South Atlantic Bancshares Inc. Reports Quarterly Earnings Growth and Positive Financial Momentum

South Atlantic Bancshares Reports Strong Quarterly Earnings

Myrtle Beach, S.C. – South Atlantic Bancshares, Inc. (OTCQX: SABK), the parent company of South Atlantic Bank, has reported impressive earnings for the second quarter of 2026. The company achieved a net income of $4.7 million, translating to earnings of $0.61 per diluted common share. This marks a notable improvement compared to $4.5 million, or $0.58 per diluted share in the previous quarter and $3.6 million or $0.49 per diluted share in the same quarter last year.

Financial Highlights

In addition to the solid earnings, South Atlantic's total assets increased by $50.3 million to reach $2.0 billion, representing a 10.4% annualized growth since the first quarter of 2026. The company's total loans also exhibited an upward trend, growing by $61.9 million to $1.54 billion, which is a 4.2% increase from the previous quarter.

Total deposits experienced a significant boost as well, rising by $82.2 million to $1.68 billion, showcasing a 5.2% increment. Throughout 2026, South Atlantic has seen a steady increase in both loans and deposits, indicating effective management and growth strategies implemented by the bank’s leadership.

CEO's Remarks

Chairman and CEO K. Wayne Wicker expressed his satisfaction with the quarterly results, stating, "We are delighted to report these strong financial results for the second quarter of 2026. Our growth on both the asset and liability sides of our balance sheet indicates robust economic activity in our region. The increase in net income by 6.2% from the linked quarter, along with improvements in our pre-provision net revenues and shrinking cost of funds, underscores our ongoing strength and resilience."

The positive figures come at a time when many financial institutions are grappling with macroeconomic uncertainties. However, South Atlantic appears to be successfully navigating these challenges while capitalizing on the heightened demand for banking services in South Carolina.

Revenue Breakdown

Interest income rose to $24.8 million for the second quarter, driven primarily by an increase in the lending portfolio. The bank saw a 13.8% increase in net interest income, attributing it to the organic growth of its loan volumes. The cost of funds declined to 2.19%, allowing the net interest margin to expand to 3.36%, reflecting efficient cost management and a strategic focus on profitability.

Non-interest income also saw a slight increase, adding to the company's financial strength. On the expense side, a moderate rise in salaries and employee benefits was noted, which aligns with the bank's strategy of investing in its workforce for enhanced customer service.

Future Outlook

Looking ahead, South Atlantic Bancshares remains optimistic about continued growth through 2026. The bank has identified a strong pipeline of loans and deposits, suggesting a positive trajectory for the coming months. Despite the ongoing economic and geopolitical uncertainties, Wicker stated that the company’s focus on credit quality and comprehensive risk management would remain a priority.

In conclusion, South Atlantic Bancshares has demonstrated resilience and growth in a competitive banking landscape, reinforcing its commitment to serve its community with effective financial solutions while performing strongly on the market front.