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| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k072514.htm |
News Release
INVESTOR AND MEDIA CONTACT:
George R. Kirkland
Executive Vice President and CFO
Phone: (229) 873-3830
investorinfo@sgfc.com
For Immediate Release
Southwest Georgia Financial Corporation Reports Second Quarter 2014 Results
MOULTRIE, GEORGIA, July 25, 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 second quarter ended June 30, 2014.
Second Quarter and Six-Month Income Highlights
| · | Net income was $737 thousand for the second quarter of 2014, or $0.28 per diluted share, 28% higher than the $574 thousand, or $0.23 per diluted share, in the second quarter of 2013. |
| · | For the six months ended June 30, 2014, net income was $1.4 million, or $0.56 per diluted share, a 26% increase from $1.1 million, or $0.45 per diluted share, for the same period in the prior year. |
| · | Net interest income grew 6.1% and 4.7% in the second quarter and year-to-date period, respectively, over the comparable periods of 2013, due to lower deposit costs combined with increased revenue from a higher volume of earning assets. |
| · | Noninterest income increased 8.4% to $1.2 million for the second quarter of 2014, as a result of gains from most of the Corporation’s business units. Year-to-date noninterest income was up 9.9%. |
Balance Sheet Trends and Asset Quality
| · | Total assets at June 30, 2014 were $376 million, an increase of 6.9% from June 30, 2013. |
| · | Total loans were $227 million, an increase of 3.6% over the same period last year. |
| · | Total deposits grew $17.4 million, or 5.8%, to $314 million at June 30, 2014, from the second quarter of 2013. Net deposit growth was primarily in noninterest-bearing transaction accounts. |
| · | Assets quality remains strong with extraordinarily low levels of non-performing assets. |
DeWitt Drew, President and CEO commented, “Our second quarter results were strong and demonstrate the strength of our strategy. Although loan growth has slowed, we remain extremely encouraged with our progress. However, we continue to devote significant resources to compliance requirements and are challenged by that burden.”
Dividends
In June 2014, the Corporation paid a quarterly 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
$376 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) | ||||||||||
| June 30, 2014 | December 31, 2013 | June 30, 2013 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 8,310 | $ | 7,074 | $ | 7,237 | ||||||
| Interest-bearing deposits in banks | 4,910 | 28,296 | 6,308 | |||||||||
| Certificates of deposit in other banks | 3,430 | 3,430 | 4,165 | |||||||||
| Investment securities available for sale | 52,691 | 36,461 | 31,769 | |||||||||
| Investment securities held to maturity | 58,429 | 59,624 | 62,095 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,506 | 1,721 | 1,406 | |||||||||
| Loans, less unearned income and discount | 227,273 | 218,688 | 219,385 | |||||||||
| Allowance for loan losses | (3,127 | ) | (3,078 | ) | (3,049 | ) | ||||||
| Net loans | 224,146 | 215,610 | 216,336 | |||||||||
| Premises and equipment | 11,702 | 10,336 | 10,176 | |||||||||
| Foreclosed assets, net | 438 | 406 | 1,069 | |||||||||
| Intangible assets | 74 | 111 | 219 | |||||||||
| Bank owned life insurance | 5,030 | 4,980 | 4,890 | |||||||||
| Other assets | 4,912 | 5,846 | 5,700 | |||||||||
| Total assets | $ | 375,578 | $ | 373,895 | $ | 351,370 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 24,284 | $ | 23,088 | $ | 20,947 | ||||||
| Money market | 96,527 | 89,934 | 87,320 | |||||||||
| Savings | 30,225 | 28,792 | 29,180 | |||||||||
| Certificates of deposit $100,000 and over | 29,892 | 36,956 | 32,378 | |||||||||
| Other time accounts | 46,642 | 49,836 | 52,202 | |||||||||
| Total interest-bearing deposits | 227,570 | 228,606 | 222,027 | |||||||||
| Noninterest-bearing deposits | 86,248 | 81,829 | 74,368 | |||||||||
| Total deposits | 313,818 | 310,435 | 296,395 | |||||||||
| Other borrowings | 8,800 | 11,800 | 12,000 | |||||||||
| Long-term debt | 17,200 | 17,200 | 10,000 | |||||||||
| Accounts payable and accrued liabilities | 2,602 | 3,040 | 2,772 | |||||||||
| Total liabilities | 342,420 | 342,475 | 321,167 | |||||||||
| 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 | 23,957 | 22,927 | 21,600 | |||||||||
| Accumulated other comprehensive income | (680 | ) | (1,388 | ) | (1,278 | ) | ||||||
| Total | 59,272 | 57,534 | 56,317 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 33,158 | 31,420 | 30,203 | |||||||||
| Total liabilities and shareholders' equity | $ | 375,578 | $ | 373,895 | $ | 351,370 | ||||||
| * 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 | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| Interest income: | 2014* | 2013* | 2014* | 2013* | ||||||||||||
| Interest and fees on loans | $ | 3,058 | $ | 3,034 | $ | 6,007 | $ | 5,953 | ||||||||
| Interest and dividend on securities available for sale | 292 | 170 | 512 | 332 | ||||||||||||
| Interest on securities held to maturity | 341 | 365 | 683 | 731 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | 13 | 8 | 25 | 16 | ||||||||||||
| Interest on deposits in banks | 13 | 14 | 34 | 37 | ||||||||||||
| Interest on certificates of deposit in other banks | 9 | 11 | 19 | 21 | ||||||||||||
| Total interest income | 3,726 | 3,602 | 7,280 | 7,090 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 192 | 216 | 388 | 460 | ||||||||||||
| Interest on other borrowings | 38 | 80 | 140 | 94 | ||||||||||||
| Interest on long-term debt | 104 | 109 | 207 | 283 | ||||||||||||
| Total interest expense | 334 | 405 | 735 | 837 | ||||||||||||
| Net interest income | 3,392 | 3,197 | 6,545 | 6,253 | ||||||||||||
| Provision for loan losses | 75 | 105 | 180 | 210 | ||||||||||||
| Net interest income after provision for losses on loans | 3,317 | 3,091 | 6,365 | 6,043 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 331 | 287 | 656 | 586 | ||||||||||||
| Income from trust services | 58 | 53 | 113 | 104 | ||||||||||||
| Income from retail brokerage services | 99 | 91 | 191 | 167 | ||||||||||||
| Income from insurance services | 347 | 312 | 708 | 671 | ||||||||||||
| Income from mortgage banking services | 211 | 237 | 346 | 498 | ||||||||||||
| Net gain (loss) on the sale or disposition of assets | 20 | (3 | ) | 20 | (57 | ) | ||||||||||
| Net gain on the sale of securities | 0 | 0 | 154 | 0 | ||||||||||||
| Other income | 180 | 172 | 400 | 386 | ||||||||||||
| Total noninterest income | 1,246 | 1,149 | 2,588 | 2,355 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salary and employee benefits | 2,071 | 2,074 | 4,139 | 4,177 | ||||||||||||
| Occupancy expense | 257 | 253 | 510 | 506 | ||||||||||||
| Equipment expense | 215 | 229 | 432 | 461 | ||||||||||||
| Data processing expense | 284 | 272 | 558 | 548 | ||||||||||||
| Amortization of intangible assets | 4 | 54 | 37 | 108 | ||||||||||||
| Other operating expense | 799 | 746 | 1,457 | 1,377 | ||||||||||||
| Total noninterest expense | 3,630 | 3,628 | 7,133 | 7,177 | ||||||||||||
| Income before income tax expense | 933 | 612 | 1,820 | 1,221 | ||||||||||||
| Provision for income taxes | 196 | 39 | 382 | 81 | ||||||||||||
| Net income | $ | 737 | $ | 574 | $ | 1,438 | $ | 1,140 | ||||||||
| Net income per share, basic | $ | 0.28 | $ | 0.23 | $ | 0.56 | $ | 0.45 | ||||||||
| Net income per share, diluted | $ | 0.28 | $ | 0.23 | $ | 0.56 | $ | 0.45 | ||||||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | $ | 0.16 | $ | 0.08 | ||||||||
| Basic weighted average shares outstanding | 2,547,837 | 2,547,837 | 2,547,837 | 2,547,837 | ||||||||||||
| Diluted weighted average shares outstanding | 2,547,837 | 2,547,837 | 2,547,837 | 2,547,837 | ||||||||||||
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At June 30 | 2014 | 2013 | |||||
| Assets | $375,578 | $351,370 | |||||
| Loans, less unearned income & discount | $227,273 | $219,385 | |||||
| Deposits | $313,818 | $296,395 | |||||
| Shareholders' equity | $ 33,158 | $ 30,203 | |||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2014 | 2013 | 2014 | 2013 | ||||
| Performance Data & Ratios | |||||||
| Net income | $ 737 | $ 574 | $ 1,438 | $ 1,140 | |||
| Earnings per share, basic | $ 0.28 | $ 0.23 | $ 0.56 | $ 0.45 | |||
| Earnings per share, diluted | $ 0.28 | $ 0.23 | $ 0.56 | $ 0.45 | |||
| Dividends paid per share | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.08 | |||
| Return on assets | 0.77% | 0.64% | 0.74% | 0.63% | |||
| Return on equity | 8.95% | 7.47% | 8.83% | 7.43% | |||
| Net interest margin (tax equivalent) | 4.02% | 4.10% | 3.90% | 4.03% | |||
| Dividend payout ratio | 27.66% | 17.76% | 14.17% | 17.88% | |||
| Efficiency ratio | 75.42% | 80.12% | 75.20% | 80.03% | |||
| Asset Quality Data & Ratios | |||||||
| Total nonperforming loans | $ 104 | $ 749 | $ 104 | $ 749 | |||
| Total nonperforming assets | $ 542 | $ 1,993 | $ 542 | $ 1,993 | |||
| Net loan charge offs | $ 22 | $ 0 | $ 131 | $ 6 | |||
| Reserve for loan losses to total loans | 1.38% | 1.39% | 1.38% | 1.39% | |||
| Nonperforming loans/total loans | 0.05% | 0.34% | 0.05% | 0.34% | |||
| Nonperforming assets/total assets | 0.14% | 0.57% | 0.14% | 0.57% | |||
| Net charge offs / average loans | 0.04% | 0.00% | 0.24% | 0.01% | |||
| Capital Ratios | |||||||
| Average common equity to average total assets | 8.56% | 8.54% | 8.43% | 8.44% | |||
| Tier 1 capital ratio | 13.87% | 13.44% | 13.87% | 13.44% | |||
| Tier 1 leverage ratio | 8.78% | 8.69% | 8.78% | 8.69% | |||
| Total risk based capital ratio | 15.12% | 14.73% | 15.12% | 14.73% | |||
| Book value per share | $ 13.01 | $ 11.85 | $ 13.01 | $ 11.85 | |||
| Tangible book value per share | $ 12.98 | $ 11.77 | $ 12.98 | $ 11.77 | |||
| Quarterly | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | ||||
| Averages | 2014 | 2014 | 2013 | 2013 | 2013 | ||||
| Assets | $ 384,745 | $ 387,889 | $ 374,542 | $ 366,206 | $ 359,767 | ||||
| Loans, less unearned income & discount | $ 223,348 | $ 219,971 | $ 222,723 | $ 221,767 | $ 212,274 | ||||
| Deposits | $ 326,773 | $ 322,888 | $ 310,406 | $ 304,131 | $ 303,995 | ||||
| Equity | $ 32,926 | $ 32,184 | $ 31,436 | $ 30,639 | $ 30,723 | ||||
| Return on assets | 0.77% | 0.72% | 1.05% | 0.71% | 0.64% | ||||
| Return on equity | 8.95% | 8.71% | 12.50% | 8.49% | 7.47% | ||||
| Net income | $ 737 | $ 701 | $ 982 | $ 651 | $ 574 | ||||
| Net income per share, basic | $ 0.28 | $ 0.28 | $ 0.39 | $ 0.25 | $ 0.23 | ||||
| Net income per share, diluted | $ 0.28 | $ 0.28 | $ 0.39 | $ 0.25 | $ 0.23 | ||||
| Dividends paid per share | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.04 |