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| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k012214.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 2013 Results
MOULTRIE, GEORGIA, January 22, 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 fourth quarter and year ended December 31, 2013.
Fourth Quarter and Year-End Income Highlights
| · | Net income was $982 thousand in the 2013 fourth quarter, or $0.39 per diluted share, compared with $642 thousand, or $0.25 per diluted share, in the fourth quarter of 2012. |
| · | For the year ended December 31, 2013, net income was $2.8 million, or $1.09 per diluted share, a 43.0% increase when compared with $1.9 million, or $0.76 per diluted share, for the same period in the prior year. Earnings growth was driven by higher net interest income resulting from continued loan growth. |
| · | Year-to-date and quarter-to-date net income were affected by a $736 thousand (for the year) decrease in commercial mortgage banking revenue. Partially offsetting the decrease was a fourth quarter gain on sale of holdings of Fannie Mae preferred stock. |
Balance Sheet Trends and Asset Quality
| · | Total assets at December 31, 2013 were $373.9 million, an increase of 7.7%, or $26.7 million from December 31, 2012. |
| · | Total loans increased $14.6 million, or 7.1%, to $218.7 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 $18.7 million to $310.4 million at December 31, 2013, an increase of 6.4% from the end of 2012. |
| · | Our non-performing asset ratio was 0.36% at December 31, 2013, a 17 basis point improvement when compared with 0.53% at the end of 2012. |
Capital Management
| · | The Company has a Total Risk-Based Capital Ratio of 15.44% and a Leverage Capital Ratio of 8.73%, both measurably above the federal “well capitalized” standard. |
| · | Return on equity increased to 12.50% compared with 8.68% in the fourth quarter of 2012. For the year, return on equity increased to 9.02% from 6.62% for 2012. |
| · | Tangible book value per share at December 31, 2013, was $12.29, up from $11.60 at the end of 2012. |
DeWitt Drew, President and CEO commented, “The driver of our growth has been increases in noninterest-bearing accounts. The majority of these funds are employed in short-term investments with the Federal Reserve earning very little interest in the current environment and also creating very little credit risk. Strong asset quality metrics, improved earnings performance, and the nature of our growth allow us to remain confident in the quality of our capital.”
Dividends
In December 2013, the Corporation paid a fourth quarter cash dividend of $0.08 per common share. The Corporation paid dividends of $0.20 per common share in 2013 compared with $0.16 per common share in 2012. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 85 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $373 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.
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
| (Unaudited) | (Audited) | (Audited) | ||||||||||
| December 31, | December 31, | December 31, | ||||||||||
| 2013 | 2012 | 2011 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 7,074 | $ | 8,646 | $ | 6,552 | ||||||
| Interest-bearing deposits in banks | 28,296 | 27,935 | 14,498 | |||||||||
| Certificates of deposit in other banks | 3,430 | 3,920 | 980 | |||||||||
| Investment securities available for sale | 36,461 | 21,672 | 28,641 | |||||||||
| Investment securities held to maturity | 59,624 | 59,863 | 52,339 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,721 | 1,448 | 1,787 | |||||||||
| Loans, less unearned income and discount | 218,688 | 204,137 | 181,302 | |||||||||
| Allowance for loan losses | (3,078 | ) | (2,845 | ) | (3,100 | ) | ||||||
| Net loans | 215,610 | 201,292 | 178,202 | |||||||||
| Premises and equipment | 10,336 | 10,149 | 9,942 | |||||||||
| Foreclosed assets, net | 406 | 1,690 | 2,358 | |||||||||
| Intangible assets | 111 | 327 | 547 | |||||||||
| Bank owned life insurance | 4,980 | 4,767 | 4,593 | |||||||||
| Other assets | 5,846 | 5,472 | 5,211 | |||||||||
| Total assets | $ | 373,895 | $ | 347,181 | $ | 305,650 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 23,088 | $ | 28,881 | $ | 29,841 | ||||||
| Money market | 89,934 | 77,133 | 45,638 | |||||||||
| Savings | 28,792 | 25,988 | 24,367 | |||||||||
| Certificates of deposit $100,000 and over | 36,956 | 36,591 | 32,629 | |||||||||
| Other time accounts | 49,836 | 55,098 | 59,950 | |||||||||
| Total interest-bearing deposits | 228,606 | 223,691 | 192,425 | |||||||||
| Noninterest-bearing deposits | 81,829 | 68,071 | 56,486 | |||||||||
| Total deposits | 310,435 | 291,762 | 248,911 | |||||||||
| Other borrowings | 11,800 | 2,000 | 2,000 | |||||||||
| Long-term debt | 17,200 | 20,000 | 22,000 | |||||||||
| Accounts payable and accrued liabilities | 3,040 | 3,544 | 4,188 | |||||||||
| Total liabilities | 342,475 | 317,306 | 277,099 | |||||||||
| 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 | 22,927 | 20,664 | 19,133 | |||||||||
| Accumulated other comprehensive income | (1,388 | ) | (670 | ) | (463 | ) | ||||||
| Total | 57,534 | 55,989 | 54,665 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 31,420 | 29,875 | 28,551 | |||||||||
| Total liabilities and shareholders' equity | $ | 373,895 | $ | 347,181 | $ | 305,650 | ||||||
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, | |||||||||||||||
| 2013* | 2012* | 2013* | 2012 | |||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 3,162 | $ | 3,052 | $ | 12,219 | $ | 11,455 | ||||||||
| Interest and dividend on securities available for sale | 178 | 151 | 673 | 711 | ||||||||||||
| Interest on securities held to maturity | 357 | 359 | 1,435 | 1,456 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | 12 | 11 | 39 | 33 | ||||||||||||
| Interest on deposits in banks | 16 | 18 | 66 | 60 | ||||||||||||
| Interest on certificates of deposit in other banks | 10 | 7 | 43 | 19 | ||||||||||||
| Total interest income | 3,735 | 3,598 | 14,475 | 13,734 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 213 | 269 | 882 | 1,111 | ||||||||||||
| Interest on other borrowings | 98 | 14 | 295 | 54 | ||||||||||||
| Interest on long-term debt | 111 | 177 | 486 | 733 | ||||||||||||
| Total interest expense | 422 | 460 | 1,663 | 1,898 | ||||||||||||
| Net interest income | 3,313 | 3,138 | 12,812 | 11,836 | ||||||||||||
| Provision for loan losses | 105 | 130 | 420 | 445 | ||||||||||||
| Net interest income after provision for losses on loans | 3,208 | 3,008 | 12,392 | 11,391 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 354 | 322 | 1,278 | 1,242 | ||||||||||||
| Income from trust services | 63 | 53 | 228 | 205 | ||||||||||||
| Income from retail brokerage services | 83 | 100 | 338 | 382 | ||||||||||||
| Income from insurance services | 349 | 305 | 1,328 | 1,280 | ||||||||||||
| Income from mortgage banking services | 238 | 318 | 940 | 1,676 | ||||||||||||
| Provision for foreclosed property losses | 0 | (95 | ) | 0 | (320 | ) | ||||||||||
| Net gain (loss) on the sale or disposition of assets | 0 | 104 | (68 | ) | 24 | |||||||||||
| Net gain on the sale of securities | 312 | 0 | 312 | 338 | ||||||||||||
| Other income | 175 | 164 | 735 | 698 | ||||||||||||
| Total noninterest income | 1,574 | 1,271 | 5,091 | 5,525 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salary and employee benefits | 2,164 | 1,986 | 8,455 | 8,717 | ||||||||||||
| Occupancy expense | 252 | 265 | 1,025 | 1,006 | ||||||||||||
| Equipment expense | 218 | 256 | 902 | 940 | ||||||||||||
| Data processing expense | 271 | 241 | 1,097 | 1,082 | ||||||||||||
| Amortization of intangible assets | 54 | 54 | 216 | 220 | ||||||||||||
| Other operating expense | 638 | 667 | 2,651 | 2,631 | ||||||||||||
| Total noninterest expense | 3,597 | 3,469 | 14,346 | 14,596 | ||||||||||||
| Income before income tax expense | 1,185 | 810 | 3,137 | 2,320 | ||||||||||||
| Provision for income taxes | 203 | 167 | 365 | 381 | ||||||||||||
| Net income | $ | 982 | $ | 642 | $ | 2,772 | $ | 1,939 | ||||||||
| Net income per share, basic | $ | 0.39 | $ | 0.25 | $ | 1.09 | $ | 0.76 | ||||||||
| Net income per share, diluted | $ | 0.39 | $ | 0.25 | $ | 1.09 | $ | 0.76 | ||||||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | $ | 0.20 | $ | 0.16 | ||||||||
| 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 | ||||||||||||
| -MORE- |
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At December 31 | 2013 | 2012 | ||||||
| Assets | $ | 373,895 | $ | 347,181 | ||||
| Loans, less unearned income & discount | $ | 218,688 | $ | 204,137 | ||||
| Deposits | $ | 310,435 | $ | 291,762 | ||||
| Shareholders' equity | $ | 31,420 | $ | 29,875 | ||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Performance Data & Ratios | ||||||||||||||||
| Net income | $ | 982 | $ | 643 | $ | 2,772 | $ | 1,939 | ||||||||
| Earnings per share, basic | $ | 0.39 | $ | 0.25 | $ | 1.09 | $ | 0.76 | ||||||||
| Earnings per share, diluted | $ | 0.39 | $ | 0.25 | $ | 1.09 | $ | 0.76 | ||||||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | $ | 0.20 | $ | 0.16 | ||||||||
| Return on assets | 1.05 | % | 0.75 | % | 0.76 | % | 0.60 | % | ||||||||
| Return on equity | 12.50 | % | 8.68 | % | 9.02 | % | 6.62 | % | ||||||||
| Net interest margin (tax equivalent) | 4.02 | % | 4.23 | % | 4.02 | % | 4.22 | % | ||||||||
| Dividend payout ratio | 20.75 | % | 15.86 | % | 18.38 | % | 21.02 | % | ||||||||
| Efficiency ratio | 70.91 | % | 75.79 | % | 77.00 | % | 81.15 | % | ||||||||
| Asset Quality Data & Ratios | ||||||||||||||||
| Total nonperforming loans | $ | 913 | $ | 25 | $ | 913 | $ | 25 | ||||||||
| Total nonperforming assets | $ | 1,363 | $ | 1,849 | $ | 1,363 | $ | 1,849 | ||||||||
| Net loan charge offs | $ | 127 | $ | 30 | $ | 187 | $ | 700 | ||||||||
| Reserve for loan losses to total loans | 1.41 | % | 1.39 | % | 1.41 | % | 1.39 | % | ||||||||
| Nonperforming loans/total loans | 0.42 | % | 0.01 | % | 0.42 | % | 0.01 | % | ||||||||
| Nonperforming assets/total assets | 0.36 | % | 0.53 | % | 0.36 | % | 0.53 | % | ||||||||
| Net charge offs / average loans | 0.23 | % | 0.06 | % | 0.09 | % | 0.36 | % | ||||||||
| Capital Ratios | ||||||||||||||||
| Average common equity to average total assets | 8.39 | % | 8.68 | % | 8.41 | % | 8.99 | % | ||||||||
| Tier 1 capital ratio | 14.17 | % | 14.31 | % | 14.17 | % | 14.31 | % | ||||||||
| Tier 1 leverage ratio | 8.73 | % | 8.85 | % | 8.73 | % | 8.85 | % | ||||||||
| Total risk based capital ratio | 15.44 | % | 15.56 | % | 15.44 | % | 15.56 | % | ||||||||
| Book value per share | $ | 12.33 | $ | 11.73 | $ | 12.33 | $ | 11.73 | ||||||||
| Tangible book value per share | $ | 12.29 | $ | 11.60 | $ | 12.29 | $ | 11.60 | ||||||||
| Quarterly | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||||||||
| Averages | 2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||
| Assets | $ | 374,542 | $ | 366,206 | $ | 359,767 | $ | 362,225 | $ | 341,418 | ||||||||||
| Loans, less unearned income & discount | $ | 222,723 | $ | 221,767 | $ | 212,274 | $ | 203,106 | $ | 203,871 | ||||||||||
| Deposits | $ | 310,406 | $ | 304,131 | $ | 303,995 | $ | 306,934 | $ | 285,965 | ||||||||||
| Equity | $ | 31,436 | $ | 30,639 | $ | 30,723 | $ | 30,186 | $ | 29,624 | ||||||||||
| Return on assets | 1.05 | % | 0.71 | % | 0.64 | % | 0.62 | % | 0.75 | % | ||||||||||
| Return on equity | 12.50 | % | 8.49 | % | 7.47 | % | 7.50 | % | 8.68 | % | ||||||||||
| Net income | $ | 982 | $ | 651 | $ | 574 | $ | 566 | $ | 643 | ||||||||||
| Net income per share, basic | $ | 0.39 | $ | 0.25 | $ | 0.23 | $ | 0.22 | $ | 0.25 | ||||||||||
| Net income per share, diluted | $ | 0.39 | $ | 0.25 | $ | 0.23 | $ | 0.22 | $ | 0.25 | ||||||||||
| Dividends paid per share | $ | 0.08 | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.04 | ||||||||||