South Atlantic Bancshares, Inc. Reports Earnings of $2.10 per Diluted Common Share for the Year Ended December 31, 2025

Core Viewpoint - South Atlantic Bancshares, Inc. reported strong financial performance for the fourth quarter and full year of 2025, with record net income and significant growth in key financial metrics, indicating a robust banking strategy and effective balance sheet management [1][3]. Financial Highlights - The company achieved consolidated net income of $4.8 million, or $0.62 per diluted common share, for Q4 2025, up from $4.4 million, or $0.57 per diluted common share, in Q3 2025 [1][5]. - For the year ended December 31, 2025, net income totaled $16.2 million, a 60.8% increase from $10.1 million in 2024 [5][6]. - Return on average assets for Q4 2025 was 1.02%, while return on average equity was 14.25% [5][25]. Balance Sheet Performance - Total assets increased by $130 million to $1.9 billion, a 7.3% rise from the previous year [13][6]. - Total loans grew by $127.5 million, or 9.5%, and total deposits increased by $93.7 million, or 6.4%, year-over-year [6][14]. - Tangible book value per share rose by $2.58, or 18.0%, to $16.88 as of December 31, 2025 [16][15]. Income and Expense Analysis - Net interest income for Q4 2025 increased by $2.7 million, or 22.5%, compared to Q4 2024, driven by higher interest income from loans [7][8]. - Noninterest income decreased by $217,000, or 11.5%, in Q4 2025 compared to Q4 2024, primarily due to a decline in other income [9][10]. - Noninterest expense increased by $494,000, or 5.3%, in Q4 2025 compared to the same period in 2024, mainly due to higher salaries and employee benefits [9][10]. Credit Quality - The company reported no loans classified as non-accrual and no loans past due greater than 30 days as of December 31, 2025, indicating strong credit quality [21][22]. - A provision for credit losses of $600,000 was recorded in Q4 2025, compared to $450,000 in Q3 2025 [21][22]. Regulatory Capital Position - The bank's capital position remains strong, with a total risk-based capital ratio of 12.18% and a leverage ratio of 9.19% as of December 31, 2025, exceeding regulatory requirements [26].