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Southwest Georgia Financial Corp (SGB) filed Quarterly Report for the period ended 2011-06-30.
Southwest Georgia Financial Corp. has a market cap of $18.93 million; its shares were traded at around $7.43 with a P/E ratio of 12.59 and P/S ratio of 1.05.
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:
32 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 to $2.9 million for the second quarter of 2011 compared with $2.6 million in net interest income in the 2010 second quarter. Net interest income after provision for loan losses for the second quarter of 2011 was $2.7 million compared with $2.5 million for the same period in 2010. The provision for loan losses was $150 thousand for each of the second quarters of 2011 and 2010. The Corporation’s net interest margin was 4.21% for the second quarter of 2011, up 14 basis points from the same period last year. The increase in net interest margin was due to higher loan volume and loan origination fees, reinvestment of excess daily deposits with banks to higher yielding securities, and significantly lower funding costs.
Noninterest income was $1.4 million for the second quarter of 2011, down $411 thousand from the same period in 2010. The change was primarily the result of a decline in the gain on sold securities, of which a $188 thousand gain was recorded in the second quarter of 2011 compared with a $628 thousand gain on the sale of securities in the second quarter last year. A net loss on the sale or disposition of assets was recognized in the second quarter of 2011 representing the sale and writedown of two foreclosed properties. Service charges on deposit accounts also declined $67 thousand, or 16.7%, compared with the second quarter of 2010, primarily due to new Regulation E rules pertaining to overdraft fees enacted last year. Partially offsetting these decreases was a $110 thousand increase in mortgage banking services driven by problem loan resolution at the Corporation’s mortgage banking subsidiary. Also contributing was income from insurance services, which increased $19 thousand compared with the second quarter of 2010.
Noninterest expense increased $270 thousand to $3.4 million for the second quarter of 2011 compared with the second quarter of 2010. The largest component of noninterest expense, salaries and employee benefits, increased $153 thousand to $1.9 million for the second quarter due to staff expansion at the Valdosta Banking Center. Occupancy and data processing expense increased $15 thousand and $10 thousand, respectively. Other operating expenses also increased $92 thousand due primarily to higher foreclosed asset expenses. All other components of noninterest expense remained relatively flat.
Total interest income for the first six months of 2011 decreased $74 thousand to $6.6 million when compared with the same period in 2010. This decrease was primarily due to a $203 thousand decrease in interest on investment securities due to the sale, maturity or call of higher yielding securities. Interest on deposits in other banks decreased $10 thousand compared with the first half of 2010. These decreases were partially offset by an increase in interest and fees on loans of $138 thousand due to a $6.1 million higher average volume of loans and increased loan origination fees compared with the first half of last year.
33 For the first six months of 2011, noninterest income was $2.7 million, down 10.8% from the same period in 2010. As previously noted, the decrease was primarily attributed to a $314 thousand lower net gain on the sale of securities for the first six months of 2011 compared with the same period in 2010. We also recognized a $150 thousand provision for market value losses in foreclosed assets and a decrease in service charges on deposit accounts of $85 thousand, or 10.8%, when compared with the same period of 2010. These decreases in revenue were partially offset by income from insurance services which increased $52 thousand, or 8.5%, when compared with the six-month period in 2010. Revenue from mortgage banking services increased $84 thousand compared with the same period in 2010.
At June 30, 2011, total assets were $301.4 million, up from $296.4 million at December 31, 2010. Comparing second quarter 2011 with second quarter 2010, the increase in total assets was primarily due to solid loan growth funded by growth in deposits. Total loans increased $18.9 million, or 12.0%, to $176.7 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 58.6% of total assets.
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