South Atlantic Bank Announces Robust Third Quarter and Year-to-Date Earnings

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Oct 30, 2014, 09:57 ET

MYRTLE BEACH, S.C., Oct. 30, 2014 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today reported net income of $603,026 or $0.20 per diluted share for the three months ended September 30, 2014, a 19.5 percent increase when compared to $484,066 or $0.16 per diluted share reported for the same period a year ago. Net income for the nine months ended September 30, 2014 was $1,482,184 or $0.49 per diluted share, a 9.9 percent increase when compared to the $1,348,565 or $0.44 per diluted share reported for the same period a year ago. The third quarter of 2014 is the bank's fifteenth consecutive quarterly profit, a string which dates back to the first quarter of 2011.

"Our robust financial performance in the third quarter and year-to-date indicates that the growth initiatives undertaken late last year are yielding solid results," said South Atlantic Bank chairman and chief executive officer K. Wayne Wicker. "Year over year, we experienced loan growth of nearly 21 percent, which is directly attributed to activity in our new markets, along with strong performances from our mature offices. Additionally, South Atlantic Bank continues to gain in deposit market share in all the markets we serve. Recent figures announced by the FDIC rank the bank fourth in Myrtle Beach, second in Murrells Inlet, fifth in Pawleys Island, and sixth in Georgetown, all strong showings," he said.

Wicker continued, "In other news during the third quarter, we expanded our Mount Pleasant loan production office to a full service location and have been pleased with the community's response to the new office thus far. Construction of our new office in Pawleys Island continues and we expect it to be completed in December. So it has been a busy and productive quarter at the bank with our focus on continued growth and expansion within our geographic footprint," Wicker said.

Total loans grew 20.7 percent, from $198.3 million at September 30, 2013 to $239.4 million at September 30, 2014. Total deposits grew 7.6 percent, from $286.6 million at September 30, 2013 to $308.3 million at September 30, 2014. Total assets grew 8.4 percent, from $311.9 million at September 30, 2013, to $338.1 million at September 30, 2014.

South Atlantic Bank's credit quality continues to be strong with net charge-offs to total average loans of 0.06 percent and zero past dues for the three months ended September 30, 2014. This is the second consecutive quarter with zero past dues. The bank's capital ratios continue to exceed regulatory requirements.

About South Atlantic Bank
South Atlantic Bank is a $338.1 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, and has additional offices in Murrells Inlet, Pawleys Island, Georgetown, 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. For more information, visit SouthAtlanticBank.com.

Member FDIC

South Atlantic Bank
Selected Financial Highlights

	For the	For the	For the	For the	For the
	Three Months Ended	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2014	June 30, 2014	March 31, 2014	September 30, 2014	September 30, 2013
*Quarter End Balances (In Thousands)*
Total assets	$ 338,097	$ 353,406	$ 330,650	$ 338,097	$ 311,874
Investment securities	71,023	71,539	67,846	71,023	77,289
Loans, net of unearned income (total loans)	239,402	245,585	232,091	239,402	198,281
Deposits	308,263	325,793	298,363	308,263	286,618
Shareholders' equity	27,937	26,740	25,653	27,937	24,196

*Average Balances (In Thousands)*
Total assets	$ 354,153	$ 341,452	$ 323,697	$ 339,879	$ 306,957
Earning assets	313,962	318,558	301,244	308,869	285,392
Investment securities	70,901	71,132	70,871	70,968	68,219
Loans, net of unearned income	240,986	240,688	226,844	236,225	197,931
Deposits	325,608	308,749	287,413	307,397	281,177
Shareholders' equity	27,480	26,456	25,063	26,342	25,024

*Earnings Breakdown (In Thousands)*
Total interest income	$ 3,309	$ 3,292	$ 3,143	$ 9,743	$ 8,320
Total interest expense	275	321	314	910	1,003
Net interest income	3,034	2,971	2,829	8,833	7,317
Total noninterest income	505	407	283	1,196	1,505
Total noninterest expense	2,724	2,597	2,530	7,851	6,330
Provision for loan losses	75	175	150	400	530
Income before taxes	739	606	432	1,778	1,962
Taxes	136	102	57	295	613
Net income	603	504	375	1,482	1,349
Diluted earnings per share	0.20	0.17	0.12	0.49	0.44

*Selected % Increases*	Compared to previous quarter.			Year over year.
Total assets	(4.33)%	6.88%	3.96%	8.41%	9.91%
Total interest earning assets	(4.86)%	7.25%	4.16%	11.37%	6.77%
Total loans	(2.52)%	5.81%	6.45%	20.74%	8.81%
Total deposits	(5.38)%	9.19%	4.50%	7.55%	10.84%
Interest income	0.52%	4.74%	5.77%	17.11%	13.35%
Interest expense	(14.31)%	2.25%	3.33%	(9.25)%	(19.14)%
Noninterest income	24.06%	43.61%	(55.80)%	(20.56)%	(3.51)%
Noninterest expense	4.92%	2.62%	(14.95)%	24.03%	12.54%
Net income	19.35%	34.65%	26.54%	9.91%	(17.37)%

*Selected Ratios (Year-to-Date)*
Return on assets	0.68%	0.59%	0.47%	0.58%	0.59%
Return on equity	8.71%	7.65%	6.06%	7.52%	7.21%
Interest income to total average assets	3.71%	3.87%	3.94%	3.83%	3.62%
Interest expense to total average assets	0.31%	0.38%	0.39%	0.36%	0.44%
Net interest income to total average assets	3.40%	3.49%	3.54%	3.47%	3.19%
Loan loss reserve to total loans	1.11%	1.07%	1.10%	1.11%	1.27%
Nonperforming assets to total average assets	0.02%	0.21%	0.23%	0.02%	0.64%
Net charge-offs to total average loans	0.06%	0.04%	0.00%	0.06%	0.10%
Net interest margin	3.73%	3.85%	3.87%	3.81%	3.43%