FOR IMMEDIATE RELEASE
Greenville, S.C., April 20, 2004 – Greenville First Bancshares Inc. (OTC Bulletin Board: GVBK), holding company for Greenville First Bank NA, today announced a significant increase in both earnings and assets for the first quarter ended March 31, 2004.
Growth in net income continued at a record pace. For the first quarter, Greenville First had net income of $388 thousand or $.19 in diluted earnings per share compared to $167 thousand and $.09 per share for the same period last year. Total assets were $258.8 million on March 31, 2004 which represents an increase of $28.2 million since year end.
Art Seaver, President and CEO stated, “I am pleased to report that 2004 is off to a tremendous start. Our quarterly earnings improved 132% over the same period last year and our total assets have grown to $258.8 million.” Seaver also noted that, “reaching over $250 million in assets in a little over four years is a significant accomplishment.”
Net interest income in the 2004 quarter was $1.9 million compared to $1.4 million for the first quarter in 2003, an increase of $594 thousand. The bank’s general and administrative expenses increased only $202 thousand compared to the same period in 2003. Seaver stated he was pleased that net interest income increased almost three times the amount of the increase in general and administrative expenses. Seaver also commented that the Bank was well positioned to financially benefit, should interest rates begin to rise.
The $28.2 million increase in total assets resulted from a $20.3 million increase in loans during the quarter and a $7.8 million increase in investments during the same period. The bank ended the quarter with $226.4 million in loans and $26.2 million in investments. The bank funded the growth with $4.3 million increase in deposits and $22.8 million in short-term borrowings. The bank had $173.2 million in deposits and $70.6 million in borrowing at March 31, 2004. The bank anticipates replacing a significant portion of the short-term borrowing with retail deposits resulting from an aggressive marketing campaign and the two future banking offices we plan to open in the third and fourth quarters.
The closing stock price for Greenville First Bancshares on April 19, 2004 was $20.05 per share. Additional financial data is available on the Bank’s web site atwww.greenvillefirst.com.
| Contacts: | ||||||||
| Art Seaver | Fred Gilmer | Jim Austin | ||||||
| President | Senior Vice President | Executive Vice President | ||||||
| Chief Executive Officer | Public Relations | Chief Financial Officer | ||||||
| (864) 679-9010 | (864) 679-9015 | (864) 679-9070 | ||||||
Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
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 our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
| Quarters ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | |||||||||
| 2003 | 2003 | 2004 | |||||||||
| Operations: | |||||||||||
| Interest income | $ | 2,231,029 | 2,708,019 | 2,967,320 | |||||||
| Interest expense | 891,950 | 932,785 | 1,034,335 | ||||||||
| Net interest income | 1,339,079 | 1,775,234 | 1,932,985 | ||||||||
| Provision for loan loss | 300,000 | 300,000 | 350,000 | ||||||||
| Other income | 147,143 | 75,259 | 162,323 | ||||||||
| General & administrative expenses | 916,998 | 998,789 | 1,119,582 | ||||||||
| Income before tax | 269,234 | 551,704 | 625,726 | ||||||||
| Income tax expense | 102,307 | 209,652 | 237,776 | ||||||||
| Net income | $ | 166,927 | 342,052 | 387,950 | |||||||
| Diluted earnings per share | $ | 0.09 | 0.18 | 0.19 | |||||||
| Weighted shares outstanding-diluted | 1,834,053 | 1,899,969 | 2,007,634 | ||||||||
| Efficiency Ratio | 61.83 | % | 51.64 | % | 53.43 | % | |||||
| Financial Condition: | |||||||||||
| Loans | $ | 157,753,883 | $ | 206,076,833 | $ | 226,366,349 | |||||
| Investments | 15,382,570 | 18,416,064 | 26,169,220 | ||||||||
| Total assets | 180,003,875 | 230,655,221 | 258,811,531 | ||||||||
| Deposits | 137,097,154 | 168,963,595 | 173,235,954 | ||||||||
| Other borrowings | 30,453,000 | 47,797,000 | 70,631,999 | ||||||||
| Equity | 10,390,976 | 11,186,968 | 11,560,277 | ||||||||
| Book value per share | 6.02 | 6.49 | 6.70 | ||||||||
| Ratios: | |||||||||||
| Loans to deposits | 115.07 | % | 121.97 | % | 130.67 | % | |||||
| Loans to deposits & borrowings | 94.15 | % | �� | 95.07 | % | 92.82 | % | ||||
| Allowance for loan loss | 1.33 | % | 1.30 | % | 1.33 | % | |||||
| Equity to assets | 5.77 | % | 4.85 | % | 4.47 | % | |||||
| Risk based capital (Bank only) | 10.25 | % | 10.33 | % | 10.45 | % | |||||
| Yields: | |||||||||||
| Federal Funds | 1.21 | % | 0.98 | % | 0.95 | % | |||||
| Investment | 4.00 | % | 4.42 | % | 4.43 | % | |||||
| Loans | 5.49 | % | 5.12 | % | 5.16 | % | |||||
| Earning assets | 5.31 | % | 5.03 | % | 5.06 | % | |||||
| Deposits | 2.23 | % | 1.70 | % | 1.74 | % | |||||
| FHLB advance | 2.26 | % | 1.93 | % | 1.82 | % | |||||
| Other borrowing | 1.88 | % | 2.48 | % | 2.25 | % | |||||
| Interest-bearing liabilities | 2.21 | % | 1.80 | % | 1.80 | % | |||||
| Loan to deposit spread | 3.26 | % | 3.42 | % | 3.42 | % | |||||
| Net interest margin | 3.10 | % | 3.24 | % | 3.26 | % | |||||
| Net yield on earning assets | 3.19 | % | 3.30 | % | 3.29 | % | |||||
