South Atlantic Bank Announces Strong Financial Performance in Mid-Year Progress Report

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Aug 03, 2011, 03:40 ET

MYRTLE BEACH, S.C., Aug. 3, 2011 /PRNewswire/ -- South Atlantic Bancshares, Inc., parent of South Atlantic Bank, today announced income of $232,656 or $0.08 per diluted share for the three months ended June 30, 2011, and $378,884 or $0.14 per diluted share for the six months ended June 30, 2011. These figures represent the first two consecutive profitable quarters for the bank, which was founded in 2007.

"Many good things are happening at South Atlantic Bank," said chairman of the board and chief executive officer Wayne Wicker. "Along with our improved financial performance, our bank has also recorded impressive numbers when compared to our peer group of de novo banks chartered in 2007. In numbers reported by the American Bankers Association for the first quarter of 2011, South Atlantic Bank posted stronger figures than the top 25 percent of these banks in several categories, including credit quality and balance sheet growth."

The bank's robust financial performance is attributed to overall growth in the balance sheet. Total loans increased 9.7%, from $148.9 million at June 30, 2010 to $163.3 million at June 30, 2011. Total deposits grew 30.4%, from $172.4 million at June 30, 2010 to $224.7 million at June 30, 2011.

During this timeframe, the net interest margin improved from 2.84% to 3.34%. The improvement in the margin is due to a 25.0% increase in interest income and a 16.1% decrease in interest expense. The bank continues to enjoy a favorable deposit mix, with more than 17% of deposits in low cost accounts.

South Atlantic Bank's credit quality remains strong, with no charge-offs through the first six months of 2011. The bank's percentage of nonperforming assets (loans) remains well below the local, regional, and national averages. The bank is also well-capitalized, with capital ratios that exceed regulatory requirements. Total assets grew 27.0%, from $194.3 million at June 30, 2010, to $246.8 million at June 30, 2011.

Wicker said, "South Atlantic Bank plays a vibrant role in our local economy. We employ 34 people who live and work here. They own homes, send their children to local schools, and use local businesses. Our bank supports numerous charitable causes and community projects, not only with funding but also with volunteer manpower. As a local business, we use the services of many other local businesses in the day to day operations of our growing bank."

About South Atlantic Bank

South Atlantic Bank is a $246.8 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina and has a second location in Murrells Inlet, South Carolina. 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, 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 this coastal community.

Member FDIC

South Atlantic Bank Selected Financial Highlights
		For the	For the	For the
		Six Months Ended	Three Months Ended	Six Months Ended
		6/30/2011	3/31/2011	06/30/2010

*Year End / Quarter End Balances (in thousands)*
Total assets	$	246,772	219,184	194,255
Investment securities		36,844	31,345	17,803
Loans, net of unearned income (total loans)		163,339	162,747	148,887
Deposits		224,738	194,738	172,386
Shareholders' equity		21,699	21,005	21,507

*Average Balances (in thousands)*
Total assets	$	217,672	209,465	178,753
Earning assets		203,138	194,962	163,863
Investment securities		31,213	26,888	20,946
Loans, net of unearned income		162,520	162,669	134,513
Deposits		193,908	183,911	156,824
Shareholders' equity		21,287	21,083	21,704

*Earnings Breakdown*
Total interest income	$	4,671	2,342	3,738
Total interest expense		1,200	612	1,431
Net interest income		3,470	1,730	2,307
Total noninterest income		298	112	206
Total noninterest expense		2,970	1,456	2,742
Income (loss)		379	146	(597)

*Selected % Increases (Linked Quarter)*
Total assets		12.59%	6.97%	6.17%
Total interest earning assets		13.56%	7.61%	6.99%
Total loans		0.36%	(0.09)%	11.12%
Total deposits		15.41%	8.87%	7.00%
Interest income		(0.57)%	2.60%	9.46%
Interest expense		(3.95)%	(0.62)%	7.61%
Noninterest income		66.17%	(12.30)%	107.16%
Noninterest expense		4.02%	0.41%	2.75%

*Selected Ratios*
Interest income to total average assets		4.29%	4.47%	4.22%
Interest expense to total average assets		1.15%	1.17%	1.61%
Net interest income to total average assets		3.31%	3.30%	2.60%
Loan loss reserve to total loans		1.50%	1.39%	1.33%
Nonperforming assets to total assets		0.24%	0.23%	0.46%
Charge-offs to total average assets		0.00%	0.00%	0.00%