MOULTRIE, Ga., July 16, 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 second quarter ended June 30, 2015.
Second Quarter and Six-Month Income Highlights
- Net income increased 17% to $865 thousand in the second quarter of 2015, or $0.34 per diluted share, from $737 thousand, or $0.28 per diluted share, in the second quarter of 2014.
- For the six months ended June 30, 2015, net income was $1.7 million, or $0.66 per diluted share, a 16% increase from $1.4 million, or $0.56 per diluted share, for the same period in the prior year.
- Net interest income grew 5.4% and 6.3% in the second quarter and year-to-date period, respectively, over the comparable periods of 2014, due to increased revenue from higher loan volumes.
- Noninterest income decreased $201 thousand to $1.0 million for the second quarter of 2015, due to a $133 thousand decline in mortgage banking fees and decreased service charges on deposit accounts of $67 thousand. Year-to-date noninterest income was down 14.8%, due to these decreases as well as less net gain on sale of securities that benefitted the prior year.
- Prudent cost control drove noninterest expense down 3.8% and 2.1% for the second quarter and year-to-date period, respectively.
Balance Sheet Trends and Asset Quality
- Total assets at June 30, 2015 were $391.0 million, an increase of 4.1% from June 30, 2014.
- Total loans were $236.8 million, an increase of $9.5 million, or 4.2%, over the same period last year.
- Total deposits grew $8.0 million to $321.8 million at June 30, 2015 from the second quarter of 2014 on higher noninterest-bearing and money market accounts.
- Non-performing asset ratio improved 8 basis points to 0.30% at June 30, 2015.
DeWitt Drew, President and CEO, commented, "We continue to make excellent progress in growing the business and earnings while maintaining a strong balance sheet and superior credit metrics. Notably, net income increased by double digits for the quarter and year-to-date period, and key profitability measures of return on assets and return on equity were up for both periods. Our positive results, in a very competitive banking market and challenging rate environment, are being driven by core deposit and quality loan growth, favorable changes in our earning asset mix, and the contributions of our talented and dedicated staff."
Dividends
In June 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 $391 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) | |
| June 30, | December 31, | June 30, | |
| 2015 | 2014 | 2014 | |
| ASSETS | |||
| Cash and due from banks | $ 7,178 | $ 6,783 | $ 8,310 |
| Interest-bearing deposits in banks | 13,863 | 5,776 | 4,910 |
| Certificates of deposit in other banks | 1,470 | 1,470 | 3,430 |
| Investment securities available for sale | 49,313 | 53,838 | 52,691 |
| Investment securities held to maturity | 62,373 | 61,588 | 58,429 |
| Federal Home Loan Bank stock, at cost | 1,662 | 1,560 | 1,506 |
| Loans, less unearned income and discount | 236,762 | 224,400 | 227,273 |
| Allowance for loan losses | (3,180) | (3,114) | (3,127) |
| Net loans | 233,582 | 221,286 | 224,146 |
| Premises and equipment | 11,541 | 11,756 | 11,702 |
| Foreclosed assets, net | 102 | 274 | 438 |
| Intangible assets | 58 | 66 | 74 |
| Bank owned life insurance | 5,157 | 5,104 | 5,030 |
| Other assets | 4,696 | 4,779 | 4,912 |
| Total assets | $ 390,995 | $ 374,280 | $ 375,578 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Deposits: | |||
| NOW accounts | $ 24,814 | $ 22,890 | $ 24,284 |
| Money market | 99,243 | 99,918 | 96,527 |
| Savings | 29,146 | 28,156 | 30,225 |
| Certificates of deposit $100,000 and over | 28,998 | 31,367 | 29,892 |
| Other time accounts | 49,375 | 46,300 | 46,642 |
| Total interest-bearing deposits | 231,576 | 228,631 | 227,570 |
| Noninterest-bearing deposits | 90,251 | 81,343 | 86,248 |
| Total deposits | 321,827 | 309,974 | 313,818 |
| Other borrowings | 9,133 | 5,133 | 8,800 |
| Long-term debt | 22,067 | 22,067 | 17,200 |
| Accounts payable and accrued liabilities | 2,436 | 2,771 | 2,602 |
| Total liabilities | 355,463 | 339,945 | 342,420 |
| 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 | 26,179 | 25,015 | 23,957 |
| Accumulated other comprehensive income | (528) | (561) | (680) |
| Total | 61,646 | 60,449 | 59,272 |
| Treasury stock - at cost (**) | (26,114) | (26,114) | (26,114) |
| Total shareholders' equity | 35,532 | 34,335 | 33,158 |
| Total liabilities and shareholders' equity | $ 390,995 | $ 374,280 | $ 375,578 |
| * 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 Six Months | |||
| Ended June 30, | Ended June 30, | |||
| Interest income: | 2015* | 2014* | 2015* | 2014* |
| Interest and fees on loans | $ 3,208 | $ 3,058 | $ 6,209 | $ 6,007 |
| Interest and dividend on securities available for sale | 289 | 292 | 588 | 512 |
| Interest on securities held to maturity | 368 | 341 | 726 | 683 |
| Dividends on Federal Home Loan Bank stock | 17 | 13 | 36 | 25 |
| Interest on deposits in banks | 13 | 13 | 27 | 34 |
| Interest on certificates of deposit in other banks | 3 | 9 | 7 | 19 |
| Total interest income | 3,898 | 3,726 | 7,593 | 7,280 |
| Interest expense: | ||||
| Interest on deposits | 196 | 192 | 386 | 388 |
| Interest on other borrowings | 15 | 38 | 29 | 140 |
| Interest on long-term debt | 113 | 104 | 224 | 207 |
| Total interest expense | 324 | 334 | 639 | 735 |
| Net interest income | 3,574 | 3,392 | 6,954 | 6,545 |
| Provision for loan losses | 45 | 75 | 90 | 180 |
| Net interest income after provision for losses on loans | 3,529 | 3,317 | 6,864 | 6,365 |
| Noninterest income: | ||||
| Service charges on deposit accounts | 264 | 331 | 556 | 656 |
| Income from trust services | 68 | 58 | 138 | 113 |
| Income from retail brokerage services | 104 | 99 | 198 | 191 |
| Income from insurance services | 347 | 347 | 736 | 708 |
| Income from mortgage banking services | 78 | 211 | 156 | 346 |
| Net gain (loss) on the sale or disposition of assets | 3 | 20 | 22 | 20 |
| Net gain on the sale of securities | 4 | 0 | 4 | 154 |
| Other income | 177 | 180 | 396 | 400 |
| Total noninterest income | 1,045 | 1,246 | 2,206 | 2,588 |
| Noninterest expense: | ||||
| Salary and employee benefits | 1,963 | 2,071 | 3,972 | 4,139 |
| Occupancy expense | 276 | 257 | 556 | 510 |
| Equipment expense | 220 | 215 | 438 | 432 |
| Data processing expense | 314 | 284 | 607 | 558 |
| Amortization of intangible assets | 4 | 4 | 8 | 37 |
| Other operating expense | 716 | 799 | 1,399 | 1,457 |
| Total noninterest expense | 3,493 | 3,630 | 6,980 | 7,133 |
| Income before income tax expense | 1,081 | 933 | 2,090 | 1,820 |
| Provision for income taxes | 216 | 196 | 417 | 382 |
| Net income | $ 865 | $ 737 | $ 1,673 | $ 1,438 |
| Net income per share, basic | $ 0.34 | $ 0.28 | $ 0.66 | $ 0.56 |
| Net income per share, diluted | $ 0.34 | $ 0.28 | $ 0.66 | $ 0.56 |
| Dividends paid per share | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.16 |
| 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 June 30 | 2015 | 2014 | ||||
| Assets | $ 390,995 | $ 375,578 | ||||
| Loans, less unearned income & discount | $ 236,762 | $ 227,273 | ||||
| Deposits | $ 321,827 | $ 313,818 | ||||
| Shareholders' equity | $ 35,532 | $ 33,158 | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||
| 2015 | 2014 | 2015 | 2014 | |||
| Performance Data & Ratios | ||||||
| Net income | $ 865 | $ 737 | $ 1,673 | $ 1,438 | ||
| Earnings per share, basic | $ 0.34 | $ 0.28 | $ 0.66 | $ 0.56 | ||
| Earnings per share, diluted | $ 0.34 | $ 0.28 | $ 0.66 | $ 0.56 | ||
| Dividends paid per share | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.16 | ||
| Return on assets | 0.87% | 0.77% | 0.85% | 0.74% | ||
| Return on equity | 9.69% | 8.95% | 9.45% | 8.83% | ||
| Net interest margin (tax equivalent) | 4.12% | 4.02% | 4.04% | 3.90% | ||
| Dividend payout ratio | 29.47% | 27.66% | 30.45% | 28.35% | ||
| Efficiency ratio | 72.29% | 75.42% | 72.92% | 75.20% | ||
| Asset Quality Data & Ratios | ||||||
| Total nonperforming loans | $ 1,058 | $ 1,006 | $ 1,058 | $ 1,006 | ||
| Total nonperforming assets | $ 1,167 | $ 1,444 | $ 1,167 | $ 1,444 | ||
| Net loan charge offs | $ (1) | $ 22 | $ 24 | $ 131 | ||
| Reserve for loan losses to total loans | 1.34% | 1.38% | 1.34% | 1.38% | ||
| Nonperforming loans/total loans | 0.45% | 0.44% | 0.45% | 0.44% | ||
| Nonperforming assets/total assets | 0.30% | 0.38% | 0.30% | 0.38% | ||
| Net charge offs / average loans | 0.00% | 0.04% | 0.02% | 0.24% | ||
| Capital Ratios | ||||||
| Average common equity to average total assets | 8.99% | 8.56% | 8.94% | 8.43% | ||
| Common equity Tier 1 capital ratio | 14.26% | 13.87% | 14.26% | 13.87% | ||
| Tier 1 capital ratio | 14.26% | 13.87% | 14.26% | 13.87% | ||
| Tier 1 leverage ratio | 9.08% | 8.78% | 9.08% | 8.78% | ||
| Total risk based capital ratio | 15.51% | 15.12% | 15.51% | 15.12% | ||
| Book value per share | $ 13.95 | $ 13.01 | $ 13.95 | $ 13.01 | ||
| Tangible book value per share | $ 13.92 | $ 12.98 | $ 13.92 | $ 12.98 | ||
| Quarterly | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Averages | 2015 | 2015 | 2014 | 2014 | 2014 |
| Assets | $ 396,762 | $ 395,220 | $ 381,239 | $ 374,509 | $ 384,745 |
| Loans, less unearned income & discount | $ 233,464 | $ 225,665 | $ 223,906 | $ 225,934 | $ 223,348 |
| Deposits | $ 329,869 | $ 330,394 | $ 313,595 | $ 309,953 | $ 326,773 |
| Equity | $ 35,687 | $ 35,134 | $ 34,186 | $ 33,579 | $ 32,926 |
| Return on assets | 0.87% | 0.82% | 0.69% | 0.86% | 0.77% |
| Return on equity | 9.69% | 9.21% | 7.75% | 9.57% | 8.95% |
| Net income | $ 865 | $ 809 | $ 662 | $ 804 | $ 737 |
| Net income per share, basic | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 |
| Net income per share, diluted | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 |
| Dividends paid per share | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 |