Southwest Georgia Financial Corp (SGB, Financial) filed Quarterly Report for the period ended 2010-03-31.
Southwest Georgia Financial Corp has a market cap of $27.6 million; its shares were traded at around $10.83 with a P/E ratio of 15 and P/S ratio of 1.5. The dividend yield of Southwest Georgia Financial Corp stocks is 3.8%.
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% in September 2007. This historically low level has
remained unchanged through March 2010.
We measure our performance on selected key ratios, which are provided for the
previous five quarterly periods ended March 31, 2010.
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2010 2009 2009 2009 2009
Return on average total assets .55% .98% .67% .38% .56%
Return on average total equity 6.26% 11.11% 7.71% 4.37% 6.48%
Average shareholders' equity to
Average total assets 8.74% 8.84% 8.70% 8.66% 8.62%
Net interest margin
(tax equivalent) 3.93% 4.22% 4.13% 4.12% 4.07%
Noninterest income, at 26% of the Corporation's total revenue for the
quarter, was $1.2 million for the first quarter, down 5.4% from the same
period in 2009. The quarterly decline was primarily due to a $93 thousand
loss on the sale of below investment grade corporate notes. Revenue from
mortgage banking services increased 4.8% to $328 thousand compared with last
year's first quarter. The mortgage banking business has a strong pipeline of
projects and also services a $361 million portfolio of non-recourse loans.
Revenue from insurance services increased to $319 thousand, a 6.7% increase
over the first quarter of 2009, and income from trust and brokerage services
remained relatively flat compared with the same period last year.
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 1.64% of total loans outstanding at March 31, 2010, compared with
1.58% of loans outstanding at December 31, 2009, and 1.63% at March 31, 2009.
Net charge offs in the 2010 first quarter were $47 thousand compared with net
charge offs of $126 thousand in the fourth quarter last year. Management
considers the allowance for loan losses as of March 31, 2010, adequate to
cover potential losses in the loan portfolio. Nonperforming loans to total
loans in the current period declined to 1.31%.
Southwest Georgia
Financial Corporation Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2010 Capitalized Guidelines
Tier 1 capital 15.11% 6.00% 4.00%
Total risk based capital 16.35% 10.00% 8.00%
Tier 1 leverage ratio 8.60% 5.00% 3.00%
Southwest Georgia
Bank Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2010 Capitalized Guidelines
Tier 1 capital 14.27% 6.00% 4.00%
Total risk based capital 15.53% 10.00% 8.00%
Tier 1 leverage ratio 8.11% 5.00% 3.00%
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Southwest Georgia Financial Corp has a market cap of $27.6 million; its shares were traded at around $10.83 with a P/E ratio of 15 and P/S ratio of 1.5. The dividend yield of Southwest Georgia Financial Corp stocks is 3.8%.
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% in September 2007. This historically low level has
remained unchanged through March 2010.
We measure our performance on selected key ratios, which are provided for the
previous five quarterly periods ended March 31, 2010.
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2010 2009 2009 2009 2009
Return on average total assets .55% .98% .67% .38% .56%
Return on average total equity 6.26% 11.11% 7.71% 4.37% 6.48%
Average shareholders' equity to
Average total assets 8.74% 8.84% 8.70% 8.66% 8.62%
Net interest margin
(tax equivalent) 3.93% 4.22% 4.13% 4.12% 4.07%
Noninterest income, at 26% of the Corporation's total revenue for the
quarter, was $1.2 million for the first quarter, down 5.4% from the same
period in 2009. The quarterly decline was primarily due to a $93 thousand
loss on the sale of below investment grade corporate notes. Revenue from
mortgage banking services increased 4.8% to $328 thousand compared with last
year's first quarter. The mortgage banking business has a strong pipeline of
projects and also services a $361 million portfolio of non-recourse loans.
Revenue from insurance services increased to $319 thousand, a 6.7% increase
over the first quarter of 2009, and income from trust and brokerage services
remained relatively flat compared with the same period last year.
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 1.64% of total loans outstanding at March 31, 2010, compared with
1.58% of loans outstanding at December 31, 2009, and 1.63% at March 31, 2009.
Net charge offs in the 2010 first quarter were $47 thousand compared with net
charge offs of $126 thousand in the fourth quarter last year. Management
considers the allowance for loan losses as of March 31, 2010, adequate to
cover potential losses in the loan portfolio. Nonperforming loans to total
loans in the current period declined to 1.31%.
Southwest Georgia
Financial Corporation Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2010 Capitalized Guidelines
Tier 1 capital 15.11% 6.00% 4.00%
Total risk based capital 16.35% 10.00% 8.00%
Tier 1 leverage ratio 8.60% 5.00% 3.00%
Southwest Georgia
Bank Regulatory Guidelines
For Well Minimum
Risk Based Capital Ratios March 31, 2010 Capitalized Guidelines
Tier 1 capital 14.27% 6.00% 4.00%
Total risk based capital 15.53% 10.00% 8.00%
Tier 1 leverage ratio 8.11% 5.00% 3.00%
Read the The complete Report
