Southwest Georgia Financial Corporation (SGB) has reported a 13.54 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $0.97 million, or $0.38 a share in the quarter, compared with $0.86 million, or $0.33 a share for the same period last year.
Revenue during the quarter grew 10.84 percent to $5.01 million from $4.52 million in the previous year period. Net interest income for the quarter rose 12.12 percent over the prior year period to $4 million. Non-interest income for the quarter rose 5.16 percent over the last year period to $1.06 million.
Southwest Georgia Financial Corporation has made provision of $0.04 million for loan losses during the quarter, down 11.76 percent from $0.05 million in the same period last year.
Net interest margin improved 2 basis points to 4.12 percent in the quarter from 4.10 percent in the last year period. Efficiency ratio for the quarter improved to 70.96 percent from 72.27 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our performance was strong in the quarter as double-digit growth in loans and deposits drove a 13% increase in net income," commented DeWitt Drew, President and CEO. "We continue to achieve excellent results from our market expansion, which is making a significant contribution to our higher loan originations and healthy pipeline. In consideration of our increased earnings power, solid balance sheet, and excellent asset quality, the board recently increased the quarterly dividend by 10%, reflecting our long-time commitment to returning earnings to shareholders."
Liabilities outpace assets growth
Total assets stood at $443.03 million as on Sep. 30, 2016, up 12.95 percent compared with $392.22 million on Sep. 30, 2015. On the other hand, total liabilities stood at $403.94 million as on Sep. 30, 2016, up 13.56 percent from $355.72 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $284.13 million as on Sep. 30, 2016, up 20.44 percent compared with $235.91 million on Sep. 30, 2015. Deposits stood at $364.26 million as on Sep. 30, 2016, up 12.85 percent compared with $322.77 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $119.04 million or 32.68 percent of total deposits on Sep. 30, 2016, compared with $94.71 million or 29.34 percent of total deposits on Sep. 30, 2015.
Investments stood at $101.73 million as on Sep. 30, 2016, down 8.29 percent or $9.20 million from year-ago. Shareholders equity stood at $39.09 million as on Sep. 30, 2016, up 7.08 percent or $2.59 million from year-ago.
Return on assets moved up 2 basis points to 0.89 percent in the quarter from 0.87 percent in the last year period. At the same time, return on equity increased 47 basis points to 9.95 percent in the quarter from 9.48 percent in the last year period.
Nonperforming assets moved down 64.75 percent or $0.88 million to $0.48 million on Sep. 30, 2016 from $1.36 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.11 percent in the quarter, down from 0.35 percent in the last year period.
Tier-1 leverage ratio stood at 9.06 percent for the quarter, down from 9.29 percent for the previous year quarter. Average equity to average assets ratio was 8.97 percent for the quarter, down from 9.17 percent for the previous year quarter. Book value per share was $15.34 for the quarter, up 7.05 percent or $1.01 compared to $14.33 for the same period last year.
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