Southwest Georgia Financial Corp (SGB, Financial) filed Quarterly Report for the period ended 2009-03-31.
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $two hundred ninety million in assets headquartered in Moultrie Georgia. Its primary subsidiary Southwest Georgia Bank offers comprehensive financial services to consumer business and governmental customers. The current banking facilities include the main office located in Colquitt County and branch offices located in Baker County Thomas County and Worth County. In addition to conventional banking services the bank provides investment planning and management trust management mortgage banking and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services which has an office in Colquitt County. Mortgage banking for primarily commercial properties is provided by Empire Financial Services Inc. a mortgage banking services firm. Southwest Georgia Financial Corp has a market cap of $23.6 million; its shares were traded at around $9.25 with a P/E ratio of 16.5 and P/S ratio of 1.4. Southwest Georgia Financial Corp had an annual average earning growth of 8.1% over the past 5 years.
dependent to a large extent upon net interest income, which is the difference
between the interest received on earning assets, such as loans, securities
and federal funds sold, and the interest paid on interest-bearing
liabilities, principally deposits and borrowings. Net interest income is
highly sensitive to the fluctuations in interest rates. For example, after
holding the overnight borrowing rate for banks at 5.25% for eight months of
2007, the Federal Reserve Bank decreased short-term interest rates by 5% to a
range of 0% to 0.25%. Federal fund rates were at this low level during the
entire first quarter of 2009.
We measure our performance on selected key ratios, which are provided for the
previous five quarterly periods ended March 31, 2009.
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2009 2008 2008 2008 2008
Return on average total assets .56% ( .17)% ( 3.99)% 1.10% 1.03%
Return on average total equity 6.48% (2.02)% (42.53)% 11.43% 10.85%
Average shareholders' equity to
Average total assets 8.62% 8.61 % 9.37 % 9.60% 9.47%
Net interest margin
(tax equivalent) 4.07% 4.26 % 4.19 % 3.97% 3.75%
Noninterest income, at 27% of the Corporation's total revenue for the
quarter, was $1.2 million for the first quarter, down 28.9% from the same
period in 2008. Revenue from mortgage banking services decreased 54.3% to
$313 thousand compared with last year's first quarter as the credit crisis
has made the mortgage funding environment challenging and has restricted loan
opportunities. Regardless of the economic situation, the mortgage banking
business has a strong pipeline of projects and also services a $385 million
portfolio of non-recourse loans. Revenue from insurance services declined to
$299 thousand, a 16.4% decrease over the first quarter of 2008, and income
from trust and brokerage services decreased $18 thousand and $30 thousand,
respectively, compared with the same period last year. The decrease in
revenue from insurance services was partially due to a decrease in
contingency fees of $69 thousand compared with the first quarter of 2008.
Other factors used in determining the adequacy of the reserve are
management's judgment about factors affecting loan quality and their
assumptions about the local and national economy. The allowance for loan
losses was 1.63% of total loans outstanding at March 31, 2009, compared with
1.59% of loans outstanding at December 31, 2008 and 1.92% at March 31, 2008.
Net charge offs in the 2009 first quarter were $126 thousand compared
with net charge offs of $837 thousand in the trailing fourth quarter of 2008
and net recoveries of $3 thousand in the first quarter of 2008.
Nonperforming assets totaled $2.5 million at March 31, 2009, or 0.91% of
total assets, compared with $3.3 million in nonperforming assets, or 1.15% of
total assets at March 31, 2008. The decrease in non-performing assets was
primarily related to the partial charge-off of one large commercial real
estate loan in our nonaccrual loans category in the fourth quarter of 2008.
Management considers the allowance for loan losses as of March 31, 2009,
adequate to cover potential losses in the loan portfolio.
Southwest Georgia
Financial Corporation Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2009 Capitalized Guidelines
Tier 1 capital 14.70% 6.00% 4.00%
Total risk based capital 15.95% 10.00% 8.00%
Tier 1 leverage ratio 8.69% 5.00% 3.00%
Tier 1 capital 14.20% 6.00% 4.00%
Total risk based capital 15.45% 10.00% 8.00%
Tier 1 leverage ratio 8.38% 5.00% 3.00%
Read the The complete Report
Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $two hundred ninety million in assets headquartered in Moultrie Georgia. Its primary subsidiary Southwest Georgia Bank offers comprehensive financial services to consumer business and governmental customers. The current banking facilities include the main office located in Colquitt County and branch offices located in Baker County Thomas County and Worth County. In addition to conventional banking services the bank provides investment planning and management trust management mortgage banking and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services which has an office in Colquitt County. Mortgage banking for primarily commercial properties is provided by Empire Financial Services Inc. a mortgage banking services firm. Southwest Georgia Financial Corp has a market cap of $23.6 million; its shares were traded at around $9.25 with a P/E ratio of 16.5 and P/S ratio of 1.4. Southwest Georgia Financial Corp had an annual average earning growth of 8.1% over the past 5 years.
Highlight of Business Operations:
The Corporation's profitability, like most financial institutions, isdependent to a large extent upon net interest income, which is the difference
between the interest received on earning assets, such as loans, securities
and federal funds sold, and the interest paid on interest-bearing
liabilities, principally deposits and borrowings. Net interest income is
highly sensitive to the fluctuations in interest rates. For example, after
holding the overnight borrowing rate for banks at 5.25% for eight months of
2007, the Federal Reserve Bank decreased short-term interest rates by 5% to a
range of 0% to 0.25%. Federal fund rates were at this low level during the
entire first quarter of 2009.
We measure our performance on selected key ratios, which are provided for the
previous five quarterly periods ended March 31, 2009.
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2009 2008 2008 2008 2008
Return on average total assets .56% ( .17)% ( 3.99)% 1.10% 1.03%
Return on average total equity 6.48% (2.02)% (42.53)% 11.43% 10.85%
Average shareholders' equity to
Average total assets 8.62% 8.61 % 9.37 % 9.60% 9.47%
Net interest margin
(tax equivalent) 4.07% 4.26 % 4.19 % 3.97% 3.75%
Noninterest income, at 27% of the Corporation's total revenue for the
quarter, was $1.2 million for the first quarter, down 28.9% from the same
period in 2008. Revenue from mortgage banking services decreased 54.3% to
$313 thousand compared with last year's first quarter as the credit crisis
has made the mortgage funding environment challenging and has restricted loan
opportunities. Regardless of the economic situation, the mortgage banking
business has a strong pipeline of projects and also services a $385 million
portfolio of non-recourse loans. Revenue from insurance services declined to
$299 thousand, a 16.4% decrease over the first quarter of 2008, and income
from trust and brokerage services decreased $18 thousand and $30 thousand,
respectively, compared with the same period last year. The decrease in
revenue from insurance services was partially due to a decrease in
contingency fees of $69 thousand compared with the first quarter of 2008.
Other factors used in determining the adequacy of the reserve are
management's judgment about factors affecting loan quality and their
assumptions about the local and national economy. The allowance for loan
losses was 1.63% of total loans outstanding at March 31, 2009, compared with
1.59% of loans outstanding at December 31, 2008 and 1.92% at March 31, 2008.
Net charge offs in the 2009 first quarter were $126 thousand compared
with net charge offs of $837 thousand in the trailing fourth quarter of 2008
and net recoveries of $3 thousand in the first quarter of 2008.
Nonperforming assets totaled $2.5 million at March 31, 2009, or 0.91% of
total assets, compared with $3.3 million in nonperforming assets, or 1.15% of
total assets at March 31, 2008. The decrease in non-performing assets was
primarily related to the partial charge-off of one large commercial real
estate loan in our nonaccrual loans category in the fourth quarter of 2008.
Management considers the allowance for loan losses as of March 31, 2009,
adequate to cover potential losses in the loan portfolio.
Southwest Georgia
Financial Corporation Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2009 Capitalized Guidelines
Tier 1 capital 14.70% 6.00% 4.00%
Total risk based capital 15.95% 10.00% 8.00%
Tier 1 leverage ratio 8.69% 5.00% 3.00%
Tier 1 capital 14.20% 6.00% 4.00%
Total risk based capital 15.45% 10.00% 8.00%
Tier 1 leverage ratio 8.38% 5.00% 3.00%
Read the The complete Report
