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Previous: ENEX OIL & GAS INCOME PROGRAM IV SERIES 1 LP, 10QSB, 1997-05-15 |
Next: MOBILE TELECOMMUNICATION TECHNOLOGIES CORP, 10-Q, 1997-05-15 |
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
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) Identification 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 MAY 8, 1997
Common Stock, $1.00 par value 618,013 shares
LANIER BANKSHARES, INC. & SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information
Consolidated Balance Sheet-March 31, 1997 3
Consolidated Statements of Income-Three Months Ended
March 31, 1997 and 1996 4
Consolidated Statements of Cash Flows-Three Months Ended
March 31, 1997 and 1996 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 4 - Any matter submitted to the security holders
for a vote. 10
Item 6 - Exhibits and reports on Form 8-K. 10
- 2 -
LANIER BANKSHARES, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS March 31, 1997
Cash and due from banks $3,975,262
Securities available for sale at fair value 9,480,106
Securities held for investment at cost
(fair value $11,794,000) 11,926,747
Federal funds sold 700,000
Loans 52,302,533
Less reserve for loan losses 735,788
-----------
Net loans 51,566,745
Premises & equipment, net 3,040,870
Other assets 2,109,201
-----------
$82,798,931
===========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits:
Demand $12,197,464
Interest-bearing demand 11,199,769
Savings 9,626,289
Certificates of deposit 39,614,782
-----------
Total deposits $72,638,304
Obligations under captial lease 114,627
Other short-term borrowings 521,052
Liabilities 933,775
-----------
Total liabilities $74,207,758
-----------
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 2,801,198
Unrealized losses on securities available for sale,
net of taxes (41,840)
-----------
$8,610,373
-----------
Less cost of 900 shares of treasury stock 19,200
-----------
Total stockholders' equity $8,591,173
-----------
$82,798,931
===========
- 3 -
LANIER BANKSHARES, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months ended
March 31
1997 1996
Interest income:
Interest & fees on loans $1,392,153 $1,335,200
Interest on Federal funds sold 17,554 39,426
Interest on nontaxable securities 76,773 50,342
Interest on taxable securities 240,483 164,865
---------- ----------
$1,726,963 $1,589,833
---------- ----------
Interest expense:
Interest on deposits $798,297 $783,102
Interest on other borrowings 6,611 11,792
---------- ----------
804,908 794,894
---------- ----------
Net interest income before
provision for loan losses $922,055 $794,939
Provision for loan losses 30,000 30,000
---------- ----------
Net interest income $892,055 $764,939
---------- ----------
Other income $147,849 $118,700
---------- ----------
Other expense
Salaries & employee benefits $341,275 $304,321
Other operating expenses 250,776 249,503
---------- ----------
$592,051 $553,824
---------- ----------
Net income before applicable income taxes $447,853 $329,815
Applicable income taxes 124,692 101,718
---------- ----------
Net income $323,161 $228,097
========== ==========
Net income per common and common equiv. share $0.52 $0.43
========== ==========
Dividends per share of common stock $0.00 $0.00
========== ==========
Weighted average shares outstanding 618,496 553,239
========== ==========
- 4 -
LANIER BANKSHARES, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three months ended March 31,
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $323,161 $228,097
Adjustments to reconcile net income to net -------- --------
cash provided by operating activities
Depreciation and amortization 49,624 48,472
Provision for loan losses 30,000 30,000
Decrease in interest receivable 14,880 61,150
Increase (decrease) in interest payable (91,635) 8,746
Other assets and liabilities, net (135,798) (332,739)
---------- ----------
Total adjustments ($132,929) ($184,371)
---------- ----------
Net cash provided by operating activities $190,232 $43,726
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available for sale ($321,135) ($1,250,625)
Proceeds from maturities of securities
available for sale 276,744 395,870
Purchases of securities held for investment (442,540) (3,790,185)
Proceeds from maturities of securities
held for investment 0 2,080,592
Purchases of premises and equipment (5,829) (2,831)
(Increase) decrease in loans, net (1,018,222) 1,271,464
Decrease in Federal funds sold, net 1,100,000 600,000
----------- -----------
Net cash used in investing activities ($410,982) ($695,715)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits ($1,207,378) $1,621,958
Repayment of capital lease (8,519) (7,947)
Purchase of treasury stock (19,200) 0
Net decrease in other borrowings (2,118) 0
------------ ----------
Net cash provided by (used in)
financing activities ($1,237,215) $1,614,011
------------ ----------
Net increase (decrease) in cash and
due from banks ($1,457,965) $962,022
Cash and due from banks, beginning of period 5,433,227 2,996,603
----------- ----------
Cash and due from banks, end of period $3,975,262 $3,958,625
----------- ----------
Cash paid during the period for:
Interest $896,543 $786,149
Taxes $9,841 $111,622
NONCASH TRANSACTIONS
Unrealized (gains) losses on securities
available for sale $53,357 ($46,874)
- 5 -
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 three months ended March 31, 1997
are not necessarily indicative of the results to be expected for
the full year.
Note 2. Current Accounting Developments
The Financial Accounting Standards Board has issued SFAS NO. 128,
"Earnings Per Share". SFAS No. 128 establishes standards for
computing and presenting earnings per share (EPS) and applies to
entities with publicly held common stock or potential common stock.
This Statement simplifies the standards for computing
earnings per share previously found in APB Opinion No. 15, Earnings
per Share, and makes them comparable to international EPS standards.
It replaces the presentation of primary EPS with a presentation of
basic EPS. It also requires dual presentation of basic and diluted
EPS on the face of the income statement for all entities with
comples capital structures and requires a reconciliation of the
numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation. The
effective date of this statement is for financial statements issued
for periods ending after December 15, 1997. The adoption of this
Statement is not expected to have a material effect on earnings
per share.
- 6 -
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 March 31, 1997, the Company experienced a decrease in total assets of
$1,140,000 or 1.4%, as compared to December 31, 1996. Total loans increased
$1,017,000 during this period or approximately 2.0% while cash and due
from banks and Federal funds sold decreased $1,458,000 or approximately 20.2%.
Deposits decreased $1,207,000 or 1.6% during this period.
Liquidity
As of March 31, 1997, the liquidity rate was 35.6% 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 holding companies to maintain minimum
capital ratios to assets. At March 31, 1997, the Bank's capital ratios
exceeded the required ratios as follows:
Regulatory
Actual Requirement
Leverage capital ratio 9.51% 4.00%
Risk based capital ratios:
Core capital 14.41% 4.00%
Total capital 15.67% 8.00%
- 7 -
LANIER BANKSHARES, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Net interest income for the three months ended March 31, 1997 increased 16%
to $922,000 over the $795,000 for the same period in 1996. Interest income
for the three month period increased 137,000 or 8.62%, while interest expense
increased $10,000 or 1.26%. The increase in interest income is primarily due
to the increase in the average balance of loans and taxable securities
during the first quarter of 1997 as compared to the first quarter of 1996.
The provision for loan losses remained the same ($30,000) for the three
months ended March 31, 1997 as compared to the same period in 1996. The
loan loss reserve as a percentage of total loans increased from 1.38% at
December 31, 1996 to 1.41% at March 31, 1997. This increase
was due to slower loan growth and minimal net charge-offs during the first
quarter of 1997. 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 $29,000 during the three month period ended
March 31, 1997, as compared to 1996 primarily as a result of increased service
charges on deposit accounts.
Total other expenses increased $38,000 or 6.9% for the period ended
March 31, 1997 as compared to the same period in 1996. The increase is
primarily attributable to an increase of $37,000 in salary and employee
benefits. Other operating expenses have remained stable for the first
quarter of 1997 as compared to the first quarter of 1996.
Income tax expense increased by $23,000 for the three month period ended
March 31, 1997 as compared to the same period in 1996. The effective tax
rate decreased to 28% as compared to 31% the same period.
Net income increased for the three month period ended March 31, 1997 by
$95,000 as compared to the same period in 1996. This increase is due
primarily due to increases in average interest-earning assets resulting
- 8 -
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: 5/12/97 By:
/s/ Joseph D. Chipman, Jr.
President and Chief Executive Officer
(Principal Executive Officer)
Date: 5/12/97 By:
/s/ Jeffrey D. Hunt
Senior Vice President, Operations
(Principal Financial and Accounting Officer)
- 9 -
LANIER BANKSHARES, INC. & SUBSIDIARIES
PART II - OTHER INFORMATION
Item 4- Any matter submitted to the security holders for a vote.
No items were submitted to the shareholders for a vote during
the quarter ended March 31, 1997.
Item 6 - Exhibits and reports on Form 8-K.
(a) Exhibits.
None.
(a) Reports on Form 8-K.
None.
- 10 -
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 3,927,000
<INT-BEARING-DEPOSITS> 48,000
<FED-FUNDS-SOLD> 700,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,480,106
<INVESTMENTS-CARRYING> 11,926,747
<INVESTMENTS-MARKET> 11,794,000
<LOANS> 52,302,533
<ALLOWANCE> 735,788
<TOTAL-ASSETS> 82,798,931
<DEPOSITS> 72,638,304
<SHORT-TERM> 521,052
<LIABILITIES-OTHER> 1,048,402
<LONG-TERM> 0
0
0
<COMMON> 618,913
<OTHER-SE> 7,972,260
<TOTAL-LIABILITIES-AND-EQUITY> 82,798,931
<INTEREST-LOAN> 1,392,153
<INTEREST-INVEST> 334,810
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,726,963
<INTEREST-DEPOSIT> 798,297
<INTEREST-EXPENSE> 6,611
<INTEREST-INCOME-NET> 922,055
<LOAN-LOSSES> 30,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 592,051
<INCOME-PRETAX> 447,853
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 323,161
<EPS-PRIMARY> .52
<EPS-DILUTED> .52
<YIELD-ACTUAL> 9.62
<LOANS-NON> 143,000
<LOANS-PAST> 84,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 183,000
<ALLOWANCE-OPEN> 706,852
<CHARGE-OFFS> 2,259
<RECOVERIES> 1,195
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 30,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 735,788
</TABLE>
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