Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,132.49 -6.77 -0.22%
FTSE 100 6,572.86 -11.31 -0.17%
DAX 9,312.26 -5.56 -0.06%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,760.24 64.23 0.28%

Southcoast Announces Year End Earnings



Southcoast Announces Year End Earnings

MT. PLEASANT, S.C., Jan. 17, 2013 (GLOBE NEWSWIRE) -- Southcoast Financial
Corporation (Nasdaq:SOCB) announced unaudited net income of $3,519,000, or
$.57 per basic share, for the year ended December 31, 2012. This compares to
an unaudited net loss of $16,480,000, or $2.71 per basic share, for the year
ended December 31, 2011. The basic average shares totaled 6,125,535 and
6,080,066 for the years ended December 31, 2012 and 2011, respectively.

For the quarter ended December 31, 2012, net income was $929,000, or $.15 per
basic share. This compares to a net loss of $4,803,000, or $.79 per basic
share, for the quarter ended December 31, 2011. The net income (loss) per
share is based on 6,143,820 basic average shares for the quarter ended
December 31, 2012, compared to 6,102,461 basic average shares for the same
period of 2011. The shares for all periods have been adjusted to reflect a
stock dividend of 15% paid to shareholders of record as of December 31, 2012.

The ratio of nonperforming assets to total assets improved from 7.16% as of
December 31, 2011 to 4.41% as of December 31, 2012. The allowance for loan
losses as a percentage of loans was 2.49% as of December 31, 2012, compared to
3.34% as of December 31, 2011. The allowance for loan losses as a percentage
of total non-performing loans totaled 83.99% as of December 31, 2012, compared
to 50.27% as of December 31, 2011.

"The improvement in 2012 earnings as compared to 2011 was primarily the result
of lower nonperforming assets, which led to reductions in our loan loss
provision and expenses associated with other real estate owned. Additionally,
our Company achieved improvement in our net interest margin due to a lower
cost of funds resulting from the downward repricing of our interest bearing
liabilities," said L. Wayne Pearson, Chairman and Chief Executive Officer.

The year ended December 31, 2011 loss included a $10,023,000 provision for
loan losses and $4,575,000 of income tax expense related to a full write-off
of the Company's deferred tax asset. The provision for loan losses for the
year ended December 31, 2012 was $880,000. Income tax expense for the year
ended December 31, 2012 totaled $137,000, which represented the Company's
state income tax expense. The Company continues to maintain a full reserve
against its deferred tax asset, which totaled approximately $8.0 million at
December 31, 2012.

Net interest income for the year ended December 31, 2012 increased $1,119,000
to $13,377,000 from $12,258,000 for the same period of 2011. This increase was
due to a $1,788,000 decrease in interest expense which overcame a $669,000
decrease in interest income. The Company's net interest margin improved by 43
basis points to 3.55% for the twelve months of 2012 from 3.12% for the same
period of 2011, due to the significant reduction in its cost of funds,
primarily as a result of the repricing of time deposits and other borrowings.

Noninterest income increased $479,000 to $3,277,000 for the year ended
December 31, 2012, from $2,798,000 for the year ended December 31, 2011,
primarily due to increases of $234,000 in fees on loans sold and $151,000 in
fees on deposits.

Noninterest expenses decreased by $4,820,000 to $12,118,000 for the year ended
December 31, 2012, from $16,938,000 for the year ended December 31, 2011.
Impairment expense and operating expenses related to other real estate owned
decreased by a combined $3,630,000 between the two periods, accounting for a
large portion of the overall noninterest expense decrease. Additionally,
rental income and net gains from the sale of other real estate owned, which
are accounted for as a reduction of noninterest expense, contributed to an
increased reduction of $791,000 in noninterest expense between the two
periods. Other noninterest expense reductions included foreclosure expenses
and unfunded commitments expense, which had decreases of $135,000 and
$150,000, respectively.

Total assets as of December 31, 2012 were $438.2 million compared to $427.5
million as of December 31, 2011, an increase of 2.5%. Loans, excluding loans
held for sale, increased to $327.5 million, up 2.4% from $319.7 million as of
December 31, 2011. Deposits at December 31, 2012 increased 1.1% to $319.6
million. Brokered and wholesale certificates of deposit at December 31, 2012
totaled $13,583,000, down 68.3% from the December 31, 2011 total of
$42,898,000 as the Company continued to reduce non-core funding.

The subsidiary bank's capital position as of December 31, 2012 remains in
excess of the well-capitalized requirements under the regulatory framework for
prompt corrective action, with a tier 1 capital to average assets ratio of
9.94%. "We continue to be encouraged by the future direction of our Company
given our capital strength, the reduction in non-performing assets and our
continued improvement in the net interest margin," 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.

Southcoast Financial Corporation                               
SELECTED FINANCIAL DATA                                        
(dollars in thousands, except earnings per                     
share)
                                                               
                                            Three Months Ended
                                             December 2012     December 2011
                                             (Unaudited)
INCOME STATEMENT DATA                                          
Net interest income                          $3,497            $2,878
Provision for loan losses                   0                 3,400
Noninterest income                          727               619
Noninterest expenses                        3,161             4,721
Net income(loss)                            929                (4,803)
                                                               
PER SHARE DATA                                                 
Net income(loss) per share                                     
Basic                                        $0.15             $(0.79)
Diluted                                      $0.15             $(0.79)
                                                               
BALANCE SHEET DATA                                             
Total assets                                 $438,220          $427,521
Total deposits                              319,632           316,147
Total loans (net)                           319,310           309,048
Investment securities                       48,367            52,755
Other borrowings                            69,949            66,850
Junior subordinated debentures              10,310            10,310
Shareholders' equity                        34,264            30,812
                                                               
Average shares outstanding                                     
Basic                                       6,143,820         6,102,461
Diluted                                     6,143,820         6,102,461
                                                               
Book value per share                        $5.58             $5.05
                                                               
Key ratios                                                     
                                                               
Equity to asset ratio                       7.82%             7.21%
Nonperforming assets to assets^             4.41%             7.16%
Reserve to loans                            2.49%             3.34%
Reserve to nonaccruing loans                83.99%            50.27%
                                                               
                                                               
^ Includes nonaccrual loans, loans 90 days past due and still accruing
interest, and other real estate owned.

                                            
                                            
                                            
                                           Southcoast Financial Corporation
                                           Consolidated Balance Sheets
                                           (Dollars in thousands)
                                                             
                                            December 31      December 31
                                           2012             2011
                                            (Unaudited)      
Assets                                                       
Cash and cash equivalents                  $21,984          $18,037
Investments                                48,367           52,755
Loans held for sale                        1,789            995
Loans                                      327,469          319,740
Less: Allowance for loan losses            8,159            10,692
                                                             
Net loans                                  319,310          309,048
Fixed assets                               21,653           21,977
Other assets                               25,117           24,709
                                                             
Total Assets                               $438,220         $427,521
                                                             
Liabilities & Shareholders' Equity                           
Deposits:                                                    
Non-interest bearing                       $38,797          $34,120
Interest bearing non-time                  115,245          115,803
Time deposits                              165,590          166,224
                                                             
Total deposits                             319,632          316,147
Other borrowings                           69,949           66,850
Other liabilities                          4,065            3,402
Junior subordinated debentures             10,310           10,310
                                                             
Total liabilities                          403,956          396,709
                                                             
Shareholders' Equity                                         
Common Stock                               54,437           54,382
Accumulated deficit                         (19,002)         (22,520)
Accumulated other comprehensive loss        (1,171)         (1,050)
                                                             
Total shareholders' equity                 34,264           30,812
                                                             
Total Liabilities and Shareholders' equity $438,220         $427,521
                                                             

                            
                            
                            Southcoast Financial Corporation
                            Consolidated Income Statements
                            (Dollars in thousands, except earnings per share)
                                                                   
                           Year Ended                 Three Months Ended
                           December 31, December 31, December 31, December 31,
                           2012         2011         2012         2011
                           (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Interest Income                                                    
Interest and fees on loans $16,948      $17,017      $4,316       $4,034
Interest on investments    1,260        1,855        289          303
Interest on Fed funds sold 29           34           6            8
                                                                   
Total interest income      18,237       18,906       4,611        4,345
                                                                   
Interest expense           4,860        6,648        1,114        1,467
                                                                   
Net interest income        13,377       12,258       3,497        2,878
Provision for loan losses  880          10,023       0            3,400
                                                                   
Net interest income (loss) 12,497       2,235        3,497        (522)
after provision
                                                                   
Noninterest income         3,277        2,798        727          619
                                                                   
Total operating income     15,774       5,033        4,224        97
                                                                   
Noninterest expense                                                
Salaries and benefits      6,487        6,668        1,617        1,624
Occupancy and equipment    2,904        2,868        810          774
Other expenses             2,727        7,402        734          2,323
                                                                   
                                                                   
Total noninterest expense  12,118       16,938       3,161        4,721
                                                                   
Income (Loss) before taxes 3,656        (11,905)     1,063        (4,624)
                                                                   
Income tax expense         137          4,575        134           179
                                                                   
Net income (loss)          $3,519       ($16,480)    $929         ($4,803)
                                                                   
                                                                   
Basic net income (loss)    $0.57        ($2.71)      $0.15        ($0.79)
per share
                                                                   
Diluted net income (loss)  $0.57        ($2.71)      $0.15        ($0.79)
per share
                                                                   
Average number of shares                                           
Basic                      6,125,535    6,080,066    6,143,820    6,102,461
Diluted                    6,125,535    6,080,066    6,143,820    6,102,461

CONTACT: William C. Heslop
         Senior Vice President and Chief Financial Officer
         (843) 216-3019
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement