MYRTLE BEACH, S.C., July 18, 2017 /PRNewswire/ — South Atlantic Bancshares, Inc. (the “Company”) (OTCQX: SABK), parent of South Atlantic Bank, today reported net income of $1,650,071 or $0.34 per diluted share for the six months ended June 30, 2017, compared to $1,129,668 or $0.23 per diluted share reported for the same period a year ago. Net income for the three months ended June 30, 2017 was $963,937 or $0.17 per diluted share, compared to $632,756 or $0.11 for the same period a year ago. The net income figures represent a 46.1 percent increase for the six months ended June 30, 2017, and a 52.3 percent increase for the three months ended June 30, 2017, when compared to the same periods last year.

Mid-Year Financial Highlights

  • Credit quality continues to be strong with nonperforming assets to average total assets of just 0.03 percent.
  • The net interest margin improved to 4.00 percent for the first six months of the year, a seven-basis point improvement when compared to the same period a year ago.
  • Total loans grew 21.3 percent, to $415.0 million at June 30, 2017 from $342.0 million at June 30, 2016.
  • Total deposits grew 7.56 percent, to $456.0 million at June 30, 2017 from $424.0 million at June 30, 2016.
  • Total assets crossed the $500 million mark for the first time during the second quarter.
  • Total assets grew 12.2 percent to $519.3 million at June 30, 2017 from $462.9 million at June 30, 2016.

“The Company’s financial performance in the first six months of 2017 is attributed to several factors,” said K. Wayne Wicker, chairman of the board and chief executive officer. “Continued double digit growth in the loan portfolio fueled a 19 percent increase in net interest income. The mortgage loan department also contributed with robust growth in loan volume, closed loans and fee income, contributing to a nearly 16 percent increase in noninterest income. Better economic conditions have sparked business expansion, new projects, and real estate sales of new and second home purchases, all of which are positive for our bank.”

During the second quarter, the Company reduced its impaired loan classification by three loans totaling $2.9 million. This occurred through the sale of one loan totaling $2.4 million, a payoff in full for one loan totaling $401,499, and a principal reduction of one loan, reducing its balance to $182,243 and removing it from impaired status. The Company’s credit quality remains strong. 

In the third quarter 2017, the Company will open two locations in the greater Charleston area. Construction is nearly complete on its regional headquarters in Mount Pleasant and a new office on East Bay Street is being readied for its debut. These two offices will help to establish the Company as a premier community bank in this market.

About South Atlantic Bank
South Atlantic Bank, the subsidiary bank of South Atlantic Bancshares, Inc. (OTCQX: SABK), is a $525.4 million financial institution that is locally owned, controlled, and operated. Headquartered in Myrtle Beach, South Carolina, the bank operates additional offices in Murrells Inlet, Pawleys Island, Georgetown, North Myrtle Beach, and Mount Pleasant. The bank’s new regional headquarters in Mount Pleasant will open in late summer, with an office on East Bay Street in Charleston soon to follow.

South Atlantic Bank offers a wide variety of services for businesses and consumers, including South Atlantic Bank goMobile, its mobile banking app. The bank also offers internet banking, no-fee ATM access, checking, CD, and money market accounts, merchant services, mortgage loans, remote deposit capture, and more. For more information, visit SouthAtlantic.bank.

Member FDIC

South Atlantic Bank
Selected Financial Highlights

For the

For the

For the

For the

Three Months Ended

Three Months Ended

Six Months Ended

Six Months Ended

June 30, 2017

June 30, 2016

June 30, 2017

June 30, 2016

Year End/Quarter End Balances (In Thousands)

Total assets

$

519,339

$

462,869

$

519,339

$

462,869

Investment securities

45,174

33,402

45,174

33,402

Loans, net of unearned income (total loans)

414,987

342,001

414,987

342,001

Deposits

456,026

423,954

456,026

423,954

Shareholders’ equity

58,799

37,981

58,799

37,981

462,905

Average Balances (In Thousands)

Total assets

$

504,314

$

429,306

$

479,231

$

413,563

Earning assets

470,541

401,559

446,706

385,858

Investment securities

44,291

38,459

44,099

41,584

Loans, net of unearned income

410,916

338,397

393,692

327,955

Deposits

443,022

384,758

418,519

362,011

Shareholders’ equity

58,174

37,191

48,337

36,760

Earnings Breakdown (In Thousands)

(Year over Year)

Total interest income

$

5,027

$

4,064

$

9,506

$

7,979

Total interest expense

407

369

811

689

Net interest income

4,620

3,696

8,695

7,290

Total noninterest income

838

741

1,537

1,329

Total noninterest expense

3,957

3,408

7,691

6,754

Provision for loan losses

165

170

285

320

Income before taxes

1,336

858

2,256

1,545

Taxes

372

226

606

415

Net income

964

633

1,650

1,130

Diluted earnings per share

0.17

0.11

0.34

0.23

Weighted average diluted shares outstanding

5,649,749

5,649,749

4,899,383

4,899,383

Selected % Increases

(Year over Year)

Total assets

12.20

22.17

12.20

22.17

Total interest earning assets

11.79

20.52

11.79

20.52

Total loans

21.34

24.29

21.34

24.29

Total deposits

7.56

23.09

7.56

23.09

Interest income

23.68

17.36

19.15

16.79

Interest expense

10.43

29.32

17.72

25.06

Noninterest income

13.16

14.33

15.61

(0.55)

Noninterest expense

16.09

11.36

13.87

10.93

Net income

52.34

18.31

46.07

11.04

Selected Ratios

Return on assets

0.77

0.59

0.69

0.55

Return on equity

6.65

6.82

6.90

6.18

Interest income to total average assets

4.00

3.81

4.00

3.88

Interest expense to total average assets

0.32

0.35

0.34

0.33

Net interest income to total average assets

3.67

3.46

3.66

3.54

Loan loss reserve to total loans

0.75

0.93

0.75

0.93

Nonperforming assets to total average assets

0.02

0.12

0.03

0.13

Net charge-offs to total average loans

0.14

(0.01)

0.14

(0.01)

Net interest margin

4.01

3.82

4.00

3.93

View original content:http://www.prnewswire.com/news-releases/mid-year-earnings-grow-46-percent-at-south-atlantic-bancshares-inc-300489336.html

SOURCE South Atlantic Bancshares, Inc.

Related Links

http://www.SouthAtlantic.bank

http://www.prnewswire.com/news-releases/mid-year-earnings-grow-46-percent-at-south-atlantic-bancshares-inc-300489336.html

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