Exhibit 99.1
FINANCIAL CONTACT: JIM AUSTIN 864-679-9070
MEDIA CONTACT: EDDIE TERRELL 864-679-9016
WEB SITE: www.greenvillefirst.com
Greenville First Reports Record Earnings as of September 30, 2005
Assets grow to over $375 million
Net income increases to $2.4 million for first nine months
Greenville, SC, October 18, 2005 - - Greenville First Bancshares, Inc. (NASDAQ: GVBK), holding company for Greenville First Bank NA, today announced that net income for the first nine months of 2005 has exceeded net income for the entire year of 2004.
Net income for the first nine months of 2005 was $2.4 million, or $0.82 per diluted share, an 84% increase when compared to a net income of $1.3 million, or $0.65 per diluted share for the same period in 2004. Net income for the third quarter of 2005 increased 83% to $927 thousand, or $0.32 per diluted share compared to $507 thousand, or $0.25 per diluted share for the same period in 2004.
Return on average assets for the nine months ended September 30, 2005 was 0.92% compared to 0.66% for the same period in 2004. Return on average shareholders' equity was 10.93% compared to 14.15% for the same period in 2004. The decline in return on shareholders' equity resulted from a significant increase in capital from the Company's secondary offering in the later part of 2004. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 49.45% during 2005 compared to 52.71% for the nine months ended September 30, 2004.
"I am proud of the Greenville First team and their tremendous accomplishments achieved during the first nine months of 2005", said Art Seaver, President and CEO. "Assets have grown nearly $60 million year to date and the significant increase in earnings is evidence of the strong momentum of our company. We will continue to strategically increase our presence in the Greenville community and look forward to opening our Augusta Road office in November."
Total assets grew to $375.3 million as of September 30, 2005 compared to $292.9 million at September 30, 2004, or an increase of 28.1%. Loans were $324.3 million at September 30, 2005, an increase of $56.5 million or 21.1% when compared with $267.8 million at September 30, 2004. Deposits grew over $53.7 million to $236.9 million at September 30, 2005 compared to $183.2 million at September 30, 2004.
The closing stock price on September 30, 2005 was $21.48 per share.
FORWARD-LOOKING STATEMENTS
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 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 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.
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the three months and nine months ended September 30, 2005 and 2004 have not been audited but, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles.
| | | | | |
| Three Months | | Nine Months |
| Ended September 30, | | Ended September 30, |
| 2005 | 2004 | | 2005 | 2004 |
(In thousands, except per share amounts) | | | | |
| | | | |
Summary Results of Operations Data: | | | | |
Interest income | $ | 5,669 | $ | 3,635 | | $ | 15,480 | $ | 9,778 |
Interest expense | 2,564 | 1,444 | | 6,773 | 3,693 |
Net interest income | 3,105 | 2,191 | | 8,707 | 6,085 |
Provision for loan losses | 225 | 375 | | 835 | 1,025 |
Net interest income after provision for loan losses | 2,880 | 1,816 | | 7,872 | 5,060 |
Noninterest income | 201 | 185 | | 633 | 547 |
Noninterest expense | 1,586 | 1,183 | | 4,619 | 3,496 |
Income before taxes | 1,495 | 818 | | 3,886 | 2,111 |
Income tax expense | 568 | 311 | | 1,477 | 802 |
Net income | $ | 927 | $ | 507 | | $ | 2,409 | $ | 1,309 |
| | | | | |
Per Share Data: | | | | | |
Net income, basic | $ | 0.35 | | 0.28 | | $ | 0.91 | $ | 0.75 |
Net income, diluted | $ | 0.32 | $ | 0.25 | | $ | 0.82 | $ | 0.65 |
Book value | $ | 11.45 | $ | 10.08 | | $ | 11.45 | $ | 10.08 |
| | | | | |
Weighted Average Number of Shares Outstanding: | | | | | |
Basic | 2,660 | 1,789 | | 2,656 | 1,747 |
Diluted | 2,931 | 2,045 | | 2,929 | 2,014 |
| | | | | |
Performance Ratios: | | | | | |
Return on average assets (2) | 1.02 % | 0.71 % | | 0.92 % | 0.66 % |
Return on average equity (2) | 12.17 % | 15.02 % | | 10.93 % | 14.15 % |
Net interest margin (2) | 3.45 % | 3.15 % | | 3.39 % | 3.15 % |
Efficiency ratio (3) | 47.96 % | 49.79 % | | 49.45 % | 52.71 % |
| | | | | |
Growth Ratios and Other Data: | | | | | |
Percentage change in net income | 82.94 % | | | 84.08 % | |
Percentage change in diluted net | | | | | |
income per share | 28.00 % | | | 26.15 % | |
SUMMARY CONSOLIDATED FINANCIAL DATA, CONTINUED | |
| | | |
| At September 30, | | |
| 2005 | 2004 | | | | | | |
| | | | | | | | |
Summary Balance Sheet Data: | | | | | | | | |
Assets | $ | 375,288 | $ | 292,941 | | | | | | |
Investment securities | 43,634 | 21,007 | | | | | | |
Loans (1) | 324,312 | 267,832 | | | | | | |
Allowance for loan losses | 4,584 | 3,573 | | | | | | |
Deposits | 236,884 | 183,232 | | | | | | |
Securities sold under agreement to repurchase and federal funds purchased | 16,232 | 13,805 | | | | | | |
Other borrowed funds | 81,500 | 60,610 | | | | | | |
Junior subordinate debentures | 6,186 | 6,186 | | | | | | |
Shareholders' equity | 30,462 | 25,488 | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | |
Asset Quality Ratios: | | |
Nonperforming assets, past due and restructured loans to total loans (1) | 0.38% | 0.18% |
Nonperforming assets, past due and restructured loans to total assets | 0.32% | 0.18% |
Net charge-offs year to date to average total loans (1) | 0.00% | 0.07% |
Allowance for loan losses to nonperforming loans | 376.35% | 1980.30% |
Allowance for loan losses to total loans (1) | 1.41% | 1.33% |
| | |
Capital Ratios: | | |
Average equity to average assets | 8.39% | 4.66% |
Leverage ratio | 10.00% | 11.03% |
Tier 1 risk-based capital ratio | 12.41% | 13.03% |
Total risk-based capital ratio | 13.66% | 14.28% |
| | |
Growth Ratios and Other Data: | | |
Percentage change in assets | 28.11% | |
Percentage change in loans (1) | 21.09% | |
Percentage change in deposits | 29.28% | |
Percentage change in equity | 19.52% | |
Loan to deposit ratio (1) | 136.91% | |
(1) Includes nonperforming loans.
(2) Annualized for the three and nine month periods.
(3) Computed by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income, net of securities gains or losses.
