FAYETTEVILLE, Ga., Oct. 27, 2005 (PRIMEZONE) -- SouthCrest Financial Group, Inc. (OTCCBB:SCSG) reported net income of $1,513,000 for the quarter ended September 30, 2005 compared to $888,000 for the same quarter a year ago. For the nine month period ended September 30, 2005, net income was $3,690,000 compared to $2,685,000 for the same period in 2004. Most of the increase in net income for both the quarter and year-to-date compared to the prior year was the result of the Company's merger with First Polk Bankshares, Inc. on September 30, 2004. Assets and liabilities, and results of operations for First Polk are only included in the balance sheets and income statements of the Company from the date of merger going forward. On a per share basis, results were $0.42 per share for the current quarter compared to $0.40 for the same period a year ago, and $1.03 per share for the current year-to-date period compared to $1.23 for the same period in 2004. Reductions in earnings per share are mostly due to dilution resulting from increased number of shares resulting from the merger with First Polk.
Return on average assets was 1.39% for the current quarter compared to 1.40% for the same period in 2004, and 1.17% for the current year-to-date period compared to 1.42% for the same period in 2005. Return on average equity was 11.28% for the quarter compared to 12.45% in 2004, and 9.43% and 13.13% for the year-to-date periods in 2005 and 2004, respectively. The Company's net interest margins have improved, increasing to 4.43% for the third quarter of 2005 from 4.18% in the same period in 2004, and to 4.44% for the year-to-date 2005 from 4.17% for the same period in 2004. Current quarter results include recognized gains from sales of securities available for sale of $320,000, or $199,000 net of tax. This represents $0.056 per share. There were no such gains recorded in 2004.
Total assets at September 30, 2005 were $437.8 million compared to $406.3 million at September 30, 2004 and $407.5 million at December 31, 2004. The increase in total assets is primarily attributable to growth resulting from increased lending activity. Gross loans (excluding reserves for loan losses) totaled $263.5 million at September 30, 2005 compared to $232.3 million at September 30, 2004, and $229.2 million at December 31, 2004. Deposits were $370.0 million at September 30, 2005 compared to $349.8 million at September 30, 2004 and $352.3 million at December 31, 2004. At September 30, 2005, the allowance for loan losses was 1.28% of loans compared to 1.38% of loans at September 30, 2004 and 1.38% at December 31, 2004. Net chargeoffs were 0.17% and 0.18% of average loans for the nine months ended September 30, 2005 and 2004, respectively. At September 30, 2005, nonperforming assets were $1,278,000, or 0.29% of total assets, compared to $678,000, or 0.17% of total assets at September 30, 2004 and $562,000, or 0.14% of total assets at December 31, 2004.
In a press release dated October 3, 2005, the Company announced that it declared a dividend of $0.12 per share compared to $0.115 per share for the same period a year ago. The dividend will be paid on October 31, 2005 to shareholders of record as of October 17, 2005.
About SouthCrest Financial Group, Inc.
SouthCrest Financial Group, Inc. is the parent company of two bank subsidiaries operating a total of nine branch offices. Bank of Upson, based in Thomaston, Georgia, has two branches in Upson County, three branches in Meriwether County operating as Meriwether Bank & Trust, and one branch in Fayette County operating as SouthCrest Bank. First National Bank of Polk County, based in Cedartown, Georgia, operates three branches in Polk County. SouthCrest is traded on the OTC Bulletin Board under the symbol "SCSG."
Forward-Looking Statements
This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting SouthCrest's operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced SouthCrest's assumptions, but that are beyond SouthCrest's control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environment and securities markets, (iv) adverse changes in the regulatory requirements affecting SouthCrest, (v) greater competitive pressures among financial institutions in SouthCrest's markets and (vi) greater loan losses than historic levels. Additional information and other factors that could affect future financial results are included in SouthCrest's filings with the Securities and Exchange Commission.
SouthCrest Financial Group, Inc.
Consolidated Financial Highlights
(Unaudited)
Quarter Ended Nine Months Ended
September 30 September 30
--------------- -------------------
2005 2004 % Change 2005 2004 % Change
-------- -------- ------- -------- -------- -------
All dollars in thousands
except per share data
EARNINGS
Net interest
income $ 4,411 $ 2,452 79.9% $ 12,872 $ 7,298 76.4%
Provision for
loan losses 246 118 108.5% 519 290 79.0%
Noninterest
income 1,580 771 104.9% 3,329 2,229 49.3%
Noninterest
expense 3,517 1,793 96.2% 10,331 5,381 92.0%
Income taxes 715 424 68.6% 1,661 1,171 41.8%
Net income 1,513 888 70.4% 3,690 2,685 37.4%
PER SHARE
INFORMATION
Earnings per
share $ 0.42 $ 0.40 4.8% $ 1.03 $ 1.23 -16.0%
Dividends per
share 0.120 0.115 4.3% 0.360 0.345 4.3%
Book value per
share 15.03 14.21 5.8% 15.03 14.21 5.8%
OPERATING RATIOS(a)
Net interest
margin 4.43% 4.18% 4.44% 4.17%
Return on average
assets 1.39% 1.40% 1.17% 1.42%
Return on average
equity 11.28% 12.45% 9.43% 13.13%
Efficiency ratio 62.02% 55.63% 62.68% 56.48%
Net chargeoffs /
average loans 0.20% 0.18% 0.17% 0.18%
AVERAGE BALANCES
Loans $255,713 $131,423 94.6% $240,804 $130,521 84.5%
Total earning
assets 394,897 233,516 69.1% 387,684 233,552 66.0%
Total assets 431,392 251,627 71.4% 422,452 252,191 67.5%
Deposits 370,489 221,709 67.1% 364,548 222,500 63.8%
Shareholders'
equity 53,210 28,385 87.5% 52,319 27,321 91.5%
END OF PERIOD As of September 30,
BALANCES 2005 2004
-------- --------
Loans $263,453 $232,325 13.4%
Reserve for loan
losses 3,373 3,204 5.3%
Total earning
assets 403,510 372,351 8.4%
Intangible
assets 7,119 8,221 -13.4%
Total assets 437,813 406,349 7.7%
Deposits 369,954 349,814 5.8%
Shareholders'
equity 53,639 52,073 3.0%
ASSET QUALITY
(END OF PERIOD)
Loans 90 days
past due and
still accruing $ 484 $ 121
Nonaccrual Loans 575 520
Other Real Estate
Owned 219 37
Total
nonperforming
assets 1,278 678
Nonperforming
assets / total
assets 0.29% 0.17%
Allowance for
loan losses /
total loans 1.28% 1.38%
(a) All ratios are annualized.