MYRTLE BEACH, S.C. - South Atlantic Bancshares, Inc. (OTCQX: SABK), the parent company of South Atlantic Bank, has launched a stock repurchase initiative authorizing the buyback of up to 380,341 shares of its common stock, which represents approximately $4.4 million based on current valuations.
The repurchase program allows the company to acquire shares through open market purchases or privately negotiated transactions, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934 and other applicable legal requirements.
Furthermore, the program may operate under a Rule 10b5-1 trading plan, enabling the company to repurchase shares during periods when it might typically be prevented from doing so due to regulatory restrictions or self-imposed trading blackouts.
The timing and volume of repurchases will be subject to market conditions, stock performance, legal requirements, and other factors. The program is set to take place over the next twelve months, with a scheduled expiration date of April 23, 2025, although the board retains the right to terminate or amend the program at any time.
South Atlantic Bancshares, a bank holding company with roughly $1.7 billion in total assets as of March 31, 2024, operates South Atlantic Bank. The bank offers a range of banking services across the South Carolina coast through its twelve locations. Its services cater to individuals, small businesses, and corporations, encompassing consumer and commercial banking products, mortgage services, and treasury management.
This announcement does not represent an offer to sell securities nor a solicitation of an offer to buy, and any security sales will occur only through written prospectuses and prospectus supplements as required by law.
The information in this article is based on a press release statement from South Atlantic Bancshares, Inc.
InvestingPro Insights
As South Atlantic Bancshares, Inc. (SABK) embarks on its stock repurchase initiative, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, SABK has a market capitalization of approximately $88.09 million and is trading at a P/E ratio of 9.07, which is relatively low when considering its near-term earnings growth potential. The company's P/E ratio for the last twelve months as of Q1 2024 stands at 9.9.
An analysis of SABK's financial metrics reveals that the company does not pay a dividend, which may influence the investment strategies of income-focused shareholders. Still, one of the InvestingPro Tips suggests that SABK's liquid assets exceed its short-term obligations, indicating a solid liquidity position that can support operational needs and strategic initiatives such as the stock repurchase program.
Moreover, the company's profitability is highlighted by its positive operating income margin of 25.17% for the last twelve months as of Q1 2024. This suggests that South Atlantic Bancshares has been effectively managing its expenses relative to its revenue, which stands at $45.69 million for the same period. Investors looking to delve deeper into SABK's financials and stock performance can find additional InvestingPro Tips, with 5 more tips available to help inform their investment decisions. To access these insights, users are encouraged to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/SABK.
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