Attached files
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| 8-K - FORM 8-K - Southeastern Bank Financial CORP | t75458_8k.htm |
FOR IMMEDIATE RELEASE
| For More Information: | |
| Ronald L. Thigpen | Andy Mus |
| Executive Vice President and COO | Vice President |
| Southeastern Bank Financial Corp. | Ketchum Inc. |
| 706-481-1014 | 404-879-9075 |
Southeastern Bank Financial Corp. Reports Earnings For The
Fourth Quarter and Year-End 2012
AUGUSTA, Ga., Jan. 25, 2013 -- Southeastern Bank Financial Corp. (OTCQB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta (GB&T), today reported quarterly net income of $3.9 million for the three months ended Dec. 31, 2012, or $0.58 in diluted earnings per share, compared to $3.0 million, or $0.45 in diluted earnings per share, in the fourth quarter of 2011. For the full year, the company reported net income of $14.4 million, or $2.16 per diluted share, compared to net income of $11.0 million, or $1.65 per diluted share, for 2011.
“We are pleased to have ended 2012 on a strong note, generating a 29.3 percent gain in quarterly net income over the fourth quarter of last year and a 30.7 percent increase in earnings for 2012 over 2011,” said President and Chief Executive Officer R. Daniel Blanton. “Our effort and performance over the entire year have been solid and our success is reflected in the fact that we increased net interest income in a historically low interest rate environment, improved our deposit mix, grew loans in a market of low demand and improved our asset quality in what continues to be a challenging economic environment.”
Total assets at Dec. 31, 2012, were $1.7 billion, an increase of $47.7 million from Dec. 31, 2011. Loans outstanding at the end of the fourth quarter were $901.5 million, an increase of $25.9 million from Dec. 31, 2011. Total deposits were $1.4 billion at Dec. 31, 2012, an increase of $2.0 million from Dec. 31, 2011. Cash and cash equivalents totaled $43.9 million at the end of the fourth quarter of 2012.
Net interest income for the fourth quarter of 2012 totaled $13.1 million, a 5.2 percent increase from $12.4 million for the same period in 2011. Noninterest income for the fourth quarter totaled $5.5 million, a decrease from $5.7 million for the same period a year ago, due to a reduction in investment securities gains as compared to 2011. Noninterest expense was $11.3 million in the fourth quarter of 2012, a 2.6 percent decrease from a year ago resulting from lower losses on other real estate.
The net interest margin was 3.30 percent for the quarter-ended Dec. 31, 2012, compared to 3.34 percent for the third quarter of 2012, and 3.28 percent for the same period a year ago. Annualized return on average assets (ROA) was 0.92 percent for the fourth quarter of 2012, an increase of 18 basis points from the same period a year ago, and annualized return on average shareholder’s equity (ROE) was 11.52 percent, an increase of 115 basis points from the fourth quarter of 2011.
Nonperforming assets at Dec. 31, 2012, were 2.08 percent of total assets, compared to 2.03 percent at Sept. 30, 2012, and 3.19 percent at Dec. 31, 2011. Net charge-offs for the fourth quarter of 2012 totaled 0.84 percent of average loans on an annualized basis, compared to 0.93 percent annualized in the third quarter of 2012 and 1.26 percent annualized in the fourth quarter of 2011. The company held $3.5 million in OREO at Dec. 31, 2012, compared to $6.2 million at December 31, 2011.
The company’s loan-loss provision expense was $1.6 million in the fourth quarter of 2012, a 33.3 percent decrease from $2.4 million in the third quarter of 2012, and a 34.1 percent decrease from $2.4 million in the fourth quarter a year ago. The allowance for loan losses at Dec. 31, 2012, was $28.9 million, or 3.20 percent of loans outstanding, compared to $29.0 million, or 3.32 percent of loans outstanding, at Dec. 31, 2011.
Net interest income for the 12 months ended Dec. 31, 2012, was $51.6 million, a 2.1 percent increase from $50.6 million in the full year 2011. Noninterest income was $21.5 million for the 12 months ended Dec. 31, 2012, a 9.3 percent increase from $19.7 million in the same period of 2011, primarily as a result of a 32.4 percent increase in mortgage income for the year. Noninterest expense was $44.1 million for the full year 2012, compared to $42.0 million in the same period in 2011.
“We significantly reduced our provision for loan losses due to the growing strength and stability of our loan portfolio,” said Blanton. “We will continue to monitor our assets closely, however, keeping in line with our conservative approach to banking.”
About Southeastern Bank Financial Corp.
Southeastern Bank Financial Corp. is the $1.7 billion-asset bank holding company of Georgia Bank & Trust Company of Augusta (GB&T). GB&T is the largest locally owned and operated community bank in the Augusta metro market, with nine full-service Augusta-area offices, three full-service offices in Aiken County, S.C. operating as Southern Bank & Trust and one limited service Loan Production Office in Athens, GA. The company also has mortgage operations in Augusta and Savannah. The banks focus primarily on real estate, commercial and consumer loans to individuals, small to medium-sized businesses and professionals, and also provides wealth management and trust services. The company’s common stock is publicly traded under the symbol SBFC on OTCQB. Investors can find Real-Time quotes and market information for the Company on www.otcmarkets.com or by visiting the Company’s Web site, www.georgiabankandtrust.com.
Safe Harbor Statement – Forward-Looking Statements
Statements made in this release by Southeastern Bank Financial Corporation (The Company) other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including: unanticipated changes in the Bank’s local economy and in the national economy; governmental monetary and fiscal policies; deposit levels, loan demand, loan collateral values and securities portfolio values; difficulties in interest rate risk management; difficulties in operating in a variety of geographic areas; the effects of competition in the banking business; changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions; failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans; and other factors. The Company cautions that such factors are not exclusive. The Company does not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, the Company.
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SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARY
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Consolidated Balance Sheets
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Assets
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December 31,
2012
(Unaudited) |
December 31,
2011 |
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Cash and due from banks
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$ | 39,565,757 | $ | 51,080,600 | ||||
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Interest-bearing deposits in other banks
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4,322,317 | 18,760,812 | ||||||
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Cash and cash equivalents
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43,888,074 | 69,841,412 | ||||||
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Available-for-sale securities
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654,738,964 | 603,758,999 | ||||||
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Loans held for sale
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30,051,204 | 29,615,131 | ||||||
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Loans
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871,446,844 | 846,010,275 | ||||||
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Less allowance for loan losses
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28,846,336 | 29,045,876 | ||||||
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Loans, net
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842,600,508 | 816,964,399 | ||||||
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Premises and equipment, net
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26,145,378 | 27,608,118 | ||||||
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Accrued interest receivable
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6,602,879 | 6,246,880 | ||||||
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Bank-owned life insurance
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34,825,588 | 30,713,488 | ||||||
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Restricted equity securities
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5,295,600 | 5,086,000 | ||||||
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Other real estate owned
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3,489,887 | 6,208,720 | ||||||
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Prepaid FDIC assessment
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2,023,977 | 3,419,738 | ||||||
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Deferred tax asset
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10,406,187 | 12,723,238 | ||||||
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Other assets
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2,434,228 | 2,586,986 | ||||||
| $ | 1,662,502,474 | $ | 1,614,773,109 | |||||
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Liabilities and Stockholders’ Equity
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Deposits
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Noninterest-bearing
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$ | 158,066,510 | $ | 147,196,034 | ||||
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Interest-bearing:
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NOW accounts
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349,531,376 | 346,235,936 | ||||||
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Savings
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504,193,793 | 471,727,749 | ||||||
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Money management accounts
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18,032,530 | 42,977,515 | ||||||
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Time deposits over $100,000
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280,870,648 | 286,318,774 | ||||||
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Other time deposits
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110,576,827 | 124,766,377 | ||||||
| 1,421,271,684 | 1,419,222,385 | |||||||
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Securities sold under repurchase agreements
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976,433 | 700,798 | ||||||
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Advances from Federal Home Loan Bank
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64,000,000 | 39,000,000 | ||||||
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Accrued interest payable and other liabilities
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18,924,619 | 15,874,526 | ||||||
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Subordinated debentures
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21,546,646 | 22,946,646 | ||||||
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Total liabilities
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1,526,719,382 | 1,497,744,355 | ||||||
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Stockholders’ equity:
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Preferred stock, no par value; 10,000,000 shares
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authorized; 0 shares outstanding in 2012 and
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2011, respectively
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- | - | ||||||
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Common stock, $3.00 par value; 10,000,000 shares
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authorized; 6,680,225 and 6,677,667 shares issued in
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2012 and 2011, respectively; 6,675,000 and 6,677,667
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shares outstanding in 2012 and 2011, respectively
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20,040,675 | 20,033,001 | ||||||
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Additional paid-in capital
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62,835,122 | 62,767,133 | ||||||
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Retained earnings
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45,028,153 | 30,593,180 | ||||||
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Treasury stock, at cost; 5,225 and 0 shares in
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2012 and 2011, respectively
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(72,680 | ) | - | |||||
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Accumulated other comprehensive income, net
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7,951,822 | 3,635,440 | ||||||
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Total stockholders’ equity
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135,783,092 | 117,028,754 | ||||||
| $ | 1,662,502,474 | $ | 1,614,773,109 | |||||
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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Interest income:
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Loans, including fees
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$ | 11,732,583 | $ | 11,945,592 | $ | 46,692,599 | $ | 50,036,221 | ||||||||
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Investment securities
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4,093,654 | 4,204,477 | 16,895,170 | 17,484,345 | ||||||||||||
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Interest-bearing deposits in other banks
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20,272 | 26,834 | 81,848 | 119,728 | ||||||||||||
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Total interest income
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15,846,509 | 16,176,903 | 63,669,617 | 67,640,294 | ||||||||||||
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Interest expense:
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Deposits
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2,106,626 | 3,154,118 | 9,425,091 | 14,443,074 | ||||||||||||
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Securities sold under repurchase
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agreements
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2,602 | 1,808 | 12,010 | 6,296 | ||||||||||||
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Other borrowings
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686,102 | 614,666 | 2,596,700 | 2,629,082 | ||||||||||||
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Total interest expense
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2,795,330 | 3,770,592 | 12,033,801 | 17,078,452 | ||||||||||||
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Net interest income
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13,051,179 | 12,406,311 | 51,635,816 | 50,561,842 | ||||||||||||
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Provision for loan losses
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1,573,465 | 2,385,948 | 8,140,563 | 12,584,033 | ||||||||||||
| Net interest income after provision | ||||||||||||||||
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for loan losses
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11,477,714 | 10,020,363 | 43,495,253 | 37,977,809 | ||||||||||||
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Noninterest income:
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Service charges and fees on deposits
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1,819,570 | 1,691,869 | 6,848,502 | 6,749,018 | ||||||||||||
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Gain on sales of loans
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2,472,172 | 2,050,637 | 9,367,753 | 7,074,950 | ||||||||||||
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Gain on sale of fixed assets
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- | 54,049 | 10,459 | 70,708 | ||||||||||||
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Investment securities gains (losses), net
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(120,192 | ) | 750,143 | 320,994 | 1,118,880 | |||||||||||
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Other-than-temporary loss
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Total impairment loss
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- | - | (13,314 | ) | (191,618 | ) | ||||||||||
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Less loss recognized in other comprehensive income
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- | - | (4,268 | ) | (89,494 | ) | ||||||||||
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Net impairment loss recognized in earnings
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- | - | (9,046 | ) | (102,124 | ) | ||||||||||
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Retail investment income
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494,764 | 443,446 | 1,941,313 | 1,851,570 | ||||||||||||
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Trust service fees
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288,611 | 278,876 | 1,145,695 | 1,128,234 | ||||||||||||
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Earnings from cash surrender value of
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bank-owned life insurance
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281,225 | 266,956 | 1,112,100 | 1,034,854 | ||||||||||||
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Miscellaneous income
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221,217 | 172,131 | 756,491 | 745,649 | ||||||||||||
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Total noninterest income
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5,457,367 | 5,708,107 | 21,494,261 | 19,671,739 | ||||||||||||
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Noninterest expense:
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Salaries and other personnel expense
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6,546,113 | 6,015,029 | 25,889,475 | 23,222,936 | ||||||||||||
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Occupancy expenses
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982,430 | 1,044,877 | 4,093,548 | 4,359,701 | ||||||||||||
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Other real estate losses, net
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532,348 | 865,460 | 1,784,617 | 1,898,672 | ||||||||||||
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Other operating expenses
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3,227,502 | 3,655,851 | 12,300,551 | 12,560,027 | ||||||||||||
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Total noninterest expense
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11,288,393 | 11,581,217 | 44,068,191 | 42,041,336 | ||||||||||||
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Income before income taxes
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5,646,688 | 4,147,253 | 20,921,323 | 15,608,212 | ||||||||||||
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Income tax expense
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1,750,627 | 1,134,151 | 6,486,350 | 4,563,638 | ||||||||||||
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Net income
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$ | 3,896,061 | $ | 3,013,102 | $ | 14,434,973 | $ | 11,044,574 | ||||||||
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Comprehensive income
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$ | 3,058,960 | $ | 1,589,769 | $ | 18,751,355 | $ | 16,913,531 | ||||||||
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Basic net income per share
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$ | 0.58 | $ | 0.45 | $ | 2.16 | $ | 1.65 | ||||||||
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Diluted net income per share
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$ | 0.58 | $ | 0.45 | $ | 2.16 | $ | 1.65 | ||||||||
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Weighted average common shares outstanding
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6,675,000 | 6,677,697 | 6,678,215 | 6,676,774 | ||||||||||||
| Weighted average number of common and | ||||||||||||||||
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common equivalent shares outstanding
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6,675,000 | 6,677,697 | 6,678,215 | 6,676,774 | ||||||||||||