Southwest Georgia Financial Corp.

$SGB - AMEX - Banks and Thrifts
0 LAST
0 CHANGE $
0 CHANGE %
loader
ON 0
WATCHLISTS

COMMUNIQUÉ DETAILS

Up 0 0 Down
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 2,320 1,748
Provision for income taxes   167     71     381     287  
Net income $ 643   $ 396   $ 1,939   $ 1,461  
 
Net income per share, basic $ 0.25   $ 0.15   $ 0.76   $ 0.57  
Net income per share, diluted $ 0.25   $ 0.15   $ 0.76   $ 0.57  
Dividends paid per share $ 0.04   $ -   $ 0.16   $ 0.10  
Basic weighted average shares outstanding   2,547,837     2,547,837     2,547,837     2,547,837  
Diluted weighted average shares outstanding   2,547,837     2,547,837     2,547,837     2,547,865  
 

SOUTHWEST GEORGIA FINANCIAL CORPORATION

Financial Highlights

(Dollars in thousands except per share data)

 
At December 31   2012   2011
Assets $ 347,181 $ 305,650
Loans, less unearned income & discount $ 204,137 $ 181,302
Deposits $ 291,762 $ 248,911
Shareholders' equity $ 29,875 $ 28,551
 
Three Months Ended December 31, Twelve Months Ended December 31,
2012 2011 2012 2011
Performance Data & Ratios
Net income $ 643 $ 396 $ 1,939 $ 1,461
Earnings per share, basic $ 0.25 $ 0.15 $ 0.76 $ 0.57
Earnings per share, diluted $ 0.25 $ 0.15 $ 0.76 $ 0.57
Dividends paid per share $ 0.04 $ - $ 0.16 $ 0.10
Return on assets 0.75 % 0.53 % 0.60 % 0.48 %
Return on equity 8.68 % 5.57 % 6.62 % 5.25 %
Net interest margin (tax equivalent) 4.23 % 4.29 % 4.22 % 4.11 %
Dividend payout ratio 15.86 % 0.00 % 21.02 % 17.44 %
Efficiency ratio 75.79 % 80.60 % 81.15 % 80.63 %
 
Asset Quality Data & Ratios
Total nonperforming loans $ 25 $ 1,153 $ 25 $ 1,153
Total nonperforming assets $ 1,849 $ 3,621 $ 1,849 $ 3,621
Net loan charge offs $ 30 $ 7 $ 700 $ 638
Reserve for loan losses to total loans 1.39 % 1.71 % 1.39 % 1.71 %
Nonperforming loans/total loans 0.01 % 0.64 % 0.01 % 0.64 %
Nonperforming assets/total assets 0.53 % 1.18 % 0.53 % 1.18 %
Net charge offs / average loans 0.06 % 0.02 % 0.36 % 0.37 %
 
Capital Ratios
Average common equity to average total assets 8.68 % 9.46 % 8.99 % 9.06 %
Tier 1 capital ratio 14.31 % 15.45 % 14.31 % 15.45 %
Tier 1 leverage ratio 8.85 % 9.47 % 8.85 % 9.47 %
Total risk based capital ratio 15.56 % 16.71 % 15.56 % 16.71 %
Book value per share $ 11.73 $ 11.21 $ 11.73 $ 11.21
Tangible book value per share $ 11.60 $ 10.99 $ 11.60 $ 10.99
 
     
Quarterly   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr   4th Qtr
Averages 2012 2012 2012 2012 2011
 
Assets $ 341,418 $ 319,266 $ 319,525 $ 322,726 $ 300,863
Loans, less unearned income & discount $ 203,871 $ 199,145 $ 190,142 $ 180,796 $ 180,567
Deposits $ 285,965 $ 263,747 $ 262,095 $ 265,993 $ 243,893
Equity $ 29,624 $ 29,194 $ 29,343 $ 28,984 $ 28,458
Return on assets 0.75 % 0.53 % 0.38 % 0.71 % 0.53 %
Return on equity 8.68 % 5.76 % 4.16 % 7.88 % 5.57 %
Net income $ 643 $ 421 $ 305 $ 571 $ 396
Net income per share, basic $ 0.25 $ 0.17 $ 0.12 $ 0.22 $ 0.16
Net income per share, diluted $ 0.25 $ 0.17 $ 0.12 $ 0.22 $ 0.16
Dividends paid per share $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ -

Southwest Georgia Financial Corporation
George R. Kirkland, 229-873-3830
Senior Vice President and Treasurer
investorinfo@sgfc.com

Source: Southwest Georgia Financial Corporation

SHARE THIS: Twitter StockTwits LinkedIn Google Plus SHORT URL: http://bdvt.co/9Lx

SIGN IN TO BOARDVOTE

FORGOT PASSWORD?