South Atlantic Bank Announces Record Earnings for 2012

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Jan 22, 2013, 09:30 ET

MYRTLE BEACH, S.C., Jan. 22, 2013 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today announced net income of $2,562,107 or $0.85 per diluted share for the year ended December 31, 2012. These figures mark the bank's second consecutive year of profitability, and represent a 121.75% improvement in earnings reported for the same period a year ago.

Net income for the three months ended December 31, 2012 was $930,072 or $0.31 per diluted share, representing the bank's eighth consecutive quarterly profit.

"In 2012, the bank marked its fifth anniversary year with record performance and strong growth," said chairman of the board and chief executive officer K. Wayne Wicker. "Our established offices in Myrtle Beach and Murrells Inlet continued to perform well and we also successfully launched a new office in the Pawleys Island market. Our financial performance continues to be recognized with accolades nationally, regionally, and locally. We have been designated a 5-Star bank by independent bank rating firm BauerFinancial, Inc. for six consecutive quarters, have been named a "Roaring Twenties" winner by SCBiz News, and received a Community Service Award from the Myrtle Beach Area Chamber of Commerce at its annual meeting," Wicker said.

The bank's net interest margin improved to 3.88% for the year ended December 31, 2012, up from the 3.40% reported for the same period a year ago. The improvement in the margin is due to an increase in the yields on interest earning assets.

Total deposits grew 30.9%, from $198.1 million reported at December 31, 2011, to $259.3 million at December 31, 2012. Total loans grew 12.0% during 2012, from $169.6 million at December 31, 2011 compared to $190.0 million at December 31, 2012.

Total assets grew 24.1%, from $229.7 million at December 31, 2011, to $285.0 million at December 31, 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 0.53% at December 31, 2012, which compares favorably to state and national averages.

About South Atlantic Bank
South Atlantic Bank is a $287.5 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 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
		Twelve Months Ended	Twelve Months Ended
		12/31/2012	12/31/2011

*Year End / Quarter End Balances (in thousands)*
Total assets	$	284,988	$ 229,725
Investment securities		59,503	37,769
Loans, net of unearned income (total loans)		189,979	169,638
Deposits		259,338	198,086
Shareholders' equity		25,359	22,937

*Average Balances (in thousands)*
Total assets	$	263,886	$ 227,637
Earning assets		243,927	213,033
Investment securities		49,505	34,829
Loans, net of unearned income		173,624	164,188
Deposits		238,513	203,909
Shareholders' equity		24,092	21,843

*Earnings Breakdown*
Total interest income	$	11,113	$ 9,496
Total interest expense		1,617	2,144
Net interest income		9,493	7,352
Total noninterest income		1,593	841
Total noninterest expense		8,063	6,192
Income		2,562	1,155

*Selected Ratios*
Interest income to total average assets		4.22%	4.17%
Interest expense to total average assets		0.62%	0.94%
Net interest income to total average assets		3.60%	3.23%
Loan loss reserve to total loans		1.21%	1.39%
Nonperforming assets to total assets		0.72%	0.58%
Charge-offs to total average assets		0.53%	0.41%
Net charge-offs to total loans		0.73%	0.55%

*Selected % Increases*
Total assets		24.06%	12.11%
Total interest earning assets		25.58%	10.44%
Total loans		11.99%	4.14%
Total deposits		30.92%	10.74%
Interest income		17.02%	19.38%
Interest expense		(24.45)%	(23.22)%
Noninterest income		89.36%	55.84%
Noninterest expense		30.22%	10.24%