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, 1996
[ ] 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, 1996
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, 1996 and December 31,
1995.
b. Consolidated statements of income - for the three months ended
March 31, 1996 and 1995.
c. Consolidated statements of cash flows - for the three months
ended March 31, 1996 and 1995.
1
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
__________
<CAPTION>
March 31, December 31,
1996 1995
ASSETS
<S> <C> <C>
Cash and due from banks $ 5,387,783 $ 7,645,411
Interest-bearing deposits with banks 2,564,130 4,416,595
Investment securities held to maturity:
Taxable (market value $67,039,655
and $61,031,811) 70,909,766 70,827,387
Tax exempt (market value $526,538
and $520,594) 500,000 500,000
Total investment securities 71,409,766 71,327,387
Other short-term investments 2,130,000 85,000
Loans 114,973,790 116,769,885
Less: Unearned income ( 162,131) ( 177,172)
Allowance for loan losses ( 1,947,912) ( 2,139,532)
Loans, net 112,863,747 114,453,181
Premise and equipment 3,293,411 3,271,607
Other assets 6,132,792 6,164,757
Total assets $ 203,781,629 $ 207,363,938
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 17,974,997 $ 21,509,590
Interest bearing 151,628,821 152,300,366
Total deposits 169,603,818 173,809,956
Short-term borrowings 3,333,360 3,310,000
Long-term borrowings 8,000,000 8,000,000
Accounts payable and accrued liabilities 1,932,865 2,239,058
Total liabilities 182,870,043 187,359,014
Stockholders' equity:
Common stock - par value $1 authorized
5,000,000 shares; issued 1,500,000
shares 1,500,000 1,500,000
Surplus 1,961,067 1,961,067
Retained earnings 19,898,888 18,992,226
Total 23,359,955 22,453,293
Treasury stock - 222,579 shares for
1996 and 1995 at cost ( 2,448,369) ( 2,448,369)
Total stockholders' equity 20,911,586 20,004,924
Total liabilities and
stockholders' equity $ 203,781,629 $ 207,363,938
</TABLE> 2
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
__________
<CAPTION>
For The Three Months
Ended March 31,
1996 1995
<S> <C> <C>
Interest income:Interest and fees on loans $ 2,993,101 $ 2,993,504
Interest and dividends on
investment securities:
Taxable 1,127,097 1,052,947
Tax exempt 9,375 9,375
Interest on other
short-term investments 84,650 113,244
Total interest income 4,214,223 4,169,070
Interest expense:
Deposits 1,651,874 1,524,478
Other borrowings 169,434 166,620
Total interest expense 1,821,308 1,691,098
Net interest income 2,392,915 2,477,972
Provision for loan losses 45,000 30,000
Net interest income after provision
for possible loan losses 2,347,915 2,447,972
Other income:
Service charges on deposit accounts 204,201 203,942
Other 282,744 185,223
Total other income 486,945 389,165
Other expense:Salary and employee benefits 871,980 826,035
Net occupancy and equipment expense 166,230 149,262
Computer expense 80,968 71,479
Other operating expenses 422,221 477,571
Total other expenses 1,541,399 1,524,347
Income before income tax expense 1,293,461 1,312,790
Income tax expense 386,800 438,900
Net income $ 906,661 $ 873,890
Income per share based on weighted
average outstanding shares:
Weighted average outstanding shares 1,277,421 1,269,128
Net income $ .71 $ .69
</TABLE>
3
<PAGE>
<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
For The Three Months Ended
March 31,
1996 1995
<S> <C> <C>
Operating activities:
Net income $ 906,661 $ 873,890
Adjustments to reconcile net income to
net cash provided by operating
activities:
Provision for loan losses 45,000 30,000
Depreciation 84,809 73,302
Net (gain) loss on disposal of assets ( 6,948) 5,000
Amortization 17,409 20,364
Changes in:
Other assets ( 25,701) (1,861,388)
Other liabilities ( 306,193) 16,510
Net cash provided (required) by
operating activities 715,037 ( 842,322)
Investing activities:
Proceeds from maturing investment
securities 2,000,000 3,250,000
Purchase of investment securities (2,099,788) (7,920,934)
Increase in short-term investments ( 192,535) (1,623,654)
Net decrease in loans 1,544,434 2,499,563
Proceeds from sale of other assets 64,615 -
Purchase of premise and equipment ( 106,612) ( 114,868)
Net cash used for
investing activities 1,210,114 (3,909,893)
Financing activities:
Net decrease in demand deposits (3,534,593) (2,285,823)
Net increase (decrease) in
interest bearing deposits ( 671,546) 7,027,797
Net increase (decrease) in
short-term borrowings 23,360 ( 935,000)
Net cash provided by financing
activities (4,182,779) 3,806,974
Net decrease in cash and
due from banks (2,257,628) ( 945,241)
Cash and due from banks - beginning
of period 7,645,411 8,683,397
Cash and due from banks - end of period $ 5,387,783 $ 7,738,156
</TABLE>
4
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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
<PAGE>
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
1996 was $1.29 million compared to $1.31 million for the same period in 1995.
This $19 thousand or 1.5 percent decrease in earnings before taxes is primarily
attributable to increases in net interest expense and the provisions for loan
losses partially offset by an increase in other income.
Total interest income increased $45 thousand comparing the first three
months in 1996 to the same period in 1995. The majority of the increase in
interest income occurred in interest and dividends on investment securities
slightly offset by adecrease in interest income on other short-term investments.
The $74 thousand increase in interest income on investment securities primarily
relates to a $6.0 million growth in the average volume of investment securities.
The total yield on the investment portfolio decreased 14 basis points for the
first three months of 1996 compared to the same period in 1995. This decrease
is attributable to maturing investments being reinvested at lower rates.
The total interest expense increased $130 thousand or 7.7 percent in the
first three months of 1996 compared to the same period in 1995. Interest on
deposits increased $127 thousand or 8.4 percent for the first three months in
1996 compared to the same three months in 1995. This increase in total interest
expense is primarily related to shifting of deposits from savings and NOW
accounts to CD's. The rate on interest-bearing liabilities increased 27 basis
points comparing the first quarter of 1996 to the same period in 1995.
Interest expense on other borrowings increased nearly $3 thousand for the
first three months of 1996 compared to the same period in 1995. This increase
in interest expense on other borrowings is the result of higher rates on
securities sold under repurchase agreements.
Other income increased $98 thousand or 25.1 percent for the first three
months of 1996 compared to the same period a year ago. This increase in other
non-interest income primarily relates to increases in security sales
commissions, income from OREO, insurance commissions, and other miscellaneous
income.
Total other expenses increased $17 thousand or 1.1 percent for the first
three months of 1996 compared to the same period in 1995. This increase in
other non-interest expenses primarily resulted from increases in salary and
employee benefits partially offset by decreases in the FDIC assessment, credit
collection and recovery, legal fees, and other operating expenses. Management
will continue to monitor expenses closely in an effort to achieve all cost
efficiencies available.
6
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits - None
b. There have been no reports filed on Form 8-K for the quarter
ended March 31, 1996.
7
<PAGE>
<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.
SOUTHWEST GEORGIA FINANCIAL CORPORATION
Date: May 8, 1996 BY: s/George R. Kirkland
GEORGE R. KIRKLAND
SENIOR VICE-PRESIDENT
FINANCIAL AND ACCOUNTING OFFICER
8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 5388
<INT-BEARING-DEPOSITS> 2564
<FED-FUNDS-SOLD> 2130
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 71410
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 114974
<ALLOWANCE> 1948
<TOTAL-ASSETS> 203782
<DEPOSITS> 169604
<SHORT-TERM> 3333
<LIABILITIES-OTHER> 1933
<LONG-TERM> 8000
<COMMON> 1500
0
0
<OTHER-SE> 19412
<TOTAL-LIABILITIES-AND-EQUITY> 203782
<INTEREST-LOAN> 2993
<INTEREST-INVEST> 1136
<INTEREST-OTHER> 85
<INTEREST-TOTAL> 4214
<INTEREST-DEPOSIT> 1652
<INTEREST-EXPENSE> 1821
<INTEREST-INCOME-NET> 2393
<LOAN-LOSSES> 45
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<EXPENSE-OTHER> 1541
<INCOME-PRETAX> 1293
<INCOME-PRE-EXTRAORDINARY> 1293
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 907
<EPS-PRIMARY> .71
<EPS-DILUTED> .71
<YIELD-ACTUAL> 5.00
<LOANS-NON> 122
<LOANS-PAST> 169
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 479
<ALLOWANCE-OPEN> 2140
<CHARGE-OFFS> 257
<RECOVERIES> 21
<ALLOWANCE-CLOSE> 1948
<ALLOWANCE-DOMESTIC> 1186
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 762
</TABLE>
