EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
SouthCrest Financial Group, Inc. Announces Third Quarter Earnings

FAYETTEVILLE, GA, (October 27, 2005) - SouthCrest Financial Group, Inc. (SCSG) reported net income of $1,513,000 for the quarter ended September 30, 2005 compared to $888,000 for the same quarter a year ago. For the nine month period ended September 30, 2005, net income was $3,690,000 compared to $2,685,000 for the same period in 2004. Most of the increase in net income for both the quarter and year to date compared to the prior year was the result of the Company’s merger with First Polk Bankshares, Inc. on September 30, 2004. Assets and liabilities, and results of operations for First Polk are only included in the balance sheets and income statements of the Company from the date of merger going forward. On a per share basis, results were $0.42 per share for the current quarter compared to $0.40 for the same period a year ago, and $1.03 per share for the current year-to-date period compared to $1.23 for the same period in 2004. Reductions in earnings per share are mostly due to dilution resulting from increased number of shares resulting from the merger with First Polk.

Return on average assets was 1.39% for the current quarter compared to 1.40% for the same period in 2004, and 1.17% for the current year-to-date period compared to 1.42% for the same period in 2005. Return on average equity was 11.28% for the quarter compared to 12.45% in 2004, and 9.43% and 13.13% for the year-to-date periods in 2005 and 2004, respectively. The Company’s net interest margins have improved, increasing to 4.43% for the third quarter of 2005 from 4.18% in the same period in 2004, and to 4.44% for the year to date 2005 from 4.17% for the same period in 2004. Current quarter results include recognized gains from sales of securities available for sale of $320,000, or $199,000 net of tax. This represents $0.056 per share. There were no such gains recorded in 2004.

Total assets at September 30, 2005 were $437.8 million compared to $406.3 million at September 30, 2004 and $407.5 million at December 31, 2004. The increase in total assets is primarily attributable to growth resulting from increased lending activity. Gross loans (excluding reserves for loan losses) totaled $263.5 million at September 30, 2005 compared to $232.3 million at September 30, 2004, and $229.2 million at December 31, 2004. Deposits were $370.0 million at September 30, 2005 compared to $349.8 million at September 30, 2004 and $352.3 million at December 31, 2004. At September 30, 2005, the allowance for loan losses was 1.28% of loans compared to 1.38% of loans at September 30, 2004 and 1.38% at December 31, 2004. Net chargeoffs were 0.17% and 0.18% of average loans for the nine months ended September 30, 2005 and 2004, respectively. At September 30, 2005, nonperforming assets were $1,278,000, or 0.29% of total assets, compared to $678,000, or 0.17% of total assets at September 30, 2004 and $562,000, or 0.14% of total assets at December 31, 2004.

In a press release dated October 3, 2005, the Company announced that it declared a dividend of $0.12 per share compared to $0.115 per share for the same period a year ago. The dividend will be paid on October 31, 2005 to shareholders of record as of October 17, 2005.

About SouthCrest Financial Group, Inc.

SouthCrest Financial Group, Inc. is the parent company of two bank subsidiaries operating a total of nine branch offices. Bank of Upson, based in Thomaston, Georgia, has two branches in Upson County, three branches in Meriwether County operating as Meriwether Bank & Trust, and one branch in Fayette County operating as SouthCrest Bank. First National Bank of Polk County, based in Cedartown, Georgia, operates three branches in Polk County. SouthCrest is traded on the OTC-Bulletin Board under the symbol “SCSG.”


Forward-Looking Statements

This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting SouthCrest’s operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced SouthCrest’s assumptions, but that are beyond SouthCrest’s control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environment and securities markets, (iv) adverse changes in the regulatory requirements affecting SouthCrest, (v) greater competitive pressures among financial institutions in SouthCrest’s markets and (vi) greater loan losses than historic levels. Additional information and other factors that could affect future financial results are included in SouthCrest’s filings with the Securities and Exchange Commission.

# # # 

Contact Information:

SouthCrest Financial Group, Inc.
Doug Hertha, CFO
770-461-2781


SouthCrest Financial Group, Inc.
  
Consolidated Financial Highlights
  
(Unaudited)
  
                           
   
Quarter Ended September 30
  
Nine Months Ended September 30
  
   
2005
  
2004
  
% Change
  
2005
  
2004
  
% Change
  
All dollars in thousands except per share data
                      
EARNINGS
                          
Net interest income
  
$
4,411
  
$
2,452
    
79.9
%   
$
12,872
  
$
7,298
    
76.4
%
Provision for loan losses
    
246
   
118
   
108.5
%
  
519
   
290
   
79.0
%
Noninterest income
    
1,580
   
771
   
104.9
%
  
3,329
   
2,229
   
49.3
%
Noninterest expense
    
3,517
   
1,793
   
96.2
%
  
10,331
   
5,381
   
92.0
%
Income taxes
    
715
   
424
   
68.6
%
  
1,661
   
1,171
   
41.8
%
Net income
    
1,513
   
888
   
70.4
%
  
3,690
   
2,685
   
37.4
%
                                       
PER SHARE INFORMATION
                                      
Earnings per share
  
$
0.42
  
$
0.40
    
4.8
%
$
1.03
  
$
1.23
    
-16.0
%
Dividends per share
    
0.120
   
0.115
   
4.3
%
  
0.360
   
0.345
   
4.3
%
Book value per share
    
15.03
   
14.21
   
5.8
%
  
15.03
   
14.21
   
5.8
%
                                       
OPERATING RATIOS (1)
                                      
Net interest margin
    
4.43
%
  
4.18
%
        
4.44
%
  
4.17
%
      
Return on average assets
    
1.39
%
  
1.40
%
        
1.17
%
  
1.42
%
      
Return on average equity
    
11.28
%
  
12.45
%
        
9.43
%
  
13.13
%
      
Efficiency ratio
    
62.02
%
  
55.63
%
        
62.68
%
  
56.48
%
      
Net chargeoffs / average loans
    
0.20
%   
 
0.18
%   
       
0.17
%   
 
0.18
%   
     
                                       
AVERAGE BALANCES
                                      
Loans
  
$
255,713
  
$
131,423
    
94.6
%
$
240,804
  
$
130,521
    
84.5
%
Total earning assets
    
394,897
   
233,516
   
69.1
%
  
387,684
   
233,552
   
66.0
%
Total assets
    
431,392
   
251,627
   
71.4
%
  
422,452
   
252,191
   
67.5
%
Deposits
    
370,489
   
221,709
   
67.1
%
  
364,548
   
222,500
   
63.8
%
Shareholders' equity
    
53,210
   
28,385
   
87.5
%
  
52,319
   
27,321
   
91.5
%
                                       
 
  
As of September 30,
                        
END OF PERIOD BALANCES
    
2005
    
2004
                          
Loans
  
$
263,453
  
$
232,325
    
13.4
%
                  
Reserve for loan losses
    
3,373
   
3,204
   
5.3
%
                  
Total earning assets
    
403,510
   
372,351
   
8.4
%
                  
Intangible assets
    
7,119
   
8,221
   
-13.4
%
                  
Total assets
    
437,813
   
406,349
   
7.7
%
                  
Deposits
    
369,954
   
349,814
   
5.8
%
                  
Shareholders' equity
    
53,639
   
52,073
   
3.0
%
                  
                                       
ASSET QUALITY (END OF PERIOD)
                                      
Loans 90 days past due and still accruing
  
$
484
  
$
121
                          
Nonaccrual Loans
    
575
   
520
                         
Other Real Estate Owned
    
219
   
37
                         
Total nonperforming assets
    
1,278
   
678
                         
Nonperforming assets / total assets
    
0.29
%
  
0.17
%
                        
Allowance for loan losses / total loans
    
1.28
%
  
1.38
%
                        
                                       
(1) All ratios are annualized.