Southeastern Banking Corporation Reports First Quarter 2024 Results
Declares Quarterly Cash Dividend of $0.19 Per Share
Darien, GA — May 16, 2024 – Southeastern Banking Corporation (OTCPINK:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for the first quarter of 2024. Financial highlights are shown below.
Additionally, the Board of Directors declared a quarterly dividend of $0.19 per share, to be paid June 6, 2024, to shareholders of record on May 30, 2024.
The 2024 Annual Shareholders’ Meeting was held on May 16, 2024. With 76.8% of outstanding shares voting, all proposals presented in the Proxy Statement were approved as recommended by the Board.
Commenting on the Company’s results, Donald “Jay” Torbert, Jr., President and Chief Executive Officer, said, “Our start to 2024 was slightly better than anticipated due to solid loan growth, and core operating earnings has been remarkably steady over the last year. However, we expect more pressure on earnings in the coming quarters from higher funding costs and operating expenses caused by elevated interest rates and inflation.”
Earnings
- Net income was $2.8 million (or $0.90 per share) for the first quarter of 2024, compared to $2.8 million (or $0.89 per share) for the fourth quarter of 2023 and $3.0 million (or $0.96 per share) for the first quarter of 2023. Loan growth coupled with continued upward repricing of earning assets resulted in increased net interest income, which was offset during the quarter by provision for credit loss and increased noninterest expenses (excluding the loss on sale of securities in the fourth quarter of 2023).
- Core operating earnings for the first quarter totaled $3.7 million compared to $3.6 million for the fourth quarter of 2023 and $3.7 million for the first quarter of 2023.
- The return on average assets for the first quarter of 2024 was 1.91%, compared to 1.90% for the fourth quarter of 2023 and 1.91% for the first quarter of 2023.
- The return on average equity was 16.19% versus 17.43% for the fourth quarter of 2023 and 19.84% for the first quarter of 2023. The lower comparative return is the result of increasing capital levels as earnings have remained relatively stable.
- Net interest margin was 4.74% in the first quarter versus 4.44% for the fourth quarter of 2023 and 4.26% in the first quarter of 2023. Margin during the quarter benefited from loan growth and accompanying fee generation, along with continued upward repricing of the loan portfolio.
Balance Sheet
- Total assets contracted 2.0%, or $12.3 million, during the first quarter to end at $605.2 million. The decline is attributed to net deposit outflows. Over the last twelve months, total assets declined 4.3%, or $27.4 million.
- Deposits waned by 2.5%, or $13.8 million, during the first quarter to end at $530.8 million. Year-over-year, deposits declined 6.1%, or $34.6 million. During the quarter, commercial demand deposits decreased $16.7 million and deposits held by local municipalities decreased $10.0 million, with the declines partially offset by increased reciprocal deposits.
- Loans, net of unearned income, increased by 3.3%, or $11.5 million, during the first quarter to end at $359.8 million. Year-over-year, loans outstanding increased 7.0%, or $23.6 million.
- Total loan production through commercial and retail lending activities was $42.9 million during the first quarter, up from $29.1 million in the fourth quarter of 2023 and the $30.5 million generated during the first quarter of 2023.
Capital
- Capital continues to exceed regulatory thresholds required to be considered “well-capitalized.”
- Consolidated Tier 1 leverage capital ratio was 13.46% at March 31, 2024, up 67bps during the quarter 225bps over the last twelve months.
- Book value per share was $22.51 at March 31, 2024, a $0.35 increase during the quarter.
Asset Quality
- Asset quality concerns remained relatively low and stable throughout the first quarter.
- Nonperforming assets were $1.3 million, or 0.21% of total assets, at March 31, 2024, which reflects a reduction during the first quarter and is in line with the level of nonperforming assets from one year ago.
- The allowance for credit losses related to loans aggregated $7.7 million, or 2.15% of total loans, at March 31, 2024, compared to $7.6 million, or 2.17% of total loans, at the end of 2023.
- Total provision for credit losses during the first quarter was $105 thousand, and based on loan growth during the quarter.
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