MT. PLEASANT, S.C., Oct. 31 /PRNewswire-FirstCall/ -- Tidelands Bancshares, Inc. , holding company for Tidelands Bank, today announced that earnings for the nine months ended September 30, 2006 were $1,115,554, or $0.36 per diluted share, as compared to a loss of $240,274, or $0.10 per diluted share, for the same period in 2005. Chip Coffee, President and CEO noted, "We are excited to build on our momentum during the first nine months of 2006 with a profitable third quarter, our fifth consecutive quarterly profit."
We are pleased with the growth in income and assets in the third quarter of 2006. Net income for the three months ended September 30, 2006 totaled $385,118, or $0.12 per diluted share, compared to $119,624, or $0.04 per diluted share, reported for the quarter ended September 30, 2005.
Since September 30, 2005, the loan portfolio has grown from $142.0 million to $265.4 million at the end of the third quarter 2006. This 87% growth in net loans contributed to an increase in assets of $136.8 million, from $179.6 million on September 30, 2005 to $316.4 million at the end of the most recent quarter. Total deposits increased $107.8 million, or 73%, to $255.7 million at September 30, 2006 from $147.9 million at September 30, 2005.
Return on average assets was 0.56% for the nine months ended September 30, 2006 (annualized), compared to (0.25%) for the nine months ended September 30, 2005 (annualized). Return on average shareholders' equity was 6.32% for the nine months ended September 30, 2006 (annualized), compared to (1.77%) for the same period in 2005 (annualized).
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 and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future 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.
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the nine and three months ended September 30, 2006 and 2005 have not been audited 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.
Tidelands Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Results of Operations: Nine Months Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
Interest income:
Loans, including
fees $14,354,568 $5,293,022 $5,547,789 $2,462,710
Securities available
for sale, taxable 805,295 483,303 409,487 160,283
Federal funds sold 169,748 154,075 76,158 96,708
Interest-bearing
balances 2,322 899 1,986 124
Total 15,331,933 5,931,299 6,035,420 2,719,825
Interest expense:
Time deposits
$100,000 and over 1,278,690 584,084 578,863 238,452
Other deposits 5,973,235 1,729,578 2,396,720 921,661
Other borrowings 901,087 196,870 472,811 81,547
Total 8,153,012 2,510,532 3,448,394 1,241,660
Net interest income 7,178,921 3,420,767 2,587,026 1,478,165
Provision for
loan losses 1,116,000 1,099,000 288,000 296,000
Net interest income
after provision for
loan losses 6,062,921 2,321,767 2,299,026 1,182,165
Non-interest income:
Service charges on
deposit accounts 16,753 8,829 5,875 3,586
Residential mortgage
origination income 531,502 231,481 188,400 83,697
Other service fees
and commissions 100,448 37,229 36,627 14,656
Other 13,918 8,142 4,767 5,317
Total non-interest
income 662,621 285,681 235,669 107,256
Non-interest expense:
Salaries and
employee benefits 3,052,543 1,738,155 1,210,173 692,773
Net occupancy 333,076 226,896 160,726 70,047
Furniture and
equipment 224,033 183,671 79,762 66,772
Other operating 1,345,336 822,200 472,916 278,205
Total non-interest
expense 4,954,988 2,970,922 1,923,577 1,107,797
Income (loss)
before income taxes 1,770,554 (363,474) 611,118 181,624
Income tax expense
(benefit) 655,000 (123,200) 226,000 62,000
Net income (loss) $1,115,554 $(240,274) $385,118 $119,624
Earnings (loss) per
common share
Basic earnings (loss)
per share $0.37 $(0.10) $0.13 $0.04
Diluted earnings (loss)
per share $0.36 $(0.10) $0.12 $0.04
Weighted average common
shares outstanding
Basic 3,053,032 2,478,831 3,066,626 3,038,311
Diluted 3,111,196 2,492,538 3,135,202 3,062,605
Tidelands Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
September 30, September 30 December 31,
2006 2005 2005
Assets: (Unaudited) (Unaudited) (Audited)
Cash and cash equivalents:
Cash and due from banks $2,356,199 $1,687,311 $1,863,057
Federal funds sold 2,986,000 16,409,000 6,365,000
Total cash and
cash equivalents 5,342,199 18,096,311 8,228,057
Securities available
for sale 32,816,906 12,616,357 11,782,299
Nonmarketable equity
securities 1,182,100 150,600 150,600
Total securities 33,999,006 12,766,957 11,932,899
Mortgage loans held
for sale 905,269 919,653 1,164,849
Loans receivable 268,743,122 143,824,520 179,660,168
Less allowance for
loan losses 3,361,000 1,799,000 2,245,000
Loans, net 265,382,122 142,025,520 177,415,168
Premises, furniture and
equipment, net 7,030,069 3,899,410 5,517,907
Accrued interest
receivable 1,727,340 633,093 905,228
Other assets 2,043,646 1,305,594 1,250,054
Total assets $316,429,651 $179,646,538 $206,414,162
Liabilities:
Deposits:
Noninterest-bearing
transaction accounts $9,235,990 $7,822,777 $7,823,659
Interest-bearing
transaction accounts 4,799,943 2,087,309 3,386,849
Savings and money
market 141,358,463 101,010,078 120,017,845
Time deposits $100,000
and over 56,901,323 25,900,884 23,404,171
Other time deposits 43,398,783 11,065,402 20,015,928
Total deposits 255,694,502 147,886,450 174,648,452
Note payable - 1,551,295 1,541,310
Securities sold under
agreements to repurchase 10,000,000 6,500,000 6,500,000
Junior subordinated
debentures 8,248,000 - -
FHLB advance 16,000,000 - -
Other borrowings - - 29,840
Accrued interest payable 1,051,382 424,182 444,999
Other liabilities 841,394 362,175 154,903
Total liabilities 291,835,278 156,724,102 183,319,504
Shareholders' equity:
Preferred stock, $.01
par value, 10,000,000
shares authorized,
none issued - - -
Common stock, $.01 par
value, 10,000,000 shares
authorized; 3,068,008,
3,039,888 and 3,044,054
shares issued
and outstanding at
September 30, 2006,
September 30, 2005
and December 31, 2005,
respectively 30,680 30,399 30,441
Capital surplus 25,422,145 25,061,959 25,098,578
Retained deficit (737,392) (2,132,740) (1,852,946)
Accumulated other
comprehensive income
(loss) (121,060) (37,182) (181,415)
Total shareholders'
equity 24,594,373 22,922,436 23,094,658
Total liabilities
and shareholders'
equity $316,429,651 $179,646,538 $206,414,162
Tidelands Bancshares, Inc. and Subsidiary
Per Share Data: Nine Months Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
Net income, basic $0.37 $(0.10) $0.13 $0.04
Net income, diluted $0.36 $(0.10) $0.12 $0.04
Book value $8.02 $7.54 $8.02 $7.54
Weighted average number
of shares outstanding:
Basic 3,053,032 2,478,831 3,066,626 3,038,311
Diluted 3,111,196 2,492,538 3,135,202 3,062,605
Performance Ratios:
Return on average
assets (1) 0.56% (0.25%) 0.50% 0.29%
Return on average
equity (1) 6.32% (1.77%) 6.33% 2.08%
Net interest
margin (1) 3.74% 3.71% 3.47% 3.67%
Efficiency ratio (2) 63.19% 80.16% 68.15% 69.87%
Asset Quality Ratios: At September 30,
2006 2005
Nonperforming assets, past due and
restructured loans to total loans (3) 0.00% 0.00%
Nonperforming assets, past due and
restructured to total assets 0.00% 0.00%
Net charged-offs year to date to
average total loans (3) 0.00% 0.00%
Allowance for loan losses to
nonperforming loans 0.00% 0.00%
Allowance for loan losses to total loans (3) 1.25% 1.25%
Capital Ratios: At September 30,
2006 2005
Tangible equity to Tangible assets 7.77% 12.76%
Leverage ratio 10.13% 12.83%
Tier 1 risk-based capital ratio 11.31% 13.16%
Total risk-based capital ratio 12.51% 14.24%
Growth Ratios and Other Data(4) :
Percentage change in assets 53.30% 137.76%
Percentage change in loans (3) 49.58% 160.12%
Percentage change in deposits 46.41% 145.25%
Percentage change in equity 6.49% 175.87%
Loans to deposit ratio (3) 105.10% 97.25%
1 - Annualized for the three and nine month periods.
2 - Computed by dividing non-interest expense by the sum of net interest
income and non-interest income.
3 - Includes nonperforming loans, if any.
4 - Growth from the previous year end amount.
