Georgia-Carolina Bancshares Announces Increase in 2010 First Quarter Net Income
PR Newswire - Apr 28 at 13:08
Company Symbols: NASDAQ-OTCBB:GECR
AUGUSTA, Ga., April 28 /PRNewswire-FirstCall/ -- Georgia-Carolina Bancshares, Inc. (OTC Bulletin Board: GECR), parent company of First Bank of Georgia, reported today that quarterly net income increased 112% to $838,000 ($.24 per diluted common share) for the three months ended March 31, 2010, compared to $395,000 ($.11 per diluted common share) for the three months ended March 31, 2009. This represents a 7.52% return on average equity (annualized). Book value grew 10.9% over the past twelve months and totaled $12.62 per common share at March 31, 2010.
Remer Y. Brinson III, President & CEO of the Company, stated, &;We are pleased to report a substantial increase in our net income for the first quarter of 2010 when compared to the first quarter of 2009. This increase in net income can be attributed primarily to increased net interest income. The first quarter of 2009 reflected reduced net interest margins due to the rapid reduction of interest rates by the Federal Reserve. During the remaining quarters of 2009 and the first quarter of 2010, we have been able to manage our net interest margin to a more historic level.&; Brinson continued, &;This increased net income was achieved despite an increase in our loan loss provision. The provision for loan losses for the first quarter of 2010 totaled $1,086,000 compared to $627,000 for the first quarter of 2009. Asset quality continues to be a primary focus in this weakened economy and we continue to maintain a healthy loan loss reserve of 1.54% of loans at March 31, 2010.&;
&;Total assets declined slightly to $480 million since 2009 year-end primarily due to a reduction in mortgage loans held for sale. Bank loan and deposit growth were flat during the first quarter of 2010,&; Brinson stated.
Brinson further announced that First Bank Board Chair, A. Montague Miller, has asked to step down as Board Chair following the annual meeting of shareholders scheduled for May 24, 2010. Due to Miller&;s planned retirement from the Bank Board in May 2011, this would allow him to serve on the Board with the newly elected Chair for the next year.
Miller has expressed a genuine interest in remaining on the Board of Directors and continuing his committee assignments. Miller would also continue to serve on the Board of Directors of Georgia-Carolina Bancshares.
According to Brinson, First Bank board member, William D. &;Will&; McKnight, will be nominated to follow Miller as Board Chair.
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 Richmond County (Augusta), Columbia County, and McDuffie County (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)
March 31, December 31,
Cash and due from banks $ 27,490 $ 13,055
Federal funds sold - 3,175
Securities available-for-sale 56,284 44,461
Loans, net of allowance for loan losses of $5,245 and
$5,072, respectively 334,536 331,777
Loans, held for sale 30,174 58,135
Bank premises and fixed assets 9,542 9,654
Accrued interest receivable 1,855 1,851
Foreclosed real estate, net of allowance 3,873 4,466
Deferred tax asset, net 1,206 1,018
Federal Home Loan Bank stock 2,828 2,828
Bank-owned life insurance 8,897 8,812
Other assets 3,696 4,781
Total assets $ 480,381 $ 484,013
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing $ 43,158 $ 41,787
NOW accounts 38,495 36,395
Savings 52,003 51,424
Money market accounts 19,319 19,232
Time deposits of $100,000, and over 170,448 179,123
Other time deposits 80,347 77,279
Total deposits 403,770 405,240
Federal funds purchased - -
Federal Home Loan Bank borrowings - 3,600
Repurchase agreements 3,896 3,697
Current portion of long-term debt - -
Long-term debt 25,000 25,000
Other liabilities, borrowings, and retail deposit
agreements 3,465 3,203
Total liabilities 436,131 440,740
Preferred stock, par value $.001; 1,000,000 shares
none issued - -
Common stock, par value $.001; 9,000,000 shares
3,506,255 and 3,499,477 shares issued and
outstanding 4 4
Additional paid-in-capital 15,634 15,567
Retained Earnings 28,193 27,355
Accumulated other comprehensive income 419 347
Total shareholders' equity 44,250 43,273
Total liabilities and
shareholders' equity $ 480,381 $ 484,013
GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
Three Months Ended
Interest income 2010 2009
Interest and fees on loans $ 5,552 $ 5,105
Interest on taxable securities 395 568
Interest on nontaxable securities 97 105
Interest on Federal funds sold and other interest 7 2
Total interest income 6,051 5,780
Interest on time deposits of $100,000 or more 936 1,507
Interest on other deposits 722 868
Interest on funds purchased and other borrowings 223 272
Total interest expense 1,881 2,647
Net interest income 4,170 3,133
Provision for loan losses 1,086 627
Net interest income after provision for loan losses 3,084 2,506
Service charges on deposits 343 335
Gain on sale of mortgage loans 2,419 1,895
Other income/loss 267 402
Total noninterest income 3,029 2,632
Salaries and employee benefits 3,052 2,891
Occupancy expenses 378 382
Other expenses 1,655 1,378
Total noninterest expense 5,085 4,651
Income before income taxes 1,028 487
Income tax expense 190 92
Net income $ 838 $ 395
Net income per share of common stock
Basic $ 0.24 $ 0.11
Diluted $ 0.24 $ 0.11
Dividends per share of common stock $ - $ -
SOURCE Georgia-Carolina Bancshares, Inc.