Hank's Small Banks

[10 bagger]

GECR,, $6.94

Nice little bank with growth and a good balance sheet.. Have been buying and selling but have decided to accumulate here,, Long at present 1194 shares.. hank

http://www.firstbankofga.com/

Georgia-Carolina Bancshares, Inc. is a one-bank holding company that owns 100% of First Bank of Georgia (the Bank), an independent, locally owned state-chartered commercial bank. The Bank operates three branch offices in Augusta, Georgia, two branch offices in Martinez, Georgia and one branch office in Thomson, Georgia. The Bank offers a range of deposit and lending services and is a member of an electronic banking network that enables its customers to use the automated teller machines of other financial institutions. In addition, the Bank offers commercial and business credit services, as well as various consumer credit services, including home mortgage loans, automobile loans, lines of credit, home equity loans and home improvement loans. The Bank also operates First Bank Mortgage (the Mortgage Division). The Bank's financial services division offers financial planning and investment services through its relationship with Linsco/Private Ledger, an independent brokerage firms.

AUGUSTA, Ga., Oct. 27 /PRNewswire-FirstCall/ -- Georgia-Carolina Bancshares, Inc. (OTC Bulletin Board: GECR - News), a bank holding company and parent company of First Bank of Georgia, reported today that net income increased 54.7% to $1,494,000 ($.43 per diluted common share) for the three months ended September 30, 2009, up from $966,000 ($.28 per diluted common share) for the three months ended September 30, 2008. Net income for the nine months ended September 30, 2009 increased $204,000 or 7.9% over the nine month period ended September 30, 2008. Book value per share of common stock increased to $12.19 at September 30, 2009.

Remer Y. Brinson III, President & CEO of the Company, stated, "We are pleased to report a substantial increase in our third quarter net income, when compared to the third quarter of 2008, and in net income for the nine months ended September 30, 2009, when compared to the same period in 2008. This increase in both quarterly and year-to-date net income has been achieved despite sizeable challenges in the local and national economy, increased allocations to our loan loss reserve and increased regulatory assessments."

"The increase in net income resulted in a return on average equity of 14.06% for the quarter ended September 30, 2009 compared to 10.08% for the third quarter last year. Net interest income for the quarter increased by $428,000 over last year as earning assets grew approximately $25 million in the past twelve months. In addition, increased originations in our mortgage division, gains from the sale of other real estate owned, and tight expense control further boosted our profitability," Brinson continued.

The increase in net income to $2.79 million for the nine months ended September 30, 2009, has been achieved despite FDIC assessments increasing by $504,000 and allocations to the loan loss reserve increasing by $1,184,000, when compared to the first nine months of 2008. "We are very pleased to have exceeded last year's performance in the face of these unprecedented expense increases," Brinson said.

"Asset quality remains a primary focus," Brinson stated. "Our loan loss reserve remains sound at 1.59% of loans, excluding loans held for sale. Also, we have reduced other real estate owned by over $2 million since the beginning of the year. Annualized charge-offs year to date have totaled 0.28% of loans, which is higher than historical levels, but below industry averages."

Total loans grew $24.6 million, or 9.0%, on an annualized basis, during the first nine months of 2009. Total deposits grew $19.6 million, or 6.9%, on an annualized basis, during the same period. "This growth in both loans and deposits during the first nine months of 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 quarter, all accomplished without electing to apply for capital funds through the U.S. Treasury Troubled Asset Relief Program (TARP)."

During the first quarter, 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)

September 30, December 31,
------------- ------------
2009 2008
---- ----
ASSETS

Cash and due from banks $14,169 $9,954
Federal funds sold 1,675 -
Securities available-for-sale 47,157 57,594
Loans, net of allowance for loan losses
of $5,470 and 4284, respectively 339,538 332,009
Loans, held for sale 44,267 28,402
Bank premises and fixed assets 9,760 10,081
Accrued interest receivable 1,905 1,934
Foreclosed real estate, net of allowance 5,142 7,217
Deferred tax asset, net 1,107 996
Federal Home Loan Bank stock 2,828 2,201
Bank-owned life insurance 8,738 8,402
Other assets 1,495 2,038
----- -----

Total assets $477,781 $460,828
======== ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
Non-interest bearing $38,151 $34,121
Interest-bearing:
NOW accounts 34,114 37,373
Savings 55,026 55,426
Money market accounts 15,005 9,772
Time deposits of $100,000, and over 176,474 170,878
Other time deposits 77,791 69,439
------ ------
Total deposits 396,561 377,009

Other liabilities, borrowings, and retail
deposit agreements 38,622 44,735
------ ------

Total liabilities 435,183 421,744
------- -------

Shareholders' equity
Preferred stock, par value $.001;
1,000,000 shares authorized; none issued - -
Common stock, par value $.001; 9,000,000
shares authorized; shares issued and
3,493,179 and 3,456,816 outstanding 4 4
Additional paid-in-capital 15,523 15,268
Retained Earnings 26,392 23,604
Accumulated other comprehensive income 679 208
--- ---
Total shareholders' equity 42,598 39,084
------ ------
Total liabilities and shareholders'
equity $477,781 $460,828
======== ========



GEORGIA-CAROLINA BANCSHARES, INC.

Consolidated Statements of Income
(dollars in thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
Interest income 2009 2008 2009 2008
---- ---- ---- ----
Interest and fees on loans $5,727 $5,668 $16,383 $17,839
Interest on taxable
securities 452 673 1,519 2,101
Interest on nontaxable
securities 103 84 311 232
Interest on Federal funds
sold and other interest 3 20 6 76
- -- - --
Total interest income 6,285 6,445 18,219 20,248
----- ----- ------ ------

Interest expense
Interest on time deposits of
$100,000 or more 1,342 1,447 4,337 4,862
Interest on other deposits 828 1,236 2,548 4,518
Interest on funds purchased
and other borrowings 229 304 745 811
--- --- --- ---
Total interest expense 2,399 2,987 7,630 10,191
----- ----- ----- ------

Net interest income 3,886 3,458 10,589 10,057

Provision for loan losses 670 518 1,910 726
--- --- ----- ---

Net interest income after
provision for loan losses 3,216 2,940 8,679 9,331
----- ----- ----- -----

Noninterest income
Service charges on deposits 392 363 1,090 987
Other income/loss 1,325 658 2,342 1,138
Gain on sale of mortgage
loans 2,506 1,820 7,150 5,557
----- ----- ----- -----
Total noninterest income 4,223 2,841 10,582 7,682
----- ----- ------ -----

Noninterest expense
Salaries and employee
benefits 3,287 2,731 9,427 8,316
Occupancy expenses 382 418 1,130 1,168
Other expenses 1,696 1,280 4,895 3,790
----- ----- ----- -----
Total noninterest expense 5,365 4,429 15,452 13,274
----- ----- ------ ------

Income before income taxes 2,074 1,352 3,809 3,739
----- ----- ----- -----

Income tax expense 580 386 1,021 1,155
--- --- ----- -----

Net income $1,494 $966 $2,788 $2,584
====== ==== ====== ======


Net income per share of
common stock
Basic $0.43 $0.29 $0.80 $0.76
===== ===== ===== =====
Diluted $0.43 $0.28 $0.80 $0.74
===== ===== ===== =====
Dividends per share of common
stock $- $- $- $-
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