Southcoast announces 2015 second quarter results
July 12, 2015
MT. PLEASANT, SC – 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.
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.
