Southwest Georgia Financial (SGB) Reports Q1 EPS of $0.48

Southwest Georgia Financial (NYSE: SGB) reported Q1 EPS of $0.48, versus $0.48 reported last year.

“Our customer-centric approach continues to drive solid results with income before taxes up nearly 20%, or $241 thousand, despite the impact of higher funding costs and investments made in a tight labor market,” commented DeWitt Drew, President and CEO. “While the deposit mix has evolved and deposit costs continue to increase, we have been successful in capitalizing on the right opportunities. Total deposits increased $35 million in the quarter, with more than two-thirds from business customers, and importantly, half of that growth was in noninterest bearing transaction accounts. Over the coming quarters, we will continue to focus on deposit pricing and mix, while also repricing balloon loans at higher rates. We are cautious in our considerations, lending is slowing in our markets, the labor market is tightening, and customers are moving money into higher yielding accounts.”

Income Highlights

• Net income of $1.23 million, or $0.48 per diluted share, was unchanged from the prior-year period. Income before taxes, however, was up $241 thousand as the prior year was positively impacted by an adjustment to estimated tax accruals.
• Net interest income increased $319 thousand to $4.77 million, due to increased interest and fees on loans of $828 thousand, partially offset by higher costs on interest bearing deposits of $678 thousand. The provision for loan losses decreased $99 thousand to $116 thousand.
• Noninterest income increased $243 thousand, due to higher revenue from insurance services, retail brokerage services, and swipe fees from debit cards, and a $143 thousand net gain from the early retirement of debt.
• Higher net interest income and noninterest income was partially offset by higher noninterest expense. Salary and employee benefits were up $155 thousand, largely due to higher hourly wages of $132 thousand and making a number of strategic hires to support the Company’s growth.

For earnings history and earnings-related data on Southwest Georgia Financial (SGB) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Movano (MOVE) Misses Q2 EPS by 195c
• Evogene chairman to address dissident shareholders on results call