<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Mark One
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission File Number: 0-12498
Lanier Bankshares, Inc.
-----------------------------------------------
(Exact name of small business issuer as specified in its charter)
Georgia 58-1814713
----------------------------------- -----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
854 Washington Street, Gainesville, Georgia 30503
-----------------------------------------------------
(Address of principal executive offices)
(770) 536-2265
----------------------------
(Issuer's telephone number)
N/A
--------------------------------------------------------------------
(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
---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 1, 1998: 1,200,000; $1.00 par value.
Transitional Small Business Disclosure Format (Check One) Yes No X
---
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
- --------------------------------------------------------------------------------
INDEX
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Balance Sheet - June 30, 1998 3
Consolidated Statements of Income and Comprehensive
Income - Three Months Ended June 30, 1998 and 1997
and Six Months Ended June 30, 1998 and 1997 4
Consolidated Statements of Cash Flows - Six
Months Ended June 30, 1998 and 1997 5 and 6
Notes to Consolidated Financial Statements 7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II. OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders 16
Item 6 - Exhibits and Reports on Form 8-K 16
Signatures 17
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
JUNE 30, 1998
(Unaudited)
Assets
------
Cash and due from banks $ 5,684,737
Interest-bearing deposits in banks 84,370
Securities available-for-sale, at fair value 8,954,423
Securities held-to-maturity (fair value $10,784,000) 10,673,732
Federal funds sold 2,700,000
Loans 72,993,503
Less allowance for loan losses 923,692
----------------
Loans, net 72,069,811
----------------
Premises and equipment 3,567,025
Other assets 3,013,039
----------------
$ 106,747,137
================
Liabilities and Stockholders' Equity
------------------------------------
Deposits
Noninterest-bearing demand $ 15,331,358
Interest-bearing demand 16,205,347
Savings 10,118,376
Time 52,246,633
----------------
Total deposits 93,901,714
Obligation under capital lease 69,747
Other borrowings 1,524,845
Other liabilities 1,372,979
----------------
Total liabilities 96,869,285
----------------
Commitments and contingent liabilities
Stockholders' equity
Common stock, par value $1.00; 10,000,000 shares
authorized; 1,237,826 shares issued 1,237,826
Capital surplus 5,232,969
Retained earnings 3,766,148
Treasury stock, 37,826 shares (415,486)
Accumulated other comprehensive income 56,395
----------------
Total common stockholders' equity 9,877,852
----------------
$ 106,747,137
================
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
THREE MONTHS ENDED JUNE 30, 1998 AND 1997 AND
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest Income
Loans $ 1,962,582 $ 1,481,745 $ 3,812,856 $ 2,873,898
Taxable securities 159,791 238,260 313,394 478,712
Nontaxable securities 105,275 78,571 198,826 155,344
Federal funds sold 30,623 29,625 55,272 47,179
Deposits in banks 367 - 1,006 -
----------- ----------- ----------- -----------
Total interest income 2,258,638 1,828,201 4,381,354 3,555,133
----------- ----------- ----------- -----------
Interest expense
Deposits 1,023,784 840,367 1,979,880 1,638,664
Other borrowings 13,389 10,628 25,660 17,237
----------- ----------- ----------- -----------
Total interest expense 1,037,173 850,993 2,006,540 1,855,901
----------- ----------- ----------- -----------
Net interest income 1,221,465 977,208 2,376,814 1,899,232
Provision for loan losses 60,000 30,000 120,000 60,000
----------- ----------- ----------- -----------
Net Interest income after
provision for loan losses 1,181,485 947,208 2,255,814 1,839,232
----------- ----------- ----------- -----------
Other Income
Service charges on deposit accounts 135,510 127,138 273,262 254,391
Other operating income 37,351 36,768 78,070 57,364
Gain on sale of securities available-for-sale - - - 31
----------- ----------- ----------- -----------
172,861 163,906 351,332 311,786
----------- ----------- ----------- -----------
Other expenses
Salaries and employee benefits 386,283 341,923 754,410 683,198
Equipment and occupancy expenses 97,428 112,250 200,643 211,272
Other operating expenses 188,690 179,979 348,728 331,733
----------- ----------- ----------- -----------
672,401 834,152 1,303,781 1,226,203
----------- ----------- ----------- -----------
Income before income taxes 661,925 476,962 1,303,365 924,815
Income tax expense 201,073 154,625 391,809 279,317
----------- ----------- ----------- -----------
Net income 460,852 322,337 811,556 645,498
----------- ----------- ----------- -----------
Other comprehensive income (loss):
Unrealized gains (losses) on securities
available-for-sale arising during period, net of tax (4,751) 86,579 (2,243) 31,365
----------- ----------- ----------- -----------
Comprehensive Income $ 456,101 $ 388,916 $ 909,313 $ 876,863
=========== =========== =========== ===========
Basic earnings per common share $ 0.38 $ 0.26 $ 0.76 $ 0.52
=========== =========== =========== ===========
Diluted earnings per common share $ 0.38 $ 0.26 $ 0.75 $ 0.51
=========== =========== =========== ===========
Cash dividends per share of common stock $ 0.14 $ - $ 0.14 $ -
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 911,556 $ 645,498
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 88,193 101,982
Provision for loan losses 120,000 60,000
Net realized gains on securities available-for-sale - (31)
Increase in interest receivable (120,058) (40,383)
Decrease in interest payable (3,923) (93,513)
Other operating activities (331,039) (171,100)
------------- -------------
Net cash provided by operating activities 664,729 502,453
------------- -------------
INVESTING ACTIVITIES
Increase in interest-bearing deposits in banks (47,735) -
Purchases of securities available-for-sale (3,925,198) (1,068,572)
Proceeds from sales of securities available-for-sale - 248,359
Proceeds from maturities of securities available-for-sale 3,835,000 697,438
Purchases of securities held-to-maturity (3,410,661) (442,640)
Proceeds from maturities of securities held-to-maturity 1,630,000 779,244
Net increase in Federal funds sold (2,500,000) (900,000)
Net increase in loans (5,192,616) (3,767,019)
Purchase of premises and equipment (499,656) (73,422)
Payment of life insurance premiums (600,000) -
------------- -------------
Net cash used in investing activities (10,710,866) (4,526,512)
------------- -------------
FINANCING ACTIVITIES
Net increase in deposits 10,886,924 2,600,648
Repayment of obligations under capital lease (18,420) (17,186)
Net proceeds of other borrowings 799,878 43,826
Purchase of treasury stock - (41,200)
------------- -------------
Net cash provided by financing activities 11,668,382 2,585,988
------------- -------------
Net increase (decrease) in cash and due from banks 1,622,245 (1,438,071)
Cash and due from banks at beginning of period 4,062,492 5,433,227
------------- -------------
Cash and due from banks at end of period $ 5,684,737 $ 3,995,156
============= =============
</TABLE>
5
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(Unaudited)
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 2,009,463 $ 1,749,414
Income taxes $ 409,000 $ 263,300
NONCASH TRANSACTIONS
Unrealized (gains) losses on securities available-for-sale $ 3,451 $ (47,521)
</TABLE>
The accompanying notes are an Integral part of these consolidated financial
statements.
6
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. BASIS OF PRESENTATION
The consolidated 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 six month period ended June 30,
1998 are not necessarily indicative of the results to be expected for
the full year.
NOTE 2. EARNINGS PER COMMON SHARE
The following is a reconciliation of net income (the numerator) and
weighted-average shares outstanding (the denominator) used in
determining basic and diluted earnings per common share (EPS):
Three Months Ended June 30, 1998
-------------------------------------------------
Net Weighted-Average
Income Shares Per share
(Numerator) (Denominator) Amount
------------- ---------------- ------------
Basic EPS $ 460,852 1,200,000 $ 0.38
============
Effect of
Dilutive
Securities
Stock options - 23,694
--------- -----------
Diluted EPS $ 460,852 1,223,694 $ 0.38
========= =========== ============
Three Months Ended June 30, 1997
-------------------------------------------------
Net Weighted-Average
Income Shares Per share
(Numerator) (Denominator) Amount
------------- ----------------- ------------
Basic EPS $ 322,337 1,235,652 $ 0.26
============
Effect of
Dilutive
Securities
Stock options - 18,954
------------- -----------------
Diluted EPS $ 322,337 1,254,606 $ 0.26
============= ================= ============
7
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 2. EARNINGS PER COMMON SHARE (Continued)
Six Months Ended June 30, 1998
---------------------------------------------------
Net Weighted-Average
Income Shares Per share
(Numerator) (Denominator) Amount
-------------- ---------------- -------------
Basic EPS $ 911,556 1,200,000 $ 0.76
=============
Effect of
Dilutive
Securities
Stock options - 23,694
------------ ------------
Diluted EPS $ 911,556 1,223,694 $ 0.75
============ ============ =============
Six Months Ended June 30, 1997
---------------------------------------------------
Net Weighted-Average
Income Shares Per share
(Numerator) (Denominator) Amount
-------------- ---------------- -------------
Basic EPS $ 645,498 1,236,380 $ 0.52
=============
Effect of
Dilutive
Securities
Stock options - 18,954
------------ ------------
Diluted EPS $ 645,498 1,255,334 $ 0.51
============ ============ =============
Weighted-average shares for the periods ending June 30, 1997 have
been adjusted for a 1 for 1 common stock split declared in the first
quarter of 1998.
8
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 3. CURRENT ACCOUNTING DEVELOPMENTS
The adoption of the provisions of SFAS No. 125, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities" that became effective on January 1, 1998 did not have a
material effect on the Company's financial statements.
The adoption of SFAS No. 130, "Reporting Comprehensive Income", that
became effective on January 1, 1998 required the Company to report
comprehensive income in the Company's Statements of Income and
Comprehensive Income.
The Financial Accounting Standards Board has issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities". SFAS
No. 133 establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments imbedded in
other contracts and for hedging activities. It requires that all
derivatives be recognized as either assets or liabilities at fair
value. The accounting for changes in the fair value of derivative
instruments (gains and losses) depends on the intended use of the
derivative. Designated uses are fair value hedges, cash flow hedges,
and foreign currency hedges. The effective date of this statement is
for all fiscal quarters of fiscal years beginning after June 15,
1999. The Company has not assessed the impact that this statement
will have on the financial statements.
There are no other recent accounting pronouncements that have had, or
are expected to have, a material effect on the Company's financial
statements.
9
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
ITEM 2. 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 financial position and
operating results of the Company and its subsidiaries, Lanier
National Bank and Lanier Data Corporation during the periods included
in the accompanying consolidated financial statements.
Liquidity and Capital Resources
As of June 30, 1998, the liquidity ratio of the Bank, as determined
under guidelines established by regulatory authorities, were
satisfactory.
At June 30, 1998, the capital ratios of the Company and the Bank were
adequate based on regulatory minimum capital requirements. The
minimum capital requirements and the actual capital ratios for the
Company and the Bank are as follows:
Actual
-----------------------
Lanier Lanier
Bankshares, National Regulatory
Inc. Bank Requirement
------------ -------- -----------
Leverage capital ratios 9.55 % 9.35 % 4.00 %
Risk-based capital ratios:
Core capital 13.45 13.19 4.00
Total capital 14.69 14.44 8.00
10
<PAGE>
Financial Condition
Following is a summary of the Company's balance sheets for the periods
indicated:
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997 Increase (Decrease)
--------------- ---------------- -----------------------------------
(Dollars in Thousands) Amount Percent
----------------------------------- -------------- -----------------
<S> <C> <C> <C> <C>
Cash and due from banks $ 5,685 $ 4,062 $ 1,623 39.96 %
Interest-bearing deposits in banks 84 37 47 127.03
Securities 19,628 17,764 1,864 10.49
Federal funds sold 2,700 200 2,500 1,250.00
Loans, net 72,070 66,997 5,073 7.57
Premises and equipment 3,567 3,156 411 13.02
Other assets 3,013 2,256 757 33.55
--------------- ---------------- --------------
$ 106,747 $ 94,472 $ 12,275 12.99
=============== ================ ==============
Deposits $ 93,902 $ 83,015 $ 10,887 13.11 %
Other borrowings 1,594 813 781 96.06
Other liabilities 1,373 1,507 (134) (8.89)
Stockholders' equity 9,878 9,137 741 8.11
--------------- ---------------- --------------
$ 106,747 $ 94,472 $ 12,275 12.99
=============== ================ ==============
</TABLE>
As indicated in the above table, the Company's total assets grew at a rate of
12.99%. Deposits grew at a rate of 13.11%. Coupled with increased other
borrowings, this growth funded loan growth of 7.57%. The excess funds were
invested in Federal funds sold and securities in anticipation of increased loan
demand.
11
<PAGE>
Results of Operations For The Three Months Ended June 30, 1998 and 1997 and for
the Six Months Ended June 30, 1998 and 1997
Following is a summary of the Company's operations for the periods indicated.
<TABLE>
<CAPTION>
Three Months Ended
June 30,
--------------------------------------
1998 1997 Increase (Decrease)
----------------- ----------------- -----------------------------------
(Dollars in Thousands) Amount Percent
-------------------------------------- --------------- ----------------
<S> <C> <C> <C> <C>
Interest income $ 2,259 $ 1,828 $ 431 23.58 %
Interest expense 1,037 851 186 21.86
Net interest income 1,222 977 245 25.08
Provision for loan losses 60 30 30 100.00
Other income 173 164 9 5.49
Other expense 673 634 39 6.15
Pretax income 662 477 185 38.78
Income taxes 201 155 46 29.68
Net income 461 322 139 43.17
<CAPTION>
Six Months Ended
June 30,
--------------------------------------
1998 1997 Increase (Decrease)
----------------- ----------------- -----------------------------------
(Dollars in Thousands) Amount Percent
-------------------------------------- --------------- ----------------
<S> <C> <C> <C> <C>
Interest income $ 4,381 $ 3,555 $ 826 23.23 %
Interest expense 2,005 1,656 349 21.07
Net interest income 2,376 1,899 477 25.12
Provision for loan losses 120 60 60 100.00
Other income 351 312 39 12.50
Other expense 1,303 1,227 76 6.19
Pretax income 1,304 924 380 41.13
Income taxes 392 279 113 40.50
Net income 912 645 267 41.40
</TABLE>
As indicated in the above tables, the Company's net interest income has
increased by $245,000 and $477,000 for the three and six month periods in 1998
as compared to the same periods in 1997. The Company's net interest margin
increased to 5.21% during the first six months of 1998 as compared to 5.07% for
the previous year. These increases are due primarily to increases in average
interest-earning assets.
12
<PAGE>
The provision for loan losses increased by $30,000 and $60,000 for the three and
six month periods in 1998 as compared to the same periods in 1997. This increase
is due to net loan growth and increased net charge-offs of $31,000. The
Company's allowance for loan losses to total loans amounted to 1.27% at June 30,
1998 as compared to 1.23% at December 31, 1997. The allowance for loan losses is
maintained at a level that is deemed appropriate by management to adequately
cover all known and inherent risks in the loan portfolio. Management's
evaluation of the loan portfolio includes a continuing review of loan loss
experience, current economic conditions which may affect the borrower's ability
to repay and the underlying collateral value. The Company had no other real
estate owned at June 30, 1998 or December 31, 1997.
Information with respect to nonaccrual, past due, and restructured loans at June
30, 1998 and 1997 is as follows:
<TABLE>
<CAPTION>
June 30,
---------------------------------
1998 1997
--------------- ---------------
(Dollars in Thousands)
---------------------------------
<S> <C> <C>
Nonaccrual loans $ 110 $ 118
Loans contractually past due ninety days or more as to interest
or principal payments and still accruing 933 63
Restructured loans - -
Loans, now current about which there are serious doubts as to the
ability of the borrower to comply with loan repayment terms - -
Interest income that would have been recorded on nonaccrual
and restructured loans under original terms 5 6
Interest income that was recorded on nonaccrual and restructured loans - -
</TABLE>
It is the policy of the Bank to discontinue the accrual of interest income when,
in the opinion of management, collection of such interest becomes doubtful. This
status is accorded such interest when (1) there is a significant deterioration
in the financial condition of the borrower and full repayment of principal and
interest is not expected and (2) the principal or interest is more than ninety
days past due, unless the loan is both well-secured and in the process of
collection. The increase in loans contractually past due ninety days or more and
still accruing interest is due primarily to a real estate loan to a group of
family-related borrowers. Management believes that this loan does not meet
either of the criteria for discontinuance of interest accrual.
Loans classified for regulatory purposes as loss, doubtful, substandard, or
special mention that have not been included in the table above do not represent
or result from trends or uncertainties which management reasonably expects will
materially impact future operating results, liquidity or capital resources.
These classified loans do not represent material credits about which management
is aware of any information which causes management to have serious doubts as to
the ability of such borrowers to comply with the loan repayment terms.
13
<PAGE>
Information regarding certain loans and allowance for loan loss data through
June 30, 1998 and 1997 is as follows:
Six Months Ended
June 30,
-------------------------
1998 1997
----------- -----------
(Dollars in Thousands)
-------------------------
Average amount of loans outstanding $ 70,373 $ 52,955
=========== ===========
Balance of allowance for loan losses at beginning
of period $ 837 $ 707
---------- -----------
Loans charged off
Commercial and financial $ 1 $ -
Real estate mortgage - -
Instalment 35 3
----------- -----------
36 3
----------- -----------
Loans recovered
Commercial and financial - -
Real estate mortgage - -
Instalment 3 1
----------- -----------
3 1
----------- -----------
Net charge-offs 33 2
----------- -----------
Additions to allowance charged to operating
expense during period 120 60
----------- -----------
Balance of allowance for loan losses at end
of period $ 924 $ 765
=========== ===========
Ratio of net loans charged off during the period
to average loans outstanding .05% .01%
=========== ===========
Other income has increased for the three and six month periods in 1998 as
compared to the same periods in 1997 by $9,000 and $39,000. Increased service
charges of $8,000 and $19,000 and other miscellaneous revenues of $1,000 and
$20,000 accounted for the increases.
Other expenses increased for the three and six month periods in 1998 as compared
to the same periods in 1997 by $39,000 and $76,000. Increased salaries and
employee benefits of $44,000 and $71,000 accounted for the majority of the
increase.
The Company's provision for income taxes increased by $46,000 and $113,000 for
the three and six month periods in 1998 as compared to the same periods in 1997
due to higher pre-tax income. The Company's effective tax rate decreased to
30.1% for the first six months of 1998 as compared to 30.2% for the first six
months of 1997.
14
<PAGE>
Capability of Data Processing Software to Accommodate the Year 2000
- -------------------------------------------------------------------
The Company relies upon computers for the daily conduct of their business and
for data processing generally. There is concern among industry experts that
commencing on January 1, 2000, computers will be unable to "read" the new year
and that there may be widespread computer malfunctions.
The Company has conducted a comprehensive review of its computer systems,
programs, applications, and other electronic components used in the operations
of the Company to identify the areas that should be affected by the Year 2000
issue, and has developed a plan to identify non-compliant components. This is a
continuing process as testing will be performed throughout the remainder of 1998
and 1999. Based on the review of computer and other components, management does
not believe the cost of compliance will be material to the Company's financial
statements, although there can be no assurances in this regard. Management also
believes that the Company is in substantial compliance with regulatory timetable
requirements regarding the year 2000 issue. Because the Company's data
processing subsidiary, Lanier Data Corporation, processes only for the Bank,
there is no additional Year 2000 risk associated with the providing of data
processing services to outside customers.
The Company is not aware of any known trends, events or uncertainties, other
than the effect of events as described above, that will have or that are
reasonably likely to have a material effect on its liquidity, capital resources
or operations. The Company is also not aware of any current recommendations by
the regulatory authorities which, if they were implemented, would have such an
effect.
15
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of the stockholders of Lanier Bankshares, Inc. was
held on April 22, 1998. A total of 457,506 of the shares issued and
outstanding registered for the meeting either in person or by proxy.
The stockholders voted and approved the election of Class II
directors. The results of the election were as follows:
For Against Abstained
--- ------- ---------
Class II Directors
J. Austin Edmondson 457,506 - -
Jerry D. Jackson 457,506 - -
R. Thomas Jarrard 457,506 - -
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
None
16
<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.
BY: /s/ Joseph D. Chipman, Jr.
-------------------------------------
Joseph D. Chipman, Jr. President and
Chief Executive Officer (Principal
Executive Officer)
BY: /s/ Jeffrey D. Hunt
-------------------------------------
Jeffrey D. Hunt, Senior Vice
President, Operations (Principal
Financial and Accounting Officer)
DATE:
-----------------------------------
17
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 5,684,737
<INT-BEARING-DEPOSITS> 84,370
<FED-FUNDS-SOLD> 2,700,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,954,423
<INVESTMENTS-CARRYING> 10,673,732
<INVESTMENTS-MARKET> 10,784,000
<LOANS> 72,993,503
<ALLOWANCE> 923,692
<TOTAL-ASSETS> 106,747,137
<DEPOSITS> 93,901,714
<SHORT-TERM> 69,747
<LIABILITIES-OTHER> 1,372,979
<LONG-TERM> 1,524,845
0
0
<COMMON> 1,237,826
<OTHER-SE> 8,640,026
<TOTAL-LIABILITIES-AND-EQUITY> 9,877,852
<INTEREST-LOAN> 3,812,856
<INTEREST-INVEST> 512,220
<INTEREST-OTHER> 56,278
<INTEREST-TOTAL> 4,381,354
<INTEREST-DEPOSIT> 1,979,880
<INTEREST-EXPENSE> 25,660
<INTEREST-INCOME-NET> 2,375,814
<LOAN-LOSSES> 120,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,303,781
<INCOME-PRETAX> 1,303,365
<INCOME-PRE-EXTRAORDINARY> 911,556
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 911,556
<EPS-PRIMARY> .76
<EPS-DILUTED> .75
<YIELD-ACTUAL> 5.21
<LOANS-NON> 110,000
<LOANS-PAST> 933,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 837,000
<CHARGE-OFFS> 36,000
<RECOVERIES> 3,000
<ALLOWANCE-CLOSE> 924,000
<ALLOWANCE-DOMESTIC> 924,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
