South Atlantic Bank Announces Earnings Growth of 34.4 Percent for Second Quarter

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Jul 24, 2014, 09:21 ET

MYRTLE BEACH, S.C., July 24, 2014 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today reported net income of $504,495 or $0.16 per diluted share for the three months ended June 30, 2014, an increase of 34.4 percent when compared to the $374,663 or $0.12 per diluted share reported for the three months ended March 31, 2014. The second quarter of 2014 marked the bank's fourteenth consecutive quarterly profit.

"Our second quarter performance is attributed to improving economic conditions in the markets we serve and the bank's overall growth," said K. Wayne Wicker, South Atlantic Bank chairman of the board and chief executive officer. "Our new locations in Mount Pleasant and Georgetown, along with an expanded mortgage department, are now making significant contributions to our financial performance in just nine months of operations. Additionally, we experienced solid growth in the loan portfolio and strong performances from the merchant services and mortgage lines of business," he said.

Total loans grew 21.2 percent, from $202.7 million at June 30, 2013 to $245.6 million at June 30, 2014. Total deposits grew 8.1 percent, from $301.4 million at June 30, 2013 to $325.8 million at June 30, 2014. Total assets grew 8.3 percent, from $326.2 million at June 30, 2013, to $353.4 million at June 30, 2014.

During this period of loan growth, South Atlantic Bank's credit quality remained strong with net charge-offs to total average loans of 0.04 percent and zero past dues for the three months ended June 30, 2014. The bank's capital ratios continue to exceed regulatory requirements.

South Atlantic Bank has received approval from the South Carolina State Board of Financial Institutions to expand its Mount Pleasant loan production office to a full-service branch, and is awaiting approval from the FDIC. The bank is also building a new office in Pawleys Island and expects to move from its current office in Waverly Place to the new location in late fall.

About South Atlantic Bank
South Atlantic Bank is a $359.8 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, has additional full-service locations in Murrells Inlet, Pawleys Island, and Georgetown, South Carolina, and a loan production office to serve Mount Pleasant and Charleston. 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.

The 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 and 2013. For more information, visit SouthAtlanticBank.com.

Member FDIC

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, 2014		March 31, 2014		June 30, 2014		June 30, 2013
*Year End/Quarter End Balances (In Thousands)*
Total assets	$	353,406	$	330,650	$	353,406	$	326,186
Investment securities		71,539		67,846		71,539		73,130
Loans, net of unearned income (total loans)		245,585		232,091		245,585		202,692
Deposits		325,793		298,363		325,793		301,432
Shareholders' equity		26,740		25,653		26,740		23,789

*Average Balances (In Thousands)*
Total assets	$	341,452	$	325,032	$	332,623	$	299,380
Earning assets		318,558		301,244		309,948		268,552
Investment securities		71,132		70,871		71,002		63,459
Loans, net of unearned income		240,688		226,844		233,804		198,133
Deposits		308,749		287,413		298,140		273,102
Shareholders' equity		26,456		25,063		25,763		25,701

*Earnings Breakdown (In Thousands)*
Total interest income	$	3,292	$	3,143	$	6,434	$	5,502
Total interest expense		321		314		635		682
Net interest income		2,971		2,829		5,799		4,820
Total noninterest income		412		297		709		1,091
Total noninterest expense		2,601		2,544		5,146		4,121
Provision for loan losses		175		150		325		380
Income before taxes		606		432		1,038		1,410
Taxes		102		57		159		545
Net income		504		375		879		864
Diluted earnings per share		0.16		0.12		0.28		0.28

*Selected % Increases*		Compared to previous quarter.				Year over year.
Total assets		6.88%		3.96%		8.34%		18.03%
Total interest earning assets		7.25%		4.16%		8.99%		18.29%
Total loans		5.81%		6.45%		21.16%		18.68%
Total deposits		9.19%		4.50%		8.08%		19.65%
Interest income		4.74%		5.77%		16.96%		13.25%
Interest expense		2.25%		3.33%		(6.85)%		(17.81)%
Noninterest income		38.57%		(53.65)%		(34.99)%		52.62%
Noninterest expense		2.25%		(14.49)%		24.87%		(54.98)%
Net income		34.40%		26.69%		1.74%		0.20%

*Selected Ratios (Year-to-Date)*
Return on assets		0.60%		0.47%		0.53%		0.58%
Return on equity		7.73%		6.06%		6.88%		6.78%
Interest income to total average assets		3.91%		3.94%		3.90%		3.71%
Interest expense to total average assets		0.38%		0.39%		0.38%		0.46%
Net interest income to total average assets		3.53%		3.54%		3.52%		3.25%
Loan loss reserve to total loans		1.07%		1.10%		1.07%		1.17%
Nonperforming assets to total average assets		0.21%		0.23%		0.21%		0.69%
Net charge-offs to total average loans		0.04%		0.00%		0.04%		0.16%
Net interest margin		3.85%		3.87%		3.85%		3.62%