Breaking News

McGraw Hill Gets Wells Notice on Ratings of 6 Mortgage-Backed-Securities Deals in ’11, Says SEC May Recommend Sanctions

Southcoast Announces Stock Dividend

Southcoast Announces Stock Dividend

MT. PLEASANT, S.C., May 2, 2013 (GLOBE NEWSWIRE) -- Southcoast Financial
Corporation (Nasdaq:SOCB) announced today a 15% stock dividend payable to all
shareholders of record as of May 31, 2013. The dividend will be distributed
June 21, 2013.

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.

CONTACT: William C. Heslop, Senior Vice President and
         Chief Financial Officer, (843) 216-3019