MOULTRIE, Ga., April 22, 2016 (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 first quarter ended March 31, 2016.
First Quarter Income Highlights
- Net income increased 30% to $1.0 million, or $0.41 per diluted share, from $809 thousand, or $0.32 per diluted share, in the first quarter of 2016.
- Net interest income improved over 15% to $3.9 million when compared with last year’s first quarter. The increase was due primarily to higher interest income and fees on loans related to a $37.1 million growth in average loans. Net interest margin increased to 4.29%, up 33 basis points from the 2015 first quarter.
- Noninterest expense increased 7% to $3.7 million as personnel and data processing expenses grew primarily due to continued Valdosta and Tifton expansion.
Balance Sheet Trends and Asset Quality
- Total assets at March 31, 2016 were $409.1 million, up from $399.9 million at March 31, 2015. The change in asset mix reflects higher loan balances and decreased overnight balances and investment securities.
- Total loans increased $40.6 million, or 18%, to $270.8 million from the first quarter last year.
- Quarterly average deposits were up $8 million to $338.4 million, nearly 3% over first quarter last year. End of the period total deposits were $331.4 million at March 31, 2016, down $3.4 million from the first quarter of 2015. Noninterest-bearing deposits increased $3.8 million to $101.2 million quarter-over-quarter.
- Nonperforming loans were $5 thousand at the end of the first quarter of 2016, down $528 thousand from a year ago. Net charge-offs (recoveries) to average loans outstanding ratio improved to (0.01)% for the quarter ended March 31, 2016, with the level of allowance for loan losses remaining flat.
Capital Management
- Tangible book value per share at March 31, 2016, was $14.71, up from $13.85 at March 31, 2015.
“We are off to a very strong start in 2016 with 30% growth in net income due primarily to an 18% increase in total loans,” commented DeWitt Drew, President and CEO. “Notably, even with strong loan growth over the last year our credit quality remains exceptionally strong with nonperforming loans close to zero at quarter end. While deposit growth is currently trailing loan growth, our mix remains favorable with non-interest bearing deposits currently making up 30% of total deposits, and 55% of deposits in transaction accounts. Our focus on growing higher yielding commercial loans and lower cost core deposits is driving expansion of our net interest margin which was up over 30 basis points from last year.”
Mr. Drew added, “We are continuing to invest in growing our business. Expenses increased in the quarter as we added staff in the Valdosta market and continue our expansion into the Tifton market. The results from our entry into Valdosta have been very favorable with a significant portion of the loan growth in the last year coming from this market.”
Dividends
In March 2016, 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 88 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $409 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 and a loan production office located in Tift 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) | ||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 7,742 | $ | 6,157 | $ | 7,712 | ||||||
| Interest-bearing deposits in banks | 9,620 | 24,923 | 21,942 | |||||||||
| Certificates of deposit in other banks | 0 | 245 | 1,470 | |||||||||
| Investment securities available for sale | 41,255 | 51,476 | 55,313 | |||||||||
| Investment securities held to maturity | 59,373 | 60,889 | 63,397 | |||||||||
| Federal Home Loan Bank stock, at cost | 1,905 | 1,869 | 1,560 | |||||||||
| Loans, less unearned income and discount | 270,768 | 250,786 | 230,160 | |||||||||
| Allowance for loan losses | (3,066 | ) | (3,032 | ) | (3,134 | ) | ||||||
| Net loans | 267,702 | 247,754 | 227,026 | |||||||||
| Premises and equipment | 11,145 | 11,158 | 11,653 | |||||||||
| Foreclosed assets, net | 82 | 82 | 186 | |||||||||
| Intangible assets | 47 | 51 | 63 | |||||||||
| Bank owned life insurance | 5,263 | 5,231 | 5,120 | |||||||||
| Other assets | 4,955 | 5,020 | 4,452 | |||||||||
| Total assets | $ | 409,089 | $ | 414,855 | $ | 399,894 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| NOW accounts | $ | 28,153 | $ | 25,383 | $ | 28,690 | ||||||
| Money market | 97,045 | 108,226 | 101,571 | |||||||||
| Savings | 29,398 | 27,721 | 29,385 | |||||||||
| Certificates of deposit $100,000 and over | 26,553 | 25,189 | 30,923 | |||||||||
| Other time accounts | 49,068 | 50,728 | 46,814 | |||||||||
| Total interest-bearing deposits | 230,217 | 237,247 | 237,383 | |||||||||
| Noninterest-bearing deposits | 101,188 | 101,769 | 97,400 | |||||||||
| Total deposits | 331,405 | 339,016 | 334,783 | |||||||||
| Other borrowings | 7,590 | 7,591 | 5,133 | |||||||||
| Long-term debt | 28,476 | 28,476 | 22,067 | |||||||||
| Accounts payable and accrued liabilities | 4,097 | 3,675 | 2,574 | |||||||||
| Total liabilities | 371,568 | 378,758 | 364,557 | |||||||||
| 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 | 28,163 | 27,369 | 25,569 | |||||||||
| Accumulated other comprehensive income | (523 | ) | (1,153 | ) | (113 | ) | ||||||
| Total | 63,635 | 62,211 | 61,451 | |||||||||
| Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
| Total shareholders' equity | 37,521 | 36,097 | 35,337 | |||||||||
| Total liabilities and shareholders' equity | $ | 409,089 | $ | 414,855 | $ | 399,894 | ||||||
| * 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 | |||||||
| Ended March 31, | |||||||
| Interest income: | 2016* | 2015* | |||||
| Interest and fees on loans | $ | 3,575 | $ | 3,002 | |||
| Interest and dividend on securities available for sale | 300 | 300 | |||||
| Interest on securities held to maturity | 350 | 358 | |||||
| Dividends on Federal Home Loan Bank stock | 22 | 19 | |||||
| Interest on deposits in banks | 22 | 14 | |||||
| Interest on certificates of deposit in other banks | 0 | 3 | |||||
| Total interest income | 4,269 | 3,696 | |||||
| Interest expense: | |||||||
| Interest on deposits | 208 | 190 | |||||
| Interest on other borrowings | 23 | 14 | |||||
| Interest on long-term debt | 144 | 112 | |||||
| Total interest expense | 375 | 316 | |||||
| Net interest income | 3,894 | 3,380 | |||||
| Provision for loan losses | 30 | 45 | |||||
| Net interest income after provision for losses on loans | 3,864 | 3,335 | |||||
| Noninterest income: | |||||||
| Service charges on deposit accounts | 276 | 292 | |||||
| Income from trust services | 52 | 70 | |||||
| Income from retail brokerage services | 80 | 94 | |||||
| Income from insurance services | 472 | 389 | |||||
| Income from mortgage banking services | 91 | 78 | |||||
| Net gain on the sale or disposition of assets | 0 | 19 | |||||
| Net gain on the sale of securities | 28 | 0 | |||||
| Other income | 227 | 219 | |||||
| Total noninterest income | 1,226 | 1,161 | |||||
| Noninterest expense: | |||||||
| Salary and employee benefits | 2,176 | 2,010 | |||||
| Occupancy expense | 288 | 280 | |||||
| Equipment expense | 222 | 218 | |||||
| Data processing expense | 343 | 293 | |||||
| Amortization of intangible assets | 4 | 4 | |||||
| Other operating expense | 695 | 682 | |||||
| Total noninterest expense | 3,728 | 3,487 | |||||
| Income before income tax expense | 1,362 | 1,009 | |||||
| Provision for income taxes | 314 | 200 | |||||
| Net income | $ | 1,048 | $ | 809 | |||
| Net income per share, basic | $ | 0.41 | $ | 0.32 | |||
| Net income per share, diluted | $ | 0.41 | $ | 0.32 | |||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | |||
| Basic weighted average shares outstanding | 2,547,837 | 2,547,837 | |||||
| Diluted weighted average shares outstanding | 2,547,837 | 2,547,837 | |||||
| SOUTHWEST GEORGIA FINANCIAL CORPORATION | |||||||
| Financial Highlights | |||||||
| (Dollars in thousands except per share data) | |||||||
| 2016 | 2015 | ||||||
| Performance Data & Ratios | |||||||
| Net income | $ | 1,048 | $ | 809 | |||
| Earnings per share, basic | $ | 0.41 | $ | 0.32 | |||
| Earnings per share, diluted | $ | 0.41 | $ | 0.32 | |||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | |||
| Return on assets | 1.01 | % | 0.82 | % | |||
| Return on equity | 11.30 | % | 9.21 | % | |||
| Net interest margin (tax equivalent) | 4.29 | % | 3.96 | % | |||
| Dividend payout ratio | 24.32 | % | 31.50 | % | |||
| Efficiency ratio | 69.86 | % | 73.57 | % | |||
| Asset Quality Data & Ratios | |||||||
| Total nonperforming loans | $ | 5 | $ | 528 | |||
| Total nonperforming assets | $ | 87 | $ | 721 | |||
| Net loan charge offs (recoveries) | $ | (4 | ) | $ | 25 | ||
| Reserve for loan losses to total loans | 1.13 | % | 1.36 | % | |||
| Nonperforming loans/total loans | 0.00 | % | 0.23 | % | |||
| Nonperforming assets/total assets | 0.02 | % | 0.18 | % | |||
| Net charge offs (recoveries)/ average loans | (0.01 | )% | 0.04 | % | |||
| Capital Ratios | |||||||
| Average common equity to average total assets | 8.94 | % | 8.89 | % | |||
| Common equity Tier 1 capital ratio | 13.71 | % | 14.27 | % | |||
| Tier 1 capital ratio | 13.71 | % | 14.27 | % | |||
| Tier 1 leverage ratio | 9.16 | % | 8.96 | % | |||
| Total risk based capital ratio | 14.82 | % | 15.52 | % | |||
| Book value per share | $ | 14.73 | $ | 13.87 | |||
| Tangible book value per share | $ | 14.71 | $ | 13.85 | |||
| Quarterly | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||
| Averages | 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||
| Assets | $ | 415,168 | $ | 407,924 | $ | 394,441 | $ | 396,762 | $ | 395,220 | |||||||||
| Loans, less unearned income & discount | $ | 262,715 | $ | 246,353 | $ | 238,023 | $ | 233,464 | $ | 225,665 | |||||||||
| Deposits | $ | 338,399 | $ | 337,194 | $ | 327,072 | $ | 329,869 | $ | 330,394 | |||||||||
| Equity | $ | 37,097 | $ | 36,833 | $ | 36,154 | $ | 35,687 | $ | 35,134 | |||||||||
| Return on assets | 1.01 | % | 0.83 | % | 0.87 | % | 0.87 | % | 0.82 | % | |||||||||
| Return on equity | 11.30 | % | 9.16 | % | 9.48 | % | 9.69 | % | 9.21 | % | |||||||||
| Net income | $ | 1,048 | $ | 843 | $ | 857 | $ | 865 | $ | 809 | |||||||||
| Net income per share, basic | $ | 0.41 | $ | 0.33 | $ | 0.33 | $ | 0.34 | $ | 0.32 | |||||||||
| Net income per share, diluted | $ | 0.41 | $ | 0.33 | $ | 0.33 | $ | 0.34 | $ | 0.32 | |||||||||
| Dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | |||||||||