FORM 10-QSB

U. S. Securities and Exchange Commission

Washington, D.C. 20549

(Mark One)

[X]	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended December 31, 2000
[ ] 	TRANSITIONS REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1943.

For the transition period from ___________ to _________

Commission file number 0-16657

FIRST GEORGIA HOLDING, INC.

**Georgia**58-1781773**(State or other jurisdiction or 

incorporation or organization)**(IRS Employer Identification No.)
** 

1703 Gloucester Street

Brunswick, Georgia 31520

(Issuer's Address)

(912) 267-7283

(Issuer's telephone number)

Check whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and(2) has been subject to such filing requirements for the past 90 days. Yes X No______ 

Number of shares of Common Stock outstanding as of December 31, 2000.

 

7,713,733

 

**PART 1**FINANCIAL INFORMATION
 
The consolidated financial statements of First Georgia Holding, Inc. filed as part of this report are as follows:
 
Page
Consolidated Balance Sheets as of

December 31, 2000 and September 30, 2000
3
 
 
Consolidated Income Statements for the Three Months Ended 

December 31,2000 and December 31, 1999
4
 
 
Consolidated Cash Flow Statements for the Three Months Ended 

December 31, 2000 and December 31, 1999
5
 
 
Notes to Consolidated Financial Statements
6
 
 
Management's Discussion and Analysis of Consolidated

Statements of Financial Condition and Results of Operation
7
 
 
PART II
 
 
Item 6. Exhibits and Reports on Form 8-k
14
 
 
 

 

**FIRST GEORGIA BANK
CONSOLIDATED BALANCE SHEETS

(unaudited)
 
 
 
 **December 31,**September 30,
 **2000**2000**Assets:
 
 
Cash and cash equivalents:
 
 
   Cash and due from banks
$       10,712,219
$         6,380,375
   Federal funds sold
594,580
9,840,000
   Interest bearing deposits in other banks
274,951
366,385
   Cash and cash equivalents
11,581,750
16,586,760
 
 
 
Investment securities held to maturity, fair value

   Approximately $18,470,000 at December 31, 2000

   and $17,476,000 at September 30, 2000
18,496,649
17,878,121
Loans receivable, net of allowance for loan losses

   of approximately $2,540,000 and $2,365,000 at

   December 31, 2000 and September 30, 2000, respectively
200,342,015
193,644,376
Real estate owned
734,400
314,338
Federal Home Loan Bank stock, at cost
892,300
892,300
Premises and equipment, net
5,474,306
5,569,758
Accrued interest receivable
1,608,318
1,507,692
Intangible assets, net
573,746
597,653
Other assets
1,962,771
2,194,205
 
 
 
Total Assets
$     241,666,255
$      239,185,203
 
 
 **Liabilities and Stockholders' Equity
 
 **Liabilities:
 
 
Deposits
    $     210,829,990
$     214,046,716
Federal Home Loan Bank advances
3,500,000
2,500,000
Federal funds purchased 
2,800,000
-
Other borrowings
2,000,000
2,000,000
Accrued interest payable
734,043
719,202
Accrued expenses and other liabilities
2,858,172
1,563,679
 
$     222,722,205
$     220,829,597**Stockholders' Equity
 
 
Common stock, $1.00 par value; 10,000,000 shares authorized; 7,713,733 and 7,713,733 shares issued and outstanding at December 31, 2000 and September 30, 2000, respectively
7,713,733
7,713,733
Additional paid-in capital
396,297
396,297
Retained earnings
10,834,020
10,245,576
 
 
 
Total Liabilities and Stockholders' Equity
18,944,040
18,355,606
 
 
 
 
$    241,666,255
$    239,185,203
 
 
 
See accompanying notes to consolidated financial statements.
 
 
 

**FIRST GEORGIA HOLDING, INC.
CONSOLIDATED INCOME STATEMENTS

(unaudited)
 
 
 **Three Months Ended
 **December 31,
 **2000**1999
Interest Income:
 
 
   Loans
$   5,035,802
$   4,249,064
   Interest on Federal funds sold
73,685
3,353
   Interest on investments
347,731
223,635
   Other
11,538
993
     Total interest income
5,468,756
4,477,045
 
 
 
Interest Expense:
 
 
   Deposits
2,554,609
1,857,907
   FHLB advances and other borrowings
83,785
184,622
     Total interest expense
2,638,394
2,060,529
 
 
 
   Net interest income
2,830,362
2,416,516
   Provision for loan losses
210,000
30,000
Net interest income after provision for loan losses
2,620,362
2,386,516
 
 
 
Other Income:
 
 
   Loan servicing fees
126,105
134,873
   Deposit service charges
514,097
440,901
   Gain on sale of real estate owned and foreclosed property
26,909
16,316
   Other operating income
44,274
33,287
     Total other income
711,385
625,377
 
 
 
Other Expenses:
 
 
   Salaries and employee benefits
1,086,543
955,841
   Premises and occupancy costs
563,048
452,523
   Amortization of intangibles
23,907
23,907
   Federal insurance premiums
10,554
25,124
   Other operating expenses
636,289
554,320
     Total other expenses
2,320,341
2,011,715
 
 
 
Income before income taxes
1,011,406
1,000,178
   Income Taxes
422,962
400,434
 
 
 
   Net Income
$    588,444
$     599,744
 
 
 
Income per share of common stock:
 
 
   Basic
$          0.08
$           0.08
   Diluted
$          0.08
$           0.08
 
 
 
See accompanying notes to consolidated financial statements
 

**FIRST GEORGIA HOLDING, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)
 
 
 
 **THREE MONTHS ENDED
 **DECMBER 31,
 **2000**1999
OPERATING ACTIVITIES:
 
 
   Net Income
$      588,444 
$      599,744 
Adjustments to reconcile net income to net cash

   provided by operations:
 
 
   Provision for loan losses
210,000 
30,000 
   Depreciation and amortization
277,564 
270,970 
   Amortization of intangibles
23,907 
23,907 
   Amortization of Deferred loan fees
(65,471)
(9,196)
   Gain on sale of real estate owned and foreclosed property
(26,909)
(16,316)
   Increase in accrued interest receivable
(100,626)
(121,829)
   Increase in other assets
231,434 
521,484 
   Increase in accrued interest payable
14,841 
46,974 
   Increase (decrease) in accrued expenses and liabilities
1,294,493 
(746,462)
 
 
 
Net Cash Provided By Operating Activities
2,447,677 
599,276 
 
 
 
INVESTING ACTIVITIES:
 
 
   Principal payments received on mortgage-backed securities
320,993 
711,114 
   Purchase of investment securities
(929,086)
- 
   Loan originations net of principal repayments
(7,836,146)
(13,168,272)
   Purchase of premises and equipment
(192,548)
(381,581)
   Proceeds from the sale of real estate owned
600,826 
502,187 
 
 
 
Net Cash Used By Investing Activities
(8,035,961)
(12,336,552)
 
 
 
FINANCING ACTIVITIES
 
 
   Net (decrease) increase in deposits
(3,216,726)
10,456,388 
   Proceeds from FHLB advances
1,000,000 
2,000,000 
   Net increase in Federal funds purchased
2,800,000 
- 
 
 
 
   Net Cash Provided By Financing Activities
583,274 
12,456,388 
 
 
 
Net (decrease) increase in cash and cash equivalents
(5,005,010)
719,111 
Cash and cash equivalents at beginning of quarter
16,586,760 
7,202,566 
 
 
 
Cash and cash equivalents at end of quarter
$   11,581,750 
$    7,921,677 
 
 
 
Supplemental disclosure of cash paid during the period for:
 
 
  Interest
$    2,623,553 
$    2,060,529 
  Income taxes
- 
88,437 
 
2,623,553 
2,148,966 
 
 
 
Supplemental disclosure of non-cash activities:
 
 
   Loans transferred to real estate owned
$     993,978 
$     466,240 
   Sale of real estate owned financed by bank
86,106 
- 
 
$  1,080,081 
$     466,240 
See accompanying notes to consolidated financial statements
 

FIRST GEORGIA HOLDING, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) 	BASIS OF PRESENTATION

     In the opinion of Management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of First Georgia Holding, Inc. as of December 31, 2000and September 30, 2000. Also included are the results of its operations and changes in financial position for the three months ended December 31, 2000 and 1999. The results of operations for the interim periods presented are not necessarily indicative ofthe results to be expected for the full year.

     The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation.

     For further information, refer to the consolidated financial statements and footnotes thereto included in the Bank's Annual Report to Shareholders, incorporated by reference into the Company's Form 10-KSB for the yearended September 30, 2000.

(2)       EARNINGS PER SHARE

     Earnings per share were calculated using the weighted-average number of shares outstanding for the period. The diluted earnings per share takes into consideration the assumed increase in shares from the conversion of stockoptions as well.

 **Three Month Period Ended

December 31,
 **2000**1999
 
 
 
Weighted average number of common

shares outstanding - Basic
7,713,733
7,198,371
 
 
 
Incremental shares from the assumed

conversion of stock options
31,848
510,878
 
 
 
Total - Diluted
7,745,581
7,709,249

 

	The incremental shares from the assumed conversion of stock options were determined using the treasury stock method under which the assumed proceeds were equal to the amount that the Company would receive upon the exercise of the options plus theamount of total benefit that would be credited to additional paid-in-capital assuming exercise of options. The assumed proceeds are used to purchase outstanding shares at the average market price during the period.

 

(3)   ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses are summarized as follows:

 **Three Months

Ended December 31,

2000**Year Ended

September 30,

2000
 
 
 
Beginning Balance
2,364,704 
1,235,566 
Provision charged to operations
210,000 
2,640,000 
Charge-offs
(52,892)
(1,653,310)
Recoveries
18,512 
142,448 
Balance, end of year
2,540,324 
2,364,704 

 

(4)	NEW ACCOUNTING PRONOUNCEMENTS

            In June 1998, the FASB issued Statement of Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Actives". In June 2000, the FASB issued SFASNo. 138, which amends certain provisions of SFAS 133 to clarify four areas causing difficulties in implementation. The amendment included expanding the normal purchase and sale exemption for supply contracts, permitting the offsetting of certainintercompany foreign currency derivatives and thus reducing the number of third party derivatives, permitting hedge accounting for foreign-currency denominated assets and liabilities, and redefining interest rate risk to reduce sources of ineffectiveness.The Company completed its evaluation of the various issues related to SFAS 133, including performing an inventory of derivative and embedded derivative instruments and has determined that, for the year ended September 30, 2000, and the quarter endedDecember 31, 2000 the Company had no derivative instruments as defined by SFAS 133. Accordingly, there was no impact on the consolidated balance sheet, statement of operations or statement of cash flows of the Company when SFAS 133 was adopted on October1, 2000.

 

FIRST GEORGIA HOLDING, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

	The following discussion should be read in conjunction with the financial statements and related notes appearing elsewhere in this Form 10-Q

LIQUIDITY

            First Georgia Bank (the "Bank") has traditionally maintained levels of liquidity above levels required by regulatory authorities. As a member of the Federal Home Loan Bank System,the Bank is required to maintain a daily average balance of cash and eligible liquidity investments equal to a monthly average of 4% of withdrawable savings and short-term borrowings. The Bank's liquidity level was 6.85% and 7.79% at December 31, 2000 andSeptember 30, 2000, respectively.

            The Bank's operational needs, demand for loan disbursements, and savings withdrawals can be met by loan principal and interest payments received, new deposits, and excess liquidassets. Significant loan demand, deposit withdrawal, increased delinquencies, and increased real estate acquired in settlement of loans (REO) could alter this condition. Management does not foresee any liquidity problems for 2001.

 

CAPITAL RESOURCES

            The following is reconciliation at December 31, 2000 of the Bank's equity capital to regulatory capital, under generally accepted accounting principles:

 

First Georgia Bank
 
     Stockholder's Equity
$    21,693,000
 
 
Less:
 
     Intangible assets
574,000
        Tangible Capital
21,119,000
 
 
Plus:
 
     Qualifying intangible assets
574,000
        Core Capital
21,693,000
 
 
Plus:
 
     Supplemental Capital
2,540,000
 
 
Less:
 
     Deducted Capital
294,000
       Risk-Based Capital
$   23,939,000
 

 

            Current regulations require institutions to keep minimum regulatory tangible capital equal to 1.5% of adjusted assets, minimum core capital to adjusted assets of 3% (the leverageratio), and risk-based capital to risk-adjusted assets of 8%. The Office of Thrift Supervision (the OTS) may increase the minimum core capital, or leverage ratio, based on its assessment of the institution's risk management systems and the level of totalrisk in the individual institution. At December 31, 2000, the Bank met all three capital requirements.

           The Bank's regulatory capital and the required minimum amounts at December 31, 2000 are summarized as follows:

		

 **Bank Capital**Amount**Excess (Defiency)
 
 
 
 
 
 
 
Tangible Capital:
8.76%
$21,119,000
1.50%
$3,616,000
7.26%
$17,503,000
 
 
 
 
 
 
 
Core Capital:
8.98%
$21,693,000
4.00%
$9,667,000
4.98%
$12,026,000
 
 
 
 
 
 
 
Risk-Based Capital:
11.26%
$23,939,000
8.00%
$17,005,000
3.26%
$6,934,000
	

 

            The Federal Deposit Insurance Corporation Improvement Act (FDICIA) required the Federal banking agencies to take "prompt corrective action" in respect to institutions that do notmeet minimum capital requirements. Along with the ratios described above, FDICIA also introduced an additional capital measurement, the Tier 1 risk-based capital ratio. The Tier 1 ratio is the ratio of Tier 1 or core capital to total risk-adjusted assets.FDICIA establishes five capital tiers: "well capitalized," "adequately capitalized," "undercapitalized," "significantly undercapitalized," and "critically undercapitalized." The regulators summarize their minimum requirements for the five capital tiersestablished by the FDICIA as follows:

 

 
Risk-Based

Capital Ratio
Tier I Risk-Based 

Capital Ratio
Tier I

Leverage Ratio
Well Capitalized
10% or above
6% or above
5% or above
Adequately Capitalized
8% or above
4% or above
4% or above
Undercapitalized
Less than 8%
Less than 4%
Less than 4%
Significantly Undercapitalized
Less than 6%
Less than 3%
Less than 4%
Critically Undercapitalized
--------------------------
----------------------
2% or less
 

           An unsatisfactory examination rating may cause an institution's capitalization category to be lower than suggested by its actual capital position. 

           At December 31, 2000, the Bank's Tier 1 risk-based capital ratio was 10.20%. If a depository institution should fail to meet its regulatory capital requirements, regulatory agencies canrequire submission and funding of a capital restoration plan by the institution, place limits on its activities, require the raising of additional capital, and ultimately require the appointments of a conservator or receiver for the institution.

           The Bank's capital position changed during the quarter ended December 31, 2000. Total capital as well as tangible capital, core capital, and risk-based capital continued to increaseduring the quarter. The mix of risk-based assets and additional earnings are the primary factors for this increase.

RESULTS OF OPERATIONS

INTEREST INCOME

           Interest income on loans increased $786,738, or 18.52%, for the three month period ended December 31, 2000 as compared to the same period in 1999. The Company has been aggressive inattracting new loan business while competition for loans remains strong and loan demand is still steady in the marketplace. However, the Bank continues to be selective in the loans that it makes. Interest rates decreased during the quarter and Managementexpects loan demand to maintain current levels. At December 31, 2000, the Bank utilized most of its cash to fund loans. However, the interest on Federal funds sold increased $70,332 as compared to the same period in 1999. Interest on investments increased$124,096, or 55.49%. This increase is related to the $618,528 increase in investment balances during the quarter. In a trend continued from the prior fiscal year, the Bank has seen significant growth in its deposit balances. The Bank is continuing tooffer a variety of deposit products, such as free checking, which has been favorably accepted in the marketplace. Consequently, the Bank has been able to invest money into short-term interest earning vehicles, such as overnight Federal funds sold.

INTEREST EXPENSE

Interest on deposits increased $678,702 or 36.18% for the quarter ended December 31, 2000 as compared to the same period in 1999. This increase is primarily attributable to an increase in 1-year certificates of deposit. Interest expense on this type ofaccount increased approximately $678,000 during the period ended December 31, 2000 as compared to the same quarter last year. Interest on FHLB advances and other borrowings decreased $100,837, or 54.62% for the quarter ending December 31, 2000 over thesame quarter last year. At the beginning of the previous fiscal year, loan growth outpaced deposit growth. Therefore, the Bank found it necessary to borrow Federal funds. However, during the quarter ended December 31, 2000, deposits were large enough tofund loan balances. Therefore, the Bank was able to sell Federal funds instead of borrow.

 

NET INTEREST INCOME

           Net Interest Income increased $413,846, or 17.13% for the quarter ended December 2000 over the same period ended December 31, 1999. Increases in loan balances and interest rate offset byinterest earning deposits have contributed substantially to the increase net interest income.

PROVISION FOR LOAN LOSSES

            The provision for loan losses for the three-month period ended December 31, 2000 totaled $210,000, an increase of $180,000 over the same period in 1999. With the growth in loanvolume and the increase in charge-offs, Management found it necessary to increase the loan loss provision. Net interest income after the provision for loan losses for the quarter ended December 31, 2000 increased $233,846, or 9.80% from the same periodlast year. 

OTHER INCOME

           Other income for the quarter increased $86,008, or 13.75% from the same quarter the previous year. Loan servicing fees decreased $8,768, or 6.50% for the quarter ended December 31, 2000as compared to the quarter ended December 31, 1999. This decrease results from lower fees earned on brokered mortgage loans. Deposit service charges increased $73,196 or 16.60% for the quarter ended December 31, 2000. This increase is related to increasedfee income, such as service charges and insufficient funds fees. Other operating income increased $10,987, or 33.01% for the quarter ended December 31, 2000 as compared to the same quarter last year. This increase is the result of increased ATM fees. Alsoincluded in other income is a $26,909 gain on the sale of foreclosed property, which is a $10,593 increase from the same quarter last year.

OTHER EXPENSES

           Other expenses for the quarter ended December 31, 2000 increased $308,626, or 15.34%, over the quarter ended December 31, 1999. Salaries and employee benefits increased $130,702, or13.67% for the three-month period ending December 31, 2000 over December 31, 1999 as a result of additional personnel. Premises and occupancy costs increased $110,525 or 24.42% in the quarter ended December 31, 2000 over the same period last year.Additional computer, phone, and other office equipment were added for the new customer service areas. Also included in other expenses are cost related to a new operating location of the IT department. Other operating expenses increased $81,969 or 14.79%,for the quarter as compared to the same quarter last year. This increase results primarily from additional expenses related to the customer call center. Federal Insurance premiums for the quarter ended December 31, 2000 decreased $14,570, or 57.99% fromDecember 31, 1999. These premiums, which were decreased during the quarter, are based on the size of a bank's deposit portfolio. 

           The provision for income taxes increased by $22,528 or 5.63% for the quarter ended December 31, 2000 as compared to the same period in 1999. The effective tax rate Management uses isconsistent at a rate of 40%.

 

FINANCIAL CONDITION

ASSETS

           Cash and cash equivalents decreased $5,005,010, or 30.17%, over the three-month period ended December 31, 2000. This decrease results primarily from a decrease in average balances ondeposits and an increase in loans and investments. Investment balances increased $618,528, or 3.46%, for the three months ended December 31, 2000. The Bank is investing more of its cash into interest earning assets. Premises and equipment decreased$95,452, or 1.71%. The decrease results exclusively from depreciation, as the Bank did not purchase any new equipment during the quarter ended December 31, 2000. Other assets decreased $231,434, or 15.61% during the period as compared with the samequarter last year. The decrease is primarily related to a $330,159 decrease in the income tax receivable account, offset by a $100,000 increase in other accounts receivable. Other accounts receivable increased due to the sale of a piece of REO property onDecember 31,2000 which created a $100,000 receivable.

           Loans receivable increased $6,697,639, or 3.46% as of the three months ended December 31, 2000 over September 30, 2000. The Bank has been aggressive, yet selective, in attracting newloan business. Loan demand is steady, and the Bank has been successful in drawing strong, safe loans to the Bank. Loans receivable at December 31 and September 30, 2000 are summarized as follows:

**LOANS RECEIVABLE
 
 
 
 **December 31,

2000**September 30,

2000
Real estate mortgage loans
$   130,746,148 
$   128,039,030 
Real estate construction loans
38,932,181 
35,871,217 
Consumer loans
17,313,512 
17,089,161 
Commercial and other loans
16,120,506 
15,285,001 
 
203,112,348 
196,284,409 
 
 
 
Less:
 
 
   Deferred Loan fees
(172,955)
(212,055)
   Unearned interest income
(57,054)
(63,274)
   Allowance of for loan losses
(2,540,324)
(2,364,704)
 
$   200,342,015 
$   193,644,376 
 
 
 
 

ALLOWANCE FOR LOAN LOSSES

            Management conducts an extensive review of the provision for loan losses on a monthly basis. Additions to the allowance for loan losses are charged to operations based uponmanagement's evaluation of the potential losses in its loan portfolio. This evaluation considers the estimated value of the underlying collateral and such other factors as, in management's judgement, deserve recognition under existing economic conditions.While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, various regulatoryagencies, as an integral part of their examination process, periodically review the Bank's allowances for losses on loan and real estate owned. Such agencies may require the Bank to recognize additions to the allowances based on their judgements ofinformation available to them at the time of their examination.

            A loan is considered impaired when it is probable that the company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Bank'simpaired loans include non-accrual loans, troubled debt restructurings, and large loans more than 90 days delinquent in which full payment of principal and interest is not expected. Cash receipts on impaired loans are used to reduce principal balances.Impairment losses are included in the allowance for loan losses through a charge to the provision for loan losses. Impairment losses are measured by the present value of expected future cash flows discounted at the loan's effective interest rate, or ateither the loan's observable market price or the fair value of the collateral. Adjustment to impairment losses due to changes in the fair market value of an impaired loan's underlying collateral are included in the provision for losses. Upon dispositionof an impaired loan, any related valuation allowance is reversed through a charge-off to the allowance for loan losses. 

          Large groups of smaller homogenous loans (consumer loans) are collectively evaluated for impairment. Commercial loans and larger balance real estate and other loans are individually evaluatedfor impairment. 

 

          The following tables illustrate the Bank's allowance for loan losses and its problem loans. 

**ANALYSIS OF NON-ACCRUING AND PAST DUE LOANS
 
 
 
 **December 31,**September 30,
 **2000**2000**Non-accruing Loans
 
 
  Construction
$       245,107
$       211,769
  First Mortgage
3,101,544
3,204,748
  Second Mortgage
303,745
182,759
  Consumer
359,013
121,057
   Total non-accruing loans
$    4,009,409
$     3,720,333
 
 
 **Past Due Loans
 
 
  Real estate
-
-
  Construction
-
-
  Mortgage
-
-
  Consumer
-
-
   Total past due loans
-
-
 
 
 **Total non-accruing and past-due loans
$    4,009,409
$    3,720,333
 
 
 
Percentage of total loans
1.97%
1.90%
 
 
 
Real estate acquired through foreclosure
$       734,400
$       314,338
 
 
 **Total non-accruing, past due loans, and

 non-performing assets
$    4,743,809
$    4,034,671

 

 

 

 

 

**ANALYSIS OF ALLOWNACE FOR LOAN LOSSES
 
 
 
 **Three Months Ended

December 31,**Year Ended

September 30,
 **2000**2000
 
 
 
Beginning Balance
2,364,704
1,235,566
Loans charged-off
 
 
   Real estate construction
7,639
-
   Real estate mortgage
9,920
540,371
   Consumer and other
35,333
1,112,939
      Totalcharge-offs
52,892
1,653,310
 
 
 
Recoveries:
 
 
   Real estate construction
-
-
   Real estate mortgage
8,575
11,344
   Consumer and other
9,937
131,104
     Total recoveries
18,512
142,448
 
 
 
Net charge-offs
34,380
1,510,862
 
 
 
Provision charged to operations
210,000
2,640,000
 
 
 
Balance at end of period
2,540,324
2,364,704
 
 
 
Ratio of net charge-offs to average   loans outstanding
0.02%
0.77%

 

 

LIABILITIES

          Deposits have decreased $3,216,726, or 1.50%, for the three-month period ended December 31, 2000. This decrease is the result of approximately $9 million in maturing certificates of depositduring the quarter. First Georgia has continued to be successful in its efforts to obtain new deposit business. With the increase of loan balances, the Bank increased its position in Federal Home Loan Bank advances, as evidenced by the increase of$1,000,000, or 40%. Additionally, the Bank increased its Federal funds purchased line by $2,800,000 from September 30, 2000 in an effort to fund new loan growth. Accrued expenses and other liabilities increased $1,294,531, or 82.79% for the quarter endedDecember 31, 2000. This increase is attributable to approximately $814,000 increase in the official checks account and approximately $413,000 increase in the taxes payable account during the three-month period.

 

PART II

ITEM 6.	EXHIBITS AND REPORTS ON FORM 8K

A.  Exhibits. 

     The following exhibit is filed with this report.

                 Exhibit No.	      Description
	          27.1   	       Financial Data Schedule (for SEC use only)

B.  Reports on Form 8-K

     The Bank filed no reports on Form 8-K for the quarter ended 

     December 31, 2000.

 

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Date:     February 05, 2001

By: */s/*  G. Fred Coolidge III

            Secretary and Treasurer******************************************************************************************************