Year-End 2017 Earnings Growth Caps 10th Anniversary Year

Myrtle Beach, South Carolina, January 30, 2018 – South Atlantic Bancshares, Inc. (the “Company”) (OTCQX: SABK), parent of South Atlantic Bank, today reported net income of $3,414,260 for the year ended December 31, 2017, compared to $2,603,928 for the same period a year ago. These figures represent a 31.1 percent increase in net income.

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Financial Highlights

• Year-end 2017 represents the Company’s best financial performance in its 10-year history.
• Net income per diluted share was $0.62 for the year ended December 31, 2017, compared to $0.47 for the year ended December 31, 2016.
• Credit quality remains strong with net charge-offs to total average assets of just 0.01 percent at December 31, 2017.
• The net interest margin improved to 4.02 percent at year end 2017, compared to 3.86 percent at year end 2016.
• Total loans grew 18.4 percent, to $436.8 million at December 31, 2017, from $369.0 million at December 31, 2016.
• Total deposits grew 14.9 percent, to $439.2 million at December 31, 2017, from $382.3 million at December 31, 2016.
• Total assets grew 16.8 percent, to $519.1 million at December 31, 2017, from $444.5 million at December 31, 2016.

“The Company achieved record profitability while reaching several important goals,” said K. Wayne Wicker, chairman of the board and chief executive officer. “Our double digit increase in net income can be attributed to several factors, including the Bank’s expanded geographic footprint which fueled growth in the commercial loan portfolio, and a record year in production for the Bank’s mortgage loan department. All markets contributed to the Company’s performance in 2017.

“The strong showing is all the more significant due to the Company’s achievements in 2017,” Wicker said. “During the first quarter, the Company completed a $20 million capital raise through the sale of its common stock. This additional capital will help support the Bank’s continued growth goals and expansion going forward. In the third quarter, the Bank expanded its presence in Charleston, establishing a regional headquarters in Mount Pleasant and opening an office on East Bay Street, both of which have been well-received in the market. In the fourth quarter, the Company announced its agreement to acquire Atlantic Bancshares, Inc. which will add banking offices in Hilton Head and Bluffton to the South Atlantic Bank footprint. We expect to complete the merger by the end of April with conversion of the Atlantic Community Bank offices to the South Atlantic Bank brand in June.”

View 2017 Year End Financial Highlights

About South Atlantic Bank
South Atlantic Bank, the subsidiary bank of South Atlantic Bancshares, Inc. (OTCQX: SABK), is a $513.3 million financial institution that is locally owned, controlled, and operated. The Myrtle Beach-based bank has five offices along the Grand Strand and two in the Charleston region.
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.

Cautionary Statement Regarding Forward-Looking Statements
Forward-looking statements in this press release, such as statements relating to future plans and expectations, are subject to risks, uncertainties, and other important factors, such as continued economic difficulties at local, national, or global levels, greater than expected noninterest expenses, regulatory changes, unpredictable natural or other disasters, or a deterioration in credit quality, which could cause actual results to differ materially from our expectations of future results, performance or achievements, or industry results, expressed or implied by such forward-looking statements. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management’s good faith belief as to future events. The words “believe,” “expect,” “anticipate,” “project,” “should,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. 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 undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Information contained herein, other than information at December 31, 2016 and 2015, and for the twelve months then ended, is unaudited.

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