Southwest Georgia Financial Corporation Reports Record Earnings per Share for 2017 First Quarter

MOULTRIE, Ga.--()--Southwest Georgia Financial Corporation (the “Company”) (NYSE MKT: SGB), a full-service community bank holding company, today reported quarterly net income and record earnings per share for the first quarter ended March 31, 2017.

First Quarter Income Highlights

  • Net income increased to $1.1 million, or $0.42 per diluted share, up from $1.0 million, or $0.41 per diluted share, in the first quarter of 2016.
  • Net interest income improved $172 thousand to $4.1 million, primarily due to increased loan volume.
  • Higher net interest income and noninterest income were partially offset by a $173 thousand increase in noninterest expenses. Personnel and data processing expenses grew, primarily due to continued Valdosta and Tifton expansion and preparation for migration to a new core processing vendor.

Balance Sheet Trends and Asset Quality

  • Total assets at March 31, 2017 were $470.9 million, up nearly $62 million, or 15%, from the same period last year.
  • Total loans increased $39.9 million, or 15%, to $310.7 million. The Company continues to maintain a high-quality and diversified loan portfolio. Net charge-offs to average loans were 0.05%.
  • Total deposits were up 19%, or $61.6 million, to $393.0 million at March 31, 2017. Noninterest-bearing deposits increased a significant 27% to $128.7 million while interest-bearing deposit accounts increased 15%. The average cost of interest bearing deposits was 0.40%, while the average cost of all interest bearing funds was 0.59%.

Capital Management

  • Book value per share at March 31, 2017 was $15.43, up 5% from $14.73 at March 31, 2016.
  • In March 2017, the Company paid a quarterly cash dividend of $0.11 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 89 consecutive years.

We had outstanding growth in the first quarter providing a very strong start to 2017 and positioning us for another year of exceptional results,” commented DeWitt Drew, President and CEO. “Our confidence is based on the market’s continued strong reception of Southwest Georgia Bank in Valdosta as well as the progress being made on opening our full service banking center in Tifton in early 2018. As we grow, it is imperative that we maintain an intense focus on our customers’ experiences. Significant progress is being made and we continue to prudently invest in people and systems to improve our service levels and offerings in all our markets. Ultimately, we expect to leverage our strong franchise and win greater customer share in our markets.”

Webcast and Conference Call

The Company will host a conference call and webcast on Tuesday, April 25, 2017 at 1:00 p.m. ET. Management will review the financial and operating results for the first quarter of 2017, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion.

The conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored at www.sgfc.com.

A telephonic replay will be available from 4:00 p.m. ET on the day of the teleconference until Tuesday, May 2, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13659591, or access the webcast replay at www.sgfc.com/investorrelations.cfm, where a transcript will be posted once available.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $471 million in assets headquartered in Moultrie, Georgia. Its primary subsidiary, Southwest Georgia Bank, offers comprehensive financial services to consumer, business, and government customers. The current banking facilities include the main office located in Colquitt County, 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 Company 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. The Company routinely posts news and other important information on its website.

More information on Southwest Georgia Financial Corporation and Southwest Georgia Bank can be found at: www.sgfc.com.

SAFE HARBOR STATEMENT

This news release contains forward-looking statements, as defined by federal securities laws, including statements about the Company’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. Important factors that could cause actual results to differ materially from those contemplated today include a change in the Company’s capital structure, new or expanded regulatory requirements, the success of the Company’s growth strategy, customer preferences, the interest rate environment and other factors described in the Company’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 Company 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,
2017 2016 2016
ASSETS
Cash and due from banks $ 7,133 $ 7,700 $ 7,742
Interest-bearing deposits in banks 18,106 18,819 9,620
Certificates of deposit in other banks 1,235 0 0
Investment securities available for sale 59,692 53,566 41,255
Investment securities held to maturity 52,698 54,603 59,373
Federal Home Loan Bank stock, at cost 1,905 1,874 1,905
Loans, less unearned income and discount 310,707 292,524 270,768
Allowance for loan losses (3,162) (3,124) (3,066)
Net loans 307,545 289,400 267,702
Premises and equipment 11,260 11,209 11,145
Bank properties held for sale 212 212 0
Foreclosed assets, net 127 127 82
Intangible assets 31 35 47
Bank owned life insurance 5,390 5,357 5,263
Other assets 5,563 5,599 4,955
Total assets $ 470,897 $ 448,501 $ 409,089
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
NOW accounts $ 38,164 $ 47,420 $ 28,153
Money market 114,702 95,659 97,045
Savings 30,190 29,007 29,398
Certificates of deposit $100,000 and over 41,341 43,235 26,553
Other time accounts 39,890 39,524 49,068
Total interest-bearing deposits 264,287 254,845 230,217
Noninterest-bearing deposits 128,720 116,648 101,188
Total deposits 393,007 371,493 331,405
 
Other borrowings 8,448 8,448 7,590
Long-term debt 26,029 26,029 28,476
Accounts payable and accrued liabilities 4,110 4,109 4,097
Total liabilities 431,594 410,079 371,568
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 31,118 30,333 28,163
Accumulated other comprehensive income (1,690) (1,786) (523)
Total 65,423 64,542 63,635
Treasury stock - at cost (**) (26,120) (26,120) (26,114)
Total shareholders' equity 39,303 38,422 37,521
Total liabilities and shareholders' equity $ 470,897 $ 448,501 $ 409,089
 
* Common stock - shares outstanding 2,547,437 2,547,437 2,547,837
** Treasury stock - shares 1,746,398 1,746,398 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,
2017*       2016*
Interest income:
Interest and fees on loans $ 3,785 $ 3,575
Interest and dividend on securities available for sale 325 300
Interest on securities held to maturity 316 350
Dividends on Federal Home Loan Bank stock 24 22
Interest on federal funds sold 0 0
Interest on deposits in banks 50 22
Interest on certificates of deposit in other banks   2   0
Total interest income   4,502   4,269
 
Interest expense:
Interest on deposits 272 208
Interest on other borrowings 26 23
Interest on long-term debt   138   144
Total interest expense   436   375
Net interest income 4,066 3,894
Provision for loan losses   75   30
Net interest income after provision for losses on loans   3,991   3,864
 
Noninterest income:
Service charges on deposit accounts 270 276
Income from trust services 54 52
Income from retail brokerage services 89 80
Income from insurance services 433 472
Income from mortgage banking services 72 91
Net gain on the sale of securities 124 28
Other income   241   227
Total noninterest income   1,283   1,226
 
Noninterest expense:
Salary and employee benefits 2,298 2,176
Occupancy expense 279 288
Equipment expense 205 222
Data processing expense 387 343
Amortization of intangible assets 4 4
Other operating expense   728   695
Total noninterest expense   3,901   3,728
 
Income before income tax expense 1,373 1,362
Provision for income taxes   308   314
Net income $ 1,065 $ 1,048
 
Net income per share, basic $ 0.42 $ 0.41
Net income per share, diluted $ 0.42 $ 0.41
Dividends paid per share $ 0.11 $ 0.10
Basic weighted average shares outstanding   2,547,437   2,547,837
Diluted weighted average shares outstanding   2,547,437   2,547,837
 
 

SOUTHWEST GEORGIA FINANCIAL CORPORATION

Financial Highlights

(Dollars in thousands except per share data)

 
At March 31       2017       2016
Assets $ 470,897 $ 409,089
Loans, less unearned income & discount $ 310,707 $ 270,768
Deposits $ 393,007 $ 331,405
Shareholders' equity $ 39,303 $ 37,521
 
Three Months Ended March 31,
2017 2016
Performance Data & Ratios
Net income $ 1,065 $ 1,048
Earnings per share, basic $ 0.42 $ 0.41
Earnings per share, diluted $ 0.42 $ 0.41
Dividends paid per share $ 0.11 $ 0.10
Return on assets 0.91% 1.01%
Return on equity 10.91% 11.30%
Net interest margin (tax equivalent) 3.98% 4.29%
Dividend payout ratio 26.30% 24.32%
Efficiency ratio 70.15% 69.86%
 
Asset Quality Data & Ratios
Total nonperforming loans $ 1,222 $ 5
Total nonperforming assets $ 1,349 $ 87
Net loan charge offs $ 38 $ (4)
Reserve for loan losses to total loans 1.02% 1.13%
Nonperforming loans/total loans 0.39% 0.00%
Nonperforming assets/total assets 0.29% 0.02%
Net charge offs / average loans 0.05% (0.01)%
 
Capital Ratios
Average common equity to average total assets 8.38% 8.94%
Common equity Tier 1 capital ratio 12.54% 13.71%
Tier 1 capital ratio 12.54% 13.71%
Tier 1 leverage ratio 8.79% 9.16%
Total risk based capital ratio 13.50% 14.82%
Book value per share $ 15.43 $ 14.73
Tangible book value per share $ 15.42 $ 14.71
 
Quarterly       1st Qtr       4th Qtr       3rd Qtr       2nd Qtr       1st Qtr
Averages 2017 2016 2016 2016 2016
 
Assets $   466,019 $   452,865 $   435,880 $   420,685 $   415,168
Loans, less unearned income & discount $ 302,620 $ 291,573 $ 289,978 $ 279,543 $ 262,715
Deposits $ 388,761 $ 374,346 $ 357,421 $ 341,569 $ 338,399
Equity $ 39,054 $ 39,178 $ 39,110 $ 38,080 $ 37,097
Return on assets 0.91% 0.89% 0.89% 0.96% 1.01%
Return on equity 10.91% 10.23% 9.95% 10.63% 11.30%
Net income $ 1,065 $ 1,002 $ 973 $ 1,011 $ 1,048
Net income per share, basic $ 0.42 $ 0.39 $ 0.38 $ 0.40 $ 0.41
Net income per share, diluted $ 0.42 $ 0.39 $ 0.38 $ 0.40 $ 0.41
Dividends paid per share $ 0.11 $ 0.11 $ 0.11 $ 0.10 $ 0.10

Contacts

Company:
Southwest Georgia Financial Corporation
George R. Kirkland, 229-873-3830
Executive Vice President, CFO and Treasurer
investorinfo@sgfc.com
or
Investor Relations:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com

Release Summary

Southwest Georgia Financial Corporation (NYSE MKT: SGB), reports quarterly net income and record earnings per share for the first quarter 2017.

Contacts

Company:
Southwest Georgia Financial Corporation
George R. Kirkland, 229-873-3830
Executive Vice President, CFO and Treasurer
investorinfo@sgfc.com
or
Investor Relations:
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com