MT. PLEASANT, S.C., July 25, 2008 (PRIME NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB), announced that it had unaudited pre-tax income of $1,918,000 and unaudited net income of $1,514,000, or unaudited net income of $.32 per basic share, for the six months ended June 30, 2008. This compares to unaudited pre-tax income of $2,565,000 and unaudited net income of $1,695,000, or unaudited net income of $0.30 per basic share for the six months ended June 30, 2007. The June 30, 2008 earnings per share are based on 4,691,867 basic average shares outstanding compared to 5,725,460 basic average shares outstanding for the six months ended June 30, 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 115,221 shares for a total of $1,642,540.
Chairman and Chief Executive Officer, L. Wayne Pearson said, "While we experienced a drop in net income compared to the same period of 2007, we saw an improvement in earnings per share of two cents. We attribute this to our ongoing stock buyback initiative. Total assets of the Corporation increased to $537,292,000, up from $487,704,000 at June 30, 2007. As our branch network continues to mature, we look forward to continued asset growth and increased branch profitability," said Pearson.
For the quarter ending June 30, 2008, pre-tax income was $975,000 and net income was $770,000 or net income of $0.17 per basic share. This compares to pre-tax income of $1,290,000 and net income of $864,000, or net income of $0.15 per basic share, for the quarter ending June 30, 2007. The 2008 earnings per share are based on 4,665,247 basic average shares outstanding compared to 5,603,193 basic average shares outstanding for the quarter ending June 30, 2007.
Total assets as of June 30, 2008 were $537.3 million compared to $500.9 million as of December 31, 2007, an increase of 10.2%. Loans, excluding loans held for sale, increased to $397.3 million, up 6.7% from $378.4 million as of December 31, 2007. Deposits during the same period increased 9.6% to $375.7 million. As of June 30, 2008, the ratio of nonperforming assets to total assets was 1.19% and the allowance for loan losses as a percentage of loans was 1.25%.
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. Southcoast Financial Corporation's common stock is traded on the NASDAQ Global Market under the symbol SOCB.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties, including those identified in our reports filed with the SEC. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statements can be guaranteed. Our actual results may vary materially, and there are no guarantees about the performance of our stock. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future results or otherwise. You are advised, however, to consult any future disclosures we make on related subjects in our reports filed with the SEC.
Southcoast Financial Corporation
SELECTED FINANCIAL DATA
(dollars in thousands, except earnings per share)
Six Months Ended
June 2008 June 2007
(Unaudited)
INCOME STATEMENT DATA
Net interest income $7,543 $7,365
Provision for loan losses 1,110 --
Noninterest income 1,508 1,164
Noninterest expenses 6,023 5,964
Net income 1,514 1,695
PER SHARE DATA*
Net income per share
Basic $0.32 $0.30
Diluted $0.32 $0.30
BALANCE SHEET DATA
Total assets $537,292 $487,704
Total deposits 375,726 308,652
Total loans (net) 392,392 368,025
Investment securities 76,944 59,785
Total earning assets 472,436 433,116
Other borrowings 90,284 75,500
Junior subordinated debentures 10,310 21,655
Shareholders' equity 57,572 68,945
Average shares outstanding
Basic 4,691,867 5,725,460
Diluted 4,692,028 5,731,162
Key ratios**
Return on assets 0.59% 0.72%
Return on equity 5.04% 4.63%
Equity to asset ratio 10.72% 14.14%
Non-performing assets to assets*** 1.19% 0.38%
Reserve to loans 1.25% 1.16%
Net interest margin 3.43% 3.48%
Employees 109 118
# of accounts 12,776 11,516
# of offices open 10 10
# of offices under construction 0 0
# 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 six months are annualized
*** Non-performing assets include nonaccruing loans and other real
estate owned.
Southcoast Financial Corporation
Consolidated Income Statements
(Dollars in thousands, except earnings per share)
Six Months Ended Three Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income
Interest and fees on
loans $13,803 $14,223 $6,969 $7,249
Interest on
investments 1,734 1,206 916 604
Interest on Fed funds
sold 19 297 7 80
--------- ---------- ---------- ----------
Total interest income 15,556 15,726 7,892 7,933
Interest expense 8,013 8,361 3,802 4,209
--------- ---------- ---------- ----------
Net interest income 7,543 7,365 4,090 3,724
Provision for loan
losses 1,110 0 729 0
--------- ---------- ---------- ----------
Net interest income
after provision 6,433 7,365 3,361 3,724
Noninterest income 1,508 1,164 714 561
--------- ---------- ---------- ----------
Total operating
income 7,941 8,529 4,075 4,285
Noninterest expense
Salaries and
benefits 3,436 3,423 1,713 1,695
Occupancy and
equipment 1,166 1,105 591 560
Other expenses 1,421 1,436 796 740
--------- ---------- ---------- ----------
Total noninterest
expense 6,023 5,964 3,100 2,995
Income before taxes 1,918 2,565 975 1,290
Income tax expense 404 870 205 426
--------- ---------- ---------- ----------
Net income $1,514 $1,695 $770 $864
========= ========== ========== ==========
Basic net income per
share $0.32 $0.30 $0.17 $0.15
Diluted net income per
share $0.32 $0.30 $0.17 $0.15
Average number of
shares
Basic 4,691,867 5,725,460 4,665,247 5,603,193
Diluted 4,692,028 5,731,162 4,665,696 5,609,052
Southcoast Financial Corporation
Consolidated Balance Sheets
June 30 June 30 Dec. 31 Dec. 31 Dec. 31
2008 2007 2007 2006 2005
(Unaudited) (Unaudited) (Audited) (Audited) (Audited)
Assets
Cash and due from
banks $12,187 $8,816 $7,033 $7,008 $14,378
Federal Funds
sold 801 1,162 3,774 31,204 16,964
Investments 76,944 59,785 62,609 46,460 35,203
Loans held for
sale 323 347 384 140 9,275
Loans 397,339 372,340 378,414 367,611 375,926
Less: Allowance
for loan losses 4,947 4,315 4,297 4,364 4,270
-------- -------- -------- -------- --------
Net loans 392,392 368,025 374,117 363,247 371,656
Fixed assets 26,593 25,653 26,735 25,126 19,898
Other assets 28,052 23,916 26,200 8,671 9,225
-------- -------- -------- -------- --------
Total Assets $537,292 $487,704 $500,852 $481,856 $476,599
======== ======== ======== ======== ========
Liabilities &
Shareholders'
Equity
Deposits:
Non-interest
bearing 31,509 36,625 $32,607 $34,694 $38,754
Interest bearing 344,217 272,027 310,148 276,199 272,800
-------- -------- -------- -------- --------
Total deposits 375,726 308,652 342,755 310,893 311,554
Other borrowings 90,284 85,924 81,230 67,841 67,000
Other liabilities 3,400 2,528 3,816 2,664 3,075
Junior
subordinated
debentures 10,310 21,655 10,310 21,655 21,655
-------- -------- -------- -------- --------
Total
liabilities 479,720 418,759 438,111 403,053 403,284
Shareholders'
Equity
Common Stock 54,491 68,635 60,157 75,316 70,268
Retained
Earnings and
Accumulated
Other
Comprehensive
Income or Loss 3,081 310 2,584 3,487 3,047
-------- -------- -------- -------- --------
Total
shareholders'
equity 57,572 68,945 62,741 78,803 73,315
-------- -------- -------- -------- --------
Total
Liabilities
and
Shareholders'
equity $537,292 $487,704 $500,852 $481,856 $476,599
======== ======== ======== ======== ========
Book Value Per
Share $12.50 $12.59 $12.52 $14.41 $14.80
Reserve to Loans
Ratio 1.25% 1.16% 1.14% 1.19% 1.14%