#United States #Financial Performance #Myrtle Beach #South Atlantic Bancshares #South Atlantic Bank

South Atlantic Bancshares, Inc. Reports Strong Annual Earnings for 2024

South Atlantic Bancshares, Inc., the parent company of South Atlantic Bank, has unveiled its financial results for the year ending December 31, 2024. The company registered a net income of $10.1 million, which translates to $1.31 per diluted common share. This result indicates a slight dip from the previous year’s earnings of $10.0 million, or $1.32 per share, yet reflects a resilient performance against a backdrop of fluctuating interest rates.

Key Financial Highlights

For the fourth quarter of 2024, South Atlantic Bancshares reported a net income of $3.2 million, equating to $0.41 per diluted common share. This marks an improvement from Q3 2024, where the net income was $2.6 million, and a considerable increase compared to Q4 2023's $2.2 million. The company experienced a quarter-over-quarter increase of 21.7% in net income, alongside a year-over-year increase of 44.5% when comparing the same quarter to the previous year.

The balance sheet exhibited substantial growth as well, with total assets climbing from $1.62 billion at the end of 2023 to approximately $1.79 billion by the end of 2024, symbolizing a 10.1% increase. In addition, total loans surged by $55.7 million in Q4 alone, and grew 13.1% over the entire year, totaling $1.34 billion by December 31, 2024. Total deposits for the year grew by $166.6 million, reflecting a healthy increase of 12.9%.

Performance Metrics

The bank showed robust growth in net interest income, rising 3.8% to $44.1 million for the year. This improvement was largely attributed to a significant 23.9% increase in interest income from the loan portfolio, which reached $72.7 million in 2024 compared to $58.6 million in 2023. Moreover, the interest income from investment and cash reserves also boosted the overall income, contributing $14.5 million for the year, up from $11.1 million in the previous year.

Despite these gains, the company also faced increased interest expenses that rose sharply due to a competitive market for deposits, which necessitated higher rates to attract deposits. The overall net interest margin improved slightly to 2.83%, showing an upward trend from the previous year despite external pressures.

Future Outlook

As stated by K. Wayne Wicker, Chairman and CEO of South Atlantic Bancshares, despite the challenges posed by interest rate hikes by the Federal Reserve, the company was able to close the year with promising momentum. With net income for the second half of 2024 exceeding that of the first half by 34.8%, the company is optimistic about navigating the uncertain interest rate landscape ahead.

Looking forward, South Atlantic Bancshares aims to continue building on this foundation, with plans to leverage its strong asset position and focus on maintaining high credit quality amidst a challenging economic environment. The company also remains vigilant regarding potential credit losses and the impacts of external economic factors, including inflation and interest rate fluctuations.

Overall, South Atlantic Bancshares stands strong at the threshold of 2025, armed with solid financial metrics and a community-focused banking approach, positioned to tackle challenges head-on while serving its diverse market.

About South Atlantic Bancshares, Inc.

Founded and headquartered in Myrtle Beach, South Carolina, South Atlantic Bancshares, Inc. operates a full-service banking institution dedicated to servicing the local community and beyond. With twelve banking locations across South Carolina, the bank offers a comprehensive range of financial services to individuals and businesses. For more information, visit www.SouthAtlantic.bank.