Georgia-Carolina Bancshares Exceeds $500 Million in Total Assets and Increases 2011 First Quarter Net Income

AUGUSTA, Ga., April 27, 2011 /PRNewswire/ -- Georgia-Carolina Bancshares, Inc. (GECR.OB), parent company of First Bank of Georgia, reported today that quarterly net income increased 66.0% to $1,391,000 ($0.39 per diluted common share) for the three months ended March 31, 2011, compared to $838,000 ($0.24 per diluted common share) for the three months ended March 31, 2010. This represents a 12.20% return on average equity (annualized). Book value totaled $13.05 per common share at March 31, 2011.

Remer Y. Brinson III, President & CEO of the Company, stated, "We are pleased to report a substantial increase in our net income for the first quarter of 2011 when compared to the first quarter of 2010. This increase in net income can be attributed primarily to a reduction in our provision for loan losses and a reduction in non-interest expense. However, asset quality continues to be a primary focus in this weakened economy and we continue to maintain a healthy allowance for loan losses of 2.29% of loans at March 31, 2011.  The ratio of the allowance for loan losses to loans was 1.54% one year ago."

"Total assets grew 3.1% to $510.7 million since the 2010 year-end. Bank loans grew 2.1% to $323.6 million, while mortgage loans held for sale declined 66.7% to $15.5 million during the first quarter. Total deposits grew $14.0 million or 3.4% since the 2010 year end," Brinson continued.

"During the past decade, the Company has continued to grow in assets and deposits as we have served the citizens in our market. During the past three years, throughout this troubled economic period, we have continued to remain profitable and gain customers and market share. We have also remained 'well-capitalized' by regulatory standards and continue to strengthen our capital ratios," Brinson stated.

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.

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.