<PAGE>
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, 1997
Commission File Number: 33-28514-A
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BRYAN BANCORP OF GEORGIA, INC.
-------------------------------------------------------------------------------
(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
- --------------------------------------------------------------------------------
(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
----- -----
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 - 496,508 shares as of November 10, 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 - September 30, 1997
Consolidated Statements of Income - Nine Months Ended September 30,
1997 and 1996
Consolidated Statements of Cash Flows -Nine Months Ended September 30,
1997 and 1996
Notes to Consolidated Financial Statements - September 30, 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
- ----------------------------
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET - (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1997
------------------
ASSETS
<S> <C>
Cash and due from banks ...................................... $ 2,116,194
Federal funds sold ........................................... 1,955,000
Investment securities available for sale ..................... 7,536,514
Investment securities held to maturity (estimated market
value of $3,525,307) ....................................... 3,419,810
Loans ........................................................ 47,148,965
Less allowance for loan losses ............................... (555,844)
------------
Loans, net ......................................... 46,593,121
Interest receivable .......................................... 462,908
Premises and equipment, net .................................. 1,414,750
Other assets ................................................. 223,921
------------
Total assets ................................................. $ 63,722,218
============
LIABILITIES
Deposits:
Noninterest-bearing ........................................ $ 7,055,252
Interest-bearing ........................................... 47,678,100
------------
Total deposits ..................................... 54,733,352
Federal Home Loan Bank advances .............................. 1,360,000
Other borrowed funds ......................................... 100,000
Interest payable ............................................. 204,535
Other liabilities ............................................ 276,667
------------
Total liabilities .................................. 56,674,554
------------
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 .......................................... 2,163,202
Net unrealized loss on investment
securities available for sale ............................ 2,069
------------
7,556,514
Less 25,250 shares of treasury stock- at cost .............. (508,850)
------------
Total shareholders' equity ......................... 7,047,664
------------
Total liabilities and shareholders' equity ................... $ 63,722,218
============
</TABLE>
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4
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
INTEREST INCOME:
<S> <C> <C> <C> <C>
Loans ...................................... $ 1,159,251 $ 1,004,647 $ 3,318,934 $ 2,867,613
Investment securities:
Taxable .................................. 118,134 78,310 317,583 238,761
Tax-exempt ............................... 41,014 39,073 118,636 114,510
Federal funds sold ......................... 32,141 22,748 77,512 87,219
Deposits in other banks .................... 561 3,522 1,270 7,811
----------- ----------- ----------- -----------
Total interest income .............. 1,351,101 1,148,300 3,833,935 3,315,914
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Deposits ................................... 565,955 465,078 1,585,225 1,375,471
Federal Home Loan Bank advances ............ 22,605 7,450 41,646 15,240
Other borrowed funds ....................... 4,898 1,038 7,446 3,724
----------- ----------- ----------- -----------
593,458 473,566 1,634,317 1,394,435
----------- ----------- ----------- -----------
NET INTEREST INCOME .......................... 757,643 674,734 2,199,618 1,921,479
----------- ----------- ----------- -----------
PROVISION FOR LOAN LOSSES .................... 45,000 30,000 135,000 60,000
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES ............................ 712,643 644,734 2,064,618 1,861,479
NONINTEREST INCOME:
Service charges on deposit accounts ........ 82,149 92,869 260,965 257,812
Loan servicing fees ........................ 121,098 63,959 293,709 201,136
Other service charges and fees ............. 36,427 32,204 107,879 84,866
Net realized loss on sales of available
for sale securities ...................... (675)
Other ...................................... 35,984 19,758 122,970 76,079
----------- ----------- ----------- -----------
275,658 208,790 784,848 619,893
----------- ----------- ----------- -----------
NONINTEREST EXPENSES:
Salaries and employee benefits ............. 316,258 243,487 884,141 680,704
Occupancy .................................. 25,211 19,609 71,050 69,073
Equipment and processing expense ........... 45,342 25,719 136,269 77,270
Other ...................................... 130,605 134,575 444,173 454,695
----------- ----------- ----------- -----------
517,416 423,390 1,535,633 1,281,742
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES ................... 470,885 430,134 1,313,833 1,199,630
PROVISION FOR INCOME TAXES ................... 156,350 153,300 437,000 402,700
----------- ----------- ----------- -----------
NET INCOME ................................... $ 314,535 $ 276,834 $ 876,833 $ 796,930
=========== =========== =========== ===========
Net income per share ......................... $ 0.62 $ 0.54 $ 1.74 $ 1.57
=========== =========== =========== ===========
Weighted average number shares outstanding ... 503,346 508,722 503,346 508,722
=========== =========== =========== ===========
</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,
----------------------------
1997 1996
----------- -----------
OPERATING ACTIVITIES:
<S> <C> <C>
Net income ............................................... $ 876,833 $ 796,930
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation ........................................ 89,615 62,590
Amortization and accretion, net ..................... 2,803 (5,268)
Provision for loan losses ........................... 135,000 60,000
Net realized loss on available for sale securities .. 675
Changes in:
Interest receivable .............................. (89,819) 3,829
Other assets ..................................... 23,967 18,786
Interest payable ................................. (23,405) (29,695)
Other liabilities ................................ 99,472 (125,844)
----------- -----------
Net cash provided by operating activities .... 1,115,141 781,328
----------- -----------
INVESTING ACTIVITIES:
Net decrease in federal funds sold ...................... 3,575,000 2,221,000
Proceeds from sale of investment securities:
Available for sale securities .......................... 199,250
Proceeds from maturities of investment securities:
Available for sale securities .......................... 1,795,025 868,180
Purchase of investment securities:
Available for sale securities .......................... (4,198,203) (500,000)
Held to maturity securities ............................ (223,500) (181,900)
Net increase in loans .................................... (4,922,682) (4,508,231)
Additions to premises and equipment ...................... (47,372) (458,476)
----------- -----------
Net cash used for investing activities ....... (3,822,482) (2,559,427)
----------- -----------
FINANCING ACTIVITIES:
Net increase in deposits ................................. 2,129,276 4,925,546
Federal Home Loan Bank advance proceeds .................. 1,000,000 800,000
Repayment of Federal Home Loan Bank advances ............. (20,000) (1,700,000)
Net increase in other borrowings ......................... 46,805 77,349
Dividends paid ........................................... (428,704) (354,591)
Acquisition of treasury stock ............................ (200,250) (210,800)
----------- -----------
Net cash provided by financing activities .... 2,527,127 3,537,504
----------- -----------
Increase (decrease) in cash and cash equivalents ........... (180,214) 1,759,405
Cash and cash equivalents - beginning ...................... 2,296,408 2,406,895
----------- -----------
Cash and cash equivalents - ending ......................... $ 2,116,194 $ 4,166,300
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes ...................................... $ 454,199 $ 525,301
=========== ===========
Interest .......................................... $ 1,657,722 $ 1,424,130
=========== ===========
</TABLE>
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6
BRYAN BANCORP OF GEORGIA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
SEPTEMBER 30, 1997
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, 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 at September 30, 1997, with approximately $1.9 million
invested in daily federal funds sold and approximately $2.1 million in
cash and due from banks. The company's cash and cash equivalents plus
federal funds sold decreased by approximately $3.8 million at
September 30, 1997 compared to December 31, 1996. This decrease was
due primarily to an increase in loan demand during the first nine
months of 1997.
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. As of September 30, 1997, the Company had borrowed
$1,360,000 on its credit line with the Federal Home Loan Bank.
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 increased from $60.2 million at December
31, 1996 to approximately $63.7 million at September 30, 1997,
representing an increase of $3.5 million or 5.8%. Loans increased
aproximately $4.9 million or 11.6% during the first nine months of
1997 with an increase in deposits of $2.1 million or 4.0%.
Shareholders' equity at September 30, 1997 was $7.0 million or 11.1%
of total assets. The Company paid a $.85 per share cash dividend
during the first nine months of 1997. The Company also repurchased
8,050 shares of its own common stock during the first nine months of
1997 at a cost of $25 per share. Management anticipates that capital
will be adequate to sustain the Company's anticipated 1997 growth.
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8
Item 2. Continued
-----------------
The Bank's capital is in excess of the applicable regulatory
requirements. At September 30, 1997, the leverage ratio was 10.72% and
its tier 1 and total risk-based capital ratios were 14.13% and 15.31%,
respectively.
Net interest income increased in the third quarter of 1997 by
approximately $88,000 or 12.3% over the same quarter in 1996. For the
nine months ended September 30, 1997, net interest income was up
approximately $278,000 or 14.5% over the same period 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 increased in the third quarter of 1997
approximately $67,000 or 32.2% over the same quarter of 1996. For the
nine months ended September 30, 1997, noninterest income was up
approximately $165,000, or 26.6% over the same nine months of 1996.
This increase is primarily attributable to an increase in loan service
fees generated from loan demand.
Noninterest expenses totaled approximately $517,000 for the quarter
ended September 30, 1997 compared to approximately $423,000 for the
same quarter in 1996. For the nine months ended September 30, 1997,
noninterest expenses totaled approximately $1,536,000, compared to
approximately $1,282,000 during the same nine months of 1996. This
increase of 19.8% in the first nine months 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 54% for
the first nine months of 1997 as compared to 52% for the first nine
months of 1996.
Net income for the quarter ended September 30, 1997 was $314,535 a
13.6% increase compared to $270,834 for the same period in 1996. For
the nine months ended September 30, 1997, net income was $876,833
which is a 10.0% increase over 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 27: Financial Data Schedule (SEC use only)
(b) Reports on Form 8-K: No report on Form 8-K was filed during the
quarter ended September 30, 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: November 10,1997 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
SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,116,194
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,955,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7,536,514
<INVESTMENTS-CARRYING> 3,419,810
<INVESTMENTS-MARKET> 3,525,307
<LOANS> 47,148,965
<ALLOWANCE> 555,844
<TOTAL-ASSETS> 63,722,218
<DEPOSITS> 54,733,352
<SHORT-TERM> 1,460,000
<LIABILITIES-OTHER> 481,202
<LONG-TERM> 0
0
0
<COMMON> 521,758
<OTHER-SE> 6,595,906
<TOTAL-LIABILITIES-AND-EQUITY> 63,722,218
<INTEREST-LOAN> 3,318,934
<INTEREST-INVEST> 436,219
<INTEREST-OTHER> 78,782
<INTEREST-TOTAL> 3,833,935
<INTEREST-DEPOSIT> 1,585,225
<INTEREST-EXPENSE> 1,634,317
<INTEREST-INCOME-NET> 2,199,618
<LOAN-LOSSES> 135,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,535,633
<INCOME-PRETAX> 1,313,833
<INCOME-PRE-EXTRAORDINARY> 1,313,833
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 876,833
<EPS-PRIMARY> 1.74
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.31
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 454,820
<CHARGE-OFFS> 62,328
<RECOVERIES> 28,352
<ALLOWANCE-CLOSE> 555,844
<ALLOWANCE-DOMESTIC> 555,844
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
