ATLANTA, GA – Brian D. Schmitt, Chief Executive Officer of SouthCrest Financial Group, Inc. (SCSG:PK) announced today updated expectations for the remainder of the year and the implications for 2018 results.
“One of our challenges has been to reduce our real estate related costs at SouthCrest. We are happy to announce that we have reached a point that we can move our Tyrone branch into our Fayetteville offices and also move our operational employees in our Thomaston ops center into the main Thomaston building. Consolidating these locations will save our shareholders between $500,000 and $600,000 per year with an initial cost of about $1.6 million. The majority of the cost savings will begin in 1Q18 with a full phase in during the second quarter. It is also important to note that there will not be any reduction in headcount as a result of these moves. This continues the process of improving all aspects of our expenses and balance sheet going into 2018.
“In addition, it appears likely that tax law changes, if signed into law, will reduce the value of our deferred tax asset substantially,” Schmitt observed. The initial result of the location consolidation and related one-time expenses will be slightly negative pre-tax results in 4Q17, ignoring any impact of the new tax rates.
SouthCrest Financial Group, Inc. is a $540 million asset bank holding company headquartered in Atlanta, GA. The company operates a 9-branch network throughout Georgia through its subsidiary bank, SouthCrest Bank, N.A. The bank provides a full suite of retail, private, entrepreneurial, high-net-worth and commercial banking services, and online banking services.
FORWARD LOOKING STATEMENTS
This presentation may contain certain “forward-looking statements” that are subject to risks, uncertainties, and other factors that could cause actual results and shareholder values to differ materially from those projected. Factors that could cause or contribute to such differences include economic conditions, government regulation and legislation, changes in interest rates, credit quality, competition, and other risk factors
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