BIRMINGHAM, Ala.–(BUSINESS WIRE)–SouthPoint Bancshares, Inc. (SOUB), the parent company of SouthPoint Bank, announced a net income of $5,010,719, or $2.50 per share, for the third quarter year-to-date ended September 30, 2020, as compared to a net income of $3,665,103, or $1.83 per share, for the third quarter year-to-date ended September 30, 2019. Pre-tax and pre-provision income was $7,689,532 as of September 30, 2020 compared to $4,880,238 on September 30, 2019.
“We have finished another record-breaking quarter here at SouthPoint Bank,” said Steve Smith, Chairman, President and CEO. “Both our home mortgage division and commercial banking areas have had an excellent year. The mortgage division has greatly benefited from the reduction in long term fixed rates. Commercial loans are up 20 percent net of payoffs, which is a record growth percentage.”
Total assets in September 2020 grew to $557.1 million from $407.3 million in September 2019, while total loans grew to $434.2 million from $327.7 million in September 2019.
The home mortgage division grew net income 274 percent to $3,503,000 year-to-date in September 2020 from $937,000 year-to-date in September 2019.
“The sudden drop in short-term rates in the first quarter had a negative effect on our overall margins,” Smith said. “We have worked to counter this effect by realigning our balance sheet to reduce cost of funds and offset the reduction in floating rate loan yields.”
Despite the possibility of setbacks due to COVID, the bank continues to thrive and grow. The bank opened its fifth branch in Liberty Park, a subdivision in Vestavia Hills, AL.
“We are blessed to have a great team here who have weathered the uncontrollable COVID storm this year as essential workers. This team has helped our old and new customers through the Paycheck Protection Program with 650 unique business loans for a total of $72,000,000,” Smith said. “I am gratified by their work and dedication to this bank and this community and will always remember how they all pitched in to make positive impacts for all our stakeholders.”
The unaudited third quarter 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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