ATLANTA, April 22, 2021 (GLOBE NEWSWIRE) -- Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK) announced today that the Company reported preliminary earnings of $1.91 million or $0.25/share for the first quarter ended March 31, 2021. Excluding non-core items, primarily securities gains, core earnings were $1.34 million, or $0.17/share.
In addition, the Company is announcing the payment of its quarterly dividend of $0.06/share. The dividend will be payable on May 20, 2021, to all shareholders of record on May 6, 2021.
“We consider the Company’s income performance this quarter to be reasonable given the loan pay downs that occurred. I continue to be proud of our team’s performance in maintaining exceptional credit quality and expense discipline.”
“With the payoff of $15 million of wholesale FHLB borrowings during the quarter the total balance sheet size was down slightly, but total deposits grew by almost $12 million, clearing $600 million for the first time.”
Total assets declined to $707.1 million vs. $715.1 million in 4Q20 and $557.7 million in the first quarter of 2020. Loan balances declined by $12 million during the quarter, primarily due to the planned decrease in a short term funding relationship with one client, finishing at $314.2 million vs. $326.7 million at the end of 4Q20 and $334.6 million in 1Q20. The ALLL also remained flat at $3.7MM but increased as a percentage of loans to 1.18% from 1.14% in the prior quarter.
Interest income remained effectively flat with 4Q20 as an increase in investment securities income offset the lower average loan balances. Cash levels remained slightly elevated from pre-Covid standards, but management expects to continue to improve this over the next few quarters. Interest expense remained level during the first quarter, even with significantly increased average balances. Provision expense remained at zero for the quarter.
Non-interest income returned to Covid-like levels (excluding the $816,000 of securities gains in 4Q20), with NSF and overdraft fees declining by 18% from 4Q20 and 38% over the prior year. Other non-interest expense categories remained relatively flat from 4Q20. Non-interest expense were lower from 4Q20 with core expenses running at a $16.1MM annualized rate in 1Q21.
The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank declined to 8.27% from 9.08% as a result of the repurchase of over 420,000 common and preferred shares and significant average balance sheet growth during the quarter. On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $7.64 per share, up from $7.09 as of 1Q20 but down from $8.17 at the end of 2020. This metric will continue to be influenced by OCI changes resulting from the swings in interest rates. Currently, the positive impact to TBV by OCI is $0.38/share vs. $0.96/share at the end of 4Q20. The current fully converted share count at the end of the quarter was 7.400 million shares, comprised of 5.761 million common shares and 1.639 million preferred shares.
Asset quality ratios continued a multi-quarter trend of improvement even with the COVID economic environment. Loan deferrals remained flat with 4Q20 and NPAs to assets declined to 0.46% vs. 0.55% in 4Q20. As of March 31, 2021 the Company’s OREO balances remained $447,000, consisting of one residential property.
ABOUT SOUTHCREST
SouthCrest Financial Group, Inc. is a bank holding company with over $700 million 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) | |||||||||||||||||||
| Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Loans | |||||||||||||||||||
| Construction and Development | $ | 744 | $ | 758 | $ | 781 | $ | 761 | $ | 665 | |||||||||
| Commercial Real Estate | 1,856 | 1,974 | 1,846 | 1,824 | 1,845 | ||||||||||||||
| Commercial Loans | 553 | 567 | 542 | 547 | 494 | ||||||||||||||
| Multi Family | 21 | 21 | 25 | 65 | 65 | ||||||||||||||
| Residential Mortgage | 904 | 750 | 743 | 636 | 681 | ||||||||||||||
| Consumer Loans | 36 | 29 | 28 | 29 | 26 | ||||||||||||||
| County/Municipal Loans | 34 | 41 | 50 | 21 | 20 | ||||||||||||||
| Loss Share Loans | 46 | 37 | 33 | 29 | 26 | ||||||||||||||
| Investment Securities | |||||||||||||||||||
| Federal Funds/Overnight Funds | $ | 129 | $ | 6 | $ | 8 | $ | 15 | $ | 10 | |||||||||
| Bank Owned CDs | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
| Investment Securities | 1,023 | 1,393 | 1,425 | 1,494 | 1,622 | ||||||||||||||
| Total Interest Income | $ | 5,346 | $ | 5,576 | $ | 5,481 | $ | 5,420 | $ | 5,453 | |||||||||
| Total Interest Expense | $ | 769 | $ | 741 | $ | 702 | $ | 678 | $ | 678 | |||||||||
| Net Interest Income | $ | 4,577 | $ | 4,835 | $ | 4,779 | $ | 4,742 | $ | 4,775 | |||||||||
| Provision for Loan Losses | 150 | 450 | 0 | 0 | 0 | ||||||||||||||
| Net Interest Income after Loan Losses | $ | 4,427 | $ | 4,385 | $ | 4,779 | $ | 4,742 | $ | 4,775 | |||||||||
| Other Income | |||||||||||||||||||
| Service Charges on Deposits | $ | 138 | $ | 132 | $ | 130 | $ | 128 | $ | 103 | |||||||||
| NSF/Overdraft Fees | 305 | 158 | 213 | 231 | 190 | ||||||||||||||
| Other Service Charges | 64 | 71 | 78 | 73 | 76 | ||||||||||||||
| ATM/Billpay/DR Card Income | 247 | 277 | 298 | 306 | 326 | ||||||||||||||
| Other Income | 238 | 664 | 1,441 | 207 | 1,011 | ||||||||||||||
| Total Other Income | $ | 992 | $ | 1,303 | $ | 2,160 | $ | 946 | $ | 1,707 | |||||||||
| Non-Interest Expense | |||||||||||||||||||
| Salaries, Other Comp (+ FAS123R) | $ | 1,940 | $ | 1,711 | $ | 1,985 | $ | 2,140 | $ | 1,924 | |||||||||
| Employee Benefits | 412 | 341 | 276 | 523 | 367 | ||||||||||||||
| Occupancy & FF&E Expense | 503 | 506 | 475 | 474 | 463 | ||||||||||||||
| Professional Fees | 141 | 143 | 197 | 235 | 232 | ||||||||||||||
| Data Processing | 488 | 385 | 353 | 362 | 389 | ||||||||||||||
| Other Expense | 632 | 661 | 672 | 665 | 754 | ||||||||||||||
| Total Noninterest Expenses | $ | 4,116 | $ | 3,747 | $ | 3,958 | $ | 4,400 | $ | 4,130 | |||||||||
| Pre-Tax Income (Loss) | $ | 1,303 | $ | 1,941 | $ | 2,981 | $ | 1,288 | $ | 2,352 | |||||||||
| Income Taxes | 265 | 316 | 580 | 160 | 447 | ||||||||||||||
| Net Income | $ | 1,038 | $ | 1,625 | $ | 2,401 | $ | 1,127 | $ | 1,905 | |||||||||
| Balance Sheet ($000s, Unaudited) | |||||||||||||||||||||||||||||||
| Assets | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | ||||||||||||||||||||||||||
| Current Assets | |||||||||||||||||||||||||||||||
| Cash & Due from Bank | $ | 19,845 | $ | 22,520 | $ | 39,600 | $ | 81,969 | $ | 42,699 | |||||||||||||||||||||
| Federal Funds/Overnight Funds | 0 | 7,873 | 10,101 | 4,192 | 15,720 | ||||||||||||||||||||||||||
| Bank Owned CDs | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
| Investment Securities | 184,377 | 218,680 | 222,913 | 265,602 | 297,307 | ||||||||||||||||||||||||||
| Total Current Assets | $ | 204,222 | $ | 249,072 | $ | 272,614 | $ | 352,484 | $ | 355,726 | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||
| Construction and Development | $ | 56,430 | $ | 64,320 | $ | 65,675 | $ | 54,631 | $ | 50,360 | |||||||||||||||||||||
| Commercial Real Estate | 142,610 | 139,407 | 134,986 | 140,558 | 155,014 | ||||||||||||||||||||||||||
| Commercial Loans | 53,383 | 56,860 | 55,327 | 47,556 | 38,430 | ||||||||||||||||||||||||||
| Multi Family | 1,601 | 1,590 | 1,714 | 6,346 | 6,191 | ||||||||||||||||||||||||||
| Residential Mortgage | 73,778 | 66,810 | 62,672 | 59,856 | 55,262 | ||||||||||||||||||||||||||
| Consumer Loans | 2,144 | 2,472 | 1,868 | 13,908 | 5,228 | ||||||||||||||||||||||||||
| County/Municipal Loans | 3,732 | 4,851 | 1,990 | 1,982 | 1,849 | ||||||||||||||||||||||||||
| Loss Share Loans | 2,451 | 2,315 | 2,152 | 1,848 | 1,828 | ||||||||||||||||||||||||||
| Total Loans | $ | 336,129 | $ | 338,625 | $ | 326,383 | $ | 326,684 | $ | 314,162 | |||||||||||||||||||||
| Allowance for Loss | (3,184 | ) | (3,984 | ) | (3,705 | ) | (3,705 | ) | (3,713 | ) | |||||||||||||||||||||
| Net Loans | $ | 332,946 | $ | 334,641 | $ | 322,678 | $ | 322,979 | $ | 310,449 | |||||||||||||||||||||
| OREO | 529 | 447 | 447 | 447 | 447 | ||||||||||||||||||||||||||
| FDIC Indemnification | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
| BOLI | 22,583 | 22,737 | 22,872 | 23,009 | 23,140 | ||||||||||||||||||||||||||
| Fixed Assets, net | 8,705 | 8,697 | 8,540 | 8,581 | 8,568 | ||||||||||||||||||||||||||
| Intangible Assets | 80 | 68 | 64 | 1,089 | 1,060 | ||||||||||||||||||||||||||
| Other Assets | 8,604 | 6,731 | 7,030 | 6,501 | 7,681 | ||||||||||||||||||||||||||
| Total Assets | $ | 577,669 | $ | 622,383 | $ | 634,245 | $ | 715,090 | $ | 707,073 | |||||||||||||||||||||
| Liabilities & Stockholders' Equity | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||
| DDAs | $ | 96,517 | $ | 114,554 | $ | 118,082 | $ | 130,268 | $ | 131,767 | |||||||||||||||||||||
| Interest Bearing Demand | 85,746 | 96,141 | 95,732 | 128,477 | 116,667 | ||||||||||||||||||||||||||
| Celebration Checking | 103,718 | 111,421 | 114,657 | 132,372 | 141,369 | ||||||||||||||||||||||||||
| Money Market Accts | 37,693 | 38,650 | 43,746 | 44,427 | 52,640 | ||||||||||||||||||||||||||
| Savings | 44,516 | 47,674 | 48,928 | 51,953 | 57,099 | ||||||||||||||||||||||||||
| CDs Less Than $100k | 53,616 | 52,709 | 51,735 | 58,452 | 57,323 | ||||||||||||||||||||||||||
| CDs Greater than $100k | 47,259 | 47,049 | 43,612 | 49,715 | 50,767 | ||||||||||||||||||||||||||
| Total Deposits | $ | 469,064 | $ | 508,198 | $ | 516,491 | $ | 595,664 | $ | 607,631 | |||||||||||||||||||||
| Other Liabilities | 2,415 | 2,184 | 2,772 | 2,285 | 4,285 | ||||||||||||||
| Net Borrowings (Wholesale Funding) | 50,228 | 50,546 | 52,258 | 52,263 | 37,611 | ||||||||||||||
| Total Liabilities | $ | 521,708 | $ | 560,918 | $ | 571,522 | $ | 650,212 | $ | 649,527 | |||||||||
| Total Equity | 55,961 | 61,465 | 62,723 | 64,878 | 57,546 | ||||||||||||||
| Total Liabilities & Stockholders' Equity | $ | 577,669 | $ | 622,393 | $ | 634,245 | $ | 715,090 | $ | 707,073 |
| Ratios | ||||||||||||||
| Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | ||||||||||
| ROAA | 0.75 | % | 1.05 | % | 1.53 | % | 0.69 | % | 1.09 | % | ||||
| ROAE | 7.30 | % | 10.87 | % | 16.88 | % | 6.79 | % | 11.62 | % | ||||
| NPAs/Assets | 0.80 | % | 0.71 | % | 0.59 | % | 0.55 | % | 0.46 | % | ||||
| Est. T1 Leverage (Bank) | 9.62 | % | 8.99 | % | 9.41 | % | 9.08 | % | 8.27 | % | ||||
| Total Common Shares | 5,832,793 | 5,786,288 | 5,761,439 | 5,761,439 | 5,761,170 | |||||||||
| Total Preferred Shares | 2,054,759 | 2,054,759 | 2,054,759 | 2,054,759 | 1,638,596 | |||||||||
| Total Common Equiv. Shares | 7,887,552 | 7,841,047 | 7,816,198 | 7,816,198 | 7,399,766 | |||||||||
| NIM (Bank) | 3.65 | % | 3.37 | % | 3.22 | % | 3.17 | % | 2.99 | % | ||||
| Cost of Deposits (Bank) | 0.54 | % | 0.46 | % | 0.41 | % | 0.36 | % | 0.36 | % | ||||
| Loan/Deposit | 71.6 | % | 66.6 | % | 63.1 | % | 54.8 | % | 51.7 | % | ||||
| Employees | 104 | 102 | 98 | 94 | 99 | |||||||||
| Loans in Atlanta MSA | 78.2 | % | 79.1 | % | 80.5 | % | 77.8 | % | 80.7 | % | ||||