TAKE STOCK
SECOND QUARTER
2022
Loans
$718.0
June 30, 2022
June 30, 2021
$887.7
Assets
$1,403.6
$1,145.8
June 30, 2022
June 30, 2021
Deposits
$1,267.0
$1,027.6
Quarterly Net Income
$2.5
$2.5
June 30, 2022
June 30, 2021
SECOND QUARTER REVIEW
June 30, 2021 June 30, 2022
South Atlantic Bank continued to build on its success
with a strong start to 2022. Financial performance
during the second quarter of 2022 exceeded our
expectations, and our results during the period are
a testament to the investment in our team and
technology.
The Company reported consolidated net income of $2.5 million, or $0.33 per
diluted common share, for the quarter ended June 30, 2022, an increase of
$33 thousand, or $0.01 per diluted common share, compared to the quarter
ended June 30, 2021.
Second Quarter 2022 Financial Highlights:
• Net income for the second quarter of 2022 totaled $2.5 million, a 25.0
percent increase over the rst quarter of 2022 and a 1.3 percent increase
over the second quarter of 2021.
• Loan interest income, excluding fees, for the second quarter of 2022
increased $1.5 million, or 21.2 percent when compared to the same period
in 2021.
• Total assets as of June 30, 2022 equaled $1.4 billion, a 13.9 percent
increase year-to-date and 22.5 percent increase year-over-year.
• Net loans increased to $879.2 million at June 30, 2022, a 21.1 percent
increase year-to-date and 23.7 percent increase year-over-year.
• Total deposits increased to $1.3 billion at June 30, 2022, a 17.1 percent
increase year-to-date and 23.3 percent increase year-over-year.
The Company’s subordinated debt issuance of $30.0 million in December
2021, which occurred prior to the market interest rate increases experienced
in the rst and second quarter of 2022, has provided the Company with a
capital source positioning the Bank for future growth. Our strategic plans
include organic growth with new oces in our coastal footprint to capture
the opportunities in these markets.
With the Federal Open Market Committee of the Board of Governors of the
Federal Reserve System repeatedly raising their target benchmark interest
rate in the rst six months of 2022, resulting in subsequent prime rate
increases of 150 basis point between March and June of 2022, the Company
believes that the Bank’s balance sheet is well suited to navigate the current
rising rate environment, which is expected to continue in light of the
uncertain inationary outlook in the United States and our market areas.
We believe these second quarter 2022 results, along with strength in our
loan pipeline, have us well-positioned for the second half of 2022. Our South
Carolina coastal markets continue to be among the fastest growing in the
country, and we are excited about the prospects this growth brings.
Please refer to our second quarter 2022 earnings release dated July 19,
2022, for detailed information regarding our second quarter performance.
The earnings release can be found on our Investor Relations webpage at
southatlantic.bank. As always, thank you for your support.
ON THE BANKING FRONT
Plans for our new Beaufort oce are underway
with construction to start in January 2023 at
the site on Robert Smalls Parkway. A temporary
oce will open in the fourth quarter of 2022 at
11 E. Robert Smalls Parkway, adjacent to the new
building site. The temporary oce will replace our
loan production oce that opened in Beaufort in
fall 2021. The new oce design has the signature
South Atlantic Bank look with deep porticos and
louvered shutters. This will be the 12th oce in
our coastal franchise.
Christian Kata, senior vice president, commercial
relationship manager, joined the bank in
November 2021 to open the loan production oce
and will lead the commercial team at the Beaufort
oce. He has 12 years of banking experience in the
Beaufort market and is a graduate of the University of
South Carolina with a B.S. degree in Finance.
Jose Vergara has joined the bank as vice president, branch manager, retail business development ocer.
He has 20 years of banking experience in the Beaufort market. He is a graduate of Indiana University with
a B.S. degree in Finance.
We are excited to announce the relocation of our Charleston East Bay Street oce to 40 Calhoun Street
on the corner of Calhoun and East Bay Street. This prominent location is next door to our current oce,
and the new address provides us a prime market presence as we continue to expand our business in
Charleston. The move is scheduled for January 2023 following renovations to the 5,600 square-foot oce
space. “The new location will allow South Atlantic Bank to better serve our existing customers while
giving us the needed space to add new team members and to continue the excellent growth the bank has
experienced,” said Len Howell, executive vice president, South Coast regional executive.
New Beaufort Oce Site Announced
Investment in Technology Builds Relationships
Customer relationship management (CRM) software launched bank wide in June. The software provides
a complete overview of the customer relationship and tracks all touch points, service issues and sales
opportunities. With input from all areas of the bank, information is at the ngertips of front-line
employees, lenders and operations sta. Using CRM software will help maximize customer loyalty and
customer growth, increase cross-sales and result in more ecient service.
The bank has also partnered with the Built construction loan management platform to streamline the
construction loan management process. We rolled out the software in May to builders and borrowers. It
simplies the process of communicating and exchanging information through the loan draw experience to
get projects funded faster, nished sooner and on budget.
East Bay Street Oce Relocation
Our Team Members are Our Greatest Asset
We’re very proud of our team and truly value their dedication and work ethic. To show our appreciation
during these turbulent times of ination and tight labor markets, our employees received retention
bonuses this summer. The strength of our company relies on the talent of our people, and there is no
better investment than in our employees. We thank each of them for their continued commitment to the
bank.
A rendering of our new oce that will be located at
37 Robert Smalls Parkway in Beaufort, South Carolina.
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company based in Myrtle Beach, South Carolina with $1.4
billion in total assets. The Company’s banking subsidiary, South Atlantic Bank, is a full-service nancial institution spanning the
entire coastal area of South Carolina. The Bank operates eleven oces in Myrtle Beach, Carolina Forest, North Myrtle Beach, Murrells
Inlet, Pawleys Island, Georgetown, Mount Pleasant, Charleston, Bluton, and Hilton Head Island, South Carolina. The Bank specializes
in providing personalized community banking services to individuals, small businesses and corporations. Services include a full range
of consumer and commercial banking products, including treasury management and South Atlantic Bank goMobile, the Bank’s mobile
banking app. The Bank also oers online banking, no-fee ATM access, checking, CD and money market accounts, merchant services,
mortgage loans, remote deposit capture, and more. For additional information, visit www.SouthAtlantic.bank.
Cautionary Statement Regarding Forward-Looking Statements w This document contains, among other things, certain
statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, without limitation, statements regarding the eects of the ongoing COVID-19 pandemic, statements
with references to a future period or statements preceded by, followed by, or that include the words “may,” “could,” “should,”
“would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “outlook,” or similar terms or expressions.
These statements are based upon the current beliefs and expectations of the Company’s management team and are subject to
signicant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s
control). These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company
to be materially dierent from the anticipated future results, performance, or achievements expressed in, or implied by, the forward-
looking statements. 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 and readers are cautioned not to place undue reliance on the forward-looking statements contained in this document. All
subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly
qualied in their entirety by the cautionary statements above. Any forward-looking statements contained in this document are
made as of the date hereof, and the Company does not undertake any obligation to update any forward-looking statement to reect
circumstances or events that occur after the date the forward-looking statements are made, except as required by law.
Information contained herein is unaudited, other than information as of December 31, 2021. All nancial data should be read in
conjunction with the notes to the consolidated nancial statements of the Company and the Bank as of and for the scal year ended
December 31, 2021, as contained in the Company’s 2021 Annual Report located on the Company’s website.
Mission Statement w To serve, in a fair, balanced, and superior manner, the interest of shareholders, customers, employees,
and the public through adherence to high standards of nancial soundness, exemplary customer service, employee professionalism,
business ethics, corporate citizenship, and protability.
Registrar and Transfer Agent w Broadridge Shareholder Services...P.O. Box 1342...Brentwood, NY 11717-0718
shareholder@broadridge.com...303.562.9275 or 888.789.8606
DIRECTORS
James Carson Benton, Jr.
Co-Owner and Operator
C.L. Benton and Sons, Inc.
Thomas C. Brittain
Attorney at Law
Brittain Law Firm, P.A.
Richard N. Burch
Executive Vice President
Chief Operating Ocer
South Atlantic Bank
Tony K. Cox
Executive Vice President
Real Estate
Burroughs and Chapin
Company
Miles M. Herring
Commercial Real Estate
Management and Development
Martha S. Lewis
Physical Therapist
R. Scott Plyler
President
South Atlantic Bank
Albert A. Springs, IV
Co-Owner and President
H.B. Springs Company
Jack L. Springs, Jr.
Co-Owner/Broker
Century 21 Barefoot Realty
Michael C. Tawes, Sr.
Partner
Valbridge Property Advisors
Atlantic Appraisals
K. Wayne Wicker
Chairman of the Board
Chief Executive Ocer
South Atlantic Bank
Edgar L. Woods
President/Owner
Palmetto Grain Brokerage, LLC
President
Performance AG, LLC
Take Stock is published quarterly for the shareholders and friends of South Atlantic Bancshares, Inc.
Beth Branham, Editor | bbranham@southatlantic.bank
Address Changes and Additions | To update the U.S. mail and e-mail addresses on le with us,
e-mail us at investorrelations@southatlantic.bank or visit the investor relations area of our website.
Your information will be updated upon receipt.
ABOUT SOUTH ATLANTIC BANK
