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

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Oct 30, 2013, 09:31 ET

MYRTLE BEACH, S.C., Oct. 30, 2013 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today reported income before taxes of $1,962,060 for the nine months ended September 30, 2013, an increase of 43.7 percent when compared to the $1,365,382 reported for the same period a year ago. Income before taxes for the three months ended September 30, 2013 was $552,131, an increase of 9.9 percent when compared to the $502,551 reported for the same period a year ago. Net income for the nine months ended September 30, 2013 was $1,348,565 or $0.44 per diluted share, and for the three months ended September 30, 2013, was $484,066 or $0.16 per diluted share. The third quarter of 2013 marked the bank's eleventh consecutive quarterly profit. Having completed its second consecutive year of profitability at December 31, 2012, the bank became fully taxable beginning in 2013.

"During the third quarter, South Atlantic Bank took advantage of several expansion opportunities which will position the bank well for future growth," said K. Wayne Wicker, chairman of the board and chief executive officer. "We opened a full-service office in Georgetown and a loan production office in Mount Pleasant, while doubling the size of our mortgage department, all while maintaining profitability. We were able to get the right people and locations in place and we are fortunate that our sound financial position allowed us to act on these opportunities to grow the bank," he said.

Wicker continued, "While our expansion activities will have an effect on noninterest expense in the fourth quarter, we expect them to be accretive to earnings in 2014. A strong case in point is our Pawleys Island office, which opened in June 2012. In just one year, this single office achieved deposit market share of more than 10 percent according to figures recently released by the FDIC. We are pleased with the performance of all our offices and their contribution to the bank's overall success," Wicker said.

Total loans grew 9.3 percent year-to-date, from $182.2 million at September 30, 2012 to $199.2 million at September 30, 2013. Total deposits grew 10.8 percent, from $258.6 million at September 30, 2012 to $ 286.6 million at September 30, 2013.

South Atlantic Bank's credit quality remains strong with net charge-offs to total average assets of 0.10 percent for the nine months ended September 30, 2013. The bank's capital ratios continue to exceed regulatory requirements. Total assets grew 9.9 percent, from $283.8 million at September 30, 2012, to $ 311.9 million at September 30, 2013.

About South Atlantic Bank
South Atlantic Bank is a $309.3 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 recently opened 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 new 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
		Nine Months Ended		Twelve Months Ended		Nine Months Ended
		September 30, 2013		December 31, 2012		September 30, 2012

*Year End/Quarter End Balances (In Thousands)*
Total assets	$	311,874	$	284,988	$	283,750
Investment securities		77,289		59,455		58,936
Loans, net of unearned income (total loans)		199,183		189,979		182,226
Deposits		286,618		259,338		258,587
Shareholders' equity		24,196		25,359		24,546

*Average Balances (In Thousands)*
Total assets	$	306,957	$	263,886	$	258,297
Earning assets		285,392		243,927		238,377
Investment securities		68,219		49,505		46,057
Loans, net of unearned income		197,931		173,624		170,203
Deposits		281,177		238,513		232,513
Shareholders' equity		25,024		24,092		23,755

*Earnings Breakdown (In Thousands)*
Total interest income	$	8,320	$	10,002	$	7,340
Total interest expense		1,003		1,620		1,240
Net interest income		7,317		8,382		6,100
Total noninterest income		1,505		2,704		1,560
Total noninterest expense		6,330		8,063		5,624
Provision		530		1,330		670
Income before taxes		1,962		1,693		1,365
Taxes		613		(869)		(267)
Net income		1,349		2,562		1,632

*Selected % Increases (2013 as compared to 2012 )*
Total assets		9.91%		24.06%		20.27%
Total interest earning assets		6.77%		25.58%		18.53%
Total loans		9.31%		11.99%		9.10%
Total deposits		10.84%		30.92%		21.48%
Interest income		13.45%		5.33%		3.28%
Interest expense		(19.07)%		(24.44)%		(28.57)%
Noninterest income		(3.43)%		221.37%		150.47%
Noninterest expense		12.65%		30.22%		23.53%

*Selected Ratios (year-to-date)*
Return on assets		0.59%		0.97%		0.84%
Return on equity		7.21%		10.63%		9.18%
Interest income to total average assets		3.62%		3.79%		3.80%
Interest expense to total average assets		0.44%		0.61%		0.64%
Net interest income to total average assets		3.19%		3.18%		3.15%
Loan loss reserve to total loans		1.26%		1.21%		1.22%
Nonperforming assets to total average assets		0.64%		0.77%		0.99%
Net charge-offs to total average assets		0.10%		0.52%		0.31%
Net interest margin		3.43%		3.43%		3.41%