Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k102417.htm |
News Release
CONTACTS:
| Company: | Investor Relations: |
| Karen T. Boyd | Deborah K. Pawlowski |
| Senior Vice President and Treasurer | Kei Advisors LLC |
| Phone: (229) 873-3837 | Phone: (716) 843-3908 |
| investorinfo@sgfc.com | dpawlowski@keiadvisors.com |
For Immediate Release
Southwest Georgia Financial Corporation Reports 2017 Third Quarter Results
MOULTRIE, GEORGIA, October 24, 2017 -- Southwest Georgia Financial Corporation (the “Company”) (NYSE American: SGB), a full-service community bank holding company, today reported results of operations for the third quarter and nine months ended September 30, 2017. Comparisons are to prior-year periods unless otherwise noted.
“On a year-to-date basis we continue to trend higher than last year’s record earnings per share pace, despite the significant expenses incurred to migrate to our new core processing provider and our continued expansion into the Tifton market,” commented DeWitt Drew, President and CEO. “We will continue to invest in technology and systems to better serve our customer base and are looking forward to completing construction on our Tifton branch in early 2018. While overall credit quality is still solid, that is an area we will continue to focus on as we grow in both our legacy and new markets.”
Income Highlights
| · | For the nine months ended September 30, 2017, net income was up 2% to $3.1 million, or $1.21 per diluted share. Average loans grew $35.8 million, driving strong growth in net interest income of $1.0 million, or 9%. However, increased overhead expenses mostly offset this growth due in large part to higher professional fees, migration to a new core processing provider, and personnel costs related to staffing the Company’s Tifton expansion and greater incentive based income. |
· For the quarter, net income decreased slightly to $952 thousand, or $0.37 per diluted share. Strong net interest income growth of $391 thousand, or 10%, was more than offset by a $329 thousand increase in noninterest expense and a decrease in noninterest income of $91 thousand, primarily within mortgage banking services income. Higher overhead expenses for the quarter were related to a mass reissue of debit cards, other system migration costs and increased salaries and employee benefits.
Balance Sheet Trends
| · | Total assets grew 8% to $477.2 million, reflecting exceptional loan growth of $42.6 million, or 15%, to $329.8 million at period end. |
· Total deposits at September 30, 2017, were $384.8 million, up 6%, mostly due to an increase in money market and noninterest-bearing deposit accounts. Federal Home Loan Bank Advances were up $11.5 million at quarter-end as further funding for loan growth.
Capital Management
| · | Book value per share grew 5% to $16.10. |
| · | The Company has a Total Risk-Based Capital Ratio of 13.87%, a Common Equity Tier 1 Capital Ratio of 12.90%, and a Leverage Capital Ratio of 9.00%, all measurably above the federal “well capitalized” standard. |
| · | In September 2017, the Company paid a quarterly cash
dividend of $0.11 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid
cash dividends for 89 consecutive years. |
| -MORE- |
Webcast and Conference Call
The Company will host a conference call and webcast on Tuesday, October 24, 2017 at 1:00 p.m. ET. Management will review the financial and operating results for the third quarter of 2017, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion.
The conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored at www.sgfc.com.
A telephonic replay will be available from 4:00 p.m. ET on the day of the teleconference until Tuesday, October 31, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13671694, or access the webcast replay at www.sgfc.com/investorrelations.cfm, where a transcript will be posted once available.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $477 million in assets headquartered in Moultrie, Georgia. Its primary subsidiary, Southwest Georgia Bank, offers comprehensive financial services to consumer, business, and government customers. The current banking facilities include the main office located in Colquitt County, branch offices located in Baker County, Worth County and Lowndes County, and a loan production office located in Tift County. In addition to conventional banking services, the Company 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. The Company routinely posts news and other important information on its website.
More information on Southwest Georgia Financial Corporation and Southwest Georgia Bank can be found at: 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. Important factors that could cause actual results to differ materially from
those contemplated today include a change in the Company’s capital structure, new or expanded regulatory requirements, the
success of the Company’s growth strategy, customer preferences, the interest rate environment and other factors described
in 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) | ||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 8,670 | $ | 7,700 | $ | 6,515 | ||||||
| Interest-bearing deposits in banks | 11,618 | 18,819 | 26,503 | |||||||||
| Certificates of deposit in other banks | 1,985 | 0 | 0 | |||||||||
| Investment securities available for sale | 54,947 | 53,566 | 45,338 | |||||||||
| Investment securities held to maturity | 46,955 | 54,603 | 56,389 | |||||||||
| Federal Home Loan Bank stock, at cost | 2,464 | 1,874 | 1,874 | |||||||||
| Loans, less unearned income and discount | 329,820 | 292,524 | 287,226 | |||||||||
| Allowance for loan losses | (3,208 | ) | (3,124 | ) | (3,093 | ) | ||||||
| Net loans | 326,612 | 289,400 | 284,133 | |||||||||
| Premises and equipment | 11,891 | 11,209 | 11,772 | |||||||||
| Bank properties held for sale | 212 | 212 | 0 | |||||||||
| Foreclosed assets, net | 904 | 127 | 127 | |||||||||
| Intangible assets | 23 | 35 | 39 | |||||||||
| Bank owned life insurance | 5,457 | 5,357 | 5,325 | |||||||||
| Other assets | 5,481 | 5,599 | 5,015 | |||||||||
| Total assets | $ | 477,219 | $ | 448,501 | $ | 443,030 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 29,078 | $ | 47,420 | $ | 32,983 | ||||||
| Money market | 116,769 | 95,659 | 97,975 | |||||||||
| Savings | 30,982 | 29,007 | 30,834 | |||||||||
| Certificates of deposit $100,000 and over | 41,207 | 43,235 | 35,393 | |||||||||
| Other time accounts | 38,243 | 39,524 | 48,029 | |||||||||
| Total interest-bearing deposits | 256,279 | 254,845 | 245,214 | |||||||||
| Noninterest-bearing deposits | 128,477 | 116,648 | 119,042 | |||||||||
| Total deposits | 384,756 | 371,493 | 364,256 | |||||||||
| Other borrowings | 22,114 | 8,448 | 8,448 | |||||||||
| Long-term debt | 24,771 | 26,029 | 26,886 | |||||||||
| Accounts payable and accrued liabilities | 4,561 | 4,109 | 4,349 | |||||||||
| Total liabilities | 436,202 | 410,079 | 403,939 | |||||||||
| 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 | 32,583 | 30,333 | 29,612 | |||||||||
| Accumulated other comprehensive income | (1,441 | ) | (1,786 | ) | (402 | ) | ||||||
| Total | 67,137 | 64,542 | 65,205 | |||||||||
| Treasury stock - at cost (**) | (26,120 | ) | (26,120 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 41,017 | 38,422 | 39,091 | |||||||||
| Total liabilities and shareholders' equity | $ | 477,219 | $ | 448,501 | $ | 443,030 | ||||||
| * Common stock - shares outstanding | 2,547,437 | 2,547,437 | 2,547,837 | |||||||||
| ** Treasury stock - shares | 1,746,398 | 1,746,398 | 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 | For the Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2017* | 2016* | 2017* | 2016* | |||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 4,170 | $ | 3,785 | $ | 11,996 | $ | 11,017 | ||||||||
| Interest and dividend on securities available for sale | 326 | 243 | 996 | 793 | ||||||||||||
| Interest on securities held to maturity | 290 | 332 | 916 | 1,022 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | 26 | 22 | 73 | 68 | ||||||||||||
| Interest on deposits in banks | 35 | 26 | 125 | 65 | ||||||||||||
| Interest on certificates of deposit in other banks | 12 | 0 | 23 | 0 | ||||||||||||
| Total interest income | 4,859 | 4,408 | 14,129 | 12,965 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 280 | 243 | 821 | 676 | ||||||||||||
| Interest on federal funds purchased | 0 | 0 | 1 | 0 | ||||||||||||
| Interest on other borrowings | 62 | 28 | 114 | 76 | ||||||||||||
| Interest on long-term debt | 130 | 141 | 408 | 430 | ||||||||||||
| Total interest expense | 472 | 412 | 1,344 | 1,182 | ||||||||||||
| Net interest income | 4,387 | 3,996 | 12,785 | 11,783 | ||||||||||||
| Provision for loan losses | 75 | 45 | 225 | 115 | ||||||||||||
| Net interest income after provision for losses on loans | 4,312 | 3,951 | 12,560 | 11,668 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 260 | 277 | 787 | 808 | ||||||||||||
| Income from trust services | 54 | 54 | 164 | 157 | ||||||||||||
| Income from retail brokerage services | 84 | 90 | 281 | 258 | ||||||||||||
| Income from insurance services | 347 | 310 | 1,158 | 1,124 | ||||||||||||
| Income from mortgage banking services | 16 | 89 | 154 | 272 | ||||||||||||
| Net gain (loss) on the sale or disposition of assets | 0 | 0 | (9 | ) | 0 | |||||||||||
| Net gain on the sale of securities | 20 | 57 | 187 | 169 | ||||||||||||
| Other income | 188 | 183 | 630 | 596 | ||||||||||||
| Total noninterest income | 969 | 1,060 | 3,352 | 3,384 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salary and employee benefits | 2,335 | 2,222 | 6,953 | 6,575 | ||||||||||||
| Occupancy expense | 290 | 297 | 845 | 864 | ||||||||||||
| Equipment expense | 215 | 182 | 633 | 633 | ||||||||||||
| Data processing expense | 375 | 350 | 1,146 | 1,004 | ||||||||||||
| Amortization of intangible assets | 4 | 4 | 12 | 12 | ||||||||||||
| Other operating expense | 849 | 684 | 2,348 | 2,059 | ||||||||||||
| Total noninterest expense | 4,068 | 3,739 | 11,937 | 11,147 | ||||||||||||
| Income before income tax expense | 1,213 | 1,272 | 3,975 | 3,905 | ||||||||||||
| Provision for income taxes | 261 | 299 | 885 | 873 | ||||||||||||
| Net income | $ | 952 | $ | 973 | $ | 3,090 | $ | 3,032 | ||||||||
| Net income per share, basic | $ | 0.37 | $ | 0.38 | $ | 1.21 | $ | 1.19 | ||||||||
| Net income per share, diluted | $ | 0.37 | $ | 0.38 | $ | 1.21 | $ | 1.19 | ||||||||
| Dividends paid per share | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.31 | ||||||||
| Basic weighted average shares outstanding | 2,547,437 | 2,547,837 | 2,547,437 | 2,547,837 | ||||||||||||
| Diluted weighted average shares outstanding | 2,547,437 | 2,547,837 | 2,547,437 | 2,547,837 | ||||||||||||
| -MORE- |
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At September 30 | 2017 | 2016 | ||||||
| Assets | $ | 477,219 | $ | 443,030 | ||||
| Loans, less unearned income & discount | $ | 329,820 | $ | 287,226 | ||||
| Deposits | $ | 384,756 | $ | 364,256 | ||||
| Shareholders' equity | $ | 41,017 | $ | 39,091 | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Performance Data & Ratios | ||||||||||||||||
| Net income | $ | 952 | $ | 973 | $ | 3,090 | $ | 3,032 | ||||||||
| Earnings per share, basic | $ | 0.37 | $ | 0.38 | $ | 1.21 | $ | 1.19 | ||||||||
| Earnings per share, diluted | $ | 0.37 | $ | 0.38 | $ | 1.21 | $ | 1.19 | ||||||||
| Dividends paid per share | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.31 | ||||||||
| Return on assets | 0.81 | % | 0.89 | % | 0.88 | % | 0.95 | % | ||||||||
| Return on equity | 9.26 | % | 9.95 | % | 10.27 | % | 10.61 | % | ||||||||
| Net interest margin (tax equivalent) | 4.14 | % | 4.12 | % | 4.09 | % | 4.20 | % | ||||||||
| Dividend payout ratio | 29.45 | % | 28.81 | % | 27.20 | % | 26.05 | % | ||||||||
| Efficiency ratio | 73.21 | % | 70.96 | % | 71.23 | % | 70.50 | % | ||||||||
| Asset Quality Data & Ratios | ||||||||||||||||
| Total nonperforming loans | $ | 1,549 | $ | 352 | $ | 1,549 | $ | 352 | ||||||||
| Total nonperforming assets | $ | 2,453 | $ | 479 | $ | 2,453 | $ | 479 | ||||||||
| Net loan charge offs | $ | (37 | ) | $ | 64 | $ | 142 | $ | 54 | |||||||
| Reserve for loan losses to total loans | 0.97 | % | 1.08 | % | 0.97 | % | 1.08 | % | ||||||||
| Nonperforming loans/total loans | 0.47 | % | 0.12 | % | 0.47 | % | 0.12 | % | ||||||||
| Nonperforming assets/total assets | 0.51 | % | 0.11 | % | 0.51 | % | 0.11 | % | ||||||||
| Net charge offs / average loans | (0.04 | )% | 0.09 | % | 0.06 | % | 0.03 | % | ||||||||
| Capital Ratios | ||||||||||||||||
| Average common equity to average total assets | 8.71 | % | 8.97 | % | 8.55 | % | 8.99 | % | ||||||||
| Common equity Tier 1 capital ratio | 12.90 | % | 13.18 | % | 12.90 | % | 13.18 | % | ||||||||
| Tier 1 capital ratio | 12.90 | % | 13.18 | % | 12.90 | % | 13.18 | % | ||||||||
| Tier 1 leverage ratio | 9.00 | % | 9.06 | % | 9.00 | % | 9.06 | % | ||||||||
| Total risk based capital ratio | 13.87 | % | 14.21 | % | 13.87 | % | 14.21 | % | ||||||||
| Book value per share | $ | 16.10 | $ | 15.34 | $ | 16.10 | $ | 15.34 | ||||||||
| Tangible book value per share | $ | 16.09 | $ | 15.33 | $ | 16.09 | $ | 15.33 | ||||||||
| Quarterly | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
| Averages | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||
| Assets | $ | 471,643 | $ | 469,201 | $ | 466,019 | $ | 452,865 | $ | 435,880 | ||||||||||
| Loans, less unearned income & discount | $ | 324,206 | $ | 312,848 | $ | 302,620 | $ | 291,573 | $ | 289,978 | ||||||||||
| Deposits | $ | 385,989 | $ | 390,268 | $ | 388,761 | $ | 374,346 | $ | 357,421 | ||||||||||
| Equity | $ | 41,089 | $ | 40,169 | $ | 39,054 | $ | 39,178 | $ | 39,110 | ||||||||||
| Return on assets | 0.81 | % | 0.92 | % | 0.91 | % | 0.89 | % | 0.89 | % | ||||||||||
| Return on equity | 9.26 | % | 10.69 | % | 10.91 | % | 10.23 | % | 9.95 | % | ||||||||||
| Net income | $ | 952 | $ | 1,074 | $ | 1,065 | $ | 1,002 | $ | 973 | ||||||||||
| Net income per share, basic | $ | 0.37 | $ | 0.42 | $ | 0.42 | $ | 0.39 | $ | 0.38 | ||||||||||
| Net income per share, diluted | $ | 0.37 | $ | 0.42 | $ | 0.42 | $ | 0.39 | $ | 0.38 | ||||||||||
| Dividends paid per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | ||||||||||
| -END- |