South Atlantic Bancshares, Inc. Reports Earnings of $0.61 per Diluted Common Share for the Three Months Ended June 30, 2026
Rhea-AI Summary
South Atlantic Bancshares (OTCQX: SABK) reported second quarter 2026 net income of $4.7 million, or $0.61 per diluted share, up from $4.5 million, or $0.58, in the first quarter. For the six months ended June 30, 2026, net income was $9.2 million, or $1.18 per diluted share, compared with $7.0 million, or $0.91, a year earlier.
Total assets reached $2.0 billion, with loans at $1.54 billion and deposits at $1.68 billion. Quarter over quarter, loans grew $61.9 million (4.2%) and deposits $82.2 million (5.2%). Net interest margin improved to 3.36% from 3.24%, while cost of funds (non-GAAP) fell six basis points to 2.19%. Return on average assets was 0.99%, the efficiency ratio improved to 61.31%, and tangible book value per share rose to $18.10, up 17.0% from June 30, 2025.
Positive
- Net income $4.7m in Q2 2026, up 6.2% QoQ
- Diluted EPS $0.61 in Q2 2026, up from $0.58 prior quarter
- Six‑month net income $9.2m, up 31.2% year over year
- Loans $1.54b, up $61.9m (4.2%) QoQ and 7.4% YoY
- Deposits $1.68b, up $82.2m (5.2%) QoQ and $122.5m YTD
- Net interest margin 3.36% in Q2 2026, up 12 bps QoQ
- Cost of funds 2.19% (non‑GAAP), down 6 bps from Q1 2026
- Tangible book value $18.10 per share, up 17.0% year over year
- Return on average assets 0.99% in Q2 2026, above 0.96% in Q1 2026
- Borrowings (excluding sub debt) $109m, down $38m from March 31, 2026
Negative
- Noninterest expense $10.4m in Q2 2026, up $505k (5.1%) year over year
- Salaries and employee benefits $6.1m, up $623k (11.5%) vs Q2 2025
- Provision for credit losses $600k in Q2 2026, double Q1 2026’s $300k
- Investment interest income $4.7m for six months, down from $5.2m year earlier
News Market Reaction – SABK
In the Jul 27 session, SABK declined 1.53%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial Highlights:
- Net income totaled
$4.7 million $278.0 thousand $1.1 million - Pre-provision net revenue (non-GAAP) improved 11.0 percent when compared to the first quarter of 2026
- Total assets increased
$50.3 million $2.0 billion - Total loans grew
$61.9 million $73.6 million - Total deposits grew
$82.2 million $122.5 million - Cost of funds (non-GAAP) decreased six basis points during the second quarter of 2026 to 2.19 percent when compared to the first quarter of 2026
- Net interest margin improved 12 basis points during the second quarter of 2026 to 3.36 percent when compared to the first quarter of 2026
"We are very pleased to announce strong financial results for the second quarter of 2026," remarked K. Wayne Wicker Chairman and CEO of the Company. "We saw strong growth on both sides of the balance sheet, with deposit growth exceeding loan growth during the quarter. Profitability measures were also improved during the quarter, with net income improving by 6.2 percent compared to the linked quarter, pre-provision net revenue improving 11.0 percent, also compared to the linked quarter, and net interest margin expanding by 12 basis points as our cost of funds declined. We continue to benefit from the high level of economic activity occurring across our geographic footprint, and we believe our loan and deposit pipelines are positioned to provide continued growth in 2026. We continue to closely monitor both macroeconomic and geopolitical uncertainty, as well as credit and other risk indicators, which remain benign. We are encouraged by the continued positive momentum of our Company and are optimistic regarding the second half of 2026."
Selected Financial Highlights | ||||
For the Periods / Three Months Ended | ||||
June 30, | March 31, | |||
Balance Sheet (000's) | 2026 | 2026 | Change ($) | Change (%)1 |
Total Assets | $ 1,982,571 | $ 1,932,222 | $ 50,349 | 10.4 % |
Total Loans, Net of Unearned Income | 1,540,002 | 1,478,121 | 61,881 | 16.7 % |
Total Deposits | 1,676,805 | 1,594,643 | 82,162 | 20.6 % |
Borrowings (Excluding Subordinated Debt) | 109,000 | 147,000 | (38,000) | -103.4 % |
Total Equity | 143,131 | 138,437 | 4,694 | 13.6 % |
June 30, | March 31, | |||
Income Statement and Per Share Data | 2026 | 2026 | Change ($) | Change (%) |
Net Income (000's) | $ 4,747 | $ 4,469 | $ 278 | 6.2 % |
Diluted Earnings Per Share | 0.61 | 0.58 | 0.03 | 5.2 % |
Tangible Book Value Per Share* | 18.10 | 17.53 | 0.57 | 3.3 % |
June 30, | March 31, | |||
Selected Financial Ratios | 2026 | 2026 | ||
Return on Average Assets | 0.99 % | 0.96 % | ||
NPAs to Average Assets | 0.01 % | 0.00 % | ||
Efficiency Ratio* | 61.31 % | 62.98 % | ||
Net Interest Margin | 3.36 % | 3.24 % | ||
For the Periods / Six Months Ended | ||||
June 30, | June 30, | |||
Balance Sheet (000's) | 2026 | 2025 | Change ($) | Change (%) |
Total Assets | $ 1,982,571 | $ 1,869,833 | $ 112,738 | 6.0 % |
Total Loans, Net of Unearned Income | 1,540,002 | 1,434,251 | 105,751 | 7.4 % |
Total Deposits | 1,676,805 | 1,615,493 | 61,312 | 3.8 % |
Borrowings (Excluding Subordinated Debt) | 109,000 | 80,000 | 29,000 | 36.3 % |
Total Equity | 143,131 | 121,055 | 22,076 | 18.2 % |
June 30, | June 30, | |||
Income Statement and Per Share Data | 2026 | 2025 | Change ($) | Change (%) |
Net Income (000's) | $ 9,216 | $ 7,023 | $ 2,193 | 31.2 % |
Diluted Earnings Per Share | 1.18 | 0.91 | 0.27 | 29.7 % |
Tangible Book Value Per Share* | 18.10 | 15.47 | 2.63 | 17.0 % |
1 Results annualized. | ||||
Earnings Summary
Net interest income increased
For the six months ended June 30, 2026, net interest income increased
Noninterest income increased
For the six months ended June 30, 2026, noninterest income increased
Financial Performance
Dollars in Thousands Except Per Share Data
Three Months Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
2026 | 2026 | 2025 | 2025 | 2025 | |||||
Interest Income | |||||||||
Loans | $ 22,440 | $ 21,526 | $ 22,152 | $ 22,263 | $ 21,090 | ||||
Investments | 2,355 | 2,362 | 2,231 | 2,506 | 2,422 | ||||
Total Interest Income | $ 24,795 | $ 23,888 | $ 24,383 | $ 24,769 | $ 23,512 | ||||
Interest Expense | 9,573 | 9,588 | 9,597 | 10,202 | 10,139 | ||||
Net Interest Income | $ 15,222 | $ 14,300 | $ 14,786 | $ 14,567 | $ 13,373 | ||||
Provision for Credit Losses | 600 | 300 | 600 | 450 | 625 | ||||
Noninterest Income | 1,760 | 1,696 | 1,673 | 1,795 | 1,756 | ||||
Noninterest Expense | 10,411 | 10,074 | 9,879 | 10,401 | 9,906 | ||||
Income Before Taxes | $ 5,971 | $ 5,622 | $ 5,980 | $ 5,511 | $ 4,598 | ||||
Provision for Income Taxes | 1,224 | 1,153 | 1,217 | 1,128 | 912 | ||||
Net Income | $ 4,747 | $ 4,469 | $ 4,763 | $ 4,383 | $ 3,686 | ||||
Basic Earnings Per Share | $ 0.62 | $ 0.59 | $ 0.63 | $ 0.59 | $ 0.49 | ||||
Diluted Earnings Per Share | $ 0.61 | $ 0.58 | $ 0.62 | $ 0.57 | $ 0.48 | ||||
Weighted Average Shares Outstanding | |||||||||
Basic | 7,597,714 | 7,586,345 | 7,523,195 | 7,469,487 | 7,566,808 | ||||
Diluted | 7,805,093 | 7,768,831 | 7,690,660 | 7,646,539 | 7,723,349 | ||||
Total Shares Outstanding | 7,607,440 | 7,589,514 | 7,575,873 | 7,469,563 | 7,469,063 | ||||
Six Months Ended | ||
June 30, | June 30, | |
2026 | 2025 | |
Interest Income | ||
Loans | $ 43,966 | $ 41,187 |
Investments | 4,717 | 5,237 |
Total Interest Income | $ 48,683 | $ 46,424 |
Interest Expense | 19,161 | 20,227 |
Net Interest Income | $ 29,522 | $ 26,197 |
Provision for Loan Losses | 900 | 1,022 |
Noninterest Income | 3,456 | 3,208 |
Noninterest Expense | 20,485 | 19,561 |
Income Before Taxes | $ 11,593 | $ 8,822 |
Provision for Income Taxes | 2,377 | 1,799 |
Net Income | $ 9,216 | $ 7,023 |
Basic Earnings Per Share | $ 1.21 | $ 0.93 |
Diluted Earnings Per Share | $ 1.18 | $ 0.91 |
Weighed Average Shares Outstanding | ||
Basic | 7,593,041 | 7,573,125 |
Diluted | 7,793,687 | 7,712,374 |
Total Shares Outstanding | 7,607,440 | 7,469,063 |
Noninterest Income/Expense
Dollars in Thousands
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30, | |
2026 | 2026 | 2025 | 2025 | 2025 | |
Noninterest Income | |||||
Service charges and fees | $ 126 | $ 122 | $ 129 | $ 123 | $ 115 |
Secondary mortgage income | 504 | 561 | 496 | 555 | 531 |
Merchant and interchange income | 690 | 589 | 632 | 695 | 697 |
Other income | 440 | 424 | 416 | 422 | 413 |
Total noninterest income | $ 1,760 | $ 1,696 | $ 1,673 | $ 1,795 | $ 1,756 |
Noninterest expense | |||||
Salaries and employee benefits | $ 6,061 | $ 5,979 | $ 5,773 | $ 5,978 | $ 5,438 |
Occupancy | 1,126 | 1,094 | 996 | 1,132 | 1,125 |
Data processing & Software | 843 | 852 | 886 | 1,032 | 858 |
Other expense | 2,381 | 2,149 | 2,224 | 2,259 | 2,485 |
Total noninterest expense | $ 10,411 | $ 10,074 | $ 9,879 | $ 10,401 | $ 9,906 |
Six Months Ended | ||
June 30, | June 30, | |
2026 | 2025 | |
Noninterest Income | ||
Service charges and fees | $ 248 | $ 220 |
Secondary mortgage income | 1,065 | 879 |
Merchant and interchange | 1,279 | 1,257 |
Other income | 864 | 852 |
Total noninterest income | $ 3,456 | $ 3,208 |
Noninterest expense | ||
Salaries and employee benefits | $ 12,040 | $ 10,818 |
Occupancy | 2,220 | 2,214 |
Data processing & Software | 1,695 | 1,766 |
Other expense | 4,530 | 4,763 |
Total noninterest expense | $ 20,485 | $ 19,561 |
Balance Sheet Activity
Total assets increased
Total deposits increased
Shareholders' equity totaled
The Company reported 7,607,440 total shares of common stock outstanding as of June 30, 2026. The increase of 31,567 shares of common stock outstanding during the six months ended June 30, 2026 was due to the exercise during the period of stock options. Tangible book value increased
Balance Sheets
Dollars in Thousands
For the Periods Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30 | |||||
2026 | 2026 | 2025 | 2025 | 2025 | |||||
Cash and Cash Equivalents | $ 63,355 | $ 72,711 | $ 68,975 | $ 90,119 | $ 65,944 | ||||
Investment Securities | 290,076 | 294,760 | 293,140 | 288,486 | 280,473 | ||||
Loans Held for Sale | 6,109 | 3,743 | 7,293 | 1,619 | 3,159 | ||||
Loans | |||||||||
Loans | 1,540,002 | 1,478,121 | 1,466,440 | 1,426,537 | 1,434,251 | ||||
Less Allowance for Credit Losses | (14,610) | (14,010) | (13,715) | (13,155) | (12,706) | ||||
Loans, Net | $ 1,525,392 | $ 1,464,111 | $ 1,452,725 | $ 1,413,382 | $ 1,421,545 | ||||
OREO | |||||||||
Property, net of accumulated depreciation | $ 29,095 | $ 29,273 | $ 29,575 | $ 29,386 | $ 29,413 | ||||
BOLI | 37,095 | 36,806 | 36,522 | 36,234 | 35,949 | ||||
Goodwill | 5,349 | 5,349 | 5,349 | 5,349 | 5,349 | ||||
Core Deposit Intangible | 52 | 67 | 85 | 104 | 126 | ||||
Other Assets | 26,048 | 25,402 | 25,972 | 26,694 | 27,875 | ||||
Total Assets | $ 1,982,571 | $ 1,932,222 | $ 1,919,636 | $ 1,891,373 | $ 1,869,833 | ||||
Deposits | |||||||||
Noninterest bearing | $ 361,777 | $ 325,894 | $ 324,851 | $ 347,469 | $ 362,360 | ||||
Interest bearing | 1,315,028 | 1,268,749 | 1,229,474 | 1,241,213 | 1,253,133 | ||||
Total Deposits | $ 1,676,805 | $ 1,594,643 | $ 1,554,325 | $ 1,588,682 | $ 1,615,493 | ||||
Subordinated Debt | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||
Other Borrowings | 109,000 | 147,000 | 180,000 | 120,000 | 80,000 | ||||
Other Liabilities | 23,635 | 22,142 | 20,744 | 24,094 | 23,285 | ||||
Total Liabilities | $ 1,839,440 | $ 1,793,785 | $ 1,785,069 | $ 1,762,776 | $ 1,748,778 | ||||
Stock with Related Surplus | $ 78,443 | $ 78,095 | $ 77,840 | $ 77,638 | $ 77,566 | ||||
Retained Earnings | 81,895 | 77,148 | 73,428 | 68,666 | 64,284 | ||||
Accumulated Other Comprehensive Loss | (17,207) | (16,806) | (16,701) | (17,707) | (20,795) | ||||
Shareholders' Equity | $ 143,131 | $ 138,437 | $ 134,567 | $ 128,597 | $ 121,055 | ||||
Total Liabilities and Shareholders' Equity | $ 1,982,571 | $ 1,932,222 | $ 1,919,636 | $ 1,891,373 | $ 1,869,833 | ||||
Net Interest Margin
Net interest margin increased 12 basis points to 3.36 percent for the three months ended June 30, 2026 when compared to the three months ended March 31, 2026. The yield on interest earning assets increased by 6 basis points during the second quarter of 2026 to 5.47 percent from 5.41 percent for the first quarter of 2026, coupled with a decrease in cost of funds of 6 basis points during the second quarter of 2026 to 2.19 percent from 2.25 percent for the first quarter of 2026.
Net Interest Margin Analysis
Dollars in Millions
Three Months Ended | |||||||||||||||||||||||
June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||
Average | Related | Yield/ | Average | Related | Yield/ | Average | Related | Yield/ | Average | Related | Yield/ | ||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Interest earning assets | |||||||||||||||||||||||
Loans | $ 1,504 | $ 22.5 | 6.01 % | $ 1,466 | $ 21.6 | 5.99 % | $ 1,447 | $ 22.2 | 6.06 % | $ 1,439 | $ 22.2 | 6.12 % | |||||||||||
Loan fees | 0.0 | (0.1) | -0.03 % | 0.0 | (0.1) | -0.04 % | 0.0 | 0.0 | 0.01 % | 0.0 | 0.1 | 0.02 % | |||||||||||
Loans with fees | $ 1,504 | $ 22.4 | 5.98 % | $ 1,466 | $ 21.5 | 5.95 % | $ 1,447 | $ 22.2 | 6.07 % | $ 1,439 | $ 22.3 | 6.14 % | |||||||||||
Total interest earning assets | $ 1,818 | $ 24.8 | 5.47 % | $ 1,791 | $ 23.9 | 5.41 % | $ 1,752 | $ 24.4 | 5.52 % | $ 1,764 | $ 24.8 | 5.57 % | |||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||
Total interest bearing deposits | $ 1,275 | $ 8.2 | 2.58 % | $ 1,241 | $ 7.9 | 2.61 % | $ 1,216 | $ 8.2 | 2.67 % | $ 1,252 | $ 9.0 | 2.86 % | |||||||||||
Total interest bearing liabilities | $ 1,413 | $ 9.6 | 2.72 % | $ 1,410 | $ 9.6 | 2.76 % | $ 1,347 | $ 9.6 | 2.83 % | $ 1,363 | $ 10.2 | 2.97 % | |||||||||||
Cost of funds* | 2.19 % | 2.25 % | 2.25 % | 2.36 % | |||||||||||||||||||
Net interest margin | 3.36 % | 3.24 % | 3.35 % | 3.28 % | |||||||||||||||||||
Credit Quality
We continue to see excellent credit quality in our markets through June 30, 2026, with one loan classified as non-accrual, and one loan totaling
The Company recorded a provision for credit losses of
The Company continues to closely monitor credit quality in light of the ongoing economic uncertainty caused by, among other factors, the fluctuating market interest rate environment, the lingering inflationary pressures in
Credit Quality Analysis
June 30, | March 31, | December 31, | September 30, | June 30 | |||||
2026 | 2026 | 2025 | 2025 | 2025 | |||||
LLR to Total Loans | 0.95 % | 0.95 % | 0.94 % | 0.92 % | 0.89 % | ||||
NPAs to Avg Assets | 0.01 % | 0.00 % | 0.00 % | 0.00 % | 0.00 % | ||||
NCOs to Total Loans | 0.00 % | 0.00 % | 0.00 % | 0.00 % | 0.00 % | ||||
Past Due > 30 Days to Total Loans | 0.00 % | 0.00 % | 0.00 % | 0.00 % | 0.01 % | ||||
Total NPAs (thousands) | $ 131 | $ - | $ - | $ - | $ - |
Performance Ratios
Three Months Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
2026 | 2026 | 2025 | 2025 | 2025 | |||||
ROAA | 0.99 % | 0.96 % | 1.02 % | 0.93 % | 0.80 % | ||||
ROAE | 13.43 % | 13.12 % | 14.25 % | 13.89 % | 12.28 % | ||||
Efficiency* | 61.31 % | 62.98 % | 60.02 % | 63.57 % | 65.48 % | ||||
NIM | 3.36 % | 3.24 % | 3.35 % | 3.28 % | 3.09 % | ||||
Book Value | $ 18.81 | $ 18.24 | $ 17.76 | $ 17.22 | $ 16.21 | ||||
Tangible Book Value* | $ 18.10 | $ 17.53 | $ 17.05 | $ 16.49 | $ 15.47 | ||||
Regulatory Capital Position
The Bank's capital position remains above the regulatory thresholds required to be deemed "well-capitalized," as shown in the table below, with a total risk-based capital ratio of 12.21 percent and leverage ratio of 9.42 percent as of June 30, 2026. The Company currently operates under the Small Bank Holding Company Policy Statement of the Board of Governors of the Federal Reserve System (the "Federal Reserve") and, therefore, is not currently subject to the Federal Reserve's consolidated capital reporting requirements.
Regulatory Capital Ratios
For the Periods Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Bank Only | 2026 | 2026 | 2025 | 2025 | 2025 | ||||
Tier 1 | 11.26 % | 11.37 % | 11.24 % | 11.30 % | 10.85 % | ||||
Leverage | 9.42 % | 9.27 % | 9.19 % | 8.86 % | 8.74 % | ||||
CET-1 | 11.26 % | 11.37 % | 11.24 % | 11.30 % | 10.85 % | ||||
Total | 12.21 % | 12.32 % | 12.18 % | 12.23 % | 11.74 % | ||||
For the Periods Ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Additional Data | 2026 | 2026 | 2025 | 2025 | 2025 | ||||
Branches | 12 | 12 | 12 | 12 | 12 | ||||
Employees (Full Time Equivalent) | 175 | 173 | 170 | 168 | 172 | ||||
About South Atlantic Bancshares, Inc.
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company based in Myrtle Beach, South Carolina with approximately
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures include tangible book value, tangible book value per share, pre-provision net revenue, cost of funds, and efficiency ratio. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company's financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.
A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.
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 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 good faith 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. Factors that could cause such differences include, but are not limited to: (i) the impact on us or our customers of a decline in general economic conditions, and any regulatory responses thereto; (ii) slower economic growth rates or potential recession in the United States and our market areas; (iii) uncertainty or perceived instability in the banking industry as a whole; (iv) increased competition for deposits among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; (v) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; (vi) the persistent inflationary pressures in the United States and our market areas; (vii) the uncertain impacts of current and future monetary policies of the Federal Reserve; (viii) changes in unemployment rates in the United States and our market areas; (ix) adverse changes in customer spending, borrowing and savings habits; (x) elevated asset prices; (xi) declines in housing and commercial real estate values and prices; (xii) a deterioration of the credit rating for the United States long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and uncertainty regarding United States fiscal debt, deficit and budget matters; (xiii) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xiv) severe weather, natural disasters, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts of terrorism, geopolitical instability, domestic civil unrest or other external events, including as a result of in the policies of the current U.S. presidential administration or Congress; (xv) the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; (xvi) competition and market expansion opportunities; (xvii) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xviii) the receipt of required regulatory approvals; (xix) changes in tax laws; (xx) the risks related to the development, implementation, use and management of emerging technologies, including digital assets, artificial intelligence and machine learning; (xxi) potential costs related to the impacts of climate change; (xxii) current or future litigation, regulatory examinations or other legal and/or regulatory actions; (xxiii) changes in accounting principles and standards, including those related to loan loss recognition under the current expected credit loss, or CECL, methodology; and (xxiv) changes in applicable laws, regulations or policies in the United States, including those affecting our business, operations, pricing, products or services. These forward-looking statements are based on current information and/or management's good faith belief as to future events. 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. Due to these and other possible uncertainties and risks, 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. 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 applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
Information contained herein, other than information as of December 31, 2025, 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, 2025, as contained in the Company's 2025 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, quarterly earnings reports, and other press releases. 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/stock/SABK/overview).
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.
Contacts: | K. Wayne Wicker, Chairman & CEO, 843-839-4410 |
Matthew Hobert, EVP & CFO, 843-839-4945 |
Member FDIC
* Non-GAAP financial measure, please see non-GAAP reconciliation at conclusion of this earnings press release |
Non-GAAP Reconciliation | |||||
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30 | |
2026 | 2026 | 2025 | 2025 | 2025 | |
Common Equity (GAAP) | $ 143,131 | $ 138,437 | $ 134,567 | $ 128,597 | $ 121,055 |
Intangible Assets (GAAP) | 5,401 | 5,416 | 5,434 | 5,453 | 5,475 |
Tangible Common Equity (Book Value) (non-GAAP) | $ 137,730 | $ 133,021 | $ 129,133 | $ 123,144 | $ 115,580 |
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30 | |
2026 | 2026 | 2025 | 2025 | 2025 | |
Tangible Book Value Per Common Share (non-GAAP) | $ 18.10 | $ 17.53 | $ 17.05 | $ 16.49 | $ 15.47 |
Effect to Adjust for Intangible Assets | 0.71 | 0.71 | 0.72 | 0.73 | 0.73 |
Book Value Per Common Share (GAAP) | $ 18.81 | $ 18.24 | $ 17.76 | $ 17.22 | $ 16.21 |
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30 | |
Dollars in Thousands | 2026 | 2026 | 2025 | 2025 | 2025 |
Total Quarterly Interest Expense (GAAP) | $ 9,573 | $ 9,588 | $ 9,597 | $ 10,202 | $ 10,139 |
Days In Quarter | 91 | 90 | 92 | 92 | 91 |
Interest Expense Per Day | 105 | 107 | 104 | 111 | 111 |
Annualization of Daily Interest Expense | 38,397 | 38,885 | 38,075 | 40,475 | 40,667 |
Average Interest Bearing Liabilities (non-GAAP) | 1,413,238 | 1,410,436 | 1,347,334 | 1,362,528 | 1,362,436 |
Average Noninterest Bearing DDA (non-GAAP) | 339,721 | 320,188 | 347,431 | 355,222 | 332,421 |
Total Average Funding Liabilities (non-GAAP) | $ 1,752,959 | $ 1,730,624 | $ 1,694,765 | $ 1,717,750 | $ 1,694,857 |
Cost of Funds (non-GAAP) | 2.19 % | 2.25 % | 2.25 % | 2.36 % | 2.40 % |
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30 | |
2026 | 2026 | 2025 | 2025 | 2025 | |
Total Noninterest Expense (GAAP) | $ 10,411 | $ 10,074 | $ 9,879 | $ 10,401 | $ 9,906 |
Net Interest Income (GAAP) | 15,222 | 14,300 | 14,786 | 14,567 | 13,373 |
Noninterest Income (GAAP) | 1,760 | 1,696 | 1,673 | 1,795 | 1,756 |
Total Net Interest Revenue (non-GAAP) | $ 16,982 | $ 15,996 | $ 16,459 | $ 16,362 | $ 15,129 |
Efficiency Ratio (non-GAAP) | 61.31 % | 62.98 % | 60.02 % | 63.57 % | 65.48 % |
Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30 | |
2026 | 2026 | 2025 | 2025 | 2025 | |
Income Before Taxes (GAAP) | $ 5,971 | $ 5,622 | $ 5,980 | $ 5,511 | $ 4,598 |
Provision for Credit Losses (GAAP) | 600 | 300 | 600 | 450 | 625 |
Pre-Provision Net Revenue (Non-GAAP) | $ 6,571 | $ 5,922 | $ 6,580 | $ 5,961 | $ 5,223 |
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SOURCE South Atlantic Bank