South Atlantic Bancshares Q2 profit rises on loan growth, lower funding costs

Overview

• US community bank's Q2 net income rose 29% yr/yr, driven by loan and deposit growth

• Q2 diluted EPS increased to $0.61 from $0.48 a year earlier

• Net interest income rose 14% yr/yr as net interest margin improved to 3.36%

Outlook

• Company expects loan and deposit pipelines to support continued growth in 2026

• South Atlantic says it is closely monitoring macroeconomic and geopolitical uncertainty

• Company is optimistic regarding the second half of 2026

Result Drivers

• LOAN GROWTH - Co said higher net interest income was driven by organic growth in its loan portfolio

• LOWER FUNDING COSTS - Decline in interest expense was primarily due to lower rates on interest-bearing deposits and borrowings

• DEPOSIT GROWTH - Total deposits grew 5.2% qtr/qtr, exceeding loan growth for the period

Company press release: ID:nPn6lDQ66a

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "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 $26.25, about 3.2% above its July 22 closing price of $25.44

Reuters Recommended Reads

• July 21 - Southern First Bancshares' Q2 profit rises on loan growth and margin expansion

• July 23 - Civista Bancshares Q2 profit rises 30%, interest margin expands

• July 22 - Juniata Valley Q2 profit rises 32% on loan growth, higher interest income

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)