128,093 | 115,245 | ||||||
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Time deposits
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146,767 | 165,590 | ||||||
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Total deposits
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320,637 | 319,632 | ||||||
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Other borrowings
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72,066 | 69,949 | ||||||
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Other liabilities
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3,555 | 4,066 | ||||||
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Junior subordinated debentures
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10,310 | 10,310 | ||||||
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Total liabilities
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406,568 | 403,957 | ||||||
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Shareholders' Equity
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Common Stock
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54,484 | 54,437 | ||||||
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Accumulated deficit
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(17,996 | ) | (19,002 | ) | ||||
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Accumulated other comprehensive loss
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(1,221 | ) | (1,171 | ) | ||||
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Total shareholders' equity
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35,267 | 34,264 | ||||||
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Total Liabilities and
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Shareholders' equity
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$ | 441,835 | $ | 438,221 | ||||
3
Southcoast Financial Corporation
Consolidated Income Statement
(Dollars in thousands, except share data)
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Quarter Ended
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March 31,
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March 31,
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2013
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2012
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(Unaudited)
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(Unaudited)
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Interest Income
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Interest and fees on loans
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$ | 4,201 | $ | 4,155 | ||||
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Interest on investments
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252 | 304 | ||||||
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Interest on Fed funds sold
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6 | 6 | ||||||
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Total interest income
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4,459 | 4,465 | ||||||
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Interest expense
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1,026 | 1,288 | ||||||
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Net interest income
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3,433 | 3,177 | ||||||
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Provision for loan losses
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- | 100 | ||||||
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Net interest after provision
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3,433 | 3,077 | ||||||
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Securities gains
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- | 215 | ||||||
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Other noninterest income
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589 | 691 | ||||||
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Total noninterest income
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589 | 906 | ||||||
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Total operating income
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4,022 | 3,983 | ||||||
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Noninterest expense
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Salaries and benefits
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1,679 | 1,596 | ||||||
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Occupancy and furniture and equipment
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753 | 735 | ||||||
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Other expenses
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529 | 321 | ||||||
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Total noninterest expense
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2,961 | 2,652 | ||||||
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Income before taxes
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1,061 | 1,331 | ||||||
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Income tax expense
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55 | 88 | ||||||
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Net income
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$ | 1,006 | $ | 1,243 | ||||
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Basic net income per common share
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$ | 0.16 | $ | 0.20 | ||||
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Diluted net income per common share
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$ | 0.16 | $ | 0.20 | ||||
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Average number of common shares
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Basic
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6,148,152 | 6,114,128 | ||||||
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Diluted
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6,148,152 | 6,114,128 | ||||||
4
Southcoast Financial Corporation
SELECTED FINANCIAL DATA
(dollars in thousands, except earnings per share)
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Three Months Ended
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March 31, 2013
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March 31, 2012
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(Unaudited)
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INCOME STATEMENT DATA
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Net interest income
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$ | 3,433 | $ | 3,177 | ||||
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Provision for loan losses
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- | 100 | ||||||
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Noninterest income
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589 | 906 | ||||||
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Noninterest expenses
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2,961 | 2,652 | ||||||
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Net income
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$ | 1,006 | $ | 1,243 | ||||
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PER SHARE DATA
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Net income per share
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Basic
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$ | 0.16 | $ | 0.20 | ||||
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Diluted
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$ | 0.16 | $ | 0.20 | ||||
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BALANCE SHEET DATA
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Total assets
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$ | 441,835 | $ | 437,642 | ||||
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Total deposits
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320,637 | 327,768 | ||||||
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Total loans (net)
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316,365 | 313,797 | ||||||
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Investment securities
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45,879 | 47,177 | ||||||
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Other borrowings
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72,066 | 64,500 | ||||||
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Junior subordinated debentures
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10,310 | 10,310 | ||||||
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Shareholders' equity
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35,267 | 31,807 | ||||||
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Average shares outstanding1
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Basic
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6,148,152 | 6,114,128 | ||||||
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Diluted
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6,148,152 | 6,114,128 | ||||||
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Book value per share1
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$ | 5.74 | $ | 5.20 | ||||
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Key ratios
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Return on assets2
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0.95 | % | 1.17 | % | ||||
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Return on equity2
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11.74 | % | 15.97 | % | ||||
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Equity to asset ratio
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7.98 | % | 7.27 | % | ||||
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Nonperforming assets to assets3
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3.90 | % | 6.71 | % | ||||
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Reserve to loans4
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2.41 | % | 2.96 | % | ||||
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Reserve to nonperforming loans
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74.88 | % | 43.13 | % | ||||
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Net interest margin2
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3.63 | % | 3.46 | % | ||||
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1 Prior period per share amounts adjusted for 15% stock dividend paid during January 2013.
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2 Ratios for three months are annualized.
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3 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, troubled debt restructures, and other real estate
owned.
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4 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, and troubled debt restructures.
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5