South Atlantic Bancshares, Inc. Announces Strong Financial Gains
South Atlantic Bancshares, Inc. Highlights Earnings Performance
South Atlantic Bancshares, Inc. (“South Atlantic” or “the Company”) (OTCQX: SABK), a leading financial institution, reported impressive quarterly results with a consolidated net income of $3.3 million, translating to $0.43 per diluted common share for the first quarter of 2025. This performance marks a notable improvement compared to $3.2 million or $0.41 per diluted common share for the previous quarter, and reflects a significant increase of $1.3 million, or 66.3 percent, compared to the same quarter in the prior year.
Financial Growth Overview
The highlights from the first quarter of 2025 demonstrate strong financial momentum. The net income total increased by $169.0 thousand, representing a 5.3 percent quarter-over-quarter increase, with total assets witnessing a growth of $81.4 million, reaching $1.9 billion— a rise of 4.6 percent since the end of December 2024.
Loans and Deposits Surge
Total loans improved significantly, with an increase of $41.7 million, marking a 12.5 percent annualized growth during the quarter. Similarly, total deposits surged by $107.3 million, reflecting a remarkable 29.4 percent annualized growth. The tangible book value per share increased to $14.91, up $0.61, or 4.3 percent, from the previous quarter, and increased by $1.86, or 14.2 percent, year-over-year.
Operational Efficiency Enhancements
One of the most impressive aspects was the increase in the net interest margin, which rose by 22 basis points during the quarter to reach 3.05 percent. Additionally, there was a decline in the cost of funds by 12 basis points to 2.46 percent, demonstrating effective operational strategies in managing interest rates.
Management's Insights on the Quarter
K. Wayne Wicker, the Chairman and CEO, highlighted the Company’s robust growth in both loans and deposits across diverse markets while expressing optimism towards future performances despite external economic challenges. He noted, “After closing 2024 on a high note, we carried that momentum into the first quarter of 2025, showing improved balance sheet metrics.”
Continued Focus on Credit Quality
As of March 31, 2025, the Company maintained pristine credit quality with only two loans classified as non-accrual and no instances of loans being past due for over 30 days. A provision for credit losses of $397 thousand was recorded, demonstrating the management’s proactive approach in maintaining high credit standards amidst economic uncertainty.
Regulatory Capital Strength
The Bank continues to meet and exceed regulatory capital requirements, achieving a total risk-based capital ratio of 11.69 percent and a leverage ratio of 8.66 percent, which reinforced its position as a well-capitalized institution.
Looking Ahead
As South Atlantic Bancshares positions itself for future challenges and opportunities, the Company emphasizes its commitment to robust risk management practices and community-focused banking. The strategies implemented are designed to navigate economic uncertainties while delivering value to shareholders and customers.
About South Atlantic Bancshares, Inc.
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company known for its community-driven banking solutions. With total assets around $1.9 billion, the Company operates South Atlantic Bank, which provides a comprehensive mix of financial services across multiple regions. The Bank ensures a customer-centric approach to banking, focusing on personalized services for individuals and businesses alike.
Frequently Asked Questions
What financial results did South Atlantic Bancshares report?
South Atlantic Bancshares reported a net income of $3.3 million or $0.43 per diluted common share for the first quarter of 2025.
How did the company's total assets change?
Total assets increased by $81.4 million, reaching $1.9 billion during the first quarter of 2025.
What was the increase in total loans during the quarter?
Total loans increased by $41.7 million, which translates to a 12.5 percent annualized growth.
How have deposits changed recently?
Total deposits grew by $107.3 million, or 29.4 percent annualized, in the first quarter of 2025.
What is the tangible book value per share?
The tangible book value per share increased to $14.91, up $0.61 from December 31, 2024.
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