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| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k042315.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 Net
Income Grows 15.4%
in First Quarter 2015
MOULTRIE, GEORGIA, April 22, 2015 -- 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, 2015.
First Quarter Income Highlights
| · | Net income increased 15.4% to $809 thousand, or $0.32 per diluted share, from $701 thousand, or $0.28 per diluted share, in the first quarter of 2014. |
| · | Net interest income improved 7.2% to $3.4 million when compared with last year’s first quarter, due to lower interest expense and higher interest income. The provision for loan loss was reduced more than 50% to $45 thousand due to improved asset quality. |
| · | Noninterest income declined to $1.2 million for the first quarter of 2015, primarily due to a $155 thousand net gain on the sale of securities that benefited the prior-year period. Decreased mortgage banking income was partially offset by higher income from trust, brokerage and insurance services. |
| · | Noninterest expense fell slightly to $3.5 million as lower personnel expenses more than offset higher occupancy, data processing and equipment expenses. |
Balance Sheet Trends and Asset Quality
- Total assets at March 31, 2015 were $399.9 million, up from $394.8 million at March 31, 2014. The change in asset mix reflects higher loans and investment securities and decreased overnight balances.
- Investment securities increased $19.1 million to $118.7 million compared with the first quarter last year. The portfolio was rebalanced in anticipation of an expected rise in short term rates and a flattening of the yield curve. Most of the investment securities growth occurred in the intermediate term.
- Total loans grew $7.3 million to $230.2 million compared with first quarter 2014, contributing to increased revenue in spite of lower yields.
- Deposits grew $3.9 million to $334.8 million compared with the first quarter of 2014 on higher noninterest-bearing and NOW accounts.
- Asset quality remains strong with extraordinarily low levels of non-performing assets.
Capital Management
- The Corporation has a Total Risk-Based Capital Ratio of 15.52% and a Leverage Capital Ratio of 8.96%, both measurably above the federal “well capitalized” standard.
- Return on equity increased to 9.21% compared with 8.71% in the first quarter of 2014.
- Tangible book value per share at March 31, 2015 was $13.85, up 9.5% from $12.65 in first quarter of 2014.
“Our solid execution, community bank business model, and our focus on deepening customer relationships have driven our strong performance. We are growing low-cost core funding and originating high quality loans. We are particularly encouraged by the year-over-year loan growth, which reflects new lending activity across our entire footprint,” commented DeWitt Drew, President and CEO. “We will continue to proactively manage our asset mix to be in a position to drive expansion of our net interest margin when the interest rate environment improves. Additionally, we expect to benefit from what appears to be a strengthening of our local economies, in spite of a slight weakening in the agricultural sector.”
Dividends
In March 2015, the Corporation paid a first quarter cash dividend of $0.10 per common share, an increase from $0.08 per common share paid quarterly in 2014. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 87 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $400 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, Worth County, and Lowndes County. In addition to conventional banking services, the bank provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services which is located in Colquitt County.
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.
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SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 7,712 | $ | 6,783 | $ | 8,279 | ||||||
| Interest-bearing deposits in banks | 21,942 | 5,776 | 39,999 | |||||||||
| Certificates of deposit in other banks | 1,470 | 1,470 | 3,430 | |||||||||
| Investment securities available for sale | 55,313 | 53,838 | 40,654 | |||||||||
| Investment securities held to maturity | 63,397 | 61,588 | 58,974 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,560 | 1,560 | 1,641 | |||||||||
| Loans, less unearned income and discount | 230,160 | 224,400 | 222,828 | |||||||||
| Allowance for loan losses | (3,134 | ) | (3,114 | ) | (3,073 | ) | ||||||
| Net loans | 227,026 | 221,286 | 219,755 | |||||||||
| Premises and equipment | 11,653 | 11,756 | 10,908 | |||||||||
| Foreclosed assets, net | 186 | 274 | 609 | |||||||||
| Intangible assets | 63 | 66 | 78 | |||||||||
| Bank owned life insurance | 5,120 | 5,104 | 4,993 | |||||||||
| Other assets | 4,452 | 4,779 | 5,465 | |||||||||
| Total assets | $ | 399,894 | $ | 374,280 | $ | 394,785 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 28,690 | $ | 22,890 | $ | 21,435 | ||||||
| Money market | 101,571 | 99,918 | 103,211 | |||||||||
| Savings | 29,385 | 28,156 | 30,112 | |||||||||
| Certificates of deposit $100,000 and over | 30,923 | 31,367 | 32,629 | |||||||||
| Other time accounts | 46,814 | 46,300 | 47,998 | |||||||||
| Total interest-bearing deposits | 237,383 | 228,631 | 235,385 | |||||||||
| Noninterest-bearing deposits | 97,400 | 81,343 | 95,480 | |||||||||
| Total deposits | 334,783 | 309,974 | 330,865 | |||||||||
| Other borrowings | 5,133 | 5,133 | 11,800 | |||||||||
| Long-term debt | 22,067 | 22,067 | 17,200 | |||||||||
| Accounts payable and accrued liabilities | 2,574 | 2,771 | 2,613 | |||||||||
| Total liabilities | 364,557 | 339,945 | 362,478 | |||||||||
| 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 | 25,569 | 25,015 | 23,425 | |||||||||
| Accumulated other comprehensive income | (113 | ) | (561 | ) | (999 | ) | ||||||
| Total | 61,451 | 60,449 | 58,421 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 35,337 | 34,335 | 32,307 | |||||||||
| Total liabilities and shareholders' equity | $ | 399,894 | $ | 374,280 | $ | 394,785 | ||||||
| * 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 | |||||||||
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SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (unaudited*)
(Dollars in thousands except per share data)
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2015* | 2014* | |||||||
| Interest income: | ||||||||
| Interest and fees on loans | $ | 3,002 | $ | 2,949 | ||||
| Interest and dividend on securities available for sale | 300 | 220 | ||||||
| Interest on securities held to maturity | 358 | 343 | ||||||
| Dividends on Federal Home Loan Bank stock | 19 | 11 | ||||||
| Interest on deposits in banks | 14 | 21 | ||||||
| Interest on certificates of deposit in other banks | 3 | 9 | ||||||
| Total interest income | 3,696 | 3,553 | ||||||
| Interest expense: | ||||||||
| Interest on deposits | 190 | 195 | ||||||
| Interest on other borrowings | 14 | 103 | ||||||
| Interest on long-term debt | 112 | 103 | ||||||
| Total interest expense | 316 | 401 | ||||||
| Net interest income | 3,380 | 3,152 | ||||||
| Provision for loan losses | 45 | 105 | ||||||
| Net interest income after provision for losses on loans | 3,335 | 3,047 | ||||||
| Noninterest income: | ||||||||
| Service charges on deposit accounts | 292 | 324 | ||||||
| Income from trust services | 70 | 55 | ||||||
| Income from retail brokerage services | 94 | 92 | ||||||
| Income from insurance services | 389 | 361 | ||||||
| Income from mortgage banking services | 78 | 135 | ||||||
| Net gain (loss) on the sale or disposition of assets | 19 | 0 | ||||||
| Net gain on the sale of securities | 0 | 155 | ||||||
| Other income | 219 | 220 | ||||||
| Total noninterest income | 1,161 | 1,342 | ||||||
| Noninterest expense: | ||||||||
| Salary and employee benefits | 2,010 | 2,069 | ||||||
| Occupancy expense | 280 | 252 | ||||||
| Equipment expense | 218 | 217 | ||||||
| Data processing expense | 293 | 273 | ||||||
| Amortization of intangible assets | 4 | 33 | ||||||
| Other operating expense | 682 | 658 | ||||||
| Total noninterest expense | 3,487 | 3,502 | ||||||
| Income before income tax expense | 1,009 | 887 | ||||||
| Provision for income taxes | 200 | 186 | ||||||
| Net income | $ | 809 | $ | 701 | ||||
| Net income per share, basic | $ | 0.32 | $ | 0.28 | ||||
| Net income per share, diluted | $ | 0.32 | $ | 0.28 | ||||
| Dividends paid per share | $ | 0.10 | $ | 0.08 | ||||
| Basic weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
| Diluted weighted average shares outstanding | 2,547,837 | 2,547,837 | ||||||
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SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At March 31 | 2015 | 2014 | ||||||
| Assets | $ | 399,894 | $ | 394,785 | ||||
| Loans, less unearned income & discount | $ | 230,160 | $ | 222,828 | ||||
| Deposits | $ | 334,783 | $ | 330,865 | ||||
| Shareholders' equity | $ | 35,337 | $ | 32,307 | ||||
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Performance Data & Ratios | ||||||||
| Net income | $ | 809 | $ | 701 | ||||
| Earnings per share, basic | $ | 0.32 | $ | 0.28 | ||||
| Earnings per share, diluted | $ | 0.32 | $ | 0.28 | ||||
| Dividends paid per share | $ | 0.10 | $ | 0.08 | ||||
| Return on assets | 0.82 | % | 0.72 | % | ||||
| Return on equity | 9.21 | % | 8.71 | % | ||||
| Net interest margin (tax equivalent) | 3.96 | % | 3.78 | % | ||||
| Dividend payout ratio | 31.50 | % | 29.07 | % | ||||
| Efficiency ratio | 73.57 | % | 74.98 | % | ||||
| Asset Quality Data & Ratios | ||||||||
| Total nonperforming loans | $ | 528 | $ | 104 | ||||
| Total nonperforming assets | $ | 714 | $ | 713 | ||||
| Net loan charge offs | $ | 25 | $ | 109 | ||||
| Reserve for loan losses to total loans | 1.36 | % | 1.38 | % | ||||
| Nonperforming loans/total loans | 0.23 | % | 0.05 | % | ||||
| Nonperforming assets/total assets | 0.18 | % | 0.18 | % | ||||
| Net charge offs / average loans | 0.04 | % | 0.20 | % | ||||
| Capital Ratios | ||||||||
| Average common equity to average total assets | 8.89 | % | 8.30 | % | ||||
| Common equity Tier 1 capital ratio | 14.27 | % | ||||||
| Tier 1 capital ratio | 14.27 | % | 14.05 | % | ||||
| Tier 1 leverage ratio | 8.96 | % | 8.87 | % | ||||
| Total risk based capital ratio | 15.52 | % | 15.30 | % | ||||
| Book value per share | $ | 13.87 | $ | 12.68 | ||||
| Tangible book value per share | $ | 13.85 | $ | 12.65 | ||||
| Quarterly | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
| Averages | 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||
| Assets | $ | 395,220 | $ | 381,239 | $ | 374,509 | $ | 384,745 | $ | 387,889 | ||||||||||
| Loans, less unearned income & discount | $ | 225,665 | $ | 223,906 | $ | 225,934 | $ | 223,348 | $ | 219,971 | ||||||||||
| Deposits | $ | 330,394 | $ | 313,595 | $ | 309,953 | $ | 326,773 | $ | 322,888 | ||||||||||
| Equity | $ | 35,134 | $ | 34,186 | $ | 33,579 | $ | 32,926 | $ | 32,184 | ||||||||||
| Return on assets | 0.82 | % | 0.69 | % | 0.86 | % | 0.77 | % | 0.72 | % | ||||||||||
| Return on equity | 9.21 | % | 7.75 | % | 9.57 | % | 8.95 | % | 8.71 | % | ||||||||||
| Net income | $ | 809 | $ | 662 | $ | 804 | $ | 737 | $ | 701 | ||||||||||
| Net income per share, basic | $ | 0.32 | $ | 0.26 | $ | 0.32 | $ | 0.28 | $ | 0.28 | ||||||||||
| Net income per share, diluted | $ | 0.32 | $ | 0.26 | $ | 0.32 | $ | 0.28 | $ | 0.28 | ||||||||||
| Dividends paid per share | $ | 0.10 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | ||||||||||
| -END- |