<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 MARCH 31, 1999
-------------------
[_] 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 68-1814713
- ---------------------------------------- ------------------------
(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 May 1, 1999: 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 - MARCH 31, 1999 3
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME - THREE MONTHS ENDED MARCH 31, 1999 AND 1998 4
CONSOLIDATED STATEMENTS OF CASH FLOWS - THREE
MONTHS ENDED MARCH 31, 1999 AND 1998 5 AND 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9
PART II. OTHER INFORMATION
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 15
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K 15
SIGNATURES 16
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
------
<S> <C>
Cash and due from banks $ 4,919,579
Interest-bearing deposits in banks 13,037
Securities available-for-sale, at fair value 13,971,732
Securities held-to-maturity (fair value $13,616,000) 13,412,250
Federal funds sold 7,000,000
Loans 71,866,376
Less allowance for loan losses 1,124,754
----------------
Loans, net 70,741,622
----------------
Premises and equipment 3,462,880
Other assets 3,223,661
----------------
$ 116,744,761
================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Deposits
Noninterest-bearing demand $ 17,081,746
Interest-bearing demand 20,226,672
Savings 11,716,023
Time 53,617,718
----------------
Total deposits 102,642,159
Obligation under capital lease 40,889
Other borrowings 1,486,275
Other liabilities 1,550,052
----------------
Total liabilities 105,719,375
----------------
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 5,230,107
Retained earnings 4,943,681
Treasury stock, 37,826 shares (419,024)
Accumulated other comprehensive income 32,796
----------------
Total common stockholders' equity 11,025,386
----------------
$ 116,744,761
================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
3
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------------- -------------------
<S> <C> <C>
INTEREST INCOME
Loans $ 1,947,487 $ 1,850,274
Taxable securities 190,441 153,603
Nontaxable securities 151,938 93,551
Federal funds sold 46,460 24,649
Deposits in banks 291 639
------------------- -------------------
TOTAL INTEREST INCOME 2,336,617 2,122,716
------------------- -------------------
INTEREST EXPENSE
Deposits 1,073,502 956,096
Other borrowings 21,063 12,271
------------------- -------------------
Total interest expense 1,094,565 968,367
------------------- -------------------
Net interest income 1,242,052 1,154,349
PROVISION FOR LOAN LOSSES 60,000 60,000
------------------- -------------------
Net interest income after provision for loan losses 1,182,052 1,094,349
------------------- -------------------
OTHER INCOME
Service charges on deposit accounts 129,758 137,752
Other operating income 49,475 40,719
------------------- -------------------
179,233 178,471
------------------- -------------------
OTHER EXPENSES
Salaries and employee benefits 416,975 368,127
Equipment and occupancy expenses 126,712 103,215
Other operating expenses 176,922 160,038
------------------- -------------------
720,609 631,380
------------------- -------------------
Income before income taxes 640,676 641,440
INCOME TAX EXPENSE 188,170 190,736
------------------- -------------------
Net income 452,506 450,704
------------------- -------------------
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains (losses) on securities available-for-sale
arising during period (56,166) 2,508
------------------- -------------------
Comprehensive income $ 396,340 $ 453,212
=================== ===================
BASIC EARNINGS PER COMMON SHARE $ 0.38 $ 0.38
=================== ===================
DILUTED EARNINGS PER COMMON SHARE $ 0.37 $ 0.37
=================== ===================
CASH DIVIDENDS PER SHARE OF COMMON STOCK $ - $ -
=================== ===================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
4
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
--------------------- ---------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 452,506 $ 450,704
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 58,111 47,989
Provision for loan losses 60,000 60,000
( Increase) decrease in interest receivable 56,334 (37,094)
Decrease in interest payable (222,574) (66,011)
Other operating activities (197,115) (178,288)
--------------------- ---------------------
Net cash provided by operating activities 207,262 277,300
--------------------- ---------------------
INVESTING ACTIVITIES
(Increase) decrease in interest-bearing deposits in banks 28,499 (9,765)
Purchases of securities available-for-sale (3,679,538) (1,707,178)
Proceeds from maturities of securities available-for-sale 1,750,000 2,835,000
Purchases of securities held-to-maturity (1,357,128) (1,334,099)
Proceeds from maturities of securities held-to-maturity 1,430,000 380,000
Net increase in Federal funds sold (4,400,000) (3,600,000)
Net (increase) decrease in loans 5,298,505 (2,712,957)
Purchase of premises and equipment (13,121) (175,448)
--------------------- ---------------------
Net cash used in investing activities (942,783) (6,324,447)
--------------------- ---------------------
FINANCING ACTIVITIES
Net increase in deposits 895,091 4,950,150
Repayment of obligations under capital lease (9,787) (9,130)
Net proceeds (repayment) of other borrowings (18,365) 1,268,230
--------------------- ---------------------
Net cash provided by financing activities 866,939 6,209,250
--------------------- ---------------------
Net increase in cash and due from banks 131,418 162,103
Cash and due from banks at beginning of period 4,788,161 4,062,492
--------------------- ---------------------
Cash and due from banks at end of period $ 4,919,579 $ 4,224,595
===================== =====================
</TABLE>
5
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------------ -------------
<S> <C> <C>
CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 1,317,139 $ 1,034,378
Income taxes $ 80,352 $ 80,561
NONCASH TRANSACTIONS
Unrealized (gains) losses on securities available-for-sale $ 85,098 $ (3,361)
</TABLE>
SEE NOTES TO 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 three month period ended March 31,
1999 are not necessarily indicative of the results to be expected for
the full year.
NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS
In June 1998, the Financial Accounting Standards Board issued SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities".
This statement is required to be adopted for fiscal years beginning
after June 15, 1999. However, the statement permits early adoption as
of the beginning of any fiscal quarter after its issuance. The
Company expects to adopt this statement effective January 1, 2000.
SFAS No. 133 requires the Company to recognize all derivatives as
either assets or liabilities in the balance sheet at fair value. For
derivatives that are not designated as hedges, the gain or loss must
be recognized in earnings in the period of change. For derivatives
that are designated as hedges, changes in the fair value of the hedged
assets, liabilities, or firm commitments must be recognized in
earnings or recognized in other comprehensive income until the hedged
item is recognized in earnings, depending on the nature of the hedge.
The ineffective portion of a derivative's change in fair value must be
recognized in earnings immediately. Management has not yet determined
what effect the adoption of SFAS No. 133 will have on the Company's
earnings or financial position.
There are no other recent accounting pronouncements that have had, or
are expected to have, a material effect on the Company's financial
statements.
7
<PAGE>
LANIER BANKSHARES, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
The Management's Discussion and Analysis which follows, contains
forward-looking statements in addition to historical information,
including, but not limited to statements regarding Management's
beliefs, current expectations, estimates and projections about the
financial services industry, the economy, and about the Company and
the Bank in general. Such forward-looking statements are subject to
certain factors that could cause actual results to differ materially
from historical results or anticipated events, trends or results.
These factors include, but are not limited to:
. increased competition with other financial institutions,
. lack of sustained growth in the economy of Hall County,
. rapid fluctuations in interest rates,
. the inability of the Bank to maintain regulatory capital
standards, and
. changes in the legislative and regulatory environment
The purpose of the following discussion is to address information
relating to the financial condition and results of operations of the
Company that may not be readily apparent from a review of the
consolidated financial statements and notes thereto, which are
included in this Form 10-QSB.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1999, the liquidity ratio of the Bank, as determined
under guidelines established by regulatory authorities, was
satisfactory.
At March 31, 1999, 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:
<TABLE>
<CAPTION>
ACTUAL
----------------------------------
LANIER LANIER
BANKSHARES, NATIONAL REGULATORY
INC. BANK REQUIREMENT
--------------- ---------------- -------------
<S> <C> <C> <C>
Leverage capital ratios 9.56% 9.38% 4.00 %
Risk-based capital ratios:
Core capital 14.04 13.78 4.00
Total capital 15.29 15.03 8.00
</TABLE>
8
<PAGE>
FINANCIAL CONDITION
Following is a summary of the Company's balance sheets for the periods
indicated:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998 INCREASE (DECREASE)
---------------- ---------------- -----------------------------------
(DOLLARS IN THOUSANDS) AMOUNT PERCENT
-------------------------------------- --------------- --------------
<S> <C> <C> <C> <C>
Cash and due from banks $ 4,919 $ 4,788 $ 131 2.74 %
Interest-bearing deposits in banks 13 42 (29) (69.05)
Securities 27,384 25,612 1,772 6.92
Federal funds sold 7,000 2,600 4,400 169.23
Loans 70,742 76,100 (5,358) (7.04)
Premises and equipment 3,463 3,508 (45) (1.28)
Other assets 3,223 3,101 122 3.93
-------------- -------------- --------------
$ 116,744 $ 115,751 $ 993 0.86
============== ============== ==============
Deposits $ 102,642 $ 101,747 $ 895 0.88 %
Other borrowings 1,527 1,556 (29) (1.86)
Other liabilities 1,550 1,819 (269) (14.79)
Stockholders' equity 11,025 10,629 396 3.73
-------------- -------------- --------------
$ 116,744 $ 115,751 $ 993 0.86
============== ============== ==============
</TABLE>
As indicated in the above table, the Company's total assets grew at a rate of
.86%. This growth is due to a slight increase in deposits of $895,000. Loans
decreased considerably during the first quarter by $5.3 million due to
unexpected loan repayments. The funds from the loan repayments and deposit
growth have been reinvested in securities and Federal funds sold.
9
<PAGE>
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
Following is a summary of the Company's operations for the periods indicated.
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------------------------
1999 1998 INCREASE (DECREASE)
----------------- ------------------- -----------------------------------
(DOLLARS IN THOUSANDS) AMOUNT PERCENT
----------------------------------------- --------------- --------------
<S> <C> <C> <C> <C>
Interest income $ 2,337 $ 2,123 $ 214 10.08 %
Interest expense 1,095 968 127 13.12
Net interest income 1,242 1,155 87 7.53
Provision for loan losses 60 60 - -
Other income 179 178 1 0.56
Other expense 720 631 89 14.10
Pretax income 641 642 (1) (0.16)
Income taxes 188 191 (3) (1.57)
Net income 453 451 2 0.44
</TABLE>
As indicated in the above table, the Company's net interest income has increased
by $87,000 during the first quarter of 1999 as compared to the same period in
1998. The Company's net interest margin decreased to 4.79% during the first
quarter of 1999 as compared to 5.05% for the previous year. The increase in net
interest income is due primarily to increases in average interest-earning
assets. The decrease in the net interest margin is due primarily to the
decrease of average loans as a component of average interest-earning assets.
The provision for loan losses was $60,000 during the first quarter of 1999 and
1998. The provision for the first quarter is due to an increase in the amount of
loans past due greater than thirty days of $208,000 at December 31, 1998 to
$969,000 at March 31, 1999. Management does not believe the increase in past
dues represents a significant negative trend. Net charge offs for the first
quarter of 1999 were $8,000 as compared to $22,000 for the comparable quarter in
1998. The Company's reserve for loan losses amounted to 1.57% at March 31, 1999
as compared to 1.39% at December 31, 1998. 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.
10
<PAGE>
Information with respect to nonaccrual, past due and restructured loans at March
31, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
MARCH 31,
----------------------------------
1999 1998
------------- ------------
(DOLLARS IN THOUSANDS)
----------------------------------
<S> <C> <C>
Nonaccrual loans $ 174 $ 121
Loans contractually past due ninety days or more as to interest
or principal payments and still accruing 30 43
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 11
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.
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.
11
<PAGE>
Information regarding certain loans and allowance for loan loss data through
March 31, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
--------------------------------------
1999 1998
--------------- --------------
(DOLLARS IN THOUSANDS)
--------------------------------------
<S> <C> <C>
Average amount of loans outstanding $ 73,427 $ 68,931
=============== ==============
Balance of allowance for loan losses at beginning of period $ 1,073 $ 837
=============== ==============
Loans charged off
Commercial and financial $ - $ -
Real estate mortgage - -
Instalment 8 24
--------------- --------------
8 24
--------------- --------------
Loans recovered
Commercial and financial - -
Real estate mortgage - -
Instalment - 2
--------------- --------------
- 2
--------------- --------------
Net charge-offs 8 22
--------------- --------------
Additions to allowance charged to operating expense during period 60 60
--------------- --------------
Balance of allowance for loan losses at end of period $ 1,125 $ 875
=============== ==============
Ratio of net loans charged off during the period to
average loans outstanding .01% .03%
=============== ==============
</TABLE>
Other income remained virtually unchanged at $179,000 for the first quarter of
1999 as compared to the comparable quarter of 1998. Decreased service charge
income of $8,000 was offset by an increase of other operating income of $8,000.
Other expenses increased during the first quarter of 1999 as compared to the
same period in 1998 by $89,000. Increased salaries and employee benefits of
$48,000 accounted for the majority of the increase.
The Company's provision for income taxes decreased by $2,000 during the first
quarter of 1999 as compared to the same period in 1998 due to virtually the same
pre-tax income. The Company's effective tax rate decreased to 29.4% for the
first quarter of 1999 as compared to 29.7% for the first quarter of 1998.
12
<PAGE>
YEAR 2000 DISCLOSURES
The Year 2000 Issue: As the end of this century draws near, there is worldwide
concern that Year 2000 technology problems may wreak havoc on global economies.
No country, government, business, or person is immune from the potential effects
of Year 2000 problems. The Year 2000 problem arose because many existing
computer systems and software programs use a two-digit year field. Because of
this, some computers will not properly recognize the turn of the century. A
computer with a two-digit year field may recognize the year 2000 as 1900. If
not corrected, many computer applications could fail or miscalculate data,
creating erroneous results.
The Company's State of Readiness: To address the Year 2000 problems, the
Company formed a "Year 2000 Project Team" made up of key employees. This team
has been charged with the responsibility of assessing the problem, overseeing
corrective action, as well as testing the Year 2000 readiness of all equipment,
software, and applications after upgrades have been made.
Critical systems, hardware, and software have received priority attention. As
of December 31, 1998, all critical systems have been upgraded or replaced and
the related software has been upgraded to meet Year 2000 standards and are
presently in the "testing phase" to ensure proper functioning in a Year 2000
environment. These critical systems include our core bank processing hardware
and Jack Henry & Associates' CIF 20-20 software as well as Fedline communication
system to the Federal Reserve Bank, and our automated new accounts and loan
document preparation software. All critical station personal computers have
been upgraded or replaced with Year 2000 compliant hardware and software.
Several other software systems have been upgraded to be Year 2000 compliant and
are currently in the testing phase.
In addition to our primary core processing system, the bank has a backup data
processing site at Sungard Systems in Roswell, Georgia. This backup site has
already received hardware and software upgrades to bring the core backup system
to Year 2000 compliance standards. Management believes the backup site is Year
2000 compliant.
Since the Bank is heavily reliant on outside vendors for many services such as
electricity, phone service, water, gas, ATM processing, bond accounting, and
bank related forms, we have developed a system of obtaining vendor information
to help us determine a vendor's state of Year 2000 readiness. We are in the
process of obtaining and evaluating vendor provided information related to Year
2000.
Contingency Plans: Due to the critical nature of our core processing system and
our automated platform for new accounts and loan document preparation, we have
developed contingency plans that will be put into operation should any of these
systems not pass Year 2000 readiness testing. These plans have been developed
to minimize the impact of interruptions in business resulting from problems
related to the Year 2000. These plans encompass several alternative means,
including manual processing, to meet a minimum of services necessary to
facilitate our customers' banking needs.
Cost: After our assessment phase to determine the extent of our Year 2000
problem, our Board of Directors approved a budget in the amount of $200,000 to
address the Year 2000 issue. In order to ensure adequate funds are provided to
resolve Year 2000 issues, including those that may not be presently known, our
Year 2000 budget is subject to continuous review and amendment. Management does
not expect the cost of remediation to vary significantly from our present
budget, although there can be no assurances in this regard.
13
<PAGE>
Through March 31, 1999, we have experienced $80,100 in Year 2000 expenses. This
expense breaks down as follows: $9,500 for testing of hardware and software,
$67,400 for system upgrade and replacement, and $3,200 on education, training,
and customer awareness.
Consequences of Year 2000 Problems: For a bank, Year 2000 problems could be
devastating if loan or deposit interest accruals are not calculated properly. A
Year 2000- caused system crash could result in a disruption of business which in
turn could cause the bank to lose a significant portion of its customer base.
Either of which could result in material adverse consequences for the Bank.
Another area of Year 2000 concern for the Bank is customer awareness and
preparedness. In particular, loan customers who are not Year 2000 compliant
could experience business interruptions which could affect their ability to
repay debts owed to the Bank resulting in adverse bank performance. The
customer awareness and education expenses have been incurred in an effort to
insure customers are aware of the Year 2000 problem and understand the potential
impact on their business. Loan customers considered to have Year 2000 exposure
and that subject the bank to moderate potential credit risk were required to
complete a questionnaire in order to assess their Year 2000 readiness. No
customers were considered to pose a potential credit risk to the Bank.
The foregoing are forward-looking statements reflecting management's current
assessment and estimates with respect to the Company's Year 2000 compliance
efforts and the impact of Year 2000 issues on the Company's business and
operations. Various factors could cause actual plans and results to differ
materially from those contemplated by such assessments, estimates and forward-
looking statements, many of which are beyond the control of the Company. Some
of these factors include, but are not limited to representations by the
Company's vendors and counterparties, technological advances, economic
considerations, and consumer perceptions. The Company's Year 2000 compliance
program is an ongoing process involving continual evaluation and may be subject
to change in response to new developments.
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.
14
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
None
15
<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: May 14, 1999
--------------------------------------------------
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 4,919,579
<INT-BEARING-DEPOSITS> 13,037
<FED-FUNDS-SOLD> 7,000,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 13,971,732
<INVESTMENTS-CARRYING> 13,412,250
<INVESTMENTS-MARKET> 13,616,000
<LOANS> 71,866,376
<ALLOWANCE> 1,124,754
<TOTAL-ASSETS> 116,744,761
<DEPOSITS> 102,642,159
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,550,052
<LONG-TERM> 1,527,164
0
0
<COMMON> 1,237,826
<OTHER-SE> 9,787,560
<TOTAL-LIABILITIES-AND-EQUITY> 116,744,761
<INTEREST-LOAN> 1,947,487
<INTEREST-INVEST> 842,379
<INTEREST-OTHER> 46,751
<INTEREST-TOTAL> 2,336,617
<INTEREST-DEPOSIT> 1,073,502
<INTEREST-EXPENSE> 1,094,565
<INTEREST-INCOME-NET> 1,242,052
<LOAN-LOSSES> 60,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 720,609
<INCOME-PRETAX> 640,676
<INCOME-PRE-EXTRAORDINARY> 396,340
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 396,340
<EPS-PRIMARY> 0.38
<EPS-DILUTED> 0.37
<YIELD-ACTUAL> 4.79
<LOANS-NON> 174,000
<LOANS-PAST> 30,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,073,000
<CHARGE-OFFS> 8,000
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,125,000
<ALLOWANCE-DOMESTIC> 1,125,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
