This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Southwest Georgia Financial Corporation Announces Results For Second Quarter 2012

Southwest Georgia Financial Corporation (the “Corporation”) (NYSE MKT: SGB), a full-service community bank holding company, today reported its results of operations for the second quarter ended June 30, 2012.

Second Quarter Highlights

  • Net income was $305 thousand in the 2012 second quarter or $0.12 per diluted share. The second quarter decline in net income was primarily due to a large pension contribution. Excluding the $850 thousand quarter-to-date pension contribution, net income would have been $866 thousand for the second quarter 2012.
  • For the six months ended June 30, 2012, net income was $876 thousand, or $0.34 per diluted share, compared with $966 thousand for the same period last year, or $0.38 per diluted share.
  • Net interest margin grew to 4.24% for the second quarter of 2012 and 4.17% for the first six months of 2012, up 3 and 16 basis points, respectively, compared with the prior year. Strengthened net interest margin was mainly attributed to continued loan growth.
  • Noninterest income expanded primarily as the result of a $150 thousand quarterly increase in gains from the sale of securities.

DeWitt Drew, President and CEO, commented, “Earnings were impacted by the $850 thousand contribution to the Company’s frozen pension plan during the second quarter. While the plan has earned an average of over 6.3% for the past three years, the discount rate used in funding calculations continues to drop dramatically, causing large increases in future plan liabilities. It will require higher interest rates to reverse this trend. In the meantime, we are committed to making sufficient contributions to keep the plan adequately funded until the discount rate rises and plan liabilities decrease.”

Balance Sheet Trends and Asset Quality

  • Total assets at June 30, 2012 were $315.5 million, up $14.1 million from June 30, 2011.
  • Total loans increased $17.7 million, or 10.0%, to $194.3 million when compared with the same period last year. The growth in loans was funded by decreases in the investment securities portfolio.
  • Total deposits grew $16.2 million year-over-year to $259.3 million at June 30, 2012.
  • Nonperforming assets increased to 1.69% of total assets compared with 1.15% at the end of the second quarter 2011. The increase was due to one large loan placed on nonaccrual during the quarter. The collateral securing the loan has been placed under contract for sale and closing is scheduled in August.
  • Shareholders’ equity grew to $28.9 million as of June 30, 2012, up from $27.9 million at June 30, 2011.

Mr. Drew added, “We remain steadfast in our commitment to increasing our presence in growing communities. Our growth in deposits and loans is a direct reflection of our growing presence in Valdosta. This market has grown rapidly over the last decade and is a central part of our growth and diversification strategy.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs