MYRTLE BEACH, SC, July 25, 2018 — South Atlantic Bancshares, Inc. (“South Atlantic”) (OTCQX:SABK), announced today the results of its operations for the second quarter ended June 30, 2018.
- Net operating return on average assets (non-GAAP) of 0.75 percent for the six months ending June 30, 2018, the best performance in company history.
- Net interest margin, taxable equivalent, of 4.20 percent, a 20 basis point, or 5 percent, increase from a year ago.
- Asset quality continues to be a highlight with nonperforming assets to total assets of 0.00 percent.
South Atlantic also completed its acquisition of $82.4 million Atlantic Bancshares, Inc. during the second quarter.
- Total loans grew 23.37 percent, to $511.9 million at June 30, 2018 from $415.0 million at June 30, 2017, primarily due to the acquisition of Atlantic Bancshares.
- Total deposits grew 21.7 percent, to $555.1 million at June 30, 2018 from $456.0 million at June 30, 2017, reflecting that South Atlantic has been successful at retaining Atlantic Bancshares deposits to date.
- Total assets grew 23.0 percent to $638.9 million at June 30, 2018 from $519.3 million at June 30, 2017, primarily due to the acquisition of Atlantic Bancshares.
K. Wayne Wicker, Chairman and Chief Executive Officer, stated: “It was a productive first six months as we excelled in our return on average assets and earnings per share. We achieved these milestones through growing
loans by more than 23 percent in the past year while maintaining a very strong net interest margin. Demand deposits also increased significantly across all markets. Our team has done a great job integrating the Atlantic
Bancshares, Inc. acquisition. The combination of the two banks with complementary business lines strengthens our coastal South Carolina franchise. As an organization, we continue to improve on our efficiencies as we capture further economies of scale, even while absorbing the one-time merger and conversion related costs.”
2Q 2018 Financial Highlights
Net operating earnings (non-GAAP) for the six months ended June 30, 2018 totaled $2.1 million or $0.29 per diluted common share. Net income for the six months ending June 30, 2018 was $752 thousand, which includes one-time charges of $1.4 million in merger and conversion expenses, or $0.10 per common share. Net income for the six months ending June 30, 2017 was $1.6 million or $0.34 per common share.
Net operating earnings (non-GAAP) for the three months ended June 30, 2018 totaled $1.3 million compared to $963 thousand in 2017. For the quarter, net operating earnings diluted (non-GAAP) per common share was $0.17, compared to $0.17 in 2017. Net income for the quarter was $(48,853) or (0.01) per diluted share, which includes one-time charges of $1.4 million in merger and conversion expenses, compared to $963 thousand a year ago.