MT. PLEASANT, S.C., Jan. 21, 2015 (GLOBE NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB) announced that it had unaudited net income of $3,737,000, or $.53 per basic share, for the year ended December 31, 2014. This compares to unaudited net income of $9,065,000, or $1.28 per basic share, for the year ended December 31, 2013. The 2013 results included the reversal of the Deferred Tax Asset (DTA) valuation allowance which contributed to a net tax benefit of approximately $6,590,000, or $0.93 per share. The December 31, 2014 income per share is based on 7,091,361 basic average shares compared to 7,076,157 basic average shares for 2013.
For the year ended December 31, 2014, net interest income totaled $14,600,000, an increase of $897,000 from $13,703,000 for the year ended December 31, 2013. The net interest margin increased to 3.71% as of December 31, 2014 from 3.63% as of December 31, 2013.
Noninterest income for 2014 decreased to $2,146,000 from $2,360,000 for 2013, primarily due to a $216,000 decrease in fees on mortgage loans sold.
Noninterest expense levels decreased to $12,004,000 for 2014 from $13,188,000 for 2013. Decreases in salaries and benefits, FDIC insurance, other real estate expenses, and data processing costs, coupled with an increase of $302,000 in gains on sales of other real estate owned, are the main reasons for this 9% decrease.
Total assets as of December 31, 2014 were $476.8 million compared to $447.4 million as of December 31, 2013, an increase of 6.6%. Loans, excluding loans held for sale, increased to $364.1 million, from $331.9 million as of December 31, 2013, an increase of 9.7%. Deposits increased by 4.8% to $331.0 million at December 31, 2014, from $315.8 million at December 31, 2013. Additionally, the Company's deposit mix improved between the two periods, as time deposits accounted for 36.4% of the Company's deposits at December 31, 2014, compared to 43.2% at December 31, 2013.
The Company's ratio of nonperforming assets to total assets decreased to 1.94% as of December 31, 2014, compared to 3.47% as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.54% as of December 31, 2014, compared to 1.82% as of December 31, 2013. The allowance for loan losses as a percentage of total nonperforming loans totaled 100.36% as of December 31, 2014, compared to 58.88% as of December 31, 2013. The change in these ratios was indicative of improved credit quality in the loan portfolio.
The subsidiary bank's capital position as of December 31, 2014 remains in excess of regulatory well-capitalized requirements.
"We are proud of our accomplishments in 2014 as they reflect the hard work of our employees. The 9.7% growth in loans, improvement in asset quality, increase in net-interest margin, and decrease in overhead all account for the earnings improvement in our core business," said L. Wayne Pearson, Chairman and Chief Executive Officer.
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) | ||
| Year Ended | ||
| December 31, 2014 | December 31, 2013 | |
| (Unaudited) | ||
| INCOME STATEMENT DATA | ||
| Net interest income | $14,600 | $13,703 |
| Provision for loan losses | (600) | 400 |
| Noninterest income | 2,146 | 2,360 |
| Noninterest expenses | 12,004 | 13,188 |
| Income tax expense (benefit) | 1,605 | (6,590) |
| Net income | $3,737 | $9,065 |
| PER SHARE DATA | ||
| Net income per share | ||
| Basic | $0.53 | $1.28 |
| Diluted | $0.53 | $1.28 |
| BALANCE SHEET DATA | ||
| Total assets | $476,833 | $447,384 |
| Total deposits | 331,034 | 315,828 |
| Total loans (net) | 358,546 | 325,865 |
| Investment securities | 39,269 | 43,451 |
| Other borrowings | 83,802 | 73,818 |
| Junior subordinated debentures | 10,310 | 10,310 |
| Shareholders' equity | 47,305 | 42,569 |
| Average shares outstanding1 | ||
| Basic | 7,091,361 | 7,076,157 |
| Diluted | 7,091,361 | 7,076,157 |
| Book value per share | $6.67 | $6.01 |
| Key ratios | ||
| Return on assets | 0.83% | 2.09% |
| Return on equity | 8.32% | 23.60% |
| Nonperforming assets1 to assets | 1.94% | 3.47% |
| Reserve to loans | 1.54% | 1.82% |
| Reserve to nonperforming loans2 | 100.36% | 58.88% |
| Net interest margin | 3.71% | 3.63% |
| 1 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, troubled debt restructures, and other real estate owned. | ||
| 2 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, and troubled debt restructures. | ||
| Southcoast Financial Corporation | |||
| Consolidated Balance Sheets | |||
| (Dollars in thousands) | |||
| December 31 | December 31 | ||
| 2014 | 2013 | ||
| (Unaudited) | |||
| Assets | |||
| Cash and cash equivalents | $33,572 | $28,460 | |
| Investments | 39,269 | 43,451 | |
| Loans held for sale | -- | 271 | |
| Loans | 364,148 | 331,906 | |
| Less: Allowance for loan losses | 5,602 | 6,041 | |
| Net loans | 358,546 | 325,865 | |
| Fixed assets | 20,455 | 21,150 | |
| Other assets | 24,991 | 28,187 | |
| Total Assets | $476,833 | $447,384 | |
| Liabilities & Shareholders' Equity | |||
| Deposits: | |||
| Noninterest bearing | $47,002 | $40,399 | |
| Interest bearing nontime | 163,389 | 138,899 | |
| Time deposits | 120,643 | 136,530 | |
| Total deposits | 331,034 | 315,828 | |
| Other borrowings | 83,802 | 73,818 | |
| Other liabilities | 4,382 | 4,859 | |
| Junior subordinated debentures | 10,310 | 10,310 | |
| Total liabilities | 429,528 | 404,815 | |
| Shareholders' Equity | |||
| Common Stock | 54,643 | 54,544 | |
| Accumulated deficit | (6,200) | (9,937) | |
| Accumulated other comprehensive loss | (1,138) | (2,038) | |
| Total shareholders' equity | 47,305 | 42,569 | |
| Total Liabilities and Shareholders' equity | $476,833 | $447,384 | |
| Southcoast Financial Corporation | |||
| Consolidated Income Statements | |||
| (Dollars in thousands, except earnings per share) | |||
| Year Ended | |||
| December 31, | December 31, | ||
| 2014 | 2013 | ||
| (Unaudited) | |||
| Interest Income | |||
| Interest and fees on loans | $17,046 | $16,425 | |
| Interest on investments | 1,104 | 1,106 | |
| Interest on Fed funds sold | 31 | 30 | |
| Total interest income | 18,181 | 17,561 | |
| Interest expense | 3,581 | 3,858 | |
| Net interest income | 14,600 | 13,703 | |
| Provision for loan losses | (600) | 400 | |
| Net interest income after provision | 15,200 | 13,303 | |
| Noninterest income | 2,146 | 2,360 | |
| Total operating income | 17,346 | 15,663 | |
| Noninterest expense | |||
| Salaries and benefits | 6,630 | 7,024 | |
| Occupancy and equipment | 2,812 | 2,935 | |
| Other expenses | 2,562 | 3,229 | |
| Total noninterest expense | 12,004 | 13,188 | |
| Income before taxes | 5,342 | 2,475 | |
| Income tax expense (benefit) | 1,605 | (6,590) | |
| Net income | $3,737 | $9,065 | |
| Basic net income per share | $0.53 | $1.28 | |
| Diluted net income per share | $0.53 | $1.28 | |
| Average number of shares | |||
| Basic | 7,091,361 | 7,076,157 | |
| Diluted | 7,091,361 | 7,076,157 | |