Attached files
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| 8-K - 8-K - TIDELANDS BANCSHARES INC | a11-23810_18k.htm |
Exhibit 99.1
News Release
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Contact: Media: |
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Thomas H. Lyles, Executive Chief Officer and acting Principal Financial Officer |
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843-388-8433 |
Website: www.tidelandsbank.com
EARNINGS ANNOUNCEMENT
FOR IMMEDIATE RELEASE
AUGUST 4, 2011
Tidelands Bancshares, Inc. reported that its second quarter 2011 net loss improved 49% from the same quarter of 2010, after accruals for dividends payable on preferred stock held by the U. S. Treasury. Net loss for the quarter ended June 30, 2011 was $4.1 million as compared to $8.1 million for the quarter ended June 30, 2010. For the six month period, the loss declined from $10.1 million at June 30, 2010 to $8.6 million at June 30, 2011, an improvement of 15%. The improvement was driven by a reduction in the provision for possible loan losses of 46% for the quarter and 23% for the six month year-to-date period as compared to the same periods of the prior year. Improvement in a number of asset quality metrics permitted the reduction in provision expense. Loans past due 90 days or more and nonaccrual loans were reduced 29.6% from the beginning of 2011 to June 30, 2011. Total loans past due 30 days or more declined $9.7 million during the first six months of 2011.
Capital ratios at Tidelands Bank, the subsidiary of Tidelands Bancshares, Inc., remained in excess of statutory requirements. The Bank’s leverage ratio of 5.42% exceeds the 4% requirement to be adequately capitalized under bank regulations.
Tidelands Bank operates seven coastal area branches in Horry County, Charleston Tri-County, and Beaufort County. Tidelands Bancshares, Inc.’s common stock trades under the symbol TDBK.pk.
For further information contact: Thomas H. Lyles
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the quarter ended June 30, 2011 are unaudited but, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.
Consolidated Statements of Operations
For the six and three months ended June 30, 2011 and 2010
(Unaudited)
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Six Months Ended |
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Three Months Ended |
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June 30, |
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June 30, |
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2011 |
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2010 |
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2011 |
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2010 |
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Interest income: |
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Loans, including fees |
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$ |
10,918,450 |
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$ |
12,425,237 |
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$ |
5,287,547 |
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$ |
6,101,689 |
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Securities available for sale, taxable |
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1,036,598 |
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4,189,763 |
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525,886 |
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1,701,796 |
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Securities available for sale, non-taxable |
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— |
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37,723 |
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— |
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15,533 |
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Federal funds sold |
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28,708 |
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37,426 |
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12,789 |
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24,705 |
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Other interest income |
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129 |
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879 |
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28 |
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763 |
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Total interest income |
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11,983,885 |
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16,691,028 |
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5,826,251 |
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7,844,486 |
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Interest expense: |
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Time deposits $100,000 and over |
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1,384,739 |
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1,305,127 |
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679,073 |
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633,543 |
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Other deposits |
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1,747,481 |
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3,720,647 |
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824,928 |
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1,660,361 |
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Other borrowings |
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1,235,551 |
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1,781,962 |
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697,217 |
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860,838 |
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Total interest expense |
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4,367,771 |
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6,807,736 |
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2,201,218 |
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3,154,742 |
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Net interest income |
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7,616,114 |
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9,883,292 |
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3,625,033 |
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4,689,744 |
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Provision for loan losses |
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7,502,000 |
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9,750,000 |
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3,300,000 |
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6,150,000 |
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Net interest income (loss) after provision for loan losses |
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114,114 |
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133,292 |
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325,033 |
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(1,460,256 |
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Noninterest income (loss): |
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Service charges on deposit accounts |
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25,662 |
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22,809 |
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12,827 |
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11,555 |
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Residential mortgage origination income |
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81,576 |
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124,091 |
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32,090 |
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58,125 |
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Gain on sale of securities available for sale |
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— |
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1,347,131 |
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— |
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1,208,289 |
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Other service fees and commissions |
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294,723 |
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261,046 |
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138,604 |
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130,367 |
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Increase in cash surrender value of BOLI |
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271,775 |
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273,452 |
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136,838 |
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140,067 |
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Loss on extinguishment of debt |
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— |
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(1,619,771 |
) |
— |
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(2,019,771 |
) | ||||
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Other |
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22,506 |
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34,380 |
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16,302 |
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21,470 |
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Total noninterest income (loss) |
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696,242 |
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443,138 |
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336,661 |
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(449,898 |
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Noninterest expense: |
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Salaries and employee benefits |
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3,197,144 |
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3,959,284 |
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1,504,930 |
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1,919,625 |
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Net occupancy |
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802,213 |
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820,713 |
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409,918 |
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414,003 |
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Furniture and equipment |
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415,965 |
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446,144 |
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212,632 |
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235,109 |
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Other real estate owned expense |
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1,782,133 |
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1,590,816 |
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928,856 |
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1,390,655 |
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Other operating |
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2,790,626 |
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3,419,717 |
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1,552,595 |
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2,035,644 |
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Total noninterest expense |
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8,988,081 |
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10,236,674 |
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4,608,931 |
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5,995,036 |
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Loss before income taxes |
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(8,177,725 |
) |
(9,660,244 |
) |
(3,947,237 |
) |
(7,905,190 |
) | ||||
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Income tax benefit |
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(48,692 |
) |
— |
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(48,692 |
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— |
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Net loss |
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(8,129,033 |
) |
(9,660,244 |
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(3,898,545 |
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(7,905,190 |
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Accretion of preferred stock to redemption value |
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110,736 |
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103,616 |
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55,368 |
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51,808 |
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Preferred dividends accrued |
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361,200 |
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363,207 |
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180,600 |
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182,607 |
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Net loss available to common shareholders |
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$ |
(8,600,969 |
) |
$ |
(10,127,067 |
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$ |
(4,134,513 |
) |
$ |
(8,139,605 |
) |
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Loss per common share |
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Basic loss per share |
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$ |
(2.10 |
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$ |
(2.48 |
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$ |
(1.02 |
) |
$ |
(1.99 |
) |
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Diluted loss per share |
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$ |
(2.10 |
) |
$ |
(2.48 |
) |
$ |
(1.02 |
) |
$ |
(1.99 |
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Weighted average common shares outstanding |
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Basic |
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4,086,502 |
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4,087,917 |
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4,041,341 |
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4,085,622 |
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Diluted |
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4,086,502 |
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4,087,917 |
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4,041,341 |
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4,085,622 |
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Tidelands Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
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June 30, |
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December 31, |
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2011 |
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2010 |
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(Unaudited) |
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(Audited) |
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Assets: |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
5,612,472 |
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$ |
3,657,977 |
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Federal funds sold |
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17,673,000 |
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24,069,000 |
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Total cash and cash equivalents |
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23,285,472 |
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27,726,977 |
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Securities available-for-sale |
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55,614,045 |
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57,955,698 |
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Nonmarketable equity securities |
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4,290,750 |
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5,267,750 |
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Total securities |
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59,904,795 |
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63,223,448 |
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Mortgage loans held for sale |
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— |
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— |
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Loans receivable |
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404,544,682 |
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437,688,015 |
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Less allowance for loan losses |
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11,183,245 |
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11,459,047 |
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Loans, net |
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393,361,437 |
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426,228,968 |
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Premises, furniture and equipment, net |
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22,394,960 |
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22,422,388 |
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Accrued interest receivable |
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1,833,663 |
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1,928,992 |
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Bank owned life insurance |
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14,686,401 |
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14,414,626 |
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Other real estate owned |
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18,108,543 |
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11,905,865 |
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Other assets |
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2,274,783 |
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3,439,207 |
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Total assets |
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$ |
535,850,054 |
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$ |
571,290,471 |
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Liabilities: |
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Deposits: |
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Noninterest-bearing transaction accounts |
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$ |
14,883,850 |
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$ |
14,573,484 |
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Interest-bearing transaction accounts |
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23,023,246 |
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26,474,037 |
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Savings and money market accounts |
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112,893,814 |
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142,644,095 |
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Time deposits $100,000 and over |
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185,813,171 |
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176,293,300 |
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Other time deposits |
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109,342,262 |
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121,008,483 |
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Total deposits |
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445,956,343 |
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480,993,399 |
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Securities sold under agreements to repurchase |
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20,000,000 |
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20,000,000 |
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Advances from Federal Home Loan Bank |
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34,000,000 |
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27,000,000 |
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Junior subordinated debentures |
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14,434,000 |
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14,434,000 |
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ESOP borrowings |
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1,525,000 |
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1,625,000 |
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Accrued interest payable |
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1,676,671 |
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1,510,282 |
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Other liabilities |
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2,588,558 |
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2,085,131 |
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Total liabilities |
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520,180,572 |
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547,647,812 |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock, $.01 par value and liquidation value per share of $1,000, 10,000,000 shares authorized, 14,448 issued and outstanding at June 30, 2011 and December 31, 2010 |
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13,847,628 |
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13,736,892 |
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Common stock, $.01 par value, 10,000,000 shares authorized; 4,277,176 shares issued and outstanding at June 30, 2011 and December 31, 2010 |
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42,772 |
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42,772 |
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Common stock-warrant, 571,821 shares outstanding at June 30, 2011 and December 31, 2010 |
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1,112,248 |
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1,112,248 |
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Unearned ESOP shares |
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(1,794,232 |
) |
(1,907,361 |
) | ||
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Capital surplus |
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43,298,769 |
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43,404,879 |
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Retained deficit |
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(41,105,125 |
) |
(32,504,156 |
) | ||
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Accumulated other comprehensive income |
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267,422 |
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(242,615 |
) | ||
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Total shareholders’ equity |
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15,669,482 |
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23,642,659 |
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Total liabilities and shareholders’ equity |
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$ |
535,850,054 |
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$ |
571,290,471 |
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