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, 1997
[ ] 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, 1997
Common Stock, $1 Par Value 3,000,000
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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, 1997 and
December 31, 1996.
b. Consolidated statements of income - for the three
months ended March 31, 1997 and 1996.
c. Consolidated statements of cash flows - for the three
months ended March 31, 1997 and 1996.
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
__________
<CAPTION>
March 31, December 31,
ASSETS 1997 1996
<S> <C> <C>
Cash and due from banks $ 6,513,983 $ 7,353,763
Interest-bearing deposits with banks 108,835 1,231,827
Federal funds sold 1,060,000 2,010,000
Securities to be held to maturity:
Taxable(market value $78,727,409 and $75,489,134) 78,826,039 74,980,199
Tax exempt (market value $503,329 and $507,952) 500,000 500,000
Total investment securities 79,326,039 75,480,199
Loans 119,310,150 116,365,754
Less: Unearned income ( 142,061) ( 156,871)
Allowance for loan losses ( 2,015,979) ( 2,008,655)
Loans, net 117,152,110 114,200,228
Premise and equipment, net 3,311,789 3,333,961
Other assets 5,802,346 5,873,453
Total assets $ 213,275,102 $ 209,483,431
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 21,718,785 $ 22,023,134
Other time accounts 154,129,206 150,845,940
Total deposits 175,847,991 172,869,074
Federal funds purchased and securities
sold under repurchase agreements 2,242,246 2,176,946
Other borrowed funds 1,500,000 1,500,000
Long-term debt 8,000,000 8,000,000
Other liabilities 2,588,447 2,424,097
Total liabilities 190,178,684 186,970,117
Stockholders' equity:
Common stock - par value $1 authorized
5,000,000 shares; issued 3,000,000 shares 3,000,000 3,000,000
Capital surplus 2,010,046 2,010,046
Retained earnings 20,502,021 19,918,917
Treasury stock - 439,209 shares for
1997 and 1996 at cost ( 2,415,649) ( 2,415,649)
Total stockholders' equity 23,096,418 22,513,314
Total liabilities and stockholders' equity $ 213,275,102 $ 209,483,431
</TABLE>
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
For The Three Months
Ended March 31,
1997 1996
<S> <C> <C>
Interest income:
Interest and fees on loans $ 3,078,209 $ 3,033,802
Interest and dividends on securities held to maturity:
Taxable 1,176,605 1,127,097
Tax exempt 9,375 9,375
Interest on other short-term investments 84,613 84,650
Total interest income 4,348,802 4,254,924
Interest expense:Deposits 1,630,735 1,651,874
Other borrowings 172,009 169,434
Total interest expense 1,802,744 1,821,308
Net interest income 2,546,058 2,433,616
Provision for loan losses 45,000 45,000
Net interest income after provision for loan losses 2,501,058 2,388,616
Noninterest income:
Service charges on deposit accounts 208,620 204,201
Fees for trust services 67,255 46,196
Other income 104,826 195,847
Total noninterest income 380,701 446,244
Noninterest expense:
Salaries and employee benefits 952,763 871,980
Occupancy expense 94,392 92,341
Equipment expense 108,824 73,889
Other operating expenses 503,496 503,189
Total noninterest expenses 1,659,475 1,541,399
Income before income taxes 1,222,284 1,293,461
Provision for income taxes 383,100 386,800
Net income $ 839,184 $ 906,661
Earnings per share of common stock:
Net income $ .33 $ .35
Dividends paid .10 .16
Weighted average shares outstanding 2,560,791 2,554,842
</TABLE>
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<TABLE>
SOUTHWEST GEORGIA FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
__________
<CAPTION>
For The Three Months
Ended March 31,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net income $ 839,184 $ 906,661
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 45,000 45,000
Depreciation 112,419 84,809
Net amortization and accretion of investment securities ( 46,561) 17,409
Net loss (gain) on sale and disposal of assets - ( 6,948)
Changes in:
Other assets 40,258 ( 25,701)
Other liabilities 164,350 ( 306,193)
Net cash provided by operating activities 1,154,650 715,037
Investing activities:
Proceeds from maturities of securities held to maturity 5,015,000 2,000,000
Purchase of securities held to maturity (8,814,279) (2,099,788)
Net change in other short-term investments 950,000 (2,045,000)
Net change in loans (2,996,882) 1,544,434
Purchase of premises and equipment ( 90,398) ( 106,612)
Proceeds from sales of other assets 31,000 64,615
Net (increase) decrease in interest
bearing deposits with banks 1,122,992 1,852,465
Net cash provided by (used for) investing activities (4,782,567) 1,210,114
Financing activities:
Net change in deposits 2,978,917 (4,206,139)
Net change in federal funds purchased and
securities sold under repurchase agreements 65,300 23,360
Cash dividends declared ( 256,080) -
Net cash provided by (required for)
financing activities 2,788,137 (4,182,779)
Increase (decrease) in cash and due from bank ( 839,780) (2,257,628)
Cash and due from banks - beginning of period 7,353,763 7,645,411
Cash and due from banks - end of period $ 6,513,983 $ 5,387,783
</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 interimperiods 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
1997 was $1.222 million compared to $1.293 million for the same period in
1996. This $71 thousand or 5.5 percent decrease in earnings before taxes is
primarily attributable to several nonrecurring income items in the first three
months of 1996 which, if excluded, would primarily result in flat earnings
year to year.
Total interest income increased $94 thousand comparing the first three
months in 1997 to the same period in 1996. The majority of the increase in
interest income occurred in interest and dividends on investment securities
and in interest and fees on loans. Increases in interest from both loans and
securities are related to the growth in average volume of loans and investment
securities.
The total interest expense decreased $19 thousand or 0.01 percent in the
first three months of 1997 compared to the same period in 1996. Over this
period, the average balances on interest bearing deposits grew more than $2
million or 1.40 percent. The decrease in interest expense is primarily
related to slight decreases in rates on time deposits and savings deposits.
The rate on time deposits decreased 9 basis points while the rate on savings
deposits declined 7 basis points comparing the first three months of 1997 to
the same period in 1996.
Other income decreased $66 thousand or 14.7 percent for the first three
months of 1997 compared to the same period a year ago. This decrease in other
noninterest income primarily relates to a decrease in income from insurance
commissions and other real estate owned.
Total other expenses increased $118 thousand or 7.7 percent for the
first three months of 1997 compared to the same period in 1996. This increase
in other noninterest expenses primarily resulted from increases in salary and
employee benefits, legal expense, equipment expense, and computer expense
partially offset by decreases in the FDIC assessment, travel and
entertainment, and amortization of premium on purchased deposits. 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, 1997.
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 9, 1997 BY: s/George R. Kirkland
GEORGE R. KIRKLAND
SENIOR VICE-PRESIDENT
FINANCIAL AND ACCOUNTING OFFICER
8
<PAGE>
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0
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