SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended.................................................. 09-30-95
Commission File Number.................................................  2-83157

                        SOUTHEASTERN BANKING CORPORATION
--------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)


                 GEORGIA                                     58-1423423
(State or other jurisdiction of incorporation           (I. R. S. Employer
         or organization)                               Identification No.)

         1010 NORTHWAY STREET
         DARIEN, GEORGIA                                        31305
--------------------------------------------------------------------------------
(Address of principal executive office)                      (Zip Code)


Registrant's telephone number, including area code         (912) 437-4141
                                                      --------------------------

      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 [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

      Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

CLASS                                                    SHARES OUTSTANDING
-----                                                    ------------------
Common Stock  $1.25 Par Value                       1,193,599 Shares at 10-31-95

                      THIS DOCUMENT CONSISTS OF 11 PAGES.
                    THE EXHIBIT INDEX IS LOCATED AT PAGE 10.
                               


<PAGE>


<TABLE>
<CAPTION>
               SOUTHEASTERN BANKING CORPORATION AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS

                    SEPTEMBER 30, 1995 AND DECEMBER 31, 1994

                                  (UNAUDITED)

               ASSETS                                     9/30/95       12/31/94
               ------                                     --------------------------
<S>                                                       <C>           <C>         
Cash and due from banks                                   $ 11,795,724  $ 18,523,647

Federal funds sold                                           3,390,000     4,720,000
                                                          --------------------------
             Cash and cash equivalents                      15,185,724    23,243,647

Investment securities:
       Held to maturity (market value of
           $24,461,000 at September 30, 1995 and
           $24,414,000 at December 31, 1994)                23,382,148    24,661,034
       Available for sale, at market value                  69,831,173    66,687,545
                                                          --------------------------
             Total investment securities                    93,213,321    91,348,579

Loans, gross                                               168,835,646   160,221,819
       Unearned income                                      (3,929,680)   (3,950,090)
       Allowance for loan losses                            (3,431,050)   (3,257,000)
                                                          --------------------------
             Loans, net                                    161,474,916   153,014,729

Premises and equipment, net                                  7,142,620     7,311,116
Intangible assets                                            3,062,414     3,328,426
Other assets                                                 5,326,218     5,567,656
                                                          --------------------------
             Total assets                                 $285,405,213  $283,814,153
                                                          ==========================

       LIABILITIES AND STOCKHOLDERS' EQUITY
       ------------------------------------
Liabilities:
      Noninterest-bearing deposits                        $ 46,030,687  $ 48,216,342
      Interest-bearing deposits                            200,352,004   202,813,553
                                                          --------------------------
           Total deposits                                  246,382,691   251,029,895

U. S. Treasury demand note                                   2,758,390       635,347
Note payable                                                 3,025,000     3,500,000
Other liabilities                                            3,611,864     3,224,461
                                                          --------------------------
           Total liabilities                               255,777,945   258,389,703
                                                          --------------------------

Stockholders' equity:
      Common stock - $1.25 par value; authorized
         10,000,000 shares; issued and outstanding           1,491,998     1,491,998
         1,193,599 shares
      Additional paid-in-capital                             4,375,721     4,375,721
      Retained earnings                                     23,992,156    21,430,096
                                                          --------------------------
           Realized stockholders' equity                    29,859,875    27,297,815
      Unrealized losses on investment securities, net         (232,607)   (1,873,365)
                                                          --------------------------
           Total stockholders' equity                       29,627,268    25,424,450
                                                          --------------------------
             Total liabilities and stockholders' equity   $285,405,213  $283,814,153
                                                          ==========================
</TABLE>

                                       1

<PAGE>

<TABLE>
<CAPTION>
                SOUTHEASTERN BANKING CORPORATION AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994

                                   (UNAUDITED)

                                                   Quarter Ended September 30       Nine Months Ended September 30
                                                     1995             1994              1995              1994
                                                  ----------------------------      ------------------------------
<S>                                               <C>              <C>              <C>               <C>         
Interest Income:
      Loans, including fees                       $ 4,691,130      $ 3,590,817      $ 13,662,308      $ 10,049,492
      Federal funds sold                              105,349           35,623           415,586           134,892
      Investment securities:
          Taxable                                   1,075,422          874,138         3,175,395         2,787,681
          Tax-exempt                                  337,341          371,769         1,040,249         1,145,076
                                                  ----------------------------      ------------------------------
                  Total interest income             6,209,242        4,872,347        18,293,538        14,117,141
                                                  ----------------------------      ------------------------------

Interest expense:
      Deposits                                      2,474,499        1,714,939         7,161,407         5,072,002
      U. S. Treasury demand note                       28,923            8,223            59,283            29,218
      Note payable to bank                             61,820                            198,013
                                                  ----------------------------      ------------------------------
                  Total interest expense            2,565,242        1,723,162         7,418,703         5,101,220
                                                  ----------------------------      ------------------------------

                  Net interest income               3,644,000        3,149,185        10,874,835         9,015,921

Provision for loan losses                             300,000          300,000           900,000           900,000
                                                  ----------------------------      ------------------------------
                  Net interest income after
                  provision for loan losses         3,344,000        2,849,185         9,974,835         8,115,921
                                                  ----------------------------      ------------------------------

Other income:
     Service charges on deposit accounts              677,615          553,492         1,975,094         1,612,508
     Investment securities gains (losses), net         (1,630)          (5,402)          (40,614)           37,716
     Other operating income                           139,511           76,264           596,975           486,871
                                                  ----------------------------      ------------------------------
                  Total other income                  815,496          624,354         2,531,455         2,137,095
                                                  ----------------------------      ------------------------------

Other expense:
     Salaries and employee benefits                 1,496,777        1,230,038         4,464,176         3,624,522
     Net occupancy and equipment                      450,141          346,355         1,320,465         1,043,462
     Other operating expense                          626,710          672,341         2,223,973         2,112,612
                                                  ----------------------------      ------------------------------
                  Total other expense               2,573,628        2,248,734         8,008,614         6,780,596
                                                  ----------------------------      ------------------------------

                  Income before income taxes        1,585,868        1,224,805         4,497,676         3,472,420

Income tax expense                                    478,554          302,339         1,326,881           837,603
                                                  ----------------------------      ------------------------------
                  Net income                      $ 1,107,314      $   922,466      $  3,170,795      $  2,634,817
                                                  ============================      ==============================

Net income per share based on
    1,193,599 shares outstanding                        $0.93            $0.77             $2.66             $2.21
                                                  ============================      ==============================

Dividends per share                                     $0.17            $0.16             $0.51             $0.48
                                                  ============================      ==============================
</TABLE>


                                       2


<PAGE>

<TABLE>
<CAPTION>
                SOUTHEASTERN BANKING CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOW

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994

                                   (UNAUDITED)

                                                                      Nine Months Ended September 30
                                                                          1995               1994
                                                                     -------------------------------
<S>                                                                   <C>                <C>
Cash flows from operating activities:
    Net income                                                        $ 3,170,795        $ 2,634,817
    Adjustments to reconcile net income to net cash
    provided by operating activities:
        Provision for loan losses                                         900,000            900,000
        Depreciation                                                      632,783            628,760
        Amortization and accretion, net                                   182,010            195,739
        Deferred income tax benefit                                      (170,411)          (249,743)
        Investment securities losses (gains), net                          40,614            (37,716)
        Net gains on sales of other real estate owned                     (44,865)          (129,652)
        Changes in assets and liabilities:
            (Increase) decrease in other assets                          (161,148)            38,399
            Increase (decrease) in other liabilities                      578,379           (166,904)
                                                                     -------------------------------
                          Net cash provided by operating activities     5,128,157          3,813,700
                                                                     -------------------------------

Cash flows from investing activities:
       Proceeds from maturities of investment securities:
            Held to maturity                                            1,619,300          2,922,000
            Available for sale                                         17,241,634         15,248,409
       Proceeds from sales of investment securities:
            Available for sale                                          7,930,625          4,991,719
       Proceeds from sales of other real estate owned                     195,802            397,000
       Purchases of investment securities:
            Held to maturity                                             (352,792)        (2,192,459)
            Available for sale                                        (25,837,828)       (14,667,038)
       Net increase in loans                                           (9,769,053)       (18,944,602)
       Additions to premises and equipment, net                          (414,895)          (690,894)
                                                                     -------------------------------
                          Net cash used in investing activities        (9,387,207)       (12,935,865)
                                                                     -------------------------------

Cash flows from financing activities:
      Net (decrease) increase in demand, NOW, and
          savings deposits                                            (16,945,017)         6,707,360
      Net increase in certificates of deposit                          12,297,813            776,918
      Net increase (decrease) in U. S. Treasury demand note             2,123,043         (1,642,584)
      Payments on note payable                                           (475,000)
      Cash dividends paid                                                (799,712)          (751,968)
                                                                     -------------------------------
                          Net cash provided by financing activities    (3,798,873)         5,089,726
                                                                     -------------------------------

                          Net decrease in cash and cash equivalents    (8,057,923)        (4,032,439)

Cash and cash equivalents at beginning of year                         23,243,647         16,786,362
                                                                     -------------------------------

Cash and cash equivalents at September 30                             $15,185,724        $12,753,923
                                                                     ===============================
</TABLE>

                                       3

<PAGE>


                SOUTHEASTERN BANKING CORPORATION AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


         Southeastern Banking Corporation (the Company) is a bank holding
company headquartered in Darien, Georgia. Its two subsidiaries, Southeastern
Bank and Southeastern Bank of Florida, operate full-service banking offices in
southeast Georgia and central Florida. Southeastern Bank (SEB), a state banking
association incorporated under the laws of the State of Georgia, operates from
its main office in Darien and its branch offices in Douglas, Eulonia, Folkston,
Hazlehurst, Hoboken, Kingsland, Nahunta, Nicholls, St. Marys, and Woodbine. At
September 30, 1995, Southeastern Bank had total assets of approximately
$245,052,000. Southeastern Bank of Florida (SEBF), a state banking association
incorporated under the laws of the State of Florida, operates from its main
office in Alachua and its branch offices in Gainesville and Jonesville. At
September 30, 1995, Southeastern Bank of Florida had total assets of
approximately $39,918,000. Both banks provide traditional deposit and credit
services to individual and corporate customers.

         The primary objective of Southeastern Banking Corporation is to provide
quality banking service to the people in its trade areas while maintaining an
adequate return on investment for its stockholders and a capital base in excess
of regulatory requirements.

         On October 14, 1994, the Company acquired 100% of the outstanding
common stock of United Citizens Bank of Alachua County, Alachua, Florida under
the name Southeastern Bank of Florida (SEBF). The aggregate consideration paid
for SEBF was approximately $5,139,000.00. The results of operations of SEBF have
been included in the consolidated financial statements from the date of
acquisition forward.

         On September 15, 1995, the Company and SEBF signed a definitive
agreement to acquire the Callahan, Hilliard, and Yulee offices of Compass Bank
in North Florida's Nassau County. Geographically, Nassau County borders Camden
and Charlton Counties in South Georgia where the Company has existing offices.
The transaction is subject to the subsequent receipt of all necessary regulatory
approvals. At September 30, 1995, these Compass Bank offices had approximately
$25,000,000 in total assets.

         Total assets increased $1,591,060 or .56% at September 30, 1995
compared to December 31, 1994, after increasing $5,947,452 or 2.54% during the
same period in 1994. Deposit growth was the primary factor in the asset growth
at September 30, 1994. At September 30, 1995 and 1994, earning assets
represented approximately 90% of total assets.

         Investment securities, exclusive of unrealized gains and losses,
declined .66% during the first nine months of 1995. Holdings in the
available-for-sale portfolio increased $657,631, partially offsetting the
$1,278,886 decline in the held-to-maturity portfolio. During the same period in
1994, investment securities declined $6,350,695 or 6.83%. Funds from the net
principal paydowns, maturities, calls, and sales of these securities were used
to meet increased loan demand.

         Generally accepted accounting principles require that securities
classified as available for sale be carried at market value. The higher interest
rates in 1994 meant that the market value of our investment securities
classified as available for sale would decline, resulting in an overall net
unrealized loss at December 31, 1994. Due to the stabilization of interest rates
during the first nine months of 1995, the market value of our investment
securities has increased, resulting in a $2,485,997 reduction in the net
unrealized loss on these securities at September 30, 1995 compared to December
31, 1994.

         Loans, net of unearned income, grew $8,634,237 or 5.53% during the
first nine months of 1995. Approximately $2,266,000 of this growth occurred
since June 30, 1995. Nonaccrual loans represented .77% of net loans at September
30, 1995 versus 1.42% at year-end 1994. The net loans to deposits ratio was
66.93% at September 30, 1995 compared to 64.29% at June 30, 1995 and 62.25% at
December 31, 1994. During the first

                                       4


<PAGE>


nine months of 1994, net loans grew $18,373,084 or 16.06%. Though loan demand
has softened from 1994 levels, management anticipates continued loan growth
during the remainder of 1995.

         The allowance for loan losses was 2.08% of net loans at September 30,
1995 compared to 2.11% of net loans a year ago. Net charge-offs were $725,940,
up $154,940 from the net charge-offs at September 30, 1994.

         Gross premises and equipment increased $414,895 during the first three
quarters of 1995 due primarily to the preparatory work and equipment costs
involved with the installation of automatic teller machines at the Alachua and
Gainesville offices of SEBF and the Prime Retail outlet mall in Darien;
renovation of the Kingsland office; renovation of the drive-in at Eulonia; and
partial payment on a new computer software system. All of these improvements
will enable us to better serve our customers. During the same period in 1994,
gross premises and equipment increased $690,894 due mainly to the purchase of
proof equipment for the centralized proof center now operating at SEB's main
office in Darien.

         Other assets declined $241,438 or 4.34% since year-end 1994. The
substantial decline in deferred taxes on the unrealized gains and losses on
available-for-sale securities was largely offset by increases in foreclosed real
estate, accrued interest receivable on loans, and deferred income tax benefits
related to the allowance for loan losses.

                                    LIQUIDITY

         The purpose of liquidity management is to ensure sufficient cash flow
to satisfy demands for credit, deposit withdrawals, and other corporate needs.
The Company meets most of its daily liquidity needs through the management of
cash and federal funds sold. Additional short and long-term liquidity is
provided by payments and maturities of the loan and investment securities
portfolios. The Company's classification of investment securities for market
purposes also enables the Company to meet liquidity and other needs prior to
asset maturity when necessary.

         Deposits declined $4,647,204 or 1.85% at September 30, 1995 compared to
year-end 1994. The loss of several political subdivision accounts accounted for
most of this decline. At quarter-end, interest bearing deposits represented
81.32% of total deposits compared to 80.79% at year-end 1994. Approximately
$212,458,000 and $33,925,000 of total deposits were attributable to SEB and
SEBF, respectively. During the first nine months of 1994, deposits grew
$7,484,278 or 3.68%. In addition to deposits and the other liquidity sources
mentioned above, the Company has also made arrangements with correspondent banks
to handle any unusual short-term liquidity needs.

         The U. S. Treasury  demand note increased  $2,123,043 at September 30,
1995 compared to December 31, 1994, after declining $1,642,584 during the same
period in 1994. The balance of this note fluctuates based on the amount of
payroll and income taxes deposited by commercial customers and the cash needs of
the U. S. Treasury.

         During the first nine months of 1995, the Company paid $475,000 on its
note payable to bank. Principal payments of $425,000 are due annually.


                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                       5

<PAGE>

                            INTEREST RATE SENSITIVITY

         The objective of interest rate sensitivity management is to minimize
the effect of interest rate changes on net interest margin while maintaining net
interest income at acceptable levels. The Company attempts to accomplish this
objective by structuring the balance sheet so that repricing opportunities exist
for both assets and liabilities in roughly equivalent amounts at approximately
the same time intervals. Imbalances in these repricing opportunities at any time
constitute interest rate sensitivity. An indicator of interest rate sensitivity
is the difference between interest rate sensitive assets and interest rate
sensitive liabilities; this difference is known as the interest rate sensitivity
gap.

         The Company's interest rate sensitivity position at September 30, 1995
is set forth in the table below:

<TABLE>
<CAPTION>
INTEREST RATE SENSITIVITY
(Amounts in Thousands)                                               REPRICING WITHIN
                                        ---------------------------------------------------------------------------
                                                                                              More
                                             0-90       91-180      181-365    One-Five    Than Five
                                             Days        Days        Days        Years       Years         Total
                                        ---------------------------------------------------------------------------
<S>                                         <C>         <C>         <C>        <C>           <C>          <C>     
Interest Rate Sensitive Assets:
  Federal Funds Sold                         $3,390                                                         $3,390
  Securities*                                 4,923       7,602       7,535      55,685       17,821        93,566
  Loans                                      80,083       9,879      16,950      47,089       14,835       168,836
                                       ----------------------------------------------------------------------------
     Total Interest Rate Sensitive
         Assets                             $88,396     $17,481     $24,485    $102,774      $32,656      $265,792

Interest Rate Sensitive Liabilities:
  Deposits                                  $72,285     $25,169     $29,743     $45,849         $256      $173,302
  U. S. Treasury Demand Note                  2,758                                                          2,758
  Note Payable                                3,025                                                          3,025
                                       ----------------------------------------------------------------------------
     Total Interest Rate Sensitive
         Liabilities                        $78,068     $25,169     $29,743     $45,849         $256      $179,085
                                       ----------------------------------------------------------------------------
INTEREST RATE SENSITIVITY GAP               $10,328     $(7,688)    $(5,258)    $56,925      $32,400       $86,707
                                       ============================================================================
CUMULATIVE INTEREST RATE
  SENSITIVITY GAP                           $10,328      $2,640     $(2,618)    $54,307      $86,707
                                       ============================================================================

CUMULATIVE GAP AS A % OF TOTAL
   ASSETS--SEPTEMBER 30, 1995                 3.52%        .90%       -.89%      18.53%       29.59%
                                       ============================================================================

CUMULATIVE GAP AS A % OF TOTAL
   ASSETS--SEPTEMBER 30, 1994                -1.60%      -3.16%      -2.23%      19.77%       33.25%
                                       ============================================================================
<FN>
* Distribution of maturities for available for sale securities is based on
amortized cost. Additionally, distribution of maturities for mortgage-backed
securities is based on expected final maturities which may be different from the
contractual terms.
</FN>
</TABLE>

         At September 30, 1995, the gap analysis indicates a negative cumulative
gap position through the one year time interval of $(2,618,000). A negative gap
position indicates that the Company's rate sensitive liabilities will reprice
faster than its rate sensitive assets, with 74% of rate sensitive liabilities
and 49% of rate sensitive assets repricing within one year. As a percent of
total assets, the Company's cumulative gap for the one year time interval has
narrowed to (.89%) from (2.23%) a year ago.

         The interest rate sensitivity table presumes that all loans and
securities* will perform according to their contractual maturities when, in many
cases, actual loan terms are much shorter than the original terms and securities
are subject to early redemption. In addition, the table does not necessarily
indicate the impact of general interest rate movements on net interest margin
since the repricing of various categories of assets and liabilities is subject
to competitive pressures and customer needs. The Company monitors and adjusts
its exposure to interest rate risks within specific policy guidelines based on
its view of current and expected market conditions.

                                       6

<PAGE>


                                CAPITAL RESOURCES

         Realized stockholders' equity increased 9.39% during the first nine
months of 1995, an increase in book value from $22.87 to $25.02 per share. Our
investment securities classified as available for sale appreciated in value at
September 30, 1995 compared to December 31, 1994, resulting in a $1,640,758
increase in unrealized stockholders' equity; this appreciation resulted from a
decline in market interest rates since year-end 1994. Consistent with our
objectives, the Company maintains capital ratios well above regulatory
requirements. Our capital ratios for the most recent periods are presented in
the table below.

         Capital adequacy is measured with a framework that makes capital
requirements sensitive to the risk profiles of individual banking companies.
Regulatory guidelines define capital as either Tier 1 (primarily stockholders'
equity) or Tier 2 (certain debt instruments and a portion of the allowance for
loan losses). The Company and its subsidiaries are subject to a minimum Tier 1
capital to risk-weighted assets ratio of 4% and a total capital (Tier 1 plus
Tier 2) to risk-weighted assets ratio of 8%. Additionally, the Company is
subject to a Tier 1 leverage ratio that measures the ratio of Tier 1 capital to
average quarterly assets. In December 1994, the regulatory agencies issued a
final rule prohibiting banks and bank holding companies from including
unrecognized gains and losses on investment securities in calculating risk-based
capital.

         The regulatory agencies have defined "well-capitalized" institutions as
those whose capital ratios equal or exceed the following ratios: Tier 1 capital
ratio of 6%, total risk-based capital of 10%, and Tier 1 leverage ratio of 5%.
At September 30, 1995, the Company's Tier 1 capital, total risk-based capital,
and Tier 1 leverage ratios were 16.08%, 17.34%, and 9.42%. The Company's ratios
declined at September 30, 1995 and December 31, 1994 compared to September 30,
1994 and December 31, 1993 due to the increase in assets that resulted from our
cash purchase of SEBF.

<TABLE>
<CAPTION>
       --------------------------------------- --------------- ---------------- --------------- ----------------

       SOUTHEASTERN BANKING CORPORATION           9/30/95          9/30/94         12/31/94        12/31/93
       --------------------------------------- --------------- ---------------- --------------- ----------------
<S>                                                <C>             <C>              <C>             <C>   
         Tier 1 Capital Ratio                      16.08%          19.06%           15.07%          19.46%
       --------------------------------------- --------------- ---------------- --------------- ----------------
         Total Risk-Based Capital Ratio            17.34%          20.32%           16.33%          20.71%
       --------------------------------------- --------------- ---------------- --------------- ----------------
         Tier 1 Leverage Ratio                     9.42%           10.75%           8.79%           10.15%
       --------------------------------------- --------------- ---------------- --------------- ----------------
         Realized Shareholders' Equity
             to Assets                             10.46%          11.06%           9.56%           10.53%
       --------------------------------------- --------------- ---------------- --------------- ----------------
</TABLE>

                              RESULTS OF OPERATIONS

NET INTEREST INCOME

         Interest income increased $1,336,895 or 27.44% during the third quarter
of 1995 compared to the third quarter of 1994. For the nine month period,
interest income increased $4,176,397 or 29.58%. The loan portfolio remained the
primary factor in the interest income improvement. For the first nine months of
1995, interest and fees on loans were up $3,612,816 or 35.95%. SEBF, whose
operating results have been included in the consolidated financial statements
from the date of acquisition forward, added $1,672,350 in interest and fees on
loans during the first three quarters of 1995. The remaining increase in
interest and fees on loans results from higher average balances and yields at
SEB: The yield on loans was 11.87% at September 30, 1995, up 82 basis points
from September 30, 1994. For the first nine months of 1994, interest and fees on
loans were up $941,027 or 10.33% from 1993; a 12.09% increase in average
balances was the primary factor in the prior year results.

                                       7


<PAGE>


         When compared to the results for the first nine months of 1994,
interest income on investment securities increased $282,887 or 7.19% during the
first three quarters of 1995. SEBF accounted for all of the increase, because
SEB's interest earnings on investments declined $159,036 or 4.04%. The SEB
decline was attributable to an 8.31% drop in average balances. The yield on
taxable investments was 5.86% at September 30, 1995 compared to 5.80% at June
30, 1995 and 5.46% at September 30, 1994. The taxable-equivalent yield on
tax-free investments was 9.25% at September 30, 1995 compared to 9.48% at
September 30, 1994. Interest income on investment securities declined $171,164
or 12.08% during the third quarter of 1994 compared to 1993.

         After giving effect to the increase in interest income on federal funds
sold attributable to SEBF, interest income on federal funds sold increased
$175,681 during the first nine months of 1995. The current period increase was
marked by higher average balances and rates at SEB. The yield on federal funds
sold for the nine month period was 5.88%, up 218 basis points from 1994.
Interest income on federal funds sold declined a mere $4,542 or 3.26% during the
first nine months of 1994 compared to 1993.

         Interest expense on deposits increased $759,560 or 44.29% during the
third quarter of 1995 compared to the third quarter of 1994. For the nine month
period, interest expense on deposits increased $2,089,405 or 41.19%.
Approximately 47% of the increase was attributable to SEBF; the remaining 53%
increase was attributable to higher average deposit balances and higher rates on
deposits at SEB. For the nine months of 1995, the average interest paid on
deposits was 4.70%, up 85 basis points from 1994 levels. During the first nine
months of 1995, the average interest paid on the term loan was 7.93%. The change
in interest expense for the first nine months of 1994 was insignificant.

         The increase in interest income for the first nine months of 1995
exceeded the increase in interest expense, producing a $1,858,914 or 20.62%
increase in net interest income. Approximately 66% and 34% of this increase was
attributable to SEBF and SEB, respectively. Net interest income increased
$597,370 or 7.10% during the same period in 1994.

         The  provision  for loan losses for the quarter and nine months ended
September 30, 1995 was $300,000 and $900,000, unchanged from the provision at
September 30, 1994.

OTHER INCOME

         After giving effect to the increase in noninterest income attributable
to SEBF, noninterest income grew $110,552 or 5.17% during the first nine months
of 1995 compared to the same period in 1994. The current period improvement
resulted from increases in service charges on deposit accounts and commissions
from the sale of credit life insurance; these increases offset declines in book
gains on sales of other real estate owned and realized losses on sales of
investment securities. Various investment securities were sold during these
first nine months to enable the Company to maintain its liquidity position and
to increase the overall rates of return of the investment portfolio. Other
income declined $170,332 or 7.38% during the first three quarters of 1994. After
giving effect to the 1993 increase in other income resulting from the favorable
settlement of a lawsuit, the decline in other income at September 30, 1994
resulted primarily from declines in book gains on sales of other real estate
owned.

OTHER EXPENSE

         Salaries and employee benefits were up $839,654 or 23.17% at September
30, 1995 compared to 1994. Approximately $580,000 or 69% of the nine month
increase was attributable to SEBF; increased benefit accruals at SEB accounted
for the remaining 31% increase. For the quarter and nine months ended September
30, 1994, the change in salaries and employee benefits was less than 1.5%.

         When compared to the results for the first nine months of 1994, net
occupancy and equipment expense was up $277,003 or 26.55% at September 30, 1995.
SEBF accounted for virtually all of the current increase in net

                                       8


<PAGE>


occupancy and equipment expense. During the same period last year, net occupancy
and equipment expense declined $27,793 or 2.59%. Other operating expense
increased $111,361 or 5.27% during the nine months ended September 30, 1995
compared to September 30, 1994. The $412,580 increase attributable to SEBF was
largely offset by declines in legal and accounting fees and the effective
reduction in SEB's FDIC assessment fees due to the recapitalization refunds
received on assessments paid during the second and third quarters of 1995.
During the first nine months of 1994, other operating expense was up $152,356 or
7.77% due largely to legal and accounting fees associated with pending
acquisitions.

         Income tax expense increased $176,215 or 58.28% during the third
quarter of 1995 compared to 1994. Income tax expense for the first nine months
of 1995 was up $489,278 or 58.41% over the same period in 1994 which was up
22.20% over 1993. Net income in the second quarter of 1995 totaled $1,107,314 or
$0.93 per share, up 20.04% over the same period in 1994. For the nine months
ended September 30, 1995, net income totaled $3,170,795 or $2.66 per share, up
$535,978 or 20.34% over the same period in 1994 which was down $45,443 or 1.70%
from 1993. The return on beginning equity for the nine month period was 15.49%,
up from the 14.27% return at September 30, 1994.


                                       9


<PAGE>

                          PART II -- OTHER INFORMATION


ITEM 1.           LEGAL PROCEEDINGS
                  (NOT APPLICABLE)

ITEM 2.           CHANGES IN SECURITIES
                  (NOT APPLICABLE)

ITEM 3.           DEFAULTS UPON SENIOR SECURITIES
                  (NOT APPLICABLE)

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
                  (NOT APPLICABLE)

ITEM 5.           OTHER INFORMATION
                  (NOT APPLICABLE)

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Index to Exhibits:

                            EXHIBIT TABLE
                  ----------------------------------------
                  Exhibit 22    Subsidiaries of Registrant

                  Exhibit 27    Financial Data Schedule
                                    Submitted in electronic format only.

         (b)      Reports on Form 8-K  -  NONE

                                       10

<PAGE>

                                   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.


                                               SOUTHEASTERN BANKING CORPORATION
                                               (REGISTRANT)


                                               By: /s/ S. MICHAEL LITTLE
                                               ---------------------------------
                                               S. Michael Little, Vice-President


                                               By: /s/ WANDA D. PITTS
                                               ---------------------------------
                                               Wanda D. Pitts, Secretary

Date:    NOVEMBER 13, 1995

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