1. SABK reported Q1 2025 net income of $3.3 million, showing growth. 2. Total loans increased by 12.5% to $1.38 billion in Q1 2025. 3. Net interest margin improved by 22 basis points to 3.05%. 4. Noninterest income increased by 23.1%, driven by mortgage income. 5. Credit quality remains strong with no loans past due over 30 days.
Improved profitability and strong metrics indicate financial health; historically similar growth periods led to price increases. For instance, prior quarterly growth in net income boosted stock performance significantly.
The significant increase in net income and growth metrics typically lead to an increase in stock price. Given current market conditions, these results are pivotal for potential investment enthusiasm surrounding SABK's stock.
Results are relevant for the upcoming quarters, reflecting immediate action for investors and analysts to react positively. Given recent quarterly earnings releases often correlate with stock price movements, this trend suggests impending investor interest.
/PRNewswire/ -- South Atlantic Bancshares, Inc. ("South Atlantic" or the "Company") (OTCQX: SABK), parent of South Atlantic Bank (the "Bank"), reported consolidated net income of $3.3 million, or $0.43 per diluted common share, for the first quarter of 2025, compared to $3.2 million, or $0.41 per diluted common share for the fourth quarter of 2024, and compared to $2.0 million, or $0.26 per diluted common share, for the first quarter of 2024.
"We are pleased to report a strong quarter of growth, and another quarter of improving profitability," remarked K. Wayne Wicker, Chairman and CEO of the Company. "The strong momentum we closed 2024 with carried into the first quarter of 2025 with improved balance sheet and income statement metrics. Loan and deposit growth remained robust in all our markets, and our pipelines of both loans and deposits appear poised to deliver continued growth in 2025. After reaching a bottom in 2024, we have experienced a sharp recovery in our net interest margin, with our margin for the quarter increasing by 22 basis points. The recovery in our net interest margin has been driven by continued expansion of interest earning asset yields, as well as a reprieve in funding costs as the Federal Open Market Committee of the Federal Reserve has decreased its targeted Federal Funds Rate. Credit quality across our franchise remains pristine. We continue to closely monitor macroeconomic developments and economic and geopolitical uncertainty, but we remain optimistic despite the uncertainty as economic activity and sentiment in the markets we serve remains high."
| For the Periods/Three Months Ended | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Assets | $1,867,705 | $1,787,150 | $80,555 | 18.0% |
| Cash and Cash Equivalents | $96,195 | $61,370 | $34,825 | 227.0% |
| Total Loans, Net of Unearned Income | $1,380,593 | $1,338,904 | $41,689 | 12.5% |
| Total Deposits | $1,567,932 | $1,460,653 | $107,279 | 29.4% |
| Total Equity | $118,384 | $113,769 | $4,615 | 16.2% |
| March 31 | 2025 | 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income (000's) | $3,337 | $3,168 | $169 | 5.3% |
| Diluted Earnings Per Share | 0.43 | 0.41 | 0.02 | 4.9% |
| Tangible Book Value Per Share | 14.91 | 14.30 | 0.61 | 4.3% |
| March 31 | 2025 | 2024 |
|---|---|---|
| Return on Average Assets | 0.74% | 0.71% |
| NPAs to Average Assets | 0.00% | 0.00% |
| Efficiency Ratio | 67.63% | 67.21% |
| Net Interest Margin | 3.05% | 2.83% |
Net interest income increased $2.7 million, or 26.8 percent, for the three months ended March 31, 2025 when compared to the three months ended March 31, 2024, comprised of an increase in interest income of $2.7 million, or 13.6 percent, partially offset by an increase in interest expense of $40.0 thousand, or 0.4 percent, when compared to the first quarter of 2024. The increase in interest income was driven by an increase in loan interest income of $2.9 million, or 16.9 percent, due to increased yields and volume related to the Company's loan portfolio. The increase in interest income on loans was partially offset by a reduction in interest income on investment securities and cash balances of $156.0 thousand, or 5.3 percent. The increase in interest expense for the period ended March 31, 2025 was primarily due to higher interest bearing deposit balances.
Noninterest income increased $272.0, or 23.1 percent, for the three months ended March 31, 2025 compared to the same three month period in 2024, primarily due to an increase in secondary mortgage income of $164.0 thousand, or 89.1 percent, when compared to the same three month period in 2024.
Noninterest expense increased $1.1 million, or 12.5 percent, for the three months ended March 31, 2025, compared to same three month period during 2024. The increase was driven primarily by an increase of $607.0 thousand, or 39.3 percent, in other non-interest expense, primarily related to regulatory compliance expense, audit expense, and FDIC insurance assessments, as well as an increase of $167.0 thousand, or 17.3 percent in data processing and software expense, and an increase of 238.0 thousand, or 4.8 percent, in compensation and employee benefits, primarily due to our expansion in business development and production staff in the Charleston, South Carolina market during the first quarter of 2025.
The increase in net interest income of 26.8 percent, for the three months ended March 31, 2025 and the increase in noninterest income of 23.1 percent, partially offset by the increase in noninterest expense of 12.5 percent for the three months ended March 31, 2025 when compared to the same period in 2024, resulted in improvement to the Company's efficiency ratio by 8.34 percent to 67.63 percent for the quarter ended March 31, 2025.
Dollars in Thousands Except Per Share Data
| Three Months Ended | March 31 | December 31 | September 30 | June 30 | March 31 |
|---|---|---|---|---|---|
| 2025 | $20,097 | $19,349 | $18,510 | $17,637 | $17,194 |
| Investments | $2,815 | $3,457 | $4,419 | $3,656 | $2,971 |
South Atlantic Bancshares, Inc. (OTCQX: SABK) is a registered bank holding company based in Myrtle Beach, South Carolina with approximately $1.9 billion in total assets as of March 31, 2025. The Company's banking subsidiary, South Atlantic Bank, is a full-service financial institution spanning the entire coastal area of South Carolina, and is locally owned, controlled and operated. The Bank operates twelve locations in Myrtle Beach, Carolina Forest, North Myrtle Beach, Murrells Inlet, Pawleys Island, Georgetown, Mount Pleasant, Charleston, Bluffton, Hilton Head Island, Summerville and Beaufort, South Carolina. The Bank specializes in providing personalized community banking services to individuals, small businesses and corporations.
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...
K. Wayne Wicker, Chairman & CEO, 843-839-4410
Matthew Hobert, EVP & CFO 843-839-4945
Member FDIC
SOURCE South Atlantic Bank