Southeastern Banking Corporation Reports Second Quarter 2026 Results
Increases Quarterly Cash Dividend to $0.24 Per Share
Darien, GA — August 20, 2026 – Southeastern Banking Corporation (OTCID:SEBC), the “Company”, the parent of Southeastern Bank, the “Bank”, today reported financial results for the second quarter and first half of 2026. Financial highlights are shown below.
The Board of Directors declared a quarterly dividend of $0.24 per share, to be paid September 10, 2026, to shareholders of record on September 3, 2026. This is a one cent increase in the quarterly dividend rate compared to the prior quarter and a three cent increase compared to the third quarter of 2025.
“We are pleased to report on another strong quarterly performance from our Bank. Earnings for the quarter and first half of 2026 remain ahead of prior year’s results. Our ability to sustain earnings at these levels has enabled us to increase our quarterly dividend payout for the third time over the last year,” stated Donald “Jay” Torbert, Jr., President and Chief Executive Officer. “Additionally, we opened a new, full-service branch in Hinesville at the end of the quarter and are excited about the opportunities for the Bank in that market.”
Earnings
- Net income was $2.63 million (or $0.82 per share) for the second quarter of 2026, compared to $2.73 million (or $0.86 per share) for the first quarter and $2.44 million (or $0.77 per share) for the second quarter of 2025.
- Net interest income increased $255 thousand (or 3.6%) from the previous quarter and $503 thousand (or 7.4%) from the second quarter of 2025 due to steady loan growth, stable loan pricing and slightly lower funding costs.
- Noninterest income increased $28 thousand (or 3.2%) compared to the previous quarter and $6 thousand (or 0.7%) over the second quarter of 2025.
- Noninterest expense (exclusive of a net loss on disposition of assets) increased $378 thousand (or 8.9%) compared to the first quarter and $246 thousand (or 5.6%) from the second quarter of 2025 largely due to continued investments in our team, systems, equipment and facilities. Over the last year, we hired personnel to staff a newly constructed branch and our management trainee program. We also replaced or upgraded our ATMs, teller cash recyclers and network servers.
- For the first half of 2026, net income totaled $5.36 million (or $1.68 per share), an 8.0% increase compared to $4.96 million (or $1.56 per share) for the first six months of 2025.
- Core operating earnings for the second quarter totaled $3.73 million, an increase compared to $3.68 million for the first quarter and $3.41 million for the second quarter of 2025. Year-to-date, core operating earnings were $7.41 million, up 10.1% compared to $6.73 million a year ago.
- Our net interest margin was 4.96% in the second quarter, marking continued improvement compared to 4.87% for the first quarter and 4.73% for the second quarter of 2025. Year-to-date, our net interest margin was 4.92%, 25 basis points higher versus 4.67% a year ago.
- The return on average assets for the second quarter was 1.71%, compared to 1.81% for the first quarter and 1.64% for the second quarter of 2025. Year-to-date, our return on average assets was 1.76%, up compared to 1.67% a year ago.
- The return on average equity was 11.86% for the second quarter, versus 12.65% for the first quarter and 12.36% for the second quarter of 2025 as capital levels continued to build. Year-to-date, our return on average equity was 12.25%, down compared to 12.84% for the same period in 2025.
Balance Sheet
- Total assets increased $4.6 million (or 0.7%) during the second quarter to end at $626.7 million and $16.7 million (or 2.7%) over the last twelve months.
- Deposits increased $2.7 million (or 0.5%) during the second quarter to end at $533.6 million and $9.2 million (or 1.8%) over the last twelve months.
- Loans increased $12.2 million (or 2.9%) during the second quarter to end at $431.7 million and $25.8 million (or 6.3%) over the last twelve months.
- Total loan production through commercial and retail lending activities was $46.9 million during the second quarter, up compared to $34.0 million during the first quarter and $37.1 million for the second quarter of 2025.
Capital
- Capital continues to exceed regulatory thresholds required for the Bank to be considered “well-capitalized.”
- The Bank’s leverage capital ratio was 13.42% at June 30, 2026, up 48 basis points over the last twelve months.
- Consolidated Tier 1 leverage capital ratio was 15.34% at June 30, 2026, up 82 basis points over the last twelve months.
- Book value per share was $27.99 as of June 30, 2026, a $2.69 increase over the past year.
Asset Quality
- Asset quality metrics remain low and manageable.
- Nonperforming assets were $1.76 million (or 0.28% of total assets) at June 30, 2026, compared to $1.21 million (or 0.20%) twelve months prior.
- The allowance for credit losses related to loans aggregated $9.41 million (or 2.18% of total loans), at June 30, 2026, compared to $8.38 million (or 2.06% of total loans) twelve months prior. We have continued to build reserves in response to loan growth and overall economic uncertainty.
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 11 branch locations in coastal Georgia and northeast Florida, including Brunswick, Callahan (FL), Darien, Eulonia, Folkston, Hilliard (FL), Hinesville, Kingsland, Nahunta, Richmond Hill and St. Simons Island. 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