<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[X] Quarterly report under Section 13 or 15 (d) of the Securities Exchange Act
of 1934
For the quarterly period ended March 31, 1999
-----------------
[ ] Transition report under Section 13 or 15 (d) of the Exchange Act
For the transition period from _______________ to
Commission file number 333-07914
------------
CITIZENS EFFINGHAM BANCSHARES, INC.
----------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)
GEORGIA 58-2357619
- ------------------------------- ------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
802 South Laurel Street
Post Office Box 379
Springfield, Georgia 31329
--------------------------
(Address of Principal Executive Offices)
(912) 754-0754
--------------
(Issuer's Telephone Number, Including Area Code)
Not Applicable
--------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
Check whether the issuer: (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes X No
-------
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: Common Stock $1
par value, 512,000 shares outstanding at March 31, 1999
Transitional Small Business Disclosure Format (check one):
Yes _______ No X
------
<PAGE> 2
Citizens Effingham Bancshares, Inc.
and Subsidiary
INDEX
PART I: FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS PAGE
The following financial statements are provided for Citizens Effingham
Bancshares, Inc. and the subsidiary bank, Citizens Bank of Effingham.
<S> <C> <C>
Consolidated Balance Sheets (unaudited) - March 31, 1999 and
December 31, 1998. 2
Consolidated Statements of Income (unaudited) - For the Three Months
Ended March 31, 1999 and 1998. 3
Consolidated Statements of Cash Flows (unaudited) - For the Three Months
Ended March 31, 1999 and 1998. 4
Notes to Consolidated Financial Statements (unaudited) 5
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9
PART II: OTHER INFORMATION 12
</TABLE>
The consolidated financial statements furnished have not been examined by
independent certified public accountants, but reflect, in the opinion of
management, all adjustments necessary for a fair presentation of the results of
operations for the periods presented.
The results of operations for the three-month period ended March 31, 1999 are
not necessarily indicative of the results to be expected for the full year.
1
<PAGE> 3
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
------------ ------------
<S> <C> <C>
Cash and due from banks $ 1,023,110 $ 1,283,185
Federal funds sold 3,060,000 4,240,000
------------ ------------
Total cash and cash equivalents 4,083,110 5,523,185
------------ ------------
Securities available for sale, at fair value 1,485,722 --
Loans, net of unearned income 20,463,455 12,922,815
Less- allowance for loan losses (305,000) (195,000)
------------ ------------
Loans, net 20,158,455 12,727,815
------------ ------------
Bank premises and equipment, less accumulated depreciation 1,981,172 1,971,213
Accrued interest receivable 190,448 --
Other assets and accrued income 26,645 102,409
------------ ------------
TOTAL ASSETS $ 27,925,552 $ 20,324,622
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing demand $ 2,835,865 $ 2,026,091
Interest-bearing demand 20,426,324 13,726,366
------------ ------------
Total deposits 23,262,189 15,752,457
Other liabilities and accrued expenses 271,976 65,579
------------ ------------
Total liabilities 23,534,165 15,818,036
------------ ------------
Shareholders' Equity
Commom stock, $1 par value, authorized 20,000,000 shares, issued
and outstanding 512,000 shares 512,000 512,000
Paid-in capital surplus 4,608,000 4,608,000
Retained earnings (accumulated deficit) (492,381) (392,769)
Deficit accumulated during development stage (220,645) (220,645)
Accumulated other comprehensive income (15,587) --
------------ ------------
Total shareholders' equity 4,391,387 4,506,586
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 27,925,552 $ 20,324,622
============ ============
</TABLE>
2
<PAGE> 4
CITZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1999 1998
--------- ---------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 401,529 $ --
Income on federal funds sold 41,198 --
Interest on securities 11,838 --
--------- ---------
Total interest income 454,565 --
--------- ---------
INTEREST EXPENSE:
Interest on NOW and money market deposits 56,911 --
Interest on savings deposits 1,592 --
Interest on time deposits 139,346 --
Other interest expense -- 12,845
--------- ---------
Total interest expense 197,849 12,845
--------- ---------
Net interest income before loan losses 256,716 (12,845)
Less - provision for loan losses 110,000 --
--------- ---------
Net interest income after provision for loan losses 146,716 (12,845)
--------- ---------
OTHER OPERATING INCOME:
Service charges on deposit accounts 18,037 --
Other service charges, commissions and fees 14,432 --
Other income 20 --
--------- ---------
Total other operating income 32,489 --
--------- ---------
OTHER OPERATING EXPENSE:
Salaries 128,365 25,426
Employee benefits 20,279 6,181
Net occupancy expenses 45,319 --
Equipment rental and depreciation of equipment 10,844 2,307
Other expenses 74,010 7,893
--------- ---------
Total other operating expenses 278,817 41,807
--------- ---------
INCOME BEFORE INCOME TAXES (99,612) (54,652)
Income tax provision -- --
--------- ---------
Net Income $ (99,612) $ (54,652)
========= =========
INCOME PER SHARE(*) $ (0.19) $ (0.11)
========= =========
</TABLE>
(*) Net Income (Loss) / weighted average outstanding shares of 512,000.
3
<PAGE> 5
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1999 1998
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ (99,612) $ (54,652)
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for loan losses 110,000 --
Depreciation 25,146 --
Changes in accrued income and other assets (106,656) --
Changes in accrued expenses and other liabilities 206,396 12,845
----------- -----------
Net cash provided by (used in) operating activities 135,274 (41,807)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in loans made to customers (7,540,639) --
Purchase of securities available for sale (1,509,337) --
Organization costs -- (37,495)
Purchases of property and equipment (35,105) (75,260)
----------- -----------
Net cash used in investing activities (9,085,081) (112,755)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in demand and savings account 809,774 --
Net change in other time deposits 6,699,958 --
Proceeds from short-term borrowings and federal funds purchased -- 150,000
----------- -----------
Net cash provided by financing activities 7,509,732 150,000
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,440,075) (4,562)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 5,523,185 3,156
----------- -----------
CASH AND CASH EQUIVALENTS, END OF YEAR $ 4,083,110 $ (1,406)
=========== ===========
SUPPLEMENT CASH FLOW INFORMATION:
Cash paid for interest $ 100,355 $ --
=========== ===========
Cash paid for income taxes $ -- $ --
=========== ===========
</TABLE>
4
<PAGE> 6
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
(1) BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information, and with the instructions to Form 10-QSB and Item
310 (b) of Regulation S-B of the Securities and Exchange Commission.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month
period ended March 31, 1999, are not necessarily indicative of the results
that may be expected for the year ended December 31, 1999. For further
information refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 1998.
(2) NEW AND PENDING PRONOUNCEMENTS
During February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" (SFAS 128). SFAS 128 simplifies current standards by eliminating
the presentation of primary earnings per share (EPS) and requiring the
presentation of basic EPS, which includes no potential common shares and
thus no dilution. The Statement also requires entities with complex
capital structures to present basic and diluted EPS on the face of the
income statement and also eliminates the modified treasury stock method of
computing potential common shares. The Statement is effective for
financial statements issued for periods ending after December 15, 1997,
including interim periods. Early application is not permitted. Upon
adoption, restatement of all prior period EPS data presented is required.
Based upon the current capital structure of the Company, this Statement
will have no effect on the EPS calculation.
In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" (SFAS 130) and
Statement of Financial Accounting Standards No. 131, "Disclosures about
Segments of an Enterprise and Related Information" (SFAS 131). SFAS 130
establishes standards for the reporting and display of comprehensive
income and its components in a full set of general-purpose financial
statements. SFAS 131 specifies the presentation and disclosure of
operating segment information reported in the annual report and interim
reports issued to stockholders. The provisions of both statements will be
effective for fiscal years beginning after December 15, 1997. The
management of the Company believes that the adoption of these statements
will not have a material impact on the Company's financial position,
results of operations, or liquidity.
During 1998, the Company adopted FASB Statement No. 130, "Reporting
Comprehensive Income." The statement requires the reporting of
comprehensive income in addition to net income from operations.
Comprehensive income is a more inclusive financial reporting methodology
that includes disclosure of certain financial information that
historically has not been recognized in the calculation of net income.
During the three months ended March 31, 1999, the Company had unrealized
holding gains on investment securities which were reported as
comprehensive income. An analysis of accumulated other comprehensive
income since December 31, 1998 follows:
5
<PAGE> 7
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Accumulated other comprehensive income at December 31, 1998 $ --
Other comprehensive income, net of tax:
Change in unrealized gain (loss)
on securities available for sale, net
of deferred income tax benefit of $8,029 15,587
Less: Reclassification adjustment for (gains) losses
realized in net income --
-------
15,587
-------
Accumulated other comprehensive income at March 31, 1999 $15,587
=======
</TABLE>
(3) SUPPLEMENTAL FINANCIAL DATA
Components of other operating expenses greater than 1% of total interest
income and other income for the periods ended March 31, 1999 and 1998 are:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1999 1998
------- -------
<S> <C> <C>
Telephone and communications $ 5,870 $ --
</TABLE>
(4) YEAR 2000 COMPLIANCE ISSUES
The Company utilizes and depends on data processing systems and software to
conduct its business. The approach of Year 2000 presents a problem because many
older computers having been programmed to recognize only the last two digits of
a year i.e., "98" is for the year 1998. Accordingly, with the new millenium
approaching, these computers will potentially recognize the year 2000 - "00" as
the year 1900, or just not be able to comprehend the date, thus, potentially
effecting the accuracy of, or ability to process any date sensitive functions.
THE COMPANY'S STATE OF READINESS
The Company and the Bank do not use proprietary computer hardware or
software. The Company has no hardware or software dependencies other than
through the Bank; therefore, all further corporate references in this section
will be to the Bank. Prior to opening for business in September 1998, the Bank
adopted a proposed Year 2000 plan to make the Bank Year 2000 ready. In
connection with opening the main office in September 1998 and the Rincon office
in November 1998, management tried to insure that any purchases of hardware,
software, forms and other items were Year 2000 ready.
The Bank has defined the Year 2000 problem and has established a Year 2000
Committee. The Year 2000 Committee has developed a Policy Directive and
established an overall strategy and initial project plan. The Year 2000
Committee holds weekly meetings and reports to the Board of Directors on a
monthly basis on the progress of the Year 2000 plan.
Through a third party vendor, Compunet, Inc., the Bank has identified Year
2000 vulnerable hardware and software and has conducted the initial testing on
its personal computers. In addition, all forms have been reviewed to determine
if they are Year 2000 ready and form changes are being made as necessary.
6
<PAGE> 8
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
The Bank prepared a Year 2000 budget and presented the budget to the Board of
Directors, which the Board of Directors approved on March 12, 1999. Management
realizes that amendments to the budget may be necessary if undetermined costs
arise from unforeseen circumstances.
EMPLOYEE AND CUSTOMER AWARENESS
The Bank believes it is extremely important to communicate information to
employees and customers about the Year 2000 issue. The Bank has conducted
employee awareness training designed to provide information about the Bank's
efforts to ensure that the Bank will have a problem-free transition into the
next century.
The Bank continues its communication efforts through statement stuffers,
phone calls and direct contact to provide information and assistance to
customers to minimize the risk of problems with the Year 2000. In addition, the
Bank will continue to provide training to employees to discuss the Bank's Year
2000 readiness and ways the employees can assist customers in becoming more
knowledgeable about the Year 2000.
Additionally, management has implemented Year 2000 Credit Risk Procedures to
identify any potential risks that may exist in the Bank's significant
commercial loan relationships. Management's current plans are to help the
Bank's customers understand the risks involved, to share the Bank's strategies
and to encourage those customers to satisfy their compliance requirements on
time lines that are consistent with those of the Bank. The Bank's credit review
processes have also been modified to address this risk.
THE COSTS TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES
The Bank's costs for Year 2000 readiness were $-0- during 1998 and
additional expenditures of $20,000 are anticipated during 1999. The majority of
the Bank's costs for Year 2000 readiness are for outsourced Year 2000 project
management. The Bank anticipates that there may be additional costs associated
with the upgrade of yet untested software and hardware, however this amount has
yet to be determined and will be directly related to results of testing to be
performed. Management believes that due to the recent upgrades to their system,
any additional costs of upgrading software and hardware that are incurred would
have been incurred in the normal course of replacing equipment and technology
updates and would not be significant or have a material impact on the Company's
financial statements as a whole.
THE RISKS OF THE COMPANY'S YEAR 2000 ISSUES
There can be no assurance that all hardware and software that the Bank will
use, or that the Bank's customers, vendors and utility companies will use, will
be Year 2000 compliant. The Bank's customers, vendors and utility companies may
be negatively affected by the Year 2000 issue, and any difficulties incurred by
them in solving Year 2000 issues could negatively affect their ability to
perform their agreements with the Bank. The failure of the Bank's computer
systems or other applications could have a material adverse effect on the
Company's results of operations and financial condition.
The most reasonably likely worst case Year 2000 scenario for the Bank appears
to be one in which electrical service or phone service were disrupted to the
community for an extended period of time. The most likely source of potential
problems currently appears to be with the utility companies, with electrical
service being the most critical of the utilities. The Bank cannot operate its
systems without a continuous supply of electricity. The Bank recently requested
and received information from its utility companies regarding their Year 2000
readiness. The City of Springfield and the Southern Company confirmed their
Year 2000 readiness.
7
<PAGE> 9
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
THE COMPANY'S CONTINGENCY PLANS
The Bank had completed its Year 2000 Contingency/Business Resumption Plan
(the "Contingency Plan") and presented it to the Board of Directors for
approval on April 9, 1999. The Contingency Plan is designed to achieve a level
of emergency preparedness that is broad in its scope, encompassing the risk of
loss or business disruption resulting from unexpected events ranging from
equipment failure to natural disasters. The Contingency Plan provides
alternative measures in providing continued services to our customers and
identifies methods to utilize in providing such services. The focus of the
Contingency Plan is to give direction to employees in each area of the Bank on
how to perform their duties during 1999 in the event of possible disruption to
normal operations resulting from Year 2000 issues as well as other possible
disruptions. A particular emphasis of the Contingency Plan is to educate and
inform employees and customers about Year 2000 readiness.
The foregoing are forward-looking statements reflecting management's current
assessment and estimates with respect to the Bank's Year 2000 compliance
efforts and the impact of Year 2000 issues on the Bank's business and
operations. Various factors could cause actual plans and results to differ
materially from those contemplated by such assessments, estimates and
forward-looking statements, many of which are beyond the control of the Bank.
Some of these factors include, but are not limited to representations by the
Bank's vendors and counterparties, technological advances, economic
considerations and consumer perceptions. The Bank's Year 2000 compliance
program is an ongoing process involving continued evaluation and may be subject
to change in response to new developments.
8
<PAGE> 10
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FOR EACH OF THE THREE MONTHS IN THE PERIOD ENDED
MARCH 31, 1999 AND 1998
- -------------------------------------------------------------------------------
INTERIM FINANCIAL CONDITION
Citizens Effingham Bancshares, Inc. (the "Company") reported total assets of
$27,925,552 as of March 31, 1999, compared to $20,324,622 at December 31, 1998.
The most significant change in the composition of assets was an increase in net
loans from $12,727,815 to $20,158,455. There was also investments purchased
during the first quarter whose market value total at March 31, 1999 was
$1,485,722.
LIQUIDITY
The Bank's liquid assets as a percentage of total deposits were 17.5% at
March 31, 1999, compared to 35.1% at December 31, 1998. The Company has
approximately $1,200,000 in available federal fund lines of credit with
correspondent banks. However, the Company has not advanced on these lines
during 1999. At least monthly, management analyzes the level of off-balance
sheet commitments such as unfunded loan equivalents, loan repayments, maturity
of investment securities, liquid investment, and available fund lines in an
attempt to minimize the possibility that a potential shortfall will exist.
CAPITAL
The capital of the Company totaled $4,391,387 as of March 31, 1999. The
capital of the Company and the Bank exceeded all prescribed regulatory capital
guidelines. Regulations require that the most highly rated banks maintain a
Tier 1 leverage ratio of 3% plus an additional cushion of at least 1 to 2
percentage points. Tier 1 capital consists of common shareholders' equity, less
certain intangibles. The Bank's Tier 1 leverage ratio was 18.1% at March 31,
1999, compared to 26.5% at December 31, 1998. Regulations require that the Bank
maintain a minimum total risk weighted capital ratio of 8%, with one-half of
this amount, or 4%, made up of Tier 1 capital. Risk-weighted assets consist of
balance sheet assets adjusted by risk category, and off-balance sheet assets or
equivalents similarly adjusted. At March 31, 1999, the Bank had a risk-weighted
total capital ratio of 19.5%, compared to 30.4% at December 31, 1998, and a
Tier I risk-weighted capital ratio of 20.7 %, compared to 29.1% at December 31,
1998. The decrease is primarily caused by the continued growth in the loans.
ASSET QUALITY
As of March 31, 1999 there were no nonperforming assets which includes
nonaccruing loans, repossessed collateral and loans for which payments are more
than 90 days past due. Also there were no related party loans which were
considered nonperforming at March 31, 1999.
The allowance for loan losses totaled $305,000 at March 31, 1999, an
increase of $110,000 from December 31, 1998. The allowance for loan losses
represented 1.5% and 1.5% of total loans at March 31, 1999 and December 31,
1998, respectively. An analysis of the allowance for loan losses since December
31, 1998 follows:
9
<PAGE> 11
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FOR EACH OF THE THREE MONTHS IN THE PERIOD ENDED
MARCH 31, 1999 AND 1998
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Allowance for loan losses at December 31, 1998 $195,000
Charge-offs:
Commercial --
Real Estate --
--------
Installment --
--------
Total --
Recoveries:
Commercial --
Real Estate --
Installment --
--------
Total --
--------
Provision charged to income 110,000
--------
Allowance for loan losses at March 31, 1999 $305,000
========
</TABLE>
The loan portfolio is reviewed periodically to evaluate the outstanding
loans and to measure the performance of the portfolio and the adequacy of the
allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses, and internal credit ratings. Management's judgment as to
the adequacy of the allowance is based upon a number of assumptions about
future events which it believes to be reasonable, but which may or may not be
reasonable. However, because of the inherent uncertainty of assumptions made
during the evaluation process, there can be no assurance that loan losses in
future periods will not exceed the allowance for loan losses of that additional
allocations to the allowance will not be required.
The Bank was most recently examined by its primary regulatory authority in
January 1999. There were no recommendations by the regulatory authority that in
management's opinion will have material effects on the Bank's liquidity,
capital resources or operations.
INVESTMENT SECURITIES
At March 31, 1999, the Bank had $1,485,722 in investment securities
available-for-sale. The net unrealized loss on available for sale securities,
net of deferred taxes, was $15,587 on March 31, 1999. During the period ended
March 31, 1999, there were no maturities and calls of investment.
10
<PAGE> 12
CITIZENS EFFINGHAM BANCSHARES, INC. AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FOR EACH OF THE THREE MONTHS IN THE PERIOD ENDED
MARCH 31, 1999 AND 1998
- -------------------------------------------------------------------------------
RESULTS OF OPERATIONS
Since the Company did not begin operations until September 1998, any
comparison to prior year would not be meaningful. Net interest income for the
first three months of 1999 was $146,716. Interest income for the first three
months of 1999 was $454,565. Interest expense for the first three months of
1999 was $185,004. The increase in interest expense is primarily due to an
increase in interest bearing deposits when the Company opened for operations.
Amounts charged to expense related to the allowance for loan losses for the
first three months of 1999 was $110,000.
Other operating income for the first three months of 1999 was $32,489. This
consisted primarily of service charges on deposit accounts amounting to $18,037
for the first three months.
Other operating expenses for the first three months of 1999 were $278,817.
This consisted primarily of employee salaries amounting to $128,365 for the
first three months of 1999.
11
<PAGE> 13
CITIZENS EFFINGHAM BANCSHARES, INC.
AND SUBSIDIARY
- -------------------------------------------------------------------------------
PART II: OTHER INFORMATION:
Item 1. Legal Proceedings
There are no material legal proceedings to which the Company is a party or
of which their property is the subject.
Item 2. Changes in Securities
(a) Not Applicable
(b) Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security-Holders
There were no matters submitted to security holders for a vote during the
three months ended March 31, 1999.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K.
A.Exhibits - 27.1 Financial Data Schedule (for SEC use only)
B. There have been no reports filed on form 8-K for the three months ended
March 31, 1999.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Citizens Effingham Bancshares, Inc.
/s/ Harry H. Shearouse
- --------------------------------------
Harry H. Shearouse
President / Chief Executive Officer
Date: April 21, 1999
12
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,023,110
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,060,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,485,722
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 20,463,455
<ALLOWANCE> 305,000
<TOTAL-ASSETS> 27,925,552
<DEPOSITS> 23,262,189
<SHORT-TERM> 0
<LIABILITIES-OTHER> 271,976
<LONG-TERM> 0
0
0
<COMMON> 512,000
<OTHER-SE> 3,879,387
<TOTAL-LIABILITIES-AND-EQUITY> 27,925,552
<INTEREST-LOAN> 401,529
<INTEREST-INVEST> 11,838
<INTEREST-OTHER> 41,198
<INTEREST-TOTAL> 454,565
<INTEREST-DEPOSIT> 197,849
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 256,716
<LOAN-LOSSES> 110,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 0
<INCOME-PRETAX> 99,612
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 99,612
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
<YIELD-ACTUAL> 4.9
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 195,000
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 305,000
<ALLOWANCE-DOMESTIC> 305,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
