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 Strong Growth for First Quarter 2007
Assets grow to over $550 million
Net income increases 13.8% for the quarter
Greenville, SC, April 17, 2007 - Greenville First Bancshares, Inc. (NASDAQ: GVBK), holding company for Greenville First Bank, NA, today announced that net income for the first quarter of 2007 was $958 thousand, or $0.30 per diluted share, a 13.8% increase in net income when compared to $842 thousand, or $0.25 per diluted share for the same period in 2006.
Return on average assets for the first quarter of 2007 was 0.73% compared to 0.85% for the same quarter in 2006. Return on average shareholders' equity for the first quarter in 2007 was 11.03% compared to 10.92% for the first quarter in 2006. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) was 57.3% for the 2007 first quarter compared to 50.9% for the 2006 first quarter.
The earnings for the first quarter were positively impacted by an after-tax gain of $223 thousand on other real estate owned activity. In addition, noninterest expenses increased by $718 thousand, resulting from both our expansion into the Columbia market and the expansion of our corporate infrastructure, which included both additional personnel and the higher cost of our new corporate office building. Our net interest income increased $424 thousand or 12.6% resulting from higher earning assets and liabilities. Our provision for loan losses increased $60 thousand to $460 thousand for the first quarter of 2007.
"The first quarter of 2007 was the greatest period of asset growth in our company's history," said Art Seaver, CEO. "Assets increased $48.4 million since year-end and now total $557.7 million. This was an exciting quarter as we moved into our new corporate headquarter building and opened our loan production office in Columbia." Seaver added.
Total assets grew to $557.7 million as of March 31, 2007, compared to $417.8 million on March 31, 2006, an increase of 33.5%. Loans were $432.4 million at March 31, 2007, an increase of $68.0 million or 18.7%, when compared with $364.4 million on March 31, 2006. Deposits grew 39.2% to $383.9 million on March 31, 2007, compared to $275.8 million on March 31, 2006.
The Company's book value per share was $12.15 as of March 31, 2007, while the closing stock price was $21.44 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 projected growth, or loan quality, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, greater than expected non-interest expenses, excessive loan losses and other factors, which could cause actual results to differ materially from future expressed or implied by such forward-looking statements. For a more detailed description of factors that could cause or contribute to such differences, please see our 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 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 ended March 31, 2007 and 2006 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 |
| Ended March 31, |
| 2007 | | 2006 |
(In thousands, except per share dollar amounts) |
| | | |
Summary Results of Operations Data: | | | |
Interest income | $ | 8,961 | | $ | 6,626 |
Interest expense | 5,177 | | 3,266 |
Net interest income | 3,784 | | 3,360 |
Provision for loan losses | 460 | | 400 |
Net interest income after | | | |
provision for loan losses | 3,324 | | 2,960 |
Noninterest income | 593 | | 156 |
Noninterest expense | 2,508 | | 1,790 |
Income before taxes | 1,409 | | 1,326 |
Income tax expense | 451 | | 484 |
Net income | $ | 958 | | $ | 842 |
| | | |
Per Share Data: | | | |
Net income, basic | $ | 0.33 | | $ | 0.29 |
Net income, diluted | $ | 0.30 | | $ | 0.25 |
Book value | $ | 12.15 | | $ | 11.75 |
| | | |
Weighted average number of shares outstanding: | | | |
Basic | 2,934 | | 2,927 |
Diluted | 3,245 | | 3,246 |
| | | |
Performance Ratios: | | | |
Return on average assets (1) | 0.73 % | | 0.85 % |
Return on average equity (1) | 11.03 % | | 10.92 % |
Net interest margin (1) | 3.01 % | | 3.48 % |
Efficiency ratio (2) | 57.29 % | | 50.91 % |
| | | |
Growth Ratios and Other Data: | | | |
Percentage change in net income from the same | 13.80 % | | 27.53 % |
quarter of the previous year | | | |
Percentage change in diluted net income per share | | | |
from the same quarter of the previous year | 20.00 % | | 26.09 % |
| | Continued |
| | | | | | |
SUMMARY OF CONSOLIDATED FINANCIAL DATA, CONTINUED
| | | |
| At March 31, |
| 2007 | | 2006 |
| | | |
Summary Balance Sheet Data: | | | |
Assets | $ | 557,656 | | $ | 417,782 |
Investments securities | 101,888 | | 40,221 |
Loans (3) | 432,353 | | 364,392 |
Allowance for loan losses | 5,352 | | 4,515 |
Deposits | 383,930 | | 275,807 |
Securities sold under agreement to repurchase | | | |
and federal funds purchased | - | | 14,232 |
Federal Home Loan Bank Advances | 118,500 | | 79,000 |
Junior subordinate debentures | 13,403 | | 13,403 |
Shareholders' equity | 35,634 | | 31,310 |
| | | |
Asset Quality Ratios: | | | |
Nonperforming assets, past due and restructured | | | |
loans to total loans (3) | 0.55 % | | 0.80 % |
Nonperforming assets, past due and restructured | | | |
loans to total assets | 0.42 % | | 0.70 % |
Net charge-offs year to date to average | | | |
total loans (1) (3) | 0.06 % | | 0.43 % |
Allowance for loan losses to nonperforming loans | 327.30 % | | 416.71 % |
Allowance for loan losses to total loans (3) | 1.24 % | | 1.24 % |
| | | |
Capital Ratios: | | | |
Average equity to average assets | 6.61 % | | 7.77 % |
Leverage ratio | 9.13 % | | 11.10 % |
Tier 1 risk-based capital ratio | 11.78 % | | 13.00 % |
Total risk-based capital ratio | 12.54 % | | 14.20 % |
| | | |
Growth Ratios and Other Data: | | | |
Percentage change in assets | 33.48 % | | |
Percentage change in loans (3) | 18.65 % | | |
Percentage change in deposits | 39.20 % | | |
Percentage change in equity | 13.81 % | | |
Loans to deposit ratio (3) | 112.61 % | | |
| | | | | |
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(1) Annualized for the three month periods
(2) Computed by dividing noninterest expense by the sum of net interest income and
and noninterest income.
