Southwest Georgia Financial Corporation Reports Fourth Quarter and 2012 Results
Southwest Georgia Financial Corporation Reports Fourth Quarter and 2012 Results
MOULTRIE, Ga.--(BUSINESS WIRE)-- Southwest Georgia Financial Corporation (the "Corporation") (NYSE MKT: SGB), a full-service community bank holding company, today reported its results of operations for the fourth quarter and year ended December 31, 2012.
Fourth Quarter and Year-End Income Highlights
Net income was $643 thousand in the 2012 fourth quarter, or $0.25 per diluted share, compared with $396 thousand, or $0.15 per diluted share in the fourth quarter of 2011. The increase was mainly due to a $352 thousand increase in income from interest and fees on loans and a $74 thousand decrease in provision for loan losses.
For the year ended December 31, 2012, net income was $1.9 million, or $0.76 per diluted share, a 32.7% increase, when compared with $1.5 million, or $0.57 per diluted share for the same period in the prior year.
Net interest margin was 4.23% for the fourth quarter of 2012 and 4.22% for the year ended December 31, 2012, down 6 and up 11 basis points, compared with the respective prior-year periods. Strengthened net interest margin for the year was mainly attributed to continued growth in loans.
Net interest income after provision for loan losses increased 14.8% to $11.4 million for the twelve months ending December 31, 2012. The improvement was due to a $927 thousand increase in net interest income and a $539 thousand decrease in loan loss provisions.
Balance Sheet Trends and Asset Quality
Total assets at December 31, 2012 were $347.2 million, an increase of 13.6%, or $41.5 million from December 31, 2011.
Total loans increased $22.8 million, or 12.6%, to $204.1 million, compared with the same period last year. The growth in loans was funded by increases in noninterest-bearing and money market deposits.
Total deposits grew $42.9 million to $291.8 million at December 31, 2012, an increase of 17.2% from the end of 2011.
Non-performing asset ratio was 0.53% at December 31, 2012, a 65 basis point improvement when compared with 1.18% at the end of 2011.
Capital Management
The Company has a total risk based capital ratio of 15.56% and Tier 1 capital ratio of 14.31%, both measurably above the Federal "well capitalized" standard.
Return on equity increased to 8.68% compared with 5.57% in the fourth quarter of 2011. For the full year, return on equity increased to 6.62% from 5.25% for 2011.
Tangible book value per share at December 31, 2012, was $11.60, up from $10.99 at the end of 2011.
DeWitt Drew, President and CEO commented, "It is encouraging that our deposit growth is evenly spread among our three banking regions. Our effort to focus on core funding and investments in growing markets is beginning to show up in our earnings. And while work remains to be done, our asset quality indicators look to be at a relatively normal level."
Dividends
In December 2012, the Corporation paid a fourth quarter cash dividend of $0.04 per common share. The Corporation paid dividends of $0.16 per common share in 2012 compared with $0.10 per common share in 2011. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 84 consecutive years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $347 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, Thomas County, Worth County, and Lowndes County. In addition to conventional banking services, the bank provides investment planning and management, trust management, mortgage banking, and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services which is located in Colquitt County. Mortgage banking for primarily commercial properties is provided by Empire Financial Services, Inc., a mortgage banking services firm.
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 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.For a discussion of some risks and other factors that could cause the Company's actual results to differ materially from such statements, please refer to 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.
SOUTHWEST GEORGIA FINANCIAL CORPORATION | ||||||||||||
CONSOLIDATED STATEMENT OF CONDITION | ||||||||||||
(Dollars in thousands except per share data) | ||||||||||||
(Unaudited) | (Audited) | (Audited) | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2012 | 2011 | 2010 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 8,646 | $ | 6,552 | $ | 5,112 | ||||||
Interest-bearing deposits in banks | 27,935 | 14,498 | 10,959 | |||||||||
Certificates of deposit in other banks | 3,920 | 980 | 0 | |||||||||
Investment securities available for sale | 21,672 | 28,641 | 54,946 | |||||||||
Investment securities held to maturity | 59,863 | 52,339 | 46,255 | |||||||||
Federal Home Loan Bank stock, at cost | 1,448 | 1,787 | 1,650 | |||||||||
Loans, less unearned income and discount | 204,137 | 181,302 | 157,733 | |||||||||
Allowance for loan losses | (2,845 | ) | (3,100 | ) | (2,755 | ) | ||||||
Net loans | 201,292 | 178,202 | 154,978 | |||||||||
Premises and equipment | 10,149 | 9,942 | 9,221 | |||||||||
Foreclosed assets, net | 1,690 | 2,358 | 3,288 | |||||||||
Intangible assets | 327 | 547 | 641 | |||||||||
Bank owned life insurance | 4,767 | 4,593 | 3,029 | |||||||||
Other assets | 5,472 | 5,211 | 6,325 | |||||||||
Total assets | $ | 347,181 | $ | 305,650 | $ | 296,404 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Deposits: | ||||||||||||
NOW accounts | $ | 28,881 | $ | 29,841 | $ | 29,239 | ||||||
Money market | 77,133 | 45,638 | 50,468 | |||||||||
Savings | 25,988 | 24,367 | 22,635 | |||||||||
Certificates of deposit $100,000 and over | 36,591 | 32,629 | 32,472 | |||||||||
Other time accounts | 55,098 | 59,950 | 65,859 | |||||||||
Total interest-bearing deposits | 223,691 | 192,425 | 200,673 | |||||||||
Noninterest-bearing deposits | 68,071 | 56,486 | 38,858 | |||||||||
Total deposits | 291,762 | 248,911 | 239,531 | |||||||||
Other borrowings | 2,000 | 2,000 | 2,000 | |||||||||
Long-term debt | 20,000 | 22,000 | 24,000 | |||||||||
Accounts payable and accrued liabilities | 3,544 | 4,188 | 4,098 | |||||||||
Total liabilities | 317,306 | 277,099 | 269,629 | |||||||||
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 | 20,664 | 19,133 | 17,926 | |||||||||
Accumulated other comprehensive income | (670 | ) | (463 | ) | (1,032 | ) | ||||||
Total | 55,989 | 54,665 | 52,889 | |||||||||
Treasury stock - at cost (**) | (26,114 | ) | (26,114 | ) | (26,114 | ) | ||||||
Total shareholders' equity | 29,875 | 28,551 | 26,775 | |||||||||
Total liabilities and shareholders' equity | $ | 347,181 | $ | 305,650 | $ | 296,404 | ||||||
* 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 Twelve Months | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
Interest income: | 2012* | 2011* | 2012* | 2011 | ||||||||||||
Interest and fees on loans | $ | 3,052 | $ | 2,700 | $ | 11,455 | $ | 10,408 | ||||||||
Interest and dividend on securities available for sale | 151 | 248 | 711 | 1,439 | ||||||||||||
Interest on securities held to maturity | 359 | 327 | 1,456 | 1,205 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 11 | 4 | 33 | 15 | ||||||||||||
Interest on deposits in banks | 18 | 8 | 60 | 35 | ||||||||||||
Interest on certificates of deposit in other banks | 7 | 2 | 19 | 2 | ||||||||||||
Total interest income | 3,598 | 3,289 | 13,734 | 13,104 | ||||||||||||
Interest expense: | ||||||||||||||||
Interest on deposits | 269 | 300 | 1,111 | 1,370 | ||||||||||||
Interest on federal funds purchased | 0 | 0 | 0 | 2 | ||||||||||||
Interest on other borrowings | 14 | 11 | 54 | 42 | ||||||||||||
Interest on long-term debt | 177 | 191 | 733 | 781 | ||||||||||||
Total interest expense | 460 | 502 | 1,898 | 2,195 | ||||||||||||
Net interest income | 3,138 | 2,787 | 11,836 | 10,909 | ||||||||||||
Provision for loan losses | 130 | 204 | 445 | 984 | ||||||||||||
Net interest income after provision for losses on loans | 3,008 | 2,583 | 11,391 | 9,925 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges on deposit accounts | 322 | 327 | 1,242 | 1,360 | ||||||||||||
Income from trust services | 53 | 50 | 205 | 214 | ||||||||||||
Income from retail brokerage services | 100 | 76 | 382 | 324 | ||||||||||||
Income from insurance services | 305 | 339 | 1,280 | 1,273 | ||||||||||||
Income from mortgage banking services | 318 | 358 | 1,676 | 1,477 | ||||||||||||
Provision for foreclosed property losses | (95 | ) | (75 | ) | (320 | ) | (300 | ) | ||||||||
Net gain (loss) on the sale or disposition of assets | 104 | 4 | 24 | (160 | ) | |||||||||||
Net gain on the sale of securities | 0 | 5 | 338 | 381 | ||||||||||||
Net loss on the impairment of equity securities | 0 | 0 | 0 | (12 | ) | |||||||||||
Other income | 164 | 151 | 698 | 602 | ||||||||||||
Total noninterest income | 1,271 | 1,235 | 5,525 | 5,159 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salary and employee benefits | 1,986 | 1,934 | 8,717 | 7,717 | ||||||||||||
Occupancy expense | 265 | 236 | 1,006 | 953 | ||||||||||||
Equipment expense | 256 | 233 | 940 | 812 | ||||||||||||
Data processing expense | 241 | 265 | 1,082 | 1,039 | ||||||||||||
Amortization of intangible assets | 54 | 56 | 220 | 219 | ||||||||||||
Other operating expense | 667 | 627 | 2,631 | 2,596 | ||||||||||||
Total non-interest expense | 3,469 | 3,351 | 14,596 | 13,336 | ||||||||||||
Income before income tax expense | 810 | 467 | ||||||||||||||
