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| 8-K - 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k042313.htm |
News Release
INVESTOR AND MEDIA CONTACT:
George R. Kirkland
Senior Vice President and Treasurer
Phone: (229) 873-3830
investorinfo@sgfc.com
For Immediate Release
Southwest Georgia Financial Corporation Reports First Quarter Results
MOULTRIE, GEORGIA, April 23, 2013 -- Southwest Georgia Financial Corporation (the “Corporation”) (NYSE MKT: SGB), a full-service community bank holding company, today reported its results of operations for the first quarter ended March 31, 2013.
First Quarter Income Highlights
| · | Net income was $566 thousand in the 2013 first quarter, or $0.22 per diluted share, compared with $571 thousand, or $0.22 per diluted share in the first quarter of 2012. |
| · | Net interest income grew 8.1% to $3.1 million compared with the first quarter last year due primarily to increased interest and fee income on loans. The Corporation has been able to maintain net interest income in spite of lower margins. |
| · | Noninterest income decreased $263 thousand to $1.2 million for the first quarter of 2013 driven by a $306 thousand decrease in income from our commercial mortgage banking subsidiary, Empire Financial Services. |
| · | Noninterest expense grew 2.2% to $3.5 million due primarily to increased employee payroll tax and benefit expenses. |
Balance Sheet Trends and Asset Quality
| · | Total assets at March 31, 2013 were $366.1 million, an increase of 14.8%, or $47.3 million, from March 31, 2012. |
| · | Year-over-year asset growth was driven by increases in noninterest-bearing demand deposits, which increased $15.0 million, or 26.1%, as well as low interest-bearing transaction accounts and money market deposit accounts, which increased $35.5 million, or 41.1%. |
| · | Growth in funding of $48.9 million was employed in a $23.5 million increase in loans, a $12.1 million increase in interest-bearing balances in banks, and a $13.2 million increase in investment securities and certificates of deposit in other banks. |
DeWitt Drew, President and CEO commented, “We are encouraged by our extraordinary growth in low cost funding and in our earnings level, even with decreased mortgage banking income. We expect that commercial mortgage servicing income will be low in 2013 due to Empire’s loan servicing portfolio decreasing from $700 million at its peak to less than $200 million. We also know that nearly one-third of our deposit growth is in public money that will not be permanent.”
Dividends
In March 2013, the Corporation paid a first quarter cash dividend of $0.04 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 85 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $366 million in assets headquartered in Moultrie, Georgia. Its primary subsidiary, Southwest Georgia Bank, offers comprehensive financial services to consumer, business, and governmental customers. The current banking facilities include the main office located in Colquitt County, and branch offices located in Baker County, Thomas County, Worth County, and Lowndes County. In addition to conventional banking services, the bank provides investment planning and management, trust management, mortgage banking, and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services which is located in Colquitt County. Mortgage banking for primarily commercial properties is provided by Empire Financial Services, Inc., a mortgage banking services firm.
More information on Southwest Georgia Financial Corp. and Southwest Georgia Bank can be found at its website: www.sgfc.com.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements, as defined by federal securities laws, including statements about the Company’s financial outlook. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. For a discussion of some risks and other factors that could cause the Company’s actual results to differ materially from such statements, please refer to the Company’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q under the sections entitled “Forward-Looking Statements” and “Risk Factors”. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.
Financial tables follow.
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2013 | 2012 | 2012 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 6,579 | $ | 8,646 | $ | 7,458 | ||||||
| Interest-bearing deposits in banks | 33,712 | 27,935 | 21,584 | |||||||||
| Certificates of deposit in other banks | 4,165 | 3,920 | 980 | |||||||||
| Investment securities available for sale | 31,210 | 21,672 | 26,581 | |||||||||
| Investment securities held to maturity | 61,968 | 59,863 | 56,173 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,406 | 1,448 | 1,789 | |||||||||
| Loans, less unearned income and discount | 207,760 | 204,137 | 184,307 | |||||||||
| Allowance for loan losses | (2,944 | ) | (2,845 | ) | (3,244 | ) | ||||||
| Net loans | 204,816 | 201,292 | 181,063 | |||||||||
| Premises and equipment | 10,177 | 10,149 | 10,620 | |||||||||
| Foreclosed assets, net | 1,524 | 1,690 | 2,327 | |||||||||
| Intangible assets | 273 | 327 | 491 | |||||||||
| Bank owned life insurance | 4,775 | 4,767 | 4,635 | |||||||||
| Other assets | 5,445 | 5,472 | 5,050 | |||||||||
| Total assets | $ | 366,050 | $ | 347,181 | $ | 318,751 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 27,716 | $ | 28,881 | $ | 31,728 | ||||||
| Money market | 94,070 | 77,133 | 54,597 | |||||||||
| Savings | 27,587 | 25,988 | 26,138 | |||||||||
| Certificates of deposit $100,000 and over | 34,986 | 36,591 | 32,813 | |||||||||
| Other time accounts | 53,694 | 55,098 | 58,936 | |||||||||
| Total interest-bearing deposits | 238,053 | 223,691 | 204,212 | |||||||||
| Noninterest-bearing deposits | 72,604 | 68,071 | 57,566 | |||||||||
| Total deposits | 310,657 | 291,762 | 261,778 | |||||||||
| Other borrowings | 2,000 | 2,000 | 2,000 | |||||||||
| Long-term debt | 20,000 | 20,000 | 22,000 | |||||||||
| Accounts payable and accrued liabilities | 3,045 | 3,544 | 3,992 | |||||||||
| Total liabilities | 335,702 | 317,306 | 289,770 | |||||||||
| Shareholders' equity: | ||||||||||||
| Common stock - par value $1; 5,000,000 shares | ||||||||||||
| authorized; 4,293,835 shares issued (*) | 4,294 | 4,294 | 4,294 | |||||||||
| Additional paid-in capital | 31,701 | 31,701 | 31,701 | |||||||||
| Retained earnings | 21,128 | 20,664 | 19,602 | |||||||||
| Accumulated other comprehensive income | (661 | ) | (670 | ) | (502 | ) | ||||||
| Total | 56,462 | 55,989 | 55,095 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 30,348 | 29,875 | 28,981 | |||||||||
| Total liabilities and shareholders' equity | $ | 366,050 | $ | 347,181 | $ | 318,751 | ||||||
| * Common stock - shares outstanding | 2,547,837 | 2,547,837 | 2,547,837 | |||||||||
| ** Treasury stock - shares | 1,745,998 | 1,745,998 | 1,745,998 | |||||||||
| -MORE- |
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (unaudited*)
(Dollars in thousands except per share data)
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2013* | 2012* | |||||||
| Interest income: | ||||||||
| Interest and fees on loans | $ | 2,918 | $ | 2,701 | ||||
| Interest and dividend on securities available for sale | 162 | 232 | ||||||
| Interest on securities held to maturity | 366 | 359 | ||||||
| Dividends on Federal Home Loan Bank stock | 8 | 6 | ||||||
| Interest on deposits in banks | 23 | 18 | ||||||
| Interest on certificates of deposit in other banks | 11 | 4 | ||||||
| Total interest income | 3,488 | 3,320 | ||||||
| Interest expense: | ||||||||
| Interest on deposits | 245 | 292 | ||||||
| Interest on other borrowings | 14 | 11 | ||||||
| Interest on long-term debt | 173 | 189 | ||||||
| Total interest expense | 432 | 492 | ||||||
| Net interest income | 3,056 | 2,828 | ||||||
| Provision for loan losses | 105 | 105 | ||||||
| Net interest income after provision for losses on loans | 2,951 | 2,723 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 300 | 299 | ||||||
| Income from trust services | 50 | 51 | ||||||
| Income from retail brokerage services | 76 | 95 | ||||||
| Income from insurance services | 359 | 375 | ||||||
| Income from mortgage banking services | 261 | 567 | ||||||
| Provision for foreclosed property losses | 0 | (75 | ) | |||||
| Net gain (loss) on the sale or disposition of assets | (54 | ) | (56 | ) | ||||
| Other income | 214 | 213 | ||||||
| Total noninterest income | 1,206 | 1,469 | ||||||
| Noninterest expense: | ||||||||
| Salary and employee benefits | 2,103 | 2,022 | ||||||
| Occupancy expense | 253 | 234 | ||||||
| Equipment expense | 232 | 223 | ||||||
| Data processing expense | 277 | 278 | ||||||
| Amortization of intangible assets | 54 | 56 | ||||||
| Other operating expense | 630 | 659 | ||||||
| Total noninterest expense | 3,549 | 3,472 | ||||||
| Income before income tax expense | 608 | 720 | ||||||
| Provision for income taxes | 42 | 149 | ||||||
| Net income | $ | 566 | $ | 571 | ||||
| Net income per share, basic | $ | 0.22 | $ | 0.22 | ||||
| Net income per share, diluted | $ | 0.22 | $ | 0.22 | ||||
| Dividends paid per share | $ | 0.04 | $ | 0.04 | ||||
| Basic weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
| Diluted weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
| -MORE- |
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At March 31 | 2013 | 2012 | ||||||
| Assets | $ | 366,050 | $ | 318,751 | ||||
| Loans, less unearned income & discount | $ | 207,760 | $ | 184,307 | ||||
| Deposits | $ | 310,657 | $ | 261,778 | ||||
| Shareholders' equity | $ | 30,348 | $ | 28,981 | ||||
| Three Months Ended March 31, | ||||||||
| 2013 | 2012 | |||||||
| Performance Data & Ratios | ||||||||
| Net income | $ | 566 | $ | 571 | ||||
| Earnings per share, basic | $ | 0.22 | $ | 0.22 | ||||
| Earnings per share, diluted | $ | 0.22 | $ | 0.22 | ||||
| Dividends paid per share | $ | 0.04 | $ | 0.04 | ||||
| Return on assets | 0.62 | % | 0.71 | % | ||||
| Return on equity | 7.50 | % | 7.88 | % | ||||
| Net interest margin (tax equivalent) | 3.94 | % | 4.10 | % | ||||
| Dividend payout ratio | 18.01 | % | 17.84 | % | ||||
| Efficiency ratio | 79.94 | % | 78.10 | % | ||||
| Asset Quality Data & Ratios | ||||||||
| Total nonperforming loans | $ | 848 | $ | 651 | ||||
| Total nonperforming assets | $ | 2,547 | $ | 3,088 | ||||
| Net loan charge offs | $ | 6 | $ | (39 | ) | |||
| Reserve for loan losses to total loans | 1.42 | % | 1.76 | % | ||||
| Nonperforming loans/total loans | 0.41 | % | 0.35 | % | ||||
| Nonperforming assets/total assets | 0.70 | % | 0.97 | % | ||||
| Net charge offs / average loans | 0.01 | % | (0.09 | )% | ||||
| Capital Ratios | ||||||||
| Average common equity to average total assets | 8.33 | % | 8.98 | % | ||||
| Tier 1 capital ratio | 14.08 | % | 15.32 | % | ||||
| Tier 1 leverage ratio | 8.49 | % | 8.98 | % | ||||
| Total risk based capital ratio | 15.35 | % | 16.57 | % | ||||
| Book value per share | $ | 11.91 | $ | 11.37 | ||||
| Tangible book value per share | $ | 11.80 | $ | 11.18 | ||||
| Quarterly | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
| Averages | 2013 | 2012 | 2012 | 2012 | 2012 | |||||||||||||||
| Assets | $ | 362,225 | $ | 341,418 | $ | 319,266 | $ | 319,525 | $ | 322,726 | ||||||||||
| Loans, less unearned income & discount | $ | 203,106 | $ | 203,871 | $ | 199,145 | $ | 190,142 | $ | 180,796 | ||||||||||
| Deposits | $ | 306,934 | $ | 285,965 | $ | 263,747 | $ | 262,095 | $ | 265,993 | ||||||||||
| Equity | $ | 30,186 | $ | 29,624 | $ | 29,194 | $ | 29,343 | $ | 28,984 | ||||||||||
| Return on assets | 0.62 | % | 0.75 | % | 0.53 | % | 0.38 | % | 0.71 | % | ||||||||||
| Return on equity | 7.50 | % | 8.68 | % | 5.76 | % | 4.16 | % | 7.88 | % | ||||||||||
| Net income | $ | 566 | $ | 643 | $ | 421 | $ | 305 | $ | 571 | ||||||||||
| Net income per share, basic | $ | 0.22 | $ | 0.25 | $ | 0.17 | $ | 0.12 | $ | 0.22 | ||||||||||
| Net income per share, diluted | $ | 0.22 | $ | 0.25 | $ | 0.17 | $ | 0.12 | $ | 0.22 | ||||||||||
| Dividends paid per share | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.04 | ||||||||||