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South Atlantic Bancshares' Robust Q2 2025 Earnings Report

South Atlantic Bancshares, Inc. (OTCQX: SABK), the parent company of South Atlantic Bank, reported impressive financial results for the second quarter of 2025. The Company achieved a consolidated net income of $3.7 million or $0.48 per diluted common share. This marks a significant increase from the $3.3 million or $0.43 per diluted common share reported in the first quarter of 2025.

Financial Highlights

During the first half of 2025, South Atlantic Bancshares reported a net income of $7.0 million ($0.91 per diluted common share), an exceptional increase compared to $4.3 million ($0.56 per share) from the same period last year. The growth was bolstered by an impressive 62.0% rise in net income year-over-year for the second quarter, driven particularly by strong performance in net interest income and solid loan growth.

Key Metrics

• - Net Income: Increased by 10.5% quarter-over-quarter and 62.0% year-over-year.
• - Total Assets: Grew by $82.7 million to $1.9 billion over the past six months, reflecting a 9.3% annualized growth rate.
• - Total Loans: Increased by $53.7 million (3.9% quarter-over-quarter) and $95.3 million (7.1% year-over-year).
• - Total Deposits: Rose by $47.6 million (3.0% quarter-over-quarter) and $154.8 million (10.6% year-over-year).

This growth occurred despite a loss on the sale of securities, demonstrating the company's resilience in a competitive banking environment.

Management’s Perspective

K. Wayne Wicker, the Chairman and CEO, expressed his satisfaction with the results, noting, "Economic activity remains strong across our markets, and we believe our credit quality remains pristine. We continue to monitor macroeconomic conditions but remain optimistic about the positive momentum as we move towards the second half of 2025."

Wicker highlighted the balance sheet restructuring efforts that have strengthened the company’s position. Measures included targeted sales of securities, which were reinvested into higher-yielding loans, along with a considerable reduction of short-term borrowings. Notably, short-term borrowings dropped from $130 million to $80 million, a substantial 38.5% reduction.

Interest and Credit Quality

South Atlantic Bank’s net interest margin improved to 3.09%, up 4 basis points from the previous quarter, attributed to rising loan yields and a decrease in the cost of funds. The Company also reported no non-performing loans as of June 30, 2025, reaffirming its excellent credit quality metrics.

The CEO added that while interest rates remain elevated, the Bank continues to optimize earnings, capitalizing on the stable interest rate environment.

Future Outlook

Looking ahead, South Atlantic Bancshares is positioned strategically with a solid growth trajectory and plans for expansion. Wicker noted that the company's board of directors has recently authorized a stock repurchase program for up to 5.0% of its outstanding common stock, signaling confidence in the bank's valuation and future growth potential.

In conclusion, South Atlantic Bancshares demonstrates strong operational performance and resilience in a challenging economic landscape. As they navigate potential economic uncertainties, the company remains committed to delivering value for its shareholders and customers alike.

About South Atlantic Bancshares

Founded in Myrtle Beach, South Carolina, South Atlantic Bancshares operates as a full-service financial institution aimed at providing a comprehensive suite of banking services to individuals and businesses across the state. With a commitment to community banking, the company continues to serve its customers with personalized service through its network of branches. For further information, visit South Atlantic Bank.