South Atlantic Bank Announces Earnings Growth of 200.5% in Mid-Year Report

MYRTLE BEACH, S.C., July 23, 2012 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today announced net income of $1,138,484 or $0.41 per diluted share for the six months ended June 30, 2012, a 200.5% increase when compared to figures for the same period a year ago. Net income for the three months ended June 30, 2012 was $685,478 or $0.25 per diluted share, a 195.0% increase when compared to figures for the same period a year ago. The second quarter marked the sixth consecutive quarterly profit for South Atlantic Bank, which was founded in 2007.

"It has been a busy and productive second quarter at South Atlantic Bank as we achieved significant earnings growth both for the quarter and the year thus far," said K. Wayne Wicker, chief executive officer and chairman of the board. "Our success can be attributed to growth in core deposits along with strong performance in the mortgage loan area and improving results in merchant services. Management of our balance sheet has produced earnings growth via the loan portfolio and the investment portfolio, in addition to an improved net interest margin. Our strong earnings performance required an adjustment to our deferred tax asset, which further enhanced our results," Wicker said.

"During the second quarter, we successfully opened a new office, the bank's third overall, in the Pawleys Island/Waccamaw Neck area," Wicker added. "We have assembled an experienced team of bankers in the market, and customer response to this new office has been extremely positive." he said.

Total deposits grew 12.1%, from $224.7 million reported at June 30, 2011 to $251.9 million at June 30, 2012. Total loans grew 4.56% in the second quarter, from $163.3 million at June 30, 2011 compared to $170.8 million at June 30, 2012.

Total assets grew 11.99%, from $246.8 million at June 30, 2011, to $276.4 million at June 30, 2012, and the bank's capital ratios continue to exceed regulatory requirements. Credit quality, an important barometer of a bank's financial health, has always been a primary focus at South Atlantic Bank. The bank's ratio of net charge-offs to total loans was 0.26% at June 30, 2012, which compares favorably to state and national averages.

"The summer tourist season appears to be going well along the Grand Strand," Wicker said.  "Recent reports have also shown positive news from the real estate markets with growth in sales and some stabilization of prices. While the real estate market has a long road back, these reports are good news for the economy both along the Grand Strand and nationally," he said.    

About South Atlantic Bank
South Atlantic Bank is a $283.8 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, and has offices in Murrells Inlet and Pawleys Island. South Atlantic Bank offers a wide variety of services for businesses and consumers, including internet banking, no-fee ATM access, checking, CD, and money market accounts, mortgage loans, merchant services, remote deposit capture, and more. Its experienced team of bankers knows the Grand Strand market and is skilled in meeting the special needs of our coastal community.

Member FDIC

 

South Atlantic Bank
Selected Financial Highlights




For the

For the

For the



Six Months Ended

Six Months Ended

Year Ended



6/30/2012

 06/30/2011

12/31/11






Year End / Quarter End Balances (in thousands)





Total assets

$

276,351

246,772

229,725

Investment securities


52,499

36,844

37,769

Loans, net of unearned income (total loans)


170,789

163,339

169,638

Deposits


251,922

224,738

198,086

Shareholders' equity


23,988

21,699

22,937






Average Balances (in thousands)





Total assets

$

246,599

217,672

227,637

Earning assets


227,076

203,138

213,033

Investment securities


40,356

31,213

34,829

Loans, net of unearned income


168,901

162,520

164,188

Deposits


220,367

193,908

203,909

Shareholders' equity


23,443

21,287

21,843






Earnings Breakdown





Total interest income

$

4,858

4,671

9,496

Total interest expense


830

1,200

2,144

Net interest income


4,028

3,470

7,352

Total noninterest income


715

298

841

Total noninterest expense


3,470

2,970

6,192

Income (loss)


1,138,484

379

1,155,407






Selected % Increases  (Linked Quarter)





Total assets


15.34%

12.59%

(2.63)%

Total interest earning assets


15.94%

13.56%

(5.43)%

Total loans


0.28%

0.36%

1.56%

Total deposits


16.57%

15.41%

(6.95)%

Interest income


(2.31)%

(0.57)%

(0.48)%

Interest expense


8.90%

(3.95)%

(7.22)%

Noninterest income


49.05%

66.17%

(16.81)%

Noninterest expense


9.71%

4.02%

1.40%






Selected Ratios





Interest income to total average assets


3.94%

4.29%

4.17%

Interest expense to total average assets


0.67%

1.15%

0.94%

Net interest income to total average assets


3.27%

3.19%

3.23%

Loan loss reserve to total loans


1.23%

1.50%

1.39%

Nonperforming assets to total assets


1.04%

0.27%

0.58%

Charge-offs to total average assets


0.26%

0.00%

0.41%

 

Contact:
Barbara W. Marshall, Vice President and Director of Marketing
bmarshall@southatlanticbank.com 
843.839.4948

 

SOURCE South Atlantic Bancshares, Inc.



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