AUGUSTA, Ga., Jan. 30, 2009 (GLOBE NEWSWIRE) -- Southeastern Bank Financial Corp. (OTCBB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust (SB&T), today reported quarterly net income of $660,139, or $0.11 in diluted earnings per share, for the three months ended Dec. 31, 2008, compared to net income of $2.7 million, or $0.44 in diluted earnings per share, in the fourth quarter of 2007. For the full year, the company reported net income of $7.6 million, or $1.26 in diluted earnings per share, compared to net income of $11.8 million, or $1.95 in diluted earnings per share, for 2007.
"We are pleased to report, in a year of unprecedented economic turmoil, we have achieved another consecutive quarter of positive earnings and finished the year with earnings in excess of $7.5 million. Our Board and Management are very pleased with this result," said R. Daniel Blanton, president and chief executive officer. "While we are not immune to the current economic conditions, we enter 2009 well-capitalized and positioned to continue to grow and serve our markets."
At Dec. 31, 2008, total assets were $1.4 billion, an increase of $198.1 million, or 16.3 percent, from Dec. 31, 2007. The company's SB&T subsidiary closed the fourth quarter of 2008 with more than $123 million in total assets, reflecting growth of $37 million, or 43.8 percent, since Dec. 31, 2007.
Loans outstanding at the end of the fourth quarter of 2008 were $1.0 billion, an increase of 13.9 percent from Dec. 31, 2007. Total deposits at Dec. 31, 2008, were $1.1 billion, an increase of 19.7 percent from the same period a year ago. Cash and cash equivalents totaled $37.8 million at the end of the fourth quarter, an increase of $12.7 million from Dec. 31, 2007.
Nonperforming assets at Dec. 31, 2008, were 2.88 percent of total assets, compared to 2.78 percent at Sept. 30, 2008, and 0.45 percent at Dec. 31, 2007. Net charge-offs for the fourth quarter of 2008 totaled 0.28 percent of average loans, compared to 0.30 percent in the third quarter of 2008 and 0.14 percent in the fourth quarter of 2007. The company held $5.7 million in other real estate (ORE) at Dec. 31, 2008, compared to $377,000 at Sept. 30, 2008, and none at Dec. 31, 2007.
"We have aggressively addressed our asset quality issues and have taken the appropriate action to write down these assets. In this regard, we increased our loan-loss provision significantly in the fourth quarter in response to the ongoing stagnation in the real estate market," said Blanton. "We will continue to monitor the situation closely and make adjustments as necessary."
The provision for loan losses totaled $4.1 million for the fourth quarter of 2008, compared to $2.1 million in the third quarter of 2008 and $1.2 million in the fourth quarter of 2007. As a result, the allowance for loan losses increased to $14.7 million at Dec. 31, 2008, from $13.5 million at Sept. 30, 2008, and $11.8 million at Dec. 31, 2007.
Net interest income for the fourth quarter of 2008 was $10.1 million, an increase of $162,000 from the same period a year ago. Noninterest income for the quarter was $3.9 million, compared with $4.1 million in the fourth quarter of 2007. Noninterest expense in the fourth quarter of 2008 increased $355,878 from a year ago, to $9.2 million.
Return on average assets (ROA) was 0.19 percent for the fourth quarter of 2008, and return on average shareholders' equity (ROE) was 2.87 percent. The company's net interest margin was 2.99 percent, compared to 3.04 percent at Sept. 30, 2008, and 3.60 percent a year ago.
Net interest income for the 12 months ended Dec. 31, 2008, was $40.2 million, compared to $38.2 million for all of 2007. Noninterest income in 2008 was $16.7 million, compared to $16.2 million in 2007. Noninterest expense for the full year totaled $36.8 million, compared to $32.5 million in 2007, reflecting costs associated with operating two additional SB&T branches, one additional GB&T branch and the company's new operations center.
"The general economic outlook for 2009 remains uncertain," said Blanton. "While this will require us to continue to closely manage the bank day-by-day, we will not lose sight of our long-term mission for the company. Our focus will remain on serving our customers and our communities through our conservative style of banking, and expanding our banking franchise through organic growth in markets we know well."
About Southeastern Bank Financial Corp.
Southeastern Bank Financial Corp. is the $1.4 billion-asset bank holding company of Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust (SB&T). GB&T is the largest locally owned and operated community bank in the Augusta metro market, with nine full-service Augusta-area offices and offices in Athens, Ga., and Greenville, S.C. SB&T is a federally chartered thrift serving the Aiken County, S.C., market, with three full-service offices. 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 on the OTC Bulletin Board under the symbol SBFC. For more information, please visit 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 and acquisitions; 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 AND SUBSIDIARIES
Consolidated Balance Sheets
December 31,
2008 December 31,
Assets (Unaudited) 2007
--------------- ---------------
Cash and due from banks $ 24,859,620 $ 24,557,517
Federal funds sold 9,780,000 --
Interest-bearing deposits in
other banks 3,128,043 500,031
--------------- ---------------
Cash and cash equivalents 37,767,663 25,057,548
Investment securities
Available-for-sale 299,339,182 245,428,825
Held-to-maturity, at cost (fair
values of $697,977 and
$1,467,032, respectively) 689,128 1,435,178
Loans held for sale 18,955,283 11,303,098
Loans 986,830,706 871,439,789
Less allowance for loan losses (14,742,339) (11,800,163)
--------------- ---------------
Loans, net 972,088,367 859,639,626
Premises and equipment, net 33,959,975 32,612,246
Accrued interest receivable 7,085,348 7,416,257
Bank-owned life insurance 17,368,065 16,660,485
Restricted equity securities 6,571,485 5,059,781
Other real estate owned 5,733,775 --
Other assets 11,480,316 8,366,957
--------------- ---------------
$ 1,411,038,587 $ 1,212,980,001
=============== ===============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 111,291,359 $ 101,272,104
Interest-bearing:
NOW accounts 166,560,715 132,185,890
Savings 247,249,303 289,730,991
Money management accounts 50,404,031 73,609,269
Time deposits over $100,000 385,439,375 243,500,864
Other time deposits 178,607,605 111,867,272
--------------- ---------------
1,139,552,388 952,166,390
Federal funds purchased and
securities sold under
repurchase agreements 62,552,922 81,165,423
Advances from Federal Home
Loan Bank 84,000,000 59,000,000
Other borrowed funds -- 500,000
Accrued interest payable and
other liabilities 10,282,777 10,390,373
Subordinated debentures 20,000,000 20,000,000
--------------- ---------------
Total liabilities 1,316,388,087 1,123,222,186
--------------- ---------------
Stockholders' equity:
Common stock, $3.00 par value;
10,000,000 shares authorized;
5,987,674 and 5,976,811 shares
issued in 2008 and 2007,
respectively; 5,987,674 and
5,967,536 shares outstanding in
2008 and 2007, respectively 17,963,022 16,300,842
Additional paid-in capital 55,188,533 39,517,286
Retained earnings 21,455,152 34,228,272
Treasury stock, at cost; 0 and
9,275 shares in 2008 and 2007,
respectively -- (316,800)
Accumulated other comprehensive
income, net 43,793 28,215
--------------- ---------------
Total stockholders' equity 94,650,500 89,757,815
--------------- ---------------
$ 1,411,038,587 $ 1,212,980,001
=============== ===============
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Interest income:
Loans,
including
fees $15,084,282 $17,177,340 $61,567,685 $66,218,994
Investment
securities 3,647,671 3,274,139 13,591,110 11,822,785
Federal funds
sold 95,101 210,439 470,004 1,112,162
Interest-bearing
deposits in
other banks 27,401 6,679 45,820 26,859
----------- ----------- ----------- -----------
Total interest
income 18,854,455 20,668,597 75,674,619 79,180,800
----------- ----------- ----------- -----------
Interest expense:
Deposits 7,477,985 8,800,990 30,016,988 33,146,628
Federal funds
purchased and
securities
sold under
repurchase
agreements 157,497 805,176 1,317,190 3,304,803
Other
borrowings 1,083,126 1,089,361 4,155,080 4,480,215
----------- ----------- ----------- -----------
Total interest
expense 8,718,608 10,695,527 35,489,258 40,931,646
----------- ----------- ----------- -----------
Net interest
income 10,135,847 9,973,070 40,185,361 38,249,154
Provision for
loan losses 4,058,425 1,215,666 9,054,700 3,823,085
----------- ----------- ----------- -----------
Net interest
income after
provision
for loan
losses 6,077,422 8,757,404 31,130,661 34,426,069
----------- ----------- ----------- -----------
Noninterest
income:
Service charges
and fees on
deposits 1,845,125 1,755,161 7,291,075 6,408,801
Gain on sales
of loans 1,382,179 1,230,781 5,747,255 5,185,316
Gain on sale
of fixed
assets 1,865 17,057 8,626 1,048,821
Investment
securities
(losses) gains,
net (166,084) 8,099 (77,467) (236,916)
Retail
investment
income 254,777 372,926 1,095,692 1,267,408
Trust service
fees 261,703 302,022 1,134,330 1,131,631
Increase in
cash surrender
value of
bank-owned
life insurance 159,319 183,562 707,580 678,432
Miscellaneous
income 146,743 187,416 798,392 684,409
----------- ----------- ----------- -----------
Total
noninterest
income 3,885,627 4,057,024 16,705,483 16,167,902
----------- ----------- ----------- -----------
Noninterest
expense:
Salaries and
other personnel
expense 5,096,572 5,014,477 20,852,094 19,343,508
Occupancy
expenses 1,220,810 1,108,808 4,373,482 3,456,967
Other operating
expenses 2,885,154 2,723,373 11,526,775 9,708,147
----------- ----------- ----------- -----------
Total
noninterest
expense 9,202,536 8,846,658 36,752,351 32,508,622
----------- ----------- ----------- -----------
Income before
income taxes 760,513 3,967,770 11,083,793 18,085,349
Income tax
expense 100,374 1,289,648 3,505,492 6,320,726
----------- ----------- ----------- -----------
Net income $ 660,139 $ 2,678,122 $ 7,578,301 $11,764,623
=========== =========== =========== ===========
Basic net income
per share $ 0.11 $ 0.45 $ 1.27 $ 1.97
=========== =========== =========== ===========
Diluted net
income per share $ 0.11 $ 0.44 $ 1.26 $ 1.95
=========== =========== =========== ===========
Weighted average
common shares
outstanding 5,987,674 5,967,805 5,972,429 5,972,793
=========== =========== =========== ===========
Weighted average
number of common
and common
equivalent
shares
outstanding 6,013,299 6,033,291 6,011,689 6,044,871
=========== =========== =========== ===========