SouthPoint Bancshares Announces 2020 Earnings

Rhea-AI Summary

SouthPoint Bancshares, Inc. (SOUB) reported a net income of $7,389,468, or $3.68 per share, for the year ended December 31, 2020, reflecting a significant increase from $4,917,759 or $2.46 per share in 2019. Earnings per share rose by 50%, with pre-tax income increasing 80%. The mortgage division saw a 290% rise in net income, contributing to a total asset increase of 38.1%.

SouthPoint Bank successfully completed 650 loans worth $73 million during the first round of the Paycheck Protection Program, demonstrating strong community engagement amidst the pandemic.

Positive

• Net income increased from $4.9 million in 2019 to $7.39 million in 2020, a growth of 50%.
• Pre-tax income rose 80% compared to 2019.
• Mortgage division's net income surged by 290%, reaching $5.26 million.
• Total assets grew by 38.1%, from $410.1 million to $566.4 million.
• Successfully completed $73 million in PPP loans.

Negative

• Low interest rates negatively impacted the fundamental margin business.

SouthPoint Bancshares, Inc. (SOUB), the parent company of SouthPoint Bank, announced a net income of $7,389,468, or $3.68 per share, for the year ended December 31, 2020, as compared to a net income of $4,917,759, or $2.46 per share, for the year ended December 31, 2019.

“SouthPoint Bank, like all of us, had an unusual year in 2020 due to the Coronavirus pandemic. We ultimately had an outstanding year both in total profits and the amount of businesses and people that we assisted in managing the crisis,” said Steve Smith, Chairman, President and CEO.

Earnings per share were up 50 percent, while pre-tax income was up 80 percent over 2019.

Low interest rates during the year boosted home mortgage production, particularly for refinances. The mortgage division increased net income from $1,348,000 to $5,264,000 from 2019 to 2020, an increase of 290 percent.

“This well-demonstrated business balance between a negative effect of low interest rates on our fundamental margin business and the increase of mortgage business is the main reason we added the home mortgage division secondary-sell line of business years ago,” said Smith.

During the first round of the Paycheck Protection Program (PPP), SouthPoint Bank completed 650 loans out of 650 applications for a total of $73,000,000 in loans.

“I will always look back on our bank’s service to our community as a great source of pride in the team we have built,” said Smith. “SouthPoint Bank was able to accomplish what many big banks could not.”

From 2019 to 2020, the bank grew 38.1 percent from $410.1 million to $566.4 million. The bank opened its fifth full-service branch in the Liberty Park neighborhood of Vestavia Hills, AL. The home mortgage division opened a new branch in Anniston, AL.

“Overall, we had a great year of financial performance, with record profits and a grand contribution to the communities where we operate and live,” said Smith.

The 2020 unaudited shareholder report 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 $566 million and has five bank branches in Birmingham, Gardendale, Trussville, Vestavia Hills and Wilsonville. The bank also operates a full-service mortgage division with seven 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005112/en/

FAQ

What was SouthPoint Bancshares' net income for 2020?

SouthPoint Bancshares reported a net income of $7,389,468 for 2020.

How much did earnings per share increase for SOUB in 2020?

Earnings per share for SouthPoint Bancshares increased by 50% to $3.68 in 2020.

What was the growth rate of SouthPoint Bank's total assets?

SouthPoint Bank's total assets grew by 38.1%, from $410.1 million in 2019 to $566.4 million in 2020.

How many PPP loans did SouthPoint Bank complete?

SouthPoint Bank completed 650 PPP loans totaling $73 million.

What challenges did SouthPoint Bancshares face in 2020?

SouthPoint Bancshares faced challenges from low interest rates affecting their fundamental margin business.