Georgia-Carolina Bancshares Announces Net Profit in Third Quarter 2010

AUGUSTA, Ga., Oct. 27 /PRNewswire-FirstCall/ -- Georgia-Carolina Bancshares, Inc. (OTC Bulletin Board: GECR), parent company of First Bank of Georgia reported today a net profit of $1,103,000, or $.31 per diluted common share, for the three months ended September 30, 2010, compared to a net profit of $1,494,000, or $.43 per diluted common share, for the three months ended September 30, 2009.  The Company reported a net profit of $35,000 for the nine months ended September 30, 2010, or $.01 per diluted common share, compared to a net profit of $2,788,000, or $.80 per diluted common share, for the nine months ended September 30, 2009.  Book value totaled $12.48 per common share at September 30, 2010, compared to book value of $12.19 per common share at September 30, 2009.

Net interest income for the nine months ended September 30, 2010 totaled $12,911,000, a 21.9% increase over the $10,589,000 earned during the first nine months of 2009.  Non-interest income decreased 7.5% for the nine months ended September 30, 2010 to $9,790,000 compared to $10,582,000 for the nine months ended September 30, 2009.  This decline in non-interest income is due to a non-recurring gain on sale of foreclosed real estate in 2009.  Non-interest expense increased 2.2% to $15,788,000 for the nine months ended September 30, 2009 compared to $15,452,000 for the nine months ended September 30, 2009.  Total assets declined $13.4 million to $470.6 million since the 2009 year-end.  Total net loans, excluding loans held for sale, declined 6.3% during the nine months ended September 30, 2010 to $310.8 million, and deposits decreased 2.9% over the same time period to $393.3 million.

Remer Y. Brinson III, President & CEO of the Company, stated, "We are very pleased with our net income of $1.1 million in the third quarter of 2010.  These earnings have restored us to a profitable level year to date.  During the first nine months of 2010, we have significantly increased our allowance for loan losses, charged down non-performing loans and reduced foreclosed real estate."

"For the first nine months of 2010, our provision for loan losses totaled $7,433,000, compared to $1,910,000 for the first nine months of 2009.  Asset quality is always a primary focus, but especially in the current economic environment.  Overall, we have significantly reduced non-performing assets in 2010 by $1.7 million, or 15.8%."

"Our core earnings, however, remain strong as does our capital position," Brinson continued.  "All of our capital ratios are well above regulatory guidelines for 'well-capitalized' banks."

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.