<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 March 31, 1995
[ ] Transition report under Section 13 or 15(d) of the
Exchange Act.
For the transition period from to .
Commission file number 0-20099
SOUTHWEST GEORGIA FINANCIAL CORPORATION
(Exact Name Of Small Business Issuer as specified in its Charter)
Georgia 58-1392259
(State Or Other Jurisdiction Of (I.R.S. Employer
Incorporation Or Organization) Identification No.)
201 FIRST STREET, S.E., MOULTRIE, GEORGIA 31768
Address Of Principal Executive Offices
(912) 985-1120
Issuer's Telephone Number, Including Area Code
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
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date of the period covered by
this report.
Class Outstanding At April 30, 1995
Common Stock, $1 Par Value 1,500,000
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following financial statements are provided for Southwest Georgia Financial
Corporation as required by this Item 1.
a. Consolidated balance sheets - March 31, 1995 and December 31,
1994.
b. Consolidated statements of income - for the three months ended
March 31, 1995 and 1994.
c. Consolidated statements of cash flows - for the three months
ended March 31, 1995 and 1994.
1
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
__________
<CAPTION>
March 31, December 31,
1995 1994
<S> <C> <C>
ASSETS
Cash and due from banks $ 7,738,156 $ 8,683,397
Interest-bearing deposits with banks 6,022,648 3,193,994
Investment securities held to maturity:
Taxable (market value $67,039,655
and $61,031,811) 67,743,129 63,092,559
Tax exempt (market value $526,538
and $520,594) 500,000 500,000
Total investment securities 68,243,129 63,592,559
Other short-term investments 1,490,000 2,695,000
Loans 116,025,145 118,531,691
Less: Unearned income ( 229,253) ( 236,236)
Allowance for loan losses ( 2,032,881) ( 2,028,323)
Loans, net 113,763,011 116,267,132
Premise and equipment 2,638,125 2,566,559
Other assets 7,248,937 5,447,992
Total assets $ 207,144,006 $ 202,446,633
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 18,902,689 $ 21,188,512
Interest bearing 156,054,716 149,026,919
Total deposits 174,957,405 170,215,431
Short-term borrowings 3,803,000 4,738,000
Long-term borrowings 8,000,000 8,000,000
Accounts payable and accrued liabilities 1,802,688 1,786,178
Total liabilities 188,563,093 184,739,609
Stockholders' equity:Common stock -
par value $1 authorized
5,000,000 shares; issued 1,500,000
shares 1,500,000 1,500,000
Surplus 1,913,217 1,913,216
Retained earnings 17,707,288 16,833,400
Total 21,120,505 20,246,616
Treasury stock - 230,872 shares for
1995 and 1994 at cost ( 2,539,592) ( 2,539,592)
Total stockholders' equity 18,580,913 17,707,024
Total liabilities and
stockholders' equity $ 207,144,006 $ 202,446,633
</TABLE>
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
__________
<CAPTION>
For The Three Months
Ended March 31,
1995 1994
<S> <C> <C>
Interest income:Interest and fees on loans $ 2,993,504 $ 2,578,316
Interest and dividends on
investment securities:
Taxable 1,052,947 920,473
Tax exempt 9,375 9,375
Interest on other
short-term investments 113,244 79,564
Total interest income 4,169,070 3,587,728
Interest expense:
Deposits 1,524,478 1,245,711
Other borrowings 166,620 190,770
Total interest expense 1,691,098 1,436,481
Net interest income 2,477,972 2,151,247
Provision for loan losses 30,000 30,000
Net interest income after provision
for possible loan losses 2,447,972 2,121,247
Other income:
Service charges on deposit accounts 203,942 186,813
Other 185,223 232,671
Total other income 389,165 419,484
Other expense:Salary and employee benefits 826,035 732,639
Net occupancy and equipment expense 149,262 149,900
Computer expense 71,479 71,165
Other operating expenses 477,571 407,039
Total other expenses 1,524,347 1,360,743
Income before income tax expense 1,312,790 1,179,988
Income tax expense 438,900 442,800
Net income $ 873,890 $ 737,188
Income per share based on weighted
average outstanding shares:
Weighted average outstanding shares 1,269,128 1,264,768
Net income $ .69 $ .58
</TABLE>
3
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
__________
<CAPTION>
For The Three Months Ended
March 31,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 873,890 $ 737,188
Adjustments to reconcile net income to
net cash provided by operatingactivities:
Provision for loan losses 30,000 30,000
Depreciation 73,302 78,099
Net loss on disposal of assets 5,000 -
Amortization 20,364 135,555
Changes in:
Other assets (1,861,388) 182,992
Other liabilities 16,510 ( 477,596)
Net cash provided (required) by
operating activities ( 842,322) 686,238
Investing activities:
Proceeds from maturing investment
securities 3,250,000 3,000,000
Purchase of investment securities (7,920,934) (6,077,969)
Decrease (increase) in short-term
investments (1,623,654) 3,055,000
Net decrease (increase) in loans 2,499,563 (1,799,602)
Purchase of premise and equipment ( 114,868) ( 45,723)
Net cash used for
investing activities (3,909,893) (1,868,294)
Financing activities:
Net increase (decrease) in
demand deposits (2,285,823) ( 916,137)
Net increase (decrease) in
interest bearing deposits 7,027,797 536,799
Net increase (decrease) in
short-term borrowings ( 935,000) 912,355
Net cash provided by financing
activities 3,806,974 533,017
Net decrease in cash and
due from banks ( 945,241) ( 649,039)
Cash and due from banks - beginning
of period 8,683,397 8,407,861
Cash and due from banks - end of period $ 7,738,156 $ 7,758,822
</TABLE>
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SOUTHWEST GEORGIA FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
_________
Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with the instructions to Form 10-QSB and
therefore do not include all information and footnotes necessary for
a fair presentation of financial position, results of operations, and
changes in financial position in conformity with generally accepted
accounting principles.
The interim financial statements furnished reflect all adjustments
which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods presented.
5
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Corporation's net income before taxes for the three month period
of 1995 was $1.3 million compared to $1.2 million for the same period in
1994. This $133 thousand or 11.3 percent increase in earnings before taxes
is primarily attributable to increases in net interest income partially
offset by increases in non-interest expenses. The Company has acquired a
branch office in Newton, Georgia during December 1994 which have attributed
to most of the increases in 1995 compared to 1994.
Total interest income increased $581 thousand comparing the first
three months in 1995 to the same period in 1994. The majority of the
increase in interest income occurred in interest on commercial and
agricultural loans. The $374 thousand increase in interest income on
commercial and agricultural loans primarily relates to a $3.2 million
growth in the average volume of commercial and agricultural loans. The
total yield on the loan portfolio increased 98 basis points for the first
three months of 1995 compared to the same period in 1994. This increase is
attributable to the rise in the rates on the Company's variable and
adjustable rate loans which are tied to an index rate. The prime rate has
increased three percent from a year ago.
The total interest expense increased $255 thousand or 17.7 percent in
the first three months of 1995 compared to the same period in 1994.
Interest on deposits increased $279 thousand or 22.4 percent for the first
three months in 1995 compared to the same three months in 1994. This
increase in total interest expense is primarily related to a growth of
of $9 million in average volume of interest-bearing liabilities in 1995
compared to 1994. The rate on interest-bearing liabilities increased 43
basis points comparing the first quarter of 1995 to the same period in
1994.
Interest expense on other borrowings decreased $24 thousand for the
first three months of 1995 compared to the same period in 1994. This
decrease in interest expense on other borrowings is the result of lower
average volumes of Federal funds purchased and securities sold under
repurchase agreements.
Other income decreased $30 thousand or 7.2 percent for the first three
months of 1995 compared to the same period of a year ago. This decrease in
other non-interest income primarily relates to the discount accretion on
purchased loans.
Total other expenses increased $163 thousand or 12 percent for the
first three months of 1995 compared to the same period in 1994. This
increase in other non-interest expenses primarily resulted from increases
in salary and employee benefits, FDIC assessment, legal fees, supplies,
postage and telephone expenses. All these increases were primarily due to
the operations of the Baker County branch acquired in December 1994.
Management will continue to monitor expenses closely in an effort to
achieve all cost efficiencies available.
6
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PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits - Exhibit 27
b. There have been no reports filed on Form 8-K for the
quarter ended March 31, 1995.
7
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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.
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Date: May 8, 1995 BY: s/George R. Kirkland
GEORGE R. KIRKLAND
SENIOR VICE-PRESIDENT
FINANCIAL AND ACCOUNTING OFFICER
8
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 7738
<INT-BEARING-DEPOSITS> 6023
<FED-FUNDS-SOLD> 1490
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 68243
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 116025
<ALLOWANCE> 2033
<TOTAL-ASSETS> 207144
<DEPOSITS> 174957
<SHORT-TERM> 3803
<LIABILITIES-OTHER> 1803
<LONG-TERM> 8000
<COMMON> 1500
0
0
<OTHER-SE> 17081
<TOTAL-LIABILITIES-AND-EQUITY> 207144
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<INTEREST-DEPOSIT> 1524
<INTEREST-EXPENSE> 1691
<INTEREST-INCOME-NET> 2478
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1524
<INCOME-PRETAX> 1313
<INCOME-PRE-EXTRAORDINARY> 1313
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 874
<EPS-PRIMARY> .69
<EPS-DILUTED> .69
<YIELD-ACTUAL> 5.15
<LOANS-NON> 196
<LOANS-PAST> 279
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<LOANS-PROBLEM> 1030
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