ATLANTA, April 26, 2018 (GLOBE NEWSWIRE) -- Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK) announced today that the Company reported preliminary earnings of $0.8MM or $0.10/share for the first quarter ended March 31, 2018. Excluding the impact of one-time items, net income would have been $0.9MM or $0.11/share.
“We had a very successful first quarter, growing our balance sheet and improving the momentum at SouthCrest. We are now fully staffed in the commercial lending area in Atlanta. In addition, we hired a senior treasury management professional with deep relationships in the metro area. Loan growth was over $15 million or 21% annualized from the fourth quarter, which was above plan. We are obviously pleased with the loan production and, with the full lending staff now in place, we expect to have strong loan growth for the remainder of 2018. We were also able to grow deposits slightly in a quarter that has averaged a 7% annualized decline due to seasonality over the past 3 years. We believe all of these items are the beginning of a positive year for SouthCrest.
“We were excited to recently announce the initiation of a $0.03/ share regular quarterly dividend for the first time since 2009. These dividends will be payable May 15, 2018 to holders of record on May 1, 2018.”
Total assets grew from $552.4MM in 4Q17 to $559.7MM in 1Q18, overcoming the negative impact of the $5.1MM special dividend payment in February. Total assets were up slightly over 2% year over year.
Deposit balances were up sequentially 1% annualized versus average first quarter annualized declines of nearly 7% over the past three years. Total deposits at the end of 1Q18 were $445.9MM vs. $444.7MM as of 4Q17 and $435.8MM as of 1Q17 (adjusted for the Alabama branch sale).
Non-interest expenses for the quarter were $4.6 million, which was higher than plan. There were $225,000 of one-time expenses, primarily related to the facilities consolidation that occurred during the quarter and benefit expenses.
The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank increased to 8.46%. On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $6.24 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 -$0.42/share vs. -$0.19/share as of 4Q17. Excluding the OCI impact, TBV/share grew $0.10 during the quarter. The current fully converted share count at the end of the quarter remained 8.41 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 remained steady during the quarter, with NPAs to assets ticking down slightly to 0.99% from 1.05%, excluding the $2.5 million of former bank buildings in OREO, one of which in under contract and expected to close in 2Q18. Including these buildings, 1Q18 NPAs/total assets were 1.44% of assets vs. 1.51% in 4Q17. Excluding the impact of the Bank buildings in OREO, OREO balances were just $97,000.
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 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Construction and Development | $197 | $198 | $238 | $360 | $535 | ||||||||||||||||||||||
| Commercial Real Estate | 1,691 | 1,737 | 1,767 | 1,669 | 1,667 | ||||||||||||||||||||||
| Commercial Loans | 316 | 341 | 378 | 368 | 341 | ||||||||||||||||||||||
| Multi Family | 27 | 26 | 29 | 30 | 28 | ||||||||||||||||||||||
| Residential Mortgage | 1,190 | 1,209 | 1,140 | 1,117 | 1,087 | ||||||||||||||||||||||
| Consumer Loans | 117 | 109 | 61 | 68 | 57 | ||||||||||||||||||||||
| County/Municipal Loans | 25 | 25 | 24 | 24 | 23 | ||||||||||||||||||||||
| Loss Share Loans | 111 | 33 | 89 | 81 | 80 | ||||||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||
| Federal Funds/Overnight Funds | $58 | $77 | $97 | $99 | $98 | ||||||||||||||||||||||
| Bank Owned CDs | 5 | 6 | 5 | 7 | 6 | ||||||||||||||||||||||
| Investment Securities | 967 | 872 | 922 | 1,036 | 1,187 | ||||||||||||||||||||||
| Total Interest Income | $4,705 | $ ,633 | $4,750 | $4,859 | $5,109 | ||||||||||||||||||||||
| Total Interest Expense | $ 249 | $ 250 | $ 293 | $ 393 | $ 460 | ||||||||||||||||||||||
| Net Interest Income | $4,456 | $4,383 | $4,457 | $4,466 | $4,649 | ||||||||||||||||||||||
| Provision for Loan Losses | 106 | 70 | 0 | 0 | 125 | ||||||||||||||||||||||
| Net Interest Income after Loan Losses | $4,349 | $4,314 | $4,457 | $4,466 | $4,524 | ||||||||||||||||||||||
| Other Income | |||||||||||||||||||||||||||
| Service Charges on Deposits | $216 | $209 | $201 | $174 | $168 | ||||||||||||||||||||||
| NSF/Overdraft Fees | 488 | 491 | 494 | 393 | 350 | ||||||||||||||||||||||
| Other Service Charges | 75 | 78 | 68 | 63 | 64 | ||||||||||||||||||||||
| ATM/Billpay/DR Card Income | 296 | 307 | 284 | 266 | 262 | ||||||||||||||||||||||
| Other Income | 451 | 541 | 1,920 | (969) | 227 | ||||||||||||||||||||||
| Total Other Income | $1,526 | $1,626 | $2,967 | $(73) | $1,071 | ||||||||||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||||||
| Salaries, Other Comp (+ FAS123R) | $1,799 | $1,874 | $1,869 | $1,977 | $1,948 | ||||||||||||||||||||||
| Employee Benefits | 438 | 378 | 395 | 409 | 473 | ||||||||||||||||||||||
| Occupancy & FF&E Expense | 739 | 765 | 740 | 934 | 653 | ||||||||||||||||||||||
| Professional Fees | 190 | 157 | 201 | 154 | 161 | ||||||||||||||||||||||
| Data Processing | 498 | 549 | 561 | 488 | 480 | ||||||||||||||||||||||
| Other Expense | 816 | 707 | 754 | 825 | 883 | ||||||||||||||||||||||
| Total Noninterest Expenses | $4,480 | $4,430 | $4,520 | $4,787 | $4,598 | ||||||||||||||||||||||
| Pre-Tax Income (Loss) | $1,395 | $1,510 | $2,904 | $(394) | $997 | ||||||||||||||||||||||
| Income Taxes | 465 | 488 | 1,036 | 4,192 | 197 | ||||||||||||||||||||||
| Net Income | $930 | $1,022 | $1,868 | $(4,586) | $800 | ||||||||||||||||||||||
| Preferred Dividends | $125 | $57 | $0 | $0 | $0 | ||||||||||||||||||||||
| Balance Sheet ($000s, Unaudited) | ||||||||||||||||||||||||||||||||||||
| Assets | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||||||||||||||||
| Current Assets | ||||||||||||||||||||||||||||||||||||
| Cash & Due from Bank | $41,302 | $31,852 | $32,153 | $42,146 | $24,603 | |||||||||||||||||||||||||||||||
| Federal Funds/Overnight Funds | 6,688 | 5,355 | 1,150 | 2,356 | 0 | |||||||||||||||||||||||||||||||
| Bank Owned CDs | 1,069 | 1,069 | 1,319 | 1,319 | 1,319 | |||||||||||||||||||||||||||||||
| Investment Securities | 152,583 | 144,740 | 157,261 | 165,203 | 182,569 | |||||||||||||||||||||||||||||||
| Total Current Assets | $201,642 | $183,016 | $191,883 | $211,024 | $208,491 | |||||||||||||||||||||||||||||||
| Loans | ||||||||||||||||||||||||||||||||||||
| Construction and Development | $12,486 | $15,604 | $14,400 | $31,184 | $31,475 | |||||||||||||||||||||||||||||||
| Commercial Real Estate | 140,003 | 143,883 | 138,550 | 133,191 | 138,931 | |||||||||||||||||||||||||||||||
| Commercial Loans | 23,923 | 27,884 | 27,719 | 26,681 | 28,048 | |||||||||||||||||||||||||||||||
| Multi Family | 2,093 | 2,050 | 2,330 | 2,283 | 2,150 | |||||||||||||||||||||||||||||||
| Residential Mortgage | 98,302 | 95,682 | 89,760 | 87,001 | 92,973 | |||||||||||||||||||||||||||||||
| Consumer Loans | 6,117 | 5,874 | 14,086 | 3,304 | 5,738 | |||||||||||||||||||||||||||||||
| County/Municipal Loans | 2,999 | 2,971 | 2,791 | 2,771 | 2,511 | |||||||||||||||||||||||||||||||
| Loss Share Loans | 6,626 | 5,755 | 4,659 | 4,593 | 4,536 | |||||||||||||||||||||||||||||||
| Total Loans | $292,549 | $299,703 | $294,132 | $291,008 | $306,362 | |||||||||||||||||||||||||||||||
| Allowance for Loss | (2,797) | (2,875) | (2,813) | (2,820) | (3,028) | |||||||||||||||||||||||||||||||
| Net Loans | $289,752 | $296,828 | 291,482 | $288,188 | $303,334 | |||||||||||||||||||||||||||||||
| OREO | 2,728 | 2,315 | 2,194 | 2,760 | 2,697 | |||||||||||||||||||||||||||||||
| FDIC Indemnification | 238 | 112 | 112 | 112 | 112 | |||||||||||||||||||||||||||||||
| BOLI | 20,947 | 21,094 | 21,227 | 21,359 | 21,490 | |||||||||||||||||||||||||||||||
| Fixed Assets, net | 13,429 | 13,406 | 11,868 | 9,915 | 10,166 | |||||||||||||||||||||||||||||||
| Intangible Assets | 420 | 373 | 326 | 242 | 197 | |||||||||||||||||||||||||||||||
| Other Assets | 17,428 | 16,564 | 15,867 | 11,754 | 13,228 | |||||||||||||||||||||||||||||||
| Total Assets | $546,584 | $533,708 | $534,959 | $545,354 | $559,715 | |||||||||||||||||||||||||||||||
| Liabilities & Stockholders' Equity | |||||
| Liabilities | |||||
| Deposits | |||||
| DDAs | $112,286 | $106,968 | $93,150 | $99,906 | $95,714 |
| Interest Bearing Demand | 63,949 | 63,481 | 58,723 | 73,555 | 76,198 |
| Celebration Checking | 113,548 | 112,731 | 105,514 | 102,368 | 105,247 |
| Money Market Accts | 27,942 | 28,689 | 29,869 | 29,699 | 29,673 |
| Savings | 51,304 | 51,095 | 44,703 | 43,147 | 44,030 |
| CDs Less Than $100k | 70,020 | 67,892 | 61,548 | 59,273 | 57,827 |
| CDs Greater than $100k | 39,966 | 38,952 | 36,234 | 36,723 | 37,232 |
| Total Deposits | $479,018 | $469,809 | $428,929 | $444,671 | $445,921 |
| Other Liabilities | 1,632 | 1,763 | 2,223 | 7,067 | 1,639 |
| Net Borrowings (Wholesale Funding) | - | - | 40,000 | 40,000 | 59,666 |
| Total Liabilities | $480,650 | $471,572 | $471,152 | $491,738 | $507,226 |
| Total Equity | 65,934 | 62,136 | 63,807 | 53,616 | 52,489 |
| Total Liabilities & Stockholders' Equity | $546,584 | $533,708 | $534,959 | $545,354 | $559,715 |
| Ratios | |||||
| 1Q 2017 | 2Q 2017 | 3Q 2017 | 4Q 2017 | 1Q 2018 | |
| ROAA | 0.72% | 0.76% | 1.40% | -0.84% | 0.58% |
| ROAE | 6.78% | 6.57% | 11.86% | -7.81% | 6.03% |
| NPAs/Assets (Core) | 0.84% | 0.76% | 0.91% | 1.05% | 0.99% |
| Est. T1 Leverage (Bank) | 8.87% | 9.31% | 10.00% | 8.27% | 8.42% |
| Total Common Equiv. Shares | 8,389,954 | 8,395,696 | 8,410,332 | 8,413,372 | 8,413,372 |
| NIM | 3.72% | 3.68% | 3.70% | 3.68% | 3.83% |
| Cost of Deposits | 0.21% | 0.21% | 0.23% | 0.24% | 0.24% |
| Loan/Deposit | 60.3% | 63.7% | 68.5% | 65.3% | 68.3% |
| Employees | 122 | 122 | 114 | 115 | 116 |
Contact:
Andrew Bowen, APR
ab@clearviewcom.com
404-822-3309