South Atlantic Bancshares, Inc. Reports Earnings of $0.32 per Diluted Common Share For the Three Months Ended June 30, 2021
MYRTLE BEACH, S.C., July 20, 2021 /PRNewswire/ -- South Atlantic Bancshares, Inc. ("South Atlantic" or the "Company") (OTCQX: SABK), parent of South Atlantic Bank (the "Bank"), reported consolidated net income of
"I am pleased with our second quarter results," said K. Wayne Wicker, Chairman and Chief Executive Officer of South Atlantic. "Our deposits grew to over
Balance Sheet Growth
Total assets increased to
Paycheck Protection Program
As part of the first phase of the PPP, we processed 1,013 PPP loans totaling
The Economic Aid Act, signed into law on December 27, 2020, authorized an additional
Operating Performance
Net income decreased by
Financial Performance | |||||||||
Dollars in Millions Except Per Share Data | |||||||||
Three Months Ended | Six Months Ended | ||||||||
Income Statement | June 30, 2021 | March 30, | December 31, | September 30, | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||
Interest Income | |||||||||
Loans | |||||||||
Investments | 1,119 | 748 | 734 | 653 | 641 | 1,867 | 1,251 | ||
Total Interest Income | 16,366 | ||||||||
Interest Expense | 559 | 575 | 665 | 738 | 821 | 1,134 | 2,153 | ||
Net Interest Income | |||||||||
Provision for Loan Losses | 375 | 285 | 665 | 165 | 610 | 660 | 855 | ||
Noninterest Income | 2,260 | 3,478 | 2,138 | 1,980 | 2,234 | 5,738 | 3,863 | ||
Noninterest Expense | 7,625 | 7,558 | 7,418 | 7,120 | 6,494 | 15,183 | 12,958 | ||
Income Before Taxes | 4,263 | ||||||||
Provision for Income Taxes | 637 | 978 | 376 | 376 | 540 | 1,615 | 880 | ||
Net Income | |||||||||
Basic Earnings Per Share | |||||||||
Diluted Earnings Per Share | |||||||||
Weighted Average Shares Outstanding | |||||||||
Basic | 7,513,030 | 7,509,333 | 7,504,098 | 7,504,040 | 7,504,040 | 7,513,030 | 7,504,040 | ||
Diluted | 7,633,965 | 7,600,275 | 7,561,005 | 7,530,222 | 7,529,952 | 7,620,012 | 7,558,972 | ||
Total Shares Outstanding | 7,541,109 | 7,509,333 | 7,509,333 | 7,504,040 | 7,504,040 | 7,541,109 | 7,504,040 |
Operating Results
The Company reported consolidated net income of
Net Interest Margin | ||||||||||
Dollars in Millions | Three Months Ended | |||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | |
Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | |
Interest earning assets | ||||||||||
Loans | ||||||||||
Loan fees | 0.70 | 1.00 | 0.62 | 0.40 | 0.38 | |||||
Loans with fees | ||||||||||
Total Interest earning assets | ||||||||||
Interest-bearing liabilities | ||||||||||
Total interest bearing deposits | ||||||||||
Total interest bearing liabilities | ||||||||||
Cost of funds | ||||||||||
Net interest margin |
Net Interest Margin decreased by 43 basis points in the second quarter of 2021 compared to the first quarter of 2021 primarily due to decreases in loan yields stemming from fee income generated by PPP loan forgiveness by the SBA. We may continue to experience net interest margin reduction due to declining in loan yields, slower cost of deposit declines and higher levels of liquidity related to the COVID-19 pandemic.
Our cost of funds decreased by 4 basis points in the second quarter of 2021 compared to the first quarter of 2021 and has decreased 22 basis points since June 30, 2020. We remain vigilant in managing our cost of funds and continue to take advantage of the current rate environment to supply low-cost funding for our Company.
Noninterest Income/Expense | ||||||||||||
Dollars in Millions | Three Months Ended | Six Months Ended | ||||||||||
Noninterest Income | June 30, 2021 | March 30, | December 30, | September 30, | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||
Service charges and fees | ||||||||||||
Securities gains, net | - | 990 | 90 | - | 430 | 990 | 962 | |||||
Secondary mortgage income | 1,365 | 1,755 | 1,354 | 1,248 | 1,080 | 3,120 | 1,549 | |||||
Other Income | 777 | 607 | 588 | 580 | 635 | 1,384 | 1,149 | |||||
Total noninterest income | ||||||||||||
Noninterest expense | ||||||||||||
Salaries and employee benefits | 9,644 | 7,998 | ||||||||||
Occupancy | 1,092 | 1,121 | 954 | 967 | 915 | 2,213 | 1,858 | |||||
Other | 1,686 | 1,640 | 1,892 | 1,579 | 1,540 | 3,326 | 3,102 | |||||
Total noninterest expense |
Noninterest income decreased by
Balance Sheet | |||||||
Dollars in Millions | |||||||
June 30, 2021 | March 31, 2021 | December 30, | September 30, | June 30, 2020 | |||
Cash and Cash Equivalents | |||||||
Investment Securities | 220,429 | 148,739 | 125,229 | 113,111 | 85,513 | ||
Loans Held for Sale | 7,807 | 26,559 | 36,676 | 37,141 | 13,119 | ||
Loans | |||||||
Loans | 718,026 | 691,141 | 686,894 | 673,766 | 680,265 | ||
Less Allowance for Loan losses | (7,494) | (7,109) | (6,824) | (6,243) | (6,100) | ||
Loans, Net | 710,532 | 684,032 | 680,070 | 667,523 | 674,165 | ||
OREO | - | - | - | - | - | ||
Property, net of accumulated depreciation | 20,350 | 20,371 | 20,313 | 20,328 | 20,447 | ||
BOLI | 23,525 | 23,369 | 23,215 | 18,087 | 17,959 | ||
Goodwill | 5,349 | 5,349 | 5,349 | 5,349 | 5,349 | ||
Core Deposit Intangible | 746 | 802 | 859 | 919 | 981 | ||
Other Assets | 15,088 | 14,749 | 14,148 | 14,354 | 14,209 | ||
Total Assets | |||||||
Deposits | |||||||
Noninterest bearing | |||||||
Interest Bearing | 617,021 | 589,533 | 560,112 | 539,855 | |||
Total Deposits | 921,451 | 834,854 | 823,997 | 815,010 | |||
Other Borrowings | 14 | - | - | - | - | ||
Other Liabilities | 15,422 | 16,242 | 13,865 | 15,309 | 15,368 | ||
Total Liabilities | |||||||
Shareholders' Equity | |||||||
Total Liabilities and Shareholders' Equity |
Total assets increased by
PPP Loans | ||||||||||||||||
Dollars in Millions | Production | Forgiveness | Outstanding as of | |||||||||||||
# of Loans | $ of Loans | # of Loans | $ of Loans | # of Loans | $ of Loans | |||||||||||
Phase 1 | 1,013 | 956 | 57 | |||||||||||||
Phase 2 | 519 | 54.6 | 67 | 8.9 | 452 | 45.7 | ||||||||||
Dollars in Thousands | 2Q21 | 1Q21 | 4Q20 | 3Q20 | 2Q20 | Remaining | ||||||||
Phase 1 Fee Income | - | |||||||||||||
Phase 2 Fee Income | - | - | - | |||||||||||
Credit Quality | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, 2021 | March 31, | December 31, | September 30, 2020 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||
LLR to Total Loans | ||||||||||
NPAs to Avg Assets | 0.00 | 0.03 | 0.02 | 0.03 | 0.04 | 0.00 | 0.04 | |||
NCOs to Total Loans | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
Total NPAs (thousands) | - | - |
We continue to see strong credit quality throughout our markets. We had no nonperforming assets in the second quarter. Currently, there are no loans past due greater than 90 days. We recorded a provision expense of
Throughout the COVID-19 pandemic, the Bank worked with borrowers who were unable to meet their contractual obligations due to the effects of the COVID-19 pandemic by offering loan modifications or payment deferrals to certain borrowers on a short-term basis. As of June 30, 2021, we had no loans with short-term modifications or payment deferrals due to the COVID-19 pandemic.
Performance Ratios | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, 2021 | March 30, | December 31, | September 30, | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||
ROAA | |||||||||
ROAE | 11.74 | 14.31 | 7.58 | 8.20 | 9.19 | 12.01 | 7.48 | ||
Efficiency | 68.62 | 61.27 | 72.00 | 73.94 | 66.68 | 64.76 | 71.69 | ||
NIM | 3.56 | 3.99 | 3.74 | 3.59 | 3.93 | 3.76 | 3.95 | ||
Book Value | |||||||||
Tangible Book Value | |||||||||
Capital Ratios | |||||||||
June 30, 2021 | March 30, | December 31, | September 30, 2020 | June 30, 2020 | |||||
Tier 1 | |||||||||
Leverage | 8.64 | 9.28 | 9.30 | 9.30 | 9.98 | ||||
CET-1 | 12.26 | 12.42 | 12.83 | 12.73 | 12.70 | ||||
TCE | 8.47 | 8.98 | 9.72 | 9.63 | 9.47 | ||||
Total | 13.25 | 13.40 | 13.84 | 13.67 | 13.63 | ||||
Additional Data | |||||||||
June 30, 2021 | March 30, 2021 | December 31, | September 30, | June 30, 2020 | |||||
Branches | 11 | 11 | 10 | 10 | 10 | ||||
Employees (Full Time Equivalent) | 149 | 146 | 137 | 135 | 133 |
About South Atlantic Bancshares, Inc.
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company based in Myrtle Beach, South Carolina with
Cautionary Statement Regarding Forward-Looking Statements
This press release contains, among other things, certain statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the effects of the ongoing COVID-19 pandemic, statements with references to a future period or statements preceded by, followed by, or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "outlook" or similar terms or expressions. These statements are based upon the current beliefs and expectations of the Company's management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). These risks, uncertainties and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Any forward-looking statements contained in this press release are made as of the date hereof, and the Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.
Information contained herein, other than information as of December 31, 2020, is unaudited. All financial data should be read in conjunction with the notes to the consolidated financial statements of the Company and the Bank as of and for the fiscal year ended December 31, 2020, as contained in the Company's 2020 Annual Report located on the Company's website.
Available Information
The Company maintains an Internet web site at www.southatlantic.bank/about-us/investor-relations. The Company makes available, free of charge, on its web site the Company's annual meeting materials, annual reports, and quarterly earnings reports. In addition, the OTC Markets Group maintains an Internet site that contains reports, proxy and information statements, and other information regarding the Company (at www.otcmarkets.com/SABK).
The Company routinely posts important information for investors on its web site (under www.southatlantic.bank and, more specifically, under the Investor Relations tab at www.southatlantic.bank/about-us/investor-relations/). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under the OTC Markets Group OTCQX Rules for U.S. Banks. Accordingly, investors should monitor the Company's web site, in addition to following the Company's press releases, OTC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, the Company's web site is not incorporated by reference into, and is not a part of, this press release.
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Contacts: | K. Wayne Wicker, Chairman & CEO, 843-839-4410 |
Dick Burch, EVP & CFO 843-839-4412 |
Member FDIC
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SOURCE South Atlantic Bank