GAINESVILLE, Ga., Oct. 19, 2005 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company with six community banks in markets surrounding Atlanta, Georgia, reported third quarter 2005 net income of $3.9 million compared with $2.4 million for the third quarter of 2004, an increase of 62.6 percent. Over the last twelve months, loans and deposits increased 33.6 percent and 31.1 percent, respectively, generating recurring revenue growth of 32.0 percent for the current quarter compared to the third quarter of 2004.
Diluted earnings per share for the third quarter of 2005 were $0.30 compared with $0.25 for the prior-year period, an increase of 20.0 percent. Per share results were impacted by a 36.0 percent increase in average shares outstanding to 13,089,000 arising from shares issued in connection with three bank acquisitions over the past 12 months and a public offering of 1,651,680 shares of the Company's common stock completed in the fourth quarter of 2004.
For the first nine months of 2005, the Company reported net income of $8.3 million, an increase of 21.0 percent above the $6.9 million reported for the prior-year period. Net income was impacted by an additional $2.9 million provision made to the Company's loan loss reserves in the second quarter of 2005 due to the further impairment of an inherited single loan relationship originated through its wholly-owned subsidiary, HomeTown Bank of Villa Rica ("HTB") prior to acquisition. Diluted earnings per share for the first nine months of 2005 were $0.65 versus $0.77 for the prior-year period. The per share comparison reflects the additional provision in addition to a 44.8 percent increase in average diluted shares outstanding to 12,868,000 arising from shares issued in connection with the three bank acquisitions and the public offering.
At a meeting held on October 17, 2005, the board of directors of GB&T Bancshares declared a third quarter cash dividend of $0.085 per share on the Company's common stock. The declared dividend is payable on November 14, 2005 to stockholders of record as of the close of business on October 31, 2005.
The annualized returns on average assets ("ROA") and average equity ("ROE") for the third quarter of 2005 were 1.00 percent and 7.64 percent, respectively, compared with 0.84 percent and 7.80 percent for the prior-year third quarter. Adjusted to exclude intangibles, the annualized return on average tangible assets ("ROTA") and average tangible equity ("ROTE") were 1.05 percent and 12.07 percent, respectively, for the third quarter of 2005 compared with 0.88 percent and 12.72 percent for the prior-year third quarter.
Richard A. Hunt, President and CEO, commented, "We are pleased to report a continuation of positive operating trends achieved through a combination of strong organic growth and acquisitions. Revenue growth once again outpaced expense growth, an indication of our success at integrating previous acquisitions and the improving efficiency of our operations. As with many banks in this rate environment, we have experienced pressure on our net interest margin. However, we have successfully maintained a balance between deposit growth and a modestly lower margin, as compared to the first two quarters of 2005; this combination has enabled us to continue funding the strong loan growth we see in our markets. We anticipate further improvements in efficiency and continued strong operating trends as we enter the fourth quarter of 2005."
Total revenue, defined as net interest income plus non-interest income, was $18.1 million for the third quarter of 2005, an increase of 36.2 percent over the $13.3 million reported in the third quarter of 2004. Net interest income increased 38.0 percent from the year-ago quarter, to $14.6 million, reflecting a 36.8 percent growth in average earning assets and a three basis point increase in the net interest margin to 4.18 percent. Mr. Hunt added that the margin declined five basis points compared with the second quarter of 2005. "We have been pricing our deposits more competitively to fund loan growth," he continued. "While this has been successful in attracting new balances, we've also seen certain customers shift their demand and savings balances into higher-yielding time deposits."
Non-interest income for the third quarter of 2005 was $3.5 million compared with $2.7 million for the third quarter of 2004, an increase of 28.8 percent. Excluding gains from the sale of investment securities in the current quarter, non-interest income increased 8.3 percent. Mortgage origination fees, up $117,000 or 23.2 percent, represented the largest dollar increase in fee income, followed by service charges on deposit accounts, up $61,000 or 3.8 percent.
Non-interest expenses remain well-controlled; they were $11.6 million in the third quarter of 2005, an increase of 22.2 percent over the $9.5 million reported for the 2004 third quarter. Salaries and employee benefits expense, the largest component of non-interest expense, increased 27.9 percent; growth was affected by certain severance payments and by the addition of 29 full-time equivalent employees, a 6.6 percent increase. GB&T Bancshares' efficiency ratio improved to 65.75 percent for the third quarter of 2005 from 69.51 percent for the prior-year third quarter.
Mr. Hunt commented that apart from the previously disclosed impaired loan relationship inherited from a prior acquisition, asset quality has been sound and stable; this inherited loan was charged off during the current quarter. Nonperforming assets at September 30, 2005 were $9.1 million or 0.57 percent of assets, compared with $9.9 million or 0.65 percent of assets at June 30, 2005 and $7.3 million or 0.60 percent of assets at September 30, 2004. Annualized net charge-offs for the third quarter of 2005 were 1.00 percent of average loans compared with 0.61 percent for the second quarter of 2005 and 0.06 percent for the third quarter of 2004. Loan loss reserves at September 30, 2005 were 1.02 percent of total loans.
Total assets were approximately $1.6 billion at September 30, 2005, an increase of $398.4 million, or 32.8 percent, since September 30, 2004. The FNBG Bancshares, Inc. acquisition, completed in March, 2005, accounted for $141.9 million or 35.6 percent of the increase. Excluding this acquisition, organic growth during this period was $256.5 million or 21.1 percent. Loans increased $303.6 million or 33.6 percent to $1.2 billion at September 30, 2005 compared with $904.4 million at September 30, 2004. Exclusive of the FNBG Bancshares, Inc. acquisition, which accounted for $101.5 million of this increase, loans grew $202.1 million, or 22.3 percent. Total deposits were $1.2 billion, an increase of $292.9 million or 31.1 percent from year-ago levels. Core deposits now comprise 50.2 percent of total deposits compared with 53.5 percent a year earlier. Excluding the acquisition, total deposits increased $183.2 million, or 19.5 percent.
Stockholders' equity at September 30, 2005 was $203.6 million, a twelve-month increase of $67.2 million, or 49.2 percent, reflecting the impact of the FNBG Bancshares, Inc. acquisition and public offering mentioned above. Stockholders' equity was 12.6 percent of period-end assets. The Company had 12,729,224 shares of common stock outstanding at September 30, 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 September 30, 2005, GB&T Bancshares had assets of $1.6 billion, with 26 bank branches located in 11 Georgia counties. GB&T Bancshares' common stock is listed on the Nasdaq National Market under the symbol "GBTB." Visit the Company's website www.gbtbancshares.com for additional information about GB&T.
Forward-Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding projected growth , our efficiency, loan loss reserves, loan portfolio, 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 3rd Qtr 2nd Qtr 1st Qtr
except per share amounts) 2005 2005 2005
--------------------------------- ----------- ---------- ---------
EARNINGS
Net interest income $ 14,645 14,120 12,746
Provision for loan loss $ 635 3,822 482
Other income $ 3,476 2,906 2,757
Other expense $ 11,551 11,273 10,595
Net income $ 3,903 1,388 3,011
Non-recurring (income)/expense
(after-tax) $ 0 0 0
Operating income $ 3,903 1,388 3,011
PER SHARE DATA
Basic earnings per share $ 0.31 0.11 0.25
Diluted earnings per share $ 0.30 0.11 0.25
Operating diluted earnings
per share $ 0.30 0.11 0.25
Book value per share $ 15.99 15.81 15.77
Tangible book value per share $ 10.16 9.97 9.90
Cash dividend per share $ 0.085 0.085 0.076
PERFORMANCE RATIOS
Return on average assets 1.00% 0.37% 0.91%
Return on average tangible assets 1.05% 0.39% 0.95%
Return on average equity 7.64% 2.76% 6.65%
Return on average tangible equity 12.07% 4.37% 9.98%
Net interest margin 4.18% 4.23% 4.29%
Other expense / Average assets 2.96% 3.02% 3.19%
Efficiency Ratio 65.75% 66.21% 68.35%
Other income/Total
operating revenue 16.64% 17.07% 17.78%
MARKET DATA
Market value per share
-- Period end $ 21.23 23.76 21.66
Market as a % of book 1.33 1.50 1.37
Cash dividend yield 1.60% 1.43% 1.40%
Common stock dividend
payout ratio 28.33% 77.27% 30.40%
Period-end common shares
outstanding (000) 12,729 12,716 12,641
Common stock market
capitalization ($ Millions) $ 270.24 302.13 273.81
CAPITAL & LIQUIDITY
Equity to assets 12.62% 13.13% 13.56%
Period-end tangible equity to
tangible assets 8.40% 8.70% 8.97%
Total risk-based capital ratio n/a 14.39% 14.70%
Average loans to deposits 100.53% 100.57% 101.38%
ASSET QUALITY
Net charge-offs $ 2,949 1,707 346
(Ann.) Net loan charge-offs/
Average loans 0.996% 0.607% 0.140%
Non-performing loans $ 5,957 6,811 10,213
OREOs $ 2,887 2,965 1,451
90-day past dues $ 297 126 364
NPAs + 90 day past due/
Total assets 0.57% 0.65% 0.82%
Allowance for loan losses/
Total loans 1.02% 1.26% 1.13%
Allowance for loan losses/
NPAs + 90 days past due 134.20% 147.25% 103.64%
END OF PERIOD BALANCES
Total loans, net of unearned fees $ 1,208,031 1,152,737 1,099,344
Total assets $ 1,613,806 1,532,935 1,470,574
Deposits $ 1,233,729 1,159,109 1,096,190
Stockholders' equity $ 203,597 201,269 199,367
Full-time equivalent employees 469 463 457
AVERAGE BALANCES
Loans $ 1,175,083 1,128,442 1,004,588
Interest-earning assets $ 1,390,897 1,338,276 1,204,489
Total assets $ 1,546,761 1,498,217 1,347,362
Deposits $ 1,168,863 1,122,061 990,944
Interest-bearing
liabilities $ 1,176,016 1,131,022 1,015,305
Stockholders' equity $ 202,586 201,727 183,586
----------- ---------
4th Qtr 3rd Qtr
2004 2004
----------- ---------
EARNINGS
Net interest income $ 11,716 10,610
Provision for loan loss $ 465 332
Other income $ 3,238 2,699
Other expense $ 9,901 9,456
Net income $ 2,975 2,400
Non-recurring (income)/expense
(after-tax) $ (230) 127
Operating income $ 2,745 2,527
PER SHARE DATA
Basic earnings per share $ 0.28 0.25
Diluted earnings per share $ 0.27 0.25
Operating diluted earnings per share $ 0.25 0.26
Book value per share $ 14.84 13.57
Tangible book value per share $ 10.19 8.11
Cash dividend per share $ 0.076 0.076
PERFORMANCE RATIOS
Return on average assets 0.95% 0.84%
Return on average tangible assets 0.99% 0.88%
Return on average equity 7.74% 7.80%
Return on average tangible equity 12.06% 12.72%
Net interest margin 4.19% 4.15%
Other expense / Average assets 3.16% 3.33%
Efficiency Ratio 67.90% 69.51%
Other income/Total operating revenue 19.65% 20.28%
MARKET DATA
Market value per share -- Period end $ 24.12 22.06
Market as a % of book $ 1.63 1.63
Cash dividend yield 1.26% 1.38%
Common stock dividend payout ratio 28.15% 30.40%
Period-end common shares
outstanding (000) $ 11,772 10,052
Common stock market capitalization
($ Millions) $ 283.95 221.74
CAPITAL & LIQUIDITY
Equity to assets 13.71% 11.23%
Period-end tangible equity to
tangible assets 9.84% 7.03%
Total risk-based capital ratio 16.27% 12.95%
Average loans to deposits 97.99% 96.09%
ASSET QUALITY
Net charge-offs $ 666 132
(Ann.) Net loan charge-offs/
Average loans 0.285% 0.062%
Non-performing loans 10,059 4,905
OREOs $ 620 1,240
90-day past dues $ 328 1,110
NPAs + 90 day past due/ Total assets 0.86% 0.60%
Allowance for loan losses/ Total loans 1.16% 1.25%
Allowance for loan losses/
NPAs + 90 days past due 100.49% 155.23%
END OF PERIOD BALANCES
Total loans, net of unearned fees $ 955,880 904,407
Total assets $ 1,274,136 1,215,373
Deposits $ 928,603 940,867
Stockholders' equity $ 174,715 136,440
Full-time equivalent employees $ 453 440
AVERAGE BALANCES
Loans $ 928,935 840,569
Interest-earning assets $ 1,111,717 1,016,482
Total assets $ 1,246,184 1,130,820
Deposits $ 947,975 874,783
Interest-bearing liabilities $ 945,777 882,226
Stockholders' equity $ 152,932 122,336
The following table provides a detailed analysis of Non-GAAP measures.
------------------------ ------- ------- ------- ------- -------
Reconciliation Table 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
(Dollars in thousands) 2005 2005 2005 2004 2004
------------------------ ------- ------- ------- ------- -------
Book value per share $15.99 15.81 15.77 14.84 13.57
Effect of intangible
assets per share $(5.83) (5.84) (5.87) (4.65) (5.46)
Tangible book value
per share $10.16 9.97 9.90 10.19 8.11
Return on average assets 1.00% 0.37% 0.91% 0.95% 0.84%
Effect of intangible
assets 0.05% 0.02% 0.04% 0.04% 0.04%
Return on average
tangible assets 1.05% 0.39% 0.95% 0.99% 0.88%
Return on average equity 7.64% 2.76% 6.65% 7.74% 7.80%
Effect of intangible
assets 4.43% 1.61% 3.33% 4.32% 4.93%
Return on average
tangible equity 12.07% 4.37% 9.98% 12.06% 12.72%
Equity to assets 12.62% 13.13% 13.56% 13.71% 11.23%
Effect of intangible
assets -4.22% -4.43% -4.59% -3.88% -4.20%
Period-end tangible
equity to tangible
assets 8.40% 8.70% 8.97% 9.84% 7.03%
GB&T Bancshares, Inc. and Subsidiaries
Consolidated Statements of Condition
9/30/2005 9/30/2004
(Unaudited) (Unaudited)
----------- -----------
Assets (in thousands):
Cash and due from banks $ 24,953 $ 23,442
Interest-bearing deposits in banks 871 2,658
Federal funds sold 49,622 13,995
Securities available-for-sale 192,561 165,336
Restricted equity securities, at cost 8,730 5,273
Loans, net of unearned income 1,208,031 904,407
Less allowance for loan losses 12,267 11,262
----------- -----------
Loans, net 1,195,764 893,145
---------- ----------
Premises and equipment, net 37,420 32,413
Goodwill and intangible assets 74,225 54,896
Other assets 29,660 24,215
---------- ----------
Total assets $1,613,806 $1,215,373
========== ==========
Liabilities and Stockholders' Equity
(in thousands):
Deposits:
Non interest-bearing $ 173,504 $ 126,469
Interest-bearing demand & savings 446,372 377,343
Time deposits 613,853 437,055
---------- ----------
Total deposits 1,233,729 940,867
Federal funds purchased and
securities sold under
repurchase agreements 30,631 20,479
Federal Home Loan Bank advances 101,691 75,094
Other borrowings 838 542
Other liabilities 13,422 12,053
Subordinated debt 29,898 29,898
---------- ----------
Total liabilities 1,410,209 1,078,933
---------- ----------
Stockholders' equity:
Capital stock 164,118 102,501
Retained earnings 40,798 33,339
Accumulated other comprehensive
income (loss) (1,319) 600
---------- ----------
Total stockholders' equity 203,597 136,440
---------- ----------
Total liabilities and
stockholders' equity $1,613,806 $1,215,373
========== ==========
GB&T BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
-------------------------------------
(Dollars in thousands,
except per share amounts)
Interest income:
Loans, including fees $21,833 $13,713 $58,816 $37,261
Taxable securities 1,884 1,250 5,360 3,275
Nontaxable securities 153 184 483 554
Federal funds sold 132 55 236 115
Interest-bearing deposits
in banks 19 9 34 17
------- ------- ------- -------
Total interest income 24,021 15,211 64,929 41,222
------- ------- ------- -------
Interest expense:
Deposits 7,647 3,429 18,545 9,337
Federal funds purchased and
securities sold under
repurchase agreements 161 57 470 150
Federal Home Loan Bank
advances 1,038 760 2,903 2,361
Other borrowings 530 355 1,500 768
------- ------- ------- -------
Total interest expense 9,376 4,601 23,418 12,616
------- ------- ------- -------
Net interest income 14,645 10,610 41,511 28,606
Provision for loan losses 635 332 4,939 941
------- ------- ------- -------
Net interest income after
provision for loan losses 14,010 10,278 36,572 27,665
------- ------- ------- -------
Other income:
Service charges on deposit
accounts 1,659 1,598 4,823 4,479
Mortgage origination fees 621 504 1,744 1,475
Insurance commissions 149 155 442 456
Gain on sale of securities 552 -- 553 609
Other operating income 495 442 1,577 1,521
------- ------- ------- -------
Total other income 3,476 2,699 9,139 8,540
------- ------- ------- -------
Other expense:
Salaries and employee benefits 6,865 5,369 19,746 15,242
Occupancy and equipment
expenses, net 1,631 1,292 4,648 3,718
Other operating expenses 3,055 2,795 9,025 7,319
------- ------- ------- -------
Total other expense 11,551 9,456 33,419 26,279
------- ------- ------- -------
Income before income taxes 5,935 3,521 12,292 9,926
Income tax expense 2,032 1,121 3,990 3,063
------- ------- ------- -------
Net income $ 3,903 $ 2,400 $ 8,302 $ 6,863
======= ======= ======= =======
Earnings per share:
Basic $ 0.31 $ 0.25 $ 0.66 $ 0.78
======= ======= ======= =======
Diluted $ 0.30 $ 0.25 $ 0.65 $ 0.77
======= ======= ======= =======
Weighted average shares
Basic 12,723 9,491 12,494 8,855
======= ======= ======= =======
Diluted 13,089 9,621 12,868 8,888
======= ======= ======= =======
Cash dividends per common share $ 0.085 $ 0.076 $ 0.246 $ 0.224
======= ======= ======= =======
GB&T Bancshares, Inc.
Yield Analysis - September 30, 2005
(Dollars in thousands)
For the Nine Months Ended
September 30, 2005
-------------------------------
Average Yields
balances Interest /Rates
===============================
Assets Interest earning assets:
Taxable securities $ 191,077 $ 5,360 3.75%
Nontaxable securities 14,671 483 4.40%
Federal funds sold 9,693 236 3.26%
Interest bearing deposits in banks 1,224 34 3.71%
Loans, net of unearned income 1,094,527 58,816 7.18%
-----------------------
Total interest earning assets $1,311,192 $ 64,929 6.62%
-----------------------
Noninterest earning assets:
Unrealized gains (losses)
on securities (1,757)
Allowance for loan losses (12,482)
Nonaccrual loans 8,114
Cash and due from banks 26,033
Other assets 133,366
-------------------------------
Total noninterest earning assets 153,274
-------------------------------
Total assets $1,464,466
===============================
Liabilities & Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand & savings $ 405,074 5,858 1.93%
Time 541,815 12,687 3.13%
Borrowings 160,857 4,873 4.05%
-----------------------
Total interest bearing liabilities 1,107,746 23,418 2.83%
-----------------------
Noninterest bearing liabilities
& shareholders' equity:
Noninterest bearing deposits 147,571
Other liabilities 13,313
Shareholder's equity 195,836
-------------------------------
Total liabilities &
shareholders' equity $1,464,466
===============================
Interest rate differential 3.79%
===============================
Net interest income 41,511
===============================
Net interest margin 4.23%
===============================
For the Three Months Ended
September 30, 2005
-------------------------------
Average Yields
balances Interest /Rates
===============================
Assets Interest earning assets:
Taxable securities $ 192,429 $ 1,884 3.88%
Nontaxable securities 13,821 153 4.39%
Federal funds sold 14,168 132 3.70%
Interest bearing deposits in banks 1,819 19 4.14%
Loans, net of unearned income 1,168,660 21,833 7.41%
-----------------------
Total interest earning assets $1,390,897 $24,021 6.85%
-----------------------
Noninterest earning assets:
Unrealized gains (losses)
on securities (2,102)
Allowance for loan losses (14,621)
Nonaccrual loans 6,423
Cash and due from banks 24,073
Other assets 142,091
-------------------------------
Total noninterest earning assets 155,864
-------------------------------
Total assets $1,546,761
===============================
Liabilities & Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand & savings $ 416,714 2,244 2.14%
Time 597,796 5,403 3.59%
Borrowings 161,506 1,729 4.25%
-----------------------
Total interest bearing liabilities 1,176,016 9,376 3.16%
-----------------------
Noninterest bearing liabilities
& shareholders' equity:
Noninterest bearing deposits 154,353
Other liabilities 13,806
Shareholder's equity 202,586
-------------------------------
Total liabilities &
shareholders' equity $1,546,761
===============================
Interest rate differential 3.69%
===============================
Net interest income 14,645
===============================
Net interest margin 4.18%
===============================