South Atlantic Bancshares Q3 net income jumps

Overview

• US community bank's Q3 net income and EPS rose both quarter-over-quarter and year-over-year

• Net interest income for Q3 increased, driven by organic loan growth and reduced interest expense

• Company reported strong credit quality and capital ratios above regulatory thresholds

Outlook

• Company did not provide specific financial guidance for the current or future periods in the press release

Result Drivers

• LOAN GROWTH - Co said higher interest income from organic loan growth was primary driver of net interest income increase

• LOWER INTEREST EXPENSE - Co said reduced interest expense, mainly from lower rates on interest-bearing deposits and short-term borrowings, contributed to results

• HIGHER OPERATING COSTS - Co said noninterest expense rose, mainly due to increased salaries and employee benefits

Company press release:

Key Details

Analyst Coverage

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

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

• Wall Street's median 12-month price target for South Atlantic Bancshares Inc is $28.00, about 15.6% above its October 21 closing price of $24.22

Reuters Recommended Reads

• Oct 21 - Parke Bancorp's Q3 net income rises, helped by loan growth

• Oct 21 - First Bancorp Q3 net income rises 17.5%

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

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(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.)