The parent of Tidelands Bank swung to a third-quarter profit.
Mount Pleasant-based Tidelands Bancshares Inc. earned $113,009 for the period after accounting for a $207,000 dividend payment owed to the U.S. Treasury, according to a filing with the Securities and Exchange Commission. That compared to a $2,6 million loss for the same period last year.
The filing showed Tidelands set aside just $45,000 from July to September to cover projected loan losses, bolstering its profits. A year ago it had to reserve more than $2.2 million, money that’s subtracted from the bottom line.
Another contributing factor was a $285,000 drop in ownership expenses this past quarter tied to real estate Tidelands had repossessed.
Year-to-date, the bank owner is still in the red. Its net loss from January through September was $1.8 million, down from a $2.97 million deficit for the first nine months of 2012.
Tidelands said its asset quality has improved markedly this year. It pointed to a steep decline in loan charge-offs to $301,000 from $5 million for the first nine months of 2012.
The bank’s total assets totaled $493.7 million at Sept. 30, down 6 percent since Dec. 31. Deposits slipped 1.6 percent to $443.4 million over the same period.
One issue facing Tidelands is its quarterly Treasury dividends on stock it sold the government in 2008 under the Troubled Asset Relief Program. The bank temporarily halted those payouts in 2010 to conserve cash and hasn’t resumed them.
The lender has seven branches in Charleston, Dorchester, Berkeley, Horry and Beaufort counties. It is marked its 10th year in business on Oct. 6.