BIRMINGHAM, Ala.–(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.
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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