Georgia-Carolina Bancshares Announces Increase in Net Profit in Fourth Quarter 2010

AUGUSTA, Ga., Jan. 26, 2011 /PRNewswire/ -- Georgia-Carolina Bancshares, Inc. (OTC Bulletin Board: GECR), a bank holding company and parent company of First Bank of Georgia, reported today net income of $1,498,000 ($.42 per diluted common share) for the three months ended December 31, 2010, compared to $964,000 ($.27 per diluted common share) for the three months ended December 31, 2009.  Net income for the twelve months ended December 31, 2010 totaled $1,533,000 ($.44 per diluted common share) as compared to net income for the twelve months ended December 31, 2009 of $3,752,000 ($1.07 per diluted common share).  Book value per share of common stock increased to $12.72 at December 31, 2010 from $12.37 at December 31, 2009.

Remer Y. Brinson, III, President & CEO of the Company, stated, "We are pleased to report strong earnings in the fourth quarter of 2010 and annual earnings of $1,533,000.  While our 2010 annual earnings are lower than 2009, due primarily to significant additions we provided to our provision for loan losses, we feel well positioned for 2011.  During the year, we have increased our allowance for loan losses by $2.8 million, while reducing foreclosed real estate by $1.7 million.  As of December 31, 2010, our allowance for loan loss reserve totals 2.48% of loans, excluding loans held for sale, up from 1.51% at December 31, 2009."

Total assets increased to $495.3 million at December 31, 2010 compared to $484.0 million at December 31, 2009.  Total gross loans declined 8.0% during the year and totaled $363.4 million at December 31, 2010.  Total deposits grew 2.3% during the same period and totaled $414.7 million at the end of the year.

Brinson continued, "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)."

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.

SOURCE Georgia-Carolina Bancshares, Inc.