ATLANTA, Oct. 24, 2019 (GLOBE NEWSWIRE) -- Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK) announced today that the Company reported preliminary earnings of $1.41 million or $0.18/share for the third quarter ended September 30, 2019. Excluding securities gains, core earnings were $1.40 million, or $0.17/share. This compares favorably with 3Q18 core EPS of $0.14/share, or $1.2 million.
“The third quarter saw the continuation of the momentum that SouthCrest experienced in the first half of 2019. Our team continued serving our clients, while keeping focused on the bottom line results that our shareholders expect. As a result, and to appropriately manage the capital entrusted to us, we are announcing a special dividend of $0.50 per share to be paid on December 10, 2019 to all shareholders of record November 26, 2019. This dividend is in addition to the standard quarterly dividend previously announced.”
“Finally, I’m pleased to report that the Company completed its previously announced $5 million share buyback program during the third quarter and is announcing a new share buyback program that positions us to repurchase up to $10 million of our common stock from today through 2021.”
Total assets were down to $523.7MM vs. $528.5MM in 2Q19 due to the share buyback, and vs. $544.7.3MM in 3Q18. Loan growth was robust for the quarter with total loans outstanding finishing at $331.2 million vs. $316.0 million at the end of 2Q19 and $319.3 million in the year ago quarter. The cost of funds was down 7bps due to a restructuring of FHLB borrowings, while the cost of deposits were up just 3bps from 2Q19.
The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank decreased to 9.65% as a result of the reduction in capital at the bank level to fund the share buyback. On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $7.24 per share, up from $7.21 at the end of the second quarter. This metric will continue to be influenced by OCI changes resulting from the swings in interest rates. Currently, the impact to TBV by OCI is $0.12/share vs. $0.07/share as of 2Q19. The current fully converted share count at the end of the quarter was 7.097 million shares, comprised of 5.849 million common shares and 2.058 million preferred shares.
Asset quality ratios improved slightly during the quarter, with NPAs to assets decreasing to 1.00% vs. 1.09% in 2Q19 (excluding former bank branches in OREO as of 2Q19). As of September 30, 2019 the Company’s OREO balances were $0.
ABOUT SOUTHCREST
SouthCrest Financial Group, Inc. is a bank holding company with over half a billion dollars in assets, headquartered in Atlanta, GA. The company operates a 9 branch network throughout Georgia through its subsidiary bank, SouthCrest Bank, N.A. The bank provides a full suite of retail, private, entrepreneurial, high-net-worth and commercial banking services, and online banking services.
FORWARD-LOOKING STATEMENTS
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. You should not rely upon forward-looking statements, as they are inherently unlikely to occur, and we do not assume any liability to update or correct any forward-looking statements that we make.
Andy Borrmann
Chief Financial Officer
678.734.3505
| Statement of Operations ($000s, Unaudited) | |||||||||||||||||||||||||||
| Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | |||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Construction and Development | $560 | $633 | $609 | $603 | $636 | ||||||||||||||||||||||
| Commercial Real Estate | 1,776 | 1,819 | 1,800 | 1,834 | 2,037 | ||||||||||||||||||||||
| Commercial Loans | 454 | 401 | 458 | 429 | 446 | ||||||||||||||||||||||
| Multi Family | 27 | 20 | 19 | 32 | 27 | ||||||||||||||||||||||
| Residential Mortgage | 1,119 | 1,167 | 1,176 | 1,101 | 991 | ||||||||||||||||||||||
| Consumer Loans | 51 | 48 | 41 | 41 | 41 | ||||||||||||||||||||||
| County/Municipal Loans | 23 | 25 | 25 | 22 | 22 | ||||||||||||||||||||||
| Loss Share Loans | 70 | 64 | 62 | 61 | 61 | ||||||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||
| Federal Funds/Overnight Funds | $41 | $65 | $82 | $88 | $107 | ||||||||||||||||||||||
| Bank Owned CDs | 7 | 7 | 7 | 6 | 6 | ||||||||||||||||||||||
| Investment Securities | 1,181 | 1,187 | 1,168 | 1,111 | 950 | ||||||||||||||||||||||
| Total Interest Income | $5,311 | $5,436 | $5,447 | $5,329 | $5,324 | ||||||||||||||||||||||
| Total Interest Expense | $586 | $728 | $746 | $759 | $658 | ||||||||||||||||||||||
| Net Interest Income | $4,725 | $4,708 | $4,701 | $4,570 | $4,666 | ||||||||||||||||||||||
| Provision for Loan Losses | 46 | 0 | 0 | 0 | 39 | ||||||||||||||||||||||
| Net Interest Income after Loan Losses | $4,679 | $4,708 | $4,701 | $4,570 | $4,627 | ||||||||||||||||||||||
| Other Income | |||||||||||||||||||||||||||
| Service Charges on Deposits | $169 | $164 | $156 | $153 | $148 | ||||||||||||||||||||||
| NSF/Overdraft Fees | 350 | 396 | 309 | 310 | 356 | ||||||||||||||||||||||
| Other Service Charges | 62 | 65 | 65 | 70 | 78 | ||||||||||||||||||||||
| ATM/Billpay/DR Card Income | 273 | 260 | 255 | 284 | 278 | ||||||||||||||||||||||
| Other Income | 316 | 172 | 204 | 131 | 308 | ||||||||||||||||||||||
| Total Other Income | $1,170 | $1,057 | $989 | $947 | $1,169 | ||||||||||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||||||
| Salaries, Other Comp (+ FAS123R) | $1,889 | $1,822 | $1,849 | $1,842 | $1,856 | ||||||||||||||||||||||
| Employee Benefits | 435 | 458 | 419 | 370 | 391 | ||||||||||||||||||||||
| Occupancy & FF&E Expense | 621 | 588 | 621 | 570 | 564 | ||||||||||||||||||||||
| Professional Fees | 305 | 136 | 170 | 274 | 152 | ||||||||||||||||||||||
| Data Processing | 485 | 476 | 481 | 488 | 497 | ||||||||||||||||||||||
| Other Expense | 693 | 724 | 649 | 613 | 505 | ||||||||||||||||||||||
| Total Noninterest Expenses | $4,428 | $4,204 | $4,189 | $4,157 | $3,963 | ||||||||||||||||||||||
| Pre-Tax Income (Loss) | $1,421 | $1,561 | $1,501 | $1,360 | $1,832 | ||||||||||||||||||||||
| Income Taxes | 319 | 289 | 321 | 315 | 417 | ||||||||||||||||||||||
| Net Income | $1,102 | $1,272 | $1,180 | $1,045 | $1,414 | ||||||||||||||||||||||
| Balance Sheet ($000s, Unaudited) | |||||||||||||||||||||||||||
| Assets | Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | ||||||||||||||||||||||
| Current Assets | |||||||||||||||||||||||||||
| Cash & Due from Bank | $14,189 | $20,168 | $20,243 | $30,930 | $13,758 | ||||||||||||||||||||||
| Federal Funds/Overnight Funds | 0 | 6,070 | 1,718 | 0 | 0 | ||||||||||||||||||||||
| Bank Owned CDs | 1,322 | 1,322 | 1,322 | 1,322 | 1,069 | ||||||||||||||||||||||
| Investment Securities | 166,632 | 162,936 | 161,561 | 141,013 | 139,907 | ||||||||||||||||||||||
| Total Current Assets | $182,143 | $190,496 | $184,844 | $173,265 | $154,733 | ||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||
| Construction and Development | $43,113 | $40,420 | $41,777 | $40,040 | $43,661 | ||||||||||||||||||||||
| Commercial Real Estate | 148,219 | 144,329 | 144,178 | 153,527 | 155,397 | ||||||||||||||||||||||
| Commercial Loans | 29,997 | 29,452 | 28,177 | 28,036 | 42,921 | ||||||||||||||||||||||
| Multi Family | 1,518 | 1,466 | 1,438 | 1,970 | 1,939 | ||||||||||||||||||||||
| Residential Mortgage | 88,357 | 94,199 | 92,405 | 85,064 | 80,391 | ||||||||||||||||||||||
| Consumer Loans | 2,143 | 2,579 | 1,086 | 1,384 | 1,022 | ||||||||||||||||||||||
| County/Municipal Loans | 2,459 | 2,438 | 2,301 | 2,037 | 2,037 | ||||||||||||||||||||||
| Loss Share Loans | 3,466 | 4,030 | 3,975 | 3,933 | 3,859 | ||||||||||||||||||||||
| Total Loans | $319,272 | $318,914 | $315,337 | $315,991 | $331,227 | ||||||||||||||||||||||
| Allowance for Loss | (3,060) | (3,042) | (2,968) | (3,022) | (3,073) | ||||||||||||||||||||||
| Net Loans | $316,212 | $315,872 | $312,369 | $312,698 | $328,154 | ||||||||||||||||||||||
| OREO | 720 | 821 | 670 | 575 | 0 | ||||||||||||||||||||||
| FDIC Indemnification | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
| BOLI | 21,773 | 21,909 | 22,039 | 22,186 | 22,323 | ||||||||||||||||||||||
| Fixed Assets, net | 9,733 | 9,511 | 9,268 | 9,180 | 8,982 | ||||||||||||||||||||||
| Intangible Assets | 126 | 116 | 107 | 100 | 96 | ||||||||||||||||||||||
| Other Assets | 13,365 | 11,759 | 13,336 | 10,083 | 9,424 | ||||||||||||||||||||||
| Total Assets | $544,072 | $550,484 | $542,633 | $528,503 | $523,711 | ||||||||||||||||||||||
Liabilities & Stockholders' Equity | |||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||
| DDAs | $88,768 | $06,821 | $99,896 | $98,229 | $94,680 | ||||||||||||||||||||||
| Interest Bearing Demand | 64,684 | 62,829 | 59,270 | 59,606 | 63,386 | ||||||||||||||||||||||
| Celebration Checking | 101,474 | 99,694 | 102,617 | 100,950 | 97,277 | ||||||||||||||||||||||
| Money Market Accts | 47,286 | 55,836 | 49,584 | 33,080 | 32,382 | ||||||||||||||||||||||
| Savings | 44,139 | 43,574 | 44,152 | 44,407 | 44,383 | ||||||||||||||||||||||
| CDs Less Than $100k | 57,349 | 56,864 | 56,664 | 56,256 | 56,543 | ||||||||||||||||||||||
| CDs Greater than $100k | 34,795 | 38,007 | 39,867 | 38,854 | 41,846 | ||||||||||||||||||||||
| Total Deposits | $438,495 | $463,625 | $452,054 | $431,382 | $430,497 | ||||||||||||||||||||||
| Other Liabilities | 2,115 | 1,493 | 2,492 | 2,583 | 2,516 | ||||||
| Net Borrowings (Wholesale Funding) | 50,641 | 30,000 | 30,000 | 33,795 | 33,429 | ||||||
| Total Liabilities | $491,251 | $495,118 | $484,546 | $467,760 | $466,443 | ||||||
| Total Equity | 52,821 | 55,366 | 58,087 | 60,743 | 57,268 | ||||||
| Total Liabilities & Stockholders' Equity | $544,072 | $550,484 | $542,633 | $528,503 | $523,711 | ||||||
| Ratios | |||||
| Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | |
| ROAA | 0.81% | 0.93% | 0.86% | 0.78% | 1.09% |
| ROAE | 8.34% | 9.41% | 8.32% | 7.04% | 10.10% |
| NPAs/Assets (Core) | 1.11% | 0.92% | 0.92% | 1.09% | 1.00% |
| Est. T1 Leverage (Bank) | 8.94% | 9.16% | 9.46% | 9.95% | 9.65% |
| Total Common Shares | 6,198,632 | 6,198,632 | 6,198,632 | 6,360,273 | 5,849,101 |
| Total Preferred Shares | 2,223,360 | 2,223,360 | 2,223,360 | 2,061,719 | 2,058,121 |
| Total Common Equiv. Shares | 8,421,992 | 8,421,992 | 8,421,992 | 8,421,992 | 7,907,222 |
| NIM (Bank) | 3.78% | 3.79% | 3.86% | 3.75% | 3.91% |
| Cost of Deposits | 0.33% | 0.44% | 0.49% | 0.51% | 0.54% |
| Loan/Deposit | 72.5% | 68.8% | 69.5% | 73.4% | 76.9% |
| Employees | 110 | 106 | 105 | 106 | 103 |
| Loans in Atlanta MSA | 65.8% | 65.3% | 66.0% | 67.4% | 76.8% |