Attached files

file filename
8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORPsgfc8k12813.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 Fourth Quarter and 2012 Results

MOULTRIE, GEORGIA, January 28, 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 fourth quarter and year ended December 31, 2012.

Fourth Quarter and Year-End Income Highlights

·Net income was $643 thousand in the 2012 fourth quarter, or $0.25 per diluted share, compared with $396 thousand, or $0.15 per diluted share in the fourth quarter of 2011. The increase was mainly due to a $352 thousand increase in income from interest and fees on loans and a $74 thousand decrease in provision for loan losses.
·For the year ended December 31, 2012, net income was $1.9 million, or $0.76 per diluted share, a 32.7% increase, when compared with $1.5 million, or $0.57 per diluted share for the same period in the prior year.
·Net interest margin was 4.23% for the fourth quarter of 2012 and 4.22% for the year ended December 31, 2012, down 6 and up 11 basis points, compared with the respective prior-year periods. Strengthened net interest margin for the year was mainly attributed to continued growth in loans.
·Net interest income after provision for loan losses increased 14.8% to $11.4 million for the twelve months ending December 31, 2012. The improvement was due to a $927 thousand increase in net interest income and a $539 thousand decrease in loan loss provisions.

Balance Sheet Trends and Asset Quality

·Total assets at December 31, 2012 were $347.2 million, an increase of 13.6%, or $41.5 million from December 31, 2011.
·Total loans increased $22.8 million, or 12.6%, to $204.1 million, compared with the same period last year. The growth in loans was funded by increases in noninterest-bearing and money market deposits.
·Total deposits grew $42.9 million to $291.8 million at December 31, 2012, an increase of 17.2% from the end of 2011.
·Non-performing asset ratio was 0.53% at December 31, 2012, a 65 basis point improvement when compared with 1.18% at the end of 2011.

Capital Management

·The Company has a total risk based capital ratio of 15.56% and Tier 1 capital ratio of 14.31%, both measurably above the Federal “well capitalized” standard.
·Return on equity increased to 8.68% compared with 5.57% in the fourth quarter of 2011. For the full year, return on equity increased to 6.62% from 5.25% for 2011.
·Tangible book value per share at December 31, 2012, was $11.60, up from $10.99 at the end of 2011.

DeWitt Drew, President and CEO commented, “It is encouraging that our deposit growth is evenly spread among our three banking regions. Our effort to focus on core funding and investments in growing markets is beginning to show up in our earnings. And while work remains to be done, our asset quality indicators look to be at a relatively normal level.”

-MORE-
 

 Dividends

In December 2012, the Corporation paid a fourth quarter cash dividend of $0.04 per common share. The Corporation paid dividends of $0.16 per common share in 2012 compared with $0.10 per common share in 2011. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 84 consecutive years.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $347 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.

-MORE-
 

SOUTHWEST GEORGIA FINANCIAL CORPORATION

CONSOLIDATED STATEMENT OF CONDITION

(Dollars in thousands except per share data)

   (Unaudited)  (Audited)  (Audited)
   December 31,  December 31,  December 31,
   2012  2011  2010
ASSETS               
Cash and due from banks  $8,646   $6,552   $5,112 
Interest-bearing deposits in banks   27,935    14,498    10,959 
Certificates of deposit in other banks   3,920    980    0 
Investment securities available for sale   21,672    28,641    54,946 
Investment securities held to maturity   59,863    52,339    46,255 
Federal Home Loan Bank stock, at cost   1,448    1,787    1,650 
Loans, less unearned income and discount   204,137    181,302    157,733 
Allowance for loan losses   (2,845)   (3,100)   (2,755)
Net loans   201,292    178,202    154,978 
Premises and equipment   10,149    9,942    9,221 
Foreclosed assets, net   1,690    2,358    3,288 
Intangible assets   327    547    641 
Bank owned life insurance   4,767    4,593    3,029 
Other assets   5,472    5,211    6,325 
Total assets  $347,181   $305,650   $296,404 
LIABILITIES AND SHAREHOLDERS' EQUITY               
Deposits:               
NOW accounts  $28,881   $29,841   $29,239 
Money market   77,133    45,638    50,468 
Savings   25,988    24,367    22,635 
Certificates of deposit $100,000 and over   36,591    32,629    32,472 
Other time accounts   55,098    59,950    65,859 
Total interest-bearing deposits   223,691    192,425    200,673 
Noninterest-bearing deposits   68,071    56,486    38,858 
Total deposits   291,762    248,911    239,531 
                
Other borrowings   2,000    2,000    2,000 
Long-term debt   20,000    22,000    24,000 
Accounts payable and accrued liabilities   3,544    4,188    4,098 
Total liabilities   317,306    277,099    269,629 
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   20,664    19,133    17,926 
Accumulated other comprehensive income   (670)   (463)   (1,032)
Total   55,989    54,665    52,889 
Treasury stock - at cost (**)   (26,114)   (26,114)   (26,114)
Total shareholders' equity   29,875    28,551    26,775 
Total liabilities and shareholders' equity  $347,181   $305,650   $296,404 
                
* 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  For the Twelve Months
   Ended December 31,  Ended December 31,
   2012*  2011*  2012*  2011
Interest income:                    
Interest and fees on loans  $3,052   $2,700   $11,455   $10,408 
Interest and dividend on securities available for sale   151    248    711    1,439 
Interest on securities held to maturity   359    327    1,456    1,205 
Dividends on Federal Home Loan Bank stock   11    4    33    15 
Interest on deposits in banks   18    8    60    35 
Interest on certificates of deposit in other banks   7    2    19    2 
Total interest income   3,598    3,289    13,734    13,104 
                     
Interest expense:                    
Interest on deposits   269    300    1,111    1,370 
Interest on federal funds purchased   0    0    0    2 
Interest on other borrowings   14    11    54    42 
Interest on long-term debt   177    191    733    781 
Total interest expense   460    502    1,898    2,195 
Net interest income   3,138    2,787    11,836    10,909 
Provision for loan losses   130    204    445    984 
Net interest income after provision for losses on loans   3,008    2,583    11,391    9,925 
                     
Non-interest income:                    
Service charges on deposit accounts   322    327    1,242    1,360 
Income from trust services   53    50    205    214 
Income from retail brokerage services   100    76    382    324 
Income from insurance services   305    339    1,280    1,273 
Income from mortgage banking services   318    358    1,676    1,477 
Provision for foreclosed property losses   (95)   (75)   (320)   (300)
Net gain (loss) on the sale or disposition of assets   104    4    24    (160)
Net gain on the sale of securities   0    5    338    381 
Net loss on the impairment of equity securities   0    0    0    (12)
Other income   164    151    698    602 
Total noninterest income   1,271    1,235    5,525    5,159 
                     
Non-interest expense:                    
Salary and employee benefits   1,986    1,934    8,717    7,717 
Occupancy expense   265    236    1,006    953 
Equipment expense   256    233    940    812 
Data processing expense   241    265    1,082    1,039 
Amortization of intangible assets   54    56    220    219 
Other operating expense   667    627    2,631    2,596 
Total non-interest expense   3,469    3,351    14,596    13,336 
                     
Income before income tax expense   810    467    2,320    1,748 
Provision for income taxes   167    71    381    287 
Net income  $643   $396   $1,939   $1,461 
                     
Net income per share, basic  $0.25   $0.15   $0.76   $0.57 
Net income per share, diluted  $0.25   $0.15   $0.76   $0.57 
Dividends paid per share  $0.04   $—     $0.16   $0.10 
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    2,547,865 

 

-MORE-
 

 

SOUTHWEST GEORGIA FINANCIAL CORPORATION

Financial Highlights

(Dollars in thousands except per share data)

At December 31  2012  2011  
Assets  $347,181   $305,650   
Loans, less unearned income & discount  $204,137   $181,302   
Deposits  $291,762   $248,911   
Shareholders' equity  $29,875   $28,551   

 

   Three Months Ended December 31,  Twelve Months Ended December 31,
   2012  2011  2012  2011
Performance Data & Ratios                    
Net income  $643   $396   $1,939   $1,461 
Earnings per share, basic  $0.25   $0.15   $0.76   $0.57 
Earnings per share, diluted  $0.25   $0.15   $0.76   $0.57 
Dividends paid per share  $0.04   $—     $0.16   $0.10 
Return on assets   0.75%   0.53%   0.60%   0.48%
Return on equity   8.68%   5.57%   6.62%   5.25%
Net interest margin (tax equivalent)   4.23%   4.29%   4.22%   4.11%
Dividend payout ratio   15.86%   0.00%   21.02%   17.44%
Efficiency ratio   75.79%   80.60%   81.15%   80.63%
                     
Asset Quality Data & Ratios                    
Total nonperforming loans  $25   $1,153   $25   $1,153 
Total nonperforming assets  $1,849   $3,621   $1,849   $3,621 
Net loan charge offs  $30   $7   $700   $638 
Reserve for loan losses to total loans   1.39%   1.71%   1.39%   1.71%
Nonperforming loans/total loans   0.01%   0.64%   0.01%   0.64%
Nonperforming assets/total assets   0.53%   1.18%   0.53%   1.18%
Net charge offs / average loans   0.06%   0.02%   0.36%   0.37%
                     
Capital Ratios                    
Average common equity to average total assets   8.68%   9.46%   8.99%   9.06%
Tier 1 capital ratio   14.31%   15.45%   14.31%   15.45%
Tier 1 leverage ratio   8.85%   9.47%   8.85%   9.47%
Total risk based capital ratio   15.56%   16.71%   15.56%   16.71%
Book value per share  $11.73   $11.21   $11.73   $11.21 
Tangible book value per share  $11.60   $10.99   $11.60   $10.99 

 

 

 

Quarterly  4th Qtr  3rd Qtr  2nd Qtr  1st Qtr  4th Qtr
Averages  2012  2012  2012  2012  2011
                
Assets  $341,418   $319,266   $319,525   $322,726   $300,863 
Loans, less unearned income & discount  $203,871   $199,145   $190,142   $180,796   $180,567 
Deposits  $285,965   $263,747   $262,095   $265,993   $243,893 
Equity  $29,624   $29,194   $29,343   $28,984   $28,458 
Return on assets   0.75%   0.53%   0.38%   0.71%   0.53%
Return on equity   8.68%   5.76%   4.16%   7.88%   5.57%
Net income  $643   $421   $305   $571   $396 
Net income per share, basic  $0.25   $0.17   $0.12   $0.22   $0.16 
Net income per share, diluted  $0.25   $0.17   $0.12   $0.22   $0.16 
Dividends paid per share  $0.04   $0.04   $0.04   $0.04   $—   

 

-END-