Southwest Georgia Financial Corporation Reports Record Earnings Per Share For 2015

MOULTRIE, Ga., Jan. 26, 2016 (GLOBE NEWSWIRE) -- 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, 2015.

Income Highlights
  • Full year 2015 net income was $3.4 million, or $1.32 per diluted share, a 16.2% increase from $2.9 million, or $1.14 per diluted share, for the 2014 period.  Loan growth funded by low cost core deposits resulted in record earnings per share in 2015.
  • Annual net interest income was $14.1 million for 2015, up $754 thousand over the prior-year period.  Noninterest income was down $726 thousand year-over-year due to lower mortgage banking services income and gains on the sale of securities from the prior year.  Offsetting some of this decline was prudent cost control which resulted in a $341 thousand decrease in noninterest expense in 2015. 
  • Net income was $843 thousand in the 2015 fourth quarter, or $0.33 per diluted share, compared with $662 thousand, or $0.26 per diluted share, in the fourth quarter of 2014.  Net interest income increased $197 thousand mostly due to increased interest and fees on loans in the fourth quarter of 2015.

Balance Sheet Trends and Asset Quality
  • Total assets at December 31, 2015, were up $40.6 million, or 10.8%, to $414.9 million compared with December 31, 2014.
  • Total loans increased $26.4 million, or 11.8%, to $250.8 million from the same period last year.  Average loans grew $12.6 million over 2014. 
  • Total deposits were $339.0 million at year-end, up $29.0 million from 2014.  Also over the same period noninterest-bearing deposits increased $20.4 million, or 25.1%, to $101.8 million.

Capital Management
  • Tangible book value per share at December 31, 2015, was $14.15, up from $13.45 at the end of 2014.

"We achieved record annual earnings per share in 2015 by remaining focused on our strategy to expand our customer base, by growing loans, and by increasing low cost core funding in our local markets while maintaining strong asset quality," commented DeWitt Drew, President and CEO.  "Total loans increased nearly 12% year-over-year while noninterest-bearing deposits were up 25%, reaching nearly a third of total deposits.  Maintaining that mix will support margin expansion and higher profitability in an improving rate environment."

Mr. Drew added, "While we are seeing a slight slowdown in lending as the agricultural industry in our area is somewhat challenged due to lower commodity prices, we also see opportunities to build our business as we expand our footprint into Tift County, a growing market that is adjacent to our primary market of Colquitt County.  We are also having great success in the Valdosta market and look to build on that in the coming year.  At the end of 2015, we added two senior level bankers with significant experience and relationships in these markets to drive the success of our key strategic initiatives."

Dividends

In December 2015, the Corporation paid a quarterly cash dividend of $0.10 per common share.  The Corporation paid dividends of $0.40 per common share in 2015, a 25% increase over the $0.32 per common share paid in 2014.  Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 87 consecutive years.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $415 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, Worth County, and Lowndes County and a loan production office located in Tift County.  In addition to conventional banking services, the bank 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.

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 Corporation'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 Corporation's actual results to differ materially from such statements, please refer to the Corporation'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 Corporation 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.

 

SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
(Dollars in thousands except per share data)
             
    (Unaudited)   (Audited)   (Audited)
    December 31,   December 31,   December 31,
      2015       2014       2013  
ASSETS            
Cash and due from banks $   6,157   $   6,783   $   7,074  
Interest-bearing deposits in banks     24,923       5,776       28,296  
Certificates of deposit in other banks     245       1,470       3,430  
Investment securities available for sale     51,476       53,838       36,461  
Investment securities held to maturity     60,889       61,588       59,624  
Federal Home Loan Bank stock, at cost     1,869       1,560       1,721  
Loans, less unearned income and discount     250,786       224,400       218,688  
  Allowance for loan losses     (3,032 )     (3,114 )     (3,078 )
  Net loans     247,754       221,286       215,610  
Premises and equipment     11,158       11,756       10,336  
Foreclosed assets, net     82       274       406  
Intangible assets     51       66       111  
Bank owned life insurance     5,231       5,104       4,980  
Other assets     5,020       4,779       5,846  
  Total assets $   414,855   $   374,280   $   373,895  
LIABILITIES AND SHAREHOLDERS' EQUITY            
Deposits:            
  NOW accounts $   25,383   $   22,890   $   23,088  
  Money market     108,226       99,918       89,934  
  Savings     27,721       28,156       28,792  
  Certificates of deposit $100,000 and over     25,189       31,367       36,956  
  Other time accounts     50,728       46,300       49,836  
  Total interest-bearing deposits     237,247       228,631       228,606  
  Noninterest-bearing deposits     101,769       81,343       81,829  
  Total deposits     339,016       309,974       310,435  
             
  Other borrowings     7,591       5,133       11,800  
  Long-term debt     28,476       22,067       17,200  
  Accounts payable and accrued liabilities     3,675       2,771       3,040  
  Total liabilities     378,758       339,945       342,475  
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     27,369       25,015       22,927  
  Accumulated other comprehensive income     (1,153 )     (561 )     (1,388 )
  Total     62,211       60,449       57,534  
Treasury stock - at cost (**)     (26,114 )     (26,114 )     (26,114 )
  Total shareholders' equity     36,097       34,335       31,420  
  Total liabilities and shareholders' equity $   414,855   $   374,280   $   373,895  
             
* 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:   2015*   2014*     2015*     2014  
  Interest and fees on loans $   3,271     $   3,061     $   12,695     $   12,135  
  Interest and dividend on securities available for sale   280       280       1,146       1,069  
  Interest on securities held to maturity   353       333       1,440       1,353  
  Dividends on Federal Home Loan Bank stock   19       18       73       70  
  Interest on deposits in banks   21       12       62       52  
  Interest on certificates of deposit in other banks   2       6       12       33  
  Total interest income   3,946       3,710         15,428       14,712  
               
Interest expense:              
  Interest on deposits   208       184         796       750  
  Interest on other borrowings   20       16         68       169  
  Interest on long-term debt   125       114         453       436  
  Total interest expense   353       314         1,317       1,355  
  Net interest income   3,593       3,396         14,111       13,357  
Provision for loan losses   0       75         141       330  
  Net interest income after provision for losses on loans   3,593       3,321         13,970       13,027  
               
Noninterest income:              
  Service charges on deposit accounts   282       312         1,121       1,275  
  Income from trust services   55       53         245       241  
  Income from retail brokerage services   140       105         421       376  
  Income from insurance services   306       332         1,373       1,324  
  Income from mortgage banking services   82       111         318       645  
  Net gain (loss) on the sale or disposition of assets   0       32       22       89  
  Net gain on the sale of securities   0       0       4       293  
  Other income   181       170         756       743  
  Total noninterest income   1,046       1,115         4,260       4,986  
               
Noninterest expense:              
  Salary and employee benefits   2,034       2,086         7,914       8,359  
  Occupancy expense   266       280         1,121       1,061  
  Equipment expense   259       237         923       896  
  Data processing expense   303       290         1,224       1,130  
  Amortization of intangible assets   4       4         16       45  
  Other operating expense   724       728         2,831       2,879  
  Total noninterest expense   3,590       3,625         14,029       14,370  
               
Income before income tax expense   1,049       811       4,201       3,643  
Provision for income taxes   206       149       827       739  
  Net income $   843     $   662     $  3,374     $   2,904  
               
Net income per share, basic $    0.33     $   0.26     $    1.32     $   1.14  
Net income per share, diluted $   0.33     $   0.26     $  1.32     $   1.14  
Dividends paid per share $   0.10     $   0.08     $    0.40     $   0.32  
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       2,547,837  

SOUTHWEST GEORGIA FINANCIAL CORPORATION
Financial Highlights
(Dollars in thousands except per share data)
                       
At December 31     2015           2014    
Assets   $ 414,855         $ 374,280    
Loans, less unearned income & discount   $ 250,786         $ 224,400    
Deposits   $ 339,016         $ 309,974    
Shareholders' equity   $   36,097         $   34,335    
               
  Three Months Ended December 31,   Twelve Months Ended December 31,
    2015       2014       2015       2014  
Performance Data & Ratios              
Net income $   843     $   662     $   3,374     $   2,904  
Earnings per share, basic $   0.33     $   0.26     $   1.32     $   1.14  
Earnings per share, diluted $   0.33     $   0.26     $   1.32     $   1.14  
Dividends paid per share $   0.10     $   0.08     $   0.40     $   0.32  
Return on assets   0.83 %     0.69 %     0.85 %     0.76 %
Return on equity   9.16 %     7.75 %     9.38 %     8.74 %
Net interest margin (tax equivalent)   3.99 %     4.03 %     4.04 %     3.99 %
Dividend payout ratio   30.22 %     30.77 %     30.21 %     28.08 %
Efficiency ratio   73.99 %     77.30 %     73.03 %     75.43 %
               
Asset Quality Data & Ratios              
Total nonperforming loans $   1,546     $   786     $   1,546     $   786  
Total nonperforming assets $   1,629     $   1,060     $   1,629     $   1,060  
Net loan charge offs $   148     $   157     $   223     $   293  
Reserve for loan losses to total loans   1.21 %     1.39 %     1.21 %     1.39 %
Nonperforming loans/total loans   0.62 %     0.35 %     0.62 %     0.35 %
Nonperforming assets/total assets   0.39 %     0.28 %     0.39 %     0.28 %
Net charge offs / average loans   0.24 %     0.28 %     0.09 %     0.13 %
               
Capital Ratios              
Average common equity to average total assets   9.03 %     8.97 %     9.02 %     8.70 %
Common equity Tier 1 capital ratio   14.09 %     14.45 %     14.09 %     14.45 %
Tier 1 capital ratio   14.09 %     14.45 %     14.09 %     14.45 %
Tier 1 leverage ratio   9.13 %     9.14 %     9.13 %     9.14 %
Total risk based capital ratio   15.24 %     15.70 %     15.24 %     15.70 %
Book value per share $   14.17     $   13.48     $   14.17     $   13.48  
Tangible book value per share $   14.15     $   13.45     $   14.15     $   13.45  

 
Quarterly 4th Qtr   3rd Qtr   2nd Qtr   1st Qtr   4th Qtr
Averages   2015       2015       2015       2015       2014  
                   
Assets $ 407,924     $ 394,441     $ 396,762     $ 395,220     $ 381,239  
Loans, less unearned income & discount $ 246,353     $ 238,023     $ 233,464     $ 225,665     $ 223,906  
Deposits $ 337,194     $ 327,072     $ 329,869     $ 330,394     $ 313,595  
Equity $   36,833     $   36,154     $   35,687     $   35,134     $   34,186  
Return on assets   0.83 %     0.87 %     0.87 %     0.82 %     0.69 %
Return on equity   9.16 %     9.48 %     9.69 %     9.21 %     7.75 %
Net income $   843     $   857     $   865     $   809     $   662  
Net income per share, basic $   0.33     $   0.33     $   0.34     $   0.32     $   0.26  
Net income per share, diluted $   0.33     $   0.33     $   0.34     $   0.32     $   0.26  
Dividends paid per share $   0.10     $   0.10     $   0.10     $   0.10     $   0.08  

 
INVESTOR AND MEDIA CONTACT:       George R. Kirkland              Executive Vice President, CFO, and TreasurerPhone: (229) 873-3830                                          investorinfo@sgfc.com

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