South Atlantic Q2 net income rises 10.5% to $3.7 mln

Overview

• South Atlantic Q2 net income rises 10.5% qtr/qtr to $3.7 mln

• Diluted EPS for Q2 increases to $0.48 from $0.43 in Q1

• Net interest income grows 27.5% yr/yr, driven by higher loan yields

• Co repurchased 112,023 shares; reduces short-term borrowings by 38.5%

Outlook

• Company optimistic about second half of 2025 despite uncertainties

• South Atlantic sees strong economic activity in served markets

• Company highlights pristine credit quality and stable interest rates

Result Drivers

• LOAN GROWTH - Co attributes higher net interest income to increased loan yields and organic growth in loan portfolio

• BALANCE SHEET RESTRUCTURING - Targeted sale of securities and reduction of short-term borrowings improved financial position

• DEPOSIT GROWTH - Strong deposit growth supported by stable interest rate environment

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for South Atlantic Bancshares Inc is $18.50, about 13.6% above its July 23 closing price of $15.99

Press Release: ID:nPn8bYHxFa