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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
Commission file number 0-18560
The Savannah Bancorp, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1861820
------------------------------- ---------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
25 Bull Street, Savannah, GA 31401
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(Address of principal executive offices) (Zip Code)
912-651-8200
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if
changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 _
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of April 30, 1998.
1,717,798 shares of Common Stock, $1.00 par value per share
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<PAGE>
The Savannah Bancorp, Inc.
Form 10-Q Index
March 31, 1998
Part I - FINANCIAL INFORMATION
Page
Item 1.Financial Statements
Consolidated Balance Sheets - March 31, 1998 and December 31, 1997 2
Consolidated Statements of Income
For the Three Months Ended March 31, 1998 and 1997 3
Consolidated Statements of Changes in Shareholders' Equity
For the Three Months Ended March 31, 1998 and 1997 4
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 1998 and 1997 5
Condensed Notes to Consolidated Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7-11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
1
<PAGE>
The Savannah Bancorp, Inc. and Subsidiary
Consolidated Balance Sheets
(dollars in thousands, except per share data)
(Unaudited)
March 31, December 31,
1998 1997
----------- -----------
Assets
Cash and due from banks $ 6,898 $ 11,929
Federal funds sold 15,116 13,187
Investment securities available for sale:
U. S. Treasury Securities (amortized cost of
$12,123 and $12,141 in 1998 and 1997) 12,139 12,144
Other taxable investments (amortized cost of
$20,882 and $13,782 in 1998 and 1997) 20,958 13,829
State and municipal investments (amortized
cost of $3,377 in 1998 and 1997) 3,513 3,527
----------- -----------
Total investment securities available for sale 36,610 29,500
Loans 105,665 106,021
Less allowance for loan losses (1,516) (1,480)
----------- -----------
Net loans 104,149 104,541
Premises and equipment, net 2,888 2,931
Other assets 1,715 1,571
----------- -----------
Total assets $ 167,376 $ 163,659
=========== ===========
Liabilities
Deposits:
Non-interest bearing demand $ 21,041 $ 25,896
Interest-bearing demand 23,894 29,121
Savings 4,248 3,953
Money market accounts 28,080 20,203
Time, $100,000 and over 27,248 24,650
Other time deposits 41,926 40,641
----------- -----------
Total deposits 146,437 144,464
Federal funds purchased and securities sold under
agreements to repurchase 4,341 3,250
Other liabilities 1,208 969
----------- -----------
Total liabilities 151,986 148,683
=========== ===========
Shareholders' Equity
Preferred stock, par value $1 per share:
authorized 10,000,000 shares, none issued - -
Common stock, par value $1 per share: authorized
20,000,000 shares; issued 1,782,598 and
1,188,408 shares in 1998 and 1997 1,783 1,783
Capital surplus 8,924 8,924
Retained earnings 5,046 4,649
Treasury stock, at cost, 73,050 in 1998
and 1997 (504) (504)
Net unrealized holding gains on
available for sale securities 141 124
----------- -----------
Total shareholders' equity 15,390 14,976
----------- -----------
Total liabilities and shareholders' equity $ 167,376 $ 163,659
=========== ===========
See the condensed notes to the consolidated financial statements.
2
<PAGE>
The Savannah Bancorp, Inc. and Subsidiary
Consolidated Statements of Income
(dollars in thousands, except per share data)
(Unaudited)
For the Three Months Ended
--------------------------
March 31,
1998 1997
---------- ----------
Interest Income
Loans (includes loan fees) $ 2,381 $ 1,988
Investment securities 488 446
Federal funds sold 234 117
---------- ----------
Total interest income 3,103 2,551
---------- ----------
Interest Expense
Deposits 1,446 1,154
Other short-term borrowings 46 29
---------- ----------
Total interest expense 1,492 1,183
---------- ----------
Net Interest Income 1,611 1,368
Provision for loan losses 55 50
---------- ----------
Net interest income after
provision for loan losses 1,556 1,318
---------- ----------
Other Income
Service charges on deposit accounts 101 97
Mortgage origination fees 127 59
Other income 76 35
---------- ----------
Total other income 304 191
---------- -----------
Other Expense
Salaries and employee benefits 640 509
Occupancy expense 90 78
Equipment expense 91 68
Other operating expenses 323 287
---------- ----------
Total other expense 1,144 942
---------- ----------
Income before provision for income taxes 716 567
Provision for income taxes 250 200
---------- ----------
Net income $ 466 $ 367
========== ==========
Net income per share:
Basic $ .27 $ .22
========== ==========
Diluted $ .26 $ .20
========== ==========
See the condensed notes to the consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
The Savannah Bancorp, Inc. and Subsidiary
Consolidated Statements of Changes in Shareholders' Equity
(dollars in thousands, except per share data)
(Unaudited)
Net
Unrealized
Holding
Common Capital Retained Treasury Gains (losses),
Shares Stock Surplus Earnings Stock Net of Tax Total
---------- --------- --------- --------- --------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
For the Three Months
Ended March 31, 1997
Balance, December 31, 1996 1,188,408 $ 1,188 $ 9,519 $ 3,136 ($ 554) ($ 3) $ 13,286
Three-for-two stock split 594,190 595 (595) - - - -
Cash dividends - $.02 per share - - - (35) - - (35)
Change in unrealized losses on
securities available for sale,
net of tax - - - - - (147) (147)
Reissuance of treasury stock - - - - 25 - 25
Net income - - - 367 - - 367
---------- --------- --------- --------- --------- ------------- -----------
Balance at end of period 1,782,598 $ 1,783 $ 8,924 $ 3,468 ($ 529) ($ 150) $ 13,496
========== ========= ========= ========= ========= ============= ===========
For the Three Months
Ended March 31, 1998
Balance, December 31, 1997 1,782,598 $ 1,783 $ 8,924 $ 4,649 ($ 504) $ 124 $ 14,976
Cash dividends - $.04 per share - - - (69) - - (69)
Change in unrealized gains on
securities available for sale,
net of tax - - - - - 17 17
Net income - - - 466 - - 466
---------- --------- --------- --------- --------- ------------- -----------
Balance at end of period 1,782,598 $ 1,783 $ 8,924 $ 5,046 ($ 504) $ 141 $ 15,390
========== ========= ========= ========= ========= ============= ===========
</TABLE>
4
<PAGE>
The Savannah Bancorp, Inc. and Subsidiary
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
For the Three Months Ended
March 31,
--------------------------
Operating Activities 1998 1997
--------- --------
Net income $ 466 $ 367
Adjustments to reconcile net income to cash
Provided by operating activities:
Provision for loan losses 55 50
Depreciation of premises and equipment 83 63
Amortization of investment securities discount-net 23 118
Deferred Tax Benefit (23) (13)
Decrease in accrued interest receivable 0 15
Increase in prepaid expenses and other assets (132) (39)
Increase in accrued interest payable 30 57
Increase in other liabilities 208 169
-------- --------
Net cash provided by operating activities 710 787
-------- --------
Investing Activities
Net (increase) decrease in federal funds sold (1,929) 785
Purchases of investment securities (8,105) (2,067)
Proceeds from maturities of investment securities 1,000 1,000
Net decrease (increase) in loans made to customers 337 (982)
Capital expenditures (40) (78)
-------- --------
Net cash used in investing activities (8,737) (1,342)
-------- --------
Financing Activities
Net decrease in demand, savings and money
market accounts (1,910) (2,047)
Net increase in certificates of deposit 3,883 2,639
Net increase in securities sold under agreements to
repurchase 1,124 315
Net (decrease) increase in federal funds purchased (32) 166
Reissuance of treasury stock 0 25
Dividend payments (69) (35)
-------- --------
Net cash provided by financing activities 2,996 1,063
-------- --------
Increase in Cash and Cash Equivalents (5,031) 508
Cash and cash equivalents at beginning of year 11,929 6,015
-------- --------
Cash and cash equivalents at end of period $ 6,898 $ 6,523
======== ========
See the condensed notes to the consolidated financial statements.
5
<PAGE>
The Savannah Bancorp, Inc. and Subsidiary
Condensed Notes to Consolidated Financial Statements
(Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article S-X.
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, 1998 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1998. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual report on Form
10-K for the year ended December 31, 1997.
Note 2 - Shareholders' Equity
On January 26, 1997, the Company's Board of Directors declared a three-for-two
stock split payable February 24, 1997 to shareholders of record on February 7,
1997.
Note 3 - Shares Used in Computing Net Income Per Share
Net income per diluted income share is computed using the weighted average
number of common and dilutive common equivalent shares outstanding during the
periods. The diluted weighted average shares outstanding were 1,813,000 and
1,792,000 for the first quarters of 1998 and 1997, respectively. They included
103,000 and 88,000 common equivalent shares in 1998 and 1997, respectively.
Note 4 - Change in Accounting Standard
In February of 1997, The Financial Accounting Standards Board issued Statement
of Financial Accounting Standard ("SFAS") No. 128, "Earnings Per Share" which
replaced the prior methodology for calculating and presenting earnings per
share. Under SFAS No. 128, primary earnings per share have been replaced with a
presentation of basic earnings per share, and fully diluted earnings per share
have been replaced with diluted earnings per share. Basic earnings per share
excludes dilution and is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding for the
period. Diluted earnings per share are computed similarly to fully diluted
earnings per share. The statement became effective beginning in the Company's
financial statements for the year ended December 31, 1997, including restatement
of historical earnings per share presented in such financial statements.
Earnings per share for the first quarter of 1997 have been restated to show
basic and diluted earnings per share.
6
<PAGE>
Note 5 - Reporting of Comprehensive Earnings
Total comprehensive income is defined as net income and all other changes in
equity. The Company reported total comprehensive income, net of tax, for the
quarters ended March 31, 1998 and 1997 of $607,000 and $217,000, respectively.
Adjustments to total comprehensive net income, net of tax, for the first quarter
of 1998 and 1997 included net gains of $141,000 and net losses of $150,000,
respectively. These changes reflect a market value increase and decrease in
available-for-sale securities for the quarters ended March 31, 1998 and 1997.
Item 2. - Management's Discussion and Analysis of Financial Condition
and Results of Operations
For a comprehensive presentation of The Savannah Bancorp, Inc.'s financial
condition at March 31, 1998 and December 31, 1997, and results of operations for
the quarters ended March 31, 1998 and 1997, the following analysis should be
reviewed along with other information including the Company's December 31, 1997
Annual Report on Form 10-KSB.
Liquidity and Interest Rate Sensitivity Management
The objectives of funds management include maintaining adequate liquidity and
reasonable harmony between the repricing of sources and uses of funds on
interest sensitive assets and liabilities. 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.
The Company will fund anticipated loan growth primarily through normal deposit
growth. However, the Bank is a member of the Federal Home Loan Bank of Atlanta
(FHLB) and has access to borrowings in excess of $10.0 million by pledging
qualifying residential real estate loans under a blanket float lien agreement.
The FHLB will also lend against unpledged investment securities of approximately
$15 million. In addition, the Bank has $6.5 million of unused short-term federal
funds borrowing lines available from correspondent banks.
The relatively high volume of $27.2 million of certificates of deposit over
$100,000, includes $10-12 million of negotiated rate deposits. The remaining
large certificates are considered to be core deposit funds. Most are on an
automatic renewing basis for 6 - 12 months and have proven to be no more rate
sensitive than the smaller time deposits. These deposits have been acquired and
retained primarily through relationships and service. The Bank has done no
advertising of higher rates to attract deposits and has consistently set its
deposit rates with very little premium above the regional bank competition in
our market area.
7
<PAGE>
During the fourth quarter of 1997, the bank opened its fourth office, our Island
Towne Center office. This office is located in east Chatham County,
approximately six miles east of downtown Savannah. The Bank plans to open its
fifth office in Savannah's primary medical care area of town in the third
quarter, 1998. These new offices along with the offices opened in 1990, 1992 and
1995 are expected to provide continued core deposit growth as well as commercial
and consumer loan growth.
A continuing objective of asset liability management is to maintain a high level
of variable-rate assets, including variable-rate loans and shorter-maturity
investments, to balance increases in market sensitive liabilities. Interest
sensitivity management and its effects on the net interest margin require
analyses and actions which take into consideration volumes repriced and the
timing and magnitude of their change.
The long-term maturity gap and repricing data as of March 31, 1998 is shown in
Table 1 following the Management's Discussion and Analysis section.
Management has policies and procedures in place to measure and report
anticipated net interest income fluctuations based on rising and falling rates.
The Board has specified a maximum risk level of 5 percent of annualized net
interest income on an immediate decrease in the prime rate of 200 basis points.
The Bank is presently operating within the specified risk levels.
Financial Condition
For the first three months of 1998, loans decreased $.4 million to $105.7
million, and deposits increased $2.0 million to $146.4 million. The loan to
deposit ratio was 72.2 percent at March 31, 1998 compared to 73.4 percent at
December 31, 1997. Nonperforming assets were $20,000 at March 31, 1998 compared
to $185,000 at December 31, 1997.
Management has continued to classify all investment securities as
available-for-sale since January 1, 1994. Fluctuations in the U. S. Treasury
market rates have caused both decreases and increases in the market value of the
available-for-sale investment portfolio and the related equity valuation
account. Capital ratios for regulatory purposes are not impacted by the net
unrealized holding gains (losses) on available-for-sale securities. Management
has chosen the flexibility to restructure the investment portfolio and to
recognize gains or losses on securities when appropriate.
The Company's lending and investment policies emphasize quality and well-managed
growth. These policies may translate into slower growth in net interest income
and earnings in the short term; however, management believes these policies
result in lower costs and quality earnings and are best for the shareholders and
customers in the long term.
At March 31, 1998, $2.9 million or approximately 18.8 percent of equity capital
was invested in bank premises and equipment. Equity capital was $15.4 million or
9.2 percent of total assets compared to the regulatory minimum of 4.0 percent.
Total capital is 15.0 percent of risk-based assets compared to the regulatory
minimum of 8 percent.
8
<PAGE>
The net unrealized holding gains on the available-for-sale portfolio were
$228,000 at March 31, 1998 compared to $200,000 at December 31, 1997.
Results of Operations - First Quarter, 1998 vs. First Quarter, 1997
The net income for the first quarter of 1998 was $466,000 or $.26 per diluted
share compared to $367,000 or $.20 per diluted share in the same period of 1997,
an increase of 27 percent in net income and 30 percent in per share earnings.
Net interest income for the first quarter of 1998 was $1,611,000 compared to
$1,368,000 in 1997, an increase of 17.8 percent. Average interest-earning assets
were up 21.0 percent in 1998 over 1997. The first quarter net yield on
interest-earning assets decreased to 4.21 percent from 4.43 percent in 1997. The
decrease in the net interest margin resulted primarily from the decrease in
investment yields on securities due to lower bond market rates and some higher
rates paid on temporary money market funds.
The provision for loan losses was $55,000 in the first quarter of 1998 compared
to $50,000 for the same period in 1997. Net loan charge-offs totaled $19,000 in
the first quarter of 1998, and there were no charge-offs or recoveries in the
same period for 1997.
Total other income in 1998 was $304,000 compared to $191,000 in 1997, an
increase of 59.2 percent. The expansion of the mortgage loan origination
department combined with lower mortgage interest rates accounted for an increase
of $68,000, or 115.3 percent, in origination fees. Fees on loans sold to the SBA
and an increased volume of ATM transaction fees resulted in higher other income.
Other expenses were $1,144,000 in the first quarter of 1998 compared to $942,000
in the first quarter of 1997, an increase of 21.4 percent. Salaries and employee
benefits increases include three new officer positions, approximately five new
staff positions, and promotional and incentive increases. Increases in
occupancy, equipment and other expenses primarily reflect normal volume and
inflation growth.
The provision for income taxes was $250,000 in the first quarter of 1998
compared to $200,000 in the first quarter of 1997. The effective combined
federal and state income tax provisions were 34.9 percent in 1998 and 35.3
percent in 1997. The slightly lower rate is due to higher tax-exempt income on
securities.
Year 2000
The Company has engaged Year 2000 consultants and has developed a plan to ensure
a smooth transition of the systems, products and vendors that the Company relies
on into the twenty-first century. Additionally, the Bank will work with its loan
customers to monitor potential credit exposure that might result from a lack of
their systems' readiness for the Year 2000.
9
<PAGE>
Substantially all of the Company's software systems are licensed from outside
vendors. The core customer information system (CIS), loan, deposit, general
ledger, ATM and card-based systems are all maintained and processed by a third
party, M & I Data Services, Inc., the largest bank-owned data processor of banks
in the United States. The Company has received commitments from its major
vendors to provide the required systems modifications to ensure compliance.
Management believes those commitments will be met in advance of July 1, 1999.
Some software programs and some hardware will need to be modified or replaced
for Year 2000 compliance. To the extent possible, those changes will be
incorporated into the normal replacement or upgrade of hardware and systems.
Management believes it will be successful in the achievement of its plans and
does not believe that the execution of the plan will have a material adverse
effect on future operating results.
10
<PAGE>
Table 1 - Long-Term Maturity Gap and Repricing Data
The following is the Company's long-term maturity and repricing data for the
Company as of March 31, 1998.
($ in 000's) One Two Three Four Five
Interest-bearing assets Year Years Years Years Years Beyond Total
------- ------- ------- ------- ------- ------- --------
Investment securities 11,014 10,255 7,075 397 4,016 3,853 36,610
6.21% 5.97% 6.17% 8.95% 5.63% 6.76% 6.16%
Federal funds sold 15,116 - - - - - 15,116
5.55% - - - - - 5.55%
Loans - fixed rates 24,225 10,263 11,686 3,535 5,907 2,716 58,332
8.81% 8.81% 8.76% 8.99% 8.90% 8.78% 8.82%
Loans - variable rates 22,399 7,950 7,952 3,615 4,203 1,214 47,333
9.09% 9.11% 9.16% 8.91% 8.81% 8.75% 9.06%
------- ------- ------- ------- ------- ------- --------
Total earning assets 72,754 28,468 26,713 7,547 14,126 7,783 157,391
7.83% 7.87% 8.19% 8.95% 7.94% 7.78% 7.96%
Interest-bearing deposits:
NOW and savings (a) 2,814 2,814 2,814 2,814 2,814 14,072 28,142
2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Money market accts (a) 2,808 2,808 2,808 2,808 2,808 14,040 28,080
3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.85%
Time, $100 and over 22,987 1,523 1,125 - 1,613 - 27,248
5.64% 5.99% 6.53% - 6.17% - 5.73%
Other time 31,032 5,241 2,738 732 2,183 - 41,926
5.49% 5.97% 6.23% 5.61% 6.06% - 5.63%
------- ------- ------- ------- ------- ------- --------
Total interest bearing
deposits 59,641 12,386 9,485 6,354 9,418 28,112 125,396
5.34% 4.76% 4.53% 3.57% 4.43% 3.30% 4.60%
Funds purchased 4,341 - - - - - 4,341
5.25% - - - - - 5.25%
------- ------- ------- ------- ------- ------- --------
Total interest-bearing
liabilities 63,982 12,386 9,485 6,354 9,418 28,112 129,737
5.34% 4.76% 4.53% 3.57% 4.43% 3.30% 4.63%
GAP-Excess Assets 8,772 16,082 17,228 1,193 4,708 (20,329) 27,654
------- ------- ------- ------- ------- ------- --------
GAP-Cumulative-3/31/98 8,772 24,854 42,082 43,275 47,983 27,654 27,654
------- ------- ------- ------- ------- ------- --------
(a) - estimated cash flow runoff of 10% per year has been assumed
The Company's cash flow gap is $8,771 within one year, or 6 percent of total
interest-earning assets. Fixed-rate earning assets with maturities over five
years total $6,569, or 4 percent of total interest-earnings assets. The cash
flow gaps between one and five years will adjust significantly each year through
normal loan and deposit activity. Based on the principal cash flows and interest
rates presented above and the policies and procedures in place to monitor
interest rate risk, management believes interest rate risk is being adequately
managed within reasonable earnings fluctuation tolerances.
11
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal proceedings. None
Item 2. Changes in securities. None
Item 3. Defaults upon senior securities. None
Item 4. Submission of matters to a vote of security holders.
The regular 1998 Annual Meeting of Shareholders to reelect directors was
postponed to enable shareholders to vote on the merger as well as the addition
of five Bryan directors to The Savannah Bancorp, Inc. Board as specified in the
merger agreement.
Item 5. Other information. None
Item 6. Exhibits or reports on Form 8-K.
A Form 8-K was filed as of February 11, 1998 for the announcement of the merger
agreement between The Savannah Bancorp, Inc. and Bryan Bancorp of Georgia, Inc.
The filing included the press release announcing the merger.
On February 26, 1998, a second Form 8-K was filed related to the Savannah /
Bryan merger. This filing included the contents of a letter to Savannah
shareholders, 1997 historical financial information for Savannah and Bryan and
1997 proforma combined historical financial information. The financial
information was included with the shareholder letter to provide shareholders
with a better understanding of the transaction.
On May 1, 1998, a third Form 8-K was filed containing press release disclosures
on April 24, 1998 of an expected delay in the merger proceedings due to certain
concerns related to a director, who is Chairman of Bryan and an 8.6 percent
shareholder. The director has refused to sign certain documents necessary to
assure the pooling-of-interests accounting method, which is a condition of
closing. The press release also announced that the regular 1998 Annual Meeting
of Shareholders would be held on June 16, 1998.
12
<PAGE>
Signatures
Pursuant to the requirements 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.
The Savannah Bancorp, Inc.
--------------------------
(Registrant)
Date __5/8/98___ ___/s/_Archie H. Davis______________
Archie H. Davis - President & CEO
Date __5/8/98___ ___/s/_Robert B. Briscoe_______________
Robert B. Briscoe - Chief Financial Officer
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the March
31, 1998 Form 10-Q and is qualified in its entirety by reference to such
information.
</LEGEND>
<CIK> 0000860519
<NAME> THE SAVANNAH BANCORP,INC.
<MULTIPLIER> 1000
<CURRENCY> U. S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 6898
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 15116
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 36382
<INVESTMENTS-MARKET> 36610
<LOANS> 105665
<ALLOWANCE> (1516)
<TOTAL-ASSETS> 167376
<DEPOSITS> 146437
<SHORT-TERM> 4341
<LIABILITIES-OTHER> 1208
<LONG-TERM> 0
<COMMON> 1783
0
0
<OTHER-SE> 13607
<TOTAL-LIABILITIES-AND-EQUITY> 167376
<INTEREST-LOAN> 2381
<INTEREST-INVEST> 488
<INTEREST-OTHER> 234
<INTEREST-TOTAL> 3103
<INTEREST-DEPOSIT> 1446
<INTEREST-EXPENSE> 1492
<INTEREST-INCOME-NET> 1611
<LOAN-LOSSES> 55
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1144
<INCOME-PRETAX> 716
<INCOME-PRE-EXTRAORDINARY> 716
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 466
<EPS-PRIMARY> .27
<EPS-DILUTED> .26
<YIELD-ACTUAL> 4.21
<LOANS-NON> 0
<LOANS-PAST> 20
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 20
<ALLOWANCE-OPEN> 1535
<CHARGE-OFFS> 19
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1516
<ALLOWANCE-DOMESTIC> 1516
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
