South Atlantic Bancshares Reports Strong Earnings Results
South Atlantic Bancshares, Inc. Financial Report
South Atlantic Bancshares, Inc. (OTCQX: SABK), the parent company of South Atlantic Bank, has reported a consolidated net income of $3.7 million, or $0.48 per diluted common share, for the second quarter of 2025. This marks an increase from the $3.3 million, or $0.43 per diluted common share, reported in the first quarter of the same year. Furthermore, net income for the six months ending June 30, 2025, amounted to $7.0 million, translating to $0.91 per diluted share, up significantly from $4.3 million, or $0.56 per diluted share for the same period in the previous year.
Key Financial Highlights
During the second quarter of 2025, the bank achieved remarkable milestones, showcasing robust growth and performance:
- Net Income Growth: $3.7 million, reflecting a quarter-over-quarter increase of 10.5% and a year-over-year growth of 62.0% compared to the second quarter of 2024.
- Total Assets Surge: Total assets increased by $82.7 million to reach $1.9 billion as of June 30, 2025.
- Loans Expansion: Total loans saw a quarter-on-quarter increase of 3.9%, growing by $53.7 million during the last quarter.
- Deposits Growth: Total deposits grew by $47.6 million in the quarter, accumulating to an impressive total of $1.6 billion.
- Reduction in Borrowings: Short-term borrowings decreased from $130 million to $80 million, a reduction of 38.5%.
Management's Commentary
K. Wayne Wicker, the Chairman and CEO of South Atlantic stated, "We are delighted to announce these robust financial results for the second quarter of 2025. Our net income reflects not just growth, but also the stability we maintain within our interest margins despite the prevailing elevated market rates. The strong demand for loans and deposits are testaments to our ongoing commitment to our customers and the local communities we serve.”
Wicker further elaborated on strategies for the second half of 2025, expressing confidence in maintaining positive momentum and resilience amidst economic fluctuations.
Earnings Analysis
For the three months ended June 30, 2025, net interest income surged by $2.9 million, marking an increase of 27.5% and reaching a total of $13.4 million. This jump was largely due to improved yields and organic growth in the company’s loan portfolio, offset by a $1.2 million decline in interest earnings from the investment portfolio. Additionally, interest expenses diminished by 6.1% during the quarter.
For the six-month period ending June 30, 2025, net interest income recorded an increase of $5.6 million, reaching $26.2 million.
Noninterest Income and Expenses
Noninterest income showed significant growth, with a $322 thousand rise in the three months ended June 30, primarily fueled by an increase in secondary mortgage income and service charges. However, total noninterest expenses also rose, mainly due to the restructuring of securities and ongoing investments in operations.
Balance Sheet Overview
As of June 30, the total equity stood at $121.1 million, a significant increase from the previous year. Notably, the tangible book value per share rose to $15.47, an impressive increment from previous periods. The bank continues to focus on enhancing its balance sheet by managing both assets and liabilities effectively.
Regulatory Capital Position
South Atlantic Bank's capital remains robust, comfortably above regulatory requirements for being classified as “well-capitalized.” The company reported a total risk-based capital ratio of 11.68% and a leverage ratio of 8.73% as of June 30, demonstrating sound financial health and compliance.
About South Atlantic Bancshares, Inc.
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company with approximately $1.9 billion in total assets. The organization is focused on delivering high-quality, personalized banking solutions through its full-service banking subsidiary, South Atlantic Bank, which has established itself as a key player in the regional financial services landscape.
Contact Information
For more information, please contact:
K. Wayne Wicker, Chairman & CEO, 843-839-4410
Matthew Hobert, EVP & CFO, 843-839-4945
Frequently Asked Questions
What is South Atlantic Bancshares, Inc.'s key financial result for June 2025?
The company reported a net income of $3.7 million, equating to $0.48 per diluted common share.
How have deposits changed for South Atlantic Bank?
Total deposits increased by $154.8 million, representing a growth of 10.6%
What investments is the bank making for future growth?
The bank is focused on growing its loan portfolio and enhancing customer services through technology.
What's the current outlook for South Atlantic Bancshares?
The management is optimistic about maintaining momentum and navigating economic uncertainties effectively.
How is South Atlantic Bancshares managing its regulations?
The bank is operating well above regulatory thresholds and maintains a strong capital position.
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