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."


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:


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.



(Dollars in thousands except per share data)

 (Unaudited) (Audited) (Audited)
December 31,December 31,December 31,
Cash and due from banks$8,646$6,552$5,112
Interest-bearing deposits in banks27,93514,49810,959
Certificates of deposit in other banks3,9209800
Investment securities available for sale21,67228,64154,946
Investment securities held to maturity59,86352,33946,255
Federal Home Loan Bank stock, at cost1,4481,7871,650
Loans, less unearned income and discount204,137181,302157,733
Allowance for loan losses(2,845)(3,100)(2,755)
Net loans201,292 178,202 154,978 
Premises and equipment10,1499,9429,221
Foreclosed assets, net1,6902,3583,288
Intangible assets327547641
Bank owned life insurance4,7674,5933,029
Other assets5,472 5,211 6,325 
Total assets$347,181 $305,650 $296,404 
NOW accounts$28,881$29,841$29,239
Money market77,13345,63850,468
Certificates of deposit $100,000 and over36,59132,62932,472
Other time accounts55,098 59,950 65,859 
Total interest-bearing deposits223,691192,425200,673
Noninterest-bearing deposits68,071 56,486 38,858 
Total deposits291,762 248,911 239,531 
Other borrowings2,0002,0002,000
Long-term debt20,00022,00024,000
Accounts payable and accrued liabilities3,544 4,188 4,098 
Total liabilities317,306 277,099 269,629 
Shareholders' equity:

Common stock - par value $1; 5,000,000 shares authorized; 4,293,835 shares issued (*)

Additional paid-in capital31,70131,70131,701
Retained earnings20,66419,13317,926
Accumulated other comprehensive income(670)(463)(1,032)
Treasury stock - at cost (**)(26,114)(26,114)(26,114)
Total shareholders' equity29,875 28,551 26,775 
Total liabilities and shareholders' equity$347,181 $305,650 $296,404 

*  Common stock - shares outstanding

** Treasury stock - shares1,745,9981,745,9981,745,998



(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 sale1512487111,439
Interest on securities held to maturity3593271,4561,205
Dividends on Federal Home Loan Bank stock1143315
Interest on deposits in banks1886035
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 deposits2693001,1111,370
Interest on federal funds purchased0002
Interest on other borrowings14115442
Interest on long-term debt 177  191  733  781 
Total interest expense 460  502  1,898  2,195 
Net interest income3,1382,78711,83610,909
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 accounts3223271,2421,360
Income from trust services5350205214
Income from retail brokerage services10076382324
Income from insurance services3053391,2801,273
Income from mortgage banking services3183581,6761,477
Provision for foreclosed property losses(95)(75)(320)(300)
Net gain (loss) on the sale or disposition of assets104424(160)
Net gain on the sale of securities05338381
Net loss on the impairment of equity securities000(12)
Other income 164  151  698  602 
Total noninterest income 1,271  1,235  5,525  5,159 
Non-interest expense:
Salary and employee benefits1,9861,9348,7177,717
Occupancy expense2652361,006953
Equipment expense256233940812
Data processing expense2412651,0821,039
Amortization of intangible assets5456220219
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 expense810467
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