Form 8-K SOUTHCOAST FINANCIAL For: Jul 09
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): July 9, 2015
SOUTHCOAST FINANCIAL CORPORATION
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Incorporated under the
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Commission File No. 000-25933
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I.R.S. Employer
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laws of South Carolina
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Identification No.
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57-1079460
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530 Johnnie Dodds Boulevard
Mt. Pleasant, South Carolina 29464
Telephone: (843) 884-0504
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
2015 Second Quarter Earnings Release
Please see Exhibit 99 for the Registrant's 2015 Second Quarter Earnings Release.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(c) Exhibit 99 - Registrant's 2015 Second Quarter Earnings Release.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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SOUTHCOAST FINANCIAL CORPORATION
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(Registrant)
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Date: July 13, 2015
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By:
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s/William C. Heslop
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William C. Heslop
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Senior Vice President and Chief Financial Officer
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EXHIBIT INDEX
Exhibit 99 Registrant's 2015 Second Quarter Earnings Release
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Exhibit 99
Southcoast Announces 2015 Second Quarter Results
Mt. Pleasant, S.C., July 9, 2015 / Globe Newswire / - Southcoast Financial Corporation (NASDAQ: SOCB) announced that it had unaudited net income of $873,000, or $0.12 per basic share, for the quarter ended June 30, 2015. This compares to unaudited net income of $709,000, or $0.10 per basic share, for the quarter ended June 30, 2014. The June 30, 2015 income per share is based on 7,103,751 basic average shares outstanding compared to 7,089,902 basic average shares outstanding for 2014. The 2015 results reflect continued improvements in asset quality, deposit mix, and profitability.
For the quarter ended June 30, 2015, net interest income totaled $3,869,000, an increase of $296,000 from $3,573,000 for the quarter ended June 30, 2014. The net interest margin remained the same for both periods at 3.65%.
Noninterest income for the second quarter of 2015 decreased to $554,000 from $630,000 for the second quarter of 2014, primarily due to a $109,000 decrease in gains on sales of available for sale securities.
Noninterest expense was $3,095,000 for the second quarter of 2015 compared to $3,115,000 for the second quarter of 2014.
For the six months ended June 30, 2015 the Company had unaudited net income of $2,851,000, or $0.40 per basic share. This compares to unaudited net income of $1,352,000, or $0.19 per basic share for the six months ended June 30, 2014. This increase year over year is primarily due to the $750,000 gain on the sale of land and negative loan loss provision of $900,000 recognized during the first quarter.
The Company’s ratio of nonperforming assets to total assets was 1.68% as of June 30, 2015, compared to 2.76% as of June 30, 2014. The allowance for loan losses as a percentage of total loans was 1.30% as of June 30, 2015, compared to 1.73% as of June 30, 2014. The allowance for loan losses as a percentage of total nonperforming loans totaled 87.40% as of June 30, 2015, compared to 76.40% as of June 30, 2014.
Total assets as of June 30, 2015 were $505.7 million compared to $476.8 million as of December 31, 2014, an increase of 6.05%. Loans increased 5.19% to $383.0 million, from $364.1 million as of December 31, 2014. Deposits increased by $30.2 million, or 9.11% to $361.2 million at June 30, 2015, from $331.0 million at December 31, 2014. This increase was comprised of a $13.8 million increase in noninterest demand deposits, a $9.7 million increase in noninterest bearing non-time deposits, and a $6.7 million increase in time deposits. These increases represented favorable changes to the Company’s deposit mix.
The subsidiary bank’s capital position as of June 30, 2015 remains in excess of regulatory well-capitalized requirements.
“Our Company’s improved performance for the quarter and year to date reflects steady loan and deposit growth, as well as an improvement in our deposit mix,” said L. Wayne Pearson, Chairman and Chief Executive Officer.
On June 26, 2015, the Company’s stock was added to the Russell Microcap® Index.
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About Southcoast Financial Corporation
Southcoast Financial Corporation, headquartered in Mt. Pleasant, South Carolina, is the holding company of Southcoast Community Bank. The Bank, which opened for business July 20, 1998, is a state chartered commercial bank operating from its main office at 530 Johnnie Dodds Boulevard in Mt. Pleasant, South Carolina and ten branches in the Charleston, South Carolina area. Southcoast Financial Corporation’s common stock is traded on the NASDAQ Global Market under the symbol SOCB.
SOURCE Southcoast Financial Corporation
/ Contact William C. Heslop, Senior Vice President and
Chief Financial Officer, (843) 216-3019
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Southcoast Financial Corporation
Consolidated Balance Sheets
(Dollars in thousands)
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June 30
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December 31
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2015
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2014
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(Unaudited)
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Assets
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Cash and cash equivalents
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$ | 47,189 | $ | 33,572 | ||||
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Investments
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37,232 | 39,269 | ||||||
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Loans held for sale
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360 | - | ||||||
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Loans
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383,042 | 364,148 | ||||||
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Less: Allowance for loan losses
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4,986 | 5,602 | ||||||
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Net loans
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378,056 | 358,546 | ||||||
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Fixed assets
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19,556 | 20,455 | ||||||
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Other assets
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23,254 | 24,991 | ||||||
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Total Assets
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$ | 505,647 | $ | 476,833 | ||||
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Liabilities & Shareholders' Equity
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Deposits:
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Noninterest bearing
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$ | 62,487 | $ | 48,700 | ||||
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Interest bearing nontime
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171,393 | 161,691 | ||||||
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Time deposits
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127,308 | 120,643 | ||||||
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Total deposits
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361,188 | 331,034 | ||||||
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Other borrowings
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80,588 | 83,802 | ||||||
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Other liabilities
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3,113 | 4,382 | ||||||
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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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455,199 | 429,528 | ||||||
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Shareholders' Equity
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Common Stock
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54,695 | 54,643 | ||||||
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Accumulated deficit
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(3,350 | ) | (6,200 | ) | ||||
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Accumulated other comprehensive loss
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(897 | ) | (1,138 | ) | ||||
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Total shareholders' equity
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50,448 | 47,305 | ||||||
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Total Liabilities and
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Shareholders' equity
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$ | 505,647 | $ | 476,833 | ||||
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Southcoast Financial Corporation
Consolidated Income Statement
(Dollars in thousands, except share data)
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Six Months Ended
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Three Months Ended
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June 30
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June 30
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June 30
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June 30
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2015
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2014
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2015
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2014
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(Unaudited)
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(Unaudited)
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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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$ | 9,075 | $ | 8,417 | $ | 4,471 | $ | 4,182 | ||||||||
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Interest on investments
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491 | 579 | 239 | 278 | ||||||||||||
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Interest on Fed funds sold
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23 | 16 | 15 | 10 | ||||||||||||
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Total interest income
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9,589 | 9,012 | 4,725 | 4,470 | ||||||||||||
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Interest expense
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1,705 | 1,809 | 856 | 897 | ||||||||||||
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Net interest income
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7,884 | 7,203 | 3,869 | 3,573 | ||||||||||||
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Provision for loan losses
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(900 | ) | - | - | - | |||||||||||
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Net interest after provision
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8,784 | 7,203 | 3,869 | 3,573 | ||||||||||||
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Noninterest income
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1,835 | 1,118 | 554 | 630 | ||||||||||||
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Total noninterest income
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1,835 | 1,118 | 554 | 630 | ||||||||||||
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Total operating income
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10,619 | 8,321 | 4,423 | 4,203 | ||||||||||||
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Noninterest expense
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Salaries and benefits
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3,653 | 3,449 | 1,823 | 1,690 | ||||||||||||
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Occupancy and furniture and equipment
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1,406 | 1,428 | 705 | 709 | ||||||||||||
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Other expenses
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1,176 | 1,368 | 567 | 716 | ||||||||||||
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Total noninterest expense
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6,235 | 6,245 | 3,095 | 3,115 | ||||||||||||
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Income before taxes
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4,384 | 2,076 | 1,328 | 1,088 | ||||||||||||
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Income tax expense (benefit)
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1,533 | 724 | 455 | 379 | ||||||||||||
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Net income
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$ | 2,851 | $ | 1,352 | $ | 873 | $ | 709 | ||||||||
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Basic net income per common share
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$ | 0.40 | $ | 0.19 | $ | 0.12 | $ | 0.10 | ||||||||
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Diluted net income per common share
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$ | 0.40 | $ | 0.19 | $ | 0.12 | $ | 0.10 | ||||||||
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Average number of common shares
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Basic
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7,101,865 | 7,087,860 | 7,103,751 | 7,089,902 | ||||||||||||
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Diluted
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7,101,865 | 7,087,860 | 7,103,751 | 7,089,902 | ||||||||||||
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Southcoast Financial Corporation
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SELECTED FINANCIAL DATA
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(dollars in thousands, except earnings per share)
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Three Months Ended
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June 30, 2015
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June 30, 2014
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(Unaudited)
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INCOME STATEMENT DATA
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Net interest income
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$ | 3,869 | $ | 3,573 | ||||
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Provision for loan losses
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- | - | ||||||
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Noninterest income
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554 | 630 | ||||||
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Noninterest expenses
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3,095 | 3,115 | ||||||
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Income Tax expense
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455 | 379 | ||||||
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Net income
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$ | 873 | $ | 709 | ||||
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PER SHARE DATA
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Net income per share
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Basic
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$ | 0.12 | $ | 0.10 | ||||
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Diluted
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$ | 0.12 | $ | 0.10 | ||||
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Average shares outstanding1
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Basic
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7,103,751 | 7,089,902 | ||||||
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Diluted
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7,103,751 | 7,089,902 | ||||||
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Key ratios
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Return on assets1
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0.73 | % | 0.62 | % | ||||
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Return on equity1
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7.11 | % | 6.38 | % | ||||
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Nonperforming assets to assets2
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1.68 | % | 2.76 | % | ||||
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Reserve to loans
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1.30 | % | 1.73 | % | ||||
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Reserve to nonperforming loans3
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87.40 | % | 76.40 | % | ||||
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Net interest margin1
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3.65 | % | 3.65 | % | ||||
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1 Ratios for three months are annualized.
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2 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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3 Includes nonaccruing loans, loans 90 or more days past due still accruing interest, and troubled debt restructures.
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