Southwest Georgia Bank Net Income Climbs in Q2 on Valdosta Growth
Press release from the issuing company
Wednesday, July 24th, 2013
Southwest Georgia Financial Corporation, a full-service community bank holding company, today reported its results of operations for the second quarter ended June 30, 2013.
Second Quarter and Six-Month Income Highlights
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Net income was $574 thousand in the 2013 second quarter, or $0.23 per diluted share, compared with $305 thousand, or $0.12 per diluted share in the second quarter of 2012. The increase reflects higher net interest income and reduced pension costs.
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For the six months ended June 30, 2013, net income was $1.1 million, or $0.45 per diluted share, a 30.1% increase from $876 thousand, or $0.34 per diluted share, for the same period in the prior year.
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Net interest income grew $300 thousand to $3.2 million compared with the second quarter last year due primarily to increased interest and fee income on loans and a decrease in interest expense on deposits.
- Noninterest income decreased $472 thousand to $1.1 million for the second quarter of 2013, as a result of lower gains on the sale of securities and decreased income from the Corporation’s commercial mortgage banking subsidiary.
Balance Sheet Trends and Asset Quality
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Total assets at June 30, 2013 were $351.4 million, an increase of 11.4%, or $35.9 million, from June 30, 2012.
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Total loans increased $25.0 million, or 12.9%, to $219.4 million, compared with the same period last year. The growth in loans was driven by loan originations in the Valdosta and Moultrie markets.
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Total deposits grew $37.1 million, or 14.3%, to $296.4 million at June 30, 2013, from the second quarter of 2012. Noninterest-bearing deposits, which funded the growth in loans, increased more than 37% year-over- year to $74.4 million.
- Non-performing asset ratio was 0.57% at June 30, 2013, a 112 basis point improvement when compared with the second quarter 2012.
Capital Management
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The Company has a total risk based capital ratio of 14.73%, measurably above the federal “well capitalized” standard.
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Return on equity increased to 7.47% compared with 4.16% in the second quarter of 2012.
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Tangible book value per share at June 30, 2013, was $11.77, up from $11.16 at the end of the second quarter of 2012.
DeWitt Drew, President and CEO commented, “We are posting strong growth in assets and net income, despite a significant reduction in mortgage banking revenue. Our strategic decision to enter the Valdosta market is paying off as we continue to grow our low cost core deposit base to accompany the strong loan growth the Valdosta team has generated over the past three years.”
Dividends
In June 2013, the Corporation paid a second quarter cash dividend of $0.04 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 85 consecutive years.
