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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 MARCH 31, 1997
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
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(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 - 504,358 shares as of May 8, 1997
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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 - March 31, 1997
Consolidated Statements of Income - Three Months Ended March 31, 1997
and 1996
Consolidated Statements of Cash Flows - Three Months Ended March 31,
1997 and 1996
Notes to Consolidated Financial Statements - March 31, 1997
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
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3
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
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BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET - (UNAUDITED)
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<TABLE>
<CAPTION>
March 31, 1997
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ASSETS
<S> <C>
Cash and due from banks ................................... $ 3,137,813
Federal funds sold ........................................ 1,350,000
Investment securities available for sale .................. 5,734,515
Investment securities held to maturity (estimated market
value of $3,280,974 ) ................................... 3,218,370
Loans ..................................................... 43,774,531
Less allowance for loan losses ............................ (491,156)
-------------
Loans, net ...................................... 43,283,375
Interest receivable ....................................... 372,603
Premises and equipment, net ............................... 1,456,786
Other assets .............................................. 228,778
-------------
Total assets .............................................. $ 58,782,240
=============
LIABILITIES
Deposits:
Noninterest-bearing ..................................... $ 8,519,094
Interest-bearing ........................................ 42,289,992
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Total deposits .................................. 50,809,086
Federal Home Loan Bank advances ........................... 380,000
Other borrowed funds ...................................... 127,367
Interest payable .......................................... 190,401
Dividends payable ......................................... 428,704
Other liabilities ......................................... 258,278
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Total liabilities ............................... 52,193,836
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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 ....................................... 1,557,893
Net unrealized loss on investment
securities available for sale ......................... (48,132)
-------------
6,901,004
Less 17,400 shares of treasury stock- at cost ........... (312,600)
-------------
Total shareholders' equity ...................... 6,588,404
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Total liabilities and shareholders' equity ................ $ 58,782,240
=============
</TABLE>
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4
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------
1997 1996
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INTEREST INCOME:
<S> <C> <C>
Loans .................................. $ 1,051,457 $ 924,657
Investment securities:
Taxable .............................. 90,621 84,167
Tax-exempt ........................... 38,686 37,530
Federal funds sold ..................... 29,039 21,514
Deposits in other banks ................ 171 1,286
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Total interest income .......... 1,209,974 1,069,154
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INTEREST EXPENSE:
Deposits ............................... 501,654 446,328
Federal Home Loan Bank advances ........ 6,856 6,656
Other borrowed funds ................... 931 1,074
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Total interest expense ......... 509,441 454,058
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NET INTEREST INCOME ...................... 700,533 615,096
PROVISION FOR LOAN LOSSES ................ 45,000 10,000
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NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES ........................ 655,533 605,096
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NONINTEREST INCOME:
Service charges on deposit accounts .... 93,460 80,334
Loan servicing fees .................... 77,053 63,956
Other service charges and fees ......... 34,984 19,881
Net realized loss on sales of available
for sale securities .................. (675)
Other .................................. 50,255 31,874
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255,077 196,045
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NONINTEREST EXPENSES:
Salaries and employee benefits ......... 283,061 215,192
Occupancy .............................. 22,187 24,662
Equipment and processing expense ....... 45,824 24,235
Other .................................. 170,454 147,993
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521,526 412,082
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INCOME BEFORE INCOME TAXES ............... 389,084 389,059
PROVISION FOR INCOME TAXES ............... 117,560 119,000
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NET INCOME ............................... $ 271,524 $ 270,059
=========== ===========
Net income per share ..................... $ 0.54 $ 0.53
=========== ===========
Weighted average number shares outstanding 504,411 513,119
=========== ===========
</TABLE>
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5
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDAIRY
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)
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<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------
1997 1996
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OPERATING ACTIVITIES:
<S> <C> <C>
Net income ..................................................... $ 271,524 $ 270,059
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation .............................................. 21,024 19,605
Amortization and accretion, net ........................... 866 (640)
Provision for loan losses ................................. 45,000 10,000
Net realized loss on available for sale securities ........ 675
Changes in:
Interest receivable .................................... 486 8,331
Other assets ........................................... 52,577 (20,261)
Interest payable ....................................... (37,539) (26,770)
Other liabilities ...................................... 81,083 (54,110)
----------- -----------
Net cash provided by operating activities .......... 435,696 206,214
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INVESTING ACTIVITIES:
Net decrease in federal funds sold ............................. 4,180,000 406,000
Proceeds from sale of investment securities:
Available for sale securities ................................ 199,250
Proceeds from maturities of investment securities:
Available for sale securities ................................ 1,016,733 807,315
Purchase of investment securities:
Available for sale securities ................................ (1,698,203)
Held to maturity securities .................................. (23,500) (16,900)
Net increase in loans .......................................... (1,522,936) (1,213,981)
Additions to premises and equipment ............................ (20,817) (55,611)
----------- -----------
Net cash provided by (used for) investing activities 2,130,527 (73,177)
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FINANCING ACTIVITIES:
Net increase (decrease) deposits ............................... (1,794,990) 2,461,139
Repayment of Federal Home Loan Bank advances ................... (1,300,000)
Net increase in other borrowings ............................... 74,172 50,026
Acquisition of treasury stock .................................. (4,000) (210,800)
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Net cash provided by (used for) financing activities (1,724,818) 1,000,365
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Increase in cash and cash equivalents ............................ 841,405 1,133,402
Cash and cash equivalents - beginning ............................ 2,296,408 2,406,895
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Cash and cash equivalents - ending ............................... $ 3,137,813 $ 3,540,297
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes ........................... $ 115,000 $ 283,851
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Interest ............................... $ 546,980 $ 480,828
=========== ===========
</TABLE>
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6
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
MARCH 31, 1997
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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 three month period ended March 31, 1997 are not necessarily
indicative of the results that may be expected for the year ended December
31, 1997. 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, 1996.
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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.
The Company meets most of its daily liquidity needs through the
management of cash and federal funds sold. The Company continues in a
liquid position with approximately $1.3 million invested in daily
federal funds sold and $3.1 million in cash and due from banks at
March 31, 1997. As a result of increased loan demand and deposit
withdrawals, the company's cash and cash equivalents plus federal
funds sold decreased by approximately $3.3 million at March 31, 1997
compared to December 31, 1996.
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 has the ability on a short-term basis to borrow funds from
other financial institutions. In addition to a credit line with the
Federal Home Loan Bank which allows advances up to seventy-five
percent of the book value of one-to-four family first mortgage loans,
the Company has federal funds line of credit arrangements aggregating
$3 million.
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.
The Company's total assets decreased from $60.2 million at December
31, 1996 to $58.8 million at March 31, 1997, representing a decrease
of $1.4 million or 2.3%. Loans increased $1.4 million or 3.5% and
deposits decreased $1.8 million or 3.4% during the first quarter of
1997.
Shareholders' equity at March 31, 1997 was $6.5 million or 11.2% of
total assets. The Company declared a $.85 per share cash dividend
during the first quarter of 1997, payable April 1, 1997 to
shareholders' of record as of March 15, 1997. The Company repurchased
200 shares of its own common stock during the first quarter of 1997 at
a cost of $20 per share. Management anticipates that capital will be
adequate to sustain the Company's 1997 anticipated growth.
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8
Item 2. Continued
-----------------
The Company's capital is in excess of the applicable regulatory
requirements. At March 31, 1997, the Company's leverage ratio was
11.87% and its tier 1 and risk-based capital ratios were 14.73% and
15.77% respectively.
Net interest income for the first quarter of 1997 was $700,533, up
approximately $85,000 or 13.89% over the same quarter of 1996. 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 1997.
Noninterest income totaled $255,077 for the quarter ended March 31,
1997 compared to approximately $196,045 for the same quarter in 1996.
This increase of approximately $59,000 is due primarily to increase in
service fees generated on deposit activity.
Noninterest expenses totaled $521,526 for the quarter ended March 31,
1997 compared to $412,082 for the same quarter in 1996. This increase
of 26.6% 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 57% for the first quarter of 1997 as compared
to 51% for the first quarter of 1996.
Net income for the quarter ended March 31, 1997 was $271,524, a .5%
increase compared to $270,059 for the same period in 1996.
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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 March 31, 1997.
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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: May 8, 1997 By: /s/ E. James Burnsed
E. James Burnsed,
President and Chief Executive Officer
<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
MARCH 31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 3,137,813
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,350,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,734,515
<INVESTMENTS-CARRYING> 3,218,370
<INVESTMENTS-MARKET> 3,280,974
<LOANS> 43,744,531
<ALLOWANCE> 491,156
<TOTAL-ASSETS> 58,782,240
<DEPOSITS> 50,809,086
<SHORT-TERM> 507,367
<LIABILITIES-OTHER> 877,383
<LONG-TERM> 0
0
0
<COMMON> 521,758
<OTHER-SE> 6,066,646
<TOTAL-LIABILITIES-AND-EQUITY> 58,782,240
<INTEREST-LOAN> 1,051,457
<INTEREST-INVEST> 129,307
<INTEREST-OTHER> 29,210
<INTEREST-TOTAL> 1,209,974
<INTEREST-DEPOSIT> 501,654
<INTEREST-EXPENSE> 509,441
<INTEREST-INCOME-NET> 700,533
<LOAN-LOSSES> 45,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 521,526
<INCOME-PRETAX> 389,084
<INCOME-PRE-EXTRAORDINARY> 389,084
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 271,524
<EPS-PRIMARY> .54
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.39
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 454,820
<CHARGE-OFFS> 15,339
<RECOVERIES> 6,675
<ALLOWANCE-CLOSE> 491,156
<ALLOWANCE-DOMESTIC> 491,156
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
