South Atlantic Bancshares, Inc. announced the issuance of $30.0 million aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 to certain institutional accredited investors and qualified institutional buyers in a private placement. The Company intends to use the net proceeds from this transaction for potential future strategic opportunities and general corporate purposes. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. The Notes will initially bear interest at a fixed annual rate of 3.25%, payable quarterly in arrears to, but excluding, December 31, 2026. From and including December 31, 2026, to, but excluding, the maturity date of December 16, 2031 or earlier redemption date, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the then-current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York (provided, that in the event the benchmark rate is less than zero, the benchmark rate will be deemed to be zero) plus 212 basis points, payable quarterly in arrears. South Atlantic is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after December 16, 2026, and to redeem the Notes at any time in whole, but not in part, upon certain other specified events. Performance Trust Capital Partners, LLC served as placement agent for this offering. Hunton Andrews Kurth LLP served as legal counsel to the Company and Fenimore Kay Harrison LLP served as legal counsel to the placement agent.