Edgar Filing: FLAG FINANCIAL CORP

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

SCHEDULE 13D
(RULE 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE
13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a)
(AMENDMENT NO. )*

FLAG FINANCIAL CORPORATION
--------------------------
(Name of Issuer)

COMMON STOCK, PAR VALUE $1.00 PER SHARE
---------------------------------------
(Title of Class of Securities)

33832H107
---------
(CUSIP Number)

MR. WILLIAM H. ANDERSON, II
5444 RIVERSIDE DRIVE
MACON, GEORGIA 31210
(478) 474-0555
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

AUGUST 1, 2003
--------------
(Date of Event Which Requires
Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].

NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter disclosure
provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).

CUSIP NO. 33832H107 Page 2 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

William H. Anderson, II

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF SHARES 7. SOLE VOTING POWER 473,425
---------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
---------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 473,425
---------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
473,425

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.5% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.] +
150,000 warrants + 5,000 options

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 3 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Southern Trust Insurance Company

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

Georgia

NUMBER OF SHARES 7. SOLE VOTING POWER 276,000
---------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
---------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 276,000
---------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
276,000

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

3.3% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*
CO

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 4 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

VHA Partners, LP

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

Georgia

NUMBER OF SHARES 7. SOLE VOTING POWER 9,800
-------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
-------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 9,800
-------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,800

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 5 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Trust FBO William H. Anderson, II

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

Georgia

NUMBER OF SHARES 7. SOLE VOTING POWER 20,000
--------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
--------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 20,000
--------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,000

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.2% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 6 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Richard Batton, Jr.

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF SHARES 7. SOLE VOTING POWER 10,177
--------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
--------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 10,177
--------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,177

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 7 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Estate of Halstead T. Anderson, II

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF SHARES 7. SOLE VOTING POWER 8,000
-------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
-------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 8,000
-------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,000

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 8 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Wayne F. Yost

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,177

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 9 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Stephen H. Shiflett

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,177

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 10 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Eric P. Russett

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,177

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 11 of 19 Pages

1. NAME OF REPORTING PERSON
S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSON

Kay Beliveau

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]

3. SEC USE ONLY

4. SOURCE OF FUNDS*

5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]

6. CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF SHARES 7. SOLE VOTING POWER 4,654
-------------------------------------------
BENEFICIALLY OWNED 8. SHARED VOTING POWER 0
-------------------------------------------
BY EACH REPORTING 9. SOLE DISPOSITIVE POWER 4.654
-------------------------------------------
PERSON WITH 10. SHARED DISPOSITIVE POWER 0

11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,654

12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]

13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

.1% [based upon 8,464,472 shares indicated as outstanding as of
05/08/03 as shown on the Form 10-Q for the quarter ended March 31, 2003.]

14. TYPE OF REPORTING PERSON*

*SEE INSTRUCTIONS BEFORE FILLING OUT!

CUSIP NO. 33832H107 Page 12 of 19 Pages

STATEMENT PURSUANT TO RULE 13d-1
OF THE
GENERAL RULES AND REGULATIONS
UNDER THE
SECURITIES EXCHANGE ACT OF 1934

Item 1. Security and Issuer

This Schedule 13D relates to the common stock, par value $1.00 per
share ("Common Stock"), of Flag Financial Corporation, a Delaware corporation
("Flag Financial" or the "Issuer"). The address of the principal executive
offices of Flag Financial is 101 North Greenwood Street, LaGrange, Georgia
30241.

Item 2. Identity and Background

This Schedule 13D is being jointly filed by William H. Anderson, II,
Southern Trust Insurance Company, VHA Partners, LP, Trust FBO William H.
Anderson, II, Richard Batton, Jr., Estate of Halstead T. Anderson, II, Wayne F.
Yost, Steven H. Shiflett, Eric P. Russett, and Kay Beliveau, (the "Reporting
Persons") pursuant to a Joint Filing Agreement dated August 1, 2003 (the
"Schedule 13D"). The principal place of residence, occupation and citizenship of
the Reporting Persons is as follows:

I. (a) William H. Anderson, II

(b) His business address is:
5444 Riverside Drive
Macon, Georgia 30721

(c) Director of Flag Financial and President and Chief
Executive Officer and Director of Southern Trust
Insurance Company.

(f) Citizen of the United States.

II. (a) Southern Trust Insurance Company

(b) Its business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Organized under the laws of the State of Georgia.

III. (a) VHA Partners, LP

(b) Its business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Organized under the laws of the State of Georgia.

CUSIP NO. 33832H107 Page 13 of 19 Pages

IV. (a) Trust FBO William H. Anderson, II

(b) Its address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Organized under the laws of the State of Georgia.

V. (a) Richard Batton, Jr.

(b) His business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Citizen of the United States.

VI. (a) Estate of Halstead T. Anderson, II

(b) The address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) United States.

VII. (a) Wayne F. Yost

(b) His business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Citizen of the United States.

VIII. (a) Steven H. Shiflett

(b) His business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Citizen of the United States.

IX. (a) Eric P. Russett

(b) His business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Citizen of the United States.

CUSIP NO. 33832H107 Page 14 of 19 Pages

X. (a) Kay Beliveau

(b) Her business address is:
5444 Riverside Drive
Macon, Georgia 30721

(f) Citizen of the United States.

(d) and (e). During the last five years, none of the Reporting Persons
filing this statement has been (a) convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or (b) a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violations with respect to
such laws.

Item 3. Source and Amount of Funds or Other Consideration.

Purchases by William H. Anderson, II were funded through the personal
resources of Mr. Anderson. Purchases by Southern Trust Insurance Company were
funded from the working capital of that company. VHA Partners, LP and the Trust
FBO William H. Anderson, II each used its current cash resources to fund its
purchases. The purchases of Richard Batton, Jr., Estate of Halstead T. Anderson,
II, Wayne F. Yost, Steven H. Shiflett, Eric P. Russett, and Kay Beliveau were
funded by cash provided from the working capital of Southern Trust Corporation
in exchange for the execution of full recourse notes by these persons payable to
Southern Trust Corporation. The shares purchased by the individuals in the
preceding sentence are not pledged as collateral for the loans by Southern Trust
Corporation. The notes are payable by equal payments over a five year period and
bear an interest rate of 4.99%. Southern Trust Corporation is the 100% parent
company of Southern Trust Insurance Company. William H. Anderson, II controls,
through other entities, Southern Trust Corporation.

Item 4. Purpose of Transaction.

The subject shares of Common Stock directly or indirectly acquired are
held by the Reporting Persons for investment purposes. The Reporting Persons
have no plans or proposals relating to any matters specified in paragraphs (a)
through (j) of Item 4 of Schedule 13D. However, the Reporting Persons reserve
the right to adopt such plans or proposals in the future, subject to applicable
regulatory requirements, if any. Depending upon market conditions, an evaluation
of the business and prospects of the Issuer and other factors, the Reporting
Persons or their affiliates may, in their sole discretion, purchase additional
shares of Common Stock or dispose of the subject shares of Common Stock from
time to time in the open market, in privately negotiated transactions or
otherwise, subject to market conditions and other factors.

Item 5. Interest in Securities of the Issuer.

(a) (b) Schedule I hereto sets forth the number of shares of Common
Stock owned of record and which may be deemed to be beneficially owned by each
of the Reporting Persons, and is incorporated herein by this reference.

CUSIP NO. 33832H107 Page 15 of 19 Pages

In the aggregate, the Reporting Persons may be deemed beneficially to
own 526,787 shares of Common Stock, or 6.2% of the 8,546,540 shares deemed
outstanding; consisting of 8,391,540 shares as indicated as outstanding as of
February 21, 2003 in the Issuer's Proxy Statement dated March 7, 2003 and
150,000 shares issuable upon exercise of the warrant and 5,000 shares issuable
upon exercise of options. Each of the Reporting Persons listed in Item 5(a)
hereby expressly declares that the filing of this statement shall not be
construed as an admission that such Reporting Person is, for purposes of Section
13(d) or 13(g) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), the beneficial owner of any of the listed securities, except with respect
to shares of Common Stock for which each Reporting Person has sole voting and
dispositive power unless otherwise stated herein or that the Reporting Persons
are a "group" pursuant to Section 13(d)(3) of the Exchange Act.

(c) The table below sets forth purchases and sales of shares by
the Reporting Person. Unless otherwise indicated, the purchases and sales were
made in the open market.

WILLIAM H. ANDERSON, II

TRUST FBO
---------
DIRECT VHA PARTNERS, LP WILLIAM H. ANDERSON II
DATE OF ------ ---------------- ----------------------
PURCHASE SHARES PRICE SHARES PRICE SHARES PRICE
-------- ------ ----- ------ ----- ------ -----

2/19/02 150,000 warrant $ 1.00
2/19/02 5,000 option
10/25/02 11,000 $11.2252
11/4/02 1,100 $ 11.39 8,800 $ 11.39
11/13/02 1,000 $11.6492
11/14/02 20,000 $11.65
12/23/02 525 $ 11.19
--- ----- ------
Total Shares 12,625 9,800 20,000
Total Option &
Warrant 155,000

SOUTHERN TRUST INSURANCE COMPANY

DATE OF PURCHASE SHARES PRICE
-----------------------------------------------------------------------------

2/19/02 150,000 $ 9.10
-----------------------------------------------------------------------------
8/6/02 12,000 $10.44
-----------------------------------------------------------------------------
8/7/02 8,000 $10.40
-----------------------------------------------------------------------------
8/8/02 15,000 $10.33
-----------------------------------------------------------------------------
8/9/02 5,000 $10.63
-----------------------------------------------------------------------------
8/12/02 5,000 $10.89
-----------------------------------------------------------------------------
8/13/02 10,000 $11.03
-----------------------------------------------------------------------------
8/14/02 7,000 $11.52
-----------------------------------------------------------------------------
8/15/02 2,000 $11.62
-----------------------------------------------------------------------------
8/26/02 900 $10.76
-----------------------------------------------------------------------------

CUSIP NO. 33832H107 Page 16 of 19 Pages

-------------------------------------------------------------------------

8/27/02 3,100 $11.10
----------------------------------------------------------------------
8/28/02 2,000 $11.26
----------------------------------------------------------------------
8/29/02 2,500 $11.36
----------------------------------------------------------------------
8/30/02 2,500 $11.38
----------------------------------------------------------------------
9/3/02 2,000 $11.43
----------------------------------------------------------------------
9/4/02 2,000 $11.52
----------------------------------------------------------------------
9/20/02 1,000 $10.98
----------------------------------------------------------------------
9/26/02 1,500 $10.67
----------------------------------------------------------------------
10/16/02 1,500 $10.76
----------------------------------------------------------------------
10/17/02 1,000 $10.80
----------------------------------------------------------------------
10/29/02 200 $11.20
----------------------------------------------------------------------
11/12/02 500 $11.25
----------------------------------------------------------------------
12/10/02 300 $11.25
----------------------------------------------------------------------
12/23/02 9,000 $11.19
----------------------------------------------------------------------
12/24/02 6,000 $11.19
----------------------------------------------------------------------
2/12/03 2,000 $11.46
----------------------------------------------------------------------
2/13/03 2,000 $11.49
----------------------------------------------------------------------
2/14/03 2,000 $11.50
----------------------------------------------------------------------
2/18/03 2,000 $11.51
----------------------------------------------------------------------
2/20/03 2,000 $11.48
----------------------------------------------------------------------
2/21/03 2,000 $11.47
----------------------------------------------------------------------
2/24/03 2,000 $11.48
----------------------------------------------------------------------
2/25/03 400 $11.67
----------------------------------------------------------------------
2/27/03 6,300 $11.85
----------------------------------------------------------------------
2/28/03 211 $11.85
----------------------------------------------------------------------
3/3/03 5,089 $12.21
----------------------------------------------------------------------
Total Shares 276,000
----------------------------------------------------------------------

RICHARD BATTON, JR.

DATE OF PURCHASE SHARES PRICE
----------------------------------------------------------------------

3/19/02 10,177 $9.83
----------------------------------------------------------------------

ESTATE OF HALSTEAD T. ANDERSON, II

DATE OF PURCHASE/SALE SHARES PRICE
----------------------------------------------------------------------

2,000
----------------------------------------------------------------------
3/19/02 buy 10,177 $ 9.83
----------------------------------------------------------------------
3/22/02 sale 500 $10.20
----------------------------------------------------------------------
4/16/02 sale 1,500 $ 9.95
----------------------------------------------------------------------
10/23/02 sale 2,177 $11.00
----------------------------------------------------------------------
Total Shares 8,000
----------------------------------------------------------------------

CUSIP NO. 33832H107 Page 17 of 19 Pages

WAYNE F. YOST

DATE OF PURCHASE SHARES PRICE
-----------------------------------------------------------------------

3/19/02 10,177 $9.83
-----------------------------------------------------------------------

STEVEN H. SHIFLETT

DATE OF PURCHASE SHARES PRICE
-----------------------------------------------------------------------

3/19/02 10,177 $9.83
-----------------------------------------------------------------------

ERIC P. RUSSETT

DATE OF PURCHASE SHARES PRICE
-----------------------------------------------------------------------

3/19/02 10,177 $9.83
-----------------------------------------------------------------------

KAY BELIVEAU

DATE OF PURCHASE SHARES PRICE
-----------------------------------------------------------------------

8/15/02 4,654 $10.7644
-----------------------------------------------------------------------

(d) Except as provided herein, no other person is known to have
the right to receive or the power to direct the receipt of dividends from, or
the proceeds from the sale of, the securities described above.

(e) Not applicable.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.

There are no contracts, arrangements, understandings or relationships
with respect to the securities of the issuer other than as disclosed in Item 3.
above.

Item 7. Material to be filed as Exhibits.

1. Joint Filing Agreement of Reporting Persons (including powers
of attorney)

CUSIP NO. 33832H107 Page 18 of 19 Pages

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated: August 1, 2003
/s/ William H. Anderson, II
--------------------------------------
WILLIAM H. ANDERSON, II

/s/ Richard Batton, Jr.
--------------------------------------
RICHARD BATTON, JR.

/s/ William H. Anderson, II
--------------------------------------
ESTATE OF HALSTEAD T. ANDERSON, II,
BY WILLIAM H. ANDERSON, II, EXECUTOR

/s/ Wayne F. Yost
--------------------------------------
WAYNE F. YOST

/s/ Steven H. Shiflett
--------------------------------------
STEVEN H. SHIFLETT

/s/ Eric P. Russett
--------------------------------------
ERIC P. RUSSETT

/s/ Kay Beliveau
--------------------------------------
KAY BELIVEAU

SOUTHERN TRUST INSURANCE CORPORATION

By /s/ William H. Anderson, II
-----------------------------------
WILLIAM H. ANDERSON, II,
CHIEF EXECUTIVE OFFICER, PRESIDENT

CUSIP NO. 33832H107 Page 19 of 19 Pages

VHA PARTNERS, LP

By /s/ William H. Anderson, II
-----------------------------------
WILLIAM H. ANDERSON, II,
PRESIDENT OF SANTEE MANAGEMENT
CORPORATION, GENERAL PARTNER

TRUST FBO WILLIAM H. ANDERSON, II

By /s/ William H. Anderson, II
------------------------------------
WILLIAM H. ANDERSON, II, TRUSTEE

* By /s/ William H. Anderson, II
-------------------------------------------
William H. Anderson, II, Power of Attorney

CUSIP NO. 33832H107

SCHEDULE I
----------

Beneficial Percent of Sole Voting and Shared Voting and
Name Ownership(1) Outstanding(2) Dispos. Power Dispos. Power(3)
------------------------------------------------------------------------------------------------------------------------------------

William H. Anderson, II (4) 473,425 5.5% 473,425 0
------------------------------------------------------------------------------------------------------------------------------------
Southern Trust Insurance Company (5) 276,000 3.3% 276,000 0
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VHA Partners, LP (6) 9,800 .1% 9,800 0
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Trust FBO William H. Anderson, III 20,000 .2% 20,000 0
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Richard Batton, Jr. 10,177 .1% 10,177 0
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Estate Halstead T. Anderson, II 8,000 .1% 8,000 0
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Wayne F. Yost 10,177 .1% 10,177 0
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Steven H. Shiflett 10,177 .1% 10,177 0
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Eric P. Russett 10,177 .1% 10,177 0
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Kay Beliveau 4,654 .1% 4,654 0
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(1) Shares of Common Stock which may be deemed to be beneficially owned by
each Reporting Person. The Reporting Persons disclaim beneficial
ownership of certain of these shares, as is more fully set forth in
Item 5 of this schedule.

(2) Based on 8,464,472 shares of Common Stock outstanding as of May 8, 2003
as disclosed in the Issuer's Form 10-Q for the quarter ended March 31,
2003.

CUSIP NO. 33832H107

(3) Shares of Common Stock over which the respective Reporting Person may
be deemed to have shared voting and dispositive power.

(4) Includes 276,000 shares and warrants to purchase 150,000 shares of
Common Stock held by Southern Trust Insurance Company. Mr. William H.
Anderson, II is the President, Chief Executive Officer and Chairman of
the Board of Southern Trust Insurance Company and as a result may have
sole voting and dispositive power with respect to all such shares.
Includes 20,000 shares held by the Trust FBO William H. Anderson, II of
which William H. Anderson, II is the trustee and beneficiary and as a
result may have sole voting and dispositive power with respect to all
such shares held by the trust. Includes 9,800 shares held by VHA
Partners, LP. William H. Anderson, II is the President of Santee
Management Corporation, the general partner of VHA Partners, LP and as
a result may have sole voting and dispositive power with respect to all
such shares held by VHA Partners, LP. Includes 5,000 shares issuable
upon exercise of stock options granted by Flag Financial for services
as a director which options are exercisable within 60 days of this
report. Includes 12,625 shares held directly by William H. Anderson,
II.

(5) Shares held by Southern Trust Insurance Company which is a 100% owned
subsidiary of Southern Trust Corporation, which is a 100% owned
subsidiary of RamBay Corporation, which is controlled by William H.
Anderson, II. RamBay Corporation shares voting and dispositive power
with respect to all such shares.

(6) Santee Management Corporation, the majority general partner of the VHA
Partners, LP, shares voting and dispositive power with respect to all
such shares. Santee Management Corporation is controlled by William H.
Anderson, II.