<PAGE>
<PAGE> UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission file number 2-94292
FNB Banking Company
___________________________________________________
(Exact name of registrant as specified in its charter)
Georgia 58-1479370
______________________ __________________________________
(State of Incorporation) (I.R.S. Employer Identification No.)
318 South Hill Street
Griffin, Georgia 30224
_________________________ ______
(Address of principal exec- (Zip Code)
utive offices)
404-227-2251
____________
(Telephone Number)
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 XX NO
Common stock, par value $1 per share: 807,800 shares
outstanding as of April 28, 1995
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<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet (unaudited) at March 31, 1995 2
Consolidated Statements of Earnings (unaudited) for the Three
Months Ended March 31, 1995 and 1994 3
Consolidated Statements of Cash Flows (unaudited) for the
Three Months Ended March 31, 1995 and 1994 4
Notes to Consolidated Financial Statements (unaudited) 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults Upon Senior Securities 8
Item 4. Submission of Matters to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports on Form 8-K 8
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
March 31, 1995
(Unaudited)
Assets
<S> <C>
Cash and due from banks $ 10,313,994
Federal funds sold 1,200,000
Investment securities held to maturity
(approximate market value of $18,335,071) 17,948,097
Investment securities available for sale
(amortized cost of $7,236,809) 6,903,933
Other investments 1,130,310
Mortgage loans held for sale 36,349
Loans 104,700,360
Less: Unearned income (195,386)
Allowance for loan losses (1,262,315)
___________
Loans, net 103,242,659
Premises and equipment, net 5,536,587
Other assets 1,523,443
___________
$ 147,835,372
===========
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing $ 26,972,910
Interest-bearing 103,444,675
___________
Total deposits 130,417,585
Notes payable 1,069,445
Other liabilities 1,033,188
____________
Total liabilities 132,520,218
Stockholders' equity:
Common stock, $1 par value; authorized
5,000,000 shares; issued and outstanding
807,800 shares 807,800
Retained earnings 14,727,052
Unrealized loss on investment securities, net of tax (219,698)
____________
Total stockholders' equity 15,315,154
____________
$ 147,835,372
=============
</TABLE>
See accompanying notes to consolidated financial statements.
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<PAGE>
<TABLE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Earnings
Three Months Ended March 31, 1995 and 1994
(Unaudited)
<CAPTION>
1995 1994
<S> <C> <C>
Interest income:
Loans $ 2,677,308 2,279,123
Investment securities:
Tax-exempt 140,207 148,358
Taxable 281,301 255,991
Federal funds sold 7,498 14,490
Total interest income 3,106,314 2,697,962
Interest expense:
Deposits 992,523 907,908
Notes payable 20,022 15,980
Other 7,615 2,915
Total interest expense 1,020,160 926,803
Net interest income 2,086,154 1,771,159
Provision for loan losses - 85,000
Net interest income after provision for
loan losses 2,086,154 1,686,159
Other income:
Service charges on deposit accounts 360,135 325,997
Fees for trust services 45,000 26,250
Other operating income 60,370 62,038
Total other income 465,505 414,285
Other expense:
Salaries and other personnel expense 958,957 980,606
Net occupancy and equipment expense 284,304 253,080
Other operating expense 466,512 613,613
Net loss on securities transactions - 12,557
Total other expense 1,709,773 1,859,856
Earnings before income taxes 841,886 240,588
Income taxes 232,180 51,000
Net earnings $ 609,706 189,588
Earnings per common share based on average outstanding
shares of 807,800 in 1995 and 1994:
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<PAGE>
<TABLE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1995 and 1994
(Unaudited)
<CAPTION>
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 609,706 189,588
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Provision for loan losses - 85,000
Writedowns and losses on sales of repossessed
collateral 5,658 117,320
Depreciation, amortization and accretion 77,932 104,892
Net loss on securities transactions - 12,557
Loss on disposal of premises and equipment - 40,112
Change in assets and liabilities:
Mortgage loans held for sale 6,289 68,040
Interest receivable 52,059 9,968
Interest payable 50,045 (6,707)
Other, net 71,313 91,209
Net cash provided by operating activities 873,002 711,979
Cash flows from investing activities:
Proceeds from sales, maturities and paydowns of
investment securities held to maturity 841,085 1,984,014
Proceeds from sales, maturities and paydowns of
investment securities available for sale 38,624 2,047,495
Purchases of investment securities held
to maturity - (876,016)
Purchases of investment securities available
for sale - (1,000,000)
Net change in loans (3,397,874) (1,321,815)
Purchases of premises and equipment (43,820) (204,299)
Proceeds from sales of repossessed collateral 16,342 411,453
Net cash provided by investing activities (2,545,643) 1,040,832
Cash flows from financing activities:
Net change in deposits 2,143,064 6,327,738
Net change in federal funds purchased (1,500,000) (800,000)
Repayment of long-term debt (41,667) (41,667)
Dividends paid (484,680) (444,290)
Net cash provided by financing activities 116,717 5,041,781
Net increase (decrease) in cash and
cash equivalents (1,555,924) 6,794,592
Cash and cash equivalents at beginning
of the period 13,069,918 6,999,936
Cash and cash equivalents at end of period $11,513,994 13,794,528
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation
The consolidated financial statements include the accounts of FNB
Banking Company (the Company) and its wholly-owned subsidiary, the
First National Bank of Griffin (Griffin). All significant
intercompany accounts and transactions have been eliminated in
consolidation.
The consolidated financial information furnished herein reflects all
adjustments which are, in the opinion of management, necessary to
present a fair statement of the results of operations and financial
position for the periods covered herein. All such adjustments are of
a normal recurring nature.
(2) Change in Account Principle - Impaired Loans
Effective January 1, 1995, the Company changed its method of
accounting for impaired loans and adopted Statement of Financial
Accounting Standards No. 114 "Accounting by Creditors for
Impairment of a Loan" (SFAS 114). SFAS 114 requires that impaired
loans be measured on the present value of expected future cash
flows discounted at the loan's effective interest rate, which is
the contractual interest rate adjusted for any deferred loan fee
or cost, premium or discount existing at the inception or
acquisition of the loan, or at the loan's observable market price,
or the fair value of the collateral of the loan if the loan is
collateral dependent. The impact of the adoption of SFAS 114 as
of January 1, 1995 is immaterial to the consolidated financial
statements.
<PAGE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For Each of the Three Months in the Periods Ended
March 31, 1995 and 1994
Financial Condition
Total assets at March 31, 1995 were $147,835,372, representing a
$1,183,450 (0.8%) increase from December 31, 1994. Deposits increased
$2,143,064 (1.7%) from December 31, 1994. Loans increased $3,414,831
(3.4%). The allowance for loan losses at March 31, 1995 totalled
$1,262,315 representing 1.2% of total loans compared to December 31, 1994
totals of $1,245,314 also representing 1.2% of total loans. Cash and cash
equivalents decreased $1,555,924 from December 31, 1994.
The total of nonperforming assets which includes nonaccruing
loans,repossessed collateral and loans for which payments are more than
90 days past due increased 10.0% or $178,000 from $1,783,000 at December
31,1994 to $1,961,000 at March 31, 1995. There were no related party
loans which were considered nonperforming at March 31, 1995.
The Company's subsidiary bank was most recently examined by its
primary regulatory authority in November 1994. There were no
recommendations by the regulatory authority that in management's opinion
will have material effects on the Company's liquidity, capital resources
or operations.
Results of Operations
Net interest income increased $314,995 (17.8%) in the first three
months of 1995 compared to the same period for 1994. Interest income
for the first three months of 1995 was $3,106,314 representing an increase
of $408,352 (15.1%) over the same period in 1994. Interest expense for
the first three months of 1995 increased $93,357 (10.1%) compared to the
same period in 1994.
The provision for loan losses for the first three months of 1995
decreased $85,000 compared to the same period for 1994. No provision
was made during the first three months of 1995 compared to an $85,000
provision made for the same period in 1994. Net recoveries during the
first three months of 1995 amounted to $17,000. It is management's belief
that the allowance for loan losses is adequate to absorb probable losses
in the portfolio.
Other expenses for the first three months of 1995 decreased
$150,083 (8.1%) compared to the first three months in 1994. The decrease
is primarily attributable to a loss on the sale of repossessed collateral
of $110,000 and a loss on the disposal of premises and equipment of
$40,000 that occurred during the first three months of 1994. Income tax
expense expressed as a percentage of earnings before income taxes
increased primarily as a result of the decrease in tax-exempt income as
a percentage of total income.
<PAGE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, continued
For the Three Months Ended March 31, 1995
Capital
The following tables present FNB Banking Company's regulatory
capital position at March 31, 1995:
Risk-Based Capital Ratios
Tier 1 Tangible Capital, Actual 14.0%
Tier 1 Tangible Capital minimum requirement 4.0%
Excess 10.0%
Total Capital, Actual 15.1%
Total Capital minimum requirement 8.0%
Excess 7.1%
Leverage Ratio
Tier 1 Tangible Capital to adjusted total assets
("Leverage Ratio") 10.8%
Minimum leverage requirement 3.0%
Excess 7.8%
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
FNB BANKING COMPANY AND SUBSIDIARY
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
(a) FNB Banking Company's annual meeting of stockholders was
held on March 23, 1995.
(b) The following is a summary of matters submitted to a vote
of security holders:
1. The election of the following directors to serve the
current year term:
C.A. Knowles
James A. Mankin
W. Cameron Mitchell
John T. Newton, Jr.
John T. Newton, Sr.
David G. Newton
J. Henry Cheatham, III
A tabulation of votes concerning the above issues is as
follows:
Director
Election
Shares voted by proxy in favor 564,930
Shares voted in person in favor 75,046
Shares voted in person against -
Shares abstained from voting -
Total shares represented 639,976
Total shares outstanding 807,800
* - Directors were elected by slate, not individually.
Vote tabulation is therefore by slate.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
The following Exhibit is filed as a part of this report:
Exhibit No. Description
27 Financial Data Schedule
<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
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 thereunto duly authorized.
FNB BANKING COMPANY
By: /S/ C.A. Knowles
_______________________________
C.A. Knowles, President and
Treas.
(Principal Executive Officer)
Date:______________________________
By: /S/ William K. Holmes
______________________________
William K. Holmes
Assistant Treasurer
(Principal Accounting Officer)
Date:_______________________________
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000757262
<NAME> FNB BANKING CO
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 10,313,994
<INT-BEARING-DEPOSITS> 103,444,675
<FED-FUNDS-SOLD> 1,200,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 6,903,933
<INVESTMENTS-CARRYING> 17,948,097
<INVESTMENTS-MARKET> 18,335,071
<LOANS> 103,242,659
<ALLOWANCE> 1,262,315
<TOTAL-ASSETS> 147,835,372
<DEPOSITS> 130,417,585
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,033,188
<LONG-TERM> 1,069,445
<COMMON> 807,800
0
0
<OTHER-SE> 14,507,354
<TOTAL-LIABILITIES-AND-EQUITY> 147,835,372
<INTEREST-LOAN> 2,677,308
<INTEREST-INVEST> 429,006
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 3,106,314
<INTEREST-DEPOSIT> 992,523
<INTEREST-EXPENSE> 1,020,160
<INTEREST-INCOME-NET> 2,086,154
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,709,773
<INCOME-PRETAX> 841,886
<INCOME-PRE-EXTRAORDINARY> 841,886
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 609,706
<EPS-PRIMARY> .75
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.4
<LOANS-NON> 1,654,000
<LOANS-PAST> 307,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,245,314
<CHARGE-OFFS> 60,422
<RECOVERIES> 77,423
<ALLOWANCE-CLOSE> 1,262,315
<ALLOWANCE-DOMESTIC> 1,262,315
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
