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Georgia-Carolina Bancshares Announces Substantial Increase in Net Income in Third Quarter 2012

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AUGUSTA, Ga., Oct. 24, 2012 (GLOBE NEWSWIRE) -- Georgia-Carolina Bancshares, Inc. (OTCBB:GECR) (the "Company"), parent company of First Bank of Georgia, today reported net income of $2,242,000, or $0.62 per diluted common share, for the three months ended September 30, 2012, compared to net income of $789,000, or $0.22 per diluted common share, for the three months ended September 30, 2011. The Company reported that net income increased 65.4% to $5,229,000, or $1.45 per diluted common share, for the nine months ended September 30, 2012, compared to net income of $3,161,000, or $0.89 per diluted common share for the nine months ended September 30, 2011.

Book value totaled $15.50 per common share at September 30, 2012, as compared to book value of $13.84 per common share at September 30, 2011. Reported earnings represent a 16.07% return on average equity and a 1.79% return on average assets for the three month period ended September 30, 2012, and a 13.29% return on average equity and a 1.41% return on average assets for the nine month period ended September 30, 2012.

Remer Y. Brinson III, President & CEO of the Company, stated, "We continue to enjoy a 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 financials reflect stable net interest income and increases in non-interest income. In 2012, credit related expenses have shifted from loan loss provision expense to other real estate owned expense as we continue to reduce our non-performing loan levels."

"Total non-performing assets have continued to decline and now represent 1.88% of assets, compared to 2.99% at December 31, 2011 and 3.33% at September 30, 2011. Net charge offs have also declined to (0.03)% of net average loans for the nine months ended September 30, 2012 as recoveries have exceeded charge offs for this period. For the first nine months of 2011, net charge offs totaled 0.59% of average loans."

Brinson continued, "Although loan demand remains soft, we have maintained a healthy net-interest margin. Non-interest income has grown over last year due to increased mortgage origination volumes and yields. Closed mortgage loans are up 17.38% in 2012 over last year. We have also seen continued reduction in our provision for loan losses, charge offs and non-performing assets."

Total assets have increased 4.57% to $515.8 million since December 31, 2011. Total loans, excluding loans held for sale, declined 4.59% during the nine month period ended September, 2012 to $272.5 million. However, loans held for sale have increased 22.22% since year end 2011 reflecting the increased mortgage origination volume. For the nine months ended September 30, 2012, total deposits have increased 3.37% to $425.2 million, including core deposit growth of 17.59%.  Core deposits totaled $251.1 million at September 30, 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 quarter 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)
     
  September 30,  December 31,
  2012 2011
ASSETS    
     
Cash and due from banks  $ 50,109  $ 34,902
Securities available-for-sale  107,420  100,283
Loans  272,506  285,614
Allowance for loan losses  (6,557)  (6,804)
Loans, held for sale  55,276  45,227
Bank premises and fixed assets  8,774  8,979
Accrued interest receivable  1,754  1,732
Other real estate owned, net of allowance  7,158  6,990
Federal Home Loan Bank stock  1,865  2,070
Bank-owned life insurance  9,913  9,609
Other assets  7,597  4,650
     
Total assets  $ 515,815  $ 493,252
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Deposits    
Non-interest bearing  $ 79,100  $ 52,735
Interest-bearing:    
NOW accounts  53,122  44,646
Savings  61,225  63,210
Money market accounts  57,701  52,981
Time deposits of $100,000, and over  114,587  134,655
Other time deposits  59,507  63,168
Total deposits  425,242  411,395
     
Repurchase agreements  3,360  3,565
Federal Home Loan Bank borrowings  25,000  25,000
Other liabilities  5,971  2,847
     
Total liabilities  459,573  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; 3,627,397 and 3,592,140 shares issued and outstanding  4  4
Additional paid-in-capital  16,459  16,301
Retained Earnings  37,927  32,988
Accumulated other comprehensive income   1,852  1,152
Total shareholders' equity  56,242  50,445
Total liabilities and shareholders' equity  $ 515,815  $ 493,252
 
GEORGIA-CAROLINA BANCSHARES, INC.
         
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
 
         
  Three Months Ended Nine Months Ended
  September 30, September 30,
Interest income 2012 2011 2012 2011
Interest and fees on loans  $ 4,579  $ 4,782  $ 13,754  $ 14,838
Interest on taxable securities  502  593  1,542  1,736
Interest on nontaxable securities  109  92  335  298
Interest on Federal funds sold and other interest  10  22  51  72
Total interest income  5,200  5,489  15,682  16,944
         
Interest expense        
Interest on time deposits of $100,000 or more  376  551  1,275  1,842
Interest on other deposits  349  560  1,088  1,901
Interest on funds purchased and other borrowings  220  241  670  795
Total interest expense  945  1,352  3,033  4,538
         
Net interest income  4,255  4,137  12,649  12,406
         
Provision for loan losses  (729)  656  (299)  1,207
         
Net interest income after provision for loan losses  4,984  3,481  12,948  11,199
         
         
Noninterest income        
Service charges on deposits  380  387  1,114  1,122
Gain on sale of mortgage loans   3,929  2,160  8,724  6,022
Gain on sale of securities  10  --   11  -- 
Other income  516  339  1,391  999
         
Total noninterest income  4,835  2,886  11,240  8,143
         
Noninterest expense        
Salaries and employee benefits  3,449  2,953  9,351  8,894
Occupancy expenses  391  392  1,168  1,162
Other real estate expenses  918  447  1,409  719
Other expenses  1,749  1,460  4,610  3,998
Total noninterest expense  6,507  5,252  16,538  14,773
         
Income before income taxes  3,312  1,115  7,650  4,569
         
Income tax expense  1,070  326  2,421  1,408
         
Net income   $ 2,242  $ 789  $ 5,229  $ 3,161
         
         
Net income per share of common stock        
Basic  $ 0.62  $ 0.22  $ 1.45  $ 0.89
Diluted  $ 0.62  $ 0.22  $ 1.45  $ 0.89
         
Dividends per share of common stock  $ 0.04  $ --   $ 0.08  $ -- 
CONTACT: Remer Y. Brinson III President & CEO remerbrinson@firstbankofga.com First Bank of Georgia 3527 Wheeler Rd Augusta, GA 30909 office (706) 731-6600 fax (706) 731-6601
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