ATLANTA, April 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 $1.18MM or $0.14/share for the first quarter ended March 31, 2019. There were no meaningful unusual items during the quarter. These results compare favorably to 1Q18 core earnings of $0.9MM or $0.11/share.
“We are extremely pleased to show over 30% earnings growth from the first quarter of 2018. We have worked diligently to position SouthCrest as an active competitor in the Atlanta and north Georgia markets, and the significant merger disruption that has and will continue to occur in Atlanta improves our opportunity to find talent, grow our balance sheet, and most importantly, grow shareholder value. Like many of our peers, loan growth was sluggish during the quarter, but we are confident that the disruption that we see daily will provide ample chances to improve that trend. We have also continued to successfully reduce operating expenses, reporting the lowest non-interest expense levels in over 10 years. Finally, deposit growth for the quarter was 1% from 1Q18, but was negatively impacted by a loss of a $10MM municipal deposit account during the quarter,” Schmitt said.
Total assets were down slightly at $542.6MM vs. $550.5MM in 4Q18, and vs. $559.7MM in 1Q18. Seasonality accounts for some of the decline in total assets during the quarter vs. 4Q, but excluding a decline of $30MM in borrowings from 1Q18 to 1Q19, asset growth would have totaled 2%.
Excluding the $10MM lost municipal deposit, deposits would have been effectively flat with 4Q18. The deposit mix shift during the quarter was close to neutral to the cost of funds.
The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank increased to 9.46%. On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $6.90 per share. This metric will continue to be influenced by OCI changes resulting from the swings in interest rates. Currently, the negative impact to TBV by OCI is -$0.16/share vs. -$0.38/share as of 3Q18. Excluding the OCI impact, TBV/share grew $0.11 during the quarter. The current fully converted share count at the end of the quarter was 8.42 million shares. In addition, the Company still retains a small deferred tax asset valuation allowance related to state taxes that totals approximately $0.07/fully converted share.
Asset quality ratios were flat during the quarter, with NPAs to assets remaining at 0.92% vs. 0.92% in 4Q18, excluding the $520,000 of a former bank building in OREO. Including this building, 1Q19 NPAs/total assets were 1.02% of assets vs. 1.02% in 4Q18. Excluding the impact of the bank building in OREO, OREO balances were just $153,000.
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.
Andy Borrmann
Chief Financial Officer
678.734.3505
| Statement of Operations ($000s, Unaudited) | ||||||||||||
| Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | ||||||||
| Interest Income | ||||||||||||
| Loans | ||||||||||||
| Construction and Development | $535 | $479 | $560 | $633 | $609 | |||||||
| Commercial Real Estate | 1,667 | 1,696 | 1,776 | 1,819 | 1,800 | |||||||
| Commercial Loans | 341 | 370 | 454 | 401 | 458 | |||||||
| Multi Family | 28 | 28 | 27 | 20 | 19 | |||||||
| Residential Mortgage | 1,087 | 1,116 | 1,119 | 1,167 | 1,176 | |||||||
| Consumer Loans | 57 | 56 | 51 | 48 | 41 | |||||||
| County/Municipal Loans | 23 | 23 | 23 | 25 | 25 | |||||||
| Loss Share Loans | 80 | 79 | 70 | 64 | 62 | |||||||
| Investment Securities | ||||||||||||
| Federal Funds/Overnight Funds | $98 | $48 | $41 | $65 | $82 | |||||||
| Bank Owned CDs | 6 | 6 | 7 | 7 | 7 | |||||||
| Investment Securities | 1,187 | 1,214 | 1,181 | 1,187 | 1,168 | |||||||
| Total Interest Income | $5,109 | $5,115 | $5,311 | $5,436 | $5,447 | |||||||
| Total Interest Expense | $460 | $506 | $586 | $728 | $746 | |||||||
| Net Interest Income | $4,649 | $4,609 | $4,725 | $4,708 | $4,701 | |||||||
| Provision for Loan Losses | 125 | 0 | 46 | 0 | 0 | |||||||
| Net Interest Income after Loan Losses | $4,524 | $4,609 | $4,679 | $4,708 | $4,701 | |||||||
| Other Income | ||||||||||||
| Service Charges on Deposits | $168 | $165 | $169 | $164 | $156 | |||||||
| NSF/Overdraft Fees | 350 | 334 | 350 | 396 | 309 | |||||||
| Other Service Charges | 64 | 63 | 62 | 65 | 65 | |||||||
| ATM/Billpay/DR Card Income | 262 | 280 | 273 | 260 | 255 | |||||||
| Other Income | 227 | 125 | 316 | 172 | 204 | |||||||
| Total Other Income | $1,071 | $967 | $1,170 | $1,057 | $989 | |||||||
| Non-Interest Expense | ||||||||||||
| Salaries, Other Comp (+ FAS123R) | $1,948 | $1,969 | $1,889 | $1,822 | $1,849 | |||||||
| Employee Benefits | 473 | 524 | 435 | 458 | 419 | |||||||
| Occupancy & FF&E Expense | 653 | 590 | 621 | 588 | 621 | |||||||
| Professional Fees | 161 | 156 | 305 | 136 | 170 | |||||||
| Data Processing | 480 | 489 | 485 | 476 | 481 | |||||||
| Other Expense | 883 | 832 | 693 | 724 | 649 | |||||||
| Total Noninterest Expenses | $4,598 | $4,560 | $4,428 | $4,204 | $4,189 | |||||||
| Pre-Tax Income (Loss) | $997 | $1,016 | $1,421 | $1,561 | $1,501 | |||||||
| Income Taxes | 197 | 210 | 319 | 289 | 321 | |||||||
| Net Income | $800 | $806 | $1,102 | $1,272 | $1,180 | |||||||
| Balance Sheet ($000s, Unaudited) | ||||||||||||
| Assets | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||
| Current Assets | ||||||||||||
| Cash & Due from Bank | $24,603 | $18,408 | $14,189 | $20,168 | $20,243 | |||||||
| Federal Funds/Overnight Funds | 0 | 5,446 | 0 | 6,070 | 1,718 | |||||||
| Bank Owned CDs | 1,319 | 1,319 | 1,322 | 1,322 | 1,322 | |||||||
| Investment Securities | 182,569 | 169,924 | 166,632 | 162,936 | 161,561 | |||||||
| Total Current Assets | $208,491 | $195,097 | $182,143 | $190,496 | $184,844 | |||||||
| Loans | ||||||||||||
| Construction and Development | $31,475 | $34,157 | $43,113 | $40,420 | $41,777 | |||||||
| Commercial Real Estate | 138,931 | 134,653 | 148,219 | 144,329 | 144,178 | |||||||
| Commercial Loans | 28,048 | 29,873 | 29,997 | 29,452 | 28,177 | |||||||
| Multi Family | 2,150 | 2,230 | 1,518 | 1,466 | 1,438 | |||||||
| Residential Mortgage | 92,973 | 92,346 | 88,357 | 94,199 | 92,405 | |||||||
| Consumer Loans | 5,738 | 3,361 | 2,143 | 2,579 | 1,086 | |||||||
| County/Municipal Loans | 2,511 | 2,480 | 2,459 | 2,438 | 2,301 | |||||||
| Loss Share Loans | 4,536 | 4,480 | 3,466 | 4,030 | 3,975 | |||||||
| Total Loans | $306,362 | $303,581 | $319,272 | $318,914 | $315,337 | |||||||
| Allowance for Loss | (3,028 | ) | (3,037 | ) | (3,060 | ) | (3,042 | ) | (2,968 | ) | ||
| Net Loans | $303,334 | $300,544 | $316,212 | $315,872 | $312,369 | |||||||
| OREO | 2,697 | 879 | 720 | 821 | 670 | |||||||
| FDIC Indemnification | 112 | 112 | 0 | 0 | 0 | |||||||
| BOLI | 21,490 | 21,640 | 21,773 | 21,909 | 22,039 | |||||||
| Fixed Assets, net | 10,166 | 9,970 | 9,733 | 9,511 | 9,268 | |||||||
| Intangible Assets | 197 | 152 | 126 | 116 | 107 | |||||||
| Other Assets | 13,228 | 12,880 | 13,365 | 11,759 | 13,336 | |||||||
| Total Assets | $559,715 | $541,274 | $544,072 | $550,484 | $542,633 | |||||||
| Liabilities & Stockholders' Equity | ||||||||||||
| Liabilities | ||||||||||||
| Deposits | ||||||||||||
| DDAs | $95,714 | $97,587 | $88,768 | $106,821 | $99,896 | |||||||
| Interest Bearing Demand | 76,198 | 81,262 | 64,684 | 62,829 | 59,270 | |||||||
| Celebration Checking | 105,247 | 105,358 | 101,474 | 99,694 | 102,617 | |||||||
| Money Market Accts | 29,673 | 30,402 | 47,286 | 55,836 | 49,584 | |||||||
| Savings | 44,030 | 43,862 | 44,139 | 43,574 | 44,152 | |||||||
| CDs Less Than $100k | 57,827 | 57,600 | 57,349 | 56,864 | 56,664 | |||||||
| CDs Greater than $100k | 37,232 | 30,477 | 34,795 | 38,007 | 39,867 | |||||||
| Total Deposits | $445,921 | $446,548 | $438,495 | $463,625 | $452,054 | |||||||
| Other Liabilities | 1,639 | 1,874 | 2,115 | 1,493 | 2,492 | |||||||
| Net Borrowings (Wholesale Funding) | 59,666 | 40,000 | 50,641 | 30,000 | 30,000 | |||||||
| Total Liabilities | $507,226 | $488,422 | $491,251 | $495,118 | $484,546 | |||||||
| Total Equity | 52,489 | 52,852 | 52,821 | 55,366 | 58,087 | |||||||
| Total Liabilities & Stockholders' Equity | $559,715 | $541,274 | $544,072 | $550,484 | $542,633 | |||||||
| Ratios | ||||||||||
| Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | ||||||
| ROAA | 0.58% | 0.59% | 0.81% | 0.93% | 0.86% | |||||
| ROAE | 6.03% | 6.12% | 8.35% | 9.40% | 8.32% | |||||
| NPAs/Assets (Core) | 0.99% | 1.25% | 1.11% | 0.92% | 0.92% | |||||
| Est. T1 Leverage (Bank) | 8.42% | 8.56% | 8.94% | 9.16% | 9.46% | |||||
| Total Common Equiv. Shares | 8,413,372 | 8,413,372 | 8,421,992 | 8,421,992 | 8,421,992 | |||||
| NIM | 3.83% | 3.73% | 3.78% | 3.79% | 3.85% | |||||
| Cost of Deposits | 0.24% | 0.25% | 0.33% | 0.44% | 0.49% | |||||
| Loan/Deposit | 68.3% | 68.0% | 72.5% | 68.8% | 69.5% | |||||
| Employees | 116 | 115 | 110 | 106 | 105 | |||||