Southwest Georgia Financial Corporation (the “Company”) (NYSE
American: SGB), a full-service community bank holding company,
today reported results of operations for the fourth quarter and
year ended December 31, 2019. Comparisons are to prior-year periods
unless otherwise noted.
“2019 was a record year as our team of exceptional bankers grew
loans and improved our deposit mix, all while increasing asset
yields over 20 basis points and decreasing funding costs by almost
20 basis points. For the fourth quarter, our net interest margin
improved to 4.30 percent, 36 basis points higher than the fourth
quarter last year,” commented DeWitt Drew, President and CEO. “Our
investments in Valdosta and Tifton have been transformational for
our Company, and have allowed us to unlock the value of the core
funding in our Moultrie and Sylvester operations.”
Mr. Drew added, “We are excited about our agreement to merge
with and into The First Bancshares, Inc. (Nasdaq: FBMS). The
combination will provide significant new resources and value to our
staff, our customers, and most importantly, our shareholders. It is
anticipated that, after customary approvals, a closing can occur in
the second quarter of 2020.”
Income Highlights
- Achieved record annual net income of $5.3 million, up $653
thousand, or 14%. On a per diluted share basis, earnings increased
$0.25 to $2.08. Net interest income increased 11% or $2.0 million,
primarily due to higher yields on loans, lower rates on interest
bearing deposits, and improved deposit mix.
- Higher annual net interest income, and a 15%, or $611 thousand,
increase in non-interest income, more than offset the $1.5 million,
or 9%, increase in non-interest expenses.
- Fourth quarter net income was up 20% to $1.3 million, or $0.53
per diluted share, compared with $1.1 million, or $0.44 per diluted
share. Net interest income for the quarter increased $775 thousand,
or 16%. Non-interest expense was up $563 thousand, or 13%,
reflecting higher pension, legal, professional, and post-employment
benefits expenses that were up $472 thousand, in aggregate.
Balance Sheet Trends
- Total assets at year-end were $555.4 million, up 4%. Loans grew
approximately 6%, or $21.3 million, to $398.1 million, while
continuing to maintain high standards of credit quality.
Nonperforming loans to total loans were 0.06%.
- Total deposits of $473.4 million, were up $17.8 million, or 4%,
which reflects a $10.2 million, or 10%, increase in non-interest
bearing deposits. Federal Home Loan Bank advances were down
slightly to $28.5 million.
Capital Management
- Book value grew 13% to $19.39 per share.
- The Company has a Total Risk Based Capital Ratio of 13.06%, a
Common Equity Tier 1 Capital Ratio of 12.14%, and a Leverage
Capital Ratio of 8.59%, all measurably above the federal “well
capitalized” standard.
- In December 2019 the Company paid a quarterly cash dividend of
$0.12 per common share, and for the full year paid $0.48 per share.
Southwest Georgia Financial Corporation, or its predecessor,
Southwest Georgia Bank, has paid cash dividends for 91 consecutive
years.
About Southwest Georgia Financial Corporation
Southwest Georgia Financial Corporation is a state-chartered
bank holding company with approximately $555 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 and
branch offices located in Baker County, Worth County, Lowndes
County, and 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 at: www.sgb.bank.
About The First Bancshares, Inc.
The First Bancshares, Inc., headquartered in Hattiesburg,
Mississippi, is the parent company of The First, A National Banking
Association. Founded in 1996, The First has operations in
Mississippi, Louisiana, Alabama, Florida and Georgia. The Company’s
stock is traded on NASDAQ Global Market under the symbol FBMS.
Information is available on the Company’s website:
www.thefirstbank.com.
Forward Looking Statement
This news release contains “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995. In
general, forward-looking statements usually use words such as
“may,” “believe,” “expect,” “anticipate,” “intend,” “will,”
“should,” “plan,” “estimate,” “predict,” “continue” and “potential”
or the negative of these terms or other comparable terminology,
including statements related to the expected timing of the closing
of the merger, the expected returns and other benefits of the
merger, to shareholders, expected improvement in operating
efficiency resulting from the merger, estimated expense reductions
resulting from the transactions and the timing of achievement of
such reductions, the impact on and timing of the recovery of the
impact on tangible book value, and the effect of the merger on the
Company’s capital ratios. Forward-looking statements represent
management’s beliefs, based upon information available at the time
the statements are made, with regard to the matters addressed; they
are not guarantees of future performance. Forward-looking
statements are subject to numerous assumptions, risks and
uncertainties that change over time and could cause actual results
or financial condition to differ materially from those expressed in
or implied by such statements.
Factors that could cause or contribute to such differences
include, but are not limited to (1) the risk that the cost savings
and any revenue synergies from the merger may not be realized or
take longer than anticipated to be realized, (2) disruption from
the merger with customers, suppliers, employee or other business
partners relationships, (3) the occurrence of any event, change or
other circumstances that could give rise to the termination of the
merger Agreement, (4) the risk of successful integration of SGB’s
business into the Company, (5) the failure to obtain the necessary
approval by the shareholders of SGB, (6) the amount of the costs,
fees, expenses and charges related to the merger, (7) the ability
by the Company to obtain required governmental approvals of the
merger, (8) reputational risk and the reaction of each of the
companies’ customers, suppliers, employees or other business
partners to the merger, (9) the failure of the closing conditions
in the merger Agreement to be satisfied, or any unexpected delay in
closing of the merger, (10) the risk that the integration of SGB’s
operations into the operations of the Company will be materially
delayed or will be more costly or difficult than expected, (11) the
possibility that the merger may be more expensive to complete than
anticipated, including as a result of unexpected factors or events,
(12) the dilution caused by the Company’s issuance of additional
shares of its common stock in the merger transaction, and (13)
general competitive, economic, political and market conditions.
Additional factors which could affect the forward looking
statements can be found in the cautionary language included under
the headings “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2018, under the heading “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and “Risk
Factors” in SGB’s Annual Reports on Form 10-K for the year ended
December 31, 2018, and other documents subsequently filed by the
Company and SGB with the SEC. Consequently, no forward-looking
statement can be guaranteed. Neither the Company nor SGB undertakes
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For any forward-looking statements made in this news release, the
exhibits hereto or any related documents, the Company and SGB claim
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
Additional Information about the merger and Where to Find
It
This document does not constitute an offer to sell or the
solicitation of an offer to buy any securities, or a solicitation
of any vote or approval, nor shall there be any sale of securities
in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. In connection with the
proposed Merger, the Company will file with the SEC a registration
statement on Form S-4 that will include a proxy statement of SGB
and a prospectus of the Company, as well as other relevant
documents concerning the proposed transaction. WE URGE INVESTORS
AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM
S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE
REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS
TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY,
SGB AND THE PROPOSED MERGER. The proxy statement/prospectus will be
sent to the shareholders of SGB seeking the required shareholder
approval. Investors and security holders will be able to obtain
free copies of the registration statement on Form S-4 and the
related proxy statement/prospectus, when filed, as well as other
documents filed with the SEC by the Company and SGB through the web
site maintained by the SEC at www.sec.gov. Documents filed with the
SEC by the Company will also be available free of charge by
directing a written request to The First Bancshares, Inc., 6480
U.S. Highway 98 West, Hattiesburg, Mississippi 39402 Attn:
Corporate Secretary, Chandra Kidd. The Company’s telephone number
is (601) 268-8998. Documents filed with the SEC by SGB will also be
available free of charge by directing a written request to
Southwest Georgia Financial Corporation, 25 Second Avenue, S. W.,
Moultrie, Georgia 31768, Attn: EVP and Chief Administrative
Officer, Donna Lott. SGB’s telephone number is (229) 985-1120.
Participants in the Transaction
The Company, SGB and certain of their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of SGB in connection
with the proposed transaction. Certain information regarding the
interests of these participants and a description of their direct
and indirect interests, by security holdings or otherwise, will be
included in the proxy statement/prospectus regarding the proposed
transaction when it becomes available. Additional information about
the Company and its directors and officers may be found in the
definitive proxy statement of the Company relating to its 2019
Annual Meeting of Stockholders filed with the SEC on April 3, 2019.
Additional information about SGB and its directors and officers may
be found in the definitive proxy statement of SGB relating to its
2019 Annual Meeting of Stockholders filed with the SEC on April 18,
2019. The definitive proxy statement can be obtained free of charge
from the sources described above.
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,
2019
2018
2017
ASSETS
Cash and due from banks
$
12,123
$
14,051
$
11,143
Interest-bearing deposits in banks
25,507
21,448
22,995
Certificates of deposit in other banks
2,730
2,732
1,985
Investment securities available for
sale
67,826
58,314
54,364
Investment securities held to maturity
25,487
36,827
44,591
Federal Home Loan Bank stock, at cost
1,715
1,820
2,438
Loans, less unearned income and
discount
398,065
376,750
330,173
Allowance for loan losses
(3,604)
(3,429)
(3,044)
Net loans
394,461
373,321
327,129
Premises and equipment
13,847
14,574
12,250
Bank properties held for sale
0
0
212
Foreclosed assets, net
274
128
759
Intangible assets
0
4
20
Bank owned life insurance
6,913
6,779
6,553
Other assets
4,553
4,835
4,633
Total assets
$
555,436
$
534,833
$
489,072
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Interest bearing business checking
$
27,897
$
28,071
$
0
NOW accounts
24,238
35,816
25,871
Money market
181,199
158,730
129,041
Savings
33,555
31,849
30,794
Certificates of deposit $250,000 and
over
25,083
16,265
22,662
Other time accounts
67,580
81,214
60,969
Total interest-bearing deposits
359,552
351,945
269,337
Noninterest-bearing deposits
113,882
103,695
127,669
Total deposits
473,434
455,640
397,006
Other borrowings
5,814
10,457
17,971
Long-term debt
22,679
21,171
29,057
Accounts payable and accrued
liabilities
4,093
3,945
3,895
Total liabilities
506,020
491,213
447,929
Shareholders' equity:
Common stock - par value $1; 5,000,000
shares
authorized; 2,548,510 shares issued
(*)
2,549
2,546
4,294
Additional paid-in capital
18,479
18,419
31,701
Retained earnings
28,921
24,842
33,021
Accumulated other comprehensive income
(533)
(2,187)
(1,630)
Total
49,416
43,620
67,386
Treasury stock - at cost (**)
(0)
(0)
(26,243)
Total shareholders' equity
49,416
43,619
41,143
Total liabilities and shareholders'
equity
$
555,436
$
534,833
$
489,072
* Common stock - shares outstanding
2,548,510
2,545,776
2,541,505
** Treasury stock - shares
0
0
1,752,330
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,
2019*
2018*
2019*
2018
Interest income:
Interest and fees on loans
$ 5,834
$ 5,122
$ 21,836
$ 18,762
Interest and dividend on securities
available for sale
421
368
1,639
1,427
Interest on securities held to
maturity
178
236
888
1,027
Dividends on Federal Home Loan Bank
stock
26
33
105
145
Interest on deposits in banks
94
128
497
485
Interest on certificates of deposit in
other banks
18
13
71
48
Total interest income
6,571
5,900
25,036
21,894
Interest expense:
Interest on deposits
849
900
3,849
2,383
Interest on federal funds purchased
0
0
0
1
Interest on other borrowings
24
57
124
396
Interest on long-term debt
139
159
481
542
Total interest expense
1,012
1,116
4,454
3,322
Net interest income
5,559
4,784
20,582
18,572
Provision for loan losses
111
226
857
830
Net interest income after provision for
losses on loans
5,448
4,558
19,725
17,742
Noninterest income:
Service charges on deposit accounts
227
279
929
1,015
Income from trust services
54
56
221
235
Income from retail brokerage services
83
125
360
399
Income from insurance services
436
409
1,741
1,604
Income from mortgage banking services
0
1
0
2
Net gain (loss) on the sale or disposition
of assets
44
(72)
288
(80)
Net gain (loss) on the sale of
securities
0
(165)
174
(165)
Net gain on extinguishment of debt
0
318
143
318
Other income
237
224
961
878
Total noninterest income
1,081
1,175
4,817
4,206
Noninterest expense:
Salary and employee benefits
2,724
2,564
10,248
9,724
Occupancy expense
285
275
1,259
1,195
Equipment expense
298
349
1,220
933
Data processing expense
429
357
1,649
1,445
Amortization of intangible assets
0
4
4
16
Other operating expense
1,184
808
3,726
3,320
Total noninterest expense
4,920
4,357
18,106
16,633
Income before income tax expense
1,609
1,376
6,436
5,315
Provision for income taxes
267
253
1,136
668
Net income
$ 1,342
$ 1,123
$ 5,300
$ 4,647
Net income per share, basic
$ 0.53
$ 0.44
$ 2.08
$ 1.83
Net income per share, diluted
$ 0.53
$ 0.44
$ 2.08
$ 1.83
Dividends paid per share
$ 0.12
$ 0.12
$ 0.48
$ 0.47
Basic weighted average shares
outstanding
2,545,362
2,545,776
2,545,672
2,545,565
Diluted weighted average shares
outstanding
2,545,362
2,545,776
2,545,672
2,545,565
SOUTHWEST GEORGIA FINANCIAL
CORPORATION
Financial Highlights
(Dollars in thousands except
per share data)
At December 31
2019
2018
Assets
$555,436
$534,833
Loans, less unearned income &
discount
$398,065
$376,750
Deposits
$473,434
$455,640
Shareholders' equity
$ 49,416
$ 43,619
Three Months Ended December
31,
Twelve Months Ended December
31,
2019
2018
2019
2018
Performance Data & Ratios
Net income
$ 1,341
$ 1,123
$ 5,300
$ 4,647
Earnings per share, basic
$ 0.53
$ 0.44
$ 2.08
$ 1.83
Earnings per share, diluted
$ 0.53
$ 0.44
$ 2.08
$ 1.83
Dividends paid per share
$ 0.12
$ 0.12
$ 0.48
$ 0.47
Return on assets
0.96%
0.85%
.97%
0.91%
Return on equity
10.89%
10.48%
11.28%
11.04%
Net interest margin (tax equivalent)
4.30%
3.94%
4.09%
3.99%
Dividend payout ratio
22.78%
27.18%
23.06%
25.74%
Efficiency ratio
73.43%
72.12%
70.49%
71.86%
Asset Quality Data & Ratios
Total nonperforming loans
$ 237
$ 1,205
$ 237
$ 1,205
Total nonperforming assets
$ 511
$ 1,333
$ 511
$ 1,333
Net loan charge offs (recoveries)
$ 12
$ (126)
$ 681
$ 444
Reserve for loan losses to total loans
0.91%
0.91%
0.91%
0.91%
Nonperforming loans/total loans
0.06%
0.32%
0.06%
0.32%
Nonperforming assets/total assets
0.09%
0.25%
0.09%
0.25%
Net charge offs (recoveries) / average
loans
0.01%
(0.13%)
0.18%
0.13%
Capital Ratios
Average common equity to average total
assets
8.84%
8.09%
8.56%
8.24%
Common equity Tier 1 capital ratio
12.14%
11.97%
12.14%
11.97%
Tier 1 capital ratio
12.14%
11.97%
12.14%
11.97%
Tier 1 leverage ratio
8.59%
8.62%
8.59%
8.62%
Total risk based capital ratio
13.06%
12.87%
13.06%
12.87%
Book value per share
$ 19.39
$ 17.13
$ 19.39
$ 17.13
Tangible book value per share
$ 19.39
$ 17.13
$ 19.39
$ 17.13
Quarterly
4th Qtr
3rd Qtr
2nd Qtr
1st Qtr
4th Qtr
Averages
2019
2019
2019
2019
2018
Assets
$ 557,026
$ 550,737
$ 545,292
$ 542,361
$ 530,054
Loans, less unearned income &
discount
$ 398,319
$ 389,531
$ 383,167
$ 377,995
$ 373,324
Deposits
$ 474,458
$ 467,055
$ 476,529
$ 469,726
$ 444,256
Equity
$ 49,233
$ 48,067
$ 46,067
$ 44,431
$ 42,887
Return on assets
0.96%
1.04%
0.95%
0.91%
0.85%
Return on equity
10.89%
11.92%
11.27%
11.06%
10.48%
Net income
$ 1,342
$ 1,430
$ 1,298
$ 1,229
$ 1,123
Net income per share, basic
$ 0.53
$ 0.56
$ 0.51
$ 0.48
$ 0.44
Net income per share, diluted
$ 0.53
$ 0.56
$ 0.51
$ 0.48
$ 0.44
Dividends paid per share
$ 0.12
$ 0.12
$ 0.12
$ 0.12
$ 0.12
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200128005123/en/
Company: T. Garrett Westbrook, CPA Vice President and
Controller Phone: (229) 873-3832 investorinfo@sgfc.com
Investor Relations: Deborah K. Pawlowski Kei Advisors LLC
Phone: (716) 843-3908 dpawlowski@keiadvisors.com
Southwest Georgia Financ... (AMEX:SGB)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Southwest Georgia Financ... (AMEX:SGB)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024