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South Atlantic Bancshares, Inc. First Quarter 2026 Financial Performance

In its latest financial report, South Atlantic Bancshares, Inc. (OTCQX: SABK), the parent company of South Atlantic Bank, declared a consolidated net income of $4.5 million, equating to $0.58 per diluted share, for the first quarter of 2026. This reflects a decrease from the fourth quarter of 2025, where earnings were reported at $4.8 million or $0.62 per diluted share, yet marks a significant 33.9% increase compared to the $3.3 million earnings from the same period last year, demonstrating robust growth patterns in a fluctuating economic landscape.

Financial Highlights

The financial performance highlights for the first quarter of 2026 demonstrate notable growth across various financial metrics:

• - Net income surged by $1.1 million (or 33.9%) compared to Q1 2025.
• - Total assets rose to approximately $1.93 billion, showing an increase of $12.6 million or an annualized growth rate of 2.6% compared to the previous quarter.
• - Total loans increased by $11.7 million or 3.2%, bringing the total to approximately $1.48 billion, which reflects a growth of 7.1% year-over-year.
• - Total deposits saw an increase of $40.3 million, translating to 10.4% on an annualized basis. This growth suggests strengthened customer confidence in the bank's offerings.
• - The tangible book value per share climbed to $17.53, up by 2.8% from Q4 2025 and 17.6% from Q1 2025, reflecting a healthy financial foundation.

Capital Management and Efficiency

Chairman and CEO K. Wayne Wicker expressed satisfaction with the bank's first-quarter performance. He noted sound management of the balance sheet with a 10.4% growth in deposits versus a moderate loan growth within the quarter. The focus on relationship banking and prudent risk management stands out, especially within the context of current global macroeconomic uncertainties.

Despite pressures on earning asset yields from fluctuating interest rates, the cost of funds remained stable at 2.25% compared to the previous quarter. Wicker remains optimistic about the loan and deposit pipelines for the upcoming quarters, underscoring the team's commitment to delivering exceptional services.

Continued Growth Amidst Challenges

The report indicates consistent credit quality and threat minimization across their markets. As of March 31, 2026, South Atlantic Bancshares reported no non-accrual loans and maintained excellent credit performance metrics. However, the company has acknowledged the realities of the current economic climate, advising stakeholders of potential rises in provisions for credit losses moving forward.

In review, the robust financial results for South Atlantic Bancshares in Q1 2026 reveal a solid performance anchored by growth in both income and assets, alongside strategic management of their loan and deposit portfolios amid an ever-evolving economic backdrop. The bank's success thus far reflects both a trusted operational model and adaptability in challenging financial atmospheres.

For further inquiries or to explore additional details about the financial report, stakeholders can visit South Atlantic Bank's investor relations page.