Georgia-Carolina Bancshares Announces Increased Net Income In Second Quarter 2013

AUGUSTA, Ga., July 24, 2013 (GLOBE NEWSWIRE) -- Georgia-Carolina Bancshares, Inc. (OTCBB:GECR) (the "Company"), parent company of First Bank of Georgia, today reported net income of $2,119,000, or $0.59 per diluted common share, for the three months ended June 30, 2013, compared to net income of $1,703,000, or $0.47 per diluted common share, for the three months ended June 30, 2012. The Company reported net income of $4,426,000, or $1.24 per diluted common share, for the six months ended June 30, 2013, compared to net income of $2,987,000, or $0.83 per diluted common share for the six months ended June 30, 2012. Book value totaled $16.00 per common share at June 30, 2013.

These earnings represent a 15.28% return on average equity and a 1.83% return on average assets for the six month period ended June 30, 2013, up from an 11.43% return on average equity and a 1.22% return on average assets for the six month period ended June 30, 2012.

Remer Y. Brinson III, President & CEO of the Company, stated, "We continue to report very strong quarterly and year to date earnings in 2013 and also continue to reflect a very strong balance sheet and capital position.

We continue to see an improvement in overall credit quality and delinquencies. In addition, we received recoveries of $946,000 from loans previously charged off.  As a result we have recorded a year to date credit to the loan loss provision of $1,802,000.  New loan demand has increased in the second quarter, however, due to slightly lower loan outstandings, lower loans held for sale and a lower net interest margin, net interest income has declined. Non-interest income remains strong and is led by strong mortgage origination income. These factors, coupled with strong expense control, have resulted in our superior earnings performance.

Bank loans have declined 0.83% since December 31, 2012, and total $263,620,000, while total deposits have increased 1.92% during the year and total $424,974,000. Our capital position remains very strong as evidenced by a Tier 1 Leverage ratio of 11.88% and a Total Risk Based Capital ratio of 17.73%," Brinson continued.

Brinson continued, "We are pleased to announce that we opened our seventh banking office in Evans, Georgia during the second quarter.  This newest office allows us to continue to serve this vital section of our community.  Columbia County was recently cited as the 45 th fastest growing county in the United States."

Georgia-Carolina Bancshares' Board of Directors declared a quarterly cash dividend of $0.045 per share of common stock payable on August 13, 2013, to shareholders of record as of August 6, 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 (Evans and Martinez), 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, except share and per share data)
     
  June 30, December 31,
  2013 2012
  (Unaudited)  
ASSETS
     
Cash and due from banks  $ 14,293  $ 30,279
Securities available-for-sale  152,634  132,760
     
Loans  263,620  265,831
Allowance for loan losses  (4,961)  (5,954)
Loans, net  258,659  259,877
     
Loans held for sale at fair value  34,480  48,432
Bank-owned life insurance  9,551  10,001
Bank premises and fixed assets  9,603  8,790
Accrued interest receivable  1,820  1,772
Other real estate owned, net of allowance  4,702  5,876
Federal Home Loan Bank stock  855  1,865
Other assets  9,881  6,523
     
Total assets  $ 496,478  $ 506,175
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Deposits    
Non-interest bearing  $ 70,247  $ 70,880
Interest-bearing:    
NOW accounts  56,146  57,482
Savings  67,293  64,236
Money market accounts  71,967  54,982
Time deposits of $100,000, and over  102,038  111,537
Other time deposits  57,283  57,839
Total deposits  424,974  416,956
     
Federal Home Loan Bank and other borrowings  5,500  25,028
Repurchase agreements  3,045  3,333
Other liabilities  6,068  4,533
     
Total liabilities  439,587  449,850
     
Shareholders' equity    
Preferred stock, par value $.001; 1,000,000 shares authorized; none issued  --   -- 
Common stock, par value $.001; 9,000,000 shares authorized; 3,556,648 and 3,528,296 shares issued and outstanding  4  4
Additional paid-in-capital  15,853  15,687
Retained earnings  43,301  39,177
Accumulated other comprehensive income   (2,267)  1,457
Total shareholders' equity  56,891  56,325
Total liabilities and shareholders' equity  $ 496,478  $ 506,175
         
GEORGIA-CAROLINA BANCSHARES, INC.
         
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
         
         
  Three Months Ended Six Months Ended
  June 30, June 30,
Interest income 2013 2012 2013 2012
Interest and fees on loans  $ 3,786  $ 4,564  $ 7,670  $ 9,175
Interest on taxable securities  635  526  1,149  1,040
Interest on nontaxable securities  127  115  243  226
Interest on Federal funds sold and other interest  28  21  34  41
Total interest income  4,576  5,226  9,096  10,482
         
Interest expense        
Interest on time deposits of $100,000 or more  266  429  548  899
Interest on other deposits  275  362  556  739
Interest on funds purchased and other borrowings  4  225  10  450
Total interest expense  545  1,016  1,114  2,088
         
Net interest income  4,031  4,210  7,982  8,394
         
Provision for loan losses  (1,200)  125  (1,802)  430
         
Net interest income after provision for loan losses  5,231  4,085  9,784  7,964
         
         
Noninterest income        
Service charges on deposits  390  378  760  734
Mortgage banking activities  2,693  2,687  4,697  4,795
Gain (loss) on sale of other real estate  14  (20)  159  6
Gain on sale of securities  78  --  91  1
Other income/loss  626  439  1,883  869
         
Total noninterest income  3,801  3,484  7,590  6,405
         
Noninterest expense        
Salaries and employee benefits  3,291  2,960  6,365  5,902
Occupancy expenses  367  380  735  777
Other real estate expenses  543  279  702  491
Other expenses  1,667  1,446  3,279  2,861
Total noninterest expense  5,868  5,065  11,081  10,031
         
Income before income taxes  3,164  2,504  6,293  4,338
         
Income tax expense  1,045  801  1,867  1,351
         
Net income   $ 2,119  $ 1,703  $ 4,426  $ 2,987
         
         
Net income per share of common stock        
Basic  $ 0.60  $ 0.47  $ 1.25  $ 0.83
Diluted  $ 0.59  $ 0.47  $ 1.24  $ 0.83
         
Dividends per share of common stock  $ 0.045  $ 0.040  $ 0.085  $ 0.040
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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