South Atlantic Bank Reports First Quarter Earnings

MYRTLE BEACH, S.C., April 23, 2013 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today reported pre-tax net income of $607,530 for the three months ended March 31, 2013, an increase of 31.4% when compared to the $462,353 reported pre-tax for the same period a year ago. Income net of taxes for the three months ended March 31, 2013 was $369,175 or $0.12 per diluted share. Having completed its second consecutive year of profitability at December 31, 2012, the bank became fully taxable beginning in 2013. 

"The first quarter of 2013 marked the bank's ninth consecutive profitable quarter," said K. Wayne Wicker, chief executive officer and chairman. "Overall balance sheet growth and steady performance from lines of business including mortgage and merchant services, along with expense control, led to our strong showing during the quarter," he said.

"Our three banking locations, including our newest office in Pawleys Island, continue to perform well," Wicker said. "We continue to gain new customers and expand existing customer relationships by providing exemplary customer service along with a robust product menu that meets loan and deposit needs in our community."

Banks throughout the country, including South Atlantic Bank, continue to experience pressure on their net interest margins. The sustained low interest rate environment, when combined with weak loan demand, higher than normal liquidity levels, and a higher percentage of earning assets in the bond portfolio, is causing compression in the net interest margin. South Atlantic Bank's net interest margin as of March 31, 2013 was 3.55% compared to 3.68% as of March 31, 2012.

Total loans grew 16.5% during the first quarter, from $170.3 million at March 31, 2012 to $198.4 million at March 31, 2013. Total deposits grew 24.8%, from $216.1 million at March 31, 2012 to $269.7 million at March 31, 2013.

South Atlantic Bank's credit quality remains strong with net charge-offs to total average loans of 0.05% for the three months ended March 31, 2013. The bank's capital ratios continue to exceed regulatory requirements. Total assets grew 23.4%, from $239.6 million at March 31, 2012, to $295.6 million at March 31, 2013.

About South Atlantic Bank
South Atlantic Bank is a $302.4 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 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.

South Atlantic Bank has been designated a 5-Star bank by independent bank rating firm BauerFinancial, Inc., has been named a "Roaring Twenties" winner by SCBiz News, and received a Community Service Award from the Myrtle Beach Area Chamber of Commerce at its annual meeting.

Member FDIC

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


South Atlantic Bank

Selected Financial Highlights

 



For the


For the



Three Months Ended


Three Months Ended



March 31, 2013


March 31, 2012






Year End / Quarter End Balances (in thousands)





Total assets

$

295,614

$

239,593

Investment securities


62,322


31,591

Loans, net of unearned income (total loans)


198,359


170,306

Deposits


269,729


216,119

Shareholders' equity


25,364


23,218






Average Balances (in thousands)





Total assets

$

289,610

$

232,656

Earning assets


268,758


213,352

Investment securities


58,859


45,611

Loans, net of unearned income


195,308


167,740

Deposits


263,589


204,208

Shareholders' equity


25,683


23,279






Earnings Breakdown





Total interest income

$

2,683

$

2,457

Total interest expense


330


397

Net interest income


2,352


2,060

Total noninterest income


369


287

Total noninterest expense


1,949


1,655

Net income


369


453






Selected Ratios





Interest income to total average assets


3.76%


4.25%

Interest expense to total average assets


0.46%


0.69%

Net interest income to total average assets


3.29%


3.56%

Loan loss reserve to total loans


1.20%


1.34%

Nonperforming assets to total average loans


0.97%


0.98%

Charge-offs to total average loans


0.05%


0.19%






Selected % Increases 





Total assets


23.38


9.31

Total interest earning assets


24.62


7.56

Total loans


16.47


4.64

Total deposits


24.81


10.98

Interest income


9.18


4.92

Interest expense


(16.86)


(35.13)

Noninterest income


28.67


155.98

Noninterest expense


17.80


13.67











SOURCE South Atlantic Bancshares, Inc.



RELATED LINKS
http://www.SouthAtlanticBank.com

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