SouthCrest Financial Group Reports Preliminary 2Q16 Earnings


WOODSTOCK, Ga., July 28, 2016 (GLOBE NEWSWIRE) -- Andrew Borrmann, Chief Financial Officer of SouthCrest Financial Group, Inc. (PinkSheets:SCSG) announced today that the company reported preliminary net income of $11.4 million or $1.36/share for the second quarter ended June 30, 2016.  “As we expected, we were able to reverse $10.6 million of the valuation allowance against our deferred tax asset during the second quarter.  This has long been the focus of the Company and we are proud to clear another significant hurdle in the ongoing improvement of SouthCrest.”  Borrmann continued “The efforts of all our employees to achieve these goals cannot be over emphasized.  We continue to improve our operating expenses and now expect the expense run rate to fall under $17.5 million/year during the next several months.”

Core pre-tax earnings for the quarter were $1.4 million.  Unusual items during the quarter included $403,000 of securities losses, and $164,000 of one time payments for contract buyouts and incentives.  This equates to an approximate 1.0% pre-tax ROA for the quarter.  On a core basis, expenses for the quarter were $4.5 million, down from approximately $6.0 million in 2Q15.

Loans were effectively flat and deposits fell approximately 3% during the second quarter.  The decline in deposits is due to an update of the service fee schedule that is improving non-interest income by well over $500,000 year.  These have been some deposit accounts close due the fee reset, but the Company took this possibility into account when analyzing the potential impact of the change.

The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank was 9.00%.  On a fully converted basis (including the conversion of all preferred equity) TBV/share ended the quarter at $7.25 per share.  The current fully converted share count at the end of the quarter is 8.380 million shares.  In addition, the company still retains a small deferred tax asset valuation allowance related to state taxes that totals approximately $0.06/fully converted share.

Asset quality continued its multi-quarter improvement trend with 2Q16 NPAs/total assets declining to 1.08% of assets.  Noncurrent loans/total loans is now just 1.22%, down from 1.97% in the year ago period.  Other real estate owned increased slightly from 1Q16 and now stands at $1.77 million.   

SouthCrest Financial Group, Inc. is a $550 million asset bank holding company headquartered in Woodstock, Georgia.  The company operates a 12 branch network throughout Georgia and Alabama through its subsidiary bank, SouthCrest Bank, N.A.    The bank provides a full suite of retail and commercial banking services, SBA lending, and online banking services. 

This presentation may contain certain “forward-looking statements” that are subject to risks, uncertainties, and other factors that could cause actual results and shareholder values to differ materially from those projected.  Factors that could cause or contribute to such differences include economic conditions, government regulation and legislation, changes in interest rates, credit quality, competition, and other risk factors. 

       
 Statement of Operations ($000s, Unaudited)     
      
 2015      2016
  
 Q2
 Q3
 Q4
 Q1
 Q2
  
 Interest Income       
 Loans       
 Construction and Development $231 $261 $205 $206 $143  
 Commercial Real Estate  1,374  1,483  1,512  1,465  1,479  
 Commercial Loans  261  301  275  280  280  
 Multi Family  26  29  27  26  18  
 Residential Mortgage  1,464  1,521  1,454  1,415  1,337  
 Consumer Loans  212  197  178  166  156  
 County/Municipal Loans  43  59  65  29  28  
 Loss Share Loans  324  214  140  116  132  
 Investment Securities       
 Federal Funds/Overnight Funds $16 $11 $22 $38 $27  
 Bank Owned CDs  7  7  8  7  8  
 Investment Securities  960  904  916  1030  1083  
 Total Interest Income $4,918  $4,987  $4,803  $4,779  $4,685   
       
 Total Interest Expense $309 $308 $302 $299 $267  
 Net Interest Income $4,611 $4,679 $4,501 $4,480 $4,417  
 Provision for Loan Losses  200  0  150  50  0  
 Net Interest Income after Loan Losses $4,409 $4,679 $4,351 $4,430 $4,417  
       
Other Income      
 Service Charges on Deposits $99 $113 $110 $105 $215  
 NSF/Overdraft Fees  513  543  525  475  515  
 Other Service Charges  95  78  93  74  79  
 ATM/Billpay/DR Card Income  392  352  370  293  336  
 Other Income  1,017  973  475  829  (47) 
 Total Other Income $2,116 $2,059 $1,535 $1,776 $1,098  
 Non-Interest Expense       
 Salaries, Other Comp (+ FAS123R) $2,492 $2,419 $2,257 $2,006 $1,772  
 Employee Benefits  440  424  645  591  360  
 Occupancy & FF&E Expense  1,004  1,020  919  933  848  
 Professional Fees  249  206  263  174  209  
 Data Processing  221  244  321  305  521  
 OREO and Credit related Exp.  67  156  146  41  36  
 Other Expense  1,575  1,608  1,409  1,243  927  
 Total Noninterest Expenses $6,048 $6,077 $5,927 $5,293 $4,673  
 Pre-Tax Income (Loss) $477 $661 $(36)$913 $842  
 Income Taxes  -  -  -  -  (10,592) 
 Net Income$477 $661 $(36)$913 $11,434  
 Preferred Dividends$125 $125 $125 $125 $125  

 

Balance Sheet ($000s, Unaudited)           
  2015       2016  
Assets Q2
  Q3
  Q4
  Q1
  Q2
  
Current Assets           
Cash & Due from Bank $22,335  $20,355  $44,157  $30,427  $34,838  
Federal Funds/Overnight Funds  10,736   14,171   2,186   3,306   569  
Bank Owned CDs  1,814   1,815   1,815   1,815   1,716  
Investment Securities  179,276   145,247   174,998   191,905   161,177  
Mortgage Loans Held for Sale  1,869   3,011   899   0   0  
Total Current Assets $216,030   $184,599   $224,055   $227,452   $198,300   
Loans           
Construction and Development $16,495  $16,165  $16,229  $13,692  $11,285  
Commercial Real Estate  106,549   119,888   118,780   116,175   119,419  
Commercial Loans  18,646   21,236   21,246   21,296   21,863  
Multi Family  2,187   2,152   2,117   1,450   1,419  
Residential Mortgage  116,961   116,969   114,803   110,094   107,270  
Consumer Loans  11,787   10,814   9,657   7,096   7,977  
County/Municipal Loans  7,631   12,293   3,911   3,537   4,501  
Loss Share Loans  10,815   10,345   9,543   9,360   7,689  
Total Loans $291,071   $309,862   $296,286   $282,700   $281,425   
Allowance for Loss  (3,263)  (2,881)  (3,052)  (3,021)  (2,817) 
Net Loans $287,808   $306,981   $293,234   $279,679   $278,608   
OREO  3,552   3,331   2,421   1,500   1,769  
FDIC Indemnification  503   498   474   419   433  
BOLI  19,995   20,130   20,265   20,391   20,548  
Fixed Assets, net $18,720  $18,553  $18,214  $17,671  $17,362  
Intangible Assets  535   648   618   583   555  
Other Assets  6,552   6,339   6,983   6,651   33,982  
Total Assets $553,695   $541,079   $566,264   $554,346   $551,557   
                      
Liabilities & Stockholders' Equity                     
Liabilities                     
Deposits                     
DDAs $120,659  $114,345  $130,877  $119,343  $112,974  
Interest Bearing Demand  53,979   50,965   62,784   61,172   55,248  
Celebration Checking  82,246   90,893   97,316   108,076   110,894  
Money Market Accts  42,004   41,731   38,643   35,289   33,858  
Savings  57,887   56,517   55,550   55,831   53,397  
CDs Less Than $100k  88,158   84,510   81,930   79,221   76,301  
CDs Greater than $100k  49,697   46,603   44,080   39,576   40,585  
Total Deposits $494,630   $485,564   $511,180   $498,508   $483,257   
            
            
Other Liabilities  6,684   2,414   2,690   1,988   1,919  
Net Borrowings (Wholesale Funding)  -   -   -   -   -  
Total Liabilities $501,314   $487,978   $513,870   $500,496   $485,176   
Total Equity  52,381   53,101   52,394   53,850   66,381  
Total Liabilities & Stockholders' Equity $553,695   $541,079   $566,264   $554,346   $551,557   

 

 Ratios     
 2Q 20153Q 20154Q 20151Q 20162Q 2016
ROAA  0.34% 0.48% -0.01% 0.66% 8.29%
ROAE  3.65% 5.01% -0.10% 6.80% 76.1%
NPAs/Assets (Core)  1.71% 1.68% 1.40% 1.18% 1.08%
Tier 1 Leverage  8.81% 9.12% 8.87% 8.94% 9.42%
Total Common Equiv. Shares 8,380,337  8,380,337  8,380,337  8,380,337  8,380,337 
NIM 3.81% 3.76% 3.57% 3.47% 3.59%
Cost of Funds  0.25% 0.25% 0.24% 0.24% 0.22%
Loan/Deposit  58.8% 63.8% 57.9% 56.6% 58.2%
Employees 170  163  153  129  127 

 

 


            

Mot-clé


Coordonnées