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

Jan 27, 2010, 14:49 ET from Georgia-Carolina Bancshares, Inc.

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.

GEORGIA-CAROLINA BANCSHARES, INC.

Consolidated Balance Sheets

(dollars in thousands)

December 31,

December 31,

2009

2008

ASSETS

Cash and due from banks

$                 13,055

$                   9,954

Federal funds sold

3,175

-

Securities available-for-sale

44,461

57,594

Loans, net of allowance for loan losses of $5,072 and $4,284, respectively

331,777

332,009

Loans, held for sale

58,135

28,402

Bank premises and fixed assets

9,654

10,081

Accrued interest receivable

1,851

1,934

Foreclosed real estate, net of allowance

4,466

7,217

Deferred tax asset, net

1,018

996

Federal Home Loan Bank stock

2,828

2,201

Bank-owned life insurance

8,812

8,402

Other assets

4,781

2,038

Total assets

$               484,013

$               460,828

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non-interest bearing

$                 41,787

$                 34,121

Interest-bearing:

NOW accounts

36,395

37,373

Savings

51,424

55,426

Money market accounts

19,232

9,772

Time deposits of $100,000, and over

179,123

170,878

Other time deposits

77,279

69,439

Total deposits

405,240

377,009

Federal funds purchased

-

1,148

Federal Home Loan Bank borrowings

3,600

6,000

Repurchase agreements

3,697

8,611

Current portion of long-term debt

-

100

Long-term debt

25,000

25,400

Other liabilities, borrowings, and retail deposit agreements

3,203

3,476

Total liabilities

440,740

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; 3,499,477 and 3,456,816 shares issued and outstanding

4

4

Additional paid-in-capital

15,567

15,268

Retained Earnings

27,355

23,604

Accumulated other comprehensive income

347

208

Total shareholders' equity

43,273

39,084

Total liabilities and shareholders' equity

$               484,013

$               460,828

GEORGIA-CAROLINA BANCSHARES, INC.

Consolidated Statements of Income

(dollars in thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

Interest income

2009

2008

2009

2008

Interest and fees on loans

$               5,877

$               5,347

$             22,260

$             23,186

Interest on taxable securities

406

662

1,925

2,763

Interest on nontaxable securities

101

105

412

337

Interest on Federal funds sold and other interest

1

9

7

85

Total interest income

6,385

6,123

24,604

26,371

Interest expense

Interest on time deposits of $100,000 or more

1,078

1,552

5,415

6,414

Interest on other deposits

782

1,018

3,330

5,536

Interest on funds purchased and other borrowings

232

277

977

1,088

Total interest expense

2,092

2,847

9,722

13,038

Net interest income

4,293

3,276

14,882

13,333

Provision for loan losses

1,172

730

3,082

1,456

Net interest income after provision for loan losses

3,121

2,546

11,800

11,877

Noninterest income

Service charges on deposits

406

351

1,496

1,338

Other income/loss

584

292

2,926

1,430

Gain on sale of mortgage loans

2,585

1,595

9,735

7,152

Total noninterest income

3,575

2,238

14,157

9,920

Noninterest expense

Salaries and employee benefits

3,349

2,642

12,776

10,958

Occupancy expenses

386

378

1,516

1,546

Other expenses

1,715

1,451

6,610

5,241

Total noninterest expense

5,450

4,471

20,902

17,745

Income before income taxes

1,246

313

5,055

4,052

Income tax expense

282

97

1,303

1,252

Net income

$                  964

$                  216

$               3,752

$               2,800

Net income per share of common stock

Basic

$                 0.28

$                 0.06

$                 1.08

$                 0.82

Diluted

$                 0.27

$                 0.06

$                 1.07

$                 0.80

Dividends per share of common stock

$                      -

$                      -

$                      -

$                      -

SOURCE Georgia-Carolina Bancshares, Inc.