<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
____________________________
For quarter ended June 30, 1996 Commission file number 0-10853
----------------- -------
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
(Exact name of small business issuer as specified in its charter)
____________________________
GEORGIA 58-1458268
- ------------------------------ -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
40 NORTH MAIN STREET
P.O. BOX 878
STATESBORO, GEORGIA 30459
-------------------------------
(Address of Principal Executive
Offices, including Zip Code)
912-764-6611
-------------------------------
(Issuer's telephone number, including area code)
NOT APPLICABLE
----------------------------
(Former name, former address
and former fiscal year, if
changed since last report)
_____________________________
Check whether the issuer: (1) has 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 requirement 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.
COMMON STOCK, $1.00 PAR VALUE 2,661,711 SHARES AS OF JUNE 30, 1996
------------------------------------------------------------------------
<PAGE> 2
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-----------------------------
(thousands of dollars)
<S> <C> <C>
ASSETS
Cash and Due From Banks $ 8,085 $ 12,171
Interest Bearing Deposits in Other Banks 13,732 12,291
Federal Funds Sold 1,775 1,700
Investment Securities:
Available for Sale (Cost of $68,493 in 1996
and $48,909 in 1995) 67,752 49,364
Held to Maturity (Estimated Market Value
of $23,609 in 1996 and $36,658 in 1995) 23,544 35,778
Loans 182,952 181,880
Less: Unearned Interest (15) (24)
Allowance for Loan Losses (3,644) (3,345)
------- --------
Loans, Net 179,293 178,511
------- --------
Interest Receivable 4,506 4,467
Premises and Equipment, Net 4,205 3,791
Other Real Estate 386 307
Other Assets 2,437 1,821
-------- --------
TOTAL ASSETS $305,715 $300,201
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 28,903 $ 33,817
Interest Bearing:
NOW Accounts 49,631 40,257
Money Market Deposit Accounts 32,331 32,422
Savings 11,433 11,273
Time ($100,000 and above) 64,450 67,185
Other Time 75,083 73,323
-------- --------
Total Deposits 261,831 258,277
Other Borrowed Money 8,918 7,234
Interest Payable 2,645 2,859
Other Liabilities 730 1,005
-------- --------
Total Liabilities 274,124 269,375
-------- --------
Shareholders' Equity (Note 3):
Common Stock, 2,661,711 Shares Issued and Outstanding 2,662 2,662
Surplus 5,265 5,265
Retained Earnings 24,153 22,599
Net Unrealized Gain/(Loss) on Investment
Securities Available for Sale (489) 300
-------- --------
Shareholders' Equity 31,591 30,826
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $305,715 $300,201
======== ========
</TABLE>
See notes to consolidated financial statements.
1
<PAGE> 3
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended
June 30,
1996 1995
--------------------------
(thousands of dollars)
<S> <C> <C>
INTEREST INCOME
Loans (Including fees) $ 4,789 $ 4,536
Interest Bearing Deposits 136 203
Investments:
U.S. Treasury 349 459
U.S. Government Agencies 787 373
States and Political Subdivisions 248 211
Dividend Income 37 31
Federal Funds Sold 19 20
--------- ---------
Total Interest Income 6,365 5,833
--------- ---------
INTEREST EXPENSE
NOW Accounts 410 265
Money Market Deposits Accounts 270 295
Savings 94 88
Time Deposits ($100,000 and above) 930 804
Other Time Deposits 1,063 1,011
Other 154 101
--------- ---------
Total Interest Expense 2,921 2,564
--------- ---------
NET INTEREST INCOME 3,444 3,269
Provision for Loan Losses 187 160
--------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,257 3,109
--------- ---------
NON-INTEREST INCOME
Service Charges on Deposits 380 361
Fees for Trust Services 51 53
Other 116 87
--------- ---------
Total Non-interest Income 547 501
--------- ---------
NON-INTEREST EXPENSE
Salaries 843 782
Other Personnel Expense 294 270
Occupancy Expense, Net 153 151
Equipment Expense 209 208
Other 600 645
--------- ---------
Total Non-interest Expense 2,099 2,056
--------- ---------
INCOME BEFORE INCOME TAXES 1,705 1,554
Provision for Income Taxes 521 472
--------- ---------
NET INCOME $ 1,184 $ 1,082
========= =========
EARNINGS PER COMMON SHARE (NOTE 3) $ .44 $ .41
========= =========
DIVIDENDS PER COMMON SHARE (NOTE 3) $ .15 $ .12
========= =========
AVERAGE NUMBER OF SHARES OUTSTANDING (NOTE 3) 2,661,711 2,661,825
========= =========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE> 4
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
1996 1995
--------------------------
(thousands of dollars)
<S> <C> <C>
INTEREST INCOME
Loans (Including fees) $ 9,617 $ 8,820
Interest Bearing Deposits 302 438
Investments:
U.S. Treasury 732 933
U.S. Government Agencies 1,552 648
States and Political Subdivisions 500 421
Dividend Income 66 80
Federal Funds Sold 40 55
--------- ---------
Total Interest Income 12,809 11,395
--------- ---------
INTEREST EXPENSE
NOW Accounts 847 542
Money Market Deposits Accounts 537 588
Savings 188 169
Time Deposits ($100,000 and above) 1,934 1,472
Other Time Deposits 2,187 1,894
Other 276 191
--------- ---------
Total Interest Expense 5,969 4,856
--------- ---------
NET INTEREST INCOME 6,840 6,539
Provision for Loan Losses 376 313
--------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 6,464 6,226
--------- ---------
NON-INTEREST INCOME
Service Charges on Deposits 736 719
Fees for Trust Services 89 89
Other 220 150
--------- ---------
Total Non-interest Income 1,045 958
--------- ---------
NON-INTEREST EXPENSE
Salaries 1,675 1,549
Other Personnel Expense 544 555
Occupancy Expense, Net 309 282
Equipment Expense 413 409
Other 1,197 1,259
--------- ---------
Total Non-interest Expense 4,138 4,054
--------- ---------
INCOME BEFORE INCOME TAXES 3,371 3,130
Provision for Income Taxes 1,018 957
--------- ---------
NET INCOME $ 2,353 $ 2,173
========= =========
EARNINGS PER COMMON SHARE (NOTE 3) $ .88 $ .82
========= =========
DIVIDENDS PER COMMON SHARE (NOTE 3) $ .30 $ .24
========= =========
AVERAGE NUMBER OF SHARES OUTSTANDING (NOTE 3) 2,661,711 2,661,880
========= =========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 5
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30,
1996 1995
----------------------
(thousands of dollars)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,353 $ 2,173
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Depreciation 318 276
Provision for Loan Losses 376 313
(Gain) Loss on Sale of Other Real Estate (2) 5
Gain on Call of Securities (5) (1)
Gain on Sale of Equipment (6)
Net Accretion of Premiums and Discounts on Securities (325) (31)
Changes in Assets and Liabilities:
Increase in Interest Receivable (39) (645)
Increase in Other Assets (210) (73)
Increase (Decrease) in Interest Payable (214) 225
Decrease in Other Liabilities (275) (36)
------- -------
Net Cash Provided by Operating Activities 1,977 2,200
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net Increase in Interest Bearing Deposits
in Other Banks (1,441) (1,217)
Net (Increase) Decrease in Federal Funds Sold (75) 3,925
Available-for-Sale Securities:
Proceeds from Maturity 28,344 7,023
Purchases (47,724) (310)
Held-to-Maturity Securities:
Proceeds from Maturity 14,939 8,625
Purchases (2,578) (20,313)
Net Increase in Loans (1,392) (10,666)
Purchases of Premises and Equipment (732) (635)
Proceeds from Sale of Equipment 7
Proceeds from Sale of Other Real Estate 157 7
------- -------
Net Cash Used in Investing Activities (10,502) (13,554)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits 3,554 8,070
Advances from the Federal Home Loan Bank 6,526 1,065
Repayment of Other Borrowed Money (4,842) (169)
Dividends Paid (799) (638)
------- -------
Net Cash Provided by Financing Activities 4,439 8,328
------- -------
INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (4,086) (3,026)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 12,171 12,019
------- -------
CASH AND DUE FROM BANKS AT END OF PERIOD $ 8,085 $ 8,993
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the year for:
Interest $ 6,183 $ 2,339
Income Taxes 1,128 922
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Other Real Estate Acquired through Loan Foreclosure $ 275 30
Loans granted to facilitate the Sale of Other Real Estate 41 26
Change in Net Unrealized Gain (Loss) on
Investment Securities Available for Sale (789) 1,024
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 6
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION
The consolidated financial statements of First Banking Company of Southeast
Georgia (the "Company") include the financial statements of First Bulloch
Bank & Trust Company and Metter Banking Company, wholly-owned subsidiaries.
Intercompany balances and transactions have been eliminated in
consolidation.
The consolidated statements contained in this report are unaudited but
reflect all adjustments, consisting only of normal recurring accruals, which
are, in the opinion of management, necessary to a fair statement of the
results for the interim period reflected. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to applicable rules and regulations of the Securities and Exchange
Commission. The results of operations for the interim period reported herein
are not necessarily indicative of results to be expected for the full year.
The consolidated financial statements included herein should be read in
conjunction with the financial statements and notes thereto, and the
Independent Auditors' Report included in the Company's Annual Report on Form
10-KSB for the fiscal year ended December 31, 1995.
2. ACCOUNTING POLICIES
Reference is made to the accounting policies of the Company described in the
notes to consolidated financial statements contained in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1995. The Company has
followed those policies in preparing this report.
3. COMMON STOCK
At the Company's Annual Meeting of Shareholders held on April 25, 1996, the
shareholders approved a proposal to amend the Articles of Incorporation to
increase the number of authorized shares from 5,000,000 to 10,000,000. The
par value of First Banking's common stock is $1 and, as of May 3, 1996
10,000,000 shares were authorized.
The Banks may pay dividends to First Banking in any year up to 50% of the
previous year's net income without the approval of the Georgia Department
of Banking and Finance, or $2,337,396 in 1996.
Effective May 15, 1995, the Company declared an 8-for-5 stock split of its
common stock effected in the form of a 60 percent stock dividend. All
references to number of shares and to per share amounts have been
retroactively adjusted to reflect the split.
4. EARNINGS PER SHARE
Net Income per share of common stock is based on the weighted average number
of shares of common stock outstanding during each period, after restating
for the stock split (see Note 3).
5
<PAGE> 7
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
SIX MONTHS ENDED JUNE 30, 1996
This discussion relates to the consolidated financial condition and
results of operations of First Banking Company of Southeast Georgia (the
"Company") and its wholly-owned subsidiaries, First Bulloch Bank & Trust
Company ("Bulloch Bank") and Metter Banking Company ("Metter Bank"), (the
"Banks"). Since the Company has no subsidiaries other than the Banks and no
activities other than those of the Banks, the following narrative refers to the
operations of the Banks.
FINANCIAL CONDITION
The Company functions as the sole owner of two commercial banks, and
its financial condition should be examined in terms of trends in sources and
uses of funds. The Company's primary use of funds historically comes from loan
demand. Loans outstanding have increased $1,392,000 or 0.8% since year-end.
Investment securities and interest bearing deposits in other banks have
increased $6,154,000 (7.2%) and $1,441,000 (11.7%), respectively, while federal
funds sold have increased $75,000 (4.4%) since year-end.
Total assets have increased $5,514,000 (1.8%) since year-end, while
total funds (deposits plus Other Borrowed Money) have increased $5,238,000
(2.0%). Total deposits have increased $3,554,000 (1.4%) since year-end, and
Other Borrowed Money has increased $1,684,000 (23.3%). Demand deposits
decreased $4,914,000 (14.5%), and savings deposits (including NOW accounts and
the liquid money market accounts) have increased $9,443,000 (11.2%). Time
deposits over $100,000 have decreased approximately $2,735,000 (4.1%), while
other time deposits have increased approximately $1,760,000 (2.4%).
The overall increase in deposits is directly attributable to one new
public fund NOW account obtained through competitive bid and opened on January
2, 1996. At June 30, 1996 this account reflected a balance of $10,312,000.
Because state banking regulations require this account to be secured by the
pledging of investment securities to the public entity,
6
<PAGE> 8
additional investment securities were purchased in an amount adequate to
satisfy the regulatory pledging requirement, thus accounting for the increase
in investment securities since year-end.
Effective May 15, 1995, the Company declared an 8-for-5 stock split of its
common stock effected in the form of a 60 percent stock dividend. All
references to number of shares and to per share amounts have been retroactively
adjusted to reflect the split.
CAPITAL RESOURCES
The Banks are required to maintain minimum amounts of capital to total
"risk-weighted" assets, as defined by the banking regulators. At June 30, 1996,
the Banks were required to have minimum Tier 1 and Total Capital ratios of 4%
and 8%, respectively, and a leverage ratio of at least 3%. At that date the
Banks' actual ratios were as follows:
<TABLE>
<CAPTION>
Bulloch Bank Metter Bank
------------ -----------
<S> <C> <C>
Tier 1 Capital ratio 18.4% 15.0%
Total Capital ratio 19.7 16.3
Leverage ratio 10.5 9.8
</TABLE>
These ratios qualify each bank for the "well-capitalized" classification
as defined by the banking regulators. The Company's ratio of shareholders'
equity to total assets was 10.3% at June 30, 1996 and at December 31, 1995.
LIQUIDITY
The percentage of net loans to total funds was 67.6% at June 30, 1996
and 68.5% at December 31, 1995. At June 30, 1996 the Banks had $23,592,000 in
cash and cash equivalents as compared with $26,162,000 at December 31, 1995.
The Banks' liquidity policies require that the ratio of cash and certain
short-term investments to net withdrawable deposit accounts be at least 20.0%.
At June 30, 1996, both banks exceeded this ratio. The liquidity of the Company
and the Banks is considered adequate to repay deposits and other obligations,
meet expected loan demand and pay dividends.
Presented below is an interest rate sensitivity analysis of the Company at
June 30, 1996.
7
<PAGE> 9
Interest Rate Sensitivity Analysis - June 30, 1996
<TABLE>
<CAPTION>
Term to Repricing or Maturity
----------------------------------------------------------------------
Over Three Over One Over Five
Less Than Months through Year through years and
Three Months One Year Five years Insensitive Total
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest Earning Assets:
Interest Bearing
Deposits in Other
Banks $13,732 $ 13,732
Investment Securities 12,973 $ 22,161 $40,744 $ 15,418 91,296
Federal Funds Sold 1,775 1,775
Loans 84,155 47,189 36,811 14,782 182,937
-------- -------- ------- -------- --------
Total Interest
Earning Assets 112,635 69,350 77,555 30,200 289,740
Noninterest Earning
Assets 15,975 15,975
-------- -------- ------- -------- --------
TOTAL ASSETS $112,635 $ 69,350 $77,555 $ 46,175 $305,715
======== ======== ======= ======== ========
Interest Bearing Liabilities:
Interest Bearing
Deposits $132,165 $ 79,845 $20,918 $232,928
Other Borrowed Money 265 623 3,781 $ 4,249 8,918
-------- -------- ------- -------- --------
Total Interest
Bearing Liabilities 132,430 80,468 24,699 4,249 241,846
Interest Free Deposits 28,903 28,903
Other Interest Free
Liabilities and Equity 34,966 34,966
-------- -------- ------- -------- --------
TOTAL LIABILITIES
AND EQUITY $132,430 $ 80,468 $24,699 $ 68,118 $305,715
======== ======== ======= ======== ========
Net Interest Rate
Sensitivity Gap $(19,795) $(11,118) 52,856 ($21,943)
Cumulative gap $(19,795) $(30,913) 21,943
Net Interest Rate
Sensitivity Gap as
a Percent of Interest
Earning Assets (17.6) (16.0) 68.2
Cumulative Gap as a
Percent of Cumulative
Interest Earning Assets (17.6) (17.0) 8.5
</TABLE>
8
<PAGE> 10
RESULTS OF OPERATIONS
INTEREST INCOME
Total interest income increased $1,414,000 (12.4%) in the first six
months of 1996 as compared to the first six months of 1995 and increased
$532,000 (9.1%) in the second quarter of 1996 as compared to the second quarter
of 1995. Interest on loans increased $797,000 (9.0%) in the first six months
of 1996 as compared to the first six months of 1995 and increased $253,000
(5.6%) in the second quarter of 1996 as compared to the second quarter of 1995,
as a result of an increase of $13,418,000 in the year-to-date average balance
of loans outstanding from June 30, 1995 to June 30, 1996 as well as a nominal
increase in yield on the loan portfolio for that period. Interest on
investments increased $768,000 (36.9%) in the first six months of this year as
compared to the first six months of 1995 and increased $347,000 (32.3%) in the
second quarter of 1996 from the second quarter of 1995, primarily as a result
of an increase in the average balance of the investment portfolio of
$26,700,000 offset by a nominal decrease in yield from 6.56% to 6.40%.
During the first six months of 1996, interest on federal funds sold
decreased $15,000 (27.3%) from the first six months of 1995 and decreased
$1,000 (5.0%) in the second quarter of 1996 as compared to the second quarter
of 1995. Interest on Interest-bearing Deposits in Other Banks decreased
$136,000 (31.0%) during the first six months of 1996 from the first six months
of 1995 and decreased $67,000 (33.0%) in the second quarter of 1996 from the
second quarter of 1995. These decreases were the result of decreases in the
average balances carried in interest-bearing deposits in other banks and in
Federal Funds Sold as well as a decrease in the weighted average yield of these
short-term investments from 5.90% to 5.48%.
INTEREST EXPENSE
During the first six months of 1996, total interest expense increased
$1,113,000 (22.9%) from the first six months of 1995 and increased $357,000
(13.9%) in the second quarter of 1996 from the second quarter of 1995.
Interest on deposits increased $1,039,000 (22.0%) in the first six months of
1996 from the first six months of 1995 and increased $304,000 (12.3%) in the
second quarter of this year from the second quarter of 1995. This increase is
9
<PAGE> 11
attributable to an increase in the average balance of interest bearing deposits
of $30,333,000 as well as an increase in the cost of funds from 4.66% to 4.93%.
Interest on Other Borrowed Money increased $85,000 (44.5%) in the first six
months of 1996 from the first six months of 1995 and increased $53,000 (52.5%)
in the second quarter of 1996 as compared to the second quarter of 1995. This
increase is the result of an increase of $2,970,000 in the average balance
outstanding of Other Borrowed Money at a lower average interest rate of 6.7%
from 7.3%.
PROVISIONS FOR LOAN LOSSES
Provisions for loan losses for the first six months of 1996 increased $63,000
(20.1%) from the first six months of 1995 and increased $27,000 (16.9%) in the
second quarter of 1996 from the second quarter of 1995. After considering the
credit worthiness of the loan portfolios, it is the opinion of the management
of the Banks that the allowance for loan losses is adequate. At June 30, 1996
the allowance for loan losses was 2.0% of outstanding loans less unearned
interest.
Nonperforming loans were $1,142,000 at June 30, 1996 and $1,330,000 at
December 31, 1995. These loans included those on a nonaccrual status of
$338,000 and $403,000, respectively, accruing loans contractually past due at
least 90 days of $226,000 and $176,000, respectively, and restructured loans of
$578,000 and $751,000, respectively. Net loans charged off totaled $77,000
during the first six months of 1996 as compared to $105,000 during the first
six months of 1995.
NONINTEREST INCOME AND EXPENSE
Noninterest income increased $87,000 (9.1%) in the first six months of 1996
from the first six months of 1995 and increased $46,000 (9.2%) in the second
quarter of 1996 from the second quarter of 1995. These increases are primarily
a result of an increase in the year-to-date credit life and A & H insurance
commission income of $33,000 from June 30, 1995 to June 30 1996 and an increase
in origination income from long-term mortgage loans, which are acquired by other
banks on a non-recourse basis concurrent with the closing of the loan, of
$31,000 for that period. Noninterest expense increased $84,000 (2.1%) in the
first six months
10
<PAGE> 12
of 1996 compared to the first six months of 1995 and increased $43,000 (2.1%)
in the second quarter of 1996 as compared to the second quarter of 1995. These
increases are a result of increases in salary and personnel expense of
$115,000 and $85,000, respectively, increases in occupancy and equipment
expense of $31,000 and $3,000, respectively, and decreases in Other Expense of
$62,000 and $45,000, respectively, during the first six months of 1996 as
compared to the first six months of 1995 and during the second quarter of 1996
as compared to the second quarter of 1995.
PENDING ACQUISITION
Management anticipates that the Company's acquisition of FNB Bancshares,
Inc. ("FNB") through the merger of FNB with and into the Company will be
consummated on or about August 26, 1996. Although no assurances can be given,
management believes that after an anticipated short-term decrease in net income
and cash flow from operations resulting from the payment of expenses relating
to the merger and the initial cost of integrating FNB's operations with those of
the Company, the merger will increase slightly the Company's net income,
shareholder's equity, cash flow from operations and earnings per share for the
year ended December 31, 1996.
11
<PAGE> 13
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Neither the Registrant nor either of its subsidiaries is a party to, nor is
any of their property the subject of, any material pending legal
proceedings, other than ordinary routine proceedings incidental to the
business of banks, nor to the knowledge of management are any such
proceedings contemplated or threatened against the Registrant or its
subsidiaries.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS.
At the Company's Annual Meeting of Shareholders on April 25, 1996, the
shareholders of the Company elected the following persons as Class II
directors of the Company by the votes indicated.
<TABLE>
<CAPTION>
Broker
Nominee For Against Non-votes Abstentions
------- --- ------- --------- -----------
<S> <C> <C> <C> <C>
James Eli Hodges 1,843,552 0 0 34,562
C. Arthur Howard 1,843,552 0 0 34,562
Lanier A. Hunnicutt 1,843,341 0 0 34,773
Joe P. Johnston 1,843,552 0 0 34,562
Harry S. Mathews 1,843,552 0 0 34,562
</TABLE>
The shareholders also approved an amendment to the Company's
Articles of Incorporation to increase the number of authorized
shares of common stock from 5,000,000 to 10,000,000, by the votes
indicated.
<TABLE>
<S> <C>
Voting for the amendment 1,802,405
Voting against the amendment 66,130
Abstentions 9,579
Broker Non-votes 34,563
</TABLE>
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: 27 - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K: The Registrant did not file any reports on Form
8-K during the quarter for which this report is filed.
12
<PAGE> 14
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
DATE: August 12, 1996 BY: /s/James Eli Hodges
-------------------- -----------------------------------
JAMES ELI HODGES
PRESIDENT
DATE: August 12, 1996 BY: /s/Dwayne E. Rocker
-------------------- -----------------------------------
DWAYNE E. ROCKER
SECRETARY-TREASURER
(PRINCIPAL FINANCIAL OFFICER)
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATMENTS OF FIRST BANKING COMPANY OF SOUTHEAST GEORGIA FOR THE SIX
MONTHS ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 8,085
<INT-BEARING-DEPOSITS> 13,732
<FED-FUNDS-SOLD> 1,775
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 67,752
<INVESTMENTS-CARRYING> 23,544
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0
0
<COMMON> 2,662
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<EPS-PRIMARY> 0.88
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<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
