MYRTLE BEACH, S.C., Jan. 22, 2026 /PRNewswire/ -- South Atlantic Bancshares, Inc. ("South Atlantic" or the "Company") (OTCQX: SABK), parent of South Atlantic Bank (the "Bank"), reported consolidated net income of $4.8 million, or $0.62 per diluted common share, for the fourth quarter of 2025, compared to $4.4 million, or $0.57 per diluted common share, for the third quarter of 2025. The Company reported $16.2 million, or $2.10 per diluted common share, for the year ended December 31, 2025, compared to $10.1 million, or $1.31 per diluted common share, for the year ended December 31, 2024.
Fourth Quarter and Year Ended December 31, 2025 Financial Highlights:
-- Net income totaled $16.2 million for the twelve months ended December 31,
2025, a year-over-year increase of $6.1 million, or 60.8 percent, when
compared to net income of $10.1 million for the twelve months ended
December 31, 2024
-- Net income totaled $4.8 million for the fourth quarter of 2025, a
quarter-over-quarter increase of $380.0 thousand, or 8.7 percent, and an
increase of $1.6 million, or 50.3 percent, over the fourth quarter of
2024
-- Return on average assets and return on average equity for the three
months ended December 31, 2025 were 1.02 percent and 14.25 percent,
respectively
-- Total assets increased $130.0 million to $1.9 billion during the year
ended December 31, 2025, an increase of 7.3 percent, from December 31,
2024
-- Total loans grew $127.5 million in the twelve months ended December 31,
2025, an increase of 9.5 percent over December 31, 2024
-- Total deposits grew $93.7 million in the twelve months ended December 31,
2025, an increase of 6.4 percent over December 31, 2024
-- Tangible book value per share (non-GAAP) increased $2.58, or 18.0 percent,
during 2025 to $16.88 as of December 31, 2025
"Our fourth quarter and full year 2025 results underscore the strength of our franchise and our team's disciplined focus on sustainable, profitable growth," said K. Wayne Wicker, the Company's Chairman and CEO. "We delivered record annual net income of $16.2 million in 2025, an increase of over 60 percent from 2024. We continue to see linked quarter earnings expansion, as return on average assets for the fourth quarter of 2025 moved above 1.0 percent. Our performance in 2025 highlights the momentum of our core banking strategy and our commitment to balance sheet management as tangible book value per share increased 18.0 percent during the year" Wicker continued. "As we look ahead, we are encouraged by our positive trajectory, supported by robust credit quality, healthy pipelines, a resilient economy and the continued dedication of our associates across the markets we serve."
Selected Financial Highlights
For the Periods / Three Months Ended
December 31, September 30,
Change
Balance Sheet (000's) 2025 2025 Change ($) (%)(1)
------------------------ ---------------- --------------- -------------- ----------
Total Assets $ 1,916,827 $ 1,891,373 $ 25,454 5.4 %
Total Loans, Net of
Unearned Income 1,466,440 1,426,537 39,903 11.2 %
Total Deposits 1,554,325 1,588,682 (34,357) -8.7 %
Borrowings (Excluding
Subordinated debt) 180,000 120,000 60,000 200.0 %
Total Equity 131,758 128,597 3,161 9.8 %
December 31, September 30,
Income Statement and Per
Share Data 2025 2025 Change ($) Change (%)
------------------------ ---------------- --------------- -------------- ----------
Net Income (000's) $ 4,763 $ 4,383 $ 380 8.7 %
Diluted Earnings Per
Share 0.62 0.57 0.05 8.8 %
Tangible Book Value Per
Share 16.88 16.49 0.39 2.4 %
December 31, September 30,
Selected Financial
Ratios 2025 2025
------------------------ ---------------- ---------------
Return on Average Assets 1.02 % 0.93 %
NPAs to Average Assets 0.00 % 0.00 %
Efficiency Ratio 60.02 % 63.57 %
Net Interest Margin 3.35 % 3.28 %
For the Periods / Twelve Months Ended
December 31, December 31,
Balance Sheet (000's) 2025 2024 Change ($) Change (%)
------------------------ ---------------- --------------- -------------- ----------
Total Assets $ 1,916,827 $ 1,787,150 $ 129,677 7.3 %
Total Loans, Net of
Unearned Income 1,466,440 1,338,904 127,536 9.5 %
Total Deposits 1,554,325 1,460,653 93,672 6.4 %
Borrowings (Excluding
Subordinated Debt) 180,000 160,000 20,000 12.5 %
Total Equity 131,758 113,769 17,989 15.8 %
December 31, December 31,
Income Statement and Per
Share Data 2025 2024 Change ($) Change (%)
------------------------ ---------------- --------------- -------------- ----------
Net Income (000's) $ 16,167 $ 10,055 $ 6,112 60.8 %
Diluted Earnings Per
Share 2.10 1.31 0.79 60.3 %
(1) Results annualized.
Earnings Summary
Net interest income increased $2.7 million, or 22.5 percent, to $14.8 million for the three months ended December 31, 2025 when compared to $12.1 million for the three months ended December 31, 2024. The increase in interest income during the three months ended December 31, 2025 compared to the prior year period was primarily driven by a $2.8 million increase in interest income on the Company's loan portfolio due to increased yields and organic loan growth, partially offset by a reduction in interest income of $1.2 million, or 35.5 percent, on the Company's investment portfolio and cash and cash equivalents held with the Federal Reserve Bank of Richmond (the "FRB") and correspondent banks, which was primarily due to a targeted and strategic sale of investment securities in the second quarter of 2025. The Company recognized a decrease in interest expense of $1.1 million, or 10.6 percent, for the three months ended December 31, 2025 compared to the same period in 2024. The reduction in interest expense during the period was primarily driven by decreases in interest rates on interest bearing deposits, despite deposit growth in interest bearing deposit balances. Also contributing to the decrease in overall interest expense during the fourth quarter of 2025 were decreases in interest rates on short-term borrowings.
For the year ended December 31, 2025, net interest income increased $11.4 million, or 25.9 percent, to $55.5 million when compared to $44.1 million for the year ended December 31, 2024. This increase was driven primarily by an increase in interest income of $8.4 million, or 9.6 percent, from $87.2 million for the twelve months ended December 31, 2024 to $95.6 million for the twelve months ended December 31, 2025, coupled with a decrease in interest expense on deposits and borrowings of $3.0 million, or 7.0 percent, for the twelve months ended December 31, 2025 when compared to the same twelve-month period in 2024.
Noninterest income decreased $217.0 thousand, or 11.5 percent, for the three months ended December 31, 2025 compared to the same three-month period in 2024, primarily driven by a decrease in other income of $393.0 thousand, or 48.6 percent, related to a recognizable capital gain on a bank held investment in the fourth quarter of 2024, partially offset by an increase in secondary mortgage income of $112.0 thousand, or 29.2 percent, as well as an increase in service charges and fees of $30.0 thousand, or 30.3 percent, and an increase in merchant and interchange income of $34.0 thousand, or 5.7 percent, when compared to the same three-month period in 2024. The Company recognized an increase in noninterest expense of $494.0 thousand, or 5.3 percent, for the three months ended December 31, 2025 when compared to the same three-month period in 2024, primarily driven by an increase in salaries and employee benefits of $285.0 thousand, or 5.2 percent, an increase in data processing and software expense of $96.0 thousand, or 12.2 percent, and an increase of $255.0 thousand, or 13.0 percent, in other noninterest expense, partially offset by a decrease in occupancy expense of $142.0 thousand, or 12.5 percent.
(MORE TO FOLLOW) Dow Jones Newswires
January 22, 2026 16:01 ET (21:01 GMT)