<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
-------------------------
For quarter ended March 31, 1998 Commission file number 0-10853
-------------- -------
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
(Exact name of registrant 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, 3,762,468 shares as of March 31, 1998
--------------------------------------------------------------------
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-----------------------------
(thousands of dollars)
<S> <C> <C>
ASSETS
Cash and Due From Banks $ 16,116 $ 24,631
Interest Bearing Deposits in Other Banks 15,819 16,368
Federal Funds Sold 5,475 3,775
Investment Securities:
Available for Sale 79,753 84,477
Held to Maturity (Estimated Value of
$17,764 in 1998 and $21,544 in 1997) 17,084 20,847
Loans 245,849 250,312
Less: Unearned Interest (14) (17)
Allowance for Loan Losses (4,092) (3,921)
--------- ---------
Loans, Net 241,743 246,374
--------- ---------
Interest Receivable 4,780 5,158
Premises and Equipment, Net 6,922 7,090
Other Real Estate 444 368
Other Assets 2,176 2,135
--------- ---------
TOTAL ASSETS $ 390,312 $ 411,223
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 41,150 $ 45,981
Interest Bearing:
NOW Accounts 71,325 76,036
Money Market Deposit Accounts 29,670 29,112
Savings 15,110 14,593
Time ($100,000 and above) 78,264 88,807
Other Time 98,342 100,276
--------- ---------
Total Deposits 333,861 354,805
Repurchase Agreements 1,400 1,400
Other Borrowed Money 8,453 9,418
Interest Payable 3,245 3,551
Other Liabilities 1,404 1,020
--------- ---------
Total Liabilities 348,363 370,194
--------- ---------
Shareholders' Equity (Note 3):
Common Stock, 3,762,468 Shares Issued
And Outstanding in 1998 and in 1997 3,762 3,762
Additional Paid-In Capital 7,474 7,474
Retained Earnings 30,400 29,575
Accumulated Other Comprehensive Income 313 218
--------- ---------
Shareholders' Equity 41,949 41,029
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 390,312 $ 411,223
========= =========
</TABLE>
See notes to consolidated financial statements.
<PAGE> 3
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
1998 1997
--------------------------
(thousands of dollars)
<S> <C> <C>
INTEREST INCOME
Loans (Including fees) $ 6,314 $ 5,968
Interest Bearing Deposits 224 151
Investments:
U.S. Treasury 217 359
U.S. Government Agencies 1,026 853
States and Political Subdivisions 288 269
Dividend Income 61 50
Federal Funds Sold 63 81
------- -------
Total Interest Income 8,193 7,731
------- -------
INTEREST EXPENSE
NOW Accounts 632 452
Money Market Deposits Accounts 231 207
Savings 114 108
Time Deposits ($100,000 and above) 1,279 1,291
Other Time Deposits 1,413 1,403
Other 175 187
------- -------
Total Interest Expense 3,844 3,648
------- -------
NET INTEREST INCOME 4,349 4,083
Provision for Loan Losses 221 231
------- -------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 4,128 3,852
------- -------
NON-INTEREST INCOME
Service Charges on Deposits 495 38
Fees for Trust Services 18 498
Other 188 117
------- -------
Total Non-interest Income 701 653
------- -------
NON-INTEREST EXPENSE
Salaries 1,116 1,016
Other Personnel Expense 387 379
Occupancy Expense, Net 220 204
Equipment Expense 356 299
Other 771 690
------- -------
Total Non-interest Expense 2,850 2,588
------- -------
Income Before Income Taxes 1,979 1,917
Provision for Income Taxes 552 583
------- -------
NET INCOME 1,427 1,334
------- -------
Other Comprehensive Income:
Unrealized holding gains (losses) on
securities Available for Sale arising during
the period, net of taxes of $50,000 in 1998 and
a tax credit of $120,000 in 1997 96 (234)
------- -------
COMPREHENSIVE INCOME $ 1,523 $ 1,100
======= =======
EARNINGS PER SHARE:
Basic $ 0.38 $ 0.36
======= =======
Diluted $ 0.38 $ 0.36
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE> 4
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
<TABLE>
<CAPTION>
March 31,
1998 1997
-------------------------
(thousands of dollars)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,427 $ 1,334
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Depreciation 285 248
Provision for Loan Losses 221 231
(Gain) Loss on Sale of Other Real Estate (4)
Gain on Call of Securities (1) (5)
Loss (Gain) on Sale of Premises and Equipment 2
Net Accretion of Premiums and Discounts on Securities (105) (103)
Changes in Assets and Liabilities:
Decrease in Interest Receivable 378 603
(Increase) Decrease in Other Assets (91) (121)
Decrease in Interest Payable (306) (226)
Increase (Decrease) in Other Liabilities 384 245
-------- --------
Net Cash Provided by Operating Activities 2,194 2,202
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (Increase) Decrease in Interest Bearing
Deposits in Other Banks 549 (1,402)
(Increase) Decrease in Federal Funds Sold (1,700) 5,470
Available-for-Sale Securities:
Proceeds from Maturity 29,489 14,004
Purchases (25,637) (8,997)
Held-to-Maturity Securities:
Proceeds from Maturity 4,885 3,943
Purchases (7,237)
Net (Increase) Decrease in Loans 4,266 (4,889)
Purchases of Premises and Equipment (119) (241)
Proceeds from Sale of Other Real Estate 69 25
-------- --------
Net Cash Used in Investing Activities 11,802 676
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits (20,944) (3,607)
Borrowings from the FHLB 3,100 800
Repayment of other Borrowed Money (4,065) (2,891)
Dividends Paid (602) (540)
-------- --------
Net Cash Provided by Financing Activities (22,511) (6,238)
-------- --------
INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (8,515) (3,360)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 24,631 21,611
-------- --------
CASH AND DUE FROM BANKS AT END OF PERIOD $ 16,116 $ 18,251
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the year for:
Interest 4,150 3,510
Income Taxes 70
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Other Real Estate Acquired through Loan Foreclosure 145 234
Loans granted to facilitate the Sale of Other Real Estate 43
Change in Net Unrealized Gain (Loss) on
Investment Securities Available for Sale 95 (234)
</TABLE>
See notes to consolidated financial statements.
<PAGE> 5
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, Metter Banking Company and First National Bank of
Effingham, 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-K for the
fiscal year ended December 31, 1997.
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-K for the year ended December 31, 1997. The Company has
followed those policies in preparing this report.
3. COMMON STOCK
The par value of the Company's common stock is $1, and 10,000,000
shares are authorized. The Banks may pay dividends to the Company in any year up
to 50% of the previous year's net income or $2,732,000 in 1998 without the
approval of the Georgia Department of Banking and Finance.
Effective June 30, 1997, the Company declared a 5-for-4 split of its
common stock effected in the form of a 25% stock dividend. In connection with
the split, $750,505 has been transferred from Surplus to Common Stock. All
references to number of shares and to per share amounts have been retroactively
adjusted to reflect the split.
4. EARNINGS PER SHARE
In February 1997, Statement of Financial Accounting Standards ("SFAS")
128, "Earnings Per Share" was issued. SFAS 128 establishes standards for
computing and presenting basic and diluted earnings per share information for
entities with publicly held common stock. All per share amounts conform to SFAS
128.
The number of shares used in computing basic and diluted per share
amounts is as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1998 1997
------------------------------
<S> <C> <C>
Weighted average shares outstanding -
Basic Earnings Per Share 3,762,468 3,752,525
Effect of dilutive outstanding stock options 9,768 0
------------------------------
Weighted average shares outstanding -
Diluted Earnings Per Share 3,772,236 3,752,525
==============================
</TABLE>
5. IMPACT OF NEW ACCOUNTING STANDARD
In June 1997, the FASB issued Statements of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" and No. 131, "Disclosures
about Segments of an Enterprise and Related Information" ("SFAS 130" and "SFAS
131"). SFAS 130 establishes standards for reporting and display of comprehensive
income and its components (revenues, expenses, gains and losses) in a full set
of general purpose financial statements. SFAS 130 has been adopted for the
financial statements for all periods presented.
SFAS 131 establishes standards for, among other things, reporting
information about operating segments in annual financial statements and requires
that those enterprises report selected information about operating segments in
interim financial reports issued to shareholders. SFAS 131 is effective for
annual financial statements issued for periods beginning after December 15,
1997.
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1998
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"), Metter Banking Company ("Metter Bank") and First National Bank
of Effingham ("Effingham 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 three 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. However, loans outstanding have decreased $4,460,000 or 1.8% since
year-end. Investment securities and interest bearing deposits in other banks
have decreased $8,487,000 (8.1%) and $549,000 (3.4%), respectively, while
federal funds sold have increased $1,700,000 (45.0%) since year-end.
Total assets have decreased $20,911,000 (5.1%) since year-end, while
total funds (deposits plus Other Borrowed Money) have decreased $21,909,000
(6.0%). Total deposits have decreased $20,944,000 (5.9%) since year-end, and
Other Borrowed Money has decreased $965,000 (8.9%). Demand deposits have
decreased $4,831,000 (10.5%), and savings deposits (including NOW accounts and
the liquid money market accounts) have decreased $3,636,000 (3.0%). Time
deposits over $100,000 have decreased approximately $10,543,000 (11.9%), while
other time deposits have decreased approximately $1,934,000 (1.9%).
The decrease in total deposits is primarily the result of a movement of
public funds out of the banks. In public fund activity, approximately $2,200,000
has moved out of NOW accounts since year-end and approximately $7,800,000 has
moved out of time deposits over $100,000, for a total decrease in public funds
of $10,000,000. Because public funds are required by state banking law to be
secured by the pledging of investment securities to the various public entities,
these securities are generally purchased to match the maturities or known
movements of public funds. Therefore, the investment portfolio has been a
primary source of liquidity for the withdrawal requirements.
The $4,800,000 decrease in demand deposits is primarily the result of
fluctuations in commercial account balances since year-end, while an additional
$2,700,000 decrease in time deposits over $100,000 is the result of commercial
and personal account balances moving out of the banks.
<PAGE> 7
CAPITAL RESOURCES
The Banks are required to maintain minimum amounts of capital to total
"risk-weighted" assets, as defined by the banking regulators. At March 31, 1998,
the Banks were required to have minimum Tier 1 and Total Risk-Based 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 Effingham Bank
------------ ----------- --------------
<S> <C> <C> <C>
Tier 1 Risk-based Capital ratio 19.6% 16.2% 9.4%
Total Risk-based Capital ratio 20.8 17.5 10.6
Leverage ratio 11.2 10.3 6.7
</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 10.7% at March 31, 1998 and 10.0% at
December 31, 1997.
LIQUIDITY
The percentage of net loans to total funds was 70.3% at March 31, 1998
and 67.4% at December 31, 1997. At March 31, 1998 the Banks had $37,410,000 in
cash and due from banks, interest bearing deposits in other banks and federal
funds sold as compared with $44,773,861 at December 31, 1997. The Banks'
liquidity policies typically require that the ratio of cash and certain
short-term investments to net withdrawable deposit accounts be at least 20.0%.
At March 31 1998, only Bulloch Bank and Metter Bank 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 March 31, 1998. The analysis indicates that the Company is
liability-sensitive through one year, meaning that a greater amount of
liabilities are maturing or repricing than assets, which is beneficial in a
falling rate environment. Beyond one year, the Company is asset-sensitive, which
is beneficial in a rising rate environment.
<PAGE> 8
Interest Rate Sensitivity Analysis - March 31, 1998
<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 $ 15,819 $ 15,819
Investment Securities 13,501 $ 26,251 $ 41,223 $ 15,862 96,837
Federal Funds Sold 5,475 5,475
Loans 102,525 55,975 63,215 24,120 245,835
--------- --------- --------- --------- ---------
Total Interest Earning
Assets 137,320 82,226 104,438 39,982 363,966
Non-interest Earning Assets 26,346 26,346
--------- --------- --------- --------- ---------
TOTAL ASSETS $ 137,320 $ 82,226 $ 104,438 $ 66,328 $ 390,312
========= ========= ========= ========= =========
Interest Bearing Liabilities:
Interest Bearing Deposits $ 168,998 $ 101,905 $ 21,808 $ 292,711
Other Borrowed Money 211 847 3,900 $ 3,495 8,453
Repurchase Agreements 500 500 400 1,400
--------- --------- --------- --------- ---------
Total Interest Bearing
Liabilities 169,709 103,252 26,108 3,495 302,564
Interest Free Deposits 41,150 41,150
Other Interest Free
Liabilities and Equity 46,598 46,598
--------- --------- --------- --------- ---------
TOTAL LIABILITIES AND EQUITY $ 169,709 $ 103,252 $ 26,108 $ 91,243 $ 390,312
========= ========= ========= ========= =========
Net Interest Rate
Sensitivity Gap $ (32,389) $ (21,026) $ 78,330 $ (24,915)
Cumulative Gap (32,389) (53,415) 24,915
Net Interest Rate
Sensitivity Gap as a Percent
of Interest Earning Assets (26.6) (25.6) 75.0 (37.6)
Cumulative Gap as a Percent of
Cumulative Interest Earning
Assets (26.6) (24.3) 7.7
</TABLE>
<PAGE> 9
RESULTS OF OPERATIONS
INTEREST INCOME
Total interest income increased $462,000 (6.0%) in the first three
months of 1998 as compared to the first three months of 1997. Interest on loans
increased 346,000 (5.8%) in the first three months of 1998 as compared to the
first three months of 1997, as a result of an increase of $13,803,000 in the
year-to-date average balance of loans outstanding from March 31, 1997 to March
31, 1998 offset by a decrease in yield on the loan portfolio for that period
from 10.30 to 10.25%. Interest on investments increased $61,000 (4.0%) in the
first three months of this year as compared to the first three months of 1997,
primarily as a result of an increase in the average balance of the investment
portfolio of $4,483,000 offset by a nominal decrease in yield from 6.40% to
6.39%.
During the first three months of 1998, interest on federal funds sold
decreased $18,000 (22.4%) from the first three months of 1997 Interest on
Interest-bearing Deposits in Other Banks increased $73,000 (48.3%) during the
first three months of 1998 from the first three months of 1997. These short-term
investments are the two means of investing any excess cash from day to day. The
total net increase in the combined income of Federal Funds Sold and
Interest-bearing deposits in other banks is the result of an increase of
$5,194,000 in the combined year-to-date average balance as well as an increase
in the weighted average yield from 5.45% to 5.60%.
INTEREST EXPENSE
During the first three months of 1998, the total interest expense
increased $196,000 (5.4%) from the first three months of 1997. Interest on
deposits increased $208,000 (6.0%) in the first three months of 1998 from the
first three months of 1997. This increase is attributable solely to an increase
in the average balance of interest bearing deposits of $17,406,000. Interest on
Other Borrowed Money decreased $12,000 (6.7%) in the first three months of 1998
from the first three months of 1997. This decrease is the result of a decrease
of $498,000 in the average balance outstanding of Other Borrowed Money at a
lower average interest rate of 6.88% from 7.06%.
PROVISIONS FOR LOAN LOSSES
Provisions for loan losses for the first three months of 1998 decreased
$10,000 (4.6%) from the first three months of 1997. 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 March 31, 1998 the
allowance for loan losses was 1.66% of outstanding loans less unearned interest.
Nonperforming loans were $1,740,000 at March 31,1998 and $1,217,000 at
December 31, 1997. These loans included those on a nonaccrual status of $875,000
and $434,000, respectively, accruing loans contractually past due at least 90
days of $328,000 and $134,000, respectively, and restructured loans of $537,000
and $649,000, respectively. Net loans charged off totaled $49,000 during the
first three months of 1998 as compared to $26,000 during the first three months
of 1997. The increase in nonaccruals is directly attributable to one credit in
the amount of $407,000.
<PAGE> 10
NONINTEREST INCOME AND EXPENSE
Noninterest income increased $48,000 (7.4%) in the first three months
of 1998 from the first three months of 1997. This increase is reflected
primarily in an increase in other noninterest income of $71,000 during the first
three months of this year offset by a $20,000 decrease in fees for Trust
Services and a nominal decrease in service charges on deposit accounts. The
increase in other noninterest income is the result of an increase of $47,000 in
mortgage fees and a $22,000 increase in commissions from the sale of annuities,
mutual funds and life insurance.
Noninterest expense increased $262,000 (10.1%) in the first three
months of 1998 compared to the first three months of 1997. This increase is the
result of an increase in salary and personnel expense of $108,000, an increase
in occupancy and equipment expense of $73,000, and an increase in Other Expense
of $81,000 during the first three months of 1998 as compared to the first three
months of 1997. The increase in salary and personnel expense is primarily the
result of overall salary increases and a nominal increase in medical insurance
expense. The increase in occupancy and equipment expense is the result of
increases in depreciation expense related to construction projects and equipment
purchases and upgrades in 1997. The increase in Other Expense is the result of
several increases in this category. The largest increases are a $22,000 increase
in accounting fees, which is the result of a change in timing of billing and
payment of these fees, a $30,000 increase in charge card fees, and a $13,000
increase in correspondent bank service charges.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Neither the Registrant nor any 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 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
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule (for SEC use only).
(b) Reports on Form 8-K: None
<PAGE> 12
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: May 12, 1998 BY: /s/James Eli Hodges
----------------- --------------------------------
JAMES ELI HODGES
PRESIDENT
DATE: May 12, 1998 BY: /s/Dwayne E. Rocker
----------------- --------------------------------
DWAYNE E. ROCKER
SECRETARY-TREASURER
(PRINCIPAL FINANCIAL OFFICER)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF FIRST BANKING COMPANY OF SOUTHEAST GEORGIA FOR THE THREE
MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 16,116
<INT-BEARING-DEPOSITS> 15,819
<FED-FUNDS-SOLD> 5,475
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 79,753
<INVESTMENTS-CARRYING> 17,084
<INVESTMENTS-MARKET> 17,764
<LOANS> 245,835
<ALLOWANCE> 4,092
<TOTAL-ASSETS> 390,312
<DEPOSITS> 333,861
<SHORT-TERM> 2,058
<LIABILITIES-OTHER> 4,649
<LONG-TERM> 7,795
0
0
<COMMON> 3,762
<OTHER-SE> 38,187
<TOTAL-LIABILITIES-AND-EQUITY> 390,312
<INTEREST-LOAN> 6,314
<INTEREST-INVEST> 1,592
<INTEREST-OTHER> 287
<INTEREST-TOTAL> 8,193
<INTEREST-DEPOSIT> 3,669
<INTEREST-EXPENSE> 3,844
<INTEREST-INCOME-NET> 4,349
<LOAN-LOSSES> 221
<SECURITIES-GAINS> 1
<EXPENSE-OTHER> 2,850
<INCOME-PRETAX> 1,979
<INCOME-PRE-EXTRAORDINARY> 1,979
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,427
<EPS-PRIMARY> 0.38
<EPS-DILUTED> 0.38
<YIELD-ACTUAL> 4.89
<LOANS-NON> 875
<LOANS-PAST> 328
<LOANS-TROUBLED> 537
<LOANS-PROBLEM> 1,740
<ALLOWANCE-OPEN> 3,921
<CHARGE-OFFS> 67
<RECOVERIES> 18
<ALLOWANCE-CLOSE> 4,092
<ALLOWANCE-DOMESTIC> 4,092
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
