GAINESVILLE, Ga., May 3, 2006 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company, and Mountain Bancshares, Inc., parent company of Mountain State Bank, announced today that they have completed their merger. Following overwhelming approval by the Mountain Bancshares' shareholders and final regulatory approval, Mountain State Bank, with offices in Dawson and Forsyth counties (GA), became GB&T Bancshares' seventh affiliate bank, effective at the end of the business day on Friday, April 28, 2006.
As a result of the merger, the GB&T Bancshares network now includes seven community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South, First National Bank of Gwinnett and Mountain State Bank. The Company has twenty-nine offices located in thirteen Georgia counties. With the addition of the $136 million-asset Mountain State Bank, GB&T Bancshares' assets total approximately $1.7 billion.
According to a U.S. Census Bureau update, Forsyth County and Dawson County were ranked among the nation's 100 fastest growing counties, with a 42.7% and 23.3% five-year growth rate from 2000 to 2005. The move into these two counties is well suited to GB&T's acquisition strategy, which has resulted in adding to the Company, banks located in the fast-growing counties outside the metro Atlanta market. Also, in keeping with corporate strategy, Mountain State Bank will continue to operate with its current management and board and will retain its name and market identity.
Philip Wilheit, Chairman of the Board of GB&T Bancshares, commented, "We welcome the directors, officers and staff of Mountain State Bank into our Company and are excited to add Dawson and Forsyth counties to GB&T's footprint in Georgia. We see the addition of Mountain State Bank as a real asset for our Company."
When the announcement of the merger agreement was first made in December 2005, GB&T Bancshares President and CEO Richard Hunt noted that the merger would be a 70% stock and 30% cash transaction. Under the terms of the agreement, Mountain Bancshares' stockholders will receive .8911 shares of GB&T Bancshares stock and $8.40 for each share of Mountain Bancshares stock they own -- in a transaction initially valued at approximately $40.5 million. He also noted that he expects the transaction to be accretive to earnings within 12 months of the merger.
Mountain State Bank President and CEO John L. Lewis views the merger as a positive move for the young, strong performing bank. "GB&T has a reputation in the state of Georgia as a solid, growing banking company. We look forward to being a part of the company's future."
Hunt added, "Mountain State Bank's values, mission and banking strategy complement GB&T's focus on providing quality personal banking to the communities we serve. And, John Lewis and his staff will now be able to offer expanded banking services to their customers including Trust and Investment Services."
About GB&T Bancshares, Inc.
Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating seven community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South, First National Bank of Gwinnett and Mountain State Bank. 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 expected earnings accretion following the merger and projected growth in the counties in which we operate 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 beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. 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; (3) general economic conditions may be less favorable than expected, 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 growth in the counties in which we operate; (5) legislative or regulatory changes, including changes in accounting and economic 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 merger may be greater than expected; (8) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; 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, whether as a result of new information, future events or otherwise.