Mount Pleasant-based Tidelands Bank owner reports loss for 2Q

Mount Pleasant-based Tidelands Bank lost nearly $1.6 million for the quarter that ended June 30.

The owner of Mount Pleasant-based Tidelands Bank reported a loss for the second quarter, attributing it to a deposit is made to its reserves.

The net deficit for was $1.6 million for the April-June period compared to a loss of $356,000 for the same time last year.

Both figures include unpaid dividends that Tidelands Bancshares Inc. owes the U.S. Treasury.

The company said it moved $1.1 million to its loan-loss reserve fund in the most recent quarter “to resolve several significant” delinquent “nonperforming” loans, according to a filing with the Securities and Exchange Commission. The bank owner said it has cut its portfolio of bad debt by more than half to $14.6 million since the start of the year.

Tidelands also said total loans were up $1.2 million for the quarter to $319.3 million, and that checking, savings and money market accounts increased by $12.9 million. It said it has reduced its costly wholesale deposits by $6.9 million since Dec. 31.

“This is evidence of further improvement in the makeup of our deposit customer base,” the company said.

The unpaid dividends are for preferred stock that Tidelands sold to the Treasury Department for $14.5 million under the Troubled Asset Relief Program in 2008, at the height of the financial crisis.

The annual yield on those shares nearly doubled to 9 percent more than a year ago, to about $1.3 million. Tidelands deferred the payments in 2010 to conserve cash. The dividends continue to accrue.

The bank has 7 locations serving Charleston, Dorchester, Berkeley, Horry, and Beaufort counties.