SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): September 30, 1998
FLAG Financial Corporation
(Exact name of registrant as specified in its charter)
Georgia 0-24532 58-2094179
- --------------------------------------------------------------------------------
(State of Incorporation) (Commission File Number) IRS Employer Identification
Number)
101 North Greenwood St., P.O. Box 3007
LaGrange, Georgia 30240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (706) 845-5000
<PAGE>
Item 5. Other Events
- ------- ------------
On September 30, 1998, the Registrant executed a Letter of Intent to
acquire the Blackshear Branch Office from First Georgia Bank of Brunswick,
Georgia. Attached hereto is the press release regarding the announcement of the
acquisition.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
- ------- ------------------------------------------------------------------
(c) Exhibits. The following exhibits are filed as part of this report:
99.1 Press release, dated September 30, 1998, issued by the Registrant.
2
<PAGE>
INDEX OF EXHIBITS
Exhibit
Number Description
- ------ -----------
99.1 Press release, dated September 30, 1998.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: October 6, 1998
FLAG Financial Corporation
/s/ John S. Holle
-----------------
By John S. Holle,
Chairman of the Board
3
<PAGE>
FOR IMMEDIATE RELEASE
Contact: John S. Holle - FLAG Financial Corporation (706)/845-5005)
J. Daniel Speight, Jr.- FLAG Financial Corporation (912/268-2200)
Henry S. Bishop - First Georgia Bank (912/267-7283)
FLAG FINANCIAL CORPORATION ANNOUNCES
------------------------------------
THE SIGNING OF A LETTER OF INTENT TO ACQUIRE
--------------------------------------------
BRANCH OF FIRST GEORGIA BANK
----------------------------
LAGRANGE, GA (SEPTEMBER 30, 1998) -- FLAG FINANCIAL CORPORATION (NASDAQ: FLAG)
announced today that it had executed a Letter of Intent to acquire the
Blackshear, Georgia branch office from First Georgia Bank ("FGB"). Blackshear is
located in Pierce County and is approximately 10 miles from Waycross, Georgia,
which is in the Southeast portion of the state.
As part of the agreement, FLAG Financial Corporation will acquire all of the
deposits of the branch, which totaled approximately $9.0 million at June 30,
1998, as well as certain fixed assets. The branch held approximately 6% of the
county's deposits as of June 30, 1997, the most recent date for which market
share data was available. The branch's loan portfolio will be retained by FGB.
Commenting on the announcement, John S. Holle, FLAG's Chairman, stated, "The
addition of this branch will build upon FLAG's growing presence in Southeast
Georgia and complements the operations of Empire Bank Corp., one of FLAG's
community bank partners."
J. Daniel Speight, Jr., FLAG's President and CEO added, "The Blackshear branch
is more than ten years old and has an established customer and deposit base. The
core deposits that FLAG acquires through this transaction will provide a stable
source of funds to support our lending activities. Additionally, it will
strengthen our franchise in this attractive and growing market."
FLAG Financial Corporation is the multi-bank holding company whose wholly owned
subsidiaries are First Federal Savings Bank of LaGrange, in LaGrange, Georgia,
Citizens Bank, in Vienna, Georgia, and Bank of Milan, in Milan, Georgia. FLAG
currently operates 19 offices serving the communities of west central, middle
and southeast Georgia and, as of June 30, 1998, had total assets of
approximately $443 million. Additionally, FLAG previously announced the signing
of definitive agreements relating to the combinations with The Brown Bank,
Metter, Georgia, Heart of Georgia Bancshares, Inc., Mount Vernon, Georgia and
Empire Bank Corp., Homerville, Georgia. These combinations should be complete by
the fourth quarter of 1998.
On a combined pro forma basis, including the pending mergers with The Brown
Bank, Heart of Georgia Bancshares, Inc. and Empire Bank Corp., FLAG is expected
to have more than $570 million in assets once the transactions are closed.
Including shares issued as part of those transactions, as well as reflecting
FLAG's recent stock dividend, FLAG will have approximately 7,007,000 shares
outstanding upon completion of the mergers. Currently, FLAG has approximately
5.2 million shares of common stock outstanding which are traded and quoted on
The Nasdaq National Market under the symbol "FLAG."
