Waccamaw Bankshares (WBNK) 8-K Regulation FD Disclosure

1

Kiawah 2007

Vining

Sparks

Howe, Barnes, Hoefer

& Arnett, Inc.

May 18, 2007

James G. Graham

President and Chief Executive Officer

David A. Godwin

Senior Vice President and Chief Financial Officer

Exhibit 99.1

2

Forward Looking Statements

This

presentation

may

contain

forward-looking

statements.

These

statements

are

not

historical

facts,

but

rather

are

based

on

our

current

expectations,

estimates

and

projections

about

our

industry,

our

beliefs

and

assumptions.

Words

including

“may,”

“will,”

“could,”

“would,”

“should,”,

“anticipate,”

“expect,”

“intend,”

“plan,”

“protect,”

“believe,”

“seek,”

“estimate,”

and

similar

expressions

are

intended

to

identify

forward-looking

statements.

These

statements

are

not

guarantees

of

future

performance

and

are

subject

to

certain

risks,

uncertainties

and

other

factors,

some

of

which

remain

beyond

our

control,

are

difficult

to

predict

and

could

cause

actual

results

to

differ

materially

from

those

expressed

or

forecasted

in

the

forward-looking

statements.

We

are

not

obligated

to

update

these

statements

or

publicly

release

the

result

of

any

revision

to

them

to

reflect

the

occurrence

of

unanticipated

events.

3

Waccamaw Bankshares, Inc.

1997  Celebrating 10 Years

2007

4

Company Overview

5

About Waccamaw Bank

Headquartered in Whiteville, North Carolina

State-chartered community bank formed in 1997

Primary market area is Southeastern North Carolina and Northeastern South Carolina including

the Wilmington, North Carolina MSA and the Myrtle Beach-North Myrtle Beach-Conway,

South Carolina MSA

12 full-service offices

As of March 31, 2007:

Assets:

$431,057,000

Net income:

$994,478

Market cap:

$77.3 million

Inside Ownership:

21.03%

Institutional Ownership:

0.00%

Presently traded on the NASDAQ Global Market under the symbol “WBNK”

6

Business Plan

Focused on high level of customer service to individuals and small businesses

Strong presence in high growth markets of North and South Carolina’s coastal region

Committed to franchise growth and strengthening EPS

Seasoned and proven management

Favorable core deposit funding with sustainable core deposit growth in a very competitive

market

Maintain

culture

of

efficient

operations

while

achieving

planned

growth

Maintain excellent asset quality

Provide solid shareholder value

7

Market Overview

Source:  Microsoft MapPoint

8

Area Growth

Fastest-Growing Metropolitan Statistical Areas:

April 1, 2000 to July 1, 2006

#17. Myrtle Beach-Conway-North Myrtle Beach, SC

#27. Wilmington, NC

Fastest-Growing Metropolitan Statistical Area:

2005 to 2006

#4. Myrtle Beach-Conway-North Myrtle Beach, SC

Fastest-Growing U.S. Counties 2005 to 2006

#14. Brunswick County

Source: U.S. Census Bureau

9

High Growth Markets

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

2001

2002

2003

2004

2005

2006

Total Deposits for Six County Market Area as of June 30, 2006 was $12,005,858,000

Columbus County

Brunswick County

New Hanover County

Bladen County

Lancaster County

Horry County

June 30,

June 30,

June 30,

June 30,

June 30,

June 30,

Total Deposits

10

Management Team

Senior Vice President and Chief Lending Officer, Waccamaw

Bankshares, Inc., Whiteville, NC, 2007-Present and

Waccamaw Bank, Whiteville, NC 2007-Present; prior to that,

Executive Vice President and State President of First

Community Bank, Winston-Salem, NC 2003-2007, prior to

that President and Chief Executive Officer, 1997-2002 and

Executive Vice President, 1984-1997 of FNB Corp and First

National Bank of Virginia.

Senior Vice President and Chief Lending Officer

of the Company and Waccamaw Bank

J. Daniel Hardy

(58)

Senior Vice President and Chief Administrative Officer,

Waccamaw Bankshares, Inc., Whiteville, NC, 2005-Present

and Waccamaw Bank, Whiteville, NC, 2005-Present; prior to

that, Senior Vice President of Human Resources, Bank of

Granite, Granite Falls, NC 1987-2003.

Senior Vice President and Chief Administrative

Officer of the Company and Waccamaw Bank

Kim T. Hutchens

(51)

Senior Vice President and Chief Credit Officer, Waccamaw

Bankshares, Inc., Whiteville, NC, 2003-Present and

Waccamaw Bank, Whiteville, NC, 2003-Present; prior to

that, Senior Business Underwriter, First Citizens Bank,

Raleigh, NC 1996-2003.

Senior Vice President and Chief Credit Officer of

the Company and Waccamaw Bank

Richard C. Norris

(41)

Senior Vice President and Chief Financial Officer of

Waccamaw Bankshares, Inc., Whiteville, NC, 2001-Present

and Waccamaw Bank, Whiteville, NC 2001-

Present; prior to

that, Comptroller, Four Seasons Screen Printing Co.,

Conway, SC, February 2001-July 2001; prior to that Chief

Financial Officer/Comptroller, Jones Stores, Inc., Tabor City,

NC 1995-2001 (retail variety stores).

Senior Vice President and Chief Financial Officer

of the Company and Waccamaw Bank

David A. Godwin

(50)

Senior Vice President and Chief Operations Officer,

Waccamaw Bankshares, Inc., Whiteville, NC 2001-Present

and Waccamaw Bank, Whiteville, NC 1997-Present

Senior Vice President and Chief Operations

Officer of the Company and the Waccamaw Bank

Freda H. Gore

(45)

President and Chief Executive Officer, Waccamaw

Bankshares, Inc., 2001-Present and Waccamaw Bank,

Whiteville, NC 1999-Present

President, Chief Executive Officer, and Director of

the Company and Waccamaw Bank

James G. Graham

(57)

Business Experience

Title

Executive

11

Financial Data

12

Financial Highlights

LTM

3/31/07

Assets

$431,057,000

Loans

$323,367,000

Deposits

$357,482,000

Net Income

$994,478

EPS

$.21

% Increase

From 3/31/06

28%

19.3%

26.1%

17.6%

14.3%

13

Loan and Deposit Composition

14%

1%

35%

4%

5%

26%

14%

1%

1 to 4 family

Multi-family

Construction

Consumer

Home Equity

Commercial RE

C&I

Other

Loan Composition

March 31, 2007

$328.4  million of gross loans

$357.8 million of total deposits

10%

2%

10%

26%

17%

35%

DDA

Savings

NOW

CD's <$100,000

MMDA

CD's >$100,000

Deposit Composition

March 31, 2007

* Brokered deposits $20.3 million

*

14

Profitability

52.3

50.3

53.4

51.8

54.7

0.0

15.0

30.0

45.0

60.0

2002

2003

2004

2005

2006

(%)

3.7

3.6

3.7

3.7

4.2

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2002

2003

2004

2005

2006

(%)

1.02

1.00

1.11

1.13

1.02

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2002

2003

2004

2005

2006

(%)

Net Interest Margin (%)

Efficiency Ratio (%)

ROAA (%)

14.07

14.98

13.46

12.84

11.46

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2002

2003

2004

2005

2006

(%)

ROAE (%)

15

Strong Balance Sheet Growth

40

57

101

132

161

193

258

323

400

0.0

100.0

200.0

300.0

400.0

500.0

1998

1999

2000

2001

2002

2003

2004

2005

2006

Total

Assets

Source: SNL Financial

$ in millions

16

Strong Balance Sheet Growth

23

39

68

102

128

145

210

262

317

0.0

100.0

200.0

300.0

400.0

500.0

1998

1999

2000

2001

2002

2003

2004

2005

2006

Total Loans

Source: SNL Financial

$ in millions

17

Strong Balance Sheet Growth

31

46

83

111

131

155

208

271

327

0.0

100.0

200.0

300.0

400.0

500.0

1998

1999

2000

2001

2002

2003

2004

2005

2006

Total Deposits

Source: SNL Financial

$ in millions

18

Net Interest Margin

Net Interest Margin

0.00

2.00

4.00

6.00

8.00

Interest Income

6.33

5.66

5.3

6.04

7.2

Interest Margin

2.62

2.04

1.61

2.35

2.98

Net Interest Margin

3.71

3.61

3.69

3.69

4.22

Provision for Loan

Loss

0.52

0.41

0.39

0.46

0.41

2002

2003

2004

2005

2006

19

Total Assets

20

Net Income

2006 Net Income of $3,652,000

20.32% increase over the $3,035,373 earned in 2005

21

Nonperforming Assets

$ in thousands

2006

2005

2004

2003

2002 

Nonaccrual

loans

$   1,181

$   1,711

$  1,723      $      701      $  1,800

Loans past due 90 days or more

and still accruing interest

340

250             628              486             173

Total nonperforming loans

1,521

1,961          2,351           1,187          1,973

Other real estate and repossessed

personal property

32                   140               82          

164             140

Total nonperforming assets                   

$   1,553          $   2,101     $   2,433      $   1,351   

$  2,113

Nonperforming assets as a

percentage of:

Total assets:

.39%                 .65%           .94%           .70%        

1.31%

Total loans:                                       

.49%                 .80%         1.16%           .93%       

1.65%

Allowance for loan losses to

loans outstanding:

1.54%

1.50%         1.33%         1.53%         1.45% 

Ratio of net loan charge-offs to

average loans outstanding

0.20%              0.09%          0.15%     

0.27%        0.32%   

22

Bank of Heath Springs Acquisition

$8.0 million cash acquisition of $20 million bank in Lancaster county

Access to existing growth market and all of South Carolina

Southeast of Charlotte, NC

Cost effective acquisition

Closed April 28, 2006

Accretive Acquisition

Opened de novo branch in Horry County in August of 2006

Enables us to better serve commuting customers within our existing market and

tap into Horry County growth

23

Performance versus Carolina Peers

Source: SNL Financial 

Peer Group includes banks traded on major exchanges only

Total

Core

Core

Efficiency

Price/

Price/

Company

City

State

Assets

ROAA

ROAE

Ratio

Tangible Book

LTM EPS

SCBT Financial Corporation

Columbia

SC

$2,178,413

0.99

%

13.0

%

64.9

%

262.1

%

16.8

x

First Bancorp

Troy

NC

2,136,624

1.06

12.5

58.1

268.0

15.5

FNB United Corp.

Asheboro

NC

1,814,905

0.84

7.6

64.4

209.1

13.2

Southern Community Financial Corporation

Winston-Salem

NC

1,436,465

0.50

5.1

73.1

206.8

42.0

Capital Bank Corporation

Raleigh

NC

1,422,384

0.90

7.6

61.9

204.1

16.4

Gateway Financial Holdings, Inc.

Virginia Beach

VA

1,207,477

0.48

4.8

75.5

158.0

29.7

Bank of Granite Corporation

Granite Falls

NC

1,199,772

1.56

12.5

48.2

203.7

15.6

Yadkin Valley Financial Corporation

Elkin

NC

1,119,902

1.32

11.6

55.9

236.7

15.1

BNC Bancorp

Thomasville

NC

951,731

0.85

13.0

58.7

274.6

18.3

First South Bancorp, Inc.

Washington

NC

910,548

1.92

23.3

43.3

403.3

17.8

Cooperative Bankshares, Inc.

Wilmington

NC

860,090

0.96

14.4

56.4

190.4

14.3

Peoples Bancorp of North Carolina, Inc.

Newton

NC

818,947

1.24

15.3

55.7

167.6

11.6

Community Capital Corporation

Greenwood

SC

713,244

0.88

10.1

63.8

164.1

13.9

Crescent Financial Corporation

Cary

NC

697,909

0.93

8.7

59.4

219.1

19.3

ECB Bancorp, Inc.

Engelhard

NC

624,070

0.96

10.1

67.6

156.0

16.5

Community Bankshares, Inc.

Orangeburg

SC

578,517

0.89

9.8

63.6

154.5

14.3

New Century Bancorp, Inc.

Dunn

NC

552,965

0.85

9.2

58.8

188.0

17.9

First Community Corporation

Lexington

SC

548,056

0.69

6.2

67.1

171.1

15.6

Beach First National Bancshares, Inc.

Myrtle Beach

SC

520,201

1.25

13.7

52.7

244.5

18.3

Greenville First Bancshares, Inc.

Greenville

SC

509,344

0.85

12.0

48.7

175.1

17.2

American Community Bancshares, Inc.

Charlotte

NC

494,658

0.90

8.0

57.6

173.2

18.3

Southcoast Financial Corporation

Mount Pleasant

SC

481,856

0.71

4.4

64.5

158.6

25.7

First National Bancshares, Inc.

Spartanburg

SC

465,382

1.04

16.7

54.9

243.6

18.9

Bank of the Carolinas Corporation

Mocksville

NC

454,578

0.56

6.4

70.7

139.2

15.3

Cape Fear Bank Corporation                                 

Wilmington

NC

424,885

0.58

9.0

66.4

151.3

18.7

Carolina Bank Holdings, Inc.

Greensboro

NC

411,592

0.77

12.3

59.0

164.2

15.6

Provident Community Bancshares, Inc.

Union

SC

387,630

0.75

11.1

63.0

163.0

13.4

Tidelands Bancshares, Inc.

Mount Pleasant

SC

336,572

0.56

5.7

65.8

140.1

31.2

Bank of South Carolina Corporation

Charleston

SC

243,473

1.70

17.3

51.7

265.8

16.0

399,581

1.02

14.1

54.7

289.5

21.4

Average:

0.95

%

10.7

%

60.4

201.9

%

18.4

x

Median:

0.89

10.1

59.4

188.0

16.5

Waccamaw Bankshares, Inc.

Whiteville

NC

399,581

1.02

%

14.1

%

54.7

289.5

%

21.4

x

Rank (out of 30)

9

6

6

2

5

24

Performance versus Carolina Peers

Source: SNL Financial 

Peer Group includes banks traded on major exchanges only

Date

Total

Core

Core

Efficiency

Price/

Price/

Company

City

State

Established

Assets

ROAA

ROAE

Ratio

Tangible Book

LTM EPS

Capital Bank Corporation

Raleigh

NC

6/20/1997

$1,422,384

0.90

%

7.6

%

61.9

%

204.1

%

16.4

x

Gateway Financial Holdings, Inc.

Virginia Beach

VA

12/1/1998

1,207,477

0.48

4.8

75.5

158.0

29.7

Crescent Financial Corporation

Cary

NC

2/19/1999

697,909

0.93

8.7

59.4

219.1

19.3

New Century Bancorp, Inc.

Dunn

NC

4/20/2000

552,965

0.85

9.2

58.8

188.0

17.9

Greenville First Bancshares, Inc.

Greenville

SC

10/26/1999

509,344

0.85

12.0

48.7

175.1

17.2

Southcoast Financial Corporation

Mount Pleasant

SC

7/20/1998

481,856

0.71

4.4

64.5

158.6

25.7

Bank of the Carolinas Corporation

Mocksville

NC

12/7/1998

454,578

0.56

6.4

70.7

139.2

15.3

Cape Fear Bank Corporation              

Wilmington

NC

6/22/1998

424,885

0.58

9.0

66.4

151.3

18.7

Tidelands Bancshares, Inc.

Mount Pleasant

SC

10/6/2003

336,572

0.56

5.7

65.8

140.1

31.2

399,581

1.02

14.1

54.7

289.5

21.4

Average:

0.71

%

7.5

%

63.5

170.4

%

21.3

x

Median:

0.71

7.6

64.5

158.6

18.7

Waccamaw Bankshares, Inc.

Whiteville

NC

$399,581

1.02

%

14.1

%

54.7

289.5

%

21.4

x

Rank (out of 10)

1

1

2

1

4

ESTABLISHED SINCE 1997-1998

25

Historical Efficiency Ratio versus Carolina Peers

54.7

51.8

53.4

50.3

52.3

68.0

66.9

70.5

151.7

59.4

59.3

65.4

65.1

63.0

67.6

67.9

65.4

65.1

0.0

15.0

30.0

45.0

60.0

75.0

90.0

105.0

120.0

135.0

150.0

165.0

1998

1999

2000

2001

2002

2003

2004

2005

2006

(%)

Waccamaw

Peer Median

26

Waccamaw Bankshares, Inc.

Split-Adjusted Stock Prices

Since February 1997, Waccamaw Bankshares has significantly outperformed the

major stock indexes

(1)

-

WBNK:

452.8%

-

Dow Jones:

95.9%

-

S&P 500:

91.2%

-

NASDAQ Bank Index:

144.8%

$2.65

$2.65

$2.65

$2.89

$4.63

$4.63

$6.25

$11.35

$18.00

$17.75

$16.37

Initial

Offering

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Waccamaw

Bankshares:

Split

Adjusted

Stock

Prices

since

Founding

(2)

(1) Stock price information as of May 14, 2007.

(2) The price of WBNK’s common stock is as of December 31st

for each year shown.

Data Source: SNL Financial; FactSet

27

28

Waccamaw Bankshares, Inc –

2007 1

st

Quarter Results

% Increase

Weighted

O/S Shares

After Tax Earnings 1

st

Qtr 2007

$994,478

After Tax Earnings 1

st

Qtr 2006

$845,611

17.60%

Earnings (basic) per Share 2007

$0.21

4,906,151

Earnings (basic) per Share 2006

$0.18

16.67%

4,576,226

Total Assets 1

st

Qtr 2007

$431,056,796

Total Assets 1

st

Qtr 2006

$336,712,704

28.02%

Total Deposits 1

st

Qtr 2007

$357,482,347

Total Deposits 1

st

Qtr 2006

$283,529,584

26.08%

Total Loans 1

st

Qtr 2007

$323,336,533

Total Loans 1

st

Qtr 2006

$271,105,536

19.28%

29

First Quarter of 2007 Press Release

Waccamaw Bankshares, Inc. Announces Earnings of $994,478 for the First Quarter of 2007

April 18, 2007

Whiteville,

NC-

2007-

Waccamaw

Bankshares

(NASDAQ:

WBNK),

the

parent

company

of

Waccamaw

Bank,

announced

unaudited

net

income

for

the

first

quarter

of

2007

of

$994,478

for

the

quarter

ending

March

31,

2007.

Net

income

for

the

three

month

period

ending

March

31,

2007

was

an

increase

of

17.6%

over

the

same

period

in

2006.

Basic

earnings

per

share

during

the

most

recent

quarter

were

$.21

per

share

compared

to

the

earnings

of

$.18

per

share

for

the

first

quarter

of

2006.

Basic

earnings

per

share

is

computed

by

dividing

income

available

to

common

stockholders

by

the

weighted

average

number

of

common

shares

outstanding

during

the

period.

The

income

reported

for

this

period

includes

security

gains

of

$206,941

on

a

pre-tax

basis

while

the

bank’s

provision

for

loan

losses

increased

$270,000

when

compared

with

the

same

period

of

2006.

During

2006,

Waccamaw

issued

210,707

shares

of

additional

common

stock

in

order

to

increase

capital

to

support

growth

and

continued

expansion

and

59,192

shares

preferred

stock.

Waccamaw

Bankshares

reported

total

assets

on

March

31,

2007

of

$431,057,000

reflecting

a

28%

increase

for

the

year

earlier

quarter.

Total

loans

increased

by

19.3%

to

$323,367,000

and

total

deposits

increased

26.10%

to

$357,482,000.

Jim

Graham,

President

and

CEO

of

Waccamaw

Bankshares,

said,

“We

are

pleased

with

the

growth

in

earnings

performance

for

the

first

quarter

of

2007.

This

is

a

time

that

many

banks,

including

Waccamaw,

are

dealing

with

compression

of

the

bank’s

net

interest

margin

and

a

slowing

economic

environment.

We

are

pleased

with

the

growth

and

improved

earnings

despite

these

factors. 

The

first

quarter

of

this

year

was

the

first

full

quarter

of

operation

of

our

new

Southport-Supply

Road

office

and

we

are

pleased

with

the

reception

that

Waccamaw

has

received

from

the

Southport

area

community.

We

now

operate

eleven

full

service

branches

with

a

limited

service

office

at

Sunset

Commons

opening

on

April

25,

2007.

The

full

service

free

standing

office

at

Sunset

Commons

is

being

completed

and

will

open

in

July

of

this

year.

Our

second

full

service

office

in

Horry

County,

located

in

Little

River,

is

progressing

and

the

project

is

now

out

for

contractor

bids.

I

am

extremely

proud

of

our

staff’s

performance

as

the

bank

continues

to

report

significant

progress

in

the

early

stages

of

2007.”

Alan

W.

Thompson,

Chairman

of

Waccamaw

Bankshares,

Inc.,

stated,

“We

are

pleased

with

the

financial

returns

delivered

in

the

first

quarter

of

2007

as

we

continue

to

absorb

significant

expansion

related

expenses

while

delivering

improved

profitability.

The

banking

franchise

now

serves

four

counties

in

Southeastern

North

Carolina

and

two

counties

in

South

Carolina

which

provide

the

bank

the

opportunity

to

participate

in

some

of

the

fastest

growing

areas

of

our

country.

A

recently

published

estimate

of

the

United

States

Census

Bureau

lists

the

Myrtle

Beach-Conway-North

Myrtle

Beach

MSA

as

the

17th

fastest

growing

Metropolitan

Statistical

Area

from

April

1,

2000

to

July

1,

2006

The

Wilmington

MSA,

which

of

course

encompasses

Brunswick

County,

North

Carolina

was

ranked

at

#27.

Brunswick

County

was

listed

as

the

14th

fastest

growing

county

in

the

nation

from

July

of

2005

to

July

of

2006

to

further

demonstrate

how

quickly

our

market

is

growing.

Waccamaw

is

uniquely

positioned

to

capitalize

on

the

growth

of

our

region

and

the

bank

is

expanding

as

rapidly

as

possible

in

order

to

participate

in

this

growth

while

providing

our

shareholders

the

long

term

value

they

deserve.”

Waccamaw

Bank,

the

primary

subsidiary

of

Waccamaw

Bankshares,

is

a

state

charted

bank

operating

eleven

offices

in

Whiteville,

Wilmington,

Shallotte,

Holden

Beach,

Chadbourn,

Tabor

City,

Southport

(2)

and

Elizabethtown,

North

Carolina.

Offices

in

South

Carolina

include

Conway

and

Heath

Springs.

There

are

presently

two

offices

under

construction

at

Sunset

Beach,

North

Carolina

and

Little

River,

South

Carolina.

In

addition

to

primary

banking

operations,

other

related

services

are

provided

by

Waccamaw

Financial

Services,

an

insurance

and

investment

subsidiary.

Common

stock

of

Waccamaw

Bankshares

is

listed

on

the

NASDAQ

Global

Market

and

trades

under

the

symbol

WBNK.

Additional

corporate

information,

product

descriptions,

and

online

services

can

be

located

on

the

Bank's

website

at

http://www.waccamawbank.com.

Information

in

the

press

release

contains

“forward-looking

statements.”

These

statements

involve

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially,

including

without

limitation,

the

effects

of

future

economic

conditions,

governmental

fiscal

and

monetary

policies,

legislative

and

regulatory

changes,

the

risks

of

changes

in

interest

rates

and

the

effects

of

competition.

Additional

factors

that

could

cause

actual

results

to

differ

materially

are

discussed

in

Waccamaw

Bankshares,

Inc.'s

recent

filings

with

the

Securities

Exchange

Commission,

including

but

not

limited

to

its

Annual

Report

on

Form

10-K

and

its

other

periodic

reports.

For

more

information

contact:

Jim

Graham

(910)

641-0044

30

Investment Highlights

Solid participation in dynamic region

Significant growth opportunities in coastal Carolinas

Strong identity in the rapidly growing coastal market

Experienced and disciplined management team

Proven and consistent history of balancing growth and improved earnings

performance

Strong loan growth with strong asset quality funded by favorable

core deposit base

31

Outlook for 2007

Build upon history of consistent performance

Expansion in Wilmington and Myrtle Beach MSA’s

Improve upon core funding

More efficiently utilize new office capacity

Increase market share through strategic marketing

Capitalize on customers in transition as a result of recent merger of major competitor

Maintain position to enhance growth opportunities

32