Southwest Georgia Financial Corporation, a full-service community bank holding company, reported its results of operations for the second quarter ended June 30, 2016.

Second Quarter and Six-Month Income Highlights

- Second quarter net income increased 17% to $1.0 million, or $0.40 per diluted share, from $865 thousand, or $0.34 per diluted share. Net interest income improved 9% to $3.9 million when compared with last year’s second quarter due primarily to higher interest income and fees on loans.

- For the six months ended June 30, 2016, net income was $2.1 million, or $0.81 per diluted share, up 23% from $1.7 million, or $0.66 per diluted share, for the same period in 2015. The increase was driven by continued loan growth and pricing discipline on deposits.

Balance Sheet Trends and Asset Quality

- Total assets at June 30, 2016, were $422.5 million, up 8% from $391.0 million at June 30, 2015. The increase
in assets and change in asset mix reflects loan growth that was funded by increased deposits, reallocated funds
from the investment portfolio, and an increase in Federal Home Loan Bank borrowings.

- Total loans increased $51.3 million, or 22%, to $288.0 million from the second quarter 2015 and were up over 14% from year-end 2015.

- Total deposits were up $22.2 million, or 7%, to $344.0 million at June 30, 2016, compared with the prior year. While deposit growth lagged loan growth, noninterest-bearing deposits increased over 21% to $109.5 million year-over-year.

- Nonperforming loans were $665 thousand at the end of the second quarter, down $393 thousand from a year ago.

Capital Management

- Tangible book value per share at June 30, 2016, was $15.11, up from $13.92 at June 30, 2015.

“Investments in expanding our footprint and deepening relationships in the communities we serve are paying off.
Loans were up over $50 million in the past year and net income increased measurably for the second quarter and first half of 2016,” commented DeWitt Drew, President and CEO. “The results from our expansion in the Valdosta market are very favorable with a significant portion of the loan growth coming from this market. We are also seeing favorable results from our recent entry into the Tifton market. Looking to the rest of 2016, we are in an excellent position to continue to build on our strong franchise and win greater customer share in our markets.”

Dividends

In June 2016, the Corporation paid a quarterly cash dividend of $0.10 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 88 consecutive years.