Southeastern Banking Corporation Reports Second Quarter 2025 Results
Declares Quarterly Cash Dividend of $0.21 Per Share
Darien, GA — August 21, 2025 – Southeastern Banking Corporation (OTCID:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for and through the second 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 September 11, 2025, to shareholders of record on September 4, 2025.
Commenting on the Company’s results, Donald “Jay” Torbert, Jr., President and Chief Executive Officer, said, “Overall, we are pleased with the results for the second quarter and first half of 2025. Although earnings are lower than our record earnings in 2024, our performance remains consistent with expectations for the year. We have grown revenues to absorb much of the rising funding and operating costs. Operating conditions have remained favorable, but this morning’s announcement of International Paper’s decision to close their Riceboro and Savannah plants gives us cause for concern.”
Earnings
- Net income was $2.44 million (or $0.77 per share) for the second quarter of 2025, down slightly compared to $2.52 million (or $0.79 per share) for the first quarter of 2025 and $2.52 million (or $0.80 per share) for the second quarter of 2024. Net interest income increased 3.4% from the previous quarter due to continued loan growth and stable funding costs. Provision for credit losses in the second quarter of 2025 increased to $120 thousand from $40 thousand in the first quarter in response to continued loan growth. The second quarter also saw a 7.1% increase in non-interest expense driven by rising personnel and occupancy costs.
- Core operating earnings for the second quarter totaled $3.41 million compared to $3.32 million for the first quarter of 2025 and $3.50 million for the second quarter of 2024.
- Our net interest margin was 4.73% in the second quarter, an increase from 4.61% for the first quarter of 2025 and 4.69% for the second quarter of 2024.
- The return on average assets for the second quarter of 2025 was 1.64%, compared to 1.71% for the first quarter of 2025 and 1.73% for the second quarter of 2024.
- The return on average equity was 12.36% versus 13.34% for the first quarter of 2025 and 14.19% for the second quarter of 2024. Capital levels continued to rise while earnings remained fairly constant.
- Year to date, net income was $4.96 million (or $1.56 per share), down 7.0% from $5.34 million (or $1.69 per share) for the first half of 2024.
Balance Sheet
- Total assets increased $14.9 million (or 2.5%) year-over-year to end the quarter at $610.0 million.
- Deposits grew $23.6 million (or 4.7%) year-over-year to end at $524.4 million. Growing deposits and overall banking relationships continue to be a key focus for us.
- Loans increased $27.1 million (or 7.2%) year-over-year to end at $406.0 million.
- Total loan production through commercial and retail lending activities was $37.1 million during the second quarter, down from $46.6 million in the second quarter of 2024 as we have seen a noticeable pause in loan activity and demand in recent months.
Capital
- Capital continues to exceed regulatory thresholds required to be considered “well-capitalized.”
- Consolidated Tier 1 leverage capital ratio was 14.52% at June 30, 2025, up 36bps during the quarter and 55bps over the last twelve months.
- Book value per share was $25.30 as of June 30, 2025, a $2.06 increase over the past year.
Asset Quality
- Asset quality metrics remain stable, with minimal change over the last year.
- Nonperforming assets were $1.21 million (or 0.20% of total assets) at June 30, 2025, up slightly from $1.16 million (or 0.19%) twelve months prior.
- The allowance for credit losses related to loans aggregated $8.38 million (or 2.06% of total loans), at June 30, 2025, compared to $7.95 million (or 2.10% of total loans) at June 30, 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 OTCID Market 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