GEORGIA CAROLINA BANCSHARES INC. 
By AUGUSTA, Ga., Jan. 27 /PRNewswire-FirstCall/ -- Georgia-Carolina Bancshares, Inc. (OTC Bulletin Board: GECR), a bank holding company and parent company of First Bank of Georgia, reported today that net income increased by 346% or $748,000 to $964,000 ($.27 per diluted common share) for the three months ended December 31, 2009, up from $216,000 ($.06 per diluted common share) for the three months ended December 31, 2008. Net income for the twelve months ended December 31, 2009 increased 34% or $952,000 over the twelve months ended December 30, 2008. Net income for the twelve months ended December 31, 2009 totaled $3,752,000 ($1.07 per diluted common share) as compared to net income for the twelve months ended December 31, 2008 of $2,800,000 ($.80 per common share). Book value per share of common stock increased to $12.37 at December 31, 2009 from $11.31 at December 31, 2008.
Remer Y. Brinson III, President & CEO of the Company, stated, "We are pleased to report a substantial increase in both fourth quarter and annual net income, when compared to the corresponding periods of 2008. These increases have been achieved despite sizeable challenges in the local and national economy, increased allocations to our loan loss reserve and increased regulatory deposit assessments."
The increase in net income for the twelve months ended December 31, 2009 was achieved despite allocations to the loan loss reserve increasing by $1,626,000 and FDIC assessments increasing by $563,000 due to an industry-wide increase in assessments for the FDIC Insurance Fund. "We are very pleased to have exceeded last year's performance in the face of these unprecedented expense increases," Brinson added.
"This net income resulted in a return on average equity of 8.93% for the year ended December 31, 2009 compared to 7.36% for 2008," Brinson continued.
"Asset quality remains a primary focus," Brinson stated. "Our loan loss reserve remains sound at 1.51% of loans, excluding loans held for sale. Also, we have reduced other real estate owned by $2.75 million since the beginning of the year. Net charge offs year to date have totaled 0.67% of loans, which is equal to 2008 net charge offs, but below industry averages."
Total gross loans grew $30.3 million, or 8.3% during the year ended December 31, 2009. Total deposits grew $28.2 million, or 7.5% during the same period. "This growth in both loans and deposits during 2009 is a testament to the relative strength of our local economy and our community banking model," Brinson commented.
"In addition, we remain 'well-capitalized' by regulatory standards and all of our regulatory capital ratios improved during the year, all accomplished without electing to apply for capital funds through the U.S. Treasury Troubled Asset Relief Program (TARP)."
During the first quarter of 2009, First Bank of Georgia celebrated its 20 year anniversary of the opening of the Hill Street Office in Thomson, Georgia and the 10 year anniversary of entering the Augusta market with the opening of its Daniel Village Office. In October, the Bank also celebrated the 10 year anniversary of the opening of the West Town Office in Martinez.
Georgia-Carolina Bancshares' common stock is quoted on the OTC Bulletin Board under the symbol GECR. First Bank of Georgia conducts banking operations through offices in Augusta, Columbia County, and Thomson, Georgia and operates mortgage origination offices in Augusta and Savannah, Georgia and Jacksonville, Florida.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which can generally be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans" or similar expressions to identify forward-looking statements, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic and market conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Balance Sheets
(dollars in thousands)
December 31, December 31,
------------ ------------
2009 2008
---- ----
ASSETS
Cash and due from banks $13,055 $9,954
Federal funds sold 3,175 -
Securities available-for-sale 44,461 57,594
Loans, net of allowance for loan losses
of $5,072 and $4,284, respectively 331,777 332,009
Loans, held for sale 58,135 28,402
Bank premises and fixed assets 9,654 10,081
Accrued interest receivable 1,851 1,934
Foreclosed real estate, net of
allowance 4,466 7,217
Deferred tax asset, net 1,018 996
Federal Home Loan Bank stock 2,828 2,201
Bank-owned life insurance 8,812 8,402
Other assets 4,781 2,038
----- -----
Total assets $484,013 $460,828
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing $41,787 $34,121
Interest-bearing:
NOW accounts 36,395 37,373
Savings 51,424 55,426
Money market accounts 19,232 9,772
Time deposits of $100,000, and over 179,123 170,878
Other time deposits 77,279 69,439
------ ------
Total deposits 405,240 377,009
Federal funds purchased - 1,148
Federal Home Loan Bank borrowings 3,600 6,000
Repurchase agreements 3,697 8,611
Current portion of long-term debt - 100
Long-term debt 25,000 25,400
Other liabilities, borrowings, and
retail deposit agreements 3,203 3,476
----- -----
Total liabilities 440,740 421,744
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Shareholders' equity
Preferred stock, par value $.001;
1,000,000 shares authorized; none
issued - -
Common stock, par value $.001;
9,000,000 shares authorized; 3,499,477
and 3,456,816 shares issued and
outstanding 4 4
Additional paid-in-capital 15,567 15,268
Retained Earnings 27,355 23,604
Accumulated other comprehensive income 347 208
--- ---
Total shareholders' equity 43,273 39,084
------ ------
Total liabilities and
shareholders' equity $484,013 $460,828
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GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
Interest income 2009 2008 2009 2008
---- ---- ---- ----
Interest and
fees on loans $5,877 $5,347 $22,260 $23,186
Interest on taxable
securities 406 662 1,925 2,763
Interest on nontaxable
securities 101 105 412 337
Interest on Federal funds
sold and other interest 1 9 7 85
--- --- --- ---
Total interest
income 6,385 6,123 24,604 26,371
----- ----- ------ ------
Interest expense
Interest on time deposits
of $100,000 or more 1,078 1,552 5,415 6,414
Interest on other deposits 782 1,018 3,330 5,536
Interest on funds purchased
and other borrowings 232 277 977 1,088
--- --- --- -----
Total interest
expense 2,092 2,847 9,722 13,038
----- ----- ----- ------
Net interest income 4,293 3,276 14,882 13,333
Provision for loan losses 1,172 730 3,082 1,456
----- --- ----- -----
Net interest income after
provision for loan losses 3,121 2,546 11,800 11,877
----- ----- ------ ------
Noninterest income
Service charges on
deposits 406 351 1,496 1,338
Other income/loss 584 292 2,926 1,430
Gain on sale of mortgage
loans 2,585 1,595 9,735 7,152
----- ----- ----- -----
Total
noninterest
income 3,575 2,238 14,157 9,920
----- ----- ------ -----
Noninterest expense
Salaries and employee
benefits 3,349 2,642 12,776 10,958
Occupancy expenses 386 378 1,516 1,546
Other expenses 1,715 1,451 6,610 5,241
----- ----- ----- -----
Total
noninterest
expense 5,450 4,471 20,902 17,745
----- ----- ------ ------
Income before income taxes 1,246 313 5,055 4,052
----- --- ----- -----
Income tax expense 282 97 1,303 1,252
--- --- ----- -----
Net income $964 $216 $3,752 $2,800
==== ==== ====== ======
Net income per share of
common stock
Basic $0.28 $0.06 $1.08 $0.82
===== ===== ===== =====
Diluted $0.27 $0.06 $1.07 $0.80
===== ===== ===== =====
Dividends per share of
common stock $- $- $- $-
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SOURCE Georgia-Carolina Bancshares, Inc.
