South Atlantic Bancshares, Inc. Reports Earnings of $0.48 per Diluted Common Share for the Three Months Ended June 30, 2025
MYRTLE BEACH, S.C., July 24, 2025 /PRNewswire/ -- South Atlantic Bancshares, Inc. ("South Atlantic" or the "Company") (OTCQX:SABK), parent of South Atlantic Bank (the "Bank"), reported consolidated net income of $3.7 million, or $0.48 per diluted common share, for the second quarter of 2025, compared to $3.3 million, or $0.43 per diluted common share for the first quarter of 2025. The Company reported $7.0 million, or $0.91 per diluted common share, for the six months ended June 30, 2025, compared to $4.3 million, or $0.56 per diluted common share, for the six months ended June 30, 2024.
Second Quarter 2025 Financial Highlights:
Net income totaled $3.7 million for the second quarter of 2025, a quarter over quarter increase of $349.0 thousand or 10.5 percent, and an increase of $1.4 million, or 62.0 percent over the second quarter of 2024, despite a loss on sale of securities of $322.4 thousand in the second quarter of 2025
Total assets increased $82.7 million to $1.9 billion during the six months ended June 30, 2025, an annualized increase of 9.3 percent, from December 31, 2024
Total loans grew $53.7 million during the three months ended June 30, 2025, a quarter over quarter increase of 3.9 percent; total loans grew $95.3 million in the six months ended June 30, 2025, an increase of 7.1 percent over December 31, 2024
Total deposits grew $47.6 million during the three months ended June 30, 2025, a quarter over quarter increase of 3.0 percent; total deposits grew $154.8 million in the six months ended June 30, 2025, an increase of 10.6 percent over December 31, 2024
Utilization of short term borrowings were reduced by $50.0 million from $130.0 million to $80.0 million, a decrease of 38.5 percent, during the three months ended June 30, 2025
"We are pleased to report solid financial results for the second quarter of 2025," remarked K. Wayne Wicker Chairman and CEO of the Company." Net income increased 10.5 percent over the first quarter of 2025. Deposit and loan growth remains strong across all our markets, with loans increasing by $53.7 million during the quarter, while deposits grew $47.6 million. While market interest rates remain elevated, we continue to see the benefits from a stable interest rate environment, as our net interest margin increased 4 basis points during the quarter, cost of funds decreased 6 basis points, and loan yields improved by 2 basis points. We were pleased to accomplish some targeted balance sheet restructuring during the quarter which has strengthened our overall balance sheet position. This included a targeted sale of securities with the proceeds immediately redeployed into higher yielding loans, as well as the retirement of higher cost short-term funding facilities which were repaid with on balance sheet liquidity. Additionally, our board of directors authorized a stock repurchase program for up to 5.0 percent of our outstanding common stock, and the Company completed an aggregate repurchase of 112,023 shares during the quarter. Economic activity remains strong across the markets we serve, and we believe our credit quality remains pristine. We continue to monitor both macroeconomic and geopolitical uncertainty, but we are encouraged by the continued positive momentum of our Company and are optimistic regarding the second half of 2025."
Selected Financial Highlights
For the Periods/Three Months Ended
June 30,
March 31,
Balance Sheet (000's)
2025
2025
Change ($)
Change (%)1
Total Assets
$ 1,869,833
$ 1,867,705
$ 2,128
0.5 %
Total Loans, Net of Unearned Income
1,434,251
1,380,593
53,658
15.5 %
Total Deposits
1,615,493
1,567,932
47,561
12.1 %
Borrowings (Excluding Subordinated Debt)
80,000
130,000
(50,000)
-153.8 %
Total Equity
121,055
118,384
2,671
9.0 %
June 30,
March 31,
Income Statement and Per Share Data
2025
2025
Change ($)
Change (%)
Net Income (000's)
$ 3,686
$ 3,337
$ 349
10.5 %
Diluted Earnings Per Share
0.48
0.43
0.05
11.6 %
Tangible Book Value Per Share
15.47
14.91
0.56
3.8 %
June 30,
March 31,
Selected Financial Ratios
2025
2025
Return on Average Assets
0.80 %
0.74 %
NPAs to Average Assets
0.00 %
0.00 %
Efficiency Ratio
65.48 %
67.63 %
Net Interest Margin
3.09 %
3.05 %
For the Periods/Six Months Ended
June 30,
June 30,
Balance Sheet (000's)
2025
2024
Change ($)
Change (%)
Total Assets
$ 1,869,833
$ 1,746,759
$ 123,074
7.0 %
Total Loans, Net of Unearned Income
1,434,251
1,220,489
213,762
17.5 %
Total Deposits
1,615,493
1,411,958
203,535
14.4 %
Borrowings (Excluding Subordinated Debt)
80,000
175,000
(95,000)
-54.3 %
Total Equity
121,055
107,046
14,009
13.1 %
June 30,
June 30,
Income Statement and Per Share Data
2025
2024
Change ($)
Change (%)
Net Income (000's)
$ 7,023
$ 4,283
$ 2,740
64.0 %
Diluted Earnings Per Share
0.91
0.56
0.35
62.5 %
1 Results annualized.
Earnings Summary
Net interest income increased $2.9 million, or 27.5 percent, to $13.4 million for the three months ended June 30, 2025, when compared to $10.5 million for the three months ended June 30, 2024. The increase in interest income during the three months ended June 30, 2025 compared to the prior year period was primarily driven by a $3.5 million increase in interest income on the Company's loan portfolio due to increased yields and organic growth of the Company's loan portfolio, partially offset by a reduction in interest income of $1.2 million, or 33.8 percent, on the Company's investment portfolio and cash and cash equivalents held with the Federal Reserve Bank of Richmond (the "FRB") and correspondent banks, which was primarily due to a reduction of cash on hand and associated rates on cash held. The Company recognized a decrease in interest expense of $664.0 thousand, or 6.1 percent, for the three months ended June 30, 2025 compared to the same period in 2024. The reduction in interest expense during the period was primarily driven by decreases in interest rates on interest bearing deposits, despite deposit growth in interest bearing deposit balances. Also contributing to the decline in realized interest expense in the period were decreases in interest rates on short-term borrowings as well as lower utilization of short-term borrowings during the period..
For the six months ended June 30, 2025, net interest income increased $5.6 million, or 27.1 percent, to $26.2 million when compared to $20.6 million for the six months ended June 30, 2024. This increase was driven primarily by an increase in interest income of $5.0 million, or 12.0 percent, from $41.5 million for the six months ended June 30, 2024 to $46.4 million for the six months ended June 30, 2025, coupled with the decrease in interest expense on deposits and borrowings of $624.0 thousand, or 3.0 percent, for the six months ended June 30, 2025 when compared to the same six month period in 2024.
Noninterest income increased $322.0 thousand, or 22.5 percent, for the three months ended June 30, 2025 compared to the same three-month period in 2024, primarily driven by an increase in secondary mortgage income of $175.0 thousand, or 49.2 percent, as well as an increase in service charges and fees of $39.0 thousand, or 23.5 percent, and an increase in merchant and interchange income of $81.0 thousand, or 13.6 percent when compared to the same quarter period in 2024. The Company recognized an increase in noninterest expense of $1.1 million, or 12.0 percent, for the three months ended June 30, 2025 when compared to the same three-month period in 2024, primarily driven by an increase in other noninterest expense of $621.0 thousand, or 35.5 percent, which included a $322.4 thousand loss on the targeted sale of securities as part of a portfolio restructure to reinvest proceeds into higher yielding loans. For the three months ended June 30, 2025 compared to the same three-month period in 2024, the Company recognized additional increases in noninterest expense of $160.0 thousand, or 16.0 percent in occupancy expense related to the opening of a de novo branch location, and an increase in data processing and software of $134.0 thousand, or 14.1 percent.
For the six months ended June 30, 2025, noninterest income increased $594.0 thousand, or 22.7 percent, when compared to the six months ended June 30, 2024, primarily from the benefit of increased secondary mortgage income of $339.0 thousand, or 62.8 percent, as well as an increase of $68.0 thousand, or 20.5 percent, in service charge and fee income, and an increase of $107.0 thousand, or 9.6 percent, in merchant and interchange income. For the six months ended June 30, 2025, noninterest expense increased $2.1 million, or 12.2 percent, when compared to the six months ended June 30, 2024, primarily resulting from increases of $1.2 million, or 37.3 percent, in other noninterest expense, including a $322.4 thousand loss on the targeted sale of securities, an increase in audit, compliance, and regulatory assessments, as well as increases of $301.0 thousand, or 15.7 percent, in data processing and software, and increase of $220.0 thousand, or 10.6 percent, in occupancy expense and insurance.
Financial Performance Dollars in Thousands Except Per Share Data
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2025
2025
2024
2024
2024
Interest Income
Loans
$ 21,090
$ 20,097
$ 19,349
$ 18,510
$ 17,637
Investments
2,422
2,815
3,457
4,419
3,656
Total Interest Income
$ 23,512
$ 22,912
$ 22,806
$ 22,929
$ 21,293
Interest Expense
10,139
10,088
10,732
11,477
10,803
Net Interest Income
$ 13,373
$ 12,824
$ 12,074
$ 11,452
$ 10,490
Provision for Loan Losses
625
397
532
575
150
Noninterest Income
1,756
1,452
1,890
1,583
1,434
Noninterest Expense
9,906
9,655
9,385
8,992
8,847
Income Before Taxes
$ 4,598
$ 4,224
$ 4,047
$ 3,468
$ 2,927
Provision for Income Taxes
912
887
879
864
651
Net Income
$ 3,686
$ 3,337
$ 3,168
$ 2,604
$ 2,276
Basic Earnings Per Share
$ 0.49
$ 0.44
$ 0.42
$ 0.34
$ 0.30
Diluted Earnings Per Share
$ 0.48
$ 0.43
$ 0.41
$ 0.34
$ 0.30
Weighed Average Shares Outstanding
Basic
7,574,194
7,572,042
7,571,823
7,571,823
7,604,515
Diluted
7,730,735
7,692,154
7,669,723
7,663,132
7,657,325
Total Shares Outstanding
7,469,063
7,572,253
7,571,823
7,571,823
7,571,823
Six Months Ended
June 30,
June 30,
2025
2024
Interest Income
Loans
$ 41,187
$ 34,831
Investments
5,237
6,627
Total Interest Income
$ 46,424
$ 41,458
Interest Expense
20,227
20,851
Net Interest Income
