For More Information:
Ronald L. Thigpen John Marsh
Executive Vice President and COO President
Southeastern Bank Financial Corp. Marsh Communications LLC
706-481-1014 770-458-7553
Southeastern Bank Financial Corp. Reports
First Quarter 2007 Earnings
AUGUSTA, Ga., April 20, 2007 - Southeastern Bank Financial Corp. (OTCBB:SBFC),
the holding company for Georgia Bank & Trust Company of Augusta and Southern
Bank & Trust, today reported quarterly net income of $2.8 million for the three
months ended March 31, 2007, an increase of 12.2 percent from $2.5 million in
the first quarter of 2006. Diluted earnings per share for the first quarter of
2007 were $0.50, an 8.7 percent increase from $0.46 for the same period last
year.
"We continued on our path of solid, stable growth during the first quarter of
2007," said R. Daniel Blanton, president and chief executive officer. "After a
period of expansionary activity, our focus has been on consolidating that
development and focusing on the fundamentals of community banking - delivering
valuable banking products and services through a friendly, personalized approach
while supporting the communities in which we operate."
Total assets at March 31, 2007, were $1.1 billion, an increase of $185.6
million, or 20.1 percent, from a year ago, and $66.4 million, or 6.4 percent,
from Dec. 31, 2006. Loans outstanding at the end of the first quarter were
$774.2 million, and total deposits were $874.6 million, an increase of 3.2
percent and 9.1 percent, respectively, from Dec. 31, 2006.
Net interest income for the first quarter of 2007 was $9.1 million, up 13.5
percent from the same period a year ago. Noninterest income for the quarter was
$3.6 million, an increase of 11.9 percent over the first quarter of 2006.
Noninterest expense was $7.8 million in the first quarter of 2007, an increase
of $656,899 from a year ago.
Return on average assets (ROA) was 1.06 percent for the first quarter of 2007,
and return on average shareholders' equity (ROE) was 13.97 percent.
"The ongoing growth in our core deposits and loans continues to be driven by the
strength of our markets and our service-oriented approach to community banking,"
said Blanton. "The solid increase in our noninterest income during the first
quarter reflects the continued success of our retail investment and trust
service offerings."
About Southeastern Bank Financial Corp. Southeastern Bank Financial Corp. is the
$1.1 billion-asset bank holding company of Georgia Bank & Trust Company of
Augusta (GB&T) and Southern Bank & Trust (SB&T). GB&T is the largest locally
owned and operated community bank in the Augusta metro market, with eight
full-service Augusta-area offices and an office in Athens, Ga. SB&T is a
full-service, federally chartered thrift serving the Aiken County, S.C., market.
The company also has mortgage operations in Augusta and Savannah. The banks
focus primarily on real estate, commercial and consumer loans to individuals,
small to medium-sized businesses and professionals, and also provide wealth
management and trust services. The company's common stock is publicly traded on
the OTC Bulletin Board under the symbol SBFC. For more information, please visit
the company's Web site, www.georgiabankandtrust.com.
SAFE HARBOR STATEMENT - FORWARD-LOOKING STATEMENTS Statements made in this
release by Southeastern Bank Financial Corporation (The Company) other than
those concerning historical information, should be considered forward-looking
and subject to various risks and uncertainties. Such forward-looking statements
are made based upon management's belief as well as assumptions made by, and
information currently available to, management pursuant to "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. The
Company's actual results may differ materially from the results anticipated in
forward-looking statements due to a variety of factors, including: unanticipated
changes in the Bank's local economy and in the national economy; governmental
monetary and fiscal policies; deposit levels, loan demand, loan collateral
values and securities portfolio values; difficulties in interest rate risk
management; difficulties in expanding our operations into new geographic areas
and dealing with an additional regulatory agency; the effects of competition in
the banking business; changes in governmental regulation relating to the banking
industry, including regulations relating to branching and acquisitions; failure
of assumptions underlying the establishment of reserves for loan losses,
including the value of collateral underlying delinquent loans; and other
factors. The Company cautions that such factors are not exclusive. The Company
does not undertake to update any forward-looking statement that may be made from
time to time by, or on behalf of, the Company.
###
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
2007 December 31,
Assets (Unaudited) 2006
--------------- ---------------
Cash and due from banks $ 27,550,298 $ 25,709,915
Federal funds sold 52,027,000 14,688,000
Interest-bearing deposits in other banks 512,690 512,690
--------------- ---------------
Cash and cash equivalents 80,089,988 40,910,605
Investment securities
Available-for-sale 203,052,083 199,135,716
Held-to-maturity, at cost (fair values of
$1,988,286 and $3,048,196, respectively) 1,935,488 2,970,619
Loans held for sale 9,870,968 14,857,315
Loans 764,287,169 735,111,615
Less allowance for loan losses (10,273,905) (9,776,779)
--------------- ---------------
Loans, net 754,013,264 725,334,836
Premises and equipment, net 23,955,291 23,402,588
Accrued interest receivable 5,900,961 5,982,654
Bank-owned life insurance 16,146,854 15,982,052
Restricted equity securities 5,011,981 4,936,281
Other assets 7,606,427 7,689,596
--------------- ---------------
$1,107,583,305 $1,041,202,262
=============== ===============
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 111,366,348 $ 106,846,160
Interest-bearing:
NOW accounts 131,914,257 119,334,300
Savings 282,749,595 255,065,766
Money management accounts 50,245,625 45,897,176
Time deposits over $100,000 210,766,546 193,860,714
Other time deposits 87,589,731 80,758,973
--------------- ---------------
874,632,102 801,763,089
Federal funds purchased and securities sold
under repurchase agreements 61,328,650 70,019,551
Advances from Federal Home Loan Bank 60,000,000 60,000,000
Other borrowed funds 900,000 1,000,000
Accrued interest payable and other liabilities 8,925,585 9,495,498
Subordinated debentures 20,000,000 20,000,000
--------------- ---------------
Total liabilities 1,025,786,337 962,278,138
--------------- ---------------
Stockholders' equity:
Common stock, $3.00 par value; 10,000,000 shares
authorized; 5,434,045 and 5,433,285 shares issued in
2007 and 2006, respectively; 5,432,945 and 5,432,854
shares outstanding in 2007 and 2006, respectively 16,302,135 16,299,855
Additional paid-in capital 39,103,814 38,989,058
Retained earnings 27,339,916 25,287,006
Treasury stock, at cost; 1100 and 431 shares in
2007 and 2006, respectively (42,350) (16,809)
Accumulated other comprehensive loss, net (906,547) (1,634,986)
--------------- ---------------
Total stockholders' equity 81,796,968 78,924,124
--------------- ---------------
$1,107,583,305 $1,041,202,262
=============== ===============
SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
------------------------
2007 2006
----------- -----------
Interest income:
Loans, including fees $15,503,670 $11,812,088
Investment securities 2,611,334 2,456,072
Federal funds sold 366,082 150,593
Interest-bearing deposits in other banks 6,490 7,975
----------- -----------
Total interest income 18,487,576 14,426,728
----------- -----------
Interest expense:
Deposits 7,492,193 4,918,651
Federal funds purchased and securities sold
under repurchase agreements 867,145 683,908
Other borrowings 1,074,739 846,988
----------- -----------
Total interest expense 9,434,077 6,449,547
----------- -----------
Net interest income 9,053,499 7,977,181
Provision for loan losses 575,798 503,792
----------- -----------
Net interest income after provision
for loan losses 8,477,701 7,473,389
----------- -----------
Noninterest income:
Service charges and fees on deposits 1,397,016 1,352,144
Gain on sales of loans 1,284,278 1,254,345
Investment securities gains, net 33,191 -
Retail investment income 323,239 167,411
Trust service fees 273,536 192,465
Increase in cash surrender value of
bank-owned life insurance 164,802 139,270
Miscellaneous income 167,679 149,625
----------- -----------
Total noninterest income 3,643,741 3,255,260
----------- -----------
Noninterest expense:
Salaries and other personnel expense 4,795,507 4,439,980
Occupancy expenses 760,344 748,736
Other operating expenses 2,266,935 1,977,171
----------- -----------
Total noninterest expense 7,822,786 7,165,887
----------- -----------
Income before income taxes 4,298,656 3,562,762
Income tax expense 1,539,376 1,102,787
----------- -----------
Net income $ 2,759,280 $ 2,459,975
=========== ===========
Basic net income per share $ 0.51 $ 0.47
=========== ===========
Diluted net income per share $ 0.50 $ 0.46
=========== ===========
Weighted average common shares outstanding 5,433,639 5,273,688
=========== ===========
Weighted average number of common and
common equivalent shares outstanding 5,503,845 5,327,383
=========== ===========
Southeastern Bank Financial Corporation
Quarterly Ratios
1st Quarter YTD 2007
-----------------------
RETURN ON AVERAGE ASSETS: 1.06% 1.06%
RETURN ON AVERAGE EQUITY: 13.97% 13.97%
NET INTEREST MARGIN: 3.61% 3.61%
CHARGE OFFS / GROSS AVG LOANS 0.01% 0.01%