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CST: 28/02/2021 09:19:52   

SouthCrest Financial Group Reports Preliminary 1Q19 Earnings

675 Days ago

ATLANTA, April 24, 2019 (GLOBE NEWSWIRE) -- Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK), announced today that the Company reported preliminary earnings of $1.18MM or $0.14/share for the first quarter ended March 31, 2019.  There were no meaningful unusual items during the quarter.  These results compare favorably to 1Q18 core earnings of $0.9MM or $0.11/share.

“We are extremely pleased to show over 30% earnings growth from the first quarter of 2018.  We have worked diligently to position SouthCrest as an active competitor in the Atlanta and north Georgia markets, and the significant merger disruption that has and will continue to occur in Atlanta improves our opportunity to find talent, grow our balance sheet, and most importantly, grow shareholder value.  Like many of our peers, loan growth was sluggish during the quarter, but we are confident that the disruption that we see daily will provide ample chances to improve that trend.  We have also continued to successfully reduce operating expenses, reporting the lowest non-interest expense levels in over 10 years.  Finally, deposit growth for the quarter was 1% from 1Q18, but was negatively impacted by a loss of a $10MM municipal deposit account during the quarter,” Schmitt said.

Total assets were down slightly at $542.6MM vs. $550.5MM in 4Q18, and vs. $559.7MM in 1Q18.  Seasonality accounts for some of the decline in total assets during the quarter vs. 4Q, but excluding a decline of $30MM in borrowings from 1Q18 to 1Q19, asset growth would have totaled 2%.

Excluding the $10MM lost municipal deposit, deposits would have been effectively flat with 4Q18.  The deposit mix shift during the quarter was close to neutral to the cost of funds.

The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank increased to 9.46%.  On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $6.90 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 -$0.16/share vs. -$0.38/share as of 3Q18.  Excluding the OCI impact, TBV/share grew $0.11 during the quarter.  The current fully converted share count at the end of the quarter was 8.42 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 ratios were flat during the quarter, with NPAs to assets remaining at 0.92% vs. 0.92% in 4Q18, excluding the $520,000 of a former bank building in OREO.  Including this building, 1Q19 NPAs/total assets were 1.02% of assets vs. 1.02% in 4Q18. Excluding the impact of the bank building in OREO, OREO balances were just $153,000.   

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 2018
  Q2 2018
  Q3 2018   Q4 2018   Q1 2019  
Interest Income                  
Loans                  
Construction and Development $535   $479   $560   $633   $609  
Commercial Real Estate 1,667   1,696   1,776   1,819   1,800  
Commercial Loans 341   370   454   401   458  
Multi Family 28   28   27   20   19  
Residential Mortgage 1,087   1,116   1,119   1,167   1,176  
Consumer Loans 57   56   51   48   41  
County/Municipal Loans 23   23   23   25   25  
Loss Share Loans 80   79   70   64   62  
Investment Securities                  
Federal Funds/Overnight Funds $98   $48   $41   $65   $82  
Bank Owned CDs 6   6   7   7   7  
Investment Securities 1,187   1,214   1,181   1,187   1,168  
Total Interest Income $ 5,109   $ 5,115   $ 5,311   $ 5,436   $ 5,447  
                   
Total Interest Expense $460   $506   $586   $728   $746  
Net Interest Income $ 4,649   $ 4,609   $ 4,725   $ 4,708   $ 4,701  
Provision for Loan Losses 125   0   46   0   0  
Net Interest Income after Loan Losses $ 4,524   $ 4,609   $ 4,679   $ 4,708   $ 4,701  
                     
Other Income                  
Service Charges on Deposits $168   $165   $169   $164   $156  
NSF/Overdraft Fees 350   334   350   396   309  
Other Service Charges 64   63   62   65   65  
ATM/Billpay/DR Card Income 262   280   273   260   255  
Other Income 227   125   316   172   204  
Total Other Income $ 1,071   $ 967   $ 1,170   $ 1,057   $ 989  
Non-Interest Expense                  
Salaries, Other Comp (+ FAS123R) $1,948   $1,969   $1,889   $1,822   $1,849  
Employee Benefits 473   524   435   458   419  
Occupancy & FF&E Expense 653   590   621   588   621  
Professional Fees 161   156   305   136   170  
Data Processing 480   489   485   476   481  
Other Expense 883   832   693   724   649  
Total Noninterest Expenses $ 4,598   $ 4,560   $ 4,428   $ 4,204   $ 4,189  
Pre-Tax Income (Loss) $ 997   $ 1,016   $ 1,421   $ 1,561   $ 1,501  
Income Taxes 197   210   319   289   321  
Net Income $ 800   $ 806   $ 1,102   $ 1,272   $ 1,180  
                   
                   
Balance Sheet ($000s, Unaudited)
 
Assets Q1 2018
  Q2 2018
  Q3 2018
  Q4 2018
  Q1 2019
 
Current Assets          
Cash & Due from Bank $24,603   $18,408   $14,189   $20,168   $20,243  
Federal Funds/Overnight Funds 0   5,446   0   6,070   1,718  
Bank Owned CDs 1,319   1,319   1,322   1,322   1,322  
Investment Securities 182,569   169,924   166,632   162,936   161,561  
Total Current Assets $ 208,491   $ 195,097   $ 182,143   $ 190,496   $ 184,844  
                     
Loans          
Construction and Development $31,475   $34,157   $43,113   $40,420   $41,777  
Commercial Real Estate 138,931   134,653   148,219   144,329   144,178  
Commercial Loans 28,048   29,873   29,997   29,452   28,177  
Multi Family 2,150   2,230   1,518   1,466   1,438  
Residential Mortgage 92,973   92,346   88,357   94,199   92,405  
Consumer Loans 5,738   3,361   2,143   2,579   1,086  
County/Municipal Loans 2,511   2,480   2,459   2,438   2,301  
Loss Share Loans 4,536   4,480   3,466   4,030   3,975  
Total Loans $ 306,362   $ 303,581   $ 319,272   $ 318,914   $ 315,337  
Allowance for Loss (3,028 ) (3,037 ) (3,060 ) (3,042 ) (2,968 )
Net Loans $ 303,334   $ 300,544   $ 316,212   $ 315,872   $ 312,369  
OREO 2,697   879   720   821   670  
FDIC Indemnification 112   112   0   0   0  
BOLI 21,490   21,640   21,773   21,909   22,039  
Fixed Assets, net 10,166   9,970   9,733   9,511   9,268  
Intangible Assets 197   152   126   116   107  
Other Assets 13,228   12,880   13,365   11,759   13,336  
Total Assets $559,715   $541,274   $544,072   $550,484   $542,633  
                     
Liabilities & Stockholders' Equity          
Liabilities          
Deposits          
DDAs $95,714   $97,587   $88,768   $106,821   $99,896  
Interest Bearing Demand 76,198   81,262   64,684   62,829   59,270  
Celebration Checking 105,247   105,358   101,474   99,694   102,617  
Money Market Accts 29,673   30,402   47,286   55,836   49,584  
Savings 44,030   43,862   44,139   43,574   44,152  
CDs Less Than $100k 57,827   57,600   57,349   56,864   56,664  
CDs Greater than $100k 37,232   30,477   34,795   38,007   39,867  
Total Deposits $ 445,921   $ 446,548   $ 438,495   $ 463,625   $ 452,054  
Other Liabilities 1,639   1,874   2,115   1,493   2,492  
Net Borrowings (Wholesale Funding) 59,666   40,000   50,641   30,000   30,000  
Total Liabilities $507,226   $488,422   $491,251   $495,118   $484,546  
Total Equity 52,489   52,852   52,821   55,366   58,087  
Total Liabilities & Stockholders' Equity $559,715   $541,274   $544,072   $550,484   $542,633  


Ratios      
  Q1 2018   Q2 2018   Q3 2018   Q4 2018   Q1 2019  
ROAA 0.58%   0.59%   0.81%   0.93%   0.86%  
ROAE 6.03%   6.12%   8.35%   9.40%   8.32%  
NPAs/Assets (Core) 0.99%   1.25%   1.11%   0.92%   0.92%  
Est. T1 Leverage (Bank)  8.42%   8.56%   8.94%   9.16%   9.46%  
Total Common Equiv. Shares 8,413,372   8,413,372   8,421,992   8,421,992   8,421,992  
NIM 3.83%   3.73%   3.78%   3.79%   3.85%  
Cost of Deposits 0.24%   0.25%   0.33%   0.44%   0.49%  
Loan/Deposit 68.3%   68.0%   72.5%   68.8%   69.5%  
Employees 116   115   110   106   105  

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