News Release
CONTACTS:
| Company: | Investor Relations: |
| George R. Kirkland | Deborah K. Pawlowski |
| Executive Vice President, CFO and Treasurer | Kei Advisors LLC |
| Phone: (229) 873-3830 | Phone: (716) 843-3908 |
| investorinfo@sgfc.com | dpawlowski@keiadvisors.com |
For Immediate Release
Southwest Georgia Financial Corporation Reports Record Earnings per Share for 2017 First Quarter
MOULTRIE, GEORGIA, April 25, 2017 -- 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.”
| -MORE- |
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.
| -MORE- |
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 | |||||||||
| -MORE- |
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 | ||||||
| -MORE- |
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 | ||||||||||
| -END- |