SouthCrest Financial Group Reports Preliminary 4Q20 Earnings
ATLANTA, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK), announced today that the Company reported preliminary earnings of $1.13 million or $0.14/share for the fourth quarter ended December 31, 2020. Excluding non-core items, primarily deal related costs and severance, core earnings were $1.50 million, or $0.19/share.In addition, the Company is announcing an increase in the quarterly dividend to $0.06/share. The dividend will be payable on February 18, 2021, to all shareholders of record on February 4, 2021.“We would like to welcome the customers and team members from our branch purchase to the SouthCrest Bank family,” Schmitt said. “We are excited to partner with you and support your financial needs going forward. I’d also like to personally highlight the efforts of all of our personnel who worked tirelessly to successfully integrate the acquisition. The collaboration and creativity you have all shown during this transaction will benefit the Bank for years to come.”“Financially, the acquisition and other efforts in 2020 has the Bank’s ongoing strength and growth potential in the best position it has been in decades. The interest rate environment will be a challenge for the profitability of all banks for the foreseeable future, but we will continue to strive to maximize our opportunities and results against these headwinds for as long as they last.” Total assets increased to $715.1 million vs. $634.2 million in 3Q20 and $556.0MM in the year ago quarter. Loan balances remained flat during the quarter, finishing at $326.7 million vs. $326.4 million at the end of 3Q20 and $334.6 million 4Q19. The ALLL also remained flat at $3.7MM (1.14% of loans) vs. $3.7MM (1.13% of loans, rounding difference) in the quarter. Interest income declined 1.1% from 4Q20 due to lower average loan balances during the quarter and the resulting higher cash levels. Interest expense declined 3.3% during the quarter as well which led to an overall net interest income decrease of 0.8% or $38,000 versus the third quarter. During the fourth quarter, the cost of deposits declined by 5bps for the second quarter in a row to 0.36%. Provision expense remained at zero for the quarter.Non-interest income increased from the prior quarter (excluding the $1.23MM of securities gains in 3Q20), with NSF and overdraft fees increasing by 8% as the primary driver, although these fees remain down 34% over the prior year. Non-interest expense increased due to some one time deal related expenses, severance and additional compensation related taxes. Excluding one-time items in both quarters, non-interest expense increased 1.0% vs 3Q20.The estimated Tier 1 Leverage ratio at the end of the quarter for SouthCrest Bank declined to 9.08% from 9.41% as a result of the significant balance sheet growth during the quarter. On a fully converted basis (including the conversion of all preferred equity), TBV/share ended the quarter at $8.17 per share, up from $6.83 at the end of 2019 and $8.02 at the end of 3Q20. This metric will continue to be influenced by OCI changes resulting from the swings in interest rates. Currently, the positive impact to TBV by OCI is $0.96/share vs. $0.09/share at the end of 4Q19 and $0.79/share as of 3Q20. The current fully converted share count at the end of the quarter was 7.816 million shares, comprised of 5.761 million common shares and 2.055 million preferred shares.Asset quality ratios continued a multi-quarter trend of improvement even with the COVID economic environment. Loan deferrals remained flat with 3Q20 and NPAs to assets declined to 0.55% vs. 0.59% in 3Q20. As of December 31, 2020 the Company’s OREO balances remained $447,000, from one residential property.
*ABOUT SOUTHCREST*
SouthCrest Financial Group, Inc. is a bank holding company with over $700 million 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. You should not rely upon forward-looking statements, as they are inherently unlikely to occur, and we do not assume any liability to update or correct any forward-looking statements that we make.
Andy Borrmann
Chief Financial Officer
678.734.3505
*Statement of Operations ($000s, Unaudited)* *Q4 2019* *Q1 2020* *Q2 2020* *Q3 2020* *Q4 2020*
* Interest Income *
Loans
Construction and Development $669 $744 $758 $781 $761
Commercial Real Estate 2,030 1,856 1,974 1,846 1,824
Commercial Loans 645 553 567 542 547
Multi Family 28 21 21 25 65
Residential Mortgage 1,029 904 750 743 636
Consumer Loans 34 36 29 28 29
County/Municipal Loans 24 34 41 50 21
Loss Share Loans 58 46 37 33 29
*Investment Securities *
Federal Funds/Overnight Funds $77 $129 $6 $8 $15
Bank Owned CDs 2
Investment Securities 996 1,023 1,393 1,425 1,494
*Total Interest Income * *$**5,592* *$**5,346* *$**5,576* *$**5,481* *$**5,420*
* *
*Total Interest Expense * $699 $769 $741 $702 $678
*Net Interest Income * *$**4,893* *$**4,577* *$**4,835* *$**4,779* *$**4,742*
Provision for Loan Losses 150 450
*Net Interest Income after Loan Losses * *$**4,893 * *$**4,427 * *$**4,385 * *$**4,779 * *$**4,742 *
*Other Income*
Service Charges on Deposits $144 $138 $132 $130 $128
NSF/Overdraft Fees 348 305 158 213 231
Other Service Charges 95 64 71 78 73
ATM/Billpay/DR Card Income 271 247 277 298 306
Other Income 268 238 664 1,441 207
*Total Other Income * *$**1,186* *$**992* *$**1,303* *$**2,160* *$**946*
*Non-Interest Expense *
Salaries, Other Comp (+ FAS123R) $2,140 $1,940 $1,711 $1,985 $2,140
Employee Benefits 379 412 341 276 523
Occupancy & FF&E Expense 529 503 506 475 474
Professional Fees 149 141 143 197 235
Data Processing 502 488 385 353 362
Other Expense 667 632 661 672 665
*Total Noninterest Expenses * *$**4,366* *$**4,116* *$**3,747* *$**3,958* *$**4,400*
*Pre-Tax Income (Loss) * *$**1,713* *$**1,303* *$**1,941* *$**2,981* *$**1,288*
Income Taxes 389 265 316 580 160
*Net Income* *$**1,323* *$**1,038* *$**1,625* *$**2,401* *$**1,127*
*Balance Sheet ($000s, Unaudited)*
*Assets* *Q4 2019* *Q1 2020* *Q2 2020* *Q3 2020* *Q4 2020*
*Current Assets*
Cash & Due from Bank $38,555 $19,845 $22,520 $39,600 $81,969
Federal Funds/Overnight Funds 5,215 7,873 10,101 4,192
Bank Owned CDs 77
Investment Securities 139,880 184,377 218,680 222,913 265,602
*Total Current Assets* *$**183,727* *$**204,222* *$**249,072* *$**272,614* *$**352,484**Loans*
Construction and Development $47,593 $56,430 $64,320 $65,675 $54,631
Commercial Real Estate 146,287 142,610 139,407 134,986 140,558
Commercial Loans 53,833 53,383 56,860 55,327 47,556
Multi Family 1,611 1,601 1,590 1,714 6,346
Residential Mortgage 77,772 73,778 66,810 62,672 59,856
Consumer Loans 830 2,144 2,472 1,868 13,908
County/Municipal Loans 3,109 3,732 4,851 1,990 1,982
Loss Share Loans 3,601 2,451 2,315 2,152 1,848
*Total Loans* *$**334,635* *$**336,129* *$**338,625* *$**326,383* *$**326,684*
Allowance for Loss (3,039) (3,184) (3,984) (3,705) (3,705)
*Net Loans* *$**331,596* *$**332,946* *$**334,641* *$**322,678* *$**322,979*
OREO 497 529 447 447 447
FDIC Indemnification
BOLI 22,456 22,583 22,737 22,872 23,009
Fixed Assets, net 8,862 8,705 8,697 8,540 8,581
Intangible Assets 84 80 68 64 1,089
Other Assets 8,740 8,604 6,731 7,030 6,501
*Total Assets* *$**555,960* *$**577,669* *$**622,383* *$**634,245* *$**715,090*
*Liabilities & Stockholders' Equity*
*Liabilities*
*Deposits*
DDAs $103,154 $96,517 $114,554 $118,082 $130,268
Interest Bearing Demand 87,685 85,746 96,141 95,732 128,477
Celebration Checking 98,558 103,718 111,421 114,657 132,372
Money Market Accts 33,888 37,693 38,650 43,746 44,427
Savings 44,370 44,516 47,674 48,928 51,953
CDs Less Than $100k 54,228 53,616 52,709 51,735 58,452
CDs Greater than $100k 43,404 47,259 47,049 43,612 49,715
*Total Deposits* *$**465,288* *$**469,064* *$**508,198* *$**516,491* *$**595,664*
Other Liabilities 2,143 2,415 2,184 2,772 2,285
Net Borrowings (Wholesale Funding) 34,697 50,228 50,546 52,258 52,263
*Total Liabilities* *$502,127 * *$521,708 * *$560,918 * *$571,522 * *$650,212 *
*Total Equity* 53,833 55,961 61,465 62,723 64,878
*Total Liabilities & Stockholders' Equity* *$555,960* *$577,669* *$622,393* *$634,245* *$715,090*
*Ratios* *Q4 2019* *Q1 2020* *Q2 2020* *Q3 2020* *Q4 2020*
ROAA 0.98% 0.75% 1.05% 1.53% 0.69%
ROAE 9.52% 7.30% 10.87% 16.88% 6.79%
NPAs/Assets 0.77% 0.80% 0.71% 0.59% 0.55%
Est. T1 Leverage (Bank) 9.63% 9.62% 8.99% 9.41% 9.08%
Total Common Shares 5,832,793 5,832,793 5,786,288 5,761,439 5,761,439
Total Preferred Shares 2,054,759 2,054,759 2,054,759 2,054,759 2,054,759
Total Common Equiv. Shares 7,887,552 7,887,552 7,841,047 7,816,198 7,816,198
NIM (Bank) 4.03% 3.65% 3.37% 3.22% 3.17%
Cost of Deposits (Bank) 0.53% 0.54% 0.46% 0.41% 0.36%
Loan/Deposit 71.9% 71.6% 66.6% 63.1% 54.8%
Employees 105 104 102 98 94
Loans in Atlanta MSA 77.5% 78.2% 79.1% 80.5% 77.8%