SCSG Beats Our Estimate, Enhances Buyback And Special Dividend To Utilize Excess Capital
PORTFOLIO MANAGER BRIEF
- 3Q19 EPS: Reported $0.18, Core $0.17, Janney $0.14. Securities Gain $0.01 impact. ROA exceed 1.00%.
- Stronger Loan growth pushed both NIM-Net Interest Margin and top-line spread revenue as excess liquidity utilized. NIM rose 16bps from stronger mix of Loans to Total Earning Assets.
- Loans-to-Deposits ratio rose to 77% from 73%.
- New lender hires suggest healthy Loan pipeline in 4Q19 and early 2020.
- Capital generation is strong and being utilized for share repurchases and special dividend this quarter ($0.50/share, paid 12-10-19 with record date of 11-26-19).
- Share buyback completed earlier in 3Q19 ($5M, 6% of shares) with a new authorization for another $10M in shares available for repurchase through 2021.
- Stock remains inexpensive at 119% of tangible book value (updated for 9-30-19) with 10.9% TCE ratio and scarce Deposit franchise in the Atlanta, GA MSA with low-cost Deposits and a high percentage of core funding.
You are leaving the SouthCrest Bank website. SouthCrest Bank is not responsible for and has no control over the subject matter, content, information or graphics when viewing links attached to SouthCrest Bank’s website.