Georgia-Carolina Bancshares Announces Another Strong Earnings Year & Quarterly Cash Dividend

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| Source: Georgia-Carolina Bancshares, Inc.

AUGUSTA, Ga., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Georgia-Carolina Bancshares, Inc. (GECR) (the "Company"), parent company of First Bank of Georgia, today reported net income of $6,204,000, or $1.73 per diluted common share, for the year ended December 31, 2013. Remer Y. Brinson III, President & CEO of the Company stated, "We are very pleased to report another very strong earnings performance for 2013, similar to our record year in 2012. The 2013 earnings represent a 1.26% return on average assets and a 10.68% return on average equity. While slightly below the $6,621,000, or $1.84 per diluted common share, earned in 2012, we are very pleased with our 2013 results."

Brinson continued, "2013 has been a year of transition as we've seen a continued gradual improvement in the economy and in loan demand. Traditional bank loan demand has increased during the second half of the year, while conventional mortgage loan demand declined somewhat during the period following a robust 2012 and early 2013.

Loans, excluding loans held for sale, grew 3.3% this year to $275 million, while core deposits grew 7.9% to $267 million during the year. Loans held for sale declined 35% to $31 million, while total assets increased 2% since December 31, 2012 to $516,498,000."

Net income for the quarter ended December 31, 2013 totaled $935,000, or $.26 per diluted common share, compared to $1,392,000, or $.39 per diluted common share, for the quarter ended December 31, 2012.

Brinson reported, "Asset quality continues to improve as reflected by total non-performing assets declining from 1.93% of assets to 1.32% of assets during the year. In addition, recoveries exceeded charge offs during the year, resulting in a net recovery of 0.54% of average loans during the year."

First Bank of Georgia also opened its seventh branch office in Evans, Georgia, during the second quarter of 2013.

Georgia-Carolina Bancshares' Board of Directors declared a quarterly cash dividend of $0.045 per share of common stock payable on February 18, 2014, to shareholders of record as of February 11, 2014.

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, (Martinez and Evans) 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)
     
  December 31, December 31,
  2013 2012
  (Unaudited)  
ASSETS
     
Cash and due from banks  $ 16,828  $ 30,279
Securities available-for-sale  158,439  132,760
     
Loans  274,747  265,831
Allowance for loan losses  (5,357)  (5,954)
Loans, net  269,390  259,877
     
Loans held for sale at fair value  31,298  48,432
Bank-owned life insurance  14,834  10,001
Bank premises and fixed assets  9,512  8,790
Accrued interest receivable  1,854  1,772
Other real estate owned, net of allowance  4,897  5,876
Federal Home Loan Bank stock  1,606  1,865
Other assets  7,840  6,523
     
Total assets  $ 516,498  $ 506,175
     
LIABILITIES AND SHAREHOLDERS' EQUITY
     
Deposits    
Non-interest bearing  $ 76,747  $ 70,880
Interest-bearing:    
NOW accounts  59,661  57,482
Savings  56,757  64,236
Money market accounts  74,056  54,982
Time deposits of $100,000, and over  97,625  111,537
Other time deposits  54,859  57,839
Total deposits  419,705  416,956
     
Federal Home Loan Bank and other borrowings  22,200  25,028
Repurchase agreements  12,111  3,333
Other liabilities  5,593  4,533
     
Total liabilities  459,609  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; 3,572,204 and 3,528,296 shares issued and outstanding  4  4
Additional paid-in-capital  16,192  15,687
Retained earnings  44,758  39,177
Accumulated other comprehensive income/(loss)   (4,065)  1,457
Total shareholders' equity  56,889  56,325
Total liabilities and shareholders' equity  $ 516,498  $ 506,175
     
 
GEORGIA-CAROLINA BANCSHARES, INC.
         
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
         
  Three Months Ended Twelve Months Ended
  December 31, December 31,
Interest income 2013 2012 2013 2012
Interest and fees on loans  $ 3,812  $ 4,265  $ 15,277  $ 18,019
Interest on taxable securities  688  504  2,472  2,046
Interest on nontaxable securities  150  104  536  439
Interest on Federal funds sold and other interest  5  14  47  65
Total interest income  4,655  4,887  18,332  20,569
         
Interest expense        
Interest on time deposits of $100,000 or more  228  325  1,029  1,600
Interest on other deposits  248  315  1,059  1,403
Interest on funds purchased and other borrowings  13  9  27  679
Total interest expense  489  649  2,115  3,682
         
Net interest income  4,166  4,238  16,217  16,887
         
Provision for loan losses  (242)  (306)  (2,029)  (605)
         
Net interest income after provision for loan losses  4,408  4,544  18,246  17,492
         
         
Noninterest income        
Service charges on deposits  392  410  1,567  1,524
Mortgage banking activities  1,763  2,652  8,225  11,376
Gain on sale of other real estate  50  24  231  40
Gain/(loss) on sale of securities  --   (116)  91  (105)
Other income/loss  405  443  2,790  1,818
Total noninterest income  2,610  3,413  12,904  14,653
         
Noninterest expense        
Salaries and employee benefits  3,189  2,978  12,853  12,329
Occupancy expenses  383  388  1,505  1,556
Other real estate expenses  601  875  1,654  2,284
Other expenses  1,579  2,082  6,454  6,692
Total noninterest expense  5,752  6,323  22,466  22,861
         
Income before income taxes  1,266  1,634  8,684  9,284
         
Income tax expense  331  242  2,480  2,663
         
Net income   $ 935  $ 1,392  $ 6,204  $ 6,621
         
Net income per share of common stock        
Basic  $ 0.26  $ 0.39  $ 1.74  $ 1.84
Diluted  $ 0.26  $ 0.39  $ 1.73  $ 1.84
         
Dividends per share of common stock  $ 0.045  $ 0.040  $ 0.175  $ 0.120
         
Remer Y. Brinson III
President & CEO

First Bank of Georgia
3527 Wheeler Rd
Augusta, GA 30909
office (706) 731-6600
fax (706) 731-6601