Southeastern Banking Corporation Reports First Quarter 2025 Results
Declares Quarterly Cash Dividend of $0.21 Per Share
Darien, GA — May 15, 2025 – Southeastern Banking Corporation (OTCPINK:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for the first quarter of 2025. Financial highlights are shown below.
Additionally, the Board of Directors declared a quarterly dividend of $0.21 per share, to be paid June 5, 2025, to shareholders of record on May 29, 2025.
Commenting on the Company’s results, Donald “Jay” Torbert, Jr., President and Chief Executive Officer, said, “We are pleased with the start to 2025. Although earnings were slightly lower than 2024, our performance for the first quarter is consistent with our expectations. We remain positive with our outlook for the coming quarters given continued economic development and jobs growth in our communities. However, like most, we are concerned with recent market volatility and the potential immediate and longer-term implications of this evolving operating environment on interest rates and inflation.”
Earnings
· Net income was $2.5 million (or $0.79 per share) for the first quarter of 2025, compared to $2.6 million (or $0.81 per share) for the fourth quarter of 2024 and $2.8 million (or $0.90 per share) for the first quarter of 2024. Net interest income declined slightly from previous quarters as funding costs increased. Provision for credit loss in the first quarter of 2025 was $40 thousand, with net recoveries of $96 thousand also building credit reserves in response to continued loan growth. Noninterest income was down slightly due primarily to a lack of mortgage activity while noninterest expense levels have remained stable.
· Core operating earnings for the first quarter totaled $3.3 million compared to $3.5 million for the fourth quarter of 2024 and $3.7 million for the first quarter of 2024.
· The return on average assets for the first quarter of 2025 was 1.71%, compared to 1.74% for the fourth quarter of 2024 and 1.91% for the first quarter of 2024.
· The return on average equity was 13.34% versus 13.25% for the fourth quarter of 2024 and 16.19% for the first quarter of 2024.
· Our net interest margin was 4.61% in the first quarter, a decline compared to 4.70% for the fourth quarter of 2024 and 4.74% for the first quarter of 2024 due to an increase in our cost of funds.
Balance Sheet
· Total assets increased 0.6%, or $3.3 million, during the first quarter to end at $605.3 million. Quarterly balance sheet expansion was driven by capital growth as deposits saw modest net inflows.
· Deposits grew 0.1%, or $246 thousand, during the first quarter to end at $523.0 million. Though total deposits were relatively unchanged during the quarter, we were able to reduce usage of reciprocal deposits by $10.7 million.
· Loans increased by 2.9%, or $11.2 million, during the first quarter to end at $397.2 million.
· Total loan production through commercial and retail lending activities was $40.8 million during the first quarter, down from $43.0 million in the first quarter of 2024. We are seeing some softness in commercial loan demand that could be attributed to recent market volatility. It is yet to be determined if demand rebounds or remains slow in the coming quarters.
Capital
· Capital continues to exceed regulatory thresholds required to be considered “well-capitalized.”
· Consolidated Tier 1 leverage capital ratio was 14.16% at March 31, 2025, up 16bps during the quarter and 70bps over the last twelve months.
· Book value per share was $24.54 at March 31, 2025, a $1.09 increase during the quarter.
Asset Quality
· Asset quality metrics improved during the first quarter.
· Nonperforming assets were $1.0 million, or 0.16% of total assets, at March 31, 2025, reaching the lowest level in recent quarters.
· The allowance for credit losses related to loans aggregated $8.3 million, or 2.09% of total loans, at March 31, 2025, compared to $8.2 million, or 2.11% of total loans, at the end of 2024.
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,” “outlook,” “may,” “might,” “will,” “would,” “could,” “should,” “potential” 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