Attached files
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| 8-K - 8-K - TIDELANDS BANCSHARES INC | a12-26170_18k.htm |
Exhibit 99.1
News Release
Contact:
Thomas Lyles
Chief Executive Officer and President
875 Lowcountry Blvd
Mount Pleasant, SC 29464
(843) 388-8433
Tidelands Bancshares Announces Third Quarter Results
Tidelands Bancshares, Inc., the holding company for Tidelands Bank, announced that the net loss for the nine months ended September 30, 2012 was $2,255,102 and net loss available to common shareholders was $2,974,419, after the preferred dividend. In comparison, the net loss for the nine months ended September 30, 2011 was $8,726,473 and net loss attributable to common shareholders was $9,434,377. This is an improvement in loss of 74% year over year. The main driver behind this loss is the provision for loan loss which was $2,760,068 in the 2012 period versus $10,050,117 in the 2011 period.
The net loss for the third quarter of 2012 was $2,368,356 compared to income of $1,650,678 for the third quarter of 2011. After dividends accrued for payment to the U.S. Treasury on preferred stock, net loss available to common shareholders for the quarter was $2,608,129 compared to income of $1,414,710 for the same period of 2011. The main driver behind this loss was the provision for loan loss of $2,225,068 for the 2012 period compared to $300,000 in the 2011 period. The 2011 period had a gain on sale of securities of $1,209,050 compared to $0 in the 2012 period.
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, Berkeley, 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 quarters ended September 30, 2012 and 2011are 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
|
|
|
September 30, |
|
December 31, |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
(Unaudited) |
|
(Audited) |
| ||
|
Assets: |
|
|
|
|
| ||
|
Cash and cash equivalents: |
|
|
|
|
| ||
|
Cash and due from banks |
|
$ |
5,261,493 |
|
$ |
4,552,076 |
|
|
Federal funds sold |
|
29,760,000 |
|
39,610,000 |
| ||
|
Total cash and cash equivalents |
|
35,021,493 |
|
44,162,076 |
| ||
|
Securities available-for-sale |
|
87,325,554 |
|
57,145,909 |
| ||
|
Nonmarketable equity securities |
|
2,383,750 |
|
3,317,450 |
| ||
|
Total securities |
|
89,709,304 |
|
60,463,359 |
| ||
|
Mortgage loans held for sale |
|
209,699 |
|
416,849 |
| ||
|
Loans receivable |
|
350,103,519 |
|
379,643,539 |
| ||
|
Less allowance for loan losses |
|
8,080,908 |
|
10,320,259 |
| ||
|
Loans, net |
|
342,022,611 |
|
369,323,280 |
| ||
|
Premises, furniture and equipment, net |
|
21,637,119 |
|
22,285,895 |
| ||
|
Accrued interest receivable |
|
1,831,649 |
|
1,850,487 |
| ||
|
Bank owned life insurance |
|
15,308,505 |
|
14,947,329 |
| ||
|
Other real estate owned |
|
20,476,742 |
|
18,905,600 |
| ||
|
Other assets |
|
1,088,064 |
|
1,760,923 |
| ||
|
Total assets |
|
$ |
527,305,186 |
|
$ |
534,115,798 |
|
|
|
|
|
|
|
| ||
|
Liabilities: |
|
|
|
|
| ||
|
Deposits: |
|
|
|
|
| ||
|
Noninterest-bearing transaction accounts |
|
$ |
15,430,468 |
|
$ |
12,283,423 |
|
|
Interest-bearing transaction accounts |
|
42,326,781 |
|
23,492,325 |
| ||
|
Savings and money market accounts |
|
100,738,141 |
|
111,283,544 |
| ||
|
Time deposits $100,000 and over |
|
178,831,781 |
|
183,133,192 |
| ||
|
Other time deposits |
|
113,000,066 |
|
115,321,975 |
| ||
|
Total deposits |
|
450,327,237 |
|
445,514,459 |
| ||
|
|
|
|
|
|
| ||
|
Securities sold under agreements to repurchase |
|
10,000,000 |
|
20,000,000 |
| ||
|
Advances from Federal Home Loan Bank |
|
34,000,000 |
|
34,000,000 |
| ||
|
Junior subordinated debentures |
|
14,434,000 |
|
14,434,000 |
| ||
|
ESOP borrowings |
|
1,275,000 |
|
1,425,000 |
| ||
|
Accrued interest payable |
|
2,491,161 |
|
2,037,862 |
| ||
|
Other liabilities |
|
3,181,872 |
|
2,646,195 |
| ||
|
Total liabilities |
|
515,709,270 |
|
520,057,516 |
| ||
|
|
|
|
|
|
| ||
|
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 September 30, 2012 and December 31, 2011 |
|
14,135,881 |
|
13,958,364 |
| ||
|
Common stock, $.01 par value, 75,000,000 shares authorized; 4,277,176 shares issued and outstanding at September 30, 2012 and December 31, 2011 |
|
42,772 |
|
42,772 |
| ||
|
Common stock-warrant, 571,821 shares outstanding at September 30, 2012 and December 31, 2011 |
|
1,112,248 |
|
1,112,248 |
| ||
|
Unearned ESOP shares |
|
(1,562,051 |
) |
(1,681,103 |
) | ||
|
Capital surplus |
|
43,073,284 |
|
43,188,836 |
| ||
|
Retained deficit |
|
(45,534,642 |
) |
(42,560,223 |
) | ||
|
Accumulated other comprehensive income (loss) |
|
328,424 |
|
(2,612 |
) | ||
|
Total shareholders’ equity |
|
11,595,916 |
|
14,058,282 |
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
527,305,186 |
|
$ |
534,115,798 |
|
Tidelands Bancshares, Inc. and Subsidiary
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the nine and three months ended September 30, 2012 and 2011
(Unaudited)
|
|
|
Nine Months Ended |
|
Three Months Ended |
| ||||||||
|
|
|
September 30, |
|
September 30, |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
Interest income: |
|
|
|
|
|
|
|
|
| ||||
|
Loans, including fees |
|
$ |
14,225,130 |
|
$ |
16,080,236 |
|
$ |
4,393,452 |
|
$ |
5,161,786 |
|
|
Securities available for sale, taxable |
|
1,527,529 |
|
1,511,584 |
|
514,033 |
|
474,985 |
| ||||
|
Federal funds sold |
|
61,149 |
|
41,527 |
|
18,763 |
|
12,819 |
| ||||
|
Other interest income |
|
21,438 |
|
366 |
|
10,385 |
|
239 |
| ||||
|
Total interest income |
|
15,835,246 |
|
17,633,713 |
|
4,936,633 |
|
5,649,829 |
| ||||
|
Interest expense: |
|
|
|
|
|
|
|
|
| ||||
|
Time deposits $100,000 and over |
|
1,978,304 |
|
2,057,134 |
|
642,431 |
|
672,395 |
| ||||
|
Other deposits |
|
1,978,029 |
|
2,500,668 |
|
625,485 |
|
753,187 |
| ||||
|
Other borrowings |
|
1,690,004 |
|
1,806,880 |
|
552,139 |
|
571,329 |
| ||||
|
Total interest expense |
|
5,646,337 |
|
6,364,682 |
|
1,820,055 |
|
1,996,911 |
| ||||
|
Net interest income |
|
10,188,909 |
|
11,269,031 |
|
3,116,578 |
|
3,652,918 |
| ||||
|
Provision for loan losses |
|
2,760,068 |
|
10,050,117 |
|
2,225,068 |
|
300,000 |
| ||||
|
Net interest income after provision for loan losses |
|
7,428,841 |
|
1,218,914 |
|
891,510 |
|
3,352,918 |
| ||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
| ||||
|
Service charges on deposit accounts |
|
38,341 |
|
38,988 |
|
12,141 |
|
13,326 |
| ||||
|
Residential mortgage origination income |
|
146,526 |
|
113,395 |
|
47,029 |
|
31,819 |
| ||||
|
Gain on sale of securities available-for-sale |
|
270,781 |
|
1,209,050 |
|
— |
|
1,209,050 |
| ||||
|
Other service fees and commissions |
|
308,034 |
|
414,941 |
|
98,545 |
|
120,218 |
| ||||
|
Increase in cash surrender value of BOLI |
|
361,176 |
|
404,736 |
|
113,584 |
|
132,961 |
| ||||
|
Other |
|
16,158 |
|
54,653 |
|
2,623 |
|
32,148 |
| ||||
|
Total noninterest income |
|
1,141,016 |
|
2,235,763 |
|
273,922 |
|
1,539,522 |
| ||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
| ||||
|
Salaries and employee benefits |
|
4,086,950 |
|
4,521,539 |
|
1,365,173 |
|
1,324,396 |
| ||||
|
Net occupancy |
|
1,185,174 |
|
1,207,343 |
|
399,765 |
|
405,129 |
| ||||
|
Furniture and equipment |
|
628,175 |
|
635,152 |
|
205,177 |
|
219,188 |
| ||||
|
Other real estate owned expense |
|
1,426,514 |
|
1,932,861 |
|
369,552 |
|
150,728 |
| ||||
|
Other operating |
|
3,498,146 |
|
3,932,947 |
|
1,194,121 |
|
1,142,321 |
| ||||
|
Total noninterest expense |
|
10,824,959 |
|
12,229,842 |
|
3,533,788 |
|
3,241,762 |
| ||||
|
Income (loss) before income taxes |
|
(2,255,102 |
) |
(8,775,165 |
) |
(2,368,356 |
) |
1,650,678 |
| ||||
|
Income tax benefit |
|
— |
|
(48,692 |
) |
— |
|
— |
| ||||
|
Net income (loss) |
|
(2,255,102 |
) |
(8,726,473 |
) |
(2,368,356 |
) |
1,650,678 |
| ||||
|
Accretion of preferred stock to redemption value |
|
177,517 |
|
166,104 |
|
59,173 |
|
55,368 |
| ||||
|
Preferred dividends accrued |
|
541,800 |
|
541,800 |
|
180,600 |
|
180,600 |
| ||||
|
Net Income (loss) available to common shareholders |
|
$ |
(2,974,419 |
) |
$ |
(9,434,377 |
) |
$ |
(2,608,129 |
) |
$ |
1,414,710 |
|
|
Other Comprehensive Income (loss): |
|
|
|
|
|
|
|
|
| ||||
|
Unrealized gain on securities available for sale |
|
822,672 |
|
2,546,545 |
|
224,240 |
|
1,723,904 |
| ||||
|
Reclassification adjustment for realized gain on securities |
|
(270,781 |
) |
(1,209,050 |
) |
— |
|
(1,209,050 |
) | ||||
|
Tax effect |
|
(220,855 |
) |
(508,248 |
) |
(85,211 |
) |
(195,644 |
) | ||||
|
Total other comprehensive income |
|
331,036 |
|
829,247 |
|
139,029 |
|
319,210 |
| ||||
|
Comprehensive Income (Loss) |
|
$ |
(2,643,383 |
) |
$ |
(8,605,130 |
) |
$ |
(2,469,100 |
) |
$ |
1,733,920 |
|
|
Net Income (loss) per common share: |
|
|
|
|
|
|
|
|
| ||||
|
Basic Income (loss) per share |
|
$ |
(0.73 |
) |
$ |
(2.31 |
) |
$ |
(0.64 |
) |
$ |
0.35 |
|
|
Diluted Income (loss) per share |
|
$ |
(0.73 |
) |
$ |
(2.31 |
) |
$ |
(0.64 |
) |
$ |
0.35 |
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
4,096,280 |
|
4,088,372 |
|
4,100,295 |
|
4,092,053 |
| ||||
|
Diluted |
|
4,096,280 |
|
4,088,372 |
|
4,100,295 |
|
4,092,053 |
| ||||