AUGUSTA, Ga., July 28 /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 3.8% to $899,000 ($.26 per diluted common share) for the three months ended June 30, 2009, up from $866,000 ($.25 per diluted common share) for the three months ended June 30, 2008. Book value per share of common stock was $11.63.
Remer Y. Brinson III, President & CEO of the Company, stated, "We are pleased to report a 3.8% increase in our second quarter net income when compared to 2008, especially in light of the current economic conditions. Both our net interest income and non-interest income showed solid growth. This increase in net income was also achieved in spite of a $642,000 increase in our provision for loan losses and a $279,000 increase in FDIC insurance expense." The Federal Deposit Insurance Corporation (FDIC) has increased assessment charges to all insured depositories and announced a special assessment payable September 30, 2009. This special assessment for First Bank of Georgia is estimated to be $214,000 and this amount was expensed during the second quarter.
Net income for the first half of 2009 totaled $1,294,000 ($.37 per diluted share), down 20.0% from the $1,618,000 ($.46 per diluted share) reported for the first half of 2008. "We are also pleased with our year to date performance, despite the reduction in year to year earnings," Brinson continued. "We increased our provision for loan losses by over $1 million when compared to 2008 due to the continued weakness in the economy; and due to the increased assessment charges to all insured depositories, our FDIC assessment increased by $346,000, from $157,000 for the first six months of 2008 to $503,000 for the first half of 2009."
During the first half of 2009, assets grew 5.9% from $461 million at December 31, 2008 to $488 million at June 30, 2009. Deposits also grew 5.9% from $377 million at December 31, 2008 to $399 million at June 30, 2009.
"Asset quality is always a primary focus, but especially in the current economic environment," Brinson stated. "Although we have seen a slight decline in other real estate owned during the first half of 2009, we have continued to increase our allowance for loan losses. Net charge-offs totaled .23% of average loans, annualized, compared to .14% for the first half of 2008. We attribute these relatively low levels of charge-offs to the fact that most of our loans are invested in the local Augusta economy, our conservative management style and our local management and ownership," Brinson continued.
"In addition, we remain 'well-capitalized' by regulatory standards, all of our regulatory capital ratios improved during the quarter, and we have elected not to apply for capital funds through the U.S. Treasury Troubled Asset Relief Program (TARP)."
During the first quarter, First Bank of Georgia celebrated the 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.
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)
June 30, December 31,
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2009 2008
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ASSETS
Cash and due from banks $15,983 $9,954
Federal funds sold 1,475 -
Securities available-for-sale 48,304 57,594
Loans, net of allowance for loan
losses of $5,142 and $4,284, respectively 331,510 332,009
Loans, held for sale 58,319 28,402
Bank premises and fixed assets 9,869 10,081
Accrued interest receivable 1,761 1,934
Foreclosed real estate, net of
allowance 6,936 7,217
Deferred tax asset, net 1,212 996
Federal Home Loan Bank stock 2,828 2,201
Bank-owned life insurance 8,572 8,402
Other assets 1,412 2,038
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Total assets $488,181 $460,828
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LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Non-interest bearing $36,748 $34,121
Interest-bearing:
NOW accounts 38,456 37,373
Savings 50,810 55,426
Money market accounts 9,114 9,772
Time deposits of $100,000, and
over 187,667 170,878
Other time deposits 76,605 69,439
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Total deposits 399,400 377,009
Other liabilities, borrowings, and
retail deposit agreements 48,253 44,735
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Total liabilities 447,653 421,744
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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; 3,483,586 and
3,456,816 shares issued and outstanding 4 4
Additional paid-in-capital 15,438 15,268
Retained Earnings 24,898 23,604
Accumulated other comprehensive income 188 208
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Total shareholders'
equity 40,528 39,084
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Total liabilities and
shareholders' equity $488,181 $460,828
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