FAYETTEVILLE, Ga., Feb. 26, 2007 (PRIME NEWSWIRE) -- SouthCrest Financial Group, Inc. (OTCBB:SCSG) reported net income of $1,493,000 for the quarter ended December 31, 2006 compared to $1,154,000 for the same quarter a year ago. For the year ended December 31, 2006, net income was $5,774,000 compared to $4,844,000 for the same period in 2005. On a per share basis, results were $0.39 per share for the current quarter compared to $0.32 for the same period a year ago, and $1.59 per share for the year ended December 31, 2006 compared to $1.36 for the year ended December 31, 2005. Results for the 2005 quarter included a recognized loss on disposal of equipment of $184,000, or $114,000 net of tax.
Return on average assets was 1.12% for the current quarter compared to 1.03% for the same period in 2005, and 1.22% for the current year compared to 1.13% for 2005. Return on average equity was 9.23% for the quarter compared to 8.64% in 2005, and 10.09% and 9.29% for the annual periods in 2006 and 2005, respectively. The Company's net interest margins have remained consistent with the previous year, increasing to 4.44% for the fourth quarter of 2006 from 4.42% in the same period in 2005, and increasing to 4.46% for the year ended December 31, 2006 from 4.43% for the same period in 2005.
Total assets at December 31, 2006 were $543.5 million compared to $450.8 million at December 31, 2005, an increase of $92.7 million, or 20.6%. Gross loans (excluding reserves for loan losses) totaled $335.5 million at December 31, 2006 compared to $276.8 million at December 31, 2005, an increase of $58.7 million or 21.2%. Much of the growth in loans relates to the SouthCrest banking office in Fayetteville, Georgia, which opened in November 2004. Deposits increased $84.7 million or 22.4% to $462.6 million at December 31, 2006. Borrowed funds decreased $9.3 million to $5.9 million.
On October 31, 2006, the Company completed its merger with Maplesville Bancorp. This merger accounted for $68.9 million of the increase in total assets and $159,000 of the increase in net income for both the quarter and year-to-date periods in 2006. Assets and liabilities, and results of operations for Maplesville are only included in the balance sheets and income statements of the Company from the date of merger going forward.
At December 31, 2006, the allowance for loan losses was 1.34% of loans compared to 1.26% at December 31, 2005. Net chargeoffs were 0.16% and 0.17% of average loans for the years ended December 31, 2006 and 2005, respectively. For the three month periods, net chargeoffs were 0.37% and 0.18% of average loans, respectively. Despite an increase in nonperforming assets at December 31, 2006, the Company's asset quality indicators compare favorably with historical benchmarks for the industry. At December 31, 2006, nonperforming assets were $1,700,000, or 0.31% of total assets, compared to $1,111,000 or 0.25% of total assets at December 31, 2005.
In a press release dated January 2, 2007, the Company announced that it declared a dividend of $0.13 per share compared to $0.125 per share for the same period a year ago. The dividend was paid on January 31, 2007 to shareholders of record as of January 17, 2007.
About SouthCrest Financial Group, Inc.
SouthCrest Financial Group, Inc. is the parent company of three bank subsidiaries operating a total of eleven branch offices. Bank of Upson, based in Thomaston, Georgia, has two branches in Upson County, three branches in Meriwether County operating as Meriwether Bank & Trust, and one branch in Fayette County operating as SouthCrest Bank. First National Bank of Polk County, based in Cedartown, Georgia, operates three branches in Polk County. Peachtree Bank, headquartered in Maplesville, Alabama has two branches in Chilton County Alabama. SouthCrest is traded on the OTC-Bulletin Board under the symbol "SCSG."
Forward-Looking Statements: This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting SouthCrest's operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced SouthCrest's assumptions, but that are beyond SouthCrest's control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environment and securities markets, (iv) adverse changes in the regulatory requirements affecting SouthCrest, (v) greater competitive pressures among financial institutions in SouthCrest's markets and (vi) greater loan losses than historic levels. Additional information and other factors that could affect future financial results are included in SouthCrest's filings with the Securities and Exchange Commission.
SouthCrest Financial Group, Inc.
Consolidated Financial Highlights
(Unaudited)
All dollars in thousands except per share data
Quarter Ended Dec. 31 Year Ended Dec. 31
------------------------- -------------------------
% %
2006 2005 Change 2006 2005 Change
------------------------- -------------------------
EARNINGS
Net interest
income $ 5,245 $ 4,597 14.1% $ 19,191 $ 17,469 9.9%
Provision for
loan losses 331 232 42.7% 839 751 11.7%
Noninterest
income 1,416 1,082 30.9% 5,150 4,411 16.8%
Noninterest
expense 4,149 3,798 9.2% 14,953 14,129 5.8%
Income taxes 688 495 39.0% 2,775 2,156 28.7%
Net income 1,493 1,154 29.4% 5,774 4,844 19.2%
PER SHARE
INFORMATION
Earnings
per share $ 0.39 $ 0.32 21.9% $ 1.59 $ 1.36 16.9%
Dividends
per share 0.125 0.120 4.2% 0.500 0.480 4.2%
Book value
per share 17.03 14.93 14.1%
OPERATING
RATIOS (a)
Net interest
margin 4.44% 4.42% 4.46% 4.43%
Return on
average
assets 1.12% 1.03% 1.22% 1.13%
Return on
average
equity 9.23% 8.64% 10.09% 9.29%
Efficiency
ratio 62.29% 64.78% 60.96% 63.23%
Net
chargeoffs /
average loans 0.37% 0.18% 0.16% 0.17%
AVERAGE
BALANCES
Loans $320,736 $274,884 16.7% $293,489 $249,394 17.7%
Total earning
assets 469,037 413,044 13.6% 430,130 394,076 9.1%
Total assets 526,628 445,891 18.1% 472,940 428,360 10.4%
Deposits 440,526 373,788 17.9% 397,637 366,877 8.4%
Borrowed funds 10,598 13,523 n/m 12,960 4,695 n/m
Shareholders'
equity 64,135 52,968 21.1% 57,221 52,125 9.8%
As of Dec. 31,
------------------
%
2006 2005 Change
END OF PERIOD -------------------------
BALANCES
Loans $335,452 $276,780 21.2%
Reserve for
loan losses 4,480 3,477 28.8%
Total earning
assets 483,653 410,897 17.7%
Intangible
assets 13,706 6,913 98.3%
Total assets 543,540 450,848 20.6%
Deposits 462,622 377,900 22.4%
Borrowed funds 5,945 15,275 n/m
Shareholders'
equity 67,322 53,456 25.9%
ASSET QUALITY
(END OF PERIOD)
Loans 90 days
past due and
still
accruing $ 1,015 $ 549
Nonaccrual
Loans 479 232
Other Real
Estate Owned 206 330
Total
nonperforming
assets 1,700 1,111
Nonperforming
assets /
total assets 0.31% 0.25%
Allowance for
loan losses /
total loans 1.34% 1.26%
(a) All ratios are annualized.
n/m - percentage change is not meaningful.