Southcoast Financial Corporation is a holding company for Southcoast Community Bank (the Bank). The Bank is a state bank, which offers a range of commercial banking services. Deposit services include business and personal checking accounts, negotiable order of withdrawal (NOW) accounts, savings accounts, money market accounts, various term certificates of deposit, individual retirement account (IRA) accounts, and other deposit services. Most of the Bank's deposits are attracted from individuals and small businesses. The Bank offers secured and unsecured, short-to-intermediate term loans, with floating and fixed interest rates for commercial, consumer and residential purposes. Consumer loans include, among others: car loans, home equity improvement loans (secured by first and second mortgages), personal expenditure loans, education loans, overdraft lines of credit, and the like. The Bank makes commercial loans to small and middle market businesses.