Staff Report

Mount Pleasant-based Tidelands Bancshares Inc. reported a $2.4 million loss in the third quarter after taking hits on stock in Fannie Mae and Freddie Mac.

The bank paid $4.6 million in charges related to the two mortgage companies.

Tidelands incurred additional expenses by opening several new branches.

For the nine months ended Sept. 30, Tidelands reported a $2.9 million loss, after reporting a $175,000 gain during the same time period last year.

“In my 35 years of banking experience, this is the most difficult and unique time that I have ever seen,” said President and CEO Robert Coffee Jr. “During the third quarter, the economic environment that all financial institutions are operating in has changed significantly.”

The bank intends to move forward with growth plans and increase its retail presence, he said, despite the economic uncertainty facing the financial industry. Tidelands recently opened a new branch in Murrells Inlet, for example, Coffee said, and has seen growth in loans and deposits.

Despite recent losses, Tidelands remains well-capitalized as defined by bank regulators, he said. The bank’s total shareholders’ equity was $37.9 million with book value at $8.86 a share.

The bank’s ratio of nonperforming assets to total assets is 0.83%.