GB&T Bancshares Reports First Quarter Net Income of $3.0 Million, Up 35.0%

Declares Second Quarter Cash Dividend of $0.085, up 11.8% from First Quarter


GAINESVILLE, Ga., April 20, 2005 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a fast-growing multi-bank holding company operating six community banks based in Georgia, reported first quarter 2005 net income of $3.0 million, a 35.0 percent increase over the $2.2 million reported for the first quarter of 2004. Strong earnings reflect the Company's double-digit balance sheet growth achieved through organic expansion combined with an active acquisition strategy. During the last twelve months, loans increased 51.8 percent and core deposits increased 46.8 percent.

Diluted earnings per share for the first quarter of 2005 were $0.25 compared with $0.26 for the prior-year period. The earnings per share comparison reflects a 41.1 percent increase in average diluted shares outstanding to 12,245,467 arising from shares issued in connection with three bank acquisitions over the past 12 months and a public offering of 1,651,680 shares completed in the fourth quarter of 2004.

At a meeting held on April 18, 2005, the Board of Directors of GB&T Bancshares declared a second quarter cash dividend of $0.085 per share on the Company's common stock. This represents an increase of $0.009, or 11.8 percent, above the previous quarter. The declared dividend is payable on May 13, 2005 to shareholders of record as of the close of business on May 2, 2005.

The annualized returns on average assets ("ROA") and average equity ("ROE") for the first quarter of 2005 were 0.91 percent and 6.65 percent, respectively, compared with 0.93 percent and 9.14 percent for the prior-year first quarter. Adjusted to exclude intangibles, the annualized return on average tangible assets ("ROTA") and average tangible equity ("ROTE") were 0.95 percent and 9.98 percent, respectively, compared with 0.97 percent and 13.77 percent for the prior-year first quarter.

Richard A. Hunt, President and CEO, commented, "We are extremely pleased with our performance this quarter. Our earnings continue to strengthen as we selectively expand our franchise into attractive, growing Georgia communities. Each market that we enter provides on-going opportunities for commercial loan and core deposit growth; organic loan growth for the past twelve months was 17.3 percent and organic core deposits grew 15.1 percent and now account for 51.6 percent of our deposit base. We believe a balance of acquisitions and continued organic growth is the best strategy to maximize shareholder value over time.

"We are strongly committed to the concept of community banking, and we strive to maintain a combination of service, expertise and local decision-making in each of our banks. Our latest acquisition, Gwinnett-based FNBG Bancshares, Inc., parent of First National Bank of Gwinnett, reflects this philosophy. We look forward to enhancing its reputation and expanding its customer base in the thriving, populous county of Gwinnett."

Total revenue, defined as net interest income plus non-interest income, was $15.5 million for the first quarter of 2005, an increase of 31.5 percent over the $11.8 million reported in the first quarter of 2004. Since the first quarter of 2004, net interest income increased 43.4 percent, to $12.7 million, reflecting a 39.1 percent growth in average earning assets and a 16 basis point increase in the net interest margin to 4.29 percent (a 10 basis point increase from the preceding quarter). Mr. Hunt noted, "Our commercial loan and core deposit growth should position us for wider margins in this rising rate environment. We are pleased with this quarter's margin improvement and anticipate a continuation of this trend near term."

Non-interest income for the first quarter of 2005 was $2.8 million, compared with $2.9 million for the first quarter of 2004. Excluding gains from the sale of investment securities in both periods, non-interest income increased 4.6 percent to $2.8 million. Service charges on deposit accounts, up 8.5 percent, represented the largest dollar increase in fee income. Other categories showed only modest changes.

Non-interest expense was well-controlled, and was outpaced by both asset growth and revenue growth. Non-interest expense was $10.6 million in the first quarter of 2005, an increase of 26.9 percent over the $8.3 million reported for the first quarter of 2004, resulting in improved efficiencies. Salaries and employee benefits expense, the largest component of non-interest expense, increased 28.0 percent; the number of full-time equivalent employees increased 17.8 percent, primarily as a result of the three recent acquisitions. GB&T Bancshares' efficiency ratio improved to 68.35 percent for the first quarter of 2005 from 72.45 percent for the prior-year first quarter.

Nonperforming assets at March 31, 2005, were 0.82 percent of assets compared with 0.86 percent at December 31, 2004 and 0.62 percent at March 31, 2004. Annualized net charge-offs for the first quarter of 2005 were 0.14 percent of average loans compared with 0.29 percent for the fourth quarter of 2004 and 0.003 percent for the first quarter of 2004. Loan loss reserves at March 31, 2005 were 1.13 percent of total loans. Mr. Hunt commented, "Our asset quality is sound. Nonperforming assets on a relative basis improved modestly over the linked quarter and our charge-offs continue to be low. The year-over-year increase in nonperforming assets reflects a secured commercial loan added to nonperforming status in the fourth quarter of 2004. We are comfortable with our reserve coverage on that loan."

Total assets were $1.5 billion at March 31, 2005, an increase of $496.4 million, or 50.9 percent, from March 31, 2004. The FNBG Bancshares, Inc., Lumpkin County Bank and Southern Heritage Bancorp, Inc. acquisitions accounted for $349.3 million or 70.4 percent of the increase. Excluding these three acquisitions, organic growth during this same period was $147.1 million or 15.1 percent. Loans rose $375.1 million or 51.8 percent to $1.1 billion at March 31, 2005 compared with the prior-year first quarter. Exclusive of the three acquisitions, which accounted for $249.8 million of this increase, loans grew $125.3 million, or 17.3 percent. Total deposits increased to $1.1 billion, up $338.0 million or 44.6 percent from year-ago levels. Also excluding the acquisitions, total deposits increased $64.2 million, or 8.5 percent.

Shareholders' equity at March 31, 2005 was $199.4 million, a twelve-month increase of $100.0 million, or 100.7 percent, reflecting the impact of two bank acquisitions during the third quarter of 2004, one acquisition during the first quarter of 2005 and a public offering during the fourth quarter of 2004. Shareholders' equity was 13.6 percent of period-end assets. GB&T Bancshares had 12,641,076 shares of common stock outstanding at March 31, 2005.

About GB&T Bancshares, Inc.

Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating six community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South and First National Bank of Gwinnett. In addition, the Company owns a consumer finance company, Community Loan Company, with eight offices located in Northern Georgia. As of March 31, 2005, GB&T Bancshares had assets of $1.5 billion, with 26 branches located in high-growth Georgia markets. GB&T Bancshares' common stock is listed on the Nasdaq National Market under the symbol "GBTB." Visit the Company's website www.gbt.com for additional information about GB&T.

Forward-Looking Statements

Some of the statements in this press release, including, without limitation, statements regarding our proposed acquisitions, projected growth in the counties in which we operate, our efficiency, loan loss reserves, net interest margin, revenue growth and other statements regarding our future results of operations are "forward-looking statements" within the meaning of the federal securities laws. In addition, when we use words like "anticipate", "believe", "intend", "expect", "estimate", "could", "should", "will", and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our current beliefs and assumptions. Factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans held or made by us; (3) general economic conditions may be less favorable than expected (both generally and in our markets), resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) economic, governmental or other factors may prevent the projected population and commercial growth in the counties in which we operate; (5) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which we are engaged; (6) costs or difficulties related to the integration of our businesses may be greater than expected; (7) deposit attrition, customer loss or revenue loss following the acquisitions may be greater than expected; (8) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; and (9) adverse changes may occur in the equity markets. Many of these factors are beyond our ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements contained in this release.



              G B & T Bancshares Inc.
         CONSOLIDATED FINANCIAL HIGHLIGHTS
                    (Unaudited)

                   (Dollars in thousands except per share amounts)
                -----------------------------------------------------
                 1st Qtr     4th Qtr    3rd Qtr   2nd Qtr    1st Qtr
                   2005        2004       2004      2004       2004
                ----------  ---------  ---------  ---------  --------
 EARNINGS
  Net interest
   income       $   12,746     11,716     10,610      9,110     8,886
  Provision for
   loan loss    $      482        465        332        325       284
  Other income  $    2,757      3,238      2,699      2,942     2,899
  Other expense $   10,595      9,901      9,456      8,475     8,348
  Net income    $    3,011      2,975      2,400      2,233     2,230
  Non-recurring
   income/expense
   (after-tax)  $        0        230        127          0         0
  Operating
   income       $    3,011      2,745      2,527      2,233     2,230

 PER SHARE DATA
  Basic earnings
   per share    $     0.25       0.28       0.25       0.26      0.26
  Diluted
   earnings
   per share    $     0.25       0.27       0.25       0.26      0.26
  Operating
   diluted
   earnings
   per share    $     0.25       0.25       0.26       0.26      0.26
  Book value per
   share        $    15.77      14.84      13.57      11.57     11.65
  Tangible book
   value per
   share        $     9.90      10.19       8.11       7.75      7.79
  Cash dividend
   per share    $    0.076      0.076      0.076      0.076     0.072

 PERFORMANCE
 RATIOS
  Return on
   average assets     0.91%      0.95%      0.84%      0.91%     0.93%
  Return on
   average
   tangible assets    0.95%      0.99%      0.88%      0.94%     0.97%
  Return on
   average equity     6.65%      7.74%      7.80%      9.05%     9.14%
  Return on
   average
   tangible equity    9.98%     12.06%     12.72%     13.53%    13.77%
  Net interest
   margin             4.29%      4.19%      4.15%      4.09%     4.13%
  Other expense/
   Average assets     3.19%      3.16%      3.33%      3.44%     3.49%
  Efficiency Ratio   68.35%     67.90%     69.51%     72.40%    72.45%
  Other income/
   Total operating
   revenue           17.78%     19.65%     20.28%     22.18%    22.88%

 MARKET DATA
  Market value
   per share --
   Period end   $    21.66      24.12      22.06      23.90     22.52
  Market as a %
   of book            1.37       1.63       1.63       2.07      1.93
  Cash dividend
   yield              1.40%      1.26%      1.38%      1.27%     1.28%
  Common stock
   dividend payout
   ratio             30.40%     28.15%     30.40%     29.23%    28.13%
  Period-end
   common shares
   outstanding
   (000)             12,641     11,772     10,052      8,593     8,528
  Common stock
   market
   capitalization
   ($ Millions) $   273.81     283.95     221.74     205.37    192.04

 CAPITAL &
 LIQUIDITY
  Equity to assets   13.56%     13.71%     11.23%      9.94%    10.20%
  Period-end
   tangible equity
   to tangible
   assets             8.97%      9.84%      7.03%      6.88%     7.06%
  Total risk-
   based capital
   ratio               n/a      16.27%     12.95%     11.66%    11.78%
  Average loans
   to deposits      101.38%     97.99%     96.09%     95.54%    97.39%

 ASSET QUALITY
  Net charge-
   offs         $      346        666        132        342         6
  (Ann.) Net loan
   charge-offs/
   Average loans     0.140%     0.285%     0.062%     0.186%    0.003%
  Non-performing
   loans        $   10,213     10,059      4,905      2,511     2,951
  OREOs         $    1,451        620      1,240      1,368     2,053
  90-day past
   dues         $      364        328      1,110      1,096     1,053
  NPAs + 90 day
   past due/
   Total assets       0.82%      0.86%      0.60%      0.50%     0.62%
  Allowance for
   loan losses/
   Total loans        1.13%      1.16%      1.25%      1.21%     1.24%
  Allowance for
   loan losses/
   NPA's + 90
   days past due    103.64%    100.49%    155.23%    180.64%   148.65%

 END OF PERIOD
 BALANCES
  Total loans,
   net of un-
   earned fees  $1,099,344    955,880    904,407    745,437   724,282
  Total assets  $1,470,574  1,274,136  1,215,373  1,000,519   974,213
  Deposits      $1,096,190    928,603    940,867    778,364   758,178
  Stockholders'
   equity       $  199,367    174,715    136,440     99,431    99,327
  Full-time
   equivalent
   employees           457        453        440        384       388

 AVERAGE
 BALANCES
  Loans         $1,004,588    928,935    840,569    738,092   720,063
  Total earning
   assets       $1,204,489  1,111,717  1,016,482    896,534   866,228
  Total assets  $1,347,362  1,246,184  1,130,820    990,519   960,962
  Deposits      $  990,944    947,975    874,783    772,587   739,353
  Stockholders'
   equity       $  183,586    152,932    122,336     99,254    98,137
                                    

 The following table provides a detailed analysis of Non-GAAP
 measures.


 Reconciliation Table
 (Dollars in thousands)
 --------------------------------------------------------------------
                 1st Qtr     4th Qtr    3rd Qtr    2nd Qtr   1st Qtr
                   2005        2004       2004       2004      2004
                ----------  ---------  ---------  ---------  --------

 Book value
  per share     $    15.77      14.84      13.57      11.57     11.65
 Effect of
  intangible
  assets per
  share         $    (5.87)     (4.65)     (5.46)     (3.82)    (3.86)
 Tangible book
  value per
  share         $     9.90      10.19       8.11       7.75      7.79

 Return on
  average assets      0.91%      0.95%      0.84%      0.91%     0.93%
 Effect of in-
  tangible assets     0.04%      0.04%      0.04%      0.03%     0.05%
 Return on average
  tangible assets     0.95%      0.99%      0.88%      0.94%     0.97%

 Return on average
  equity              6.65%      7.74%      7.80%      9.05%     9.14%
 Effect of in-
  tangible assets     3.33%      4.32%      4.93%      4.48%     4.63%
 Return on average
  tangible equity     9.98%     12.06%     12.72%     13.53%    13.77%

 Equity to assets    13.56%     13.71%     11.23%      9.94%    10.20%
 Effect of in-
  tangible assets    -4.59%     -3.88%     -4.20%     -3.06%    -3.14%
 Period-end
  tangible equity 
  to tangible 
  assets              8.97%      9.84%      7.03%      6.88%     7.06%


                         GB&T Bancshares, Inc.
             Condensed Consolidated Statement of Condition

                                           3/31/2005      3/31/2004
 Assets (in thousands):                   (Unaudited)    (Unaudited)
                                          -----------    -----------
 Cash and due from banks                  $    29,522    $    18,237
 Interest-bearing deposits in banks               823            546
 Federal funds sold                            10,818         16,306
                                          -----------    -----------
   Total cash and equivalents                  41,163         35,089
                                          -----------    -----------

 Securities available-for-sale,
  at fair value                               196,613        137,249
 Restricted equity securities                   8,734          4,763
                                          -----------    -----------
   Total securities                           205,347        142,012
                                          -----------    -----------

 Loans                                      1,099,344        724,282
 Allowance for loan losses                     12,466          9,004
                                          -----------    -----------
   Loans, net                               1,086,878        715,278
                                          -----------    -----------

 Premises and equipment                        36,096         25,950
 Goodwill and intangible assets                74,550         32,909
 Other assets                                  26,540         22,975
                                          -----------    -----------
   Total assets                           $ 1,470,574    $   974,213
                                          ===========    ===========

 Liabilities and Stockholders' Equity
 (in thousands):

 Deposits
  Non interest-bearing                    $   142,496    $    86,797
  Interest-bearing                            953,694        671,381
                                          -----------    -----------
   Total deposits                           1,096,190        758,178
                                          -----------    -----------
 Federal funds purchased and securities
  sold under repurchase agreements             30,584         11,973
 Federal Home Loan Bank advances               97,891         77,580
 Other borrowings                                 838          1,330
 Other liabilities                             15,806         10,361
 Company guaranteed trust preferred
  securities                                   29,898         15,464
                                          -----------    -----------
    Total liabilities                       1,271,207        874,886
                                          -----------    -----------

 Stockholders' equity:
 Capital stock                                163,691         68,280
 Retained earnings                             37,666         30,012
 Accumulated other comprehensive
  income (loss)                                (1,990)         1,035
                                          -----------    -----------
    Total stockholders' equity                199,367         99,327
                                          -----------    -----------
     Total liabilities and
      stockholders' equity                $ 1,470,574    $   974,213
                                          ===========    ===========

                GB&T BANCSHARES, INC. AND SUBSIDIARIES
                  Consolidated Statements of Income
                             (Unaudited)

                                               Three months ended
                                                    March 31,
                                                2005         2004
                                              -------       -------
                                               (Dollars in thousands,
                                             except per share amounts)
 Interest income:
   Loans, including fees                      $16,959       $11,645
  Taxable securities                            1,699           985
  Nontaxable securities                           165           184
   Federal funds sold                              46            27
   Interest-bearing deposits in banks              10             1
                                              -------       -------
    Total interest income                      18,879        12,842
                                              -------       -------
 Interest expense:
  Deposits                                      4,631         2,903
  Federal funds purchased and securities sold
   under repurchase agreements                    155            48
  Federal Home Loan Bank advances                 874           800
  Other borrowings                                473           205
                                              -------       -------
    Total interest expense                      6,133         3,956
                                              -------       -------
    Net interest income                        12,746         8,886

 Provision for loan losses                        482           284
                                              -------       -------
    Net interest income after
     provision for loan losses                 12,264         8,602
                                              -------       -------
  Other income:
   Service charges on deposit accounts          1,512         1,394
   Mortgage origination fees                      465           460
   Insurance commissions                          147           144
   Gain on sale of securities                       1           263
   Other operating income                         632           638
                                              -------       -------
    Total other income                          2,757         2,899
                                              -------       -------
 Other expense:
  Salaries and employee benefits                6,315         4,933
  Net occupancy and equipment expense           1,439         1,222
  Other operating expenses                      2,841         2,193
                                              -------       -------
    Total other expense                        10,595         8,348
                                              -------       -------
    Income before income taxes                  4,426         3,153

 Income tax expense                             1,415           923
                                              -------       -------
   Net income                                 $ 3,011       $ 2,230
                                              =======       =======
 Earnings per share:
   Basic                                      $  0.25       $  0.26
                                              =======       =======
   Diluted                                    $  0.25       $  0.26
                                              =======       =======
 Weighted average shares
   Basic                                       12,069         8,511
                                              =======       =======
   Diluted                                     12,245         8,679
                                              =======       =======
 Cash dividends per common share              $ 0.076       $ 0.072
                                              =======       =======


            

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