First Quarter 2018 Earnings Grow 16.8 Percent

Myrtle Beach, South Carolina, April 16, 2018 – South Atlantic Bancshares, Inc. (the “Company”) (OTCQX: SABK), parent of South Atlantic Bank, today reported net income of $801,345 or $0.12 per diluted share for the three months ended March 31, 2018, compared to $686,134 or $0.10 per diluted share reported for the same period a year ago. Net income increased 16.8 percent from March 31, 2017 to March 31, 2018.

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Financial Highlights

• Credit quality remains strong with no net charge-offs and nonperforming assets to average total assets of just 0.07 percent as of March 31, 2018.
• Noninterest income grew 12.90 percent for the first quarter.
• The net interest margin improved to 4.07 percent as of March 31, 2018.
• Total loans grew 5.95 percent, from $404.9 million at March 31, 2017 to $428.9 million at March 31, 2018.
• Total deposits grew 12.76 percent, from $414.8 million at March 31, 2017 to $467.7 million at March 31, 2018.
•  Total assets grew 10.35 percent, from $482.8 million at March 31, 2017 to $532.8 million at March 31, 2018.

“An improved net interest margin compared to year end 2017 and continued excellent asset quality positioned us for the first quarter performance. Our loan growth for the quarter of 5.95% was down compared to growth in the first quarter of 2017 primarily due to the improved economy, pay off of existing loans and increased cash holdings of borrowers. The increased customer deposits along with deposit rate increases has grown interest-bearing deposits in all markets. Noninterest income, led by our Mortgage Division continues to improve. Anticipated loan growth for the second quarter, improved non-interest income and expense control should fuel our earnings during 2018.” K. Wayne Wicker, chairman of the board and chief executive officer of the Company said.

In other news, on April 2, 2018, South Atlantic Bancshares, Inc. closed the acquisition of Atlantic Bancshares, Inc., which was announced in December. The transaction is valued at $17.1 million, and added offices in Bluffton and Hilton Head Island, SC. The Company now has nine offices serving South Carolina’s desirable coastal markets.

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About South Atlantic Bank

South Atlantic Bank, the subsidiary bank of South Atlantic Bancshares, Inc. (OTCQX: SABK), is a $532.7 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, with additional offices in Murrells Inlet, Pawleys Island, Georgetown, North Myrtle Beach, Mount Pleasant, Bluffton and Hilton Head Island, South Carolina. South Atlantic Bank offers a wide variety of services for businesses and consumers, including South Atlantic Bank goMobile, its mobile banking app. The bank also offers internet banking, no-fee ATM access, checking, CD, and money market accounts, merchant services, mortgage loans, remote deposit capture, and more. For more information, visit SouthAtlantic.bank.

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Cautionary Statement Regarding Forward-Looking Statements

This press release contains, among other things, certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, without limitation, statements preceded by, followed by, or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Information contained herein, other than information at December 31, 2017, and for the twelve months then ended, is unaudited. All financial data should be read in conjunction with the notes to the consolidated financial statements of the Company and South Atlantic Bank as of and for the fiscal year ended December 31, 2017, as contained in the Company’s 2017 Annual Report located on the Company’s website.

View 2018 First Quarter Financial Highlights

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