AUGUSTA, Ga., April 20, 2007 (PRIME NEWSWIRE) -- Southeastern Bank Financial Corp. (OTCBB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta and Southern Bank & Trust, today reported quarterly net income of $2.8 million for the three months ended March 31, 2007, an increase of 12.2 percent from $2.5 million in the first quarter of 2006. Diluted earnings per share for the first quarter of 2007 were $0.50, an 8.7 percent increase from $0.46 for the same period last year.
"We continued on our path of solid, stable growth during the first quarter of 2007," said R. Daniel Blanton, president and chief executive officer. "After a period of expansionary activity, our focus has been on consolidating that development and focusing on the fundamentals of community banking -- delivering valuable banking products and services through a friendly, personalized approach while supporting the communities in which we operate."
Total assets at March 31, 2007, were $1.1 billion, an increase of $185.6 million, or 20.1 percent, from a year ago, and $66.4 million, or 6.4 percent, from Dec. 31, 2006. Loans outstanding at the end of the first quarter were $774.2 million, and total deposits were $874.6 million, an increase of 3.2 percent and 9.1 percent, respectively, from Dec. 31, 2006.
Net interest income for the first quarter of 2007 was $9.1 million, up 13.5 percent from the same period a year ago. Noninterest income for the quarter was $3.6 million, an increase of 11.9 percent over the first quarter of 2006. Noninterest expense was $7.8 million in the first quarter of 2007, an increase of $656,899 from a year ago.
Return on average assets (ROA) was 1.06 percent for the first quarter of 2007, and return on average shareholders' equity (ROE) was 13.97 percent.
"The ongoing growth in our core deposits and loans continues to be driven by the strength of our markets and our service-oriented approach to community banking," said Blanton. "The solid increase in our noninterest income during the first quarter reflects the continued success of our retail investment and trust service offerings."
About Southeastern Bank Financial Corp.
Southeastern Bank Financial Corp. is the $1.1 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 eight full-service Augusta-area offices and an office in Athens, Ga. SB&T is a full-service, federally chartered thrift serving the Aiken County, S.C., market. 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 expanding our operations into new geographic areas and dealing with an additional regulatory agency; 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
March 31,
2007 December 31,
Assets (Unaudited) 2006
-------------- --------------
Cash and due from banks $ 27,550,298 $ 25,709,915
Federal funds sold 52,027,000 14,688,000
Interest-bearing deposits
in other banks 512,690 512,690
-------------- --------------
Cash and cash
equivalents 80,089,988 40,910,605
Investment securities
Available-for-sale 203,052,083 199,135,716
Held-to-maturity, at cost
(fair values of
$1,988,286 and
$3,048,196, respectively) 1,935,488 2,970,619
Loans held for sale 9,870,968 14,857,315
Loans 764,287,169 735,111,615
Less allowance for loan
losses (10,273,905) (9,776,779)
-------------- --------------
Loans, net 754,013,264 725,334,836
Premises and equipment, net 23,955,291 23,402,588
Accrued interest receivable 5,900,961 5,982,654
Bank-owned life insurance 16,146,854 15,982,052
Restricted equity securities 5,011,981 4,936,281
Other assets 7,606,427 7,689,596
-------------- --------------
$1,107,583,305 $1,041,202,262
============== ==============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 111,366,348 $ 106,846,160
Interest-bearing:
NOW accounts 131,914,257 119,334,300
Savings 282,749,595 255,065,766
Money management
accounts 50,245,625 45,897,176
Time deposits over
$100,000 210,766,546 193,860,714
Other time deposits 87,589,731 80,758,973
-------------- --------------
874,632,102 801,763,089
Federal funds purchased and
securities sold under
repurchase agreements 61,328,650 70,019,551
Advances from Federal Home
Loan Bank 60,000,000 60,000,000
Other borrowed funds 900,000 1,000,000
Accrued interest payable and
other liabilities 8,925,585 9,495,498
Subordinated debentures 20,000,000 20,000,000
-------------- --------------
Total liabilities 1,025,786,337 962,278,138
-------------- --------------
Stockholders' equity:
Common stock, $3.00 par
value; 10,000,000 shares
authorized; 5,434,045 and
5,433,285 shares issued
in 2007 and 2006,
respectively; 5,432,945
and 5,432,854 shares
outstanding in 2007 and
2006, respectively 16,302,135 16,299,855
Additional paid-in capital 39,103,814 38,989,058
Retained earnings 27,339,916 25,287,006
Treasury stock, at cost;
1100 and 431 shares in
2007 and 2006,
respectively (42,350) (16,809)
Accumulated other
comprehensive loss, net (906,547) (1,634,986)
-------------- --------------
Total stockholders'
equity 81,796,968 78,924,124
-------------- --------------
$1,107,583,305 $1,041,202,262
============== ==============
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
----------------------------
2007 2006
------------ ------------
Interest income:
Loans, including fees $ 15,503,670 $ 11,812,088
Investment securities 2,611,334 2,456,072
Federal funds sold 366,082 150,593
Interest-bearing deposits
in other banks 6,490 7,975
------------ ------------
Total interest income 18,487,576 14,426,728
------------ ------------
Interest expense:
Deposits 7,492,193 4,918,651
Federal funds purchased
and securities sold
under repurchase
agreements 867,145 683,908
Other borrowings 1,074,739 846,988
------------ ------------
Total interest expense 9,434,077 6,449,547
------------ ------------
Net interest income 9,053,499 7,977,181
Provision for loan losses 575,798 503,792
------------ ------------
Net interest income
after provision
for loan losses 8,477,701 7,473,389
------------ ------------
Noninterest income:
Service charges and fees
on deposits 1,397,016 1,352,144
Gain on sales of loans 1,284,278 1,254,345
Investment securities
gains, net 33,191 --
Retail investment income 323,239 167,411
Trust service fees 273,536 192,465
Increase in cash surrender
value of bank-owned life
insurance 164,802 139,270
Miscellaneous income 167,679 149,625
------------ ------------
Total noninterest
income 3,643,741 3,255,260
------------ ------------
Noninterest expense:
Salaries and other
personnel expense 4,795,507 4,439,980
Occupancy expenses 760,344 748,736
Other operating expenses 2,266,935 1,977,171
------------ ------------
Total noninterest
expense 7,822,786 7,165,887
------------ ------------
Income before income
taxes 4,298,656 3,562,762
Income tax expense 1,539,376 1,102,787
------------ ------------
Net income $ 2,759,280 $ 2,459,975
============ ============
Basic net income per share $ 0.51 $ 0.47
============ ============
Diluted net income per share $ 0.50 $ 0.46
============ ============
Weighted average common
shares outstanding 5,433,639 5,273,688
============ ============
Weighted average number of
common and common
equivalent shares
outstanding 5,429,671 5,327,383
============ ============
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
2007 2006
------------ ------------
Cash flows from operating
activities:
Net income $ 2,759,280 $ 2,459,975
Adjustments to reconcile
net income to net cash
provided by operating
activities
Depreciation 367,394 376,947
Provision for loan losses 575,798 503,792
Net accretion of discount
on investment securities (64,551) (50,439)
Increase in CSV of bank
owned life insurance (164,802) (139,270)
Stock options compensation
cost 133,809 69,706
Loss (Gain) on disposal
of premises and equipment 43,016 (2,941)
Gain on sales of loans (1,284,278) (1,254,345)
Real estate loans
originated for sale (63,281,103) (60,698,915)
Proceeds from sales of
real estate loans 69,551,728 67,629,556
Decrease in accrued
interest receivable 81,693 14,230
Decrease (Increase) in
other assets 63,720 (707,038)
(Decrease) Increase in
accrued interest payable
and other liabilities (569,913) 36,823
------------ ------------
Net cash provided by
operating activities 8,211,791 8,238,081
------------ ------------
Cash flows from investing activities:
Proceeds from maturities
of available for sale
securities 15,697,534 6,420,409
Proceeds from maturities
of held-to-maturity
securities 1,035,000 --
Purchase of available for
sale securities (18,563,981) (12,611,248)
Purchase of Federal Home
Loan Bank stock (75,700) --
Net increase in loans (29,491,577) (31,576,989)
Purchase of Bank-owned
life insurance -- (3,500,000)
Additions to premises and
equipment (971,313) (295,887)
Proceeds from sale of
premises and equipment 8,200 6,638
------------ ------------
Net cash used in
investing activities (32,361,837) (41,557,077)
------------ ------------
Cash flows from financing activities:
Net increase in deposits 72,869,013 61,448,017
Net decrease in federal
funds purchased and
securities sold under
repurchase agreements (8,690,901) (10,527,362)
Payments of Federal Home
Loan Bank advances -- (5,000,000)
Proceeds from subordinated
debentures -- 10,000,000
Principal payments on
other borrowed funds (100,000) (650,000)
Purchase of treasury stock (42,350) --
Payment of cash dividends (706,370) (685,853)
Proceeds from stock
options exercised 37 164,088
------------ ------------
Net cash provided by
financing activities 63,329,429 54,748,890
------------ ------------
Net increase in cash
and cash equivalents $ 39,179,383 $ 21,429,894
Cash and cash equivalents at
beginning of period 40,910,605 22,563,056
------------ ------------
Cash and cash equivalents at
end of period $ 80,089,988 $ 43,992,950
============ ============
Supplemental disclosures of
cash paid during the period
for:
Interest $ 9,763,822 $ 6,605,609
============ ============
Income taxes $ 816,891 $ 445,000
============ ============