Southeastern Bank Financial, the holding company for Georgia Bank & Trust Company of Augusta, today reported record quarterly net income of $4.4 million for the three months ended Sept. 30, 2014, or $0.65 in diluted earnings per share, compared to $4.2 million, or $0.63 in diluted earnings per share, in the third quarter of 2013.

"We are pleased to report record earnings for the quarter driven by growth in loans, deposits and noninterest income," said President and Chief Operating Officer Ronald L. Thigpen. "Our performance continues to be very consistent from quarter to quarter. We, as well as the rest of the industry, continue to be challenged by the current low interest rateenvironment and its impact on the net interest margin. Our return on assets of 0.99 percent and return on equity of 11.74 percent continue to reflect excellent performance for a bank our size."

Total assets at Sept. 30, 2014, were $1.8 billion, an increase of $63.4 million from Dec. 31, 2013. Loans outstanding at the end of the third quarter were $978.6 million, an increase of $62.3 million or 6.8 percent from Dec. 31, 2013, and an increase of $78.1 million from Sept. 30, 2013. Total deposits were $1.5 billion at Sept. 30, 2014, an increase of $45.1 million from Dec. 31, 2013, and an increase of $58.3 million from Sept. 30, 2013. Cash and cash equivalents totaled $45.0 million at the end of the third quarter of 2014.

Net interest income for the third quarter of 2014 totaled $13.1 million, a slight decrease from $13.2 million for the same period in 2013. Noninterest income for the third quarter totaled $5.2 million, a 7.3 percent increase from $4.9 million for the same period a year ago. Noninterest expense was $11.1 million in the third quarter of 2014, an 8.2 percent increase from a year ago, as a result of increased salary and benefit costs.

The net interest margin was 3.16 percent for the quarter-ended Sept. 30, 2014, compared to 3.18 percent at the end of the second quarter of 2014, and 3.31 percent for the same quarter a year ago.  Annualized return on average assets (ROA) was 0.99 percent for the third quarter of 2014, maintaining the level from the same period a year ago, and annualized return on average shareholder's equity (ROE) was 11.74 percent, a decrease from 12.84 percent in the third quarter of 2013.

Nonperforming assets at Sept. 30, 2014, were 1.09 percent of total assets, compared to 1.58 percent at Dec. 31, 2013, 1.28 percent at June 30, 2014 and 1.78 percent at Sept. 30, 2013.  Net charge-offs for the third quarter of 2014 totaled 0.43 percent of average loans on an annualized basis, compared to 0.68 percent annualized at Dec. 31, 2013, 0.18 percent annualized in the second quarter of 2014 and 1.17 percent annualized in the third quarter of 2013.  The company held $1.4 million in OREO at Sept. 30, 2014, compared to $1.0 million at Dec. 31, 2013, $1.5 million at June 30, 2014 and $1.2 million at Sept. 30, 2013.

The company's loan-loss provision expense was $876 thousand in the third quarter of 2014, compared to $1.0 million in the second quarter of 2014 and $1.9 million in the third quarter a year ago.  The loan-loss provision for the first nine months of 2014 was $2.9 million, a 51.3 percent decrease from the loan-loss provision of $6.0 million for the same period in 2013.  The allowance for loan losses at Sept. 30, 2014, was $26.7 million, or 2.79 percent of loans outstanding, compared to $26.9 million, or 2.80 percent of loans outstanding, at June 30, 2014, and $26.6 million, or 2.99 percent of loans outstanding, at Sept. 30, 2013.

Net income for the nine months ended Sept. 30, 2014, totaled $12.2 million, compared to net income of $12.0 million from the same period of 2013.  Diluted earnings per share for the first nine months of 2014 were $1.83, a 2.2 percent increase from $1.79 per share earned in the same period a year ago.

Net interest income for the first nine months of 2014 was $38.7 million, a 2.7 percent decrease from $39.7 million in the first nine months of 2013.  Noninterest income was $13.8 million for the first nine months of 2014, a 7.2 percent decrease from $14.9 million in the same period of 2013. Noninterest expense was $31.8 million for the nine-month period ended Sept. 30, 2014, a 1.7 percent increase from $31.3 million in the same period in 2013.

"We are optimistic about growth opportunities in the local economy.  With our excellent and steady profitability, we will continue to focus on increases in loan growth and noninterest income," said Thigpen.

On October 15, 2014, the company's Board of Directors declared a regular quarterly cash dividend of $0.13 per share of common stock payable on November 21, 2014, to shareholders of record as of November 7, 2014.  Based on the share price of $25.75 at the close of business on Thursday, October 30, 2014, this dividend represents an annualized yield to shareholders of 2.02 percent.

Also, On October 15, 2014, the company's Board of Directors announced a Stock Repurchase Program, pursuant to which it will, from time to time, repurchase up to 300,000 shares of its outstanding common stock in the open market or in private transactions. This program replaces the company's prior Stock Repurchase Program which commenced in 2004 and authorized the repurchase of up to 100,000 shares of common stock.