|
|
|
|
|
|
|
|
|
|
Previous: AIM INVESTMENT SECURITIES FUNDS INC, 497, 1996-11-22 |
Next: ACHIEVEMENT FUNDS TRUST, 497, 1996-11-22 |
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ________ to ________
Commission file number 33-25402-A
LANIER BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
GEORGIA 58-1814713
(State of Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Indentification No.)
854 WASHINGTON STREET, GAINESVILLE, GEORGIA 30501
(Address of Principal Executive Offices) (Zip Code)
(770) 536-2265
(Issuer's Telephone Number, Including Area Code)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes_X_ No__
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest most practicable date:
CLASS OUTSTANDING AT November 1, 1996
Common Stock, $1.00 par value 618,913 shares
<PAGE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information
Consolidated Balance Sheet-September 30, 1996 3
Consolidated Statements of Income-Three and Nine Months Ended
September 30, 1996 and 1995 4
Consolidated Statements of Cash Flows-Nine Months Ended
September 30, 1996 and 1995 5
Notes To Consolidated Financial Statements 6
Management's Discussion and Analysis of Financial Condition
and Results of Operations 7 and 8
Part II. Other Information
Item 6 - Exhibits and reports on Form 8-K. 10
- 2 -
<PAGE>
<TABLE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
<CAPTION>
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<S> <C>
ASSETS September 30, 1996
Cash and due from banks $4,023,301
Securities available for sale at fair value 8,188,830
Securities held for investment at cost
( fair value $ 10,094,981) 10,250,652
Federal funds sold 2,500,000
Loans 49,929,341
Less reserve for loan losses 706,891
-----------
Net loans 49,222,450
Premises & equipment, net 3,107,934
Other assets 2,053,375
Total Assets $79,346,542
===========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits:
Demand $10,947,138
Interest-bearing demand 10,777,065
Savings 9,231,796
Certificates of deposit 38,997,140
-----------
Total deposits $69,953,139
Obligations under captial lease 131,517
Other short-term borrowings 350,000
Other liabilities 801,658
Total liabilities $71,236,314
===========
Stockholders' Equity
Common stock, $1.00 par, 10,000,000 shares authorized,
618,913 shares issued and outstanding $618,913
Surplus 5,232,102
Retained earnings 2,315,074
Unreal losses on secur. avail. for sale, net of taxes (55,861)
----------
Total stockholders' equity $8,110,228
Total Liabilities and Equity $79,346,542
===========
</TABLE>
- 3 -
<PAGE>
<TABLE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months ended Nine Months ended
September 30, September 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest income:
Interest & fees on loan $1,382,864 $1,278,933 $4,057,248 $3,547,744
Interest on Fed funds sold 24,135 37,106 106,283 78,275
Interest on tax securities 286,676 201,323 776,326 582,829
$1,693,675 $1,517,362 $4,939,857 $4,208,848
Interest expense:
Interest on deposits $803,884 $749,030 $2,386,496 $2,050,827
Interest on oth borrowings 7,176 11,940 28,875 31,844
811,060 760,970 2,415,371 2,082,671
Net interest income before
provision for loan losses $882,615 $756,392 $2,524,486 $2,126,177
Provision for loan losses 30,000 30,000 90,000 90,000
Net interest income $852,615 $726,392 $2,434,486 $2,036,177
Other income
Service chrgs on deposit accts
and other income $133,124 $104,786 $374,763 $320,018
Net realized gains of
securities available for sale 0 0 0 2,664
$133,124 $104,786 $374,763 $322,682
Other expense
Salaries & employee benefits $324,475 $294,554 $935,233 $817,515
Other operating expenses 255,397 239,856 753,571 748,229
$579,872 $534,410 $1,688,804 $1,565,744
Net income before applicable
income taxes $405,867 $296,768 1,120,445 $793,115
Applicable income taxes 127,781 85,000 350,903 225,000
Net income $278,086 $211,768 $769,542 $568,115
Net income per common and
common equivalent share $0.47 $0.38 $1.39 $1.01
Dividends per share
of common stock $0.00 $0.00 $0.00 $0.00
Average common and common
equivalent shares outstanding 588,649 567,461 552,189 567,461
</TABLE>
- 4 -
<PAGE>
<TABLE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine months ended September 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $769,542 $568,115
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization 149,911 130,295
Provision for loan losses 90,000 90,000
Net realized gains on securities
available for sale 0 (2,664)
Incr (decr) in interest receivable (100,958) 31,432
Incr (decr) in interest payable (86,633) 207,845
Gain on sale of other real estate owned (604) 0
Other assets and liabilities, net (270,597) 411,526
Total adjustments ($218,881) $868,434
Net cash provided by operating activities $550,661 $1,436,549
CASH FLOWS FROM INVESTING ACTIVITIES
Purch of securities available for sale ($2,750,625) ($500,000)
Proceeds from sales of securities
available for sale 0 502,664
Proceeds from maturities of securities
available for sale 1,235,796 757,610
Purchases of secururities held for
investment (6,010,185) (750,378)
Proceeds from maturities of securities
held for investment 2,742,278 291,915
Purchases of premises and equipment (235,566) (245,367)
Proceeds from sale of other real
estate owned 4,389 0
Increase in loans, net (157,791) (4,990,185)
Purch of cash value of life insurance 0 (1,000,000)
(Incr) decr in Federal funds sold, net 500,000 (2,200,000)
Net cash used in investing activities ($4,671,704) ($8,133,741)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in deposits $5,003,377 $8,947,417
Repayment of capital lease (24,262) (15,220)
Proceeds fr issuance of common stock 518,626 10,000
Incr (decr) in other borrow, net (350,000) (800,000)
Cash dividends paid 0 (78,935)
Net cash prov by financing activities $5,147,741 $8,063,262
Net increase in cash and due fr banks $1,026,698 $1,366,070
Cash and due from banks, beg of period 2,996,603 2,805,230
Cash and due from banks, end of period $4,023,301 $4,171,300
Cash paid during the period for:
Interest $2,502,004 $1,874,826
Taxes $470,322 $281,262
NONCASH TRANSACTIONS
Unrealized (gains) losses on
securities available for sale $110,993 ($352,598)
Principal balances of loan
transferred to other real estate $0 $679,000
</TABLE>
- 5 -
<PAGE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. Basis of Presentation
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim periods.
The results of operations for the nine months ended September 30, 1996
are not necessarily indicative of the results to be expected for the
full year.
-6-
<PAGE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial
position and operating results during the periods included in
the accompanying consolidated financial statements.
Financial Condition
As of September 30, 1996, the Company experienced an increase in
total assets of 7.47%, as compared to December 31, 1995.
Total loans increased $141,000 during this period or
approximately .28%. Deposits increased $5,003,000 or
7.70% during this period. The increases in total assets, loans
and deposits are attributed to the improvement in the
stability of the local economy and the normal growth of the bank.
Liquidity
As of September 30, 1996, the liquidity rate was 35.44%, which management
considers to be adequate to meet the Company's funding needs. Liquidity
is measured by the ratio of net cash, short-term and marketable securities
to net deposits and short-term liabilities.
Capital
Banking regulations require the banks and bank holding companies to
maintain minimum capital ratios to assets. At September 30, 1996,
the Company's capital ratios on a combined basis exceeded
the required ratios as follows:
Regulatory
Actual Requirement
Leverage capital ratio 9.31% 4.00%
Risk based capital ratios:
Core capital 13.57% 4.00%
Total capital 14.82% 8.00%
- 7 -
<PAGE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Net interest income for the nine months ended September 30, 1996
increased 18.73% to $2,524,000 over the 2,126,000 for the same
period in 1995. Interest income for the nine month period
increased $731,000 or 17.37%, while interest expense increased
$333,000 or 15.97%. Net interest income for the three month period
ended September 30, 1996 increased $126,000 or 16.69%
compared to the three month period ended September 30, 1995.
Interest income for the three month period increased $176,000
or 11.62% and interest expense increased $50,000 or 6.58% compared
to the same period in 1995. The increase in interest income and expense
is primarily due to the increase in the average balance of loans
and interest bearing deposits as well as the effect of an
increase in interest rates.
The provision for loan losses remained the same during the nine months
ended September 30,1996 as compared to the same period in 1995.
The loan loss reserve as a percentage of total loans
increasesd from 1.27% at December 31, 1995 to 1.42% at September 30,1996.
Based on management's assessment of the economic environment and prior
charge-off and collection history,
the reserve for loan losses is considered adequate to meet future
losses inherent in the portfolio.
Total other income increased $52,000 during the nine month period
ended September 30, 1996, as compared to 1995. The most significant
change occurred in NSF charges which increased
from $162,000 as of September 30, 1995 to $211,000 for the same
period in 1996. This increase is primarily due to new procedures
implemented by the Bank to reduce the number of reversals
of NSF charges. No other changes in other operating income were material.
Other operating expenses increased 7.86% or $123,000. The increase is
primarily attributable to an increase of $118,000 in salary and employee
benefits. The increase in salaries was the result of
increases in staff in connection with the Bank's growth. No other changes
in other operating expenses were material.
Net income increased for the nine month period ended September 30, 1996
by $201,000 as compared to the same period in 1995. The subsidiary bank
continues to experience growth, which has
enabled the Company to increase earnings. This trend is expected
to continue.
Income tax expense increased by $126,000 for the nine months ended
September 30, 1996 as compared to the nine month period ended
September 30, 1995. The effective tax rate increased to
31% as compared to 28% for the same period in 1995.
- 8 -
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
LANIER BANKSHARES, INC. & SUBSIDIARIES
Date: 11/12/96 By:
Joseph D. Chipman, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
Date: 11/12/96 By:
Jeffrey D. Hunt
Senior Vice President, Operations
(Principal Financial and Accounting Officer)
- 9 -
<PAGE>
LANIER BANKSHARES, INC. & SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6 - Exhibits and reports on Form 8-K.
(a) Exhibits.
27. Financial Data Schedule
(a) Reports on Form 8-K.
None.
- 10 -
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 4,023,301
<INT-BEARING-DEPOSITS> 70,000
<FED-FUNDS-SOLD> 2,500,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,188,830
<INVESTMENTS-CARRYING> 10,250,652
<INVESTMENTS-MARKET> 10,094,981
<LOANS> 49,929,341
<ALLOWANCE> 706,891
<TOTAL-ASSETS> 79,346,542
<DEPOSITS> 69,953,139
<SHORT-TERM> 350,000
<LIABILITIES-OTHER> 933,175
<LONG-TERM> 0
0
0
<COMMON> 618,913
<OTHER-SE> 7,491,315
<TOTAL-LIABILITIES-AND-EQUITY> 79,346,542
<INTEREST-LOAN> 4,057,248
<INTEREST-INVEST> 776,326
<INTEREST-OTHER> 106,283
<INTEREST-TOTAL> 4,939,857
<INTEREST-DEPOSIT> 2,386,496
<INTEREST-EXPENSE> 28,875
<INTEREST-INCOME-NET> 2,415,371
<LOAN-LOSSES> 90,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,688,804
<INCOME-PRETAX> 1,120,445
<INCOME-PRE-EXTRAORDINARY> 1,120,445
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 769,542
<EPS-PRIMARY> 1.39
<EPS-DILUTED> 1.39
<YIELD-ACTUAL> 8.96
<LOANS-NON> 149,000
<LOANS-PAST> 170,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 633,732
<CHARGE-OFFS> 19,832
<RECOVERIES> 2,991
<ALLOWANCE-CLOSE> 706,891
<ALLOWANCE-DOMESTIC> 90,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
|
|