Net Income Shows Improvement for South Atlantic Bancshares
MYRTLE BEACH, S.C., April 19, 2016 /PRNewswire/ -- South Atlantic Bancshares, Inc. (OTCQX: SABK), parent of South Atlantic Bank, today reported net income of $496,913 or $0.14 per diluted share for the three months ended March 31, 2016, compared to $482,504 or $0.12 per diluted share reported for the same period a year ago. This represents a 3.0% increase in net income year over year.
Financial Highlights
- The first quarter 2016 was the company's 21st consecutive profitable quarter, continuing a string of strong performances that began with the first quarter 2011.
- Credit quality remains strong with no net charge-offs and nonperforming assets to average total assets of just 0.10 percent.
- Excluding securities gains, pre-tax net income grew 51.6 percent year over year.
- Excluding securities gains, noninterest income grew 21.7 percent year over year.
- Strong performance continued even as the company absorbed the full effect of North Myrtle Beach expansion during the first quarter.
- The net interest margin improved to 4.0 percent.
- Total loans grew 22.5 percent, from $269.3 million at March 31, 2015 to $329.9 million at March 31, 2016.
- Total deposits grew 12.5 percent, from $322.5 million reported at March 31, 2015, to $362.8 million at March 31, 2016.
- Total assets grew 17.2 percent, from $356.7 million at March 31, 2015, to $418.2 million at March 31, 2016.
"Several factors drove the company's financial performance in the first quarter," said K. Wayne Wicker, chairman of the board and chief executive officer. "Loan growth was solid throughout our geographic footprint, fueling gains in net interest income. The net interest margin improved to four percent for the first time in our history. Our mortgage area reported its strongest quarter in the bank's history, reaching highs for both earnings and volume. Additionally, core deposits continued to grow, comprising nearly thirty-three percent of total deposits.
In other news, we will break ground on a new office in Mount Pleasant on Johnnie Dodds Boulevard during the second quarter and expect to occupy the facility by mid-2017. Until then, banking operations will continue at our current location at 1027 Queensborough Boulevard," Wicker said.
About South Atlantic Bank
South Atlantic Bank, the subsidiary bank of South Atlantic Bancshares, Inc. (OTCQX: SABK), is a $419.6 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, with additional offices in Murrells Inlet, Pawleys Island, Georgetown, North Myrtle Beach, 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. South Atlantic Bank was named a "Roaring Twenties" winner as one of the best performing large companies in the state of South Carolina by SC Biz News, in 2012, 2013, and 2015. For more information, visit SouthAtlantic.bank.
Member FDIC
| South Atlantic Bancshares, Inc. |
||||||
| For the March 31, 2016 |
For the March 31, 2015 |
For the Twelve Months Ended December 31, 2015 |
||||
| Year End/Quarter End Balances (in thousands) |
||||||
| Total assets |
$ |
418,159 |
$ |
356,736 |
$ |
400,218 |
| Investment securities |
41,572 |
51,386 |
51,820 |
|||
| Loans, net of unearned income (total loans) |
329,890 |
269,310 |
313,988 |
|||
| Deposits |
362,831 |
322,482 |
337,362 |
|||
| Shareholders' equity |
36,499 |
33,679 |
35,645 |
|||
| Average Balances (in thousands) |
||||||
| Total assets |
$ |
397,820 |
$ |
352,383 |
$ |
374,291 |
| Earning assets |
371,181 |
327,515 |
348,172 |
|||
| Investment securities |
44,709 |
51,987 |
51,238 |
|||
| Loans, net of unearned income |
317,514 |
264,121 |
279,810 |
|||
| Deposits |
339,263 |
314,232 |
335,849 |
|||
| Shareholders' equity |
36,329 |
32,582 |
33,961 |
|||
| Earnings Breakdown (in thousands) |
||||||
| Total interest income |
$ |
3,914 |
$ |
3,369 |
$ |
14,137 |
| Total interest expense |
320 |
266 |
1,161 |
|||
| Net interest income |
3,594 |
3,103 |
12,976 |
|||
| Total noninterest income |
588 |
688 |
2,633 |
|||
| Total noninterest expense |
3,346 |
3,028 |
12,272 |
|||
| Provision for loan losses |
150 |
100 |
230 |
|||
| Income before taxes |
687 |
663 |
3,106 |
|||
| Taxes |
190 |
181 |
865 |
|||
| Net income |
497 |
483 |
2,241 |
|||
| Diluted earnings per share |
0.14 |
0.12 |
0.63 |
|||
| Selected % Increases (March 2016 compared to March 2015) (December 2015 compared to December 2014) |
||||||
| Total assets |
17.22% |
7.89% |
10.15% |
|||
| Total interest earning assets |
16.43% |
7.44% |
9.09% |
|||
| Total loans |
22.49% |
15.87% |
19.55% |
|||
| Total deposits |
12.51% |
8.08% |
3.30% |
|||
| Interest income |
16.20% |
7.18% |
9.00% |
|||
| Interest expense |
20.49% |
(15.43)% |
(2.00)% |
|||
| Noninterest income |
(14.55)% |
142.85% |
54.37% |
|||
| Noninterest expense |
10.49% |
19.68% |
15.58% |
|||
| Net income |
2.98% |
28.80% |
11.80% |
|||
| Selected Ratios (year-to-date) |
||||||
| Return on assets |
0.50% |
0.56% |
0.59% |
|||
| Return on equity |
5.50% |
6.01% |
6.60% |
|||
| Interest income to total average assets |
3.96% |
3.88% |
3.78% |
|||
| Interest expense to total average assets |
0.32% |
0.31% |
0.31% |
|||
| Net interest income to total average assets |
3.63% |
3.57% |
3.47% |
|||
| Loan loss reserve to total loans |
0.92% |
1.02% |
0.90% |
|||
| Nonperforming assets to total average assets |
0.10% |
0.12% |
0.11% |
|||
| Net charge-offs to total average loans |
0.00% |
0.00% |
0.00% |
|||
| Net interest margin |
4.02% |
3.90% |
3.80% |
|||
SOURCE South Atlantic Bancshares, Inc.
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