<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Mark One
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1998
----------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to __________
COMMISSION FILE NUMBER: 000-24203
<TABLE>
GB&T BANCSHARES, INC.
- -------------------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
<S> <C>
GEORGIA 58-2400756
- -------------------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
500 JESSE JEWELL PARKWAY, S.E.
GAINESVILLE, GEORGIA 30501
------------------------------------------
(Address of principal executive offices)
(770) 532-1212
----------------------------------------
(Issuer's telephone number)
N/A
- -------------------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last report)
</TABLE>
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 August 1, 1998: 1,676,160 shares; $5 par value
Transitional Small Business Disclosure Format (Check One) Yes X No
----- -----
<PAGE>
GB&T BANCSHARES, INC. AND SUBSIDIARY
INDEX
-----
<TABLE>
<CAPTION>
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<S> <C>
CONSOLIDATED BALANCE SHEET - JUNE 30, 1998.................................................1
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME -
THREE MONTHS ENDED JUNE 30, 1998 AND 1997 AND SIX MONTHS
ENDED JUNE 30, 1998 AND 1997..............................................................2
CONSOLIDATED STATEMENTS OF CASH FLOWS - SIX MONTHS ENDED
JUNE 30, 1998 AND 1997....................................................................3
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS...............................................4-6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS..................................7-10
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS...............................11
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K..................................................11
SIGNATURES.................................................................................12
</TABLE>
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GB&T BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
JUNE 30, 1998
(Unaudited)
(Dollars in Thousands)
ASSETS
- ------
Cash and due from banks $ 6,700
Interest-bearing deposits in banks 741
Federal funds sold 10,265
Securities available-for-sale, at fair value 31,988
Loans 123,698
Less allowance for loan losses 1,666
--------
Loans, Net 122,032
--------
Premises and equipment 4,483
Other assets 4,742
--------
TOTAL ASSETS $180,951
========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Deposits
Demand $ 21,950
Interest-bearing demand 13,415
Savings 33,523
Time deposits 92,239
--------
Total deposits 161,127
Other borrowings 3,482
Other liabilities 1,839
--------
TOTAL LIABILITIES 166,448
--------
Stockholders' Equity
Common Stock, par value $5; 10,000,000
shares authorized; 1,676,160 shares
issued and outstanding 8,381
Capital surplus 2,003
Retained earnings 4,063
Accumulated other comprehensive
income, net of tax 56
--------
TOTAL STOCKHOLDERS' EQUITY 14,503
--------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $180,951
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
1
<PAGE>
GB&T BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
THREE MONTHS ENDED JUNE 30, 1998 AND 1997 AND
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Dollars in Thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------ -----------------
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans 3,137 2,838 6,224 5,326
Taxable securities 432 379 807 739
Nontaxable securities 29 13 57 27
Federal funds sold 157 80 317 132
Interest-bearing deposits in banks 5 4 10 9
------ ------ ------ ------
Total interest income 3,760 3,314 7,415 6,233
------ ------ ------ ------
INTEREST EXPENSE
Deposits 1,842 1,561 3,705 2,944
Other borrowings 31 16 47 28
------ ------ ------ ------
Total interest expense 1,873 1,577 3,752 2,972
------ ------ ------ ------
NET INTEREST INCOME 1,887 1,737 3,663 3,261
Provision for loan losses 126 72 252 144
------ ------ ------ ------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,761 1,665 3,411 3,117
------ ------ ------ ------
OTHER INCOME 459 229 786 453
------ ------ ------ ------
OTHER EXPENSES
Salaries and other employee benefits 885 642 1,685 1,242
Occupancy and equipment expenses 276 184 522 361
Other operating expenses 424 330 795 623
------ ------ ------ ------
TOTAL OTHER EXPENSES 1,585 1,156 3,002 2,226
------ ------ ------ ------
INCOME BEFORE INCOME TAXES 635 738 1,195 1,344
Income tax expense 206 263 389 476
------ ------ ------ ------
NET INCOME 429 475 806 868
------ ------ ------ ------
OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on securities
available-for-sale arising during period, net of tax (3) 136 (3) 25
------ ------ ------ ------
COMPREHENSIVE INCOME $ 426 $ 611 $ 803 $ 893
====== ====== ====== ======
BASIC EARNINGS PER COMMON SHARE $ 0.26 $ 0.29 $ 0.48 $ 0.52
====== ====== ====== ======
DILUTED EARNINGS PER COMMON SHARE $ 0.24 $ 0.29 $ 0.46 $ 0.52
====== ====== ====== ======
CASH DIVIDENDS PER COMMON SHARE $ 0.06 $ 0.11 $ 0.06 $ 0.11
====== ====== ====== ======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
2
<PAGE>
GB&T BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
1998 1997
------ ------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 806 $ 868
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 205 156
Provision for loan losses 252 144
Net realized losses on securities - 7
Other operating activities (1,029) (278)
-------- --------
Net cash provided by operating activities 234 897
-------- --------
INVESTING ACTIVITIES
Purchases of securities available-for-sale (15,134) (2,609)
Proceeds from maturities of securities available-for-sale 8,051 1,732
(Increase) decrease in interest-bearing deposits in banks (402) 44
Net increase (decrease) in Federal funds sold 260 (2,195)
Net increase in loans (2,507) (17,195)
Purchase of premises and equipment (357) (703)
-------- --------
Net cash used in investing activities (10,089) (20,926)
-------- --------
FINANCING ACTIVITIES
Net increase in deposits 5,516 18,672
Net increase in other borrowings 2,052 1,241
Dividends paid (101) -
-------- --------
Net cash provided by financing activities 7,467 19,913
-------- --------
Net (decrease) in cash and due from banks (2,388) (116)
Cash and due from banks at beginning of period 9,088 6,453
-------- --------
Cash and due from banks at end of period $ 6,700 $ 6,337
======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>
3
<PAGE>
GB&T BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. BASIS OF PRESENTATION
The consolidated financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair statement of results for the interim
periods.
The results of operations for the six month period ended June 30, 1998
are not necessarily indicative of the results to be expected for the
full year.
NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS
The adoption of the provisions of SFAS No. 125, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities" that became effective on January 1, 1998 did not have a
material effect on the Company's financial statements.
The adoption of SFAS No. 128, "Earnings Per Share", that became
effective as of December 31, 1997 had no effect on the calculation of
income per common share for the three and six months ended June 30,
1997.
The adoption of SFAS No. 130, "Reporting Comprehensive Income", that
became effective on January 1, 1998 required the Company to report
comprehensive income in the Company's Statements of Operations and
Comprehensive Income.
In April of 1998 the Accounting Standards Executive Committee issued
Statement of Position (SOP) 98-5, "Reporting on the Costs of Start Up
Activities". SOP 98-5 requires that costs of startup activities and
organization costs be expensed as incurred. SOP 98-5 becomes
effective for financial statements for fiscal years beginning after
December 15, 1998. However, early adoption is encouraged for fiscal
years in which financial statements have not been issued. As of June
30, 1998 the company had $40,700 of unamortized organization costs
which will be required to be written off upon adoption of SOP 98-5.
In June of 1998 the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133,
"Accounting for Derivative Instruments and Hedging Activities". This
statement establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments
embedded in other contracts and for hedging activities. It requires
that an entity recognize all derivatives as either assets or
liabilities in the statement of financial position and measure those
instruments at fair value. The statement is effective for all fiscal
quarters of fiscal years beginning after June 15, 1999.
4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS (CONTINUED)
Earlier adoption is encouraged, but permitted only as of the beginning
of any fiscal quarter that begins after June 1998. The company has
not determined the affect of SFAS 133 on its financial condition and
results of operations at this time.
There are no other recent accounting pronouncements that have had, or
are expected to have a material effect on the Company's financial
statements.
NOTE 3. EARNINGS PER COMMON SHARE
The following is a reconciliation of net income and weighted-
average shares outstanding used in determining basic and diluted
earnings per common share (EPS):
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, 1998
--------------------------------------------------------
NET WEIGHTED-AVERAGE PER SHARE
INCOME SHARES AMOUNT
------------- ---------------- --------------
<S> <C> <C> <C>
Basic EPS $ 426,000 1,676,160 $ 0.26
==============
Effect of Dilutive Securities
Stock options - 77,141
------------- ---------
Diluted EPS $ 426,000 1,753,301 $ 0.24
============= ========= ==============
THREE MONTHS ENDED JUNE 30, 1997
--------------------------------------------------------
NET WEIGHTED-AVERAGE PER SHARE
INCOME SHARES AMOUNT
------------- ---------------- --------------
Basic EPS $ 475,000 1,673,960 $ 0.29
==============
Effect of Dilutive Securities
Stock options - 860
------------- ---------
Diluted EPS $ 475,000 1,674,820 $ 0.29
============= ========= ==============
</TABLE>
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1998
--------------------------------------------------------
NET WEIGHTED-AVERAGE PER SHARE
INCOME SHARES AMOUNT
------------- ---------------- --------------
<S> <C> <C> <C>
Basic EPS $806,000 1,676,160 $0.48
=====
Effect of Dilutive Securities
Stock options - 77,141
-------- ---------
Diluted EPS $806,000 1,753,301 $0.46
======== ========= =====
SIX MONTHS ENDED JUNE 30, 1997
--------------------------------------------------------
NET WEIGHTED-AVERAGE PER SHARE
INCOME SHARES AMOUNT
------------- ---------------- ------------
Basic EPS $868,000 1,673,960 $0.52
=====
Effect of Dilutive Securities
Stock options - 2,277
-------- ---------
Diluted EPS $868,000 1,676,237 $0.52
======== ========= =====
</TABLE>
NOTE 4. BUSINESS COMBINATION
On April 24, 1998, GB&T Bancshares, Inc. acquired all of the
outstanding common stock of Gainesville Bank & Trust in exchange for
1,676,160 shares of $5 par value common stock. The acquisition was
accounted for as a pooling of interests and, accordingly, all prior
financial statements have been restated to reflect the combination.
6
<PAGE>
GB&T BANCSHARES, INC. AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the financial position and operating results of the
Company and its bank subsidiary, Gainesville Bank & Trust, during the periods
included in the accompanying consolidated financial statements.
FINANCIAL CONDITION
The Company's total assets increased $8,022,000 or 4.6%, for the six months
ended June 30, 1998. Total loans increased by $2,488,000 or 2.1% for the six
months ended June 30, 1998. The loan to deposit ratio as of June 30, 1998 was
76.7% as compared to 81.2% at June 30, 1997. Total deposits increased by
$5,516,000 for the six months ended June 30, 1998. The slow growth is believed
to stem from a highly competitive banking industry and a more stabilized general
economy. Prior to the past six months, the Bank's market area has experienced
significant growth during the last several years.
LIQUIDITY
As of June 30, 1998, the liquidity ratio was 27.45% compared to 21.86% at June
30, 1997. This is above the Bank's target ratio of 25%. Liquidity is measured
by the ratio of net cash, Federal funds sold and securities to net deposits and
short-term liabilities. The increase in the liquidity ratio is related to the
minimal increase in loans and a reduction of pledged deposits since December 31,
1997. The Bank has lines of credit available to meet any unforeseen liquidity
needs. Also, the Bank has a relationship with the Federal Home Loan Bank of
Atlanta which provides funding for loan growth on an as needed basis.
CAPITAL
The minimum capital requirements for banks and bank holding companies require a
leverage capital to total assets ratio of at least 4%, core capital to risk-
weighted assets ratio of at least 4% and total capital to risk-weighted assets
of at least 8%.
At June 30, 1998, the capital ratios at the Company and the Bank were adequate
based on regulatory minimum capital requirements. The actual capital ratios for
the Company are as follows:
Leverage capital ratio 8.15%
Risk-based capital ratios:
Core capital 10.94%
Total capital 12.19%
7
<PAGE>
RESULTS OF OPERATIONS
Net interest income increased $150,000 or 8.6% for the three months ended June
30, 1998 compared to the same period in 1997. The net increase consists of an
increase in interest income of $446,000 or 13.5% less an increase in interest
expense of $296,000 or 18.8% for the three month period. The increase in
interest income is due primarily to the growth in total interest-earning assets
of $6.8 million from March 31, 1998 to June 30, 1998. Total interest-bearing
liabilities increased during the same period by $4.4 million.
Net interest income increased $402,000 or 12.3% for the six months ended June
30, 1998 compared to the same period in 1997. The net increase consists of an
increase in interest income of $1,182,000 or 19% less an increase in interest
expense of $780,000 or 26.2% for the six month period. The increase in interest
income is due primarily to the growth in total interest-earning assets of $27
million from June 30, 1997 to June 30, 1998. Total interest-bearing liabilities
increased during the same period by $19 million. The net interest margin was
4.65% and 5.13% for the six months ended June 30, 1998 and 1997, respectively.
The Bank's provision for loan losses increased by $54,000 or 75% during the
three months ended June 30, 1998 as compared to the same period in 1997. The
Bank's provision for loan losses increased by $108,000 or 75% during the six
months ended June 30, 1998 as compared to the same period in 1997. The
allowance for loan losses at June 30, 1998 was $1,666,000 or 1.35% of total
loans compared to 1.14% at June 30, 1997. Based on management's evaluation, the
allowance is adequate to absorb any anticipated loan losses at June 30, 1998.
The increase in the provision for loan losses for the three and six month
periods ended June 30, 1998 as compared to 1997 is based on an overall slowing
economy. The analysis below indicates only a slight decrease in net charge-offs
in 1998 as compared to 1997. The second table following indicates increases of
$67,000 and $259,000 in nonaccrual loans and past due loans over 90 days,
respectively. The allowance for loan losses is evaluated monthly and adjusted
to reflect the risk in the portfolio.
The following table summarizes the allowance for loan losses for the six month
periods ended June 30, 1998 and 1997.
<TABLE>
<CAPTION>
1998 1997
--------- --------
(DOLLARS IN THOUSANDS)
----------------------
<S> <C> <C>
BALANCE, BEGINNING OF PERIOD $1,433 $1,146
------ ------
LESS CHARGE-OFFS
Commercial loans (210) (34)
Consumer loans (9) (10)
PLUS RECOVERIES
Commercial loans 4
Consumer loans 7 11
------ ------
Net charge-offs (19) (33)
------ ------
PLUS PROVISION FOR LOAN LOSSES 252 144
------ ------
BALANCE, END OF PERIOD $1,666 $1,257
====== ======
</TABLE>
8
<PAGE>
The following table is a summary of nonaccrual, past due and restructured debt.
<TABLE>
<CAPTION>
June 30, 1998
------------------------------------
<S> <C> <C> <C>
Past Due
90 Days
Nonaccrual Still Restructured
Loans Accruing Debt
----------- ----------- ------------
(Dollars in Thousands)
------------------------------------
Real estate loans $ 54 $442 $ -
Commercial loans - - -
Consumer loans 13 8 -
----------- ----------- ------------
Total $ 67 $450 $ -
==== ==== ====
June 30, 1997
------------------------------------
Past Due
90 Days
Nonaccrual Still Restructured
Loans Accruing Debt
----------- ----------- ------------
(Dollars in Thousands)
------------------------------------
Real estate loans $ - $124 $ -
Commercial loans - 8 -
Consumer loans - 59 -
==== ==== ====
Total $ - $191 $ -
==== ==== ====
</TABLE>
The Company's policy is to discontinue the accrual of interest income when, in
the opinion of management, collection of such interest becomes doubtful. This
status is determined when; (1) there is a significant deterioration in the
financial condition of the borrower and full repayment of principal and interest
is not expected; and (2) the principal or interest is more than ninety days past
due, unless the loan is both well-secured and in the process of collection.
Accrual of interest on such loans is resumed when, in management's judgment, the
collection of interest and principal becomes probable.
Loans classified for regulatory purposes as loss, doubtful, substandard, or
special mention that have not been included in the table above do not represent
or result from trends or uncertainties which management reasonably expects will
materially impact future operating results, liquidity or capital resources.
These classified loans do not represent material credits about which management
is aware of any information which causes management to have serious doubts as to
the ability of such borrowers to comply with the loan repayment terms.
Other income for the three months ended June 30, 1998 increased by $237,000 or
107% compared to the same period in 1997. The increase in other income is
primarily due to increases in mortgage origination fees of $46,000 and SBA loan
premiums of $131,000. Other income for the six months ended June 30, 1998
increased by $333,000 or 73.5% compared to the same period in 1997. The
increase in other income is primarily due to increases in mortgage origination
fees of $121,000 and SBA loan premiums of $141,000.
9
<PAGE>
Other expenses increased by approximately $429,000 or 37% for the three month
period ended June 30, 1998 compared to the same period in 1997. The increase is
due primarily to an increase in salaries and employee benefits of $243,000.
Other expenses increased by approximately $776,000 or 34.9% for the six month
period ended June 30, 1998 compared to the same period in 1997. The increase is
due primarily to an increase in salaries and employee benefits of $443,000 which
can be partially attributed to an increase of full time employees to 83 in 1998
as compared to 63 in 1997. The significant increase in employees is due to the
opening of two new branches in the past two years. In addition, the Bank has
begun offering trust services and increased the activity in their mortgage
operations, both which required additional experienced personnel. The increase
in occupancy and equipment expenses of $161,000 is also related to the opening
of two branches within the past two years. The increase in other operating
expenses of $172,000 is not related to any one significant item, but includes
normal increases in operating expenses.
Income tax expense decreased by $57,000 for the three months ended June 30, 1998
compared to the three months ended June 30, 1997. Income tax expense decreased
by $87,000 for the six months ended June 30, 1998 compared to the six months
ended June 30, 1997. The effective tax rate for the period in 1998 was 33%
compared to 35% for the same period in 1997.
Net income decreased for the three months ended June 30, 1998 by $46,000
compared to the same period in 1997. Net income decreased for the six months
ended June 30, 1998 by $62,000 compared to the same period in 1997. The
decrease in net income is attributable to increases in provision for loan losses
and other expense as explained above.
The Company is not aware of any other known trends, events or uncertainties,
other than the effect of events as described above, that will have or that are
reasonably likely to have a material effect on its liquidity, capital resources
or operations. The Company is also not aware of any current recommendations by
the regulatory authorities which, if they were implemented, would have such an
effect.
CAPABILITY OF THE BANK'S DATA PROCESSING SOFTWARE TO ACCOMMODATE THE YEAR 2000
The Company heavily relies upon computers for the daily conduct of their
business and for data processing generally. There is concern among industry
experts that commencing on January 1, 2000, computers will be unable to "read"
the new year and there may be widespread computer malfunctions.
The Company has conducted a comprehensive review of its computer systems,
programs, applications, and other electronic components used in the operations
of the Company to identify the areas that could be affected by the Year 2000
issue, and has developed a remediation plan to resolve any identified non-
compliant component. This is a continuing process as testing will be performed
throughout the remainder of 1998 and 1999. Based on the review of computer and
other components, management does not believe the cost of remediation will be
material to the Company's financial statements, although there can be no
assurances in this regard.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The first annual meeting of the Shareholders of GB&T Bancshares, Inc.
was held on June 8, 1998. The meeting had been called pursuant to
written notice for the purpose of acting on (1) Election of directors
(2) Approval of GB&T Bancshares, Inc. Stock Option Plan of 1997 and
(3) To amend the Articles of Incorporation to increase the authorized
common stock from 2,000,000 to 10,000,000 shares. The results of the
voting were as follows:
FOR AGAINST ABSTAIN
--------- ------- -------
Item 1 1,322,836 0 10,200
Item 2 1,157,748 13,336 161,952
Item 3 1,319,428 9,008 4,600
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits.
27. Financial Data Schedule
(b) Reports on Form 8-K.
On May 5, 1998 GB&T Bancshares, Inc. filed a Form 8-K to report
the formation of GB&T Bancshares, Inc. on April 24, 1998 through
the merger of 500 Interim Parkway Corporation and Gainesville Bank
& Trust. The securities issued to security holders of the Company
in connection with the merger are deemed registered under Section
12(b) of the Act and the Company is the successor issuer to the
Bank.
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
GB&T BANCSHARES, INC.
DATE: August 11, 1998 BY: /s/ Richard A. Hunt
------------------------------- --------------------------------------
Richard A. Hunt
President and Chief Executive Officer
DATE: August 11, 1998 BY: /s/ Gregory L. Hamby
------------------------------- --------------------------------------
Gregory L. Hamby
Chief Financial Officer
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from June 30,
1998 financials and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 6,700
<INT-BEARING-DEPOSITS> 741
<FED-FUNDS-SOLD> 10,265
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 31,988
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 123,698
<ALLOWANCE> 1,666
<TOTAL-ASSETS> 180,951
<DEPOSITS> 161,127
<SHORT-TERM> 3,482
<LIABILITIES-OTHER> 1,839
<LONG-TERM> 0
8,381
0
<COMMON> 0
<OTHER-SE> 6,122
<TOTAL-LIABILITIES-AND-EQUITY> 180,951
<INTEREST-LOAN> 6,224
<INTEREST-INVEST> 864
<INTEREST-OTHER> 327
<INTEREST-TOTAL> 7,415
<INTEREST-DEPOSIT> 3,705
<INTEREST-EXPENSE> 3,752
<INTEREST-INCOME-NET> 3,663
<LOAN-LOSSES> 252
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,002
<INCOME-PRETAX> 1,195
<INCOME-PRE-EXTRAORDINARY> 1,195
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 806
<EPS-PRIMARY> .48
<EPS-DILUTED> .46
<YIELD-ACTUAL> 4.65
<LOANS-NON> 67
<LOANS-PAST> 450
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,433
<CHARGE-OFFS> 30
<RECOVERIES> 11
<ALLOWANCE-CLOSE> 1,666
<ALLOWANCE-DOMESTIC> 1,666
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,666
</TABLE>
