Georgia-Carolina Bancshares Announces Increases in 2009 Fourth Quarter and Annual Net Income

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.

SOURCE Georgia-Carolina Bancshares, Inc.