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 September 30, 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 September 30, 1995
Common Stock, $1 Par Value 1,500,000
<PAGE>
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 - September 30, 1995
and December 31, 1994.
b. Consolidated statements of income - for the nine
months and the three months ended September 30,
1995 and 1994.
c. Consolidated statements of cash flows - for the
nine months ended September 30, 1995 and 1994.
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
__________
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Cash and due from banks $ 6,657,455 $ 8,683,397
Interest-bearing deposits with banks 1,708,490 3,193,994
Investment securities held to maturity:
Taxable (market value $65,318,587
and $61,031,811) 64,661,563 63,092,559
Tax exempt (market value $525,204
and $520,594) 500,000 500,000
Total investment securities 65,161,563 63,592,559
Other short-term investments 4,040,000 2,695,000
Loans 113,503,276 118,531,691
Less: Unearned income ( 187,888) ( 236,236)
Allowance for loan losses ( 2,009,040) ( 2,028,323)
Loans, net 111,306,348 116,267,132
Premise and equipment 3,198,647 2,566,559
Other assets 7,260,314 5,447,992
Total assets $ 199,332,817 $ 202,446,633
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 17,844,596 $ 21,188,512
Interest bearing 147,883,474 149,026,919
Total deposits 165,728,070 170,215,431
Short-term borrowings 3,810,000 4,738,000
Long-term borrowings 8,000,000 8,000,000
Accounts payable and accrued
liabilities 1,891,285 1,786,178
Total liabilities 179,429,355 184,739,609
Stockholders' equity:
Common stock - par value $1 authorized
5,000,000 shares; issued 1,500,000
shares 1,500,000 1,500,000
Surplus 1,947,161 1,913,216
Retained earnings 18,931,180 16,833,400
Total 22,378,341 20,246,616
Treasury stock - (224,989 in 1995
and 230,872 in 1994) shares at cost ( 2,474,879) ( 2,539,592)
Total stockholders' equity 19,903,462 17,707,024
Total liabilities and
stockholders' equity $ 199,332,817 $ 202,446,633
</TABLE>
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
__________
<CAPTION>
For The Nine Months For The Three Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on
loans $ 9,086,190 $ 8,036,494 $ 3,066,221 $ 2,724,358
Interest and dividends
on investment
securities:
Taxable 3,192,519 2,767,129 1,054,510 888,181
Tax exempt 28,125 28,125 9,375 9,375
Interest on other
short-term investments 264,277 149,906 62,447 45,134
Total interest
income 12,571,111 10,981,654 4,192,553 3,667,048
Interest expense:
Deposits 4,844,967 3,726,250 1,690,240 1,252,330
Other borrowings 514,996 559,476 177,529 183,425
Total interest
expense 5,359,963 4,285,726 1,867,769 1,435,755
Net interest income 7,211,148 6,695,928 2,324,784 2,231,293
Provision for loan losses 90,000 90,000 30,000 30,000
Net interest income
after provision
for possible
loan losses 7,121,148 6,605,928 2,294,784 2,201,293
Other income:
Service charges on
deposit accounts 616,590 574,631 202,530 195,159
Other 645,262 529,657 259,408 139,551
Total other income 1,261,852 1,104,288 461,938 334,710
Other expense:
Salary and employee
benefits 2,495,514 2,246,141 837,209 755,457
Net occupancy and
equipment expense 481,056 454,036 179,092 150,067
Computer expense 228,201 209,363 84,515 70,963
Other operating expense 1,432,646 1,266,646 465,105 419,250
Total other expense 4,637,417 4,176,186 1,565,921 1,395,737
Income before income tax
expense 3,745,583 3,534,030 1,190,801 1,140,266
Provision for income taxes 1,266,500 1,305,700 410,100 421,600
Net income $ 2,479,083 $ 2,228,330 $ 780,701 $ 718,666
Income per share based on
weighted average
outstanding shares:
Weighted average
outstanding shares 1,271,531 1,265,767 1,273,794 1,267,004
Net income $ 1.95 $ 1.76 $ .61 $ .57
Dividends per share .30 .26 .00 .00
</TABLE>
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
__________
<CAPTION>
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 2,479,083 $ 2,228,330
Adjustments to reconcile net income to
net cash provided by operating
activities:
Provision for loan losses 90,000 90,000
Depreciation 237,906 234,297
Net loss on disposal of assets 14,171 -
Amortization 79,417 389,804
Changes in:
Other assets ( 1,935,775) ( 450,392)
Other liabilities 105,107 ( 483,827)
Net cash provided by operating
activities 1,069,909 2,008,212
Investing activities:
Proceeds from maturing investment
securities 10,250,000 9,000,000
Purchase of investment securities (11,898,422) (10,076,500)
Decrease in short-term investments 140,504 4,145,000
Net decrease (increase) in loans 4,980,067 ( 397,087)
Purchase of premise and equipment ( 869,994) ( 122,874)
Net cash provided by investing
activities 2,602,155 2,548,539
Financing activities:
Net decrease in demand deposits ( 3,343,916) ( 502,701)
Net increase (decrease) in interest
bearing deposits ( 1,143,445) 476,319
Net decrease in short-term borrowings ( 928,000) ( 1,530,645)
Dividends ( 381,303) ( 329,421)
Proceeds from sale of Treasury stock 98,658 33,674
Net cash provided by financing
activities ( 5,698,006) ( 1,852,774)
Increase (decrease) in cash and due
from banks ( 2,025,942) 2,703,977
Cash and due from banks - beginning
of period 8,683,397 8,407,861
Cash and due from banks - end of period $ 6,657,455 $ 11,111,838
</TABLE>
<PAGE>
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.
<PAGE>
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS - SEPTEMBER 30, 1995
The Corporation's net income before taxes for the nine-
month period of 1995 is $3.7 million compared to $3.5
million for the same period in 1994. This $212 thousand or
6.0 percent increase in earnings is primarily attributable
to an increase in net interest income partially offset by
an increase in non-interest expenses. These year-to-year
increases occurred primarily from the operations of an
acquired branch in Newton, Georgia since December, 1994.
Total interest income increased $1.6 million comparing the
first nine months in 1995 to the same period in 1994. Over
half of this increase occurred in interest and fees on
commercial real estate and agricultural loans. The $888
thousand increase in income on commercial real estate and
agricultural loans primarily relates to higher rates on the
variable and adjustable rate loans which are tied to an
index rate. The prime rate has increased 2.75 percent from
the beginning of 1994 through September 1995. The average
commercial real estate and agricultural loan portfolio
yield increased 157 basis points compared to the same
period in 1994.
Interest income on investment securities increased $425
thousand for the first nine months of 1995 compared to the
same period in 1994. This increase is primarily related to
volume increases. The average investment securities
balances are approximately $7.2 million higher in 1995
compared to the same period in 1994.
The total interest expense increased $1.1 million or 25
percent in the first nine months of 1995 compared to the
same period in 1994. Over this period, the average
balances on interest-bearing deposits grew $13.4 million or
8.8 percent. This increase in interest expense is related
to the growth in the average balances on interest-bearing
deposits and to rising rates. The rate of interest-bearing
deposits increased 65 basis points in 1995 compared to the
same period in 1994.
Interest expense on other borrowing decreased $44 thousand
for the nine months of 1995 compared to the same period in
1994. This decrease in interest on other borrowing is
primarily due to $1.9 million decrease in average volume of
securities sold under agreement to repurchase.
Other income increased $158 thousand or 14.3 percent for
the first nine months of 1995 compared to the same period a
year ago. This increase in other non-interest income
primarily relates to income received from other real estate
owned properties, service charges on deposit accounts, and
insurance commissions partially offset by a decrease in
discount accretion on purchased loans.<PAGE>
<PAGE>
Total other expenses increased $461 thousand for the first
nine months of 1995 compared to the same period in 1994.
This increase in other non-interest expenses occurred
primarily in personnel expenses. Other increases in other
operating expenses occurred in charitable contributions,
legal fees, and various other expenses relating to the
operations of the Baker County Branch acquired in December
1994. These increases were partially offset by decreases
in FDIC assessment and bank examination fees. Management
will continue to monitor expenses closely in an effort to
achieve all cost efficiencies available.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Date: November 1, 1995 BY: s/George R. Kirkland
GEORGE R. KIRKLAND
SENIOR VICE-PRESIDENT
FINANCIAL AND ACCOUNTING OFFICER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> QTR-3
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 6657
<INT-BEARING-DEPOSITS> 1708
<FED-FUNDS-SOLD> 4040
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 65162
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 113315
<ALLOWANCE> 2009
<TOTAL-ASSETS> 199333
<DEPOSITS> 165728
<SHORT-TERM> 3810
<LIABILITIES-OTHER> 1891
<LONG-TERM> 8000
<COMMON> 1500
0
0
<OTHER-SE> 18404
<TOTAL-LIABILITIES-AND-EQUITY> 199333
<INTEREST-LOAN> 9086
<INTEREST-INVEST> 3193
<INTEREST-OTHER> 292
<INTEREST-TOTAL> 12571
<INTEREST-DEPOSIT> 4845
<INTEREST-EXPENSE> 5360
<INTEREST-INCOME-NET> 7211
<LOAN-LOSSES> 90
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4637
<INCOME-PRETAX> 3746
<INCOME-PRE-EXTRAORDINARY> 3746
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2479
<EPS-PRIMARY> 1.95
<EPS-DILUTED> 1.95
<YIELD-ACTUAL> 5.21
<LOANS-NON> 118
<LOANS-PAST> 136
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 211
<ALLOWANCE-OPEN> 2028
<CHARGE-OFFS> 156
<RECOVERIES> 47
<ALLOWANCE-CLOSE> 2009
<ALLOWANCE-DOMESTIC> 1461
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 548
</TABLE>
