South Atlantic Bancshares, Inc. · OTC:SABK
South Atlantic Bancshares — Janney Montgomery Scott 2022 Community Bank Conference
17 slides from South Atlantic Bancshares's conference presentation, Sep 19, 2022
Slide 1: Investor Presentation
Investor Presentation Janney Montgomery Scott 2022 Community Bank Conference September 19-20, 2022 TAILOR-MADE FOR THE CAROLINA COAST. OTCQX: SABK CONFIDENTIAL PRESENTATION
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains projections, predictions, expectations, and other statements with respect to South Atlantic Bancshares, Inc. (the “Company”) and its subsidiaries as to beliefs, future events, and/or results that are based on current expectations, estimates, and
Slide 3: South Atlantic Profile
SOUTH ATLANTIC PROFILE Why South Atlantic Bancshares, Inc.? • Community bank of choice in favorable Myrtle Beach, Charleston, and Hilton Head markets – Top 3 community bank(1) deposit market share in all markets served • One of South Carolina’s fastest growing banks, successfully executing on expans
Slide 4: Recent Highlights
RECENT HIGHLIGHTS 2nd Quarter Financial Results and Recent Company Developments BALANCE SHEET UPDATES • Total assets increased to $1.4 billion, a 13.9% increase year-to-date and 22.5% increase year-over year • Total net loans increased to $879.2 million, a 25.1% increase year-to-date(1) and 23.7% in
Slide 5: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM K. Wayne Wicker | Chairman & Chief Executive Officer Mr. K. Wayne Wicker serves as Chairman of the Board and Chief Executive Officer of South Atlantic Bancshares, Inc. and South Atlantic Bank. He is a veteran banker with more than 35 years of experience in the Myrtle Beac
Slide 6: Board of Directors
BOARD OF DIRECTORS K. Wayne Wicker Martha S. Lewis Chairman & Chief Executive Officer, South Atlantic Senior Physical Therapist at Next Step Rehabilitation Bancshares, Inc. Director Since 2011 Director Since 2007 R. Scott Plyler James Carson Benton, Jr. President, South Atlantic Bancshares, Inc. Co-
Slide 7: Franchise Footprint
FRANCHISE FOOTPRINT Tailor-made for the Carolina Coast • 11 full-service branch locations along the coast of South Carolina • 12th full service branch location in Beaufort opening in late 2022; permanent stand-alone location expected late 2023 • 2nd Hilton Head location added in 2021 • Average depos
Slide 8: Strong Market Demographics & Positioning
STRONG MARKET DEMOGRAPHICS & POSITIONING KEY MSAs SERVED DEPOSIT MARKET SHARE SUMMARY Deposits Total Overall Community Market ($M) Branches Rank Bank Rank(2) COUNTY-LEVEL DEPOSIT MARKET SHARE SUMMARY Horry, SC 564 4 8 3 Myrtle Beach, SC Georgetown, SC Georgetown, SC 240 2 4 1 Beaufort, SC 162 3 10 2
Slide 9: Shareholder Value Creation
SHAREHOLDER VALUE CREATION Consistent Growth in Tangible Book Value Since 2017 Capital Raise 3.6% 8.7% TBV / TBV / Share $13.75 Share (Ex. AOCI) $13.15 GROWTH CAGR(1) 2017 – 2022Q2 $13.10 $11.69 $12.17 $10.72 $10.88 $11.04 $9.77 $9.44 $9.67 $9.42 2017 2018 2019 2020 2021 2022Q2 TBV / SHARE TBV / SHA
Slide 10: Financial Profile
FINANCIAL PROFILE For the Twelve Months Ended Quarters Ended In $000s except for per share data 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 Consolidated Balance Sheet Total Assets $518,404 $630,216 $718,402 $946,541 $1,231,953 $1,164,515 $1,231,953
Slide 11: Balance Sheet Trends
BALANCE SHEET TRENDS History of Strong, Disciplined Growth TOTAL ASSETS ($M) TOTAL GROSS LOANS ($M) 24.8% $1,403.7 17.3% CAGR 2017Y – 2Q’22 CAGR 2017Y – 2Q’22 $889.9 $1,232.0 $723.6 $743.6 $946.5 $580.6 $718.4 $532.0 $630.2 $436.8 $518.4 2017Y 2018Y 2019Y 2020Y 2021Y 2Q'22 2017Y 2018Y 2019Y 2020Y 20
Slide 12: Profitability Trends
PROFITABILITY TRENDS RETURN ON AVERAGE ASSETS (%) RETURN ON AVERAGE TANGIBLE COMMON EQUITY (%) 0.98% 0.87% 0.83% 0.70% 11.50% 0.64% 10.19% 0.57% 8.11% 8.48% 5.93% 5.33% 2017Y 2018Y 2019Y 2020Y 2021Y 2022YTD 2017Y 2018Y 2019Y 2020Y 2021Y 2022YTD NET INCOME ($M) EFFICIENCY RATIO (%) $9.4 81.39% (LTM)
Slide 13: Strong Growth in Core Banking Revenue
STRONG GROWTH IN CORE BANKING REVENUE $221 $614 $1,410 $511 $493 $967 $635 $898 $1,014 $804 $414 $435 $1,365 $1,214 $1,354 $1,755 $1,080 $1,248 $11,052 $9,207 $9,570 $8,444 $8,790 $7,913 $7,954 $7,932 $8,022 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 Interest Income Mortgage PPP
Slide 14: Asset Quality Highlights
ASSET QUALITY HIGHLIGHTS Stable Profile, with $0 OREO and $31 Thousand in Total Past Due Loans NONPERFORMING ASSETS ($M, EX. TDRs) NPA’S / ASSETS (%, Ex. TDRs) $1.0 $1.0 0.16% 0.14% $0.6 0.08% $0.4 0.07% $0.4 $- 0.03% 0.00% 2017Y 2018Y 2019Y 2020Y 2021Y 2Q'22 2017Y 2018Y 2019Y 2020Y 2021Y 2Q'22 NPL’
Slide 15: Appendix
APPENDIX South Atlantic Bancshares, Inc. nm OTCQX: SABK
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Tangible common equity, tangible assets, and tangible book value per share are non GAAP financial measures calculated using GAAP amounts Tangible common equity is calculated by excluding the balance of goodwill and the core deposit intangible from the calculation of sharehold
Slide 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION As of or for the year ending December 31, As of or for quarter, Year-to-Date Dollars in thousands, except per share data 2017 2018 2019 2020 2021 6/30/2022 6/30/2022 Average Common Equity $54,220 $72,957 $84,146 $93,553 $101,908 $92,187 $96,092 LESS: Average Intangibles - 4,6
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