Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SOUTHWEST GEORGIA FINANCIAL CORP | sgfc8k072116.htm |
News Release
INVESTOR AND MEDIA CONTACT:
George R. Kirkland
Executive Vice President, CFO, and Treasurer
Phone: (229) 873-3830
investorinfo@sgfc.com
For Immediate Release
Southwest Georgia Financial Corporation Reports
17% Increase in Net Income
for the 2016 Second Quarter
MOULTRIE, GEORGIA, July 21, 2016 -- Southwest Georgia Financial Corporation (the “Corporation”) (NYSE MKT: SGB), a full-service community bank holding company, today reported its results of operations for the second quarter ended June 30, 2016.
Second Quarter and Six-Month Income Highlights
| · | Second quarter net income increased 17% to $1.0 million, or $0.40 per diluted share, from $865 thousand, or $0.34 per diluted share. Net interest income improved 9% to $3.9 million when compared with last year’s second quarter due primarily to higher interest income and fees on loans. |
| · | For the six months ended June 30, 2016, net income was $2.1 million, or $0.81 per diluted share, up 23% from $1.7 million, or $0.66 per diluted share, for the same period in 2015. The increase was driven by continued loan growth and pricing discipline on deposits. |
Balance Sheet Trends and Asset Quality
| · |
Total assets at June 30, 2016, were $422.5 million, up 8% from $391.0 million at June 30, 2015. The increase in assets and change in asset mix reflects loan growth that was funded by increased deposits, reallocated funds from the investment portfolio, and an increase in Federal Home Loan Bank borrowings. |
| · | Total loans increased $51.3 million, or 22%, to $288.0 million from the second quarter 2015 and were up over 14% from year-end 2015. |
| · | Total deposits were up $22.2 million, or 7%, to $344.0 million at June 30, 2016, compared with the prior year. While deposit growth lagged loan growth, noninterest-bearing deposits increased over 21% to $109.5 million year-over-year. |
| · | Nonperforming loans were $665 thousand at the end of the second quarter, down $393 thousand from a year ago. |
Capital Management
| · | Tangible book value per share at June 30, 2016, was $15.11, up from $13.92 at June 30, 2015. |
“Investments in expanding our footprint and deepening relationships in the communities we serve are paying off. Loans were up over $50 million in the past year and net income increased measurably for the second quarter and first half of 2016,” commented DeWitt Drew, President and CEO. “The results from our expansion in the Valdosta market are very favorable with a significant portion of the loan growth coming from this market. We are also seeing favorable results from our recent entry into the Tifton market. Looking to the rest of 2016, we are in an excellent position to continue to build on our strong franchise and win greater customer share in our markets.”
Dividends
In June 2016, the Corporation paid a quarterly cash dividend of $0.10 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 88 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $422 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 and a loan production office located in Tift 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 Corporation’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 Corporation’s actual results to differ materially from such statements, please refer to the Corporation’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 Corporation 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) | (Unaudited) | ||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 5,835 | $ | 6,157 | $ | 7,178 | ||||||
| Interest-bearing deposits in banks | 7,687 | 24,923 | 13,863 | |||||||||
| Certificates of deposit in other banks | 0 | 245 | 1,470 | |||||||||
| Investment securities available for sale | 43,055 | 51,476 | 49,313 | |||||||||
| Investment securities held to maturity | 57,701 | 60,889 | 62,373 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,905 | 1,869 | 1,662 | |||||||||
| Loans, less unearned income and discount | 288,030 | 250,786 | 236,762 | |||||||||
| Allowance for loan losses | (3,113 | ) | (3,032 | ) | (3,180 | ) | ||||||
| Net loans | 284,917 | 247,754 | 233,582 | |||||||||
| Premises and equipment | 11,080 | 11,158 | 11,541 | |||||||||
| Foreclosed assets, net | 82 | 82 | 102 | |||||||||
| Intangible assets | 43 | 51 | 58 | |||||||||
| Bank owned life insurance | 5,295 | 5,231 | 5,157 | |||||||||
| Other assets | 4,865 | 5,020 | 4,696 | |||||||||
| Total assets | $ | 422,465 | $ | 414,855 | $ | 390,995 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 28,384 | $ | 25,383 | $ | 24,814 | ||||||
| Money market | 94,093 | 108,226 | 99,243 | |||||||||
| Savings | 29,650 | 27,721 | 29,146 | |||||||||
| Certificates of deposit $100,000 and over | 33,568 | 25,189 | 28,998 | |||||||||
| Other time accounts | 48,817 | 50,728 | 49,375 | |||||||||
| Total interest-bearing deposits | 234,512 | 237,247 | 231,576 | |||||||||
| Noninterest-bearing deposits | 109,504 | 101,769 | 90,251 | |||||||||
| Total deposits | 344,016 | 339,016 | 321,827 | |||||||||
| Other borrowings | 7,591 | 7,591 | 9,133 | |||||||||
| Long-term debt | 28,476 | 28,476 | 22,067 | |||||||||
| Accounts payable and accrued liabilities | 3,839 | 3,675 | 2,436 | |||||||||
| Total liabilities | 383,922 | 378,758 | 355,463 | |||||||||
| 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 | 28,919 | 27,369 | 26,179 | |||||||||
| Accumulated other comprehensive income | (257 | ) | (1,153 | ) | (528 | ) | ||||||
| Total | 64,657 | 62,211 | 61,646 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 38,543 | 36,097 | 35,532 | |||||||||
| Total liabilities and shareholders' equity | $ | 422,465 | $ | 414,855 | $ | 390,995 | ||||||
| * 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 | |||||||||
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED INCOME STATEMENT (unaudited*)
(Dollars in thousands except per share data)
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| Interest income: | 2016* | 2015* | 2016* | 2015* | ||||||||||||
| Interest and fees on loans | $ | 3,657 | $ | 3,208 | $ | 7,232 | $ | 6,209 | ||||||||
| Interest and dividend on securities available for sale | 250 | 289 | 550 | 588 | ||||||||||||
| Interest on securities held to maturity | 340 | 368 | 689 | 726 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | 23 | 17 | 46 | 36 | ||||||||||||
| Interest on deposits in banks | 17 | 13 | 39 | 27 | ||||||||||||
| Interest on certificates of deposit in other banks | 0 | 3 | 0 | 7 | ||||||||||||
| Total interest income | 4,287 | 3,898 | 8,556 | 7,593 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 226 | 196 | 433 | 386 | ||||||||||||
| Interest on other borrowings | 24 | 15 | 47 | 29 | ||||||||||||
| Interest on long-term debt | 144 | 113 | 289 | 224 | ||||||||||||
| Total interest expense | 394 | 324 | 769 | 639 | ||||||||||||
| Net interest income | 3,893 | 3,574 | 7,787 | 6,954 | ||||||||||||
| Provision for loan losses | 40 | 45 | 70 | 90 | ||||||||||||
| Net interest income after provision for losses on loans | 3,853 | 3,529 | 7,717 | 6,864 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 255 | 264 | 532 | 556 | ||||||||||||
| Income from trust services | 51 | 68 | 103 | 138 | ||||||||||||
| Income from retail brokerage services | 88 | 104 | 168 | 198 | ||||||||||||
| Income from insurance services | 342 | 347 | 814 | 736 | ||||||||||||
| Income from mortgage banking services | 92 | 78 | 183 | 156 | ||||||||||||
| Net gain (loss) on the sale or disposition of assets | (1 | ) | 3 | (1 | ) | 22 | ||||||||||
| Net gain on the sale of securities | 84 | 4 | 112 | 4 | ||||||||||||
| Other income | 186 | 177 | 412 | 396 | ||||||||||||
| Total noninterest income | 1,097 | 1,045 | 2,323 | 2,206 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salary and employee benefits | 2,178 | 1,963 | 4,354 | 3,972 | ||||||||||||
| Occupancy expense | 279 | 276 | 567 | 556 | ||||||||||||
| Equipment expense | 228 | 220 | 450 | 438 | ||||||||||||
| Data processing expense | 311 | 314 | 654 | 607 | ||||||||||||
| Amortization of intangible assets | 4 | 4 | 8 | 8 | ||||||||||||
| Other operating expense | 680 | 716 | 1,375 | 1,399 | ||||||||||||
| Total noninterest expense | 3,680 | 3,493 | 7,408 | 6,980 | ||||||||||||
| Income before income tax expense | 1,270 | 1,081 | 2,632 | 2,090 | ||||||||||||
| Provision for income taxes | 259 | 216 | 573 | 417 | ||||||||||||
| Net income | $ | 1,011 | $ | 865 | $ | 2,059 | $ | 1,673 | ||||||||
| Net income per share, basic | $ | 0.40 | $ | 0.34 | $ | 0.81 | $ | 0.66 | ||||||||
| Net income per share, diluted | $ | 0.40 | $ | 0.34 | $ | 0.81 | $ | 0.66 | ||||||||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | ||||||||
| 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 | ||||||||||||
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
| At June 30 | 2016 | 2015 | ||||||
| Assets | $ | 422,465 | $ | 390,995 | ||||
| Loans, less unearned income & discount | $ | 288,030 | $ | 236,762 | ||||
| Deposits | $ | 344,016 | $ | 321,827 | ||||
| Shareholders' equity | $ | 38,543 | $ | 35,532 | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Performance Data & Ratios | ||||||||||||||||
| Net income | $ | 1,011 | $ | 865 | $ | 2,059 | $ | 1,673 | ||||||||
| Earnings per share, basic | $ | 0.40 | $ | 0.34 | $ | 0.81 | $ | 0.66 | ||||||||
| Earnings per share, diluted | $ | 0.40 | $ | 0.34 | $ | 0.81 | $ | 0.66 | ||||||||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | ||||||||
| Return on assets | 0.96 | % | 0.87 | % | 0.99 | % | 0.85 | % | ||||||||
| Return on equity | 10.63 | % | 9.69 | % | 10.96 | % | 9.45 | % | ||||||||
| Net interest margin (tax equivalent) | 4.21 | % | 4.12 | % | 4.25 | % | 4.04 | % | ||||||||
| Dividend payout ratio | 25.19 | % | 29.47 | % | 24.75 | % | 30.45 | % | ||||||||
| Efficiency ratio | 70.69 | % | 72.29 | % | 70.27 | % | 72.92 | % | ||||||||
| Asset Quality Data & Ratios | ||||||||||||||||
| Total nonperforming loans | $ | 665 | $ | 1,058 | $ | 665 | $ | 1,058 | ||||||||
| Total nonperforming assets | $ | 747 | $ | 1,167 | $ | 747 | $ | 1,167 | ||||||||
| Net loan charge offs | $ | (7 | ) | $ | (1 | ) | $ | (10 | ) | $ | 24 | |||||
| Reserve for loan losses to total loans | 1.08 | % | 1.34 | % | 1.08 | % | 1.34 | % | ||||||||
| Nonperforming loans/total loans | 0.23 | % | 0.45 | % | 0.23 | % | 0.45 | % | ||||||||
| Nonperforming assets/total assets | 0.18 | % | 0.30 | % | 0.18 | % | 0.30 | % | ||||||||
| Net charge offs / average loans | (0.01 | )% | 0.00 | % | (0.01 | )% | 0.02 | % | ||||||||
| Capital Ratios | ||||||||||||||||
| Average common equity to average total assets | 9.05 | % | 8.99 | % | 8.99 | % | 8.94 | % | ||||||||
| Common equity Tier 1 capital ratio | 13.28 | % | 14.26 | % | 13.28 | % | 14.26 | % | ||||||||
| Tier 1 capital ratio | 13.28 | % | 14.26 | % | 13.28 | % | 14.26 | % | ||||||||
| Tier 1 leverage ratio | 9.22 | % | 9.08 | % | 9.22 | % | 9.08 | % | ||||||||
| Total risk based capital ratio | 14.35 | % | 15.51 | % | 14.35 | % | 15.51 | % | ||||||||
| Book value per share | $ | 15.13 | $ | 13.95 | $ | 15.13 | $ | 13.95 | ||||||||
| Tangible book value per share | $ | 15.11 | $ | 13.92 | $ | 15.11 | $ | 13.92 | ||||||||
| Quarterly | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||||||||||
| Averages | 2016 | 2016 | 2015 | 2015 | 2015 | |||||||||||||||
| Assets | $ | 420,685 | $ | 415,168 | $ | 407,924 | $ | 394,441 | $ | 396,762 | ||||||||||
| Loans, less unearned income & discount | $ | 279,543 | $ | 262,715 | $ | 246,353 | $ | 238,023 | $ | 233,464 | ||||||||||
| Deposits | $ | 341,569 | $ | 338,399 | $ | 337,194 | $ | 327,072 | $ | 329,869 | ||||||||||
| Equity | $ | 38,080 | $ | 37,097 | $ | 36,833 | $ | 36,154 | $ | 35,687 | ||||||||||
| Return on assets | 0.96 | % | 1.01 | % | 0.83 | % | 0.87 | % | 0.87 | % | ||||||||||
| Return on equity | 10.63 | % | 11.30 | % | 9.16 | % | 9.48 | % | 9.69 | % | ||||||||||
| Net income | $ | 1,011 | $ | 1,048 | $ | 843 | $ | 857 | $ | 865 | ||||||||||
| Net income per share, basic | $ | 0.40 | $ | 0.41 | $ | 0.33 | $ | 0.33 | $ | 0.34 | ||||||||||
| Net income per share, diluted | $ | 0.40 | $ | 0.41 | $ | 0.33 | $ | 0.33 | $ | 0.34 | ||||||||||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||||