SouthCrest Financial Group Reports Preliminary 1Q13 Financial Results

PEACHTREE CITY, Ga., May 1, 2013 (GLOBE NEWSWIRE) -- Kenneth H. Maloy, President and CEO of SouthCrest Financial Group, Inc. (OTCBB:SCSG) announced today that the Company reported preliminary results for the first quarter of 2013, including a net loss of $1.1 million. Total assets grew from $558.3 million to $559.6 million in the quarter, with non-interest bearing checking balances increasing 12% on a linked quarter annualized (LQA) basis from $110.8 million to $114.1 million. The increase in other low cost, transaction account balances drove the cost of funds down to 0.40% for 1Q13 from 0.45% in 4Q12.

Credit costs were primarily responsible for the loss during the first quarter with two separate events (including the Company's largest single loan) that resulted in just over $700 thousand dollars of expense during the quarter. The Tier 1 Leverage ratio ended the quarter at 8.93% or $49.3 million, down just slightly from the year end 2012 balance of $49.4 million. Tangible book value on a fully diluted basis (including the conversion of all Series AAA Preferred and Series C Convertible Preferred equity) ended the quarter at $7.83 per share.

While total loans (excluding loss share covered assets) fell 4.5% LQA, balances increased month to month during February and March, and Management believes the Company's loan pipeline is in its best position in years. The improved pipeline is primarily a result of SouthCrest Bank adding three highly experienced lenders in its higher growth geographies of Forsyth and Fayette counties, where the Company will continue to focus its loan production efforts.

The Company also continued to work through its FDIC loss share covered assets, with the net loan balance shrinking by 13% LQA. The FDIC Indemnification Asset declined by 9.7% from 4Q12 to 1Q13 (39% LQA) and now stands at $8.6 million with nearly two full years remaining on the commercial portfolio loss sharing agreement. Year over year, the indemnification asset declined from $11.6 million to $8.6 million.

Finally, the Company's TARP shares were auctioned by the U.S. Treasury to various accredited private investors in an auction that was completed on March 11, 2013.

SouthCrest Financial Group, Inc. is a $560 million asset bank holding company headquartered in Peachtree City, Georgia. The company operates a 14 branch network throughout Georgia and Alabama through its four subsidiary banks: SouthCrest Bank, The First National Bank of Polk County, Peachtree Bank and Bank of Chickamauga. The banks provide retail and commercial banking services, mortgage banking, investment management, and online banking services.

This presentation may contain certain "forward-looking statements" that are subject to risks, uncertainties, and other factors that could cause actual results and shareholder values to differ materially from those projected. Factors that could cause or contribute to such differences include economic conditions, government regulation and legislation, changes in interest rates, credit quality, competition, and other risk factors.

SouthCrest Financial Group
Unaudited Financial Highlights
($000s)
3/31/2012 12/31/2012 3/31/2013
Total Assets 591,243 558,266 559,627
Total Core Loans ** 277,735 241,571 238,822
Allowance for Loan Losses 7,388 5,719 5,486
Total Deposits 522,736 495,694 497,221
Total Equity 57,117 52,518 52,488
Tier 1 Leverage Ratio (%) 9.34% 8.83% 8.93%
Non Performing Assets ** 26,856 11,411 15,220
** Excludes assets covered under FDIC Loss Share agreement

CONTACT: Andy Borrmann, 678-734-3505 SVP Finance, SouthCrest Financial GroupSource:SouthCrest Financial Group, Inc.