Southwest Georgia Financial Corp. (NYSE MKT:SGB) Q4 2018 Earnings Conference Call - Final Transcript

Jan 22, 2019 • 01:00 pm ET


Southwest Georgia Financial Corp. (NYSE MKT:SGB) Q4 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Southwest Georgia Financials Corporation Fourth Quarter and Full Year 2018 Financial Results. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Craig Mychajluk, Investor Relations for SGB. Thank you, Mr. Mychajluk. You may begin.

Craig Mychajluk

Yes. Thank you, and good afternoon, everyone. Certainly appreciate your time today, as well as your interest in Southwest Georgia Financial Corporation. Joining me on the call is DeWitt Drew, our President and CEO; and Karen Boyd, our Senior Vice President and Treasurer. We'll start with DeWitt's formal remarks on the fourth quarter and full year, and then we'll open up the call for Q&A.

You should have a copy of our financial results that we released this morning. And if not, you can find them on our website at As you are aware, we may make some forward-looking statements during the formal discussion, as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated on today's call. These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at

With that, I'd like to turn the call over to DeWitt to begin the discussion.

George DeWitt Drew

Thank you, Craig. Good afternoon, everyone, and thank you for being with us today. Over the last year, we continue to build out our infrastructure and invest in people in order to grow organically in the markets in which we currently operate. This translated into market share gains, as we expanded and deepened relationships with existing customers, added high quality new clients and further penetrate into the Tift County market, as our new full-service banking center in Tifton help cement our ability to be relationship bankers in that area.

These actions resulted in strong loan and deposit growth, and when combined with lower corporate tax rate generated record earnings in 2018. Specifically, we achieved full year net income of $4.7 million, up 23%. On a per diluted share basis, earnings were a $1.84, up $0.35. Even absent the impairment charge with deferred tax assets in last year's fourth quarter, earnings for the year would still have been up $0.18 or 11%. For the fourth quarter net income was $1.2 million or $0.46 per diluted share.

Core pre-tax income was up for both periods. Our core excludes gains and losses on the sale of securities or assets, gains from debt extinguishment, the charge from closing our mortgage banking subsidiary and changes to the provision for loan losses. For the year, core was up $735,000 an increase of 14%, the quarterly increase was $53,000 or 3.5%.