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Southwest Georgia Financial Corp (SGB) filed Quarterly Report for the period ended 2011-03-31.
Southwest Georgia Financial Corp. has a market cap of $28.79 million; its shares were traded at around $11.2997 with a P/E ratio of 15.69 and P/S ratio of 1.59. The dividend yield of Southwest Georgia Financial Corp. stocks is 3.54%.
This is the annual revenues and earnings per share of SGB over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SGB.
Highlight of Business Operations:
The Corporation's net income after taxes for the three-month period ending March 31, 2011, was $375 thousand, down $32 thousand, or 7.9%, from net income of $407 thousand for the first quarter of 2010. This decrease in net income was mainly due to a $226 thousand increase in salary and employee benefit expenses related to staffing the new full-service banking center and mortgage origination office in Valdosta, Georgia. Net interest income remained relatively flat, as a decrease in interest paid on deposits more than offset a decline in interest earned on investment securities. Also in the first quarter of 2011, we recognized a gain of $32 thousand on the sale of securities compared with a $93 thousand loss on the sale of securities in the first quarter of last year.
The primary source of revenue for the Corporation is net interest income, which is the difference between total interest income on earning assets and interest expense on interest-bearing sources of funds. Net interest income improved slightly to $2.6 million for the first quarter of 2011 compared with $2.5 million in net interest income in the 2010 first quarter. Net interest income after provision for loan losses for the first quarter of 2011 was $2.4 million compared with $2.3 million for the same period in 2010. The provision for loan losses was $150 thousand in the first quarter of 2011 and 2010. The Corporation’s net interest margin was 3.81% for the first quarter of 2011, down 12 basis points from the same period last year. The decline in net interest margin was mainly impacted by higher-yielding securities which were either called, matured, or sold and reinvested into shorter duration lower-yielding securities. Total investment securities yield dropped 114 basis points compared with the same quarter a year ago.
Noninterest income, at 27.8% of the Corporation’s total revenue for the quarter, was $1.2 million for the first quarter, up $64 thousand from the same period in 2010. The quarterly increase was primarily due to a $32 thousand gain on the sale of Freddie Mac preferred stock compared with a $93 thousand loss on the sale of securities in the first quarter last year. Revenue from insurance services increased 10.6% to $353 thousand compared with last year’s first quarter. Offsetting these increases was a decrease in service charges on deposit accounts of $18 thousand as well as a provision for market value changes on foreclosed properties of $75 thousand. Revenue from mortgage banking services also saw a decline of $25 thousand. Revenue from trust and brokerage services remained relatively flat compared with the same period last year.
Noninterest expense increased $225 thousand to $3.2 million for the first quarter of 2011 compared with the first quarter of 2010. The largest component of noninterest expense, salaries and employee benefits, increased to $1.9 million for the first quarter of 2011 compared with $1.7 million in the same period last year. This increase was mainly due to hiring fourteen full-time employees to staff our new full-service banking center and mortgage origination office in Valdosta, Georgia. Occupancy and equipment expense increased $25 thousand and $5 thousand, respectively. Other operating expense decreased $30 thousand to $621 thousand in the first quarter of 2011.
At March 31, 2011, total assets were $314.2 million, a 6.0% increase from December 31, 2010. Comparing first quarter 2011 with first quarter 2010, the increase in total assets was primarily due to solid loan growth funded by growth in deposits. Total loans increased $10.5 million, or 6.7%, to $168.3 million when compared with $157.8 million at December 31, 2010. Loan growth was driven primarily by our expansion into the Valdosta market where the Corporation opened a new full-service banking center in June 2010. The Corporation continues to be conservative in its lending practices in order to maintain a quality loan portfolio. Loans, a major use of funds, represented 53.6% of total assets.
Nonperforming assets were $4.2 million, or 1.34% of total assets, in the first quarter of 2011, up from $3.5 million, or 1.19% of total assets, at the end of 2010, and down from $6.1 million, or 2.03% of total assets in the same period last year. Nonperforming assets decreased over the prior year period primarily due to the sale of foreclosed properties as well as the settlement of a large nonaccrual loan. There were $3.2 million of foreclosed properties in nonperforming assets at the end of the first quarter of 2011 compared with $3.8 million at the end of last year’s first quarter.
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