South Atlantic Bank Announces 105% Increase in Net Income

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Oct 16, 2012, 01:31 ET

MYRTLE BEACH, S.C., Oct. 16, 2012 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today announced net income of $1,632,035 or $0.59 per diluted share for the nine months ended September 30, 2012, a 105% increase when compared to figures for the same period a year ago. The year-to-date figures represent the bank's best financial performance in its nearly 5-year history.

Net income for the three months ended September 30, 2012, was $493,551 or $0.18 per diluted share, a 15% increase when compared to figures for the same period a year ago, net of income tax adjustments. The third quarter of 2012 marked the bank's seventh consecutive quarterly profit.

Chief Executive Officer and Chairman K. Wayne Wicker stated, "Loan growth, along with strong performances by the bank's mortgage lending and merchant services departments, helped to fuel our performance during the third quarter. The bank also continues to achieve growth in core deposits which is important to balance sheet management and improvement in the net interest margin.

"Also contributing to our success is the overall growth in our Myrtle Beach and Murrells Inlet locations, and the opening of our new Pawleys Island location," Wicker said. "The Myrtle Beach and Murrells Inlet offices are well-established in our community, and in its first five months of operations, our Pawleys Island office has exceeded our expectations for growth," Wicker said.

Total deposits grew 21.5%, from $212.9 million reported at September 30, 2011, to $258.6 million at September 30, 2012. Total loans grew 9.1%, from $167.0 million at September 30, 2011 compared to $182.2 million at September 30, 2012.

Total assets grew 20.3%, from $235.9 million at September 30, 2011, to $283.8 million at September 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 average total assets was 0.31% at September 30, 2012, which compares favorably to state and national averages.

The bank has received several honors for its financial performance and community service. BauerFinancial, Inc., a leading independent bank rating firm, recently awarded South Atlantic Bank its fifth consecutive 5-Star superior rating, which is the highest rating given. South Atlantic Bank was the only Grand Strand-based bank to receive this distinction. The Myrtle Beach Area Chamber of Commerce honored the bank with a Community Service Award at its annual meeting in October. South Atlantic Bank was also named a "Roaring Twenties" winner by SCBiz News, a producer of several state-wide business news publications including SC Biz, the Charleston Regional Business Journal, the Columbia Regional Business Report, and GSA Business.

About South Atlantic Bank
South Atlantic Bank is a $284 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
		Nine Months Ended	Nine Months Ended	Year Ended
		09/30/2012	09/30/2011	12/31/2011

*Year End / Quarter End Balances (in thousands)*
Total assets	$	283,750	235,925	229,725
Investment securities		58,936	39,151	37,769
Loans, net of unearned income (total loans)		182,226	167,031	169,638
Deposits		258,587	212,870	198,086
Shareholders' equity		24,546	22,543	22,937

*Average Balances (in thousands)*
Total assets	$	258,297	226,675	227,637
Earning assets		238,377	212,286	213,033
Investment securities		46,057	33,574	34,829
Loans, net of unearned income		170,203	163,119	164,188
Deposits		232,513	203,337	203,909
Shareholders' equity		23,755	21,535	21,843

*Earnings Breakdown*
Total interest income	$	7,666	7,100	9,496
Total interest expense		1,240	1,735	2,144
Net interest income		6,426	5,366	7,352
Total noninterest income		1,234	622	841
Total noninterest expense		5,624	4,549	6,192
Income (loss)		1,632	797	1,155

*Selected % Increases (Linked Quarter)*
Total assets		2.68%	(4.40)%	(2.63)%
Total interest earning assets		3.14%	(4.44)%	(5.43)%
Total loans		6.70%	2.26 %	1.56%
Total deposits		2.65%	(5.28)%	(6.95)%
Interest income		8.40%	2.17%	(0.48)%
Interest expense		(2.61)%	(4.44)%	(7.22)%
Noninterest income		12.74%	46.04%	(16.81)%
Noninterest expense		9.76%	2.17%	1.40%

*Selected Ratios*
Interest income to total average assets		3.96%	4.19%	4.17%
Interest expense to total average assets		0.64%	1.03%	0.94%
Net interest income to total average assets		3.32%	3.16%	3.23%
Loan loss reserve to total loans		1.22%	1.48%	1.39%
Nonperforming assets to total assets		0.99%	0.61%	0.58%
Charge-offs to total average assets		0.31%	0.07%	0.41%