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8-K - FORM 8-K - Georgia-Carolina Bancshares, Incgecr_8k-013013.htm
Exhibit 99.1
 
For Immediate Release

GEORGIA-CAROLINA BANCSHARES ANNOUNCES
RECORD ANNUAL EARNINGS

January 30, 2013
Augusta, Georgia

Georgia-Carolina Bancshares, Inc. (GECR.OB) (the “Company”), parent company of First Bank of Georgia, today  reported  net income of $6,621,000, or $1.84 per diluted common share, for the twelve months ended December 31, 2012, compared to net income of $4,099,000, or $1.15 per diluted common share, for the twelve months ended December 31, 2011. The Company reported that net income totaled $1,392,000, or $0.39 per diluted common share, for the three months ended December 31, 2012, compared to net income of $938,000, or $0.26 per diluted common share, for the three months ended December 31, 2011.

Book value increased $1.92 during the year and totaled $15.96 per common share at December 31, 2012, compared to book value of $14.04 per common share at December 31, 2011.  Reported earnings represent a 12.16% return on average equity and a 1.34% return on average assets for the twelve months ended December 31, 2012.

Remer Y. Brinson III, President & CEO of the Company, stated “We have reported very strong earnings performance in 2012 as evidenced by our increased quarterly and year to date income, when compared to the same periods last year. Our results reflect increased net interest income and sizeable increases in mortgage origination income.  During the year, we recorded less in loan loss provision expense and more in other real estate valuation expense when compared to 2011.  This is the result of the movement of non-performing loans to other real estate owned and then to liquidation.  During 2012, we had $5.2 million in additions to other real estate owned while reductions and liquidations for the year totaled $6.3 million.”

“Total non-performing assets have continued to decline and now represent 1.93% of assets, compared to 2.99% at December 31, 2011.  Net charge offs  also declined to $245,000 or  .09% of net average loans for the twelve months ended December 31, 2012, as compared to $2,789,000 or .90% of average loans for the twelve months ended December 31, 2011.”

Brinson continued, “Despite our strong performance in 2012, we continue to experience a relatively weak economy. Loan demand remains soft and the sustainability of the strong mortgage origination volume is uncertain.  However, we continue to provide a high level of customer service while maintaining strong expense control.  Our capital ratios are very strong which enabled us to offer the payment of quarterly cash dividends to shareholders in 2012.”

Total assets increased 2.62% to $506.2 million since December 31, 2011.  Total loans, excluding loans held for sale, declined 6.9% during the twelve months ended December 31, 2012, to $265.8 million.  However, loans held for sale increased 7.1% since year end 2011, reflecting the increased mortgage origination volume.  For the twelve months ended December 31, 2012, total deposits increased 1.35% to $417 million, including core deposit growth of 15.9%.  Core deposits totaled $247.6 million at December 31, 2012.

First Bank of Georgia has previously announced plans to open a new branch office in Evans, Georgia, which will represent our seventh branch location. This office is projected to open in the first half of 2013.

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.
 
 
 

 

GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Balance Sheets
(dollars in thousands)

   
December 31,
   
December 31,
 
   
2012
   
2011
 
ASSETS
           
             
Cash and due from banks
  $ 30,279     $ 34,902  
Securities available-for-sale
    132,760       100,283  
Loans
    265,831       285,614  
Allowance for loan losses
    (5,954 )     (6,804 )
Loans, held for sale
    48,432       45,227  
Bank premises and fixed assets
    8,790       8,979  
Accrued interest receivable
    1,772       1,732  
Other real estate owned, net of allowance
    5,876       6,990  
Federal Home Loan Bank stock
    1,865       2,070  
Bank-owned life insurance
    10,001       9,609  
Other assets
    6,523       4,650  
                 
Total assets   $ 506,175     $ 493,252  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Deposits
               
Non-interest bearing   $ 70,880     $ 52,735  
Interest-bearing:                
NOW accounts     57,482       44,646  
Savings     64,236       63,210  
Money market accounts     54,982       52,981  
Time deposits of $100,000, and over     111,537       134,655  
Other time deposits     57,839       63,168  
Total deposits     416,956       411,395  
                 
Federal Home Loan Bank and other borrowings
    25,028       25,000  
Repurchase agreements
    3,333       3,565  
Other liabilities
    4,533       2,847  
                 
Total liabilities     449,850       442,807  
                 
Shareholders' equity
               
Preferred stock, par value $.001; 1,000,000 shares authorized; none issued
    -       -  
Common stock, par value $.001; 9,000,000 shares authorized; 3,528,296 and 3,592,140 shares issued and outstanding
    4       4  
Additional paid-in-capital     15,687       16,301  
Retained earnings     39,177       32,988  
Accumulated other comprehensive income     1,457       1,152  
Total shareholders' equity     56,325       50,445  
Total liabilities and shareholders' equity   $ 506,175     $ 493,252  
 
 
 

 
 
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
 
2012
   
2011
   
2012
   
2011
 
Interest and fees on loans   $ 4,265     $ 4,786     $ 18,019     $ 19,624  
Interest on taxable securities     504       472       2,046       2,208  
Interest on nontaxable securities     104       105       439       403  
Interest on Federal funds sold and other interest     14       16       65       88  
Total interest income     4,887       5,379       20,569       22,323  
                                 
Interest expense
                               
Interest on time deposits of $100,000 or more     325       514       1,600       2,523  
Interest on other deposits     315       422       1,403       2,156  
Interest on funds purchased and other borrowings     9       227       679       1,023  
Total interest expense     649       1,163       3,682       5,702  
                                 
Net interest income
    4,238       4,216       16,887       16,621  
                                 
Provision for loan losses
    (306 )     520       (605 )     1,727  
                                 
Net interest income after provision for loan losses
    4,544       3,696       17,492       14,894  
                                 
                                 
Noninterest income
                               
Service charges on deposits     410       409       1,524       1,531  
Gain on sale of mortgage loans     2,652       2,163       11,376       8,185  
Gain on sale of securities     (116 )     44       (105 )     58  
Other income/loss     467       411       1,858       1,396  
                                 
Total noninterest income     3,413       3,027       14,653       11,170  
                                 
Noninterest expense
                               
Salaries and employee benefits     2,978       2,989       12,329       11,883  
Occupancy expenses     388       385       1,556       1,547  
Other real estate expenses     875       365       2,284       1,084  
Other expenses     2,082       1,616       6,692       5,613  
Total noninterest expense     6,323       5,355       22,861       20,127  
                                 
Income before income taxes
    1,634       1,368       9,284       5,937  
                                 
Income tax expense
    242       430       2,663       1,838  
                                 
Net income
  $ 1,392     $ 938     $ 6,621     $ 4,099  
                                 
                                 
Net income per share of common stock
                               
Basic   $ 0.39     $ 0.26     $ 1.84     $ 1.15  
Diluted   $ 0.39     $ 0.26     $ 1.84     $ 1.15  
                                 
Dividends per share of common stock
  $ 0.04     $ -     $ 0.12     $ -