MOULTRIE, Ga. — Southwest Georgia Financial Corporation, a full-service community bank holding company, this week reported results of operations for the second quarter ended June 30, 2019. Comparisons are with the prior-year period unless otherwise noted.

“The strategic investments made to organically grow our franchise are paying off. Loans grew 12% year-over-year with contributions coming from each of our markets. Our loan growth was funded by 13% deposit growth, which included a meaningful amount of noninterest-bearing transaction accounts. We believe continued disruptions in the banking industry will eventually create additional deposit opportunities for SGB,” commented DeWitt Drew, President and CEO.

“We are seeing an extraordinary amount of pricing pressure on both sides of the balance sheet; however, we are encouraged by the continuous growth and true expansion of our net interest margin, which we believe is a direct result of our community and customer centric focus,” Drew said.

Income Highlights

• Net income increased 13% to $1.3 million, or $0.51 per diluted share, from $1.15 million, or $0.45 per diluted share.

• Net interest income was up $485 thousand to $5.05 million, due to increased interest and fees on loans of $856 thousand, partially offset by higher costs on interest bearing deposits of $493 thousand. Net interest margin expanded 10 basis points to 4.06%. The provision for loan losses was up $110 thousand to $250 thousand, due to continued loan growth.

• Noninterest income increased $247 thousand, primarily due to a $244 thousand net gain from the sale of fixed assets. Core noninterest income was up slightly as insurance services growth of 9% offset declines in other business lines.

• Higher net interest income and noninterest income was partially offset by continued investments to drive growth. Noninterest expense was up $418 thousand, or 10%. The largest component of the increase was within salary and employee benefits, which was up $196 thousand.

Balance Sheet Trends

• Total assets at June 30, 2019 were $552.5 million, up 9% or $44.3 million. Total loans grew more than 12%, or $42.4 million, to $388.3 million, while continuing to maintain high standards of credit quality. Net charge-offs to average loans were 0.16%.

• Total deposits were up nearly 13%, or $52.2 million, to $467.6 million at quarter-end. Federal Home Loan Bank Advances were down $13.3 million, due to strong deposit growth. The average cost of all interest bearing liabilities increased 32 basis points to 1.16%.

Capital Management

• Book value per share grew 12% to $18.48 at June 30, 2019.

• In June 2019, the Company paid a quarterly cash dividend of $0.12 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 91 consecutive years.