Earnings Grow 15.7 Percent at South Atlantic Bancshares, Inc.

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Jul 21, 2015, 08:30 ET

MYRTLE BEACH, S.C., July 21, 2015 /PRNewswire/ -- South Atlantic Bancshares, Inc. (the company), parent of South Atlantic Bank, today reported net income of $1,017,339 or $0.29 per diluted share for the six months ended June 30, 2015, compared to $879,158 or $0.25 per diluted share reported for the same period a year ago. This represents a 15.7 percent increase in earnings year-over-year. The second quarter of 2015 marked the bank's eighteenth consecutive quarterly profit.

"Increased net interest income coupled with continued improvement from our merchant services and mortgage banking divisions drove the bank's earnings in the first half of 2015," said K. Wayne Wicker, South Atlantic Bank chairman of the board and chief executive officer. "Our success in these areas can be attributed to several factors. An improving economy has brought consumers back into the real estate market as both existing home sales and housing starts are at their highest levels in a number of years. Our revamped mortgage banking division is hitting its stride at the right time, gaining traction in the communities we serve as the market improves. Stronger consumer confidence is also apparent in a robust summer tourist season and has boosted spending."

Second Quarter and Mid-Year Financial Highlights

Only one past due loan in the second quarter
No net charge-offs for the second consecutive quarter
Net interest margin remains at 3.85 percent
Total loans grew 12.1 percent, to $275.2 million at June 30, 2015 from $245.6 million at June 30, 2014
Total deposits grew 5.7 percent, to $344.4 million at June 30, 2015 from $325.8 million at June 30, 2014
Total assets grew 7.2 percent, to $379.0 million at June 30, 2015 from $353.4 million at June 30, 2014

In other bank news, work continues on plans for the new banking facility to be built on Johnnie Dodds Boulevard in Mount Pleasant. The floor plan and elevations are being prepared for review by the town of Mount Pleasant, with work on the new building to begin after approval is received.

About South Atlantic Bank
South Atlantic Bank is a $388.8 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina and has additional offices in North Myrtle Beach, Murrells Inlet, Pawleys Island, Georgetown, and Mount Pleasant, South Carolina. 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 SouthAtlanticBank.com.

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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, 2015		March 31, 2015		June 30, 2015		June 30, 2014
*Year End/Quarter End Balances (In Thousands)*
Total assets	$	378,887	$	356,736	$	378,887	$	353,406
Investment securities		49,161		51,386		49,161		71,539
Loans, net of unearned income (total loans)		275,174		268,736		275,174		245,585
Deposits		344,432		322,482		344,432		325,793
Shareholders' equity		33,506		33,679		33,506		26,740

*Average Balances (In Thousands)*
Total assets	$	359,385	$	352,383	$	359,385	$	332,623
Earning assets		328,152		327,515		328,152		309,948
Investment securities		51,473		51,987		51,473		71,002
Loans, net of unearned income		269,836		264,121		269,836		233,804
Deposits		322,996		314,232		322,996		298,140
Shareholders' equity		33,246		32,582		33,246		25,763

*Earnings Breakdown (In Thousands)*
Total interest income	$	3,463	$	3,369	$	6,832	$	6,434
Total interest expense		285		266		551		635
Net interest income		3,178		3,103		6,281		5,799
Total noninterest income		648		688		1,336		691
Total noninterest expense		3,061		3,028		6,089		5,127
Provision for loan losses		65		100		165		325
Income before taxes		701		663		1,364		1,038
Taxes		166		181		346		159
Net income		535		483		1,017		879
Diluted earnings per share		0.15		0.14		0.29		0.25

*Selected % Increases*		Compared to previous quarter.				Year over year.
Total assets		6.21%		(1.82)%		7.21%		8.34%
Total interest earning assets		6.55%		(2.17)%		6.93%		8.99%
Total loans		2.40%		2.46%		12.05%		21.16%
Total deposits		6.81%		(1.26)%		5.72%		8.08%
Interest income		2.81%		3.04%		6.17%		16.96%
Interest expense		7.39%		(4.28)%		(13.28)%		(6.85)%
Noninterest income		(5.87)%		35.02%		93.53%		(36.70)%
Noninterest expense		1.06%		9.44%		18.76%		24.41%
Net income		10.85%		(7.60)%		15.71%		1.70%

*Selected Ratios (Year-to-Date)*
Return on assets		0.60%		0.56%		0.57%		0.53%
Return on equity		6.52%		6.01%		6.17%		6.88%
Interest income to total average assets		3.91%		3.88%		3.83%		3.90%
Interest expense to total average assets		0.32%		0.31%		0.31%		0.38%
Net interest income to total average assets		3.59%		3.57%		3.52%		3.52%
Loan loss reserve to total loans		1.01%		1.02%		1.01%		1.07%
Nonperforming assets to total average assets		0.13%		0.12%		0.13%		0.21%
Net charge-offs to total average loans		0.00%		0.00%		0.00%		0.04%
Net interest margin		3.80%		3.90%		3.85%		3.85%