SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-K
(Mark One)
[ X ] Annual report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the fiscal year ended December 31, 2001 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 0-20099
SOUTHWEST GEORGIA FINANCIAL CORPORATION
(Exact Name of Registrant as specified in its charter)
Georgia 58-1392259
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
201 First Street, S. E.
Moultrie, Georgia 31768
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (229) 985-1120
Securities registered pursuant to Section 12(b) of this Act:
Title of each class Name of each exchange on which registered
Common Stock $1 Par Value American Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
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, and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO
Check if disclosure of delinquent filers in response to Item 405 of
Regulation S-K is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. [ X ]
Aggregate market value of voting stock held by nonaffiliates of the
Registrant as of March 8, 2002: $29,967,906 based on 1,762,818 shares at
the price of $17.00 per share.
As of March 24, 2002, 3,000,000 shares of the $1.00 par value Common Stock
of Southwest Georgia Financial Corporation were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's Annual Report to Shareholders for the fiscal
year ended December 31, 2001, furnished to the Commission pursuant to Rule
14a-3(b), are incorporated by reference into Part II.
Portions of the Registrant's definitive Proxy Statement for the 2002 annual
meeting of shareholders, filed with the Commission, and Annual Report to
Shareholders for the fiscal year ended December 31, 2001, furnished to the
Commission pursuant to Rule 14a-3(b), are incorporated by reference into
Part III.
PART I
Item 1 - Business
Southwest Georgia Financial Corporation (the "Registrant") is a Georgia
bank holding company organized in 1980, which acquired 100% of the
outstanding shares of Southwest Georgia Bank (the "Bank"), formerly known
as Moultrie National Bank, in 1981. The Registrant's primary business is
providing banking services to individuals and businesses principally in
Colquitt County, Baker County, Thomas County, and the surrounding counties
of southwest Georgia through the Bank, its only subsidiary. In December
of 2001, the Bank acquired the remaining 50 percent of the common stock of
Empire Financial Services, Inc. (the "Empire"), a commercial mortgage
banking firm. The Bank acquired half of the common stock of Empire in May
1997 and owned the firm jointly until the fourth quarter of 2001. The Bank
commenced operations as a national banking association in 1928.
Currently, it is an FDIC insured, state-chartered Federal Reserve member
bank.
The Registrant's executive office is located at 201 First Street, S. E.,
Moultrie, Georgia 31768, and its telephone number is (229) 985-1120.
All references herein to the Registrant include Southwest Georgia
Financial Corporation and the Bank unless the context indicates a
different meaning.
General
The Registrant is a registered bank holding company. All of the
Registrant's activities are currently conducted by the Bank. The Bank is
community-oriented and offers such customary banking services as consumer
and commercial checking accounts, NOW accounts, savings accounts,
certificates of deposit, lines of credit, Mastercard and VISA accounts,
and money transfers. The Bank finances commercial and consumer
transactions, makes secured and unsecured loans, and provides a variety of
other banking services. The Bank has a trust department that performs
corporate, pension, and personal trust services and acts as trustee,
executor, and administrator for estates and as administrator or trustee of
various types of employee benefit plans for corporations and other
organizations. The Bank operates Southwest Georgia Insurance Services, an
insurance agency that offers property and casualty insurance, life,
health, and disability insurance. Also, the Bank owns Empire Financial
Services, Inc., a commercial mortgage banking firm that offers commercial
mortgage banking services.
Markets
The Registrant conducts banking activities in Colquitt, Baker, and Thomas
Counties and the surrounding counties of Georgia. Agriculture plays an
important part in the Colquitt, Baker, and Thomas County economy.
Colquitt and Thomas County grow a large portion of Georgia's produce
crops, including turnips, cabbage, sweet potatoes, and squash. Also,
Colquitt and
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Markets, Continued
Thomas County are home to producers of tobacco, peanuts, cotton, and pork.
Manufacturing firms employ a large number of Colquitt and Thomas County
residents. Apparel, lumber and wood products, and textile manufacturers
are located in the Colquitt and Thomas County area. Baker County's major
crops are cotton and peanuts. The remaining major employers are service
industries and retail stores. Approximately 41,000 persons reside in
Colquitt County while 3,600 and 43,000 persons reside in Baker and Thomas
Counties, respectively. The Bank's subsidiary, Empire Financial Services,
Inc., provides mortgage banking services which includes underwriting,
construction, and long-term financing of commercial properties throughout
the Southeastern United States.
Deposits
The Bank offers a full range of depository accounts and services to both
consumers and businesses. At December 31, 2001, the Registrant's deposit
base, totaling $192,900,586 consisted of $25,760,282 in noninterest-
bearing demand deposits (13.35 percent of total deposits), $50,903,767 in
interest-bearing demand deposits including money market accounts (26.39
percent of total deposits), $12,270,166 in savings deposits (6.36 percent
of total deposits), $75,754,615 in time deposits in amounts less than
$100,000 (39.27 percent of total deposits), and $28,211,756 in time
deposits of $100,000 or more (14.63 percent of total deposits).
Loans
The Bank makes both secured and unsecured loans to individuals, firms, and
corporations; and both consumer and commercial lending operations include
various types of credit for the Bank's customers. Secured loans include
first and second real estate mortgage loans. The Bank also makes direct
installment loans to consumers on both a secured and unsecured basis. At
December 31, 2001, consumer installment, real estate (including
construction and mortgage loans), and commercial (including financial and
agricultural) loans represented approximately 8.2%, 82.6% and 9.2%,
respectively, of the Bank's total loan portfolio.
Lending Policy
The current lending policy of the Bank is to offer consumer and commercial
credit services to individuals and entities that meet the Bank's credit
standards. The Bank provides each lending officer with written guidelines
for lending activities. Lending authority is delegated by the Board of
Directors of the Bank to loan officers, each of whom is limited in the
amount of secured and unsecured loans which can be made to a single
borrower or related group of borrowers.
The Loan Committee (the "Committee") of the Bank's Board of Directors is
responsible for approving and monitoring the loan policy and providing
guidance and counsel to all lending personnel. The Committee also
approves all extensions of credit over $100,000. The Committee is
composed of the Chief Executive Officer, President, and other executive
officers of the Bank, as well as certain Bank Directors.
-3-
Loan Review and Nonperforming Assets
The Bank regularly reviews its loan portfolio to determine deficiencies
and corrective action to be taken. Senior lending officers conduct
periodic review of borrowers with total direct and indirect indebtedness
of $100,000 or more and perform an ongoing review of all past due loans. A
summary report of past due loans is reviewed monthly by the Committee,
which also reviews all loans over $100,000, whether current or past due,
at least annually.
Asset/Liability Management
The Committee is charged with establishing policies to manage the assets
and liabilities of the Bank. The Committee's task is to manage asset
growth, net interest margin and liquidity, and capital in order to
maximize income and reduce interest rate risk. To meet these objectives
while maintaining prudent management of risks, the Committee directs the
Bank's overall acquisition and allocation of funds. At its monthly
meetings, the Committee reviews and discusses the monthly asset and
liability funds budget and income and expense budget in relation to the
actual composition and flow of funds; the ratio of the amount of rate
sensitive assets to the amount of rate sensitive liabilities; the ratio of
loan loss reserve to outstanding loans; and other variables, such as
expected loan demand, investment opportunities, core deposit growth within
specified categories, regulatory changes, monetary policy adjustments, and
the overall state of the local, state, and national economy.
Investment Policy
The Bank's investment portfolio policy is to maximize income consistent
with liquidity, asset quality, and regulatory constraints. The policy is
reviewed periodically by the Board of Directors. Individual transactions,
portfolio composition, and performance are reviewed and approved monthly
by the Board of Directors.
Employees
The Bank has 109 full-time employees. The Bank is not a party to any
collective bargaining agreement, and the Bank believes that its employee
relations are good. None of the Bank's executive officers, except Mr.
Clark, is employed pursuant to any employment contract. See Exhibit 10.3,
which is incorporated herein by reference.
Competition
The banking business is highly competitive. The Bank competes with six
other depository institutions in Colquitt County. There are no other
competing depository institutions in Baker County. There are no other
depository institutions in Pavo, Georgia, but there are other financial
institutions within Thomas County. The Bank also competes with other
financial service organizations located outside Colquitt, Baker, and
Thomas Counties, including brokers, finance companies, credit unions and
certain governmental agencies. To the extent that banks must maintain
noninterest earning reserves against deposits, they may be at a
competitive disadvantage when compared with other financial service
organizations that are not
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Competition, Continued
required to maintain reserves against substantially equivalent sources of
funds. Further, changes in the laws applicable to banks, savings and loan
associations, and other financial institutions and the increased
competition from investment bankers, brokers, and other financial service
organizations may have a significant impact on the competitive environment
in which the Bank operates. See "Supervision and Regulation."
At December 31, 2001, the Registrant's total consolidated deposits and
assets were $192,900,586 and $234,844,448, respectively. The Registrant's
bank subsidiary is ranked as the largest among seven depository
institutions in Colquitt County, Georgia.
Monetary Policies
The results of operations of the Bank are affected by credit policies of
monetary authorities, particularly the Board of Governors of the Federal
Reserve System (the "Federal Reserve"). The instruments of monetary
policy employed by the Federal Reserve include open market operations in
U. S. Government securities, changes in the discount rate on member bank
borrowings, and changes in reserve requirements against member bank
deposits. In view of changing conditions in the national economy and in
the money markets, as well as the effect of action by monetary and fiscal
authorities, including the Federal Reserve, no prediction can be made as
to possible future changes in interest rates, deposit levels, loan demand,
or the business and earnings of the Bank.
Payment of Dividends
The Registrant is a legal entity separate and distinct from the Bank.
Most of the revenues of the Registrant result from dividends paid to it by
the Bank. Statutory and regulatory restrictions exist that are applicable
to the payment of dividends by the Bank as well as by the Registrant to
its shareholders.
The Bank is a state chartered bank regulated by the Department of Banking
and Finance (the "DBF") and the Federal Reserve Bank of Atlanta. Under
the regulations of the DBF, dividends may not be declared out of the
retained earnings of a state bank without first obtaining the written
permission of the DBF unless such bank meets all the following
requirements:
(a) Total classified assets as of the most recent examination of the bank
do not exceed 80% of equity capital (as defined by regulation);
(b) The aggregate amount of dividends declared or anticipated to be
declared in the calendar year does not exceed 50% of the net
profits after taxes but before dividends for the previous
calendar year; and,
(c) The ratio of equity capital to adjusted assets is not less than 6%.
-5-
Payment of Dividends, Continued
The payment of dividends by the Registrant and the Bank may also be
affected or limited by other factors, such as the requirement to maintain
adequate capital above regulatory guidelines. In addition, if, in the
opinion of the applicable regulatory authority, a bank under
its jurisdiction is engaged in or is about to engage in an unsafe or
unsound practice (which, depending upon the financial condition of the
bank, could include the payment of dividends), such authority may require,
after notice and hearing, that such bank cease and desist from such
practice. At December 31, 2001, retained earnings totaled $21.8 million
of which $10.5 million has been appropriated in order for the Bank to
provide adequate lending limits for a single borrower. The remaining
$11.3 million of retained earnings are available from the Bank to pay
dividends. For 2001 the Registrant's cash dividend payout to stockholders
was 39.7% of net income.
Supervision and Regulation
The Registrant is a registered bank holding company subject to regulation
by the Federal Reserve under the Bank Holding Company Act of 1956, as
amended (the "Act"). As a bank holding company, the Registrant is
required to file with the Federal Reserve an annual report of its
operations at the end of each fiscal year and such additional information
as the Federal Reserve may require pursuant to the Act. The Federal
Reserve may also make examinations of the Registrant.
The Act requires every bank holding company to obtain prior approval of
the Federal Reserve (i) before it may acquire direct or indirect ownership
or control of more than five percent (5%) of the voting shares of any bank
that is not already controlled; (ii) before it or any of its subsidiaries,
other than a bank, may acquire all or substantially all of the assets of a
bank; and (iii) before it may merge or consolidate with any other bank
holding company. In addition, a bank holding company is generally
prohibited from engaging in non-banking activities or acquiring direct or
indirect control of voting shares of any company engaged in such
activities. This prohibition does not apply to activities found by the
Federal Reserve, by order or regulation, to be so closely related to
banking or managing or controlling banks as to be a proper incident
thereto. Some of the activities that the Federal Reserve has determined
by regulation or order to be closely related to banking are:
(a) making or servicing loans and certain types of leases;
(b) performing certain data processing services;
(c) acting as fiduciary, investment or financial advisors;
(d) providing full-service brokerage under certain conditions;
(e) underwriting bank eligible securities;
(f) underwriting debt and equity securities on a limited basis through
separately capitalized subsidiaries; and
(g) making investments in corporations or projects designed primarily to
promote community welfare.
-6-
Supervision and Regulation, Continued
In addition, bank holding companies whose banking subsidiaries are all
well-capitalized and well-managed may apply to become a financial holding
company. Financial holding companies have the authority to engage in
activities that are "financial in nature" that are not permitted for other
bank holding companies. Some of the activities that the Act provides are
financial in nature are:
(a) lending, exchanging, transferring, investing for others or safeguarding
money or securities;
(b) insuring, guaranteeing, or indemnifying against loss, harm, damage,
illness, disability, or death, or providing and issuing annuities, and
acting as principal, agent, or broker with respect thereto;
(c) providing financial, investment, or economic advisory services,
including advising an investment company;
(d) issuing or selling instruments representing interests in pools of
assets permissible for a bank to hold directly; and
(e) underwriting, dealing in or making a market in securities.
The Registrant has no immediate plans to register as a financial holding
company.
The laws of Georgia require annual registration with the DBF by all
Georgia bank holding companies. Such registration includes information
with respect to the financial condition, operations, management, and
intercompany relationships of a bank holding company and its subsidiaries
and related matters. The DBF may also require such other information as
is necessary to keep itself informed as to whether the provisions of
Georgia law and the regulations and orders issued thereunder by the DBF
have been complied with; and the DBF may make examinations of the
Registrant and of the Bank.
The Bank, as a member of the Federal Reserve System, is subject to the
supervision of, and is regularly examined by, the Federal Reserve and DBF.
Both the FDIC and the DBF must grant prior approval of any merger,
consolidation, or other corporate reorganization involving the Bank. A
bank can be held liable for any loss incurred by, or reasonably expected
to be incurred by, the FDIC in connection with the default of a commonly-
controlled institution.
The Registrant and the Bank are "affiliates" under the Federal Reserve
Act, which imposes certain restrictions on (i) loans by the Bank to
affiliates, (ii) investments in the stock of affiliates by the Bank, (iii)
the Bank's taking the stock of affiliates as collateral for loans by it to
a borrower, and (iv) the purchase of assets from the Registrant by the
Bank. Further, a bank holding company and its subsidiaries are prohibited
from engaging in certain tie-in arrangements in connection with any
extensions of credit, lease or sale of property, or furnishing of
services.
-7-
Capital Adequacy
The Federal Reserve has risk-based rules for assessing bank and bank
holding company capital adequacy. These regulations establish minimum
capital standards in relation to assets and off-balance sheet exposures,
as adjusted for credit risk. Banks and bank holding companies are
required to have (1) a minimum standard of total capital (as defined) to
risk-rated assets of eight percent (8%); (2) a minimum Tier One Capital
(as defined) to risk-rated assets of four percent (4%); and (3) a minimum
stockholders' equity to risk-based assets of four percent (4%). In
addition, the Federal Reserve has established a minimum of three percent
(3%) leverage ratio of Tier One Capital to total assets (4 percent for all
but the most highly rated banks). "Tier One Capital" generally consists
of common equity not including unrecognized gains and losses on
securities, minority interests in equity accounts of consolidated
subsidiaries, and certain perpetual preferred stock less certain
intangibles. The Federal Reserve uses the leverage ratio in tandem with
the risk-based ratio to assess capital adequacy of banks and bank holding
companies. The FDIC, the Office of Comptroller of Currency ("OCC"), and
the Federal Reserve have amended, effective January 1, 1997, the capital
adequacy standards to provide for the consideration of interest rate risk
in the overall determination of a bank's capital ratio, requiring banks
with greater interest rate risk to maintain adequate capital for the risk.
The revised standards have not had a significant effect on the
Registrant's capital requirements.
The Federal Reserve has adopted regulations implementing the prompt
corrective action provisions of the 1991 Act which place financial
institutions in the following five categories based upon capitalization
ratios: (1) A "well capitalized" institution has a total risk-based
capital ratio of at least 10 percent, a Tier One risk-based ratio of at
least 6 percent, and a leverage ratio of at least 5 percent; (2) An
"adequately capitalized" institution has a total risk-based ratio of at
least 8 percent, a Tier One risk-based ratio of at least 4 percent, and a
leverage ratio of at least 4 percent; (3) An "undercapitalized"
institution has a total risk-based capital ratio of under 8 percent, a
Tier One risk-based capital ratio of under 4 percent, or a leverage ratio
of under 4 percent; (4) A "significantly undercapitalized" institution has
a total risk-based capital ratio of under 6 percent, a Tier One risk-based
ratio of under 3 percent, or a leverage ratio of under 3 percent; and (5)
A "critically undercapitalized" institution has a leverage ratio of 2
percent or less. Any institution in any of the three undercapitalized
categories would be prohibited from declaring dividends or making capital
distributions. The regulations also establish procedures for
"downgrading" an institution to a lower capital category based on
supervisory factors other than capital. The Bank at December 31, 2001,
would be considered to be a "well capitalized" institution if solely
viewed on the basis of capital ratios.
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Executive Officers Of The Registrant
Executive officers are elected by the Board of Directors annually in May
and hold office until the following May unless they resign or are removed
from office by the Board of Directors.
The executive officers of the Registrant and their ages, positions with
the Registrant, and terms of office as of January 31, 2002, are as
follows:
Officer Of The
Name (Age) Principal Position Registrant Since
John H. Clark Chief Executive Officer and Chairman 1980
(64) of the Registrant and Bank
DeWitt Drew Chief Operating Officer and President 1999
(45) of the Registrant and Bank
John J. Cole, Jr. Senior Vice President of the 1984
(51) Registrant and Senior Vice President
and Cashier of the Bank
George R. Kirkland Senior Vice President and Treasurer 1991
(51) of the Registrant and Senior Vice
President and Comptroller of the Bank
C. Wallace Sansbury Senior Vice President of the Registrant 1996
(59) and Bank
Randall L. Webb, Jr. Senior Vice President of the Registrant 1994
(53) and Bank
Geraldine A. Ferrone Senior Vice President of the Registrant 1995
(55) and Bank
J. Larry Blanton Senior Vice President of the Registrant 2000
(55) and Bank
Susan T. Whittle Senior Vice President of the Registrant 2001
(43) and Bank
Judy M. Owens Vice President of the Registrant 1993
(57) and Bank
Robert M. Carlton, Jr. Vice President of the Registrant 1995
(60) and Bank
Peggy C. Weeks Vice President and Secretary of the 1997
(64) Registrant and Bank
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Executive Officers Of The Registrant, Continued
Officer Of The
Name (Age) Principal Position Registrant Since
Richard E. Holland Vice President of the Registrant 1998
(56) and Bank
Barbara P. Hall Vice President of the Registrant 1999
(52) and Bank
Hiller M. Gammage, Jr. Vice President of the Registrant 2000
(71) and Bank
G. Larry Kirkland Vice President of the Registrant 2000
(51) and Bank
The following is a brief description of the business experience of the
executive officers of the Registrant. Except as otherwise indicated, each
executive officer has been engaged in their present or last employment, in
the same or similar position, for more than five years.
Mr. Clark was named the Chief Executive Officer and Chairman of the Board
of both the Bank and the Registrant in April 1999. Previously, he has
served as Chief Executive Officer and Vice Chairman of the Board of the
Registrant since 1996 and as President and Director of the Bank since 1978
and President and Director of the Registrant since 1980.
Mr. Drew became Chief Operating Officer and President of both the Bank and
the Registrant in 2001. Previously he had been Executive Vice President
of the Bank and Registrant since 1999 and he had been Senior Vice
President and Loan Administrator at Citizens Bank in Russellville, Alabama
since 1993.
Mr. Cole became Senior Vice President and Cashier of the Bank and Senior
Vice President of the Registrant in 1992. Previously, he had been Senior
Vice President and Comptroller of the Bank from 1986 to 1992 and Vice
President and Treasurer of the Registrant since 1984.
Mr. Kirkland became Senior Vice President and Treasurer of the Registrant
and Senior Vice President and Comptroller of the Bank in 1993. Previously
he had been Vice President and Comptroller of the Bank and Vice President
and Treasurer of the Registrant since 1991.
Mr. Sansbury became Senior Vice President of the Bank and Registrant in
December 1996. Previously, he had been Executive Vice President and
Senior Credit Officer at Regions Bank in Ellijay, Georgia, from 1994 to
1996 and an Officer of Nationsbank of Georgia, N.A. from 1983 to 1994.
-10-
Executive Officers Of The Registrant, continued
Mr. Webb became Senior Vice President of the Bank and Registrant in 1997.
Previously, he had been Vice President of the Bank and Registrant since
1994 and Assistant Vice President of the Bank since 1984.
Mrs. Ferrone became Senior Vice President in 2000 and Vice President of
the Bank and Registrant in 1995. Previously, she had been Assistant Vice
President of the Bank since 1988.
Mr. Blanton became Senior Vice President of the Bank and Registrant in
2001. Previously, he has served as Vice President of the Bank and
Registrant since 2000 and in various other positions with the bank since
1999. Also, he had been an agent with Moultrie Insurance Agency since
1993.
Mrs. Whittle became Senior Vice President of the Bank and the Registrant
in 2001. Previously, she had been Senior Vice President and Senior Lender
at Citizens Bank in Russellville, Alabama since 1999. Also, she had been
First Vice President and District Executive at Citizens Bank since 1995.
Mrs. Owens became Vice President of the Bank and Vice President of the
Registrant in 1993. Previously, she had been Assistant Vice President and
Trust Officer of the Bank from 1991 to 1993 and Assistant Trust Officer of
the Bank since 1984.
Mr. Carlton became Vice President of the Bank and Registrant in 1995.
Previously, he had been Assistant Vice President of the Bank since 1992.
Also, he had served as Vice President and Cashier of Citizens and Southern
National Bank of Georgia from 1969 to 1991.
Mrs. Weeks became Secretary in 2000 and Vice President of the Bank and
Registrant in 1997. Previously, she had been Assistant Vice President of
the Bank since 1994 and has served in various other positions with the
Bank since 1991.
Mr. Holland became Vice President of the Bank and Registrant in 1998.
Previously, he had been Vice President City Manager of Nationsbank
Florida, N.A. from 1993 to 1998. Also, he had been Vice President
Administration of C&S/Sovran Corporation from 1987 to 1993.
Mrs. Hall became Vice President of the Bank and Registrant in 1999.
Previously, she had been Assistant Vice President of the Bank since 1995
and has served in various other positions with the Bank since 1974.
Mr. Gammage became Vice President of the Bank and Registrant in 2000.
Previously, he had been owner of Financial Planning Concepts, Inc., in
Moultrie, Georgia.
Mr. Kirkland became Vice President of the Bank and Registrant in 2000.
Previously, he had been Assistant Vice President of the Bank since 1995
and has served in various other positions with the Bank since 1991.
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Selected Statistical Information
The statements below show, for the periods indicated, the daily average
balances outstanding for the major categories of earning assets and
interest-bearing liabilities and the average interest rate earned or paid
thereon. Except for percentages, all data is in thousands of dollars.
Distribution of Assets, Liabilities, and Shareholders' Equity; Interest
Rates and Interest Differentials
Average Balance Sheets and Net Interest Income Analysis
Condensed average balance sheets for the years indicated are presented
below:
Year Ended December 31, 2001
Average
Balance Interest Rate
(Thousands Of Dollars)
ASSETS
Cash and due from banks $ 6,424 $ - - %
Earning assets:
Interest-bearing deposits 4,478 225 5.02%
Loans, net (a) (b) (c) 121,787 11,751 9.65%
Taxable investment securities
held to maturity 77,313 4,742 6.13%
Nontaxable investment securities
held to maturity (c) 3,481 226 6.49%
Nontaxable investment securities
available for sale (c) 12,702 866 6.82%
Other investment securities
available for sale 1,159 76 6.56%
Federal funds sold and securities
purchased with agreements to resell 965 48 4.97%
Total earning assets 221,885 17,934 8.08%
Premises and equipment 5,080
Other assets 6,539
Total assets $239,928
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits $ 26,647 $ - - %
Interest-bearing liabilities:
Savings deposits 63,403 1,359 2.14%
Time deposits 108,477 6,072 5.60%
Federal funds purchased and securities
sold under agreements to repurchase 324 11 3.40%
Other borrowings 8,131 484 5.95%
Total interest-bearing liabilities 180,335 7,926 4.40%
Other liabilities 2,253
Total liabilities 209,235
Common stock 3,000
Surplus 2,034
Retained earnings 30,751
Less treasury stock ( 5,092)
Total shareholders' equity 30,693
Total liabilities and shareholders' equity $239,928
Net interest income and margin $10,008 4.51%
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Distribution of Assets, Liabilities, and Shareholders' Equity; Interest
Rates and Interest Differentials, Continued
Average Balance Sheets and Net Interest Income Analysis, Continued
Condensed average balance sheets for the years indicated are presented
below:
Year Ended December 31, 2000
Average
Balance Interest Rate
(Thousands Of Dollars)
ASSETS
Cash and due from banks $ 6,111 $ - - %
Earning assets:
Interest-bearing deposits 8,649 552 6.38%
Loans, net (a) (b) (c) 116,899 11,990 10.26%
Taxable investment securities
held to maturity 70,819 4,472 6.31%
Nontaxable investment securities
held to maturity (c) 4,001 258 6.45%
Nontaxable investment securities
available for sale (c) 11,952 866 7.25%
Other investment securities
available for sale 1,908 819 42.92%
Federal funds sold and securities
purchased with agreements to resell 682 47 6.89%
Total earning assets 214,910 19,004 8.84%
Premises and equipment 4,719
Other assets 6,790
Total assets $232,530
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits $ 27,286 $ - - %
Interest-bearing liabilities:
Savings deposits 61,411 1,485 2.42%
Time deposits 100,177 5,686 5.68%
Federal funds purchased and securities
sold under agreements to repurchase 270 18 6.67%
Other borrowings 11,127 705 6.34%
Total interest-bearing liabilities 172,985 7,894 4.56%
Other liabilities 1,928
Total liabilities 202,199
Common stock 3,000
Surplus 1,997
Retained earnings 28,105
Less treasury stock ( 2,771)
Total shareholders' equity 30,331
Total liabilities and shareholders' equity $232,530
Net interest income and margin $11,110 5.17%
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Distribution of Assets, Liabilities, and Shareholders' Equity; Interest
Rates and Interest Differentials, Continued
Average Balance Sheets and Net Interest Income Analysis, Continued
Year Ended December 31, 1999
Average
Balance Interest Rate
(Thousands Of Dollars)
ASSETS
Cash and due from banks $ 6,357 $ - - %
Earning assets:
Interest-bearing deposits 11,894 595 5.00%
Loans, net (a) (b) (c) 111,198 11,734 10.55%
Taxable investment securities
held to maturity 68,148 4,231 6.21%
Nontaxable investment securities
held to maturity (c) 3,307 207 6.26%
Nontaxable investment securities
available for sale (c) 10,757 750 6.97%
Other investment securities
available for sale 1,977 970 49.06%
Federal funds sold and securities
purchased with agreements to resell 1,683 80 4.75%
Total earning assets 208,964 18,567 8.89%
Premises and equipment 4,579
Other assets 5,161
Total assets $225,061
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits $ 25,387 $ - - %
Interest-bearing liabilities:
Savings deposits 60,135 1,231 2.05%
Time deposits 99,183 4,944 4.98%
Federal funds purchased and securities
sold under agreements to repurchase 174 10 5.75%
Other borrowings 9,500 565 5.95%
Total interest-bearing liabilities 168,992 6,750 3.99%
Other liabilities 2,017
Total liabilities 196,396
Common stock 3,000
Surplus 1,901
Retained earnings 25,968
Less treasury stock ( 2,204)
Total shareholders' equity 28,665
Total liabilities and shareholders' equity $225,061
Net interest income and margin $11,817 5.66%
Interest Rates
(a) Average loans are shown net of unearned income and the allowance for
loan losses. Nonperforming loans are included.
(b) Interest income includes loan fees as follows (in thousands): 2001 -
$498, 2000 - $550, and 1999 - $556.
(c) Reflects taxable equivalent adjustments using a tax rate of 34 percent
for 2001, 2000, and 1999.
-14-
Interest Differentials
The following table sets forth, for the indicated years ended December 31,
a summary of the changes in interest paid resulting from changes in volume
and changes in rate. The change due to volume is calculated by
multiplying the change in volume by the prior year's rate. The change due
to rate is calculated by multiplying the change in rate by the prior
year's volume. The change attributable to both volume and rate is
calculated by multiplying the change in volume by the change in rate.
(a)
Due To
Increase Changes In
2001 2000 (Decrease) Volume Rate
(Thousands Of Dollars)
Interest earned on:
Interest-bearing deposits $ 225 $ 552 $( 327) $( 227) $( 100)
Loans, net (b) 11,751 11,990 ( 239) 569 ( 808)
Taxable investment
securities held to maturity 4,742 4,472 270 391 ( 121)
Nontaxable investment
securities held to
maturity (b) 226 258 ( 32) ( 34) 2
Nontaxable investment
securities available
for sale (b) 866 866 0 0 0
Other securities available
for sale 76 819 ( 743) ( 235) ( 508)
Federal funds sold and
securities purchased
under agreements to resell 48 47 1 1 0
Total interest income 17,934 19,004 ( 1,070) 465 ( 1,535)
Interest paid on:
Savings deposits 1,359 1,485 ( 126) 49 ( 175)
Time deposits 6,072 5,686 386 465 ( 79)
Federal funds purchased
and securities sold under
agreements to repurchase 11 18 ( 7) 6 ( 13)
Other borrowings 484 705 ( 221) ( 180) ( 41)
Total interest expense 7,926 7,894 32 340 ( 308)
Net interest earnings $10,008 $11,110 $( 1,102) $ 125 $( 1,227)
-15-
Interest Differentials, Continued
(a)
Due To
Increase Changes In
2000 1999 (Decrease) Volume Rate
(Thousands Of Dollars)
Interest earned on:
Interest-bearing deposits $ 552 $ 595 $( 43) $( 184) $ 141
Loans, net (b) 11,990 11,734 256 551 ( 295)
Taxable investment
securities held to maturity 4,472 4,231 241 171 70
Nontaxable investment
securities held to
maturity (b) 258 207 51 45 6
Nontaxable investment
securities available
for sale (b) 866 750 116 85 31
Other securities available
for sale 819 970 ( 151) ( 33) ( 118)
Federal funds sold and
securities purchased
under agreements to resell 47 80 ( 33) ( 132) 99
Total interest income 19,004 18,567 437 503 ( 66)
Interest paid on:
Savings deposits 1,485 1,231 254 272 27
Time deposits 5,686 4,944 742 506 92
Federal funds purchased
and securities sold under
agreements to repurchase 18 10 8 6 2
Other borrowings 705 565 140 101 39
Total interest expense 7,894 6,750 1,144 184 960
Net interest earnings $11,110 $11,817 $( 707) $ 319 $( 1,026)
-16-
Interest Differentials, Continued
(a)
Due To
Increase Changes In
1999 1998 (Decrease) Volume Rate
(Thousands Of Dollars)
Interest earned on:
Interest-bearing deposits $ 595 $ 472 $ 123 $ 149 $( 26)
Loans, net (b) 11,734 12,466 ( 732) ( 283) ( 449)
Taxable investment
securities held to maturity 4,231 4,604 ( 373) ( 308) ( 65)
Nontaxable investment
securities held to
maturity (b) 207 53 154 156 ( 2)
Nontaxable investment
securities available
for sale (b) 750 149 601 602 ( 1)
Other securities available
for sale 970 721 249 ( 47) 296
Federal funds sold and
securities purchased
under agreements to resell 80 114 ( 34) ( 22) ( 12)
Total interest income 18,567 18,579 ( 12) 247 ( 259)
Interest paid on:
Savings deposits 1,231 1,560 ( 329) ( 25) ( 304)
Time deposits 4,944 5,399 ( 455) 131 ( 586)
Federal funds purchased
and securities sold under
agreements to repurchase 10 26 ( 16) ( 19) 3
Other borrowings 565 571 ( 6) - ( 6)
Total interest expense 6,750 7,556 ( 806) 87 ( 893)
Net interest earnings $11,817 $11,023 $ 794 $ 160 $ 634
(a) Volume and rate components are in proportion to the relationship of the
absolute dollar amounts of the change in each.
(b) Reflects taxable equivalent adjustments using a tax rate of 34 percent
for 2001, 2000, and 1999 in adjusting interest on nontaxable loans and
securities to a fully taxable basis.
-17-
Investment Portfolio
The carrying values of investment securities for the indicated years are
presented below:
Year Ended December 31,
2001 2000 1999
(Thousands Of Dollars)
Securities held to maturity:
U. S. Treasury and other
U. S. Government Agencies $ 55,478 $ 62,477 $ 64,704
State and municipal 4,995 5,639 6,174
Total securities held to maturity $ 60,473 $ 68,116 $ 70,878
Securities available for sale:
Equity securities $ 1,537 $ 2,284 $ 2,277
U. S. Government Agencies 9,313 6,034 0
State and municipal 12,468 12,651 11,778
Mortgage backed 4,594 1,668 1,834
Total securities available for sale $ 27,912 $ 22,637 $ 15,889
The following table shows the maturities of debt securities at December
31, 2001, and the weighted average yields (for nontaxable obligations on a
fully taxable basis assuming a 34% tax rate) of such securities.
MATURITY
After One After Five
Within But Within But Within After
One Year Five Years Ten Years Ten Years
Amount Yield Amount Yield Amount Yield Amount Yield
(Thousands Of Dollars)
Debt Securities:
U. S. Treasury
and other U. S.
Government
Agencies $7,048 5.96% $48,697 6.08% $ 9,047 6.49% $ - -
State and
municipal 410 6.72% 3,200 6.50% 4,125 6.63% 9,728 7.06%
Mortgage
backed - - % 778 5.33% 657 6.91% 3,158 6.38%
Total $7,458 6.00% $52,675 6.09% $13,829 6.94% $12,886 6.89%
Investment Portfolio, continued
The calculation of weighted average yields is based on the cost and
effective yields of each security weighted for the scheduled maturity of
each security. At December 31, 2001 and 2000, securities carried at
approximately $27,318,000 and $39,945,000, respectively, were pledged to
secure public and trust deposits as required by law.
Loan Portfolio
Types of Loans
The amount of loans outstanding for the indicated years are shown in the
following table according to type of loan.
Year Ended December 31,
2001 2000 1999 1998 1997
(Thousands Of Dollars)
Commercial, financial
and agricultural $ 11,142 $ 16,871 $ 19,144 $ 15,490 $ 17,076
Real estate - mortgage 100,453 95,959 80,558 88,767 90,111
Other 35 91 176 150 448
Installment 9,979 11,092 10,870 11,219 12,052
Total loans 121,609 124,013 110,748 115,626 119,687
Less:
Unearned income 60 123 129 128 143
Allowance for loan losses 1,883 1,795 1,944 2,003 1,999
Net loans $119,666 $122,095 $108,675 $113,495 $117,545
Loan Maturities and Sensitivity to Changes in Interest Rates
The following table shows the distribution of the commercial, financial
and agricultural loan portfolio, excluding real estate mortgage and
consumer loans at December 31, 2001.
Commercial,
Financial and
Agricultural
(Thousands Of Dollars)
Distribution of loans which are due:
In one year or less $ 7,995
After one year but within five years 2,613
After five years 534
Total $ 11,142
-19-
Loan Maturities and Sensitivity to Changes in Interest Rates, Continued
The following table shows, for the selected loans above due after one
year, the amounts which have predetermined interest rates and the amounts
which have floating or adjustable interest rates at December 31, 2001.
Loans With
Predetermined Loans With
Rates Floating Rates Total
(Thousands Of Dollars)
Commercial, financial
and agricultural $ 577 $ 2,570 $ 3,147
Risk Elements In The Loan Portfolio
The following table presents information concerning outstanding balances
of nonperforming loans for the indicated years ended December 31.
Nonperforming loans comprise: (a) loans accounted for on a nonaccrual
basis ("nonaccrual loans"); (b) loans which are contractually past due 90
days or more as to interest or principal payments ("past-due loans"); (c)
loans for which the terms have been renegotiated to provide a reduction
or deferral of interest or principal because of a deterioration in the
financial position of the borrower ("renegotiated loans"); and (d) loans
now current but where there are serious doubts as to the ability of the
borrower to comply with present loan repayment terms ("potential problem
loans").
Nonaccrual Past-Due Renegotiated Potential
Loans Loans Loans Problem Loans Total
(Thousands Of Dollars)
December 31, 2001 $ 424 $ 178 $ 0 $ 52 $ 654
December 31, 2000 $ 742 $ 1,402 $ 0 $ 1,464 $ 3,608
December 31, 1999 $ 858 $ 488 $ 0 $ 287 $ 1,633
December 31, 1998 $ 1,806 $ 281 $ 0 $ 289 $ 2,376
December 31, 1997 $ 96 $ 385 $ 0 $ 211 $ 692
The Registrant follows a policy of continuing to accrue interest on
consumer and bank card loans that are contractually past due up to the
time of charging the loan amount against the allowance for loan losses.
-20-
Summary of Loan Loss Experience
The following table is a summary of average loans outstanding during the
reported periods, changes in the allowance for loan losses arising from
loans charged off and recoveries on loans previously charged off by loan
category, and additions to the allowance which have been charged to
operating expenses.
Year Ended December 31,
2001 2000 1999 1998 1997
(Thousands Of Dollars)
Average amount of net
loans outstanding $121,787 $116,899 $111,198 $113,820 $117,029
Amount of allowance for
loan losses at beginning
of period $ 1,795 $ 1,944 $ 2,003 $ 1,999 $ 2,009
Amount of loans charged
off during period:
Commercial, financial and
agricultural 69 360 174 201 69
Real estate - mortgage 18 27 13 37 11
Installment 261 112 123 127 234
Total loans charged off 348 499 310 365 314
Amount of recoveries
during period:
Commercial, financial, and
agricultural 18 81 9 31 26
Real estate - mortgage 2 5 4 2 0
Installment 36 44 58 56 48
Total loans recovered 56 130 71 89 74
Net loans charged off
during period 292 369 239 276 240
Additions to allowance for
loan losses charged to
operating expense
during period 380 220 180 280 230
Amount of allowance for
loan losses at end
of period $ 1,883 $ 1,795 $ 1,944 $ 2,003 $ 1,999
Ratio of net charge-offs
during period to average
loans outstanding for
the period .24% .32% .21% .24% .21%
The allowance is based upon management's analysis of the portfolio under
current and expected economic conditions. This analysis includes a study
of loss experience, a review of delinquencies, and an estimate of the
possibility of loss in view of the risk characteristics of the portfolio.
Based on the above factors, management considers the current allowance to
be adequate.
-21-
Allocation of Allowance For Loan Losses
Management has allocated the allowance for loan losses within the
categories of loans set forth in the table below according to amounts
deemed reasonably necessary to provide for possible losses. The amount of
the allowance applicable to each category and the percentage of loans in
each category to total loans are presented below.
December 31, 2001 December 31, 2000 December 31, 1999
Percent Percent Percent
Of Of Of
Loans In Loans In Loans In
Category Allocation Category Allocation Category Allocation Category
(Thousands Of Dollars)
Domestic:
Commercial,
financial
and agricultural $ 173 9.2% $ 244 13.6% $ 336 17.3%
Real estate -
mortgage 1,555 82.6% 1,389 77.4% 1,413 72.7%
Installment 155 8.2% 162 9.0% 195 10.0%
Total $ 1,883 100.0% $ 1,795 100.0% $ 1,944 100.0%
December 31, 1998 December 31, 1997
Percent Percent
Of Of
Loans In Loans In
Category Allocation Category Allocation Category
(Thousands Of Dollars)
Domestic:
Commercial,
financial
and agricultural $ 268 13.4% $ 271 13.6%
Real estate -
mortgage 1,538 76.8% 1,523 76.2%
Installment 197 9.8% 205 10.2%
Total $ 2,003 100.0% $ 1,999 100.0%
The calculation is based upon total loans including unearned interest.
Management believes that the portfolio is well diversified and, to a large
extent, secured without undue concentrations in any specific risk area.
Control of loan quality is regularly monitored by management and is
reviewed by the Bank's Board of Directors which meets monthly.
Independent external review of the loan portfolio is provided by
examinations conducted by regulatory authorities. The amount of additions
to the allowance for loan losses charged to operating expense for the
periods indicated were based upon many factors, including actual charge
offs and evaluations of current and prospective economic conditions in the
market area. Management believes the allowance for loan losses is adequate
to cover any potential loan losses.
-22-
Deposits
The average amounts of deposits for the last three years are presented
below.
Year Ended December 31,
2001 2000 1999
(Thousands Of Dollars)
Domestic Bank Offices
Noninterest-bearing
demand deposits $ 26,647 $ 27,286 $ 25,387
NOW accounts 34,998 36,009 37,091
Money market deposit
accounts 16,262 12,272 8,858
Savings 12,143 13,130 14,186
Time deposits 108,477 100,177 99,183
Total interest-bearing 171,880 161,588 159,318
Total average deposits $ 198,527 $ 188,874 $ 184,705
The maturity of certificates of $100,000 or more as of December 31, 2001,
are presented below.
(Thousands Of Dollars)
3 months or less $ 10,463
Over 3 months through 6 months 7,067
Over 6 months through 12 months 8,770
Over 12 months 1,912
Total outstanding $ 28,212
-23-
Return On Equity And Assets
Certain financial ratios are presented below.
Year Ended December 31,
2001 2000 1999
Return on average assets 1.34% 1.44% 1.69%
Return on average equity 10.49% 11.08% 13.26%
Dividend payout ratio
(dividends declared
divided by net income) 39.30% 39.91% 33.60%
Average equity to average
assets ratio 12.79% 13.04% 12.74%
Item 2 - Property
The executive offices of the Registrant and the main banking office of the
Bank are located in a 19,000 square foot facility at 201 First Street, S.
E., Moultrie, Georgia. A 5,000 square foot building was renovated for the
Bank's Operations Center located at 10 Second Avenue, Moultrie, Georgia.
The Trust and Investment Division is located in an 11,000 square foot
office building located at 25 Second Avenue, Moultrie, Georgia. A vacant
building located across the street from the main office at 205 Second
Street, S. E., Moultrie, Georgia, was renovated for the Bank's
Administrative Services Division offices, training and meeting rooms,
record storage, and the drive-thru teller facility. The Registrant
occupies a 4,400 square foot Baker County branch banking office located at
the intersection of Highways 91 and 200, Newton, Georgia. The Registrant
acquired a 3,900 square foot Bank of Pavo branch banking office located at
1102 West Harris Street, Pavo, Georgia. The Registrant acquired the
ownership of McLaughlin, Edwards, and Robison, Inc. d/b/a Moultrie
Insurance Agency which is located in Moultrie, Georgia. The insurance
agency was merged into Southwest Georgia Insurance Services which is a
division of Southwest Georgia Bank. The Registrant purchased the 5,600
square-foot insurance agency building located at 501 South Main Street,
Moultrie, Georgia. In the fourth quarter of 2001, the Bank purchased the
remaining stock in Empire Financial Services, Inc., a mortgage banking
firm. The Bank had previously held a 50 percent interest in Empire.
Empire operates from its headquarters located at 121 Executive Parkway,
Milledgeville, Georgia. All of these facilities are adequate for present
operations.
All the buildings and land, which include parking and ten drive-in teller
stations, are owned by the Bank. There are two automated teller machines
on the Bank's main office premises, one in the Baker County branch office
and the Bank of Pavo branch office, and one additional automated teller
machine located in Doerun, Georgia. These automated teller machines are
linked to the STAR network of automated teller machines.
-24-
Item 3 - Legal Proceedings
There are no material pending legal proceedings to which the Registrant or
the Bank is a party or to which any of their property is subject.
Item 4 - Submission of Matters to a Vote of Security Holders
There were no matters submitted during the fourth quarter of 2001 for a
vote of the security holders through the solicitation of proxies or
otherwise.
PART II
Item 5 - Market for Registrant's Common Equity and Related Stockholder
Matters
Market for common equity and related stockholder matters appear under the
caption "Management's Discussion and Analysis of Financial Condition and
Results of Operations" on pages 11 through 18 of the Registrant's 2001
Annual Report to Shareholders and is incorporated herein by reference.
Item 6 - Selected Financial Data
Five years of selected financial data appears on page 9 and 10 of the
Registrant's 2001 Annual Report to Shareholders and is incorporated herein
by reference.
Item 7 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Management's discussion and analysis of financial condition and results of
operation appears under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations" on pages 11 through 18
of the Registrant's 2001 Annual Report to Shareholders and is incorporated
herein by reference. For further information about the Registrant, see
Selected Statistical Information on pages 13 - 25 of this report on Form
10-K.
Item 7A - Quantitative and Qualitative Disclosures About Market Risk
Management's quantitative and qualitative information about market risk
appears under the caption "Quantitative and Qualitative Disclosures About
Market Risk" on pages 17 through 18 of the Registrant's 2001 Annual Report
to Shareholders and is incorporated herein by reference.
Item 8 - Financial Statements and Supplementary Data
The report of independent auditors, the consolidated financial statements,
and notes to the consolidated financial statements on pages 19 through 40
of the Registrant's 2001 Annual Report to Shareholders are incorporated
herein by reference.
Item 9 - Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure
During the Registrant's two most recent fiscal years, the Registrant did
not change accountants and had no disagreement with its accountants on any
matter of accounting principles or practices or financial statement
disclosure.
PART III
Item 10 - Directors and Executive Officers of the Registrant
The information contained under the heading "Information About Nominees
For Director" in the definitive Proxy Statement used in connection with
the solicitation of proxies for the Registrant's annual meeting of
shareholders to be held on May 28, 2002, filed with the Commission, is
incorporated herein by reference. Information on Form 10-K relating to
the executive officers of the Registrant is included in Item 1 of this
report.
Item 11 - Executive Compensation
The information contained under the heading "Executive Compensation" in
the definitive Proxy Statement used in connection with the solicitation of
proxies for the Registrant's annual meeting of shareholders to be held on
May 28, 2002, filed with the Commission, is incorporated herein by
reference.
Item 12 - Security Ownership of Certain Beneficial Owners and Management
The information contained under the heading "Voting Securities and
Principal Holders" in the definitive Proxy Statement used in connection
with the solicitation of proxies for the Registrant's annual meeting of
shareholders to be held on May 28, 2002, filed with the Commission, is
incorporated herein by reference. For purposes of determining the
aggregate market value of the Registrant's voting stock held by
nonaffiliates, shares held by all directors and executive officers of the
Registrant have been excluded. The exclusion of such shares is not
intended to, and shall not, constitute a determination as to which persons
or entities may be "affiliates" of the Registrant as defined by the
Securities and Exchange Commission.
Item 13 - Certain Relationships and Related Transactions
The information contained under the heading "Certain Relationships and
Related Transactions" in the definitive Proxy Statement used in connection
with the solicitation of proxies for the Registrant's annual meeting of
shareholders to be held on May 28, 2002, filed with the Commission, is
incorporated herein by reference.
Item 14 - Exhibits, Financial Statement Schedules, and Reports on Form 8-K
a.Exhibits:
The exhibits filed as part of this registration statement are as follows:
Exhibit
Number Description Of Exhibit
3.1 Articles of Incorporation of Southwest Georgia Financial Corporation,
as amended and restated (included as Exhibit 3.1 to the
Registrant's Form 10-KSB dated December 31, 1996,
previously filed with the commission and incorporated
herein by reference).
3.2 By-Laws of the Registrant as amended (included as Exhibit 3.2 to the
Registrant's Form 10-KSB dated December 31, 1995,
previously filed with the Commission and incorporated
herein by reference).
10.1 Pension Retirement Plan of the Registrant, as amended and restated.
10.2 Form of Directors' Deferred Compensation Plan of the Registrant
(included as Exhibit 10.3 to the Registrant's Form S-18
dated January 23, 1990, previously filed with the
Commission and incorporated herein by reference).*
10.3 Employment Agreement of John H. Clark, as amended (included as Exhibit
10.3 to the Registrant's Form 10-K dated December 31,
1997, previously filed with the Commission and
incorporated herein by reference).*
10.4 Directors' and Executive Officers' Stock Purchase Plan of the
Registrant dated March 18, 1992 (included as Exhibit 10.7
to the Registrant's Form 10-KSB dated December 31, 1992,
previously filed with the Commission and incorporated
herein by reference).*
10.5 Advances, specific collateral pledged, and security agreement between
the Federal Home Loan Bank of Atlanta and the Bank dated
January 27, 1992, and confirmation of credit services
transaction for new money advances in the amount of
$4,000,000 dated February 10, 1992, $2,500,000 dated
September 4, 1992, and $1,500,000 dated September 8, 1992
(included as Exhibit 10.10 to the Registrant's Form 10-
KSB dated December 31, 1992, previously filed with the
Commission and incorporated herein by reference).
10.6a Supplemental Retirement Plan of the Registrant dated December 21,
1994 (included as Exhibit 10.11 to the Registrant's Form
10-KSB dated December 31, 1994, previously filed with the
Commission and incorporated herein by reference).*
-27-
Item 14 - Exhibits, Financial Statement Schedules, and Reports on Form 8-
K, continued
Exhibit
Number Description Of Exhibit
10.6b Trust under the Registrant's Supplemental Retirement Plan, as amended
(included as Exhibit 10.6b to the Registrant's Form 10-K
dated December 31, 1997, previously filed with the
Commission and incorporated herein by reference).*
10.7 Employee Stock Ownership Plan and Trust of the Registrant as amended.
10.8 Dividend Reinvestment and Share Purchases Plan of the
Registrant as amended and restated by Amendment No. 1
(included as Exhibit 99 to the Registrant's Form S-3DPOS
dated September 30, 1998, previously filed with the
Commission and incorporated herein by reference).
10.9 Key Individual Stock Option Plan of the Registrant dated March 19,
1997 (included as Exhibit 10.9 to the Registrant's Form
10-K dated December 31, 1997, previously filed with the
Commission and incorporated herein by reference).*
13 Southwest Georgia Financial Corporation Annual Report to Shareholders
for the fiscal year ended December 31, 2001. With the
exception of information expressly incorporated herein,
the 2001 Annual Report to Shareholders is not deemed to
be filed as part of this Report on Form 10-K.
22 Subsidiaries of the Registrant (included as Exhibit 22 to the
Registrant's Form 10-KSB dated December 31, 1995,
previously filed with the Commission and incorporated
herein by reference).
23.1 Consent of Draffin & Tucker, LLP.
* Management contract or compensatory plan or arrangement required to be
filed as an exhibit to this form.
b. No reports on Form 8-K were filed by the Registrant during the fourth
quarter of 2001.
-29-
Exhibit Index
Exhibit
Number Description Of Exhibit Page Number
13 Southwest Georgia Financial Corporation Annual 34
Report to Shareholders for the fiscal year ended
December 31, 2001. With the exception of
information expressly incorporated herein, the
2001 Annual Report to Shareholders is not deemed
to be filed as part of this Report on Form 10-K.
23.1 Consent of Draffin & Tucker, LLP. 65
-30-
SIGNATURES
Pursuant to the requirements of Section 13 or 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.
Southwest Georgia Financial Corporation
(Registrant)
Date:March 27, 2002 By:/s/ John H. Clark
JOHN H. CLARK
CHAIRMAN AND CHIEF
EXECUTIVE OFFICER
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
/s/ John H. Clark Date: March 27, 2002
JOHN H. CLARK
Chairman and Chief Executive Officer
[Principal Executive Officer]
/s/ DeWitt Drew Date: March 27, 2002
DEWITT DREW
President and Chief Operating Officer
[Principal Executive Officer]
/s/ George R. Kirkland Date: March 27, 2002
GEORGE R. KIRKLAND
Senior Vice-President and Treasurer
[Principal Financial and Accounting Officer]
-31-
SIGNATURES, Continued
/s/ Cecil H. Barber Date: March 27, 2002
CECIL H. BARBER
Director
/s/ Robert M. Duggan Date: March 27, 2002
ROBERT M. DUGGAN
Director
/s/ Michael J. McLean Date: March 27, 2002
MICHAEL J. MCLEAN
Director
/s/ Earl D. Moore Date: March 27, 2002
EARL D. MOORE
Director
/s/ Richard L. Moss Date: March 27, 2002
RICHARD L. MOSS
Director
/s/ Lee C. Redding Date: March 27, 2002
LEE C. REDDING
Director
/s/ Roy Reeves Date: March 27, 2002
ROY REEVES
Director
/s/ Johnny R. Slocumb Date: March 27, 2002
JOHNNY R. SLOCUMB
Director
/s/ Violet K. Weaver Date: March 27, 2002
VIOLET K. WEAVER
Director
/s/ C. Broughton Williams Date: March 27, 2002
C. BROUGHTON WILLIAMS
Director
-32-