Southcoast Financial Corporation Exceeds $100 Million in Assets

Apr 19, 2001, 01:00 ET from Southcoast Financial Corporation

    MT. PLEASANT, S.C., April 19 /PRNewswire/ --
     Southcoast Financial Corporation (Nasdaq:   SOCB) announced net income of
 $104,000 or $.10 per share, for the quarter ended March 31, 2001.  This
 compares to net income of $38,000 for the prior year ending March 31, 2000, or
 $.03 per share.  Chairman and Chief Executive Officer, L. Wayne Pearson said,
 "Our excellent results for this quarter reflect the continued acceptance of
 our franchise in the greater Charleston market.  We continue to exceed our
 growth and profitability projections by a significant margin as we add our new
 products and branches.  We expect to close on our fifth location at 8420
 Dorchester Road, North Charleston, South Carolina, during the second quarter."
     As of March 31, 2001, total assets were $105 million, up 60.7% from
 March 31, 2000.  Deposits increased to $77.7 million, up 69.3% from
 March 31, 2000.  Loans during the same period grew $34.3 million or 68.4% to
 $84.6 million.  The commercial loan portfolio increased by 91% to $44,113.
 The reserve for loan losses as a percentage of loans was 1.18% as of
 March 31, 2001.
     "For the quarter ended March 31, 2001, the corporation had unaudited pre-
 tax income of $158,000, and net income of $104,000, or $.10 per share.  This
 compares to a $57,000 pre-tax income and a $38,000 net income for the same
 period ending March 31, 2000.  The 63.8% increase in earning assets and the
 additional revenue generated from loans sold and deposit fees more than offset
 the increased operating expenses associated with the continued expenses
 related to the expansion of our Branch and ATM Network, along with the
 expenses associated with our technology investment.  The bank's Internet
 banking product is now available to all of our customers," Pearson said.
     The corporation is completing plans for the express banking facility on
 Coleman Boulevard.  Management plans to use this facility to provide personal
 and business services to those customers along the Coleman Boulevard corridor.
 This will be the Bank's second branch in Mt. Pleasant.  Construction will be
 completed by the end of the third quarter.
     The 10% stock dividend announced on March 2, 2001 has been distributed to
 Southcoast shareholders as of April 16, 2001.
     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.  Trading in Southcoast Financial Corporation's common stock is
 reported on the Nasdaq Bulletin Board under the symbol SOCB. Information about
 the corporation is available on our web site, www.southcoastbank.com.
     This press release contains forward-looking statements about branch
 openings within the meaning of the Securities Litigation Reform Act of 1995.
 Forward-looking statements give our expectations or forecasts of future
 events.
     Any or all of our forward-looking statements here or in other publications
 may turn out to be wrong.  They can be affected by inaccurate assumptions or
 by known or unknown risks and uncertainties.  Many such factors will be
 important in determining our actual future results.  Consequently, no forward
 looking-statements can be guaranteed.  Our actual results may vary materially,
 and there are no guarantees about the performance of our stock.
     We undertake no obligation to correct or update any forward-looking
 statements, whether as a result of new information, future results or
 otherwise.  You are advised, however, to consult any future disclosures we
 make on related subjects in our reports to the SEC.
 
     Contact Robert M. Scott, Executive Vice President and Chief Financial
             Officer, (843) 884-0504
 
 
                        Southcoast Financial Corporation
                      Consolidated Statement of Condition
                             (Dollars in thousands)
 
 
                                     March 31        March 31      March 31
                                       2001            2000          1999
                                   (Unaudited)     (Unaudited)    (Unaudited)
     Assets
     Cash and due from banks          $2,846          $1,948          $444
     Interest bearing deposits         1,172           2,456           977
     Federal Funds sold                3,080           2,250         5,140
     Investments                       6,247           3,103         3,293
     Loans:
      Commercial                      44,113          22,992         6,864
      Residential Mortgages           33,762          22,344        10,170
      Consumer                         6,694           4,885         1,278
 
     Total loans                      84,569          50,221        18,312
     Less: Allowance for loan losses   1,001             865           550
 
     Net loans                        83,568          49,356        17,762
     Fixed assets                      6,167           4,768         2,213
     Other assets                      2,275           1,663           563
 
     Total Assets                   $105,355         $65,544       $30,392
 
     Liabilities & Shareholders' Equity
     Deposits:
      Non interest bearing           $11,327          $6,243        $2,728
      Interest bearing                66,360          39,642        16,555
 
     Total deposits                   77,687          45,885        19,283
     Other borrowings                 17,800           9,300         1,000
     Other liabilities                   694             613           201
 
     Total liabilities                96,181          55,798        20,484
     Shareholders' Equity
      Common Stock                     9,560          10,520        10,520
      Retained Earnings (deficit)       (386)           (774)         (612)
 
     Total shareholders' equity        9,174           9,746         9,908
       Total Liabilities and
        Shareholders' Equity        $105,355         $65,544       $30,392
 
 
     Book Value                        $8.89           $8.45         $8.59
 
     Reserve to Loans Ratio            1.18%           1.72%         3.00%
 
 
 
                         Southcoast Financial Corporation
                           Consolidated Income Statement
                               (Dollars in thousands)
 
 
                                                 Quarters Ended
                                   March 31,        March 31,       March 31,
                                     2001             2000            2000
                                  (Unaudited)     (Unaudited)     (Unaudited)
     Interest Income
      Interest and fees on loans      $1,963          $1,170          $366
      Interest on investments             96              58            47
      Interest on Fed funds sold          29              17            49
 
       Total interest income           2,088           1,245           462
 
     Interest expense                  1,169             603           140
 
      Net interest income                919             642           322
     Provision for loan losses            60              30           225
 
      Net interest after provision       859             612            97
 
     Other non interest income           229              88            58
 
      Total operating income           1,088             700           155
 
     Non-interest expense
      Salaries and benefits              559             408           252
      Occupancy and equipment            156              98            47
      Other expenses                     215             137            80
 
       Total non-interest expense        930             643           379
 
     Income (loss) before taxes          158              57          (224)
     Income tax expense (benefit)         54              19           (76)
 
     Net income (loss)                  $104             $38         ($148)
 
     EPS                               $0.10           $0.03        ($0.13)
 
     Average number of common
      shares adjusted for stock
      split                        1,006,361       1,152,786     1,152,786
 
 
                        Southcoast Financial Corporation
                           Key Performance Indicators
                             For the Quarter Ended
                             (Dollars in Thousands)
 
 
                      March     Dec.      Sept.      June      March     Dec.
                      2001      2000      2000       2000      2000      1999
 
     Total assets  $105,355   $92,105   $86,466    $77,812   $65,544   $55,248
 
     Total loans    $84,569   $75,375   $68,059    $60,964   $50,221   $43,988
     Total deposits $77,686   $66,172   $63,680    $56,896   $45,885   $38,245
 
     # of loan
      accounts        1,139     1,066       967        860       750       611
     # deposit
      accounts        3,144     2,943     2,745      2,400     1,956     1,732
 
     Total accounts   4,283     4,009     3,712      3,260     2,706     2,343
 
     Net interest
      income         $1,169      $832      $759       $745      $642      $551
     Loan loss
      reserve        $1,001      $941      $911       $895      $865      $835
     Earnings (Loss)   $104       $59       $62        $53       $38       $20
     Earnings (Loss)
      per share  **   $0.10     $0.06     $0.06      $0.05     $0.03     $0.02
 
     Equity ##       $9,174    $9,152    $9,343     $9,447    $9,749    $9,720
     Book value  **   $8.89     $8.79     $8.69      $8.55     $8.46     $8.43
 
     # offices open       3         3         3          3         2         2
     # offices under
      construction        1         1         1          1         1         1
     # offices under
      purchase contract   1
 
     Full time
      equivalent
      personnel          38        37        39         39        36        27
 
     Average shares
      adjusted    1,036,311 1,050,582 1,092,648  1,096,377 1,152,787 1,152,787
 
     **   Adjusted for stock dividend
 
     ##   Decreases in December, September, and June 2000 is attributable to
          the stock buy back program
 
 
                          Sept.      June       March        Dec.       Sept.
                          1999       1999       1999        1998        1998
 
     Total assets       $48,107    $41,112    $30,392     $20,683     $14,407
 
     Total loans        $36,573    $28,081    $18,312     $11,147      $2,792
     Total deposits     $33,233    $27,039    $19,283      $9,559      $4,109
 
     # of loan accounts     503        371        229         115          36
     # deposit
      accounts            1,341      1,017        736         446         253
 
     Total accounts       1,844      1,388        965         561         289
 
     Net interest income   $549       $452       $322        $251        $157
     Loan loss reserve     $805       $775       $550        $325        $100
     Earnings (Loss)        $14      ($150)     ($148)      ($296)      ($155)
     Earnings (Loss)
      per share  **       $0.01     ($0.13)    ($0.13)     ($0.26)     ($0.13)
 
     Equity ##           $9,702     $9,713     $9,908     $10,075     $10,214
     Book value  **       $8.42      $8.43      $8.59       $8.74       $8.86
 
     # offices open           2          1          1           1           1
     # offices under
      construction            1          2          1
     # offices under
      purchase contract
 
     Full time equivalent
      personnel              24         23         23          17          13
 
     Average shares
      adjusted        1,152,787  1,152,787  1,152,787   1,152,787   1,152,787
 
     **  Adjusted for stock dividend
 
     ##  Decreases in December, September, and June 2000 is attributable to the
         stock buy back program
 
 

SOURCE Southcoast Financial Corporation
    MT. PLEASANT, S.C., April 19 /PRNewswire/ --
     Southcoast Financial Corporation (Nasdaq:   SOCB) announced net income of
 $104,000 or $.10 per share, for the quarter ended March 31, 2001.  This
 compares to net income of $38,000 for the prior year ending March 31, 2000, or
 $.03 per share.  Chairman and Chief Executive Officer, L. Wayne Pearson said,
 "Our excellent results for this quarter reflect the continued acceptance of
 our franchise in the greater Charleston market.  We continue to exceed our
 growth and profitability projections by a significant margin as we add our new
 products and branches.  We expect to close on our fifth location at 8420
 Dorchester Road, North Charleston, South Carolina, during the second quarter."
     As of March 31, 2001, total assets were $105 million, up 60.7% from
 March 31, 2000.  Deposits increased to $77.7 million, up 69.3% from
 March 31, 2000.  Loans during the same period grew $34.3 million or 68.4% to
 $84.6 million.  The commercial loan portfolio increased by 91% to $44,113.
 The reserve for loan losses as a percentage of loans was 1.18% as of
 March 31, 2001.
     "For the quarter ended March 31, 2001, the corporation had unaudited pre-
 tax income of $158,000, and net income of $104,000, or $.10 per share.  This
 compares to a $57,000 pre-tax income and a $38,000 net income for the same
 period ending March 31, 2000.  The 63.8% increase in earning assets and the
 additional revenue generated from loans sold and deposit fees more than offset
 the increased operating expenses associated with the continued expenses
 related to the expansion of our Branch and ATM Network, along with the
 expenses associated with our technology investment.  The bank's Internet
 banking product is now available to all of our customers," Pearson said.
     The corporation is completing plans for the express banking facility on
 Coleman Boulevard.  Management plans to use this facility to provide personal
 and business services to those customers along the Coleman Boulevard corridor.
 This will be the Bank's second branch in Mt. Pleasant.  Construction will be
 completed by the end of the third quarter.
     The 10% stock dividend announced on March 2, 2001 has been distributed to
 Southcoast shareholders as of April 16, 2001.
     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.  Trading in Southcoast Financial Corporation's common stock is
 reported on the Nasdaq Bulletin Board under the symbol SOCB. Information about
 the corporation is available on our web site, www.southcoastbank.com.
     This press release contains forward-looking statements about branch
 openings within the meaning of the Securities Litigation Reform Act of 1995.
 Forward-looking statements give our expectations or forecasts of future
 events.
     Any or all of our forward-looking statements here or in other publications
 may turn out to be wrong.  They can be affected by inaccurate assumptions or
 by known or unknown risks and uncertainties.  Many such factors will be
 important in determining our actual future results.  Consequently, no forward
 looking-statements can be guaranteed.  Our actual results may vary materially,
 and there are no guarantees about the performance of our stock.
     We undertake no obligation to correct or update any forward-looking
 statements, whether as a result of new information, future results or
 otherwise.  You are advised, however, to consult any future disclosures we
 make on related subjects in our reports to the SEC.
 
     Contact Robert M. Scott, Executive Vice President and Chief Financial
             Officer, (843) 884-0504
 
 
                        Southcoast Financial Corporation
                      Consolidated Statement of Condition
                             (Dollars in thousands)
 
 
                                     March 31        March 31      March 31
                                       2001            2000          1999
                                   (Unaudited)     (Unaudited)    (Unaudited)
     Assets
     Cash and due from banks          $2,846          $1,948          $444
     Interest bearing deposits         1,172           2,456           977
     Federal Funds sold                3,080           2,250         5,140
     Investments                       6,247           3,103         3,293
     Loans:
      Commercial                      44,113          22,992         6,864
      Residential Mortgages           33,762          22,344        10,170
      Consumer                         6,694           4,885         1,278
 
     Total loans                      84,569          50,221        18,312
     Less: Allowance for loan losses   1,001             865           550
 
     Net loans                        83,568          49,356        17,762
     Fixed assets                      6,167           4,768         2,213
     Other assets                      2,275           1,663           563
 
     Total Assets                   $105,355         $65,544       $30,392
 
     Liabilities & Shareholders' Equity
     Deposits:
      Non interest bearing           $11,327          $6,243        $2,728
      Interest bearing                66,360          39,642        16,555
 
     Total deposits                   77,687          45,885        19,283
     Other borrowings                 17,800           9,300         1,000
     Other liabilities                   694             613           201
 
     Total liabilities                96,181          55,798        20,484
     Shareholders' Equity
      Common Stock                     9,560          10,520        10,520
      Retained Earnings (deficit)       (386)           (774)         (612)
 
     Total shareholders' equity        9,174           9,746         9,908
       Total Liabilities and
        Shareholders' Equity        $105,355         $65,544       $30,392
 
 
     Book Value                        $8.89           $8.45         $8.59
 
     Reserve to Loans Ratio            1.18%           1.72%         3.00%
 
 
 
                         Southcoast Financial Corporation
                           Consolidated Income Statement
                               (Dollars in thousands)
 
 
                                                 Quarters Ended
                                   March 31,        March 31,       March 31,
                                     2001             2000            2000
                                  (Unaudited)     (Unaudited)     (Unaudited)
     Interest Income
      Interest and fees on loans      $1,963          $1,170          $366
      Interest on investments             96              58            47
      Interest on Fed funds sold          29              17            49
 
       Total interest income           2,088           1,245           462
 
     Interest expense                  1,169             603           140
 
      Net interest income                919             642           322
     Provision for loan losses            60              30           225
 
      Net interest after provision       859             612            97
 
     Other non interest income           229              88            58
 
      Total operating income           1,088             700           155
 
     Non-interest expense
      Salaries and benefits              559             408           252
      Occupancy and equipment            156              98            47
      Other expenses                     215             137            80
 
       Total non-interest expense        930             643           379
 
     Income (loss) before taxes          158              57          (224)
     Income tax expense (benefit)         54              19           (76)
 
     Net income (loss)                  $104             $38         ($148)
 
     EPS                               $0.10           $0.03        ($0.13)
 
     Average number of common
      shares adjusted for stock
      split                        1,006,361       1,152,786     1,152,786
 
 
                        Southcoast Financial Corporation
                           Key Performance Indicators
                             For the Quarter Ended
                             (Dollars in Thousands)
 
 
                      March     Dec.      Sept.      June      March     Dec.
                      2001      2000      2000       2000      2000      1999
 
     Total assets  $105,355   $92,105   $86,466    $77,812   $65,544   $55,248
 
     Total loans    $84,569   $75,375   $68,059    $60,964   $50,221   $43,988
     Total deposits $77,686   $66,172   $63,680    $56,896   $45,885   $38,245
 
     # of loan
      accounts        1,139     1,066       967        860       750       611
     # deposit
      accounts        3,144     2,943     2,745      2,400     1,956     1,732
 
     Total accounts   4,283     4,009     3,712      3,260     2,706     2,343
 
     Net interest
      income         $1,169      $832      $759       $745      $642      $551
     Loan loss
      reserve        $1,001      $941      $911       $895      $865      $835
     Earnings (Loss)   $104       $59       $62        $53       $38       $20
     Earnings (Loss)
      per share  **   $0.10     $0.06     $0.06      $0.05     $0.03     $0.02
 
     Equity ##       $9,174    $9,152    $9,343     $9,447    $9,749    $9,720
     Book value  **   $8.89     $8.79     $8.69      $8.55     $8.46     $8.43
 
     # offices open       3         3         3          3         2         2
     # offices under
      construction        1         1         1          1         1         1
     # offices under
      purchase contract   1
 
     Full time
      equivalent
      personnel          38        37        39         39        36        27
 
     Average shares
      adjusted    1,036,311 1,050,582 1,092,648  1,096,377 1,152,787 1,152,787
 
     **   Adjusted for stock dividend
 
     ##   Decreases in December, September, and June 2000 is attributable to
          the stock buy back program
 
 
                          Sept.      June       March        Dec.       Sept.
                          1999       1999       1999        1998        1998
 
     Total assets       $48,107    $41,112    $30,392     $20,683     $14,407
 
     Total loans        $36,573    $28,081    $18,312     $11,147      $2,792
     Total deposits     $33,233    $27,039    $19,283      $9,559      $4,109
 
     # of loan accounts     503        371        229         115          36
     # deposit
      accounts            1,341      1,017        736         446         253
 
     Total accounts       1,844      1,388        965         561         289
 
     Net interest income   $549       $452       $322        $251        $157
     Loan loss reserve     $805       $775       $550        $325        $100
     Earnings (Loss)        $14      ($150)     ($148)      ($296)      ($155)
     Earnings (Loss)
      per share  **       $0.01     ($0.13)    ($0.13)     ($0.26)     ($0.13)
 
     Equity ##           $9,702     $9,713     $9,908     $10,075     $10,214
     Book value  **       $8.42      $8.43      $8.59       $8.74       $8.86
 
     # offices open           2          1          1           1           1
     # offices under
      construction            1          2          1
     # offices under
      purchase contract
 
     Full time equivalent
      personnel              24         23         23          17          13
 
     Average shares
      adjusted        1,152,787  1,152,787  1,152,787   1,152,787   1,152,787
 
     **  Adjusted for stock dividend
 
     ##  Decreases in December, September, and June 2000 is attributable to the
         stock buy back program
 
 SOURCE  Southcoast Financial Corporation