<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, 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 July 31, 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 - June 30, 1995 and
December 31, 1994.
b. Consolidated statements of income - for the six
months and the three months ended June 30, 1995
and 1994.
c. Consolidated statements of cash flows - for the
six months ended June 30, 1995 and 1994.
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1995 AND DECEMBER 31, 1994
__________
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Cash and due from banks $ 6,841,222 $ 8,683,397
Interest-bearing deposits with banks 3,794,835 3,193,994
Investment securities held to maturity:
Taxable (market value $66,669,999
and $61,031,811) 65,698,942 63,092,559
Tax exempt (market value $528,968
and $520,594) 500,000 500,000
Total investment securities 66,198,942 63,592,559
Other short-term investments 1,125,000 2,695,000
Loans 117,926,134 118,531,691
Less: Unearned income ( 216,527) ( 236,236)
Allowance for loan losses ( 1,995,421) ( 2,028,323)
Loans, net 115,714,186 116,267,132
Premise and equipment 3,209,608 2,566,559
Other assets 7,118,617 5,447,992
Total assets $ 204,002,410 $ 202,446,633
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 19,925,506 $ 21,188,512
Interest bearing 151,446,393 149,026,919
Total deposits 171,371,899 170,215,431
Short-term borrowings 3,610,000 4,738,000
Long-term borrowings 8,000,000 8,000,000
Accounts payable and accrued
liabilities 1,964,831 1,786,178
Total liabilities 184,946,730 184,739,609
Stockholders' equity:
Common stock - par value $1 authorized
5,000,000 shares; issued 1,500,000
shares 1,500,000 1,500,000
Surplus 1,924,081 1,913,216
Retained earnings 18,150,478 16,833,400
Total 21,574,559 20,246,616
Treasury stock - (228,989 in 1995
and 230,872 in 1994) shares at cost ( 2,518,879) ( 2,539,592)
Total stockholders' equity 19,055,680 17,707,024
Total liabilities and
stockholders' equity $ 204,002,410 $ 202,446,633
</TABLE>
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
__________
<CAPTION>
For The Six Months For The Three Months
Ended June 30, Ended June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income:
Interest and fees
on loans $ 6,019,969 $ 5,312,136 $ 3,026,465 $ 2,733,820
Interest and dividends on
investment securities:
Taxable 2,138,009 1,878,948 1,085,062 958,475
Tax exempt 18,750 18,750 9,375 9,375
Interest on other
short-term investments 201,830 104,772 88,586 25,208
Total interest income 8,378,558 7,314,606 4,209,488 3,726,878
Interest expense:
Deposits 3,154,727 2,473,920 1,630,249 1,228,209
Other borrowings 337,467 376,051 170,847 185,281
Total interest
expense 3,492,194 2,849,971 1,801,096 1,413,490
Net interest income 4,886,364 4,464,635 2,408,392 2,313,388
Provision for loan losses 60,000 60,000 30,000 30,000
Net interest income
after provision
for possible
loan losses 4,826,364 4,404,635 2,378,392 2,283,388
Other income:
Service charges on
deposit accounts 414,060 379,472 210,118 192,659
Other 385,854 390,106 200,631 157,435
Total other income 799,914 769,578 410,749 350,094
Other expense:
Salary and employee
benefits 1,658,305 1,490,684 832,270 758,045
Net occupancy and
equipment expense 301,964 303,969 152,702 154,069
Computer expense 143,686 138,400 72,207 67,235
Other operating expense 967,541 847,396 489,970 440,357
Total other expense 3,071,496 2,780,449 1,547,149 1,419,706
Income before income tax
expense 2,554,782 2,393,764 1,241,992 1,213,776
Provision for income taxes 856,400 884,100 417,500 441,300
Net income $ 1,698,382 $ 1,509,664 $ 824,492 $ 772,476
Income per share based on
weighted average
outstanding shares:
Weighted average outstanding
shares 1,269,763 1,265,139 1,270,390 1,265,505
Net income $ 1.34 $ 1.19 $ .65 $ .61
Dividends per share .30 .26 .30 .26
</TABLE>
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
__________
<CAPTION>
Six Months Ended
June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 1,698,382 $ 1,509,664
Adjustments to reconcile net income to
net cash provided by operating
activities:
Provision for loan losses 60,000 60,000
Depreciation 146,704 156,198
Net loss on disposal of assets 17,410 -
Amortization 51,425 261,588
Changes in:
Other assets (1,780,937) 113,070
Other liabilities 178,654 ( 716,968)
Net cash provided (required) by
operating activities 371,638 1,383,552
Investing activities:
Proceeds from maturing investment
securities 7,250,000 6,000,000
Purchase of investment securities (9,907,809) (8,079,625)
Decrease on short-term investments 969,159 8,165,000
Net decrease (increase) in loans 585,847 (5,623,204)
Purchase of premise and equipment ( 789,753) ( 87,793)
Net cash used for
investing activities (1,892,556) 374,378
Financing activities:
Net increase (decrease) in demand
deposits (1,263,006) (1,128,893)
Net increase (decrease) in interest
bearing deposits 2,419,474 (2,649,309)
Net increase (decrease) in short-term
borrowings (1,128,000) 1,197,355
Dividends ( 381,303) ( 329,421)
Proceeds from sale of treasury stock 31,578 33,674
Net cash provided by
financing activities ( 321,257) (2,876,594)
Increase in cash and due from banks (1,842,175) (1,118,664)
Cash and due from banks - beginning
of period 8,683,397 8,407,861
Cash and due from banks - end of period $ 6,841,222 $ 7,289,197
</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.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS - JUNE 30, 1995
The Corporation's net income before taxes for the six month period of
1995 is $2.6 million compared to $2.4 million for the same period in 1994.
This $161 thousand or 7 percent increase in net earnings is attributable to
an increase in net interest income partially offset by an increase in non-
interest expenses. The Company has acquired a branch office in Newton,
Georgia during December, 1994 which has attributed to most of the increases
in 1995 compared to 1994.
Total interest income increased $1.1 million comparing the first six
months in 1995 to the same period in 1994. The majority of the increase in
interest income occurred primarily in interest and fees on commercial real
estate and agricultural loans. The $613 thousand increase in income on
commercial real estate and agricultural loans primarily relates to higher
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 the
beginning of 1994 through June, 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 $259 thousand for
the first six months of 1995 compared to the same period in 1994. This
increase relates to approximately $6.8 million higher average investment
securities balances for the comparable six month periods.
The total interest expense increased $642 thousand or 22.5 percent in
the first six months of 1995 compared to the same period in 1994. This
increase in interest expense is related to the growth in the average
balances on interest-bearing deposits of approximately $14.0 million or 10
percent comparing the six month period of 1995 to 1994. The rate on
interest-bearing liabilities increased 57 basis points in 1995 compared to
the same six month period in 1994.
Interest expense on other borrowings decreased $39 thousand for the
six months of 1995 compared to the same period in 1994. This decrease in
interest on other borrowings is primarily due to $2.2 million decrease in
average volume of securities sold under agreement to repurchase.
Other income increased $30 thousand or 3.9 percent for the first six
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, and service charges on deposit accounts partially offset
by a decrease in discount accretion on purchased loans.
Total other expenses increased $291 thousand for the first six months
of 1995 compared to the same period in 1994. This increase in other
non-interest expense primarily occurred in personnel related expenses.
Other increases in other operating expenses occurred in FDIC assessment,
legal fees, machine maintenance, postage, supplies, telephone, and travel
expenses. All of 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.<PAGE>
<PAGE>
<PAGE>
PART II - OTHER INFORMATION
__________
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) Date - April 18, 1995 - annual shareholders' meeting.
(b) Elected the following directors:
Albert W. Barber Richard L. Moss
Leo T. Barber, Jr. Lee C. Redding
John H. Clark Roy Reeves
Robert M. Duggan Jack Short
E. J. McLean, Jr. Johnny R. Slocumb
Glenn D. Moon
Director Emeritus:
Mrs. Kenneth V. Cope
J. Reeves Haley
Sam Sells, Jr.
Mrs. Hugh Turner
(c) There were no other matters voted on at the annual
shareholders' meeting.
Total votes cast for
slate of directors 1,053,476
Total votes cast against
slate of directors 1,814
Total shares voted 1,055,290
Percent of outstanding
stock 83.2%
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 June 30, 1995.
PAGE
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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: August 2, 1995 BY: s/George R. Kirkland
GEORGE R. KIRKLAND
SENIOR VICE-PRESIDENT
FINANCIAL AND ACCOUNTING OFFICER
9
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<CASH> 6841
<INT-BEARING-DEPOSITS> 3795
<FED-FUNDS-SOLD> 1125
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<INVESTMENTS-HELD-FOR-SALE> 66199
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<ALLOWANCE> 1995
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<INCOME-PRE-EXTRAORDINARY> 1242
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</TABLE>
