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| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k042214.htm |
News Release
INVESTOR AND MEDIA CONTACT:
George R. Kirkland
Executive Vice President and Treasurer
Phone: (229) 873-3830
investorinfo@sgfc.com
For Immediate Release
Southwest Georgia Financial Corporation Reports First Quarter 2014 Results
MOULTRIE, GEORGIA, April 22, 2014 -- 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, 2014.
First Quarter Income Highlights
| · | Net income was $701 thousand in the first quarter of 2014, or $0.28 per diluted share, 24% higher than the $566 thousand, or $0.22 cents per diluted share, in the first quarter of 2013. |
| · | Net interest income grew 3.2%, to $3.2 million, when compared with last year’s first quarter, due to lower deposit costs combined with increase revenues from higher volume of earning assets. |
| · | Non-interest income increased 11.3% to $1.3 million when compared with the first quarter of 2013. A $126 thousand decrease in mortgage banking fees was offset by increases in trust fees, retail brokerage commissions, insurance commissions, and a $154 thousand gain on the sale of the remaining FNMA preferred stock. |
| · | Non-interest expense fell moderately to $3.5 million mainly due to decreased salary and benefits expenses. |
Balance Sheet Trends and Asset Quality
| · | Total assets at March 31, 2014 were $394.8 million, an increase of 7.9% from March 31, 2013. |
| · | Year over year asset growth continues to be driven by increases in non-interest bearing demand accounts, which at March 31, 2014 were $90.5 million, or 24.6% higher than this time last year. |
| · | Deposit growth was employed in a $15.1 million growth in loans and a $6.5 million growth in investment securities. |
| · | Assets quality remains satisfactory with extraordinarily low levels of non-performing assets. |
Capital Management
| · | The Corporation has a Total Risk-Based Capital Ratio of 15.30% and a Leverage Capital Ratio of 8.87%, both measurably above the federal “well capitalized” standard. |
| · | Return on equity increased to 8.71% compared with 7.50% in the first quarter of 2013. |
| · | Tangible book value per share at March 31, 2014, was $12.65, up from $11.80 compared with the quarter end of a year ago. |
DeWitt Drew, President and CEO commented, “In spite of the challenging regulatory environment, we made a great amount of progress as evidenced by our results in the quarter. We are most encouraged that as we have grown our loans we have maintained solid asset quality metrics including extraordinarily low levels of nonperforming assets. We do, however, have heightened concerns about the affect the plethora of new regulations as a result of the Dodd-Frank Act and the Durbin Amendment to that Act will have on our customers, our Corporation and our communities. We are working tirelessly to adapt to this new environment but will not give up on the idea that regulatory relief is necessary.”
Dividends
In March 2014, the Corporation paid a first quarter cash dividend of $0.08 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 86 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation
is a state-chartered bank holding company with approximately
$395 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 Corporation’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 Corporation’s actual results to differ materially from such statements, please refer to the Corporation’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 Corporation 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, 2014 | December 31, 2013 | March 31, 2013 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 8,279 | $ | 7,074 | $ | 6,579 | ||||||
| Interest-bearing deposits in banks | 39,999 | 28,296 | 33,712 | |||||||||
| Federal funds sold | 0 | 0 | 0 | |||||||||
| Certificates of deposit in other banks | 3,430 | 3,430 | 4,165 | |||||||||
| Investment securities available for sale | 40,654 | 36,461 | 31,210 | |||||||||
| Investment securities held to maturity | 58,974 | 59,624 | 61,968 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,641 | 1,721 | 1,406 | |||||||||
| Loans, less unearned income and discount | 222,828 | 218,688 | 207,760 | |||||||||
| Allowance for loan losses | (3,073 | ) | (3,078 | ) | (2,944 | ) | ||||||
| Net loans | 219,755 | 215,610 | 204,816 | |||||||||
| Premises and equipment | 10,908 | 10,336 | 10,177 | |||||||||
| Foreclosed assets, net | 609 | 406 | 1,524 | |||||||||
| Intangible assets | 78 | 111 | 273 | |||||||||
| Bank owned life insurance | 4,993 | 4,980 | 4,775 | |||||||||
| Other assets | 5,465 | 5,846 | 5,445 | |||||||||
| Total assets | $ | 394,785 | $ | 373,895 | $ | 366,050 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 21,435 | $ | 23,088 | $ | 27,716 | ||||||
| Money market | 103,211 | 89,933 | 94,070 | |||||||||
| Savings | 30,112 | 28,792 | 27,587 | |||||||||
| Certificates of deposit $100,000 and over | 32,629 | 36,957 | 34,986 | |||||||||
| Other time accounts | 47,998 | 49,836 | 53,694 | |||||||||
| Total interest-bearing deposits | 235,385 | 228,606 | 238,053 | |||||||||
| Noninterest-bearing deposits | 90,461 | 81,829 | 72,604 | |||||||||
| Total deposits | 325,846 | 310,435 | 310,657 | |||||||||
| Federal funds purchased | 0 | 0 | 0 | |||||||||
| Other borrowings | 11,800 | 11,800 | 2,000 | |||||||||
| Long-term debt | 17,200 | 17,200 | 20,000 | |||||||||
| Accounts payable and accrued liabilities | 7,632 | 3,040 | 3,045 | |||||||||
| Total liabilities | 362,478 | 342,475 | 335,702 | |||||||||
| 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 | 23,424 | 22,927 | 21,128 | |||||||||
| Accumulated other comprehensive income | (998 | ) | (1,388 | ) | (661 | ) | ||||||
| Total | 58,421 | 57,534 | 56,462 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 32,307 | 31,420 | 30,348 | |||||||||
| Total liabilities and shareholders' equity | $ | 394,785 | $ | 373,895 | $ | 366,050 | ||||||
| * 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 | |||||||||
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (unaudited*)
(Dollars in thousands except per share data)
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| Interest income: | 2014* | 2013* | ||||||
| Interest and fees on loans | $ | 2,949 | $ | 2,918 | ||||
| Interest and dividend on securities available for sale | 220 | 162 | ||||||
| Interest on securities held to maturity | 343 | 366 | ||||||
| Dividends on Federal Home Loan Bank stock | 11 | 8 | ||||||
| Interest on deposits in banks | 21 | 23 | ||||||
| Interest on certificates of deposit in other banks | 9 | 11 | ||||||
| Total interest income | 3,553 | 3,488 | ||||||
| Interest expense: | ||||||||
| Interest on deposits | 195 | 245 | ||||||
| Interest on other borrowings | 103 | 14 | ||||||
| Interest on long-term debt | 103 | 173 | ||||||
| Total interest expense | 401 | 432 | ||||||
| Net interest income | 3,152 | 3,056 | ||||||
| Provision for loan losses | 105 | 105 | ||||||
| Net interest income after provision for losses on loans | 3,047 | 2,951 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 324 | 300 | ||||||
| Income from trust services | 55 | 50 | ||||||
| Income from retail brokerage services | 92 | 76 | ||||||
| Income from insurance services | 361 | 359 | ||||||
| Income from mortgage banking services | 135 | 261 | ||||||
| Net gain (loss) on the sale or disposition of assets | 0 | (54 | ) | |||||
| Net gain on the sale of securities | 154 | 0 | ||||||
| Other income | 221 | 214 | ||||||
| Total noninterest income | 1,342 | 1,206 | ||||||
| Noninterest expense: | ||||||||
| Salary and employee benefits | 2,069 | 2,103 | ||||||
| Occupancy expense | 252 | 253 | ||||||
| Equipment expense | 217 | 232 | ||||||
| Data processing expense | 273 | 277 | ||||||
| Amortization of intangible assets | 33 | 54 | ||||||
| Other operating expense | 658 | 630 | ||||||
| Total noninterest expense | 3,502 | 3,549 | ||||||
| Income before income tax expense | 887 | 608 | ||||||
| Provision for income taxes | 186 | 42 | ||||||
| Net income | $ | 701 | $ | 566 | ||||
| Net income per share, basic | $ | 0.28 | $ | 0.22 | ||||
| Net income per share, diluted | $ | 0.28 | $ | 0.22 | ||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | ||||
| Basic weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
| Diluted weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At March 31 | 2014 | 2013 | ||||||
| Assets | $ | 394,785 | $ | 366,050 | ||||
| Loans, less unearned income & discount | $ | 222,828 | $ | 207,760 | ||||
| Deposits | $ | 325,846 | $ | 310,657 | ||||
| Shareholders' equity | $ | 32,307 | $ | 30,348 | ||||
| Three Months Ended March 31 | 2014 | 2013 | ||||||
| Performance Data & Ratios | ||||||||
| Net income | $ | 701 | $ | 566 | ||||
| Earnings per share, basic | $ | 0.28 | $ | 0.22 | ||||
| Earnings per share, diluted | $ | 0.28 | $ | 0.22 | ||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | ||||
| Return on assets | 0.72 | % | 0.62 | % | ||||
| Return on equity | 8.71 | % | 7.50 | % | ||||
| Net interest margin (tax equivalent) | 3.71 | % | 3.94 | % | ||||
| Dividend payout ratio | 29.07 | % | 18.01 | % | ||||
| Efficiency ratio | 74.98 | % | 79.94 | % | ||||
| Asset Quality Data & Ratios | ||||||||
| Total nonperforming loans | $ | 104 | $ | 848 | ||||
| Total nonperforming assets | $ | 713 | $ | 2,547 | ||||
| Net loan charge offs | $ | 109 | $ | 6 | ||||
| Reserve for loan losses to total loans | 1.38 | % | 1.42 | % | ||||
| Nonperforming loans/total loans | 0.05 | % | 0.41 | % | ||||
| Nonperforming assets/total assets | 0.18 | % | 0.70 | % | ||||
| Net charge offs / average loans | 0.20 | % | 0.01 | % | ||||
| Capital Ratios | ||||||||
| Average common equity to average total assets | 8.30 | % | 8.33 | % | ||||
| Tier 1 capital ratio | 14.05 | % | 14.08 | % | ||||
| Tier 1 leverage ratio | 8.87 | % | 8.49 | % | ||||
| Total risk based capital ratio | 15.30 | % | 15.35 | % | ||||
| Book value per share | $ | 12.68 | $ | 11.91 | ||||
| Tangible book value per share | $ | 12.65 | $ | 11.80 | ||||
| Quarterly | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
| Averages | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||
| Assets | $ | 387,889 | $ | 374,542 | $ | 366,206 | $ | 359,767 | $ | 362,225 | ||||||||||
| Loans, less unearned income & discount | $ | 219,971 | $ | 222,723 | $ | 221,767 | $ | 212,274 | $ | 203,106 | ||||||||||
| Deposits | $ | 322,888 | $ | 310,406 | $ | 304,131 | $ | 303,995 | $ | 306,934 | ||||||||||
| Equity | $ | 32,184 | $ | 31,436 | $ | 30,639 | $ | 30,723 | $ | 30,186 | ||||||||||
| Return on assets | 0.72 | % | 1.05 | % | 0.71 | % | 0.64 | % | 0.62 | % | ||||||||||
| Return on equity | 8.71 | % | 12.50 | % | 8.49 | % | 7.47 | % | 7.50 | % | ||||||||||
| Net income | $ | 701 | $ | 982 | $ | 651 | $ | 574 | $ | 566 | ||||||||||
| Net income per share, basic | $ | 0.28 | $ | 0.39 | $ | 0.25 | $ | 0.23 | $ | 0.22 | ||||||||||
| Net income per share, diluted | $ | 0.28 | $ | 0.39 | $ | 0.25 | $ | 0.23 | $ | 0.22 | ||||||||||
| Dividends paid per share | $ | 0.08 | $ | 0.08 | $ | 0.04 | $ | 0.04 | $ | 0.04 | ||||||||||