Southeastern Banking Corporation Reports Fourth Quarter and Record Full Year 2024 Results
Declares Quarterly Cash Dividend of $0.21 Per Share
Darien, GA — February 20, 2025 – Southeastern Banking Corporation (OTCPINK:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for the fourth quarter and full year of 2024. Financial highlights are shown below.
Additionally, the Board of Directors declared a quarterly dividend of $0.21 per share, to be paid March 13, 2025, to shareholders of record on March 6, 2025. This is a penny per share increase from the prior quarterly dividend and represents a 26% payout of fourth quarter earnings. As previously announced, a special dividend of $1.00 per share was declared and paid during December 2024.
Commenting on the Company’s results, Donald “Jay” Torbert, Jr., President and Chief Executive Officer, said, “2024 proved to be another exceptional year for the Bank. Our dedicated team delivered record earnings for a third consecutive year driven by strong loan production with very few asset quality concerns and a stable, core deposit customer base. The outlook for a positive operating environment remains given ongoing economic development and jobs growth in some of our communities. However, expectations for a fourth consecutive year of record earnings should be tempered by a continued rise in funding and operating costs.”
Earnings
- For the year ended December 31, 2024, we posted net income of $10.6 million, an increase of $45 thousand, or 0.4%, compared to 2023.
- Net income was $2.6 million (or $0.81 per share) for the fourth quarter of 2024, compared to $2.7 million (or $0.86 per share) for the third quarter of 2024 and $2.8 million (or $0.89 per share) for the fourth quarter of 2023. Net interest income was enhanced during the quarter by the payoff of a previously charged-off loan which resulted in recognition of $143 thousand in interest income. Noninterest income improved during the quarter largely due to an increase in mortgage origination volume. Noninterest expense, excluding losses, increased as compared to the fourth quarter of 2023 due largely to increases in salaries and benefits.
- Core operating earnings for the fourth quarter totaled $3.5 million compared to $3.5 million for the third quarter and $3.6 million for the fourth quarter of 2023. Core operating earnings for the year totaled $14.2 million, virtually unchanged from the 2023 level.
- Considering the aforementioned additional interest income, we liquidated a portion of our bond portfolio during the fourth quarter. A loss of $125 thousand was realized on sales of investment securities with a total book value of $4.1 million and tax equivalent yield of 3.02%, with funding alternatives providing for an estimated earn-back period of less than one year.
- The return on average assets for the fourth quarter of 2024 was 1.74%, compared to 1.84% for the third quarter and 1.90% for the fourth quarter of 2023. The return on average assets for the year was 1.80% compared to 1.75% for 2023.
- The return on average equity was 13.25% versus 14.30% for the third quarter and 17.43% for the fourth quarter of 2023. For the year, return on average equity was 14.45% compared to 16.69% for 2023. While earnings levels have remained consistent, capital levels increased.
- Our net interest margin was 4.70% in the fourth quarter, an increase compared to 4.66% for the third quarter and 4.44% for the fourth quarter of 2023. Net interest margin for the year was 4.70%, an increase of 33bps from 2023.
Balance Sheet
- Total assets increased 1.6%, or $9.5 million, during the fourth quarter to end at $602.0 million. Net deposit inflows were partially offset by pay-downs of short-term borrowings. Over the last twelve months total assets declined by 2.5%, or $15.5 million.
- Deposits grew 3.4%, or $17.3 million, during the fourth quarter to end at $522.7 million. Year-over-year, deposits declined 4.0%, or $21.8 million. Deposits of governmental entities increased $18.3 million during the fourth quarter but declined $26.1 million year-over-year.
- Loans increased by 0.2%, or $610 thousand, during the fourth quarter to end at $386.1 million. Year-over-year, loans grew 10.8%, or $37.7 million.
- Total loan production through commercial and retail lending activities was $30.0 million during the fourth quarter, down from $36.7 million in the third quarter but up from $29.1 million during the fourth quarter of 2023. Total 2024 production of $156.3 million was 19.6% greater than 2023 annual production.
Capital
- Capital continues to exceed regulatory thresholds required to be considered “well-capitalized.”
- Consolidated Tier 1 leverage capital ratio was 14.00% at December 31, 2024, down 32bps during the quarter but up 121bps over the last twelve months.
- The Bank’s Tier 1 leverage capital ratio was 12.58% at December 31, 2024.
- Book value per share was $23.45 at December 31, 2024, a $1.29 increase over the last twelve months.
Asset Quality
- Asset quality remained stable throughout the fourth quarter.
- Nonperforming assets were $1.2 million, or 0.20% of total assets, at December 31, 2024, reflecting declines during both the fourth quarter and from one year ago.
- The allowance for credit losses related to loans aggregated $8.2 million, or 2.11% of total loans, at December 31, 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 fourth 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”, “should” 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