Southeastern Banking Corporation Reports Third Quarter 2024 Results - Declares Quarterly Cash Dividend of $0.20 Per Share

Southeastern Banking Corporation Reports Third Quarter 2024 Results

Declares Quarterly Cash Dividend of $0.20 Per Share

Darien, GA — November 21, 2024 – Southeastern Banking Corporation (OTCPINK:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for the third quarter and first nine months of 2024. Financial highlights are shown below.

Additionally, the Board of Directors declared a quarterly dividend of $0.20 per share, to be paid December 12, 2024, to shareholders of record on December 5, 2024.  This is a penny per share increase from the prior quarters in 2024 and represents a 23% payout of third quarter earnings.

Commenting on the Company’s results, Donald “Jay” Torbert, Jr., President and Chief Executive Officer, said, “We are pleased to report another solid quarterly earnings performance.  These results were driven by strong loan production and a stable, core deposit base. Continued economic development and jobs growth in some of our communities have also helped to create a more favorable operating environment for the Bank. However, ongoing inflationary pressures and the interest rate environment have somewhat tempered our results. Accordingly, we expect to see continued compression of our net interest margin and rising operating costs in the coming quarters.”

Earnings

• Net income was $2.7 million (or $0.86 per share) for the third quarter of 2024, compared to $2.5 million (or $0.80 per share) for the second quarter of 2024 and $2.1 million (or $0.65 per share) for the third quarter of 2023. Continued loan growth during the quarter along with upward repricing of earning assets led to increased interest income, which was partially offset by higher funding costs. Noninterest income declined during the quarter primarily due to a decline in mortgage origination volume. Noninterest expense declined as compared to the third quarter of 2023 due to nonrecurring system migration costs of $745 thousand incurred during the prior year.
• Core operating earnings for the third quarter totaled $3.5 million compared to $3.5 million for the second quarter and $3.3 million for the third quarter of 2023.
• To reduce our need for higher-rate noncore funding, we liquidated a portion of our bond portfolio. A loss of $30 thousand was realized on sales of investment securities during the third quarter. Investment securities sold had a total book value of $18.5 million and tax equivalent yield of 4.78%, with funding alternatives providing for an estimated earn-back period on the loss of only 92 days.
• The return on average assets for the third quarter of 2024 was 1.84%, compared to 1.73% for the second quarter and 1.39% for the third quarter of 2023.
• The return on average equity was 14.30% versus 14.19% for the second quarter and 12.74% for the third quarter of 2023.
• Our net interest margin was 4.66% in the third quarter down slightly compared to 4.69% for the second quarter but up from 4.38% in the third quarter of 2023.

Balance Sheet

• Total assets decreased 0.4%, or $2.6 million, during the third quarter to end at $592.5 million. Net deposit inflows were offset by pay-downs of short-term borrowings. Over the last twelve months total assets were virtually unchanged, declining $120 thousand.
• Deposits grew 0.9%, or $4.6 million, during the third quarter to end at $505.5 million. Year-over-year, deposits declined 4.1%, or $21.6 million.
• Loans increased by 1.7%, or $6.6 million, during the third quarter to end at $385.5 million. Year-over-year, loans grew 14.0%, or $47.2 million.
• Total loan production through commercial and retail lending activities was $36.7 million during the third quarter, down from $46.6 million in the second quarter but up from $32.5 million during the third quarter of 2023.

Capital

• Capital continues to exceed regulatory thresholds required to be considered “well-capitalized.”
• Consolidated Tier 1 leverage capital ratio was 14.32% at September 30, 2024, up 35bps during the quarter and 149bps over the last twelve months.
• The Bank’s Tier 1 leverage capital ratio was 12.47% at September 30, 2024.
• Book value per share was $24.84 at September 30, 2024, a $1.60 increase during the quarter.

Asset Quality

• Asset quality concerns remained relatively low and stable throughout the third quarter.
• Nonperforming assets were $1.4 million, or 0.23% of total assets, at September 30, 2024, which reflects only slight increases during both the third quarter and from one year ago.
• The allowance for credit losses related to loans aggregated $8.2 million, or 2.12% of total loans, at September 30, 2024, compared to $7.6 million, or 2.17% of total loans, at the end of 2023.
• Due to net recoveries, additional provision for credit losses was not required during the third quarter, but totaled $342 thousand for the year-to-date as a result of loan growth.

About Southeastern Banking Corporation

Southeastern Banking Corporation is the bank holding company for Southeastern Bank. Established in 1888, Southeastern Bank has a long history of serving its customers and communities through its 10 branch locations in coastal Georgia and northeast Florida, including Brunswick, Callahan (FL), Darien, Eulonia, Folkston, Hilliard (FL), Kingsland, Nahunta, Richmond Hill and St. Simons Island.  In addition to these full service branches, the Bank has a loan production office in Hinesville, Georgia. The Bank is headquartered in Darien, Georgia.

Southeastern Banking Corporation’s common stock is traded on the OTC Markets PINK under the symbol “SEBC.”

For more information, please visit www.southeasternbank.com.

Forward-Looking Statements

Certain statements contained in this release may not be based on historical facts and are forward-looking statements. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, as actual results could differ materially from those indicated in such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measure entitled core operating earnings is not a measure recognized under U.S. generally accepted accounting principles (GAAP) and therefore is considered to be a non-GAAP financial measure. The most comparable GAAP measure is net income before taxes. Core operating earnings exclude select revenues and expenditures not considered core to the Company’s daily operations.  

Management uses this non-GAAP financial measure in its analysis of the Company's performance and believes these presentations provide useful supplemental information and a clearer understanding of the Company's operating performance. These disclosures should not be considered an alternative to GAAP. The computations of core operating earnings are set forth in the Quarterly Financial Highlights table.

CONTACT:        

Robert M. Eidson, Jr.

Treasurer

912-437-4141

robbie.eidson@southeasternbank.com