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1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE PERIOD ENDED SEPTEMBER 30, 1996
Commission File Number: 33-28514-A
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BRYAN BANCORP OF GEORGIA, INC.
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(exact name of small business issuer as specified in its charter)
GEORGIA 58-1835646
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
9971 Ford Avenue, Richmond Hill, Georgia 31324
- ---------------------------------------- ------------------------------------
(Address of principal executive offices) (Zip code)
(912) 756-4444
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name,former address and former fiscal year,if changed since last report)
Check whether the registrant (1) filed all reports to be filed by section 13 or
15(d) of the Securities Exchange Act of 1934 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
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APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each issuer's classes of common stock,
as of the latest practicable date:
Common Stock, $1.00 Par Value - 506,558 shares as of November 6, 1996
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Transitional Small Business Disclosure Format:
Yes No X
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Page 1 of 10 Pages
Exhibit Index - Not Applicable
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2
INDEX
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheet - September 30, 1996
Consolidated Statements of Income - Three Months Ended September
30, 1996 and 1995 Nine months ended September 30, 1996 and 1995
Consolidated Statements of Cash Flows - Nine Months Ended
September 30, 1996 and 1995
Notes to Consolidated Financial Statements - September 30, 1996
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
2
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3
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
- ----------------------------
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET - (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30,
1996
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<S> <C>
ASSETS
Cash and due from banks ...................................... $ 4,166,300
Federal funds sold ........................................... 250,000
Investment securities available for sale ..................... 5,280,299
Investment securities held to maturity (estimated market
value of $3,272,406) ....................................... 3,243,455
Loans ........................................................ 41,304,180
Less allowance for loan losses ............................... (422,217)
------------
Loans, net ......................................... 40,881,963
Interest receivable .......................................... 363,413
Premises and equipment, net .................................. 1,484,663
Other assets ................................................. 272,343
------------
Total assets ............................................ $ 55,942,436
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing ........................................ $ 8,086,145
Interest-bearing ........................................... 40,336,449
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Total deposits .......................................... 48,422,594
Federal Home Loan Bank advances .............................. 400,000
Other borrowed funds ......................................... 127,323
Interest payable ............................................. 191,092
Other liabilities ............................................ 229,455
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Total liabilities ....................................... 49,370,464
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Shareholders' Equity:
Common stock - par value $1 per share;
authorized 10,000,000 shares;
issued 521,758 shares .................................... 521,758
Additional paid-in capital ................................. 4,869,485
Retained earnings .......................................... 1,490,679
Net unrealized loss on investment
securities available for sale ............................ (41,350)
------------
6,840,572
Less 15,200 shares of treasury stock- at cost .............. (268,600)
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Total shareholders' equity .............................. 6,571,972
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Total liabilities and shareholders' equity .............. $ 55,942,436
============
</TABLE>
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BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- ------------------------------
INTEREST INCOME: 1996 1995 1996 1995
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Loans ....................................... $ 1,004,647 $ 916,062 $ 2,867,613 $ 2,615,557
Investment securities:
Taxable ................................... 78,310 89,031 238,761 276,491
Tax-exempt ................................ 39,073 38,246 114,510 110,485
Federal funds sold .......................... 22,748 9,943 87,219 26,379
Deposits in other banks ..................... 3,522 4,878 7,811 24,997
----------- ----------- ----------- -----------
Total interest income ............... 1,148,300 1,058,160 3,315,914 3,053,909
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Deposits .................................... 465,078 439,763 1,375,471 1,200,290
Federal Home Loan Bank advances ............. 7,450 18,573 15,240 66,089
Federal funds purchased ..................... 19 1,595 506 9,965
Other borrowed funds ........................ 1,019 9,026 3,218 22,271
----------- ----------- ----------- -----------
Total interest expense .............. 473,566 468,957 1,394,435 1,298,615
----------- ----------- ----------- -----------
NET INTEREST INCOME ........................... 674,734 589,203 1,921,479 1,755,294
PROVISION FOR LOAN LOSSES ..................... 30,000 35,000 60,000 65,000
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES .................... 644,734 554,203 1,861,479 1,690,294
----------- ----------- ----------- -----------
NONINTEREST INCOME:
Service charges on deposit accounts ......... 92,869 75,500 257,812 227,615
Loan servicing fees ......................... 63,959 62,650 201,136 191,903
Other service charges and fees .............. 32,204 17,968 84,866 50,200
Net realized loss on sales
of available for sale securities .......... (80)
Other ....................................... 19,758 14,703 76,079 42,144
----------- ----------- ----------- -----------
208,790 170,821 619,893 511,782
----------- ----------- ----------- -----------
NONINTEREST EXPENSES:
Salaries and employee benefits .............. 243,487 186,619 680,704 542,577
Occupancy ................................... 19,609 23,322 69,073 75,230
Equipment and processing expense ............ 25,719 32,395 77,270 95,115
Other ....................................... 134,575 124,708 454,695 423,104
----------- ----------- ----------- -----------
423,390 367,044 1,281,742 1,136,026
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES .................... 430,134 357,980 1,199,630 1,066,050
PROVISION FOR INCOME TAXES .................... 153,300 119,800 402,700 352,500
----------- ----------- ----------- -----------
NET INCOME .................................... $ 276,834 $ 238,180 $ 796,930 $ 713,550
=========== =========== =========== ===========
Net income per share .......................... $ 0.54 $ 0.46 $ 1.57 $ 1.38
=========== =========== =========== ===========
Weighted average number shares outstanding .... 508,722 516,905 508,722 516,905
=========== =========== =========== ===========
</TABLE>
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5
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDAIRY
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
------------------------------
1996 1995
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OPERATING ACTIVITIES:
<S> <C> <C>
Net income ................................................. $ 796,930 $ 713,550
Adjustments to reconcile net income
To cash provided by operating activities:
Depreciation and amortization ......................... 57,322 51,720
Provision for loan losses ............................. 60,000 65,000
Net realized loss on available for sale securities .... 80
Changes in:
Interest receivable ................................ 3,829 (5,753)
Other assets ....................................... 18,786 3,649
Interest payable ................................... (29,695) 51,813
Other liabilities .................................. (125,844) (112,323)
----------- -----------
Net cash provided by operating activities ...... 781,328 767,736
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INVESTING ACTIVITIES:
Net decrease in time deposits in other banks ............... 1,188,000
Net ( increase) decrease in federal funds sold ............. 2,221,000 (150,000)
Proceeds from maturities of investment securities:
Held to maturity securities ............................. 268,100
Available for sale securities ............................ 868,180 630,121
Proceeds from sales of available for sale securities ....... 300,765
Purchase of investment securities:
Held to maturity securities .............................. (181,900) (444,200)
Available for sale securities ............................ (500,000) (300,957)
Net increase in loans ...................................... (4,508,231) (3,612,003)
Additions to premises and equipment ........................ (458,476) (60,006)
----------- -----------
Net cash used for investing activities ......... (2,559,427) (2,180,180)
----------- -----------
FINANCING ACTIVITIES:
Net increase (decrease) in noninterest-bearing deposits ... 522,308 (705,198)
Net increase in interest-bearing deposits .................. 4,403,238 1,980,001
Federal Home Loan Bank advance proceeds .................... 800,000 5,875,000
Repayment of Federal Home Loan Bank advances ............... (1,700,000) (4,075,000)
Net increase (decrease) in other borrowings ................ 77,349 (13,638)
Dividends paid ............................................. (354,591) (310,294)
Sale of treasury stock ..................................... 15,000
Acquisition of treasury stock .............................. (210,800) (15,000)
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Net cash provided by financing activities ...... 3,537,504 2,750,871
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Increase in cash and cash equivalents ........................ 1,759,405 1,338,427
Cash and cash equivalents - beginning ........................ 2,406,895 2,046,258
----------- -----------
Cash and cash equivalents - ending ........................... $ 4,166,300 $ 3,384,685
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes ........................................ $ 525,301 $ 481,309
=========== ===========
Interest ............................................ $ 1,424,130 $ 1,246,802
=========== ===========
</TABLE>
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6
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
SEPTEMBER 30, 1996
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NOTE 1 - BASIS OF PRESENTATION
------------------------------
The accompanying unaudited financial statements of Bryan Bancorp of
Georgia, Inc. and subsidiary have been prepared in accordance with
generally accepted accounting principles for interim financial information
and with the instructions to form 10-QSB. Accordingly, they do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the nine month period ended September 30, 1996 are not
necessarily indicative of the results that may be expected for the year
ended December 31, 1996. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's annual
report on form 10-KSB for the year ended December 31, 1995.
6
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7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The goal of liquidity management is to ensure the availability of
adequate funds to meet the loan demand and the deposit withdrawal
needs of the Bank's customers. This is achieved through
maintaining a combination of sufficient liquid assets, core
deposit growth, and unused capacity to purchase funds in the
money markets. With ample funds for lending being supplied
primarily by core deposit growth, the Company has considerable
liquidity and funding flexibility. There are no trends, demands,
commitments, events or uncertainties that will result in or are
reasonably likely to result in the Company's liquidity increasing
or decreasing in any material way.
Management monitors the Company's asset and liability positions
in order to maintain a balance between rate sensitive assets and
rate sensitive liabilities and at the same time maintain
sufficient liquid assets to meet expected customer needs for
loans and for withdrawal of deposits. The Company continues in a
liquid position at September 30, 1996, with $4.4 million invested
in cash and due from banks and daily federal funds sold. Cash
generated from operations and deposit growth have been used to
finance increase loan demand, acquire capital assets, purchase
treasury stock and payment of dividends.
Shareholders' equity at September 30, 1996 was $6.6 million or
11.7% of total assets. Management anticipates that capital will
be adequate to sustain the Company's anticipated 1996 growth. The
Company's capital is in excess of the applicable regulatory
requirements. At September 30, 1996, the Company's leverage ratio
was 11.7% and its tier 1 and total risk-based capital ratios were
14.9% and 15.9%, respectively.
Net interest income increased in the third quarter of 1996 by
approximately $85,000 or 14.5% over the same quarter of 1995. For
the nine months ended September 30, 1996, net interest income was
approximately $166,000, or 9.5% over the same period in 1995.
This increase is primarily attributable to the growth of the loan
portfolio. Management anticipates that demand for loans will
continue strong throughout the remainder of 1996.
Noninterest income increased in the third quarter of 1996
approximately $38,000 or 22.% over the same quarter of 1995. For
the nine months ended September 30, 1996, noninterest income was
approximately $108,000, or 21.1% over the same period in 1995.
7
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8
Item 2. Continued
Noninterest expenses totaled approximately $423,00 for the
quarter ended September 30, 1996 compared to approximately
$367,000 for the same quarter in 1995. For the nine months ended
September 30, 1996, noninterest expenses totaled approximately
$1,282,000, compared to approximately $1,136,000 during the same
period in 1995. This increase of 12.8% is due primarily to an
increase in salaries and employee benefits. The Company's
efficiency ratio (non-interest expense divided by the sum of net
interest income after provision for loan losses and non-interest
income) was 52% for the nine months ended September 30, 1996 and
1995.
Net income for the quarter ended September 30, 1996 was $276,834,
a 16.2% increase compared to $238,180 for the same period in
1995.
8
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9
PART II. - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits No. 27: Financial Data Schedules (SEC use only).
(b) Reports on Form 8-K: No report on Form 8-K was filed during
the quarter ended September 30, 1996.
9
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10
SIGNATURES
Pursuant to the requirements of Section 15(d) 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.
BRYAN BANCORP OF GEORGIA, INC.
Date: November 6, 1996 By: /s/ E. James Burnsed
E. James Burnsed,
President and Chief Executive Officer
10
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BRYAN BANCORP OF GEORGIA, INC. FOR THE PERIOD ENDED
SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 4,166,300
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 250,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,280,299
<INVESTMENTS-CARRYING> 3,243,455
<INVESTMENTS-MARKET> 3,272,406
<LOANS> 41,304,180
<ALLOWANCE> 422,217
<TOTAL-ASSETS> 55,942,436
<DEPOSITS> 48,422,594
<SHORT-TERM> 527,323
<LIABILITIES-OTHER> 420,547
<LONG-TERM> 0
0
0
<COMMON> 521,758
<OTHER-SE> 6,050,214
<TOTAL-LIABILITIES-AND-EQUITY> 55,942,436
<INTEREST-LOAN> 2,867,613
<INTEREST-INVEST> 353,271
<INTEREST-OTHER> 95,030
<INTEREST-TOTAL> 3,315,914
<INTEREST-DEPOSIT> 1,375,471
<INTEREST-EXPENSE> 1,394,435
<INTEREST-INCOME-NET> 1,921,479
<LOAN-LOSSES> 60,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,281,742
<INCOME-PRETAX> 1,199,630
<INCOME-PRE-EXTRAORDINARY> 796,930
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 796,930
<EPS-PRIMARY> 1.57
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.35
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 427,662
<CHARGE-OFFS> 74,283
<RECOVERIES> 8,838
<ALLOWANCE-CLOSE> 422,217
<ALLOWANCE-DOMESTIC> 422,217
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
