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South Atlantic Bancshares Reports Q1 Earnings

South Atlantic Bancshares, Inc. (OTCQX: SABK), the holding company for South Atlantic Bank, recently announced its earnings for the first quarter of 2025. The Bank reported impressive consolidated net income of $3.3 million, translating to $0.43 per diluted share, marking a notable rise compared to the previous quarter and an impressive increase from the same period last year. This represents a 5.3% increase from the fourth quarter of 2024 where earnings stood at $3.2 million, or $0.41 per diluted share, and a stunning 66.3% increase from Q1 2024, which reported $2.0 million, or $0.26 per share.

Financial Performance Highlights

• - Net Income: The Company’s net income reached $3.3 million for the quarter, reflecting robust growth both quarter-over-quarter and year-over-year.
• - Total Assets: Assets grew by $81.4 million to $1.9 billion, representing a 4.6% increase from the end of the previous quarter.
• - Loans: Total loans increased by $41.7 million, annualizing to 12.5% growth, demonstrating active lending during the quarter.
• - Deposits: Total deposits surged by $107.3 million, an annualized growth of 29.4%, indicating strong customer confidence and inflow.
• - Tangible Book Value: The book value per share saw an increase of $0.61, reaching $14.91 by March 31, 2025.

K. Wayne Wicker, Chairman and CEO, expressed satisfaction with the quarterly performance, emphasizing the key metrics indicating improved profitability and operational health. He noted that the momentum from 2024 transitioned well into 2025, backed by solid growth in loans and deposits across their markets, suggesting an encouraging outlook for the rest of the year.

Enhanced Profitability Metrics

The first quarter also revealed a positive trend in the Bank’s profitability metrics. The net interest margin, a critical measure of the Bank’s profitability, expanded by 22 basis points compared to the previous quarter, reaching 3.05%. This improvement can be attributed to increased yields on earning assets and a reduction in funding costs following interest rate adjustments by the Federal Reserve. Wicker remarked on the favorable impact of these economic conditions, stating that the Bank’s overall credit quality remains exemplary amid ongoing economic fluctuations.

Strategic Focus on Growth

Despite underlying economic uncertainties, South Atlantic remains diligent in overseeing credit quality amid an ever-evolving macroeconomic landscape. The Bank reported two loans classified as non-accrual, with no loans past due over 30 days, establishing a solid footing in risk management. The proactive measures put in place are aimed at navigating the potential challenges in today’s financial environment, including the persistent inflationary pressures and the ongoing high-interest-rate climate.

The management remains optimistic about future growth, with loan and deposit pipelines poised for continued expansion throughout the year. The Bank stresses its commitment to maintaining solid community banking services while adapting to shifting market conditions.

As South Atlantic Bancshares prepares for the remainder of 2025, it will continue to pursue growth opportunities while ensuring operational efficiency across all sectors. The financial performance disclosed in this report provides a robust foundation for the institution as it continues to serve its customers and stakeholders effectively.

In summary, the first quarter of 2025 unveiled a period of substantial growth and resilience for South Atlantic Bancshares, reflecting both effective management strategies and a strong commitment to community banking, positioning the organization well for future challenges and opportunities.