<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
---------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JUNE 15, 1999 (APRIL 2, 1999)
-------------------------------
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
GEORGIA 0-10853 58-1458268
- -------------------------------------------------------------------------------
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
40 NORTH MAIN STREET, STATESBORO, GEORGIA 30458
- --------------------------------------------------------------------------------
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code: (912) 764-6611
----------------------------
NOT APPLICABLE
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
First Banking Company of Southeast Georgia is filing this amendment to its Form
8-K dated April 14, 1999 to include the financial statements required pursuant
to Item 7 of Form 8-K.
<PAGE> 2
ITEM 5. OTHER EVENTS
Pursuant to an Agreement and Plan of Merger, dated as of November 30,
1998, (the "Merger Agreement"), by and between First Banking Company of
Southeast Georgia ("First Banking") and Wayne Bancorp, Inc. ("Wayne"), Wayne
merged with and into First Banking (the "Merger") on April 2, 1999 (the
"Effective Time"). First Banking was the surviving corporation in the Merger,
and the wholly owned subsidiary of Wayne became a wholly-owned subsidiary of
First Banking. At the Effective Time, each then outstanding share of the common
stock, $1.00 par value per share, of Wayne (the "Wayne Common Stock") (excluding
shares held by any Wayne entity or any First Banking entity, in each case other
than in a fiduciary capacity or as a result of debts previously contracted)
ceased to be outstanding and was converted into and exchanged for the right to
receive 1.57024 shares of the common stock, $1.00 par value per share, of First
Banking (the "First Banking Common Stock"). As a result, First Banking issued
approximately 876,264 shares of First Banking Common Stock to the former Wayne
shareholders in exchange for all of the 558,648 shares of Wayne Common Stock
that were issued and outstanding at the Effective Time (with First Banking
paying cash to the former Wayne shareholders in lieu of issuing fractional
shares of First Banking Common Stock).
Pursuant to the Merger Agreement, J. Ashley Dukes, the former Chairman
of the Board of Wayne, will become a member of First Banking's Board of
Directors following the Effective Time.
The foregoing is qualified in its entirety by reference to the Merger
Agreement which is hereby incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements of Business Acquired
WAYNE BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
Assets 1999 1998
- ------ ----------- ------------
<S> <C> <C>
Cash and due from banks $1,390,917 $1,904,077
Interest-bearing deposits 27,376 341,399
Federal funds sold 2,530,000 12,360,000
Investment securities:
Held to maturity 6,803,243 6,752,611
Available for sale 1,777,180 1,346,733
Loans, less allowances for loan
losses of $428,748 and $397,160,
respectively 34,514,177 30,921,663
Premises and equipment, net 1,038,163 1,069,573
Deferred income taxes 97,058 87,765
Other assets 547,606 508,201
----------- -----------
TOTAL ASSETS $48,725,720 $55,292,022
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Noninterest-bearing deposits $7,846,462 $14,368,300
Interest-bearing deposits 32,131,924 32,474,608
----------- -----------
Total deposits 39,978,386 46,842,908
Accrued interest expense 301,242 304,318
Accrued income taxes 122,365 0
Deferred income taxes 0 0
Other liabilities 41,151 279,027
----------- -----------
Total liabilities 40,443,144 47,426,253
Commitments and contingencies
Stockholders' equity:
Common Stock, $1 par value:
authorized 10,000,000 shares:
458,888 and 424,888 issued
and outstanding respectively 558,648 528,648
Surplus 4,961,081 4,691,081
Retained earnings 2,746,104 2,611,336
Unrealized gain (loss) net -
AFS investments 16,743 34,704
----------- -----------
Total stockholders' equity 8,282,576 7,865,769
----------- -----------
TOTAL LIAB. & STOCKHOLDERS' EQUITY $48,725,720 $55,292,022
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE> 3
WAYNE BANCORP. INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1999 1998
---------- --------
<S> <C> <C>
Interest Income:
Loans, including fees $ 848,545 $794,131
Interest-bearing deposits 1,109 599
Federal funds sold 57,383 80,471
Investment securities
Taxable 21,677 10,101
Nontaxable 84,083 76,433
Dividends 12,924 8,805
---------- --------
Total interest income 1,025,721 970,540
Interest expense:
Deposits 343,645 356,482
Federal funds purchased 0 0
---------- --------
Total interest expense 343,645 356,482
---------- --------
Net interest income 682,076 614,058
Provision for loan losses 39,000 45,000
---------- --------
Net interest income after
provision for loan losses 643,076 569,058
Other income:
Service charges on deposits 113,991 106,102
Other operating income 53,647 44,028
Securities gains (net) 686 7,041
---------- --------
Total other income 163,324 157,171
Other expense:
Salaries and employee benefits 178,311 153,689
Net occupancy and equipment expense 56,964 46,454
Other operating expense 187,470 146,762
---------- --------
Total other expense 422,745 346,905
---------- --------
Profit before income taxes 388,655 379,324
Income tax expense 122,324 118,633
---------- --------
Net Profit $ 266,331 $260,691
========== ========
Earnings per share $ 0.48 $ 0.57
========== ========
Weighted average shares outstanding 557,315 455,999
========== ========
Earnings per share (fully diluted) $ 0.48 $ 0.55
========== ========
Weighted average fully diluted shares outstanding 557,315 474,257
========== ========
</TABLE>
<PAGE> 4
WAYNE BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B of the Securities and Exchange Commission Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles of complete financial statements. However, in the
opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 1998, are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1999. For further information, please refer to the consolidated
financial statements and footnotes thereto for the Company's fiscal year ended
December 31, 1998, included in the Company's Form 10-KSB for the year ended
December 31, 1998.
<PAGE> 5
(b) Pro Forma Financial Information
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
As of March 31, 1999
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
FIRST BANKING WAYNE ADJUSTMENTS COMBINED
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Cash & Due From Banks $ 14,286,456 $ 1,390,917 $ 15,677,373
Interest Bearing Deposits in Other Banks 24,842,875 27,376 24,870,251
Federal Funds Sold 10,053,000 2,530,000 12,583,000
Investment Securities:
Available for Sale 57,553,395 1,777,180 59,330,575
Held to Maturity 13,026,378 6,803,243 19,829,621
Loans 257,243,860 34,942,925 292,186,785
Allowance for Loan Losses (4,166,805) (428,748) (4,595,553)
Unearned Interest (14,737) 0 (14,737)
---------------------------------------------------------------------
Loans, Net 253,062,318 34,514,177 0 287,576,495
---------------------------------------------------------------------
Interest Receivable 4,264,784 450,784 4,715,568
Premises and Equipment, Net 7,923,152 1,038,163 8,961,315
Other Real Estate 561,074 561,074
Other Assets 2,182,321 193,880 2,376,201
---------------------------------------------------------------------
TOTAL ASSETS $ 387,755,753 $ 48,725,720 $ - $ 436,481,473
=====================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 49,483,673 $ 7,846,462 $ 57,330,135
Interest Bearing 271,956,550 32,131,924 304,088,474
---------------------------------------------------------------------
Total Deposits 321,440,223 39,978,386 0 361,418,609
Repurchase Agreements 1,400,000 0 1,400,000
Other Borrowed Money 15,397,085 0 15,397,085
Interest Payable 3,181,763 301,242 3,483,005
Other Liabilities 1,290,729 163,516 $ - 1,454,245
---------------------------------------------------------------------
Total Liabilities 342,709,800 40,443,144 0 383,152,944
Shareholders' Equity:
Common Stock 4,715,419 558,648 318,563 5,592,630
Additional Paid-In Capital 6,756,778 4,961,081 (318,563) 11,399,296
Retained Earnings 33,254,810 2,746,104 0 36,000,914
Accumulated Other Comprehensive Income 318,946 16,743 335,689
---------------------------------------------------------------------
Total Shareholders' Equity 45,045,953 8,282,576 0 53,328,529
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 387,755,753 $ 48,725,720 $ - $ 436,481,473
=====================================================================
</TABLE>
See notes to unaudited proforma condensed financial statements.
<PAGE> 6
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA
FIRST BANKING WAYNE COMBINED
----------------------------------------------------
<S> <C> <C> <C>
Interest Income
Loans (including fees) $ 6,271,568 $ 848,545 $ 7,120,113
Interest Bearing Deposits 330,805 1,109 331,914
Investment Securities 1,073,073 118,684 1,191,757
Federal Funds Sold 72,092 57,383 129,475
----------------------------------------------------
Total Interest Income 7,747,538 1,025,721 8,773,259
----------------------------------------------------
Interest Expense
Deposits 3,418,412 343,645 3,762,057
Other 19,502 19,502
----------------------------------------------------
Total Interest Expense 3,437,914 343,645 3,781,559
Net Interest Income 4,309,624 682,076 4,991,700
Provision for Loan Losses 171,940 39,000 210,940
----------------------------------------------------
Net Interest Income After Provision for Loan Losses 4,137,684 643,076 4,780,760
Non-Interest Income
Service Charges on Deposits 514,188 113,991 628,179
Fees for Trust Services 19,238 - 19,238
Other 229,687 54,333 284,020
----------------------------------------------------
Total Non-Interest Income 763,113 168,324 931,437
Non-Interest Expense
Salaries and Other Personnel Expense 1,553,292 178,311 1,731,603
Occupancy and Equipment Expense, Net 541,869 56,964 598,833
Other 1,110,030 187,470 1,297,500
----------------------------------------------------
Total Non-Interest Expense 3,205,191 422,745 3,627,936
Income Before Income Taxes 1,695,606 388,655 2,084,261
Provision for Income Taxes 579,391 122,324 701,715
----------------------------------------------------
Net Income 1,116,215 266,331 1,382,546
OTHER COMPREHENSIVE INCOME:
Unrealized holding gains (losses) on securities Available for Sale (175,000) 17,961 (157,039)
arising during the period
----------------------------------------------------
Other Comprehensive income (175,000) 17,961 (157,039)
----------------------------------------------------
Comprehensive Income $ 941,215 $ 284,292 $ 1,225,507
====================================================
Earnings per Share:
Basic $ 0.24 $ 0.48 $ 0.25
Diluted 0.24 0.48 0.25
Weighted Average Number of Shares Outstanding
Basic 4,715,419 557,315 5,590,537
Diluted 4,720,311 557,315 5,595,429
</TABLE>
See notes to unaudited pro forma condensed financial statements.
<PAGE> 7
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE 3 MONTHS ENDED MARCH 31, 1998
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA
FIRST BANKING WAYNE COMBINED
<S> <C> <C> <C>
Interest Income
Loans (including fees) $ 6,314,398 $ 794,131 $ 7,108,529
Interest Bearing Deposits 224,382 599 224,981
Investment Securities 1,591,492 95,339 1,686,831
Federal Funds Sold 62,887 80,471 143,358
---------------------------------------------------------
Total Interest Income 8,193,159 970,540 9,163,699
---------------------------------------------------------
Interest Expense
Deposits 3,822,803 356,482 4,179,285
Other 21,163 21,163
---------------------------------------------------------
Total Interest Expense 3,843,966 356,482 4,200,448
Net Interest Income 4,349,193 614,058 4,963,251
Provision for Loan Losses 220,759 45,000 265,759
---------------------------------------------------------
Net Interest Income After Provision for Loan Losses 4,128,434 569,058 4,697,492
Non-Interest Income
Service Charges on Deposits 494,711 106,102 600,813
Fees for Trust Services 18,544 18,544
Other 187,963 51,069 239,032
---------------------------------------------------------
Total Non-Interest Income 701,218 157,171 858,389
Non-Interest Expense
Salaries and Other Personnel Expense 1,502,666 153,689 1,656,355
Occupancy and Equipment Expense, Net 576,356 46,454 622,810
Other 771,303 146,762 918,065
---------------------------------------------------------
Total Non-Interest Expense 2,850,325 346,905 3,197,230
Income Before Income Taxes 1,979,327 379,324 2,358,651
Provision for Income Taxes 552,207 118,633 670,840
---------------------------------------------------------
Net Income 1,427,120 260,691 1,687,811
OTHER COMPREHENSIVE INCOME:
Unrealized holding gains on securities Available for Sale 95,441 36,367 131,808
arising during the period
---------------------------------------------------------
Other Comprehensive income 95,441 36,367 131,808
---------------------------------------------------------
Comprehensive Income $ 1,522,561 $ 297,058 $ 1,819,619
=========================================================
Earnings per Share:
Basic $ 0.30 $ 0.57 $ 0.31
Diluted 0.30 0.53 0.31
Weighted Average Number of Shares Outstanding
Basic 4,703,085 455,999 5,419,113
Diluted 4,715,296 490,638 5,485,715
</TABLE>
See notes to unaudited proforma condensed financial statements.
<PAGE> 8
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31,1998
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA
FIRST BANKING WAYNE COMBINED
<S> <C> <C> <C>
Interest Income
Loans (including fees) $25,804,299 $ 3,374,462 $ 29,178,761
Interest Bearing Deposits 999,265 1,986 1,001,251
Investment Securities 5,099,591 417,348 5,516,939
Federal Funds Sold 237,183 197,600 434,783
--------------------------------------------------------
Total Interest Income 32,140,338 3,991,396 36,131,734
--------------------------------------------------------
Interest Expense
Deposits 13,853,237 1,443,246 15,296,483
Other 770,550 770,550
--------------------------------------------------------
Total Interest Expense 14,623,787 1,443,246 16,067,033
Net Interest Income 17,516,551 2,548,150 20,064,701
Provision for Loan Losses 813,450 205,000 1,018,450
--------------------------------------------------------
Net Interest Income After Provision for Loan Losses 16,703,101 2,343,150 19,046,251
Non-Interest Income
Service Charges on Deposits 2,162,591 467,880 2,630,471
Fees for Trust Services 105,998 228,587 334,585
Other 794,159 (22,138) 772,021
--------------------------------------------------------
Total Non-Interest Income 3,062,748 674,329 3,737,077
Non-Interest Expense
Salaries and Other Personnel Expense 6,002,389 675,731 6,678,120
Occupancy and Equipment Expense, Net 2,353,862 210,784 2,564,646
Other 3,435,592 706,777 4,142,369
--------------------------------------------------------
Total Non-Interest Expense 11,791,843 1,593,292 13,385,135
Income Before Income Taxes 7,974,006 1,424,187 9,398,193
Provision for Income Taxes 2,265,747 468,626 2,734,373
--------------------------------------------------------
Net Income 5,708,259 955,561 6,663,820
OTHER COMPREHENSIVE INCOME:
Unrealized holding gains (losses) on securities Available for 268,646 26,329 294,975
Sale arising during the period
Less: Reclassification adjustment for gains included in net income 7,463 (25,002) (17,539)
--------------------------------------------------------
Other Comprehensive income 276,109 1,327 277,436
--------------------------------------------------------
Comprehensive Income $ 5,984,368 $ 956,888 $ 6,941,256
========================================================
Earnings per Share:
Basic $ 1.21 $ 2.03 $ 1.22
Diluted 1.21 1.98 1.22
Weighted Average Number of Shares Outstanding
Basic 4,703,267 469,769 5,440,917
Diluted 4,714,360 482,122 5,471,407
</TABLE>
See Notes to Unaudited Proforma Condensed Financial Statements.
<PAGE> 9
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA
FIRST BANKING WAYNE COMBINED
------------- ---------- -----------
<S> <C> <C> <C>
Interest Income
Loans (including fees)............................ $24,935,274 $3,036,348 $27,971,622
Interest Bearing Deposits......................... 672,159 7,463 679,622
Investment Securities............................. 5,655,310 376,179 6,031,489
Federal Funds Sold................................ 199,988 201,089 401,077
----------- ---------- -----------
Total Interest Income..................... 31,462,731 3,621,079 35,083,810
----------- ---------- -----------
Interest Expense
Deposits.......................................... 13,897,333 1,300,994 15,198,327
Other............................................. 737,760 737,760
----------- ---------- -----------
Total Interest Expense.................... 14,635,093 1,300,994 15,936,087
Net Interest Income................................. 16,827,638 2,320,085 19,147,723
Provision for Loan Losses........................... 932,285 154,000 1,086,285
----------- ---------- -----------
Net Interest Income After Provision for Loan
Losses............................................ 15,895,353 2,166,085 18,061,438
Non-Interest Income
Service Charges on Deposits....................... 2,099,425 461,931 2,561,356
Fees for Trust Services........................... 208,864 154,113 362,977
Other............................................. 626,554 13,877 640,431
----------- ---------- -----------
Total Non-Interest Income................. 2,934,843 629,921 3,564,764
Non-Interest Expense
Salaries and Other Personnel Expense.............. 5,743,529 604,599 6,348,128
Occupancy and Equipment Expense, Net.............. 2,207,788 200,253 2,408,041
Other............................................. 3,156,288 553,061 3,709,349
----------- ---------- -----------
Total Non-Interest Expense................ 11,107,605 1,357,913 12,465,518
Income Before Income Taxes.......................... 7,722,591 1,438,093 9,160,684
Provision for Income Taxes.......................... 2,258,707 412,763 2,671,470
----------- ---------- -----------
Net Income.......................................... 5,463,884 1,025,330 6,489,214
OTHER COMPREHENSIVE INCOME:
Unrealized holding gains on Securities Available
for Sale arising during the period............. 240,294 34,661 274,955
----------- ---------- -----------
Comprehensive Income................................ $ 5,704,178 $1,059,991 $ 6,764,169
=========== ========== ===========
Earnings per Share:
Basic............................................. $ 1.16 $ 2.58 $ 1.22
Diluted........................................... 1.16 2.35 1.21
Weighted Average Number of Shares Outstanding
Basic............................................. 4,691,164 397,245 5,314,934
Diluted........................................... 4,694,695 436,947 5,380,807
</TABLE>
<PAGE> 10
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA
FIRST BANKING WAYNE COMBINED
------------- ---------- -----------
<S> <C> <C> <C>
Interest Income
Loans (including fees)............................ $23,593,288 $2,433,258 $26,026,546
Interest Bearing Deposits......................... 584,746 3,077 587,823
Investments:...................................... 5,971,439 493,556 6,464,995
Federal Funds Sold................................ 418,504 124,062 542,566
----------- ---------- -----------
Total Interest Income..................... 30,567,977 3,053,953 33,621,930
----------- ---------- -----------
Interest Expense
Deposits.......................................... 13,789,734 1,065,545 14,855,279
Other............................................. 617,601 617,601
----------- ---------- -----------
Total Interest Expense.................... 14,407,335 1,065,545 15,472,880
Net Interest Income................................. 16,160,642 1,988,408 18,149,050
Provision for Loan Losses........................... 694,911 90,000 784,911
----------- ---------- -----------
Net Interest Income After Provision for Loan
Losses............................................ 15,465,731 1,898,408 17,364,139
Non-Interest Income
Service Charges on Deposits....................... 1,918,032 396,895 2,314,927
Fees for Trust Services........................... 215,946 215,946
Other............................................. 405,434 172,006 577,440
----------- ---------- -----------
Total Non-Interest Income................. 2,539,412 568,901 3,108,313
Non-Interest Expense
Salaries and Other Personnel Expense.............. 5,267,200 604,095 5,871,295
Occupancy and Equipment Expense, Net.............. 1,819,410 189,189 2,008,599
Other............................................. 3,344,054 479,226 3,823,280
----------- ---------- -----------
Total Non-Interest Expense................ 10,430,664 1,272,510 11,703,174
Income Before Income Taxes.......................... 7,574,479 1,194,799 8,769,278
Provision for Income Taxes.......................... 2,400,517 366,651 2,767,168
----------- ---------- -----------
Net Income.......................................... 5,173,962 828,148 6,002,110
OTHER COMPREHENSIVE INCOME:
Unrealized holding losses on securities Available
for Sale arising during the period............. (279,271) (35,621) (314,892)
----------- ---------- -----------
Comprehensive Income................................ $ 4,894,691 $ 792,527 $ 5,687,218
=========== ========== ===========
Earnings per Share:
Basic............................................. $ 1.10 $ 2.19 $ 1.14
Diluted........................................... 1.10 1.99 1.12
Weighted Average Number of Shares Outstanding
Basic............................................. 4,690,769 377,786 5,283,983
Diluted........................................... 4,690,769 415,620 5,343,392
</TABLE>
<PAGE> 11
NOTES TO UNAUDITED PRO FORMA CONDENSED
FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The unaudited pro forma combined financial statements are presented for
illustrative purposes only and give effect to the merger of First Banking and
Wayne, as contemplated herein, with the transaction accounted for as a "pooling
of interests." In accordance with SEC reporting rules, the pro forma condensed
statements of income, and the historical statements from which they are derived,
present only income from continuing operations before extraordinary items and
the cumulative effect of accounting changes.
The merger transaction closed on April 2, 1999. With respect to the merger
of First Banking and Wayne, the pro forma condensed statements of income for all
periods presented exclude the positive effects of potential cost savings which
may be achieved upon combining resources of the companies. Additionally, the pro
forma condensed statements of income for the year ended December 31, 1998, 1997,
1996 and for the three months ended March 31, 1998 exclude merger and
nonrecurring costs to integrate the companies, including investment broker,
legal and miscellaneous transaction costs of the merger. For the three months
ended March 31, 1999, the historical First Banking and Wayne Statements of
income included such merger costs which were incurred in such period of
approximately $185,000, net of tax.
The pro forma condensed balance sheet as of March 31, 1999 includes, in
accordance with SEC reporting rules, the impact of all transactions, whether of
a recurring or nonrecurring nature, that can be reasonably estimated and should
be reflected as of that date.
2. OTHER PRO FORMA ADJUSTMENTS
Intercompany Transactions. There were no intercompany transactions which
required elimination from the pro forma combined operating results or balance
sheet.
Common Shareholders' Equity. Pro forma common shareholders' equity as of
March 31, 1999 has been adjusted to reflect the following:
Common stock accounts are adjusted for the assumed issuance of
approximately 877,211 shares of First Banking common stock in exchange for
approximately 558,648 shares of Wayne common stock issued and outstanding
as of March 31, 1999 utilizing the Exchange Ratio.
Income per Common and Common Equivalent Share. Pro forma weighted average
common shares outstanding for the three years ended December 31, 1998 and for
the three month periods ended March 31, 1999 and 1998, is based upon First
Banking's and Wayne's historical weighted average shares as of the end of the
respective period, after adjustment of Wayne's historical number of shares by
the Exchange Ratio.
(c) Exhibits
1 Agreement and Plan of Merger between First Banking
and Wayne dated as of November 30, 1998 (incorporated
by reference to the Registration Statement on Form
S-4 (Registration No. 333-72061) filed by First
Banking with respect to the Merger).
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST BANKING COMPANY OF
SOUTHEAST GEORGIA
By: /s/ James Eli Hodges
----------------------------
James Eli Hodges
Chief Executive Officer
Date: June 15, 1999
