×

Southwest Georgia Financial Corporation Reports 24% Increase in Net Income for Third Quarter 2014

MOULTRIE, Ga., Oct. 22, 2014 (GLOBE NEWSWIRE) -- Southwest Georgia Financial Corporation (the "Corporation") (NYSE MKT:SGB), a full-service community bank holding company, today reported its results of operations for the third quarter ended September 30, 2014.

Third Quarter and Nine-Month Income Highlights

  • Net income increased 24% to $804 thousand in the third quarter of 2014, or $0.32 per diluted share, from $651 thousand, or $0.25 per diluted share, in the third quarter of 2013.
  • For the nine months ended September 30, 2014, net income was $2.2 million, or $0.88 per diluted share, a 25% increase from $1.8 million, or $0.70 per diluted share, for the same period in the prior year.
  • Net interest income grew approximately 5% in both the third quarter and year-to-date period over the comparable periods of 2013, due to lower deposit costs combined with increased revenue from a higher volume of earning assets.
  • Noninterest income improved slightly to $1.3 million and $3.9 million for the third quarter and year-to-date period, respectively, over the comparable periods of 2013.

Balance Sheet Trends and Asset Quality

  • Total assets at September 30, 2014 were $381 million, an increase of 2.4% from September 30, 2013.
  • Total loans increased 2.0% to $226 million over the same period last year, even as the wind down of loans retained from the Company's mortgage banking subsidiary, Empire Financial, continues.
  • Total deposits grew $2.6 million, or 1.0%, to $311 million at September 30, 2014, from the third quarter of 2013. Net deposit growth was primarily in noninterest-bearing transaction accounts.
  • Assets quality remains strong with extraordinarily low levels of non-performing assets.

DeWitt Drew, President and CEO, commented, "We delivered another strong quarter with solid earnings growth. Our low cost deposit base continues to be put to work to support lending in our communities while maintaining our high credit standards. Strong loan growth in our local markets successfully replaced the decline in loans retained from our mortgage banking subsidiary, Empire Financial, as that portfolio winds down. The loans retained from Empire were $14 million at quarter end, down from $24 million this time last year."

Dividends

In September 2014, the Corporation paid a quarterly cash dividend of $0.08 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 86 consecutive years.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $381 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 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.

SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
(Unaudited) (Audited) (Unaudited)
September 30, December 31, September 30,
2014 2013 2013
ASSETS
Cash and due from banks $ 7,090 $ 7,074 $ 7,390
Interest-bearing deposits in banks 15,024 28,296 25,103
Certificates of deposit in other banks 2,940 3,430 4,165
Investment securities available for sale 50,097 36,461 33,212
Investment securities held to maturity 58,737 59,624 60,391
Federal Home Loan Bank stock, at cost 1,830 1,721 1,721
Loans, less unearned income and discount 225,948 218,688 221,492
Allowance for loan losses (3,196) (3,078) (3,099)
Net loans 222,752 215,610 218,393
Premises and equipment 11,836 10,336 10,117
Foreclosed assets, net 299 406 581
Intangible assets 70 111 165
Bank owned life insurance 5,067 4,980 4,935
Other assets 5,021 5,846 5,820
Total assets $ 380,763 $ 373,895 $ 371,993
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
NOW accounts $ 22,310 $ 23,088 $ 21,499
Money market 97,519 89,934 83,865
Savings 29,768 28,792 29,291
Certificates of deposit $100,000 and over 25,875 36,956 41,578
Other time accounts 45,821 49,836 50,586
Total interest-bearing deposits 221,293 228,606 226,819
Noninterest-bearing deposits 89,992 81,829 81,838
Total deposits 311,285 310,435 308,657
Other borrowings 11,133 11,800 10,000
Long-term debt 22,067 17,200 19,000
Accounts payable and accrued liabilities 2,736 3,040 3,530
Total liabilities 347,221 342,475 341,187
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 24,557 22,927 22,148
Accumulated other comprehensive income (896) (1,388) (1,223)
Total 59,656 57,534 56,920
Treasury stock - at cost (**) (26,114) (26,114) (26,114)
Total shareholders' equity 33,542 31,420 30,806
Total liabilities and shareholders' equity $ 380,763 $ 373,895 $ 371,993
* 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 Nine Months
Ended September 30, Ended September 30,
Interest income: 2014* 2013* 2014* 2013*
Interest and fees on loans $ 3,067 $ 3,104 $ 9,074 $ 9,057
Interest and dividend on securities available for sale 277 164 789 495
Interest on securities held to maturity 337 347 1,021 1,079
Dividends on Federal Home Loan Bank stock 26 10 51 27
Interest on deposits in banks 6 13 40 49
Interest on certificates of deposit in other banks 9 11 27 32
Total interest income 3,722 3,649 11,002 10,739
Interest expense:
Interest on deposits 178 209 566 669
Interest on other borrowings 13 103 154 197
Interest on long-term debt 115 92 321 374
Total interest expense 306 404 1,041 1,240
Net interest income 3,416 3,245 9,961 9,499
Provision for loan losses 75 105 255 315
Net interest income after provision for losses on loans 3,341 3,140 9,706 9,184
Noninterest income:
Service charges on deposit accounts 307 338 963 925
Income from trust services 74 61 188 164
Income from retail brokerage services 80 88 270 255
Income from insurance services 285 308 992 979
Income from mortgage banking services 189 205 535 702
Net gain (loss) on the sale or disposition of assets 36 (11) 57 (68)
Net gain on the sale of securities 139 0 293 0
Other income 173 174 573 560
Total noninterest income 1,283 1,163 3,871 3,517
Noninterest expense:
Salary and employee benefits 2,134 2,114 6,273 6,291
Occupancy expense 271 266 781 773
Equipment expense 227 224 660 684
Data processing expense 282 278 839 826
Amortization of intangible assets 4 54 41 162
Other operating expense 694 636 2,151 2,013
Total noninterest expense 3,612 3,572 10,745 10,749
Income before income tax expense 1,012 731 2,832 1,952
Provision for income taxes 208 80 590 162
Net income $ 804 $ 651 $ 2,242 $ 1,790
Net income per share, basic $ 0.32 $ 0.25 $ 0.88 $ 0.70
Net income per share, diluted $ 0.32 $ 0.25 $ 0.88 $ 0.70
Dividends paid per share $ 0.08 $ 0.04 $ 0.24 $ 0.12
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 September 30 2014 2013
Assets $ 380,763 $ 371,993
Loans, less unearned income & discount $ 225,948 $ 221,492
Deposits $ 311,285 $ 308,657
Shareholders' equity $ 33,542 $ 30,806
Three Months Ended September 30, Nine Months Ended September 30,
2014 2013 2014 2013
Performance Data & Ratios
Net income $ 804 $ 651 $ 2,242 $ 1,790
Earnings per share, basic $ 0.32 $ 0.25 $ 0.88 $ 0.70
Earnings per share, diluted $ 0.32 $ 0.25 $ 0.88 $ 0.70
Dividends paid per share $ 0.08 $ 0.04 $ 0.24 $ 0.12
Return on assets 0.86% 0.71% 0.78% 0.66%
Return on equity 9.57% 8.49% 9.08% 7.82%
Net interest margin (tax equivalent) 4.14% 4.04% 3.98% 4.03%
Dividend payout ratio 25.37% 15.66% 27.28% 17.08%
Efficiency ratio 74.08% 77.83% 74.82% 79.29%
Asset Quality Data & Ratios
Total nonperforming loans $ 998 $ 1,134 $ 998 $ 1,134
Total nonperforming assets $ 1,297 $ 1,890 $ 1,297 $ 1,890
Net loan charge offs $ 12 $ 55 $ 143 $ 61
Reserve for loan losses to total loans 1.41% 1.40% 1.41% 1.40%
Nonperforming loans/total loans 0.44% 0.51% 0.44% 0.51%
Nonperforming assets/total assets 0.34% 0.51% 0.34% 0.51%
Net charge offs / average loans 0.02% 0.10% 0.09% 0.04%
Capital Ratios
Average common equity to average total assets 8.97% 8.37% 8.61% 8.41%
Tier 1 capital ratio 14.31% 13.68% 14.31% 13.68%
Tier 1 leverage ratio 9.18% 8.71% 9.18% 8.71%
Total risk based capital ratio 15.56% 14.98% 15.56% 14.98%
Book value per share $ 13.16 $ 12.09 $ 13.16 $ 12.09
Tangible book value per share $ 13.14 $ 12.03 $ 13.14 $ 12.03
Quarterly 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Averages 2014 2014 2014 2013 2013
Assets $ 374,509 $ 384,745 $ 387,889 $ 374,542 $ 366,206
Loans, less unearned income & discount $ 225,934 $ 223,348 $ 219,971 $ 222,723 $ 221,767
Deposits $ 309,953 $ 326,773 $ 322,888 $ 310,406 $ 304,131
Equity $ 33,579 $ 32,926 $ 32,184 $ 31,436 $ 30,639
Return on assets 0.86% 0.77% 0.72% 1.05% 0.71%
Return on equity 9.57% 8.95% 8.71% 12.50% 8.49%
Net income $ 804 $ 737 $ 701 $ 982 $ 651
Net income per share, basic $ 0.32 $ 0.29 $ 0.28 $ 0.39 $ 0.25
Net income per share, diluted $ 0.32 $ 0.29 $ 0.28 $ 0.39 $ 0.25
Dividends paid per share $ 0.08 $ 0.08 $ 0.08 $ 0.08 $ 0.04

CONTACT: INVESTOR AND MEDIA CONTACT: George R. Kirkland Executive Vice President and Treasurer Phone: (229) 873-3830 investorinfo@sgfc.com

Source:Southwest Georgia Financial Corporation