SouthPoint Bancshares Announces First Half 2020 Earnings
04 August 2020 - 8:00PM
Business Wire
SouthPoint Bancshares, Inc. (SOUB), the parent company of
SouthPoint Bank, announced a net income of $2,578,566, or $1.29 per
share, for the half year ended June 30, 2020, as compared to a net
income of $2,356,143, or $1.15 per share, for the half year ended
June 30, 2019. Pre-tax and pre-provision income was $3,908,404 as
of June 30, 2020 compared to $3,131,045 on June 30, 2019.
“We are above expectations given the COVID-19 disruption on our
operations at the bank and among our customer base,” said Steve
Smith, Chairman, President and CEO.
Total assets in June 2020 grew to $535.3 million from $395.7
million in June 2019. Much of this growth is attributed to the
bank’s participation in the Small Business Administration’s Payroll
Protection Program. SouthPoint Bank funded 624 PPP loans for a
total volume of $72 million.
“We had great success with the PPP program helping numerous
SouthPoint and non-SouthPoint customers in their great time of
need,” Smith said. “These loans are on our balance sheet today, and
we anticipate that the majority of these loans will be forgiven or
paid off by year end 2020, although some could continue up to the
24-month term. At year end our balance sheet should reduce back to
a normal growth rate when most of these loans are paid.”
Declining interest rates during the first half of the year
boasted home mortgage production. The mortgage division increased
net income from $503,000 to $1,470,000 from first half 2019 to
first half 2020, an increase of 192 percent.
“When this bank started in 2005, we also created a mortgage
origination for sale business,” Smith said. “Today, this business
has been built over time with a staff of excellent mortgage
professionals. When rates decline rapidly they get a large bump in
business which helps offset the natural reduction on the bank’s
margin business. Our mortgage team has had an excellent first half
of the year and had a record setting second quarter.”
In light of the uncertainty of the Coronavirus pandemic and its
effect on the bank’s customers, the bank has increased loan loss
provision on a monthly basis from $20,000 in 2019 to $100,000 per
month. The bank will also use the fees earned on PPP loan
production as additions to loan loss reserves over time until the
loans are paid off.
“This has been an extremely busy year in banking with our
business as an essential part of the economy,” Smith said. “We have
helped a large number of business and individuals get through this
pandemic, and I am grateful for what our staff has
accomplished.”
The unaudited first half 2020 financials can be found on
SouthPoint Bank’s website at www.southpoint.bank/investors.
About SouthPoint Bancshares, Inc:
SouthPoint Bancshares, Inc. is the parent company of SouthPoint
Bank. SouthPoint was founded in 2005 in Birmingham, Alabama to
create a local community bank dedicated to superior customer
service for its customers. The bank has assets of approximately
$535 million and has four bank branches in Birmingham, Gardendale,
Trussville and Wilsonville with a fifth in progress in Liberty
Park. The bank also operates a full-service mortgage division with
six branches throughout the state of Alabama.
Forward-Looking Statements:
Certain statements in this release contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, which statements can generally be identified by
the use of forward-looking terminology, such as “may,” “will,”
“expect,” “estimate,” “anticipate,” “believe,” “target,” “plan,”
“project,” “continue,” or the negatives thereof, or other
variations thereon or similar terminology, and are made on the
basis of management’s plans and current analyses of the Company,
its business and the industry as a whole. These forward-looking
statements are subject to risks and uncertainties, including, but
not limited to, economic conditions, competition, interest rate
sensitivity and exposure to regulatory and legislative changes. The
above factors, in some cases, have affected, and in the future
could affect the Company’s financial performance and could cause
actual results to differ materially from those expressed or implied
in such forward-looking statements, even if experience or future
changes make it clear that any projected results expressed or
implied therein will not be realized.
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For Media Mackenzie Brown AVP – Marketing mbrown@southpoint.bank
205-637-2309
For Investor Relations Jeanne Noto Investor Relations
jnoto@southpoint.bank 205-503-5018