AUGUSTA, Ga., Oct. 31, 2014 (GLOBE NEWSWIRE) -- Southeastern Bank Financial Corp. (OTCQB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta, today reported record quarterly net income of $4.4 million for the three months ended Sept. 30, 2014, or $0.65 in diluted earnings per share, compared to $4.2 million, or $0.63 in diluted earnings per share, in the third quarter of 2013.
"We are pleased to report record earnings for the quarter driven by growth in loans, deposits and noninterest income," said President and Chief Operating Officer Ronald L. Thigpen. "Our performance continues to be very consistent from quarter to quarter. We, as well as the rest of the industry, continue to be challenged by the current low interest rate environment and its impact on the net interest margin. Our return on assets of 0.99 percent and return on equity of 11.74 percent continue to reflect excellent performance for a bank our size."
Total assets at Sept. 30, 2014, were $1.8 billion, an increase of $63.4 million from Dec. 31, 2013. Loans outstanding at the end of the third quarter were $978.6 million, an increase of $62.3 million or 6.8 percent from Dec. 31, 2013, and an increase of $78.1 million from Sept. 30, 2013. Total deposits were $1.5 billion at Sept. 30, 2014, an increase of $45.1 million from Dec. 31, 2013, and an increase of $58.3 million from Sept. 30, 2013. Cash and cash equivalents totaled $45.0 million at the end of the third quarter of 2014.
Net interest income for the third quarter of 2014 totaled $13.1 million, a slight decrease from $13.2 million for the same period in 2013. Noninterest income for the third quarter totaled $5.2 million, a 7.3 percent increase from $4.9 million for the same period a year ago. Noninterest expense was $11.1 million in the third quarter of 2014, an 8.2 percent increase from a year ago, as a result of increased salary and benefit costs.
The net interest margin was 3.16 percent for the quarter-ended Sept. 30, 2014, compared to 3.18 percent at the end of the second quarter of 2014, and 3.31 percent for the same quarter a year ago. Annualized return on average assets (ROA) was 0.99 percent for the third quarter of 2014, maintaining the level from the same period a year ago, and annualized return on average shareholder's equity (ROE) was 11.74 percent, a decrease from 12.84 percent in the third quarter of 2013.
Nonperforming assets at Sept. 30, 2014, were 1.09 percent of total assets, compared to 1.58 percent at Dec. 31, 2013, 1.28 percent at June 30, 2014 and 1.78 percent at Sept. 30, 2013. Net charge-offs for the third quarter of 2014 totaled 0.43 percent of average loans on an annualized basis, compared to 0.68 percent annualized at Dec. 31, 2013, 0.18 percent annualized in the second quarter of 2014 and 1.17 percent annualized in the third quarter of 2013. The company held $1.4 million in OREO at Sept. 30, 2014, compared to $1.0 million at Dec. 31, 2013, $1.5 million at June 30, 2014 and $1.2 million at Sept. 30, 2013.
The company's loan-loss provision expense was $876 thousand in the third quarter of 2014, compared to $1.0 million in the second quarter of 2014 and $1.9 million in the third quarter a year ago. The loan-loss provision for the first nine months of 2014 was $2.9 million, a 51.3 percent decrease from the loan-loss provision of $6.0 million for the same period in 2013. The allowance for loan losses at Sept. 30, 2014, was $26.7 million, or 2.79 percent of loans outstanding, compared to $26.9 million, or 2.80 percent of loans outstanding, at June 30, 2014, and $26.6 million, or 2.99 percent of loans outstanding, at Sept. 30, 2013.
Net income for the nine months ended Sept. 30, 2014, totaled $12.2 million, compared to net income of $12.0 million from the same period of 2013. Diluted earnings per share for the first nine months of 2014 were $1.83, a 2.2 percent increase from $1.79 per share earned in the same period a year ago.
Net interest income for the first nine months of 2014 was $38.7 million, a 2.7 percent decrease from $39.7 million in the first nine months of 2013. Noninterest income was $13.8 million for the first nine months of 2014, a 7.2 percent decrease from $14.9 million in the same period of 2013. Noninterest expense was $31.8 million for the nine-month period ended Sept. 30, 2014, a 1.7 percent increase from $31.3 million in the same period in 2013.
"We are optimistic about growth opportunities in the local economy. With our excellent and steady profitability, we will continue to focus on increases in loan growth and noninterest income," said Thigpen.
On October 15, 2014, the company's Board of Directors declared a regular quarterly cash dividend of $0.13 per share of common stock payable on November 21, 2014, to shareholders of record as of November 7, 2014. Based on the share price of $25.75 at the close of business on Thursday, October 30, 2014, this dividend represents an annualized yield to shareholders of 2.02 percent.
Also, On October 15, 2014, the company's Board of Directors announced a Stock Repurchase Program, pursuant to which it will, from time to time, repurchase up to 300,000 shares of its outstanding common stock in the open market or in private transactions. This program replaces the company's prior Stock Repurchase Program which commenced in 2004 and authorized the repurchase of up to 100,000 shares of common stock.
About Southeastern Bank Financial Corp.
Southeastern Bank Financial Corp. is the $1.8 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 provide 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, acquisitions and capital; 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.
|SOUTHEASTERN BANK FINANCIAL CORPORATION|
|Consolidated Balance Sheets|
|(Dollars in thousands, except share data)|
|Cash and due from banks||$ 41,662||$ 36,766|
|Interest-bearing deposits in other banks||3,314||10,570|
|Cash and cash equivalents||44,976||47,336|
|Loans held for sale||21,321||10,638|
|Less allowance for loan losses||26,734||26,409|
|Premises and equipment, net||27,233||27,003|
|Accrued interest receivable||6,165||6,221|
|Bank-owned life insurance||36,621||35,745|
|Restricted equity securities||4,398||4,870|
|Other real estate owned||1,384||1,014|
|Deferred tax asset||16,496||21,023|
|$ 1,752,760||$ 1,689,326|
|Liabilities and Stockholders' Equity|
|Noninterest-bearing||$ 200,329||$ 187,287|
|Money management accounts||20,351||16,065|
|Time deposits of $100,000 or more||301,335||293,004|
|Other time deposits||78,837||84,992|
|Securities sold under repurchase agreements||565||808|
|Advances from Federal Home Loan Bank||64,000||64,000|
|Accrued interest payable and other liabilities||17,154||16,599|
|Due to broker||1,527||--|
| Preferred stock, no par value; 10,000,000 shares authorized; |
0 shares outstanding in 2014 and 2013, respectively
| Common stock, $3.00 par value; 10,000,000 shares authorized; |
6,744,891 and 6,680,225 shares issued in 2014 and 2013, respectively;
6,743,755 and 6,679,982 shares outstanding in 2014 and 2013, respectively
|Additional paid-in capital||62,980||62,863|
|Treasury stock, at cost; 1,136 and 243 shares in 2014 and 2013, respectively||(28)||(3)|
|Accumulated other comprehensive loss, net||(1,983)||(10,101)|
|Total stockholders' equity||149,583||131,569|
|$ 1,752,760||$ 1,689,326|
|SOUTHEASTERN BANK FINANCIAL CORPORATION|
|Consolidated Statements of Comprehensive Income (Loss)|
|(Dollars in thousands, except share data)|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Loans, including fees||$ 11,711||$ 11,668||$ 34,632||$ 35,103|
|Interest-bearing deposits in other banks||14||13||47||50|
|Total interest income||15,243||15,556||45,349||46,907|
|Securities sold under repurchase agreements||1||4||4||6|
|Total interest expense||2,187||2,326||6,691||7,186|
|Net interest income||13,056||13,230||38,658||39,721|
|Provision for loan losses||876||1,887||2,944||6,046|
|Net interest income after provision for loan losses||12,180||11,343||35,714||33,675|
|Service charges and fees on deposits||1,903||1,849||5,324||5,317|
|Gain on sales of loans||1,718||1,659||3,910||5,716|
|Gain on sale of fixed assets, net||15||--||27||21|
|Investment securities gains (losses), net||215||(163)||492||(192)|
|Retail investment income||520||557||1,608||1,545|
|Trust service fees||328||301||970||890|
|Earnings from cash surrender value of bank-owned life insurance||317||326||876||897|
|Total noninterest income||5,216||4,862||13,830||14,902|
|Salaries and other personnel expense||6,291||5,713||18,205||18,051|
|Other real estate losses, net||239||11||226||628|
|Other operating expenses||3,498||3,550||10,420||9,769|
|Total noninterest expense||11,055||10,214||31,809||31,262|
|Income before income taxes||6,341||5,991||17,735||17,315|
|Income tax expense||1,959||1,789||5,503||5,334|
|Net income||$ 4,382||$ 4,202||$ 12,232||$ 11,981|
|Other comprehensive income (loss):|
|Unrealized gain (loss) on derivatives||(27)||179||(670)||1,304|
|Unrealized gain (loss) on securities available-for-sale||(849)||(5,023)||14,449||(24,857)|
|Reclassification adjustment for realized (gain) loss on securities, net of OTTI||(215)||163||(492)||192|
|Total other comprehensive income (loss)||(667)||(2,860)||8,118||(14,273)|
|Comprehensive income (loss)||$ 3,715||$ 1,342||$ 20,350||$ (2,292)|
|Basic net income per share||$ 0.66||$ 0.63||$ 1.83||$ 1.79|
|Diluted net income per share||$ 0.65||$ 0.63||$ 1.83||$ 1.79|
|Weighted average common shares outstanding||6,681,743||6,679,426||6,681,214||6,678,555|
|Weighted average number of common and common equivalent shares outstanding||6,694,528||6,679,426||6,687,056||6,678,555|
CONTACT: Ronald L. Thigpen President and COO Southeastern Bank Financial Corp. 706-481-1014Source:Southeastern Bank Financial Corp.