Earnings Grow 210% at South Atlantic Bank

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Apr 16, 2012, 01:14 ET

MYRTLE BEACH, S.C., April 16, 2012 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today reported net income of $453,006, or $0.16 per diluted share for the three months ended March 31, 2012, an increase of 210% when compared to the $146,228 or $0.03 per diluted share reported for the same period a year ago.

"I am pleased to announce that 2012 is off to a good start for South Atlantic Bank," said chairman of the board and chief executive officer K. Wayne Wicker. "Our first quarter results can be directly attributed to a 19.1% increase in net interest income fueled by loan growth, along with improvement in noninterest income and expense control."

The bank's net interest margin improved to 3.87% for the three months ended March 31, 2012, up from the 3.38% reported for the same period a year ago. The improvement in the margin is due to an increase in the yields on interest earning assets and a decrease in interest costs for deposits, based on market conditions and the current low interest rate environment.

Moderate gains were reported in the balance sheet. Total loans grew 4.64% during the first quarter, with total loans of $162.7 million at March 31, 2011 compared to $170.3 million at March 31, 2012. Total deposits grew 10.98%, from $194.7 million at March 31, 2011 to $216.1 million at March 31, 2012. The bank's deposit base continues to favor a strong mix of core accounts.

South Atlantic Bank's credit quality remains strong with net charge-offs to total loans of 0.14% for the three months ended March 31, 2012. While the bank has not been immune to the issues caused by a tough economic cycle, its percentage of nonperforming assets remains favorable when compared to local, regional, and national averages.

The bank's capital ratios continue to exceed regulatory requirements. Total assets grew 9.31%, from $219.2 million at March 31, 2011, to $239.6 million March 31, 2012.

"It appears that our tourism-driven economy has experienced an improving spring, with a myriad of special events, school breaks, and the Easter holiday all drawing visitors to our market," Wicker said. "There is brighter news on the housing horizon, as home sales are increasing, continuing an upward trend that began this winter. This good news may fuel confidence in the economic recovery, which could in turn spur future growth and development," he stated.

About South Atlantic Bank
South Atlantic Bank is a $239.6 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina and has a second location in Murrells Inlet, South Carolina. South Atlantic Bank recently earned its third consecutive 5-Star rating from BauerFinancial, Inc., a leading independent rating firm. 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, merchant services, remote deposit capture, mortgage loans, and more. Its experienced team of bankers knows the Grand Strand market and is skilled in meeting the special needs of this coastal community. For more information, visit SouthAtlanticBank.com.

Member FDIC

South Atlantic Bank
Selected Financial Highlights

		For the		For the
		Three Months Ended		Three Months Ended
		March 31, 2012		March 31, 2011

*Year End / Quarter End Balances (in thousands)*
Total assets	$	239,593	$	219,184
Investment securities		31,591		31,345
Loans, net of unearned income (total loans)		170,306		162,747
Deposits		216,119		194,738
Shareholders' equity		23,218		21,005

*Average Balances (in thousands)*
Total assets	$	232,656	$	209,465
Earning assets		213,352		194,962
Investment securities		45,611		26,888
Loans, net of unearned income		167,740		162,669
Deposits		204,208		183,911
Shareholders' equity		23,279		21,083

*Earnings Breakdown*
Total interest income	$	2,457	$	2,342
Total interest expense		397		612
Net interest income		2,060		1,730
Total noninterest income		287		112
Total noninterest expense		1,655		1,456
Income (loss)		453		146

*Selected Ratios*
Interest income to total average assets		4.22%		4.47%
Interest expense to total average assets		0.68%		1.17%
Net interest income to total average assets		3.54%		3.30%
Loan loss reserve to total loans		1.34%		1.36%
Nonperforming assets to total average assets		0.69%		0.24%
Charge-offs to total average assets		0.14%		0.00%

*Selected % Increases*		*Changes compared to* *March 31, 2011*
Total assets		9.31
Total interest earning assets		7.56
Total loans		4.64
Total deposits		10.98
Interest income		4.92
Interest expense		(35.13)
Noninterest income		155.98
Noninterest expense		13.67