Attached files
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| 8-K - 8-K - TIDELANDS BANCSHARES INC | a12-6927_18k.htm |
Exhibit 99.1
News Release
Contact:
Thomas Lyles
Chief Executive Officer and acting President
875 Lowcountry Blvd
Mount Pleasant, SC 29464
(843) 388-8433
Tidelands Bancshares Announces Fourth Quarter Results
Tidelands Bancshares, Inc. reported that its fourth quarter, 2011, net loss available to common shareholders was $622 thousand as compared to a $6 million loss for the same period of 2010. For the full year of 2011, net loss available to common shareholders was $10.0 million, an improvement of $6.5 million from 2010 levels of $16.5 million. Tidelands Bank, the wholly owned subsidiary of Tidelands Bancshares, Inc., reflected a fourth quarter loss of $70 thousand as compared to a loss of $5.4 million for the fourth quarter of 2010, and an $8.2 million loss for the year as compared to $14.4 million for 2010.
Total assets for the company declined $37 million during 2011, led primarily by a shrinking loan portfolio. Total deposits were reduced by $35 million over the same period. Capital levels for the bank at year end 2011 were in excess of the levels required to be adequately capitalized under banking regulations.
During 2011, Tidelands Bank continued to work through its nonperforming assets. The second half of the year reflected progress in this area as evidenced by the decline in the provision for possible loan losses from $9.8 million during the first six months of 2011 to $868 thousand in the second half of the year.
About Tidelands Bancshares, Inc.
Tidelands Bancshares, Inc., headquartered in Mt. Pleasant, SC, operates as a bank holding company of Tidelands Bank. Tidelands Bank is a local community bank focused on serving individuals, families, entrepreneurs, and small businesses in the South Carolina Lowcountry, with 7 locations serving Charleston, Dorchester, Berkley, Horry, and Beaufort counties. Tidelands Bank offers mortgages, construction loans, deposit products, internet banking, 24 hour telephone banking, and ATM service, and takes great pride in providing the custom banking solutions and services necessary to meet customer needs. Traded on the NASDAQ pink sheets market as TDBK.PK, Tidelands can also be found on the web at www.tidelandsbank.com. For more information regarding the matters described in this press release, please refer to Tidelands Bancshares, Inc.’s filings, including on Form 10-K, with the Securities and Exchange Commission at www.sec.gov.
Forward Looking Statements
Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans, expectations and benefits of the strategic plan, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, greater than expected
noninterest expenses, volatile credit and financial markets, potential deterioration in real estate values, and regulatory changes and excessive loan losses, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, or otherwise.
-Financial Tables Follow-
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the quarter ended September 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.
Item 1. Financial Statements
Tidelands Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
|
|
|
December 31, |
|
December 31, |
| ||
|
|
|
2011 |
|
2010 |
| ||
|
Assets: |
|
|
|
|
| ||
|
Cash and cash equivalents: |
|
|
|
|
| ||
|
Cash and due from banks |
|
$ |
4,552,076 |
|
$ |
3,657,977 |
|
|
Federal funds sold |
|
39,610,000 |
|
24,069,000 |
| ||
|
Total cash and cash equivalents |
|
44,162,076 |
|
27,726,977 |
| ||
|
Securities available-for-sale |
|
57,145,909 |
|
57,955,698 |
| ||
|
Nonmarketable equity securities |
|
3,317,450 |
|
5,267,750 |
| ||
|
Total securities |
|
60,463,359 |
|
63,223,448 |
| ||
|
Mortgage loans held for sale |
|
416,849 |
|
— |
| ||
|
Loans receivable |
|
379,643,539 |
|
437,688,015 |
| ||
|
Less allowance for loan losses |
|
10,320,259 |
|
11,459,047 |
| ||
|
Loans, net |
|
369,323,280 |
|
426,228,968 |
| ||
|
Premises, furniture and equipment, net |
|
22,285,895 |
|
22,422,388 |
| ||
|
Accrued interest receivable |
|
1,850,487 |
|
1,928,992 |
| ||
|
Bank owned life insurance |
|
14,947,329 |
|
14,414,626 |
| ||
|
Other real estate owned |
|
18,905,600 |
|
11,905,865 |
| ||
|
Other assets |
|
1,760,923 |
|
3,439,207 |
| ||
|
Total assets |
|
$ |
534,115,798 |
|
$ |
571,290,471 |
|
|
|
|
|
|
|
| ||
|
Liabilities: |
|
|
|
|
| ||
|
Deposits: |
|
|
|
|
| ||
|
Noninterest-bearing transaction accounts |
|
$ |
12,283,423 |
|
$ |
14,573,484 |
|
|
Interest-bearing transaction accounts |
|
23,492,325 |
|
26,474,037 |
| ||
|
Savings and money market accounts |
|
111,283,544 |
|
142,644,095 |
| ||
|
Time deposits $100,000 and over |
|
183,133,192 |
|
176,293,300 |
| ||
|
Other time deposits |
|
115,321,975 |
|
121,008,483 |
| ||
|
Total deposits |
|
445,514,459 |
|
480,993,399 |
| ||
|
|
|
|
|
|
| ||
|
Securities sold under agreements to repurchase |
|
20,000,000 |
|
20,000,000 |
| ||
|
Advances from Federal Home Loan Bank |
|
34,000,000 |
|
27,000,000 |
| ||
|
Junior subordinated debentures |
|
14,434,000 |
|
14,434,000 |
| ||
|
ESOP borrowings |
|
1,425,000 |
|
1,625,000 |
| ||
|
Accrued interest payable |
|
2,037,862 |
|
1,510,282 |
| ||
|
Other liabilities |
|
2,646,195 |
|
2,085,131 |
| ||
|
Total liabilities |
|
520,057,516 |
|
547,647,812 |
| ||
|
|
|
|
|
|
| ||
|
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Shareholders’ equity: |
|
|
|
|
| ||
|
Preferred stock, $.01 par value and liquidation value per share of $1,000, 10,000,000 shares authorized, 14,448 issued and outstanding at December 31, 2010 and 2009 |
|
13,958,364 |
|
13,736,892 |
| ||
|
Common stock, $.01 par value, 10,000,000 shares authorized; 4,277,176 shares issued and outstanding at December 31, 2010 and 2009 |
|
42,772 |
|
42,772 |
| ||
|
Common stock-warrant, 571,821 shares outstanding at December 31, 2010 and 2009 |
|
1,112,248 |
|
1,112,248 |
| ||
|
Unearned ESOP shares |
|
(1,681,103 |
) |
(1,907,361 |
) | ||
|
Capital surplus |
|
43,188,836 |
|
43,404,879 |
| ||
|
Retained deficit |
|
(42,560,223 |
) |
(32,504,156 |
) | ||
|
Accumulated other comprehensive loss |
|
(2,612 |
) |
(242,615 |
) | ||
|
Total shareholders’ equity |
|
14,058,282 |
|
23,642,659 |
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
534,115,798 |
|
$ |
571,290,471 |
|
Tidelands Bancshares, Inc. and Subsidiary
Consolidated Statements of Operations
For the years ended December 31, 2011, 2010 and 2009
|
|
|
2011 |
|
2010 |
|
2009 |
| |||
|
Interest income: |
|
|
|
|
|
|
| |||
|
Loans, including fees |
|
$ |
21,220,605 |
|
$ |
24,169,733 |
|
$ |
25,512,610 |
|
|
Securities available-for-sale, taxable |
|
1,870,866 |
|
4,849,934 |
|
9,922,547 |
| |||
|
Securities available-for-sale, non-taxable |
|
0 |
|
37,723 |
|
148,437 |
| |||
|
Federal funds sold |
|
46,578 |
|
66,242 |
|
25,803 |
| |||
|
Other interest income |
|
12,434 |
|
23,757 |
|
2,741 |
| |||
|
Total interest income |
|
23,150,483 |
|
29,147,389 |
|
35,612,138 |
| |||
|
Interest expense: |
|
|
|
|
|
|
| |||
|
Time deposits $100,000 and over |
|
2,734,535 |
|
2,773,925 |
|
3,245,973 |
| |||
|
Other deposits |
|
3,241,408 |
|
6,082,310 |
|
10,100,461 |
| |||
|
Other borrowings |
|
2,374,372 |
|
2,809,700 |
|
4,212,222 |
| |||
|
Total interest expense |
|
8,350,315 |
|
11,665,935 |
|
17,558,656 |
| |||
|
Net interest income |
|
14,800,168 |
|
17,481,454 |
|
18,053,482 |
| |||
|
Provision for loan losses |
|
10,618,737 |
|
16,260,000 |
|
14,745,000 |
| |||
|
Net interest income after provision for loan losses |
|
4,181,431 |
|
1,221,454 |
|
3,308,482 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Noninterest income (loss): |
|
|
|
|
|
|
| |||
|
Service charges on deposit accounts |
|
51,704 |
|
45,565 |
|
41,605 |
| |||
|
Residential mortgage origination income |
|
161,115 |
|
258,430 |
|
404,855 |
| |||
|
Gain on sale of securities available-for-sale |
|
1,844,897 |
|
1,741,539 |
|
4,857,395 |
| |||
|
Other service fees and commissions |
|
543,524 |
|
543,963 |
|
522,289 |
| |||
|
Increase in cash surrender value of BOLI |
|
532,703 |
|
558,461 |
|
520,995 |
| |||
|
Loss on extinguishment of debt |
|
— |
|
(1,619,771 |
) |
— |
| |||
|
Impairment on equity securities |
|
— |
|
— |
|
(122,890 |
) | |||
|
Other |
|
57,249 |
|
51,302 |
|
48,180 |
| |||
|
Total noninterest income (loss) |
|
3,191,192 |
|
1,579,489 |
|
6,272,429 |
| |||
|
Noninterest expense: |
|
|
|
|
|
|
| |||
|
Salaries and employee benefits |
|
5,816,888 |
|
7,260,168 |
|
7,805,821 |
| |||
|
Net occupancy |
|
1,617,231 |
|
1,610,706 |
|
1,574,366 |
| |||
|
Furniture and equipment |
|
855,760 |
|
886,963 |
|
855,324 |
| |||
|
Other real estate owned expense |
|
2,954,325 |
|
2,569,992 |
|
750,544 |
| |||
|
Other operating |
|
5,289,306 |
|
6,037,162 |
|
5,472,176 |
| |||
|
Total noninterest expense |
|
16,533,510 |
|
18,364,991 |
|
16,458,231 |
| |||
|
Loss before income taxes |
|
(9,160,887 |
) |
(15,564,048 |
) |
(6,877,320 |
) | |||
|
Income tax expense (benefit) |
|
(48,692 |
) |
— |
|
3,379,655 |
| |||
|
Net loss |
|
$ |
(9,112,195 |
) |
$ |
(15,564,048 |
) |
$ |
(10,256,975 |
) |
|
Accretion of preferred stock to redemption value |
|
221,472 |
|
207,232 |
|
193,908 |
| |||
|
Preferred dividends accrued |
|
722,400 |
|
732,433 |
|
732,433 |
| |||
|
Net loss available to common shareholders |
|
$ |
(10,056,067 |
) |
$ |
(16,503,713 |
) |
$ |
(11,183,316 |
) |
|
Loss per common share |
|
|
|
|
|
|
| |||
|
Basic loss per share |
|
$ |
(2.49 |
) |
$ |
(4.04 |
) |
$ |
(2.75 |
) |
|
Diluted loss per share |
|
$ |
(2.49 |
) |
$ |
(4.04 |
) |
$ |
(2.75 |
) |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
| |||
|
Basic |
|
4,044,186 |
|
4,087,108 |
|
4,071,313 |
| |||
|
Diluted |
|
4,044,186 |
|
4,087,108 |
|
4,071,313 |
| |||