MT. PLEASANT, S.C., July 18, 2014 (GLOBE NEWSWIRE) -- Southcoast Financial Corporation (Nasdaq:SOCB) announced that it had unaudited net income of $1,352,000, or $.19 per diluted share, for the six months ended June 30, 2014. This compares to unaudited net income of $8,041,000, or $1.14 per diluted share, for the six months ended June 30, 2013. The difference in net income between the two periods primarily relates to the one-time tax benefit of $6.4 million derived from the recapture of the Company's deferred tax asset in the second quarter of 2013. The June 30, 2014 income per share is based on 7,087,860 diluted average shares compared to 7,072,956 diluted average shares for 2013. Income before income taxes increased 23.7% to $2,076,000 from $1,678,000. The 2014 pretax results were influenced by a growth in loan interest income, reduced funding costs, and reductions in noninterest expenses.
For the six months ended June 30, 2014, net interest income totaled $7,203,000, an increase of $297,000 from $6,906,000 for the six months ended June 30, 2013.
Noninterest income for 2014 decreased to $1,118,000 from $1,280,000 for 2013, primarily due to a $150,000 reduction in fees on mortgage loans sold.Noninterest expense levels decreased from $6,508,000 for 2013 to $6,245,000 for 2014. Contributing to this decrease were reductions in salaries and benefits, FDIC insurance premiums, and overhead expenses on other real estate owned. For the quarter ended June 30, 2014, the unaudited net income was $709,000, or $0.10 per diluted share. This compares to an unaudited net income of $7,035,000, or $0.99 per diluted share for the quarter ended June 30, 2013. The net income for the quarter ended June 30, 2013, included a one-time tax benefit of $6,419,000 resulting from the Company's recapture of its deferred tax asset valuation allowance. The June 30, 2014 income per share is based on 7,089,902 diluted average shares compared to 7,074,210 diluted average shares for the quarter ended June 30, 2013.