×

Southwest Georgia Financial Corporation Reports 7% Increase in Net Income for Third Quarter 2015

MOULTRIE, Ga., Oct. 22, 2015 (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, 2015.

Third Quarter and Nine-Month Income Highlights

  • Net income increased nearly 7% to $857 thousand in the third quarter of 2015, or $0.33 per diluted share, from $804 thousand, or $0.32 per diluted share, in the third quarter of 2014.
  • For the nine months ended September 30, 2015, net income was $2.5 million, or $0.99 per diluted share, a 12.9% increase from $2.2 million, or $0.88 per diluted share, for the same period in the prior year.
  • Net interest income grew 4.3% in the third quarter and 5.6% for the year-to-date period over the comparable periods of 2014, due primarily to loan growth.
  • Noninterest income declined to $1.0 million and $3.2 million for the third quarter and year-to-date period, respectively, over the comparable periods of 2014, due mostly to a decrease in income from mortgage banking services and gains on the sale of securities that benefitted the prior year.
  • Noninterest expense declined 4.2% and 2.8% in the third quarter and first nine months of 2015, respectively, due to lower personnel expenses.

Balance Sheet Trends and Asset Quality

  • Total assets at September 30, 2014 were $392.2 million, an increase of 3.0% from September 30, 2014.
  • Total loans increased $13.1 million, or 5.8%, to $239.1 million over the same period last year.
  • Total deposits grew $11.5 million, or 3.7%, to $322.8 million at September 30, 2015 from the third quarter of 2014. Deposit growth occurred in all deposit categories, but mostly in noninterest-bearing transaction accounts.
  • Assets quality remained strong with low levels of non-performing assets.

"We achieved solid results in the third quarter as we continued to execute on our strategic priorities to grow our customer base and deepen existing customer relationships," commended DeWitt Drew, President and CEO. "We continue to see strong loan growth in our local markets, while maintaining superior asset quality metrics. And, we are encouraged with the growth in our low cost deposit base which continues to support our lending activity."

Dividends

In September 2015, 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 87 consecutive years.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $392 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. 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.

SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
(Unaudited) (Audited) (Unaudited)
September 30, December 31, September 30,
2015 2014 2014
ASSETS
Cash and due from banks $ 7,741 $ 6,783 $ 7,090
Interest-bearing deposits in banks 13,557 5,776 15,024
Certificates of deposit in other banks 1,225 1,470 2,940
Investment securities available for sale 49,589 53,838 50,097
Investment securities held to maturity 61,336 61,588 58,737
Federal Home Loan Bank stock, at cost 1,614 1,560 1,830
Loans, less unearned income and discount 239,086 224,400 225,948
Allowance for loan losses (3,180) (3,114) (3,196)
Net loans 235,906 221,286 222,752
Premises and equipment 11,356 11,756 11,836
Foreclosed assets, net 0 274 299
Intangible assets 55 66 70
Bank owned life insurance 5,194 5,104 5,067
Other assets 4,648 4,779 5,021
Total assets $ 392,221 $ 374,280 $ 380,763
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
NOW accounts $ 24,823 $ 22,890 $ 22,310
Money market 99,128 99,918 97,519
Savings 29,774 28,156 29,768
Certificates of deposit $100,000 and over 25,354 31,367 25,875
Other time accounts 48,979 46,300 45,821
Total interest-bearing deposits 228,058 228,631 221,293
Noninterest-bearing deposits 94,714 81,343 89,992
Total deposits 322,772 309,974 311,285
Other borrowings 6,733 5,133 11,133
Long-term debt 23,333 22,067 22,067
Accounts payable and accrued liabilities 2,878 2,771 2,736
Total liabilities 355,716 339,945 347,221
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 26,781 25,015 24,557
Accumulated other comprehensive income (157) (561) (896)
Total 62,619 60,449 59,656
Treasury stock - at cost (**) (26,114) (26,114) (26,114)
Total shareholders' equity 36,505 34,335 33,542
Total liabilities and shareholders' equity $ 392,221 $ 374,280 $ 380,763
* 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: 2015* 2014* 2015* 2014*
Interest and fees on loans $3,215 $3,067 $9,424 $9,074
Interest and dividend on securities available for sale 278 277 867 789
Interest on securities held to maturity 360 337 1,087 1,021
Dividends on Federal Home Loan Bank stock 18 26 54 51
Interest on deposits in banks 15 6 42 40
Interest on certificates of deposit in other banks 3 9 10 27
Total interest income 3,889 3,722 11,483 11,002
Interest expense:
Interest on deposits 202 178 588 566
Interest on other borrowings 19 13 47 154
Interest on long-term debt 104 115 328 321
Total interest expense 325 306 965 1,041
Net interest income 3,564 3,416 10,518 9,961
Provision for loan losses 51 75 141 255
Net interest income after provision for losses on loans 3,513 3,341 10,377 9,706
Noninterest income:
Service charges on deposit accounts 284 307 840 963
Income from trust services 52 74 190 188
Income from retail brokerage services 82 80 281 270
Income from insurance services 331 285 1,067 992
Income from mortgage banking services 80 189 236 535
Net gain (loss) on the sale or disposition of assets 0 36 22 57
Net gain on the sale of securities 0 139 4 293
Other income 179 173 576 573
Total noninterest income 1,008 1,283 3,214 3,871
Noninterest expense:
Salary and employee benefits 1,907 2,134 5,880 6,273
Occupancy expense 299 271 855 781
Equipment expense 227 227 665 660
Data processing expense 314 282 921 839
Amortization of intangible assets 4 4 12 41
Other operating expense 708 694 2,107 2,151
Total noninterest expense 3,459 3,612 10,440 10,745
Income before income tax expense 1,062 1,012 3,152 2,832
Provision for income taxes 205 208 621 590
Net income $857 $804 $2,531 $2,242
Net income per share, basic $0.33 $0.32 $0.99 $0.88
Net income per share, diluted $0.33 $0.32 $0.99 $0.88
Dividends paid per share $0.10 $0.08 $0.30 $0.24
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 2015 2014
Assets $392,221 $380,763
Loans, less unearned income & discount $239,086 $225,948
Deposits $322,772 $311,285
Shareholders' equity $36,505 $33,542
Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Performance Data & Ratios
Net income $857 $804 $2,531 $2,242
Earnings per share, basic $0.33 $0.32 $0.99 $0.88
Earnings per share, diluted $0.33 $0.32 $0.99 $0.88
Dividends paid per share $0.10 $0.08 $0.30 $0.24
Return on assets 0.87% 0.86% 0.85% 0.78%
Return on equity 9.48% 9.57% 9.46% 9.08%
Net interest margin (tax equivalent) 4.10% 4.14% 4.06% 3.98%
Dividend payout ratio 29.72% 25.37% 30.20% 27.28%
Efficiency ratio 72.27% 74.08% 72.70% 74.82%
Asset Quality Data & Ratios
Total nonperforming loans $1,359 $998 $1,359 $998
Total nonperforming assets $1,359 $1,297 $1,359 $1,297
Net loan charge offs $51 $6 $75 $143
Reserve for loan losses to total loans 1.33% 1.41% 1.33% 1.41%
Nonperforming loans/total loans 0.57% 0.44% 0.57% 0.44%
Nonperforming assets/total assets 0.35% 0.34% 0.35% 0.34%
Net charge offs / average loans 0.09% 0.01% 0.04% 0.09%
Capital Ratios
Average common equity to average total assets 9.17% 8.97% 9.02% 8.61%
Common equity Tier 1 capital ratio 14.41% 14.31% 14.41% 14.31%
Tier 1 capital ratio 14.41% 14.31% 14.41% 14.31%
Tier 1 leverage ratio 9.29% 9.18% 9.29% 9.18%
Total risk based capital ratio 15.66% 15.56% 15.66% 15.56%
Book value per share $14.33 $13.16 $14.33 $13.16
Tangible book value per share $14.31 $13.14 $14.31 $13.14
Quarterly 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Averages 2015 2015 2015 2014 2014
Assets $394,441 $396,762 $395,220 $381,239 $374,509
Loans, less unearned income & discount $238,023 $233,464 $225,665 $223,906 $225,934
Deposits $327,072 $329,869 $330,394 $313,595 $309,953
Equity $36,154 $35,687 $35,134 $34,186 $33,579
Return on assets 0.87% 0.87% 0.82% 0.69% 0.86%
Return on equity 9.48% 9.69% 9.21% 7.75% 9.57%
Net income $857 $865 $809 $662 $804
Net income per share, basic $0.33 $0.34 $0.32 $0.26 $0.32
Net income per share, diluted $0.33 $0.34 $0.32 $0.26 $0.32
Dividends paid per share $0.10 $0.10 $0.10 $0.08 $0.08

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

Source:Southwest Georgia Financial Corporation