Signature Bank of Georgia reports second quarter 2022 results
Second quarter YTD earnings up 11.2%
Results reflect strong loan growth and expanded NIM given higher rates and strong deposit base
Fee income generated from SBA originations continue to grow
Capital, liquidity, and credit quality remain strong
Bank launched a new branding logo
Sandy Springs, GA., August 2, 2022 – Signature Bank of Georgia (“SBGA”) (OTCPK: SGBG) is pleased to report results for the quarter and YTD ending June 30, 2022. Unaudited net income for the second quarter ending June 30, 2022, was $425M compared to a profit of $465M for the second quarter of the prior year. The YTD second quarter net income was $653M compared to the prior year of $1,027M. Included in prior results was a one-time gain from the sale of the Bank’s PPP loan portfolio of $440M. Factoring out the gain, YTD net income was up $66M or 11.2% over period.
Freddie Deutsch, President and Chief Executive Officer of Signature Bank of Georgia stated, “We were satisfied with our second quarter financial performance. The Bank posted solid loan growth during the quarter as net loans increased $15,828M or 14.7% compared to the second quarter of the prior year. The Bank’s quarter-to date net interest margin improved .95 bps for the second quarter of 2022, compared to the quarter-to-date net interest margin for the second quarter 2021. The year-to-date net interest margin as of June 30,2022 increased .70 bps over the same period last year. The Bank’s net interest margin should continue to improve as a result of the Fed’s current stance on interest rates in order to contain runaway inflation.
Total assets as of June 30, 2022, were $187.3 million, compared to total assets of $211.1 million as of December 31, 2021, and $194.2 million as of June 30, 2021. Total loans, net of reserves, were $122.9 million and deposits were $164.5 million as of June 30, 2022, compared to net loan balances of $107.1 million, and deposits of $169.5 million, as of June 30, 2021. The Bank’s loan pipeline remains strong despite the higher costs of borrowing for clients, resulting from the unprecedented increases in interest rates by the Fed. The Bank continued to make strategic investments (e.g., people) during the second quarter 2022. The areas of investment included Credit Underwriting Support, Portfolio Management and Business Development. “The Bank’s asset quality remains solid as indicated by no past due loans at quarter-end, Deutsch noted.”
Lawanna Saxon, Director of Marketing and Client Experience noted, ” A significant visual change was initiated in second quarter with the rebranding of Signature Bank of Georgia. The logo had not changed since inception in 2005 and a collaborative effort has produced a totally new, innovative looking logo and color scheme. The initial rollout includes updating our website, client materials and various internal channels along with a phased signage update scheduled throughout the remainder of the year. Our new logo makes a strong, first impression. As a technologically advanced community bank, the logo needed to reflect our eager embrace of change and the evolution that is required to exceed the service needs of our clients. We believe this new look clearly communicates that position.”
Looking ahead, a great deal of volatility in the economy and the on-going international hostilities continue. Debate continues as to whether the economy is in an actual recession given the low unemployment rates. The Fed’s have increased interest rates since the beginning of the year by 200 bps as they attempt to tap down runaway inflation. The current crisis between Russia and Ukraine remains uncertain as well. Deutsch noted, “I believe the Bank is poised to successfully navigate the challenges which lie ahead as we have remained disciplined in our risk management practices.”
Established in 2005, Signature Bank of Georgia is the only locally owned and operated community bank headquartered within Sandy Springs, Georgia, one of the most affluent communities in the country. The bank offers a full range of business and consumer deposit and treasury management products, and loans in the metropolitan Atlanta area and is a preferred lender with the Small Business Administration. Giving back to the community is an integral part of the bank’s mission. Signature Bank of Georgia is located at 6065 Roswell Road, between Hammond and Hilderbrand Drives. For more information, visit the bank’s websites at signaturebankga.com or sbaloansatlanta.com. Signature Bank of Georgia is not affiliated with Signature Bank of New York.
|Metric -YTD / 000’s||Q2 2022||Q1 2022||Q4 2021||Q3 2021||Q2 2021|
|Net Interest Margin||3.38%||3.06%||2.95%||2.84%||2.68%|
|Net Loans and Leases||$122,970||$108,495||$111,132||$111,605||$107,142|
|Total Loans & Leases||$123,923||$109,448||$112,086||$112,557||$108,095|
|Assets per Employee||$8,517||$8,697||$10,057||$9,174||$8,829|
|Revenue per Employee||$360||$317||$354||$361||$384|
|Leverage Ratio (Core Capital)||10.91%||10.09%||9.56%||10.23%||10.23%|
|Tier 1 Risk-Based Capital Ratio||15.40%||16.42%||15.87%||15.97%||16.44%|
|Loss Allowance to Gross Loans||0.77%||0.87%||0.85%||0.85%||0.88%|
|Total – Past Due 30-89 Days||$0||$0||$0||$0||$0|