South Atlantic Bank Announces Earnings Growth of 200.5% in Mid-Year Report

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Jul 23, 2012, 05:00 ET

MYRTLE BEACH, S.C., July 23, 2012 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today announced net income of $1,138,484 or $0.41 per diluted share for the six months ended June 30, 2012, a 200.5% increase when compared to figures for the same period a year ago. Net income for the three months ended June 30, 2012 was $685,478 or $0.25 per diluted share, a 195.0% increase when compared to figures for the same period a year ago. The second quarter marked the sixth consecutive quarterly profit for South Atlantic Bank, which was founded in 2007.

"It has been a busy and productive second quarter at South Atlantic Bank as we achieved significant earnings growth both for the quarter and the year thus far," said K. Wayne Wicker, chief executive officer and chairman of the board. "Our success can be attributed to growth in core deposits along with strong performance in the mortgage loan area and improving results in merchant services. Management of our balance sheet has produced earnings growth via the loan portfolio and the investment portfolio, in addition to an improved net interest margin. Our strong earnings performance required an adjustment to our deferred tax asset, which further enhanced our results," Wicker said.

"During the second quarter, we successfully opened a new office, the bank's third overall, in the Pawleys Island/Waccamaw Neck area," Wicker added. "We have assembled an experienced team of bankers in the market, and customer response to this new office has been extremely positive." he said.

Total deposits grew 12.1%, from $224.7 million reported at June 30, 2011 to $251.9 million at June 30, 2012. Total loans grew 4.56% in the second quarter, from $163.3 million at June 30, 2011 compared to $170.8 million at June 30, 2012.

Total assets grew 11.99%, from $246.8 million at June 30, 2011, to $276.4 million at June 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 total loans was 0.26% at June 30, 2012, which compares favorably to state and national averages.

"The summer tourist season appears to be going well along the Grand Strand," Wicker said. "Recent reports have also shown positive news from the real estate markets with growth in sales and some stabilization of prices. While the real estate market has a long road back, these reports are good news for the economy both along the Grand Strand and nationally," he said.

About South Atlantic Bank
South Atlantic Bank is a $283.8 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
		Six Months Ended	Six Months Ended	Year Ended
		6/30/2012	06/30/2011	12/31/11

*Year End / Quarter End Balances (in thousands)*
Total assets	$	276,351	246,772	229,725
Investment securities		52,499	36,844	37,769
Loans, net of unearned income (total loans)		170,789	163,339	169,638
Deposits		251,922	224,738	198,086
Shareholders' equity		23,988	21,699	22,937

*Average Balances (in thousands)*
Total assets	$	246,599	217,672	227,637
Earning assets		227,076	203,138	213,033
Investment securities		40,356	31,213	34,829
Loans, net of unearned income		168,901	162,520	164,188
Deposits		220,367	193,908	203,909
Shareholders' equity		23,443	21,287	21,843

*Earnings Breakdown*
Total interest income	$	4,858	4,671	9,496
Total interest expense		830	1,200	2,144
Net interest income		4,028	3,470	7,352
Total noninterest income		715	298	841
Total noninterest expense		3,470	2,970	6,192
Income (loss)		1,138,484	379	1,155,407

*Selected % Increases (Linked Quarter)*
Total assets		15.34%	12.59%	(2.63)%
Total interest earning assets		15.94%	13.56%	(5.43)%
Total loans		0.28%	0.36%	1.56%
Total deposits		16.57%	15.41%	(6.95)%
Interest income		(2.31)%	(0.57)%	(0.48)%
Interest expense		8.90%	(3.95)%	(7.22)%
Noninterest income		49.05%	66.17%	(16.81)%
Noninterest expense		9.71%	4.02%	1.40%

*Selected Ratios*
Interest income to total average assets		3.94%	4.29%	4.17%
Interest expense to total average assets		0.67%	1.15%	0.94%
Net interest income to total average assets		3.27%	3.19%	3.23%
Loan loss reserve to total loans		1.23%	1.50%	1.39%
Nonperforming assets to total assets		1.04%	0.27%	0.58%
Charge-offs to total average assets		0.26%	0.00%	0.41%