EXHIBIT 99.1
APRIL 24, 2003
FOR IMMEDIATE RELEASE
Georgia Bank Financial Corporation, the holding company for Georgia Bank &
Trust Company of Augusta, today reported a record quarterly earnings increase of
46.9 percent over the first quarter of 2002. Net income for the quarter totaled
$1,852,187, or 77 cents per share, diluted, up from $1,260,720 or 53 cents per
share, diluted, for the same period in 2002.
As of March 31, 2003, Georgia Bank Financial Corporation reached new
records for total assets of $594.9 million and total deposits of $463.0 million.
This reflects an increase of 4.4 percent in assets and 5.3 percent in deposits
during the first quarter of 2003. Total assets and deposits were $569.8 million
and $439.6 million, respectively, at December 31, 2002.
"The Company continues to experience significant growth in market share as
it approaches $600 million in total assets, a little over a year after reaching
the milestone of $500 million during the first quarter of 2002. We are very
pleased with the growth and performance of the core bank as well as with
continuing to maintain our number one position as the largest originator of
local mortgage loans in the community," stated R. Daniel Blanton, President and
CEO.
"The earnings increase was driven by an increase in net interest income and
noninterest income from mortgage origination activities. Net interest income
increased 14.0 percent over the prior year quarter as loans increased 17.3
percent from the first quarter of 2002. The gain on the sale of mortgage loans
was up 57.4 percent as mortgage loans originated increased to $95.9 million for
the quarter compared to $54.5 million for the first quarter of 2002," stated
Ronald L. Thigpen, Executive Vice President.
Georgia Bank Financial Corporation owns Georgia Bank & Trust Company of
Augusta which operates six full service offices in the Metro Augusta market.
Recent bank mergers have made Georgia Bank and Trust Company "the oldest name in
Augusta banking". It is the largest locally-owned and operated community bank
in Richmond and Columbia County.
The Company's common stock is publicly traded on the Over-The Counter
Bulletin Board under the symbol "GBFP". UBS PaineWebber, Augusta, Georgia
serves as the principal market maker of the common stock.
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Press Release
Page 2
April 24, 2003
For further information, please contact R. Daniel Blanton, President and
Chief Executive Officer or Ronald L. Thigpen, Executive Vice President and Chief
Operating Officer at 706-738-6990.
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
ASSETS
March 31, December 31,
2003 2002
-----------------------------
Cash and due from banks $ 19,017,681 $ 12,942,512
Federal funds sold 5,357,000 3,691,000
Interest-bearing deposits in other banks 517,230 517,179
------------- --------------
Cash and cash equivalents 24,891,911 17,150,691
Investment securities
Available-for-sale 140,397,386 133,971,802
Held-to-maturity, at cost (fair values of
$6,515,555 and $6,385,650, respectively) 6,137,504 6,138,889
Loans held for sale 18,957,401 24,296,598
Loans 389,316,232 372,402,679
Less allowance for loan losses (6,831,353) (6,534,417)
------------- --------------
Loans, net 382,484,879 365,868,262
Premises and equipment, net 13,818,212 13,882,987
Accrued interest receivable 3,606,060 3,688,630
Intangible assets, net 139,883 139,883
Other assets 4,447,873 4,694,668
------------- --------------
$594,881,109 $ 569,832,410
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 71,882,277 $ 70,334,882
Interest-bearing:
NOW accounts 61,685,103 63,115,877
Savings 175,655,772 152,244,387
Money management accounts 26,209,991 28,687,166
Time deposits over $100,000 92,578,529 87,746,760
Other time deposits 35,011,240 37,427,629
------------- --------------
463,022,912 439,556,701
Securities sold under repurchase agreements 42,884,103 42,987,681
Advances from Federal Home Loan Bank 35,000,000 35,000,000
Other borrowed funds 400,000 1,000,000
Accrued interest and other liabilities 4,556,033 4,539,968
------------- --------------
Total liabilities 545,863,048 523,084,350
------------- --------------
Stockholders' equity
Common stock, $3.00 par value; 10,000,000
shares authorized; 2,404,051 shares issued;
2,385,280 shares outstanding 7,212,153 7,212,153
Additional paid-in capital 30,586,925 30,586,925
Retained earnings 9,323,621 7,471,434
Treasury stock, at cost, 18,771 shares (507,360) (507,360)
Accumulated other comprehensive income 2,402,722 1,984,908
------------- --------------
Total stockholders' equity 49,018,061 46,748,060
------------- --------------
$594,881,109 $ 569,832,410
============= ==============
7
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
----------------------
2003 2002
---------- ----------
Interest income:
Loans, including fees $6,257,448 $5,872,538
Investment securities 1,621,372 1,623,477
Federal funds sold 33,106 35,318
Interest-bearing deposits in other banks 1,276 5,667
---------- ----------
Total interest income 7,913,202 7,537,000
========== ==========
Interest expense:
Deposits 1,980,159 2,238,495
Federal funds purchased and securities sold
under repurchase agreements 167,572 142,967
Other borrowings 443,086 487,775
---------- ----------
Total interest expense 2,590,817 2,869,237
---------- ----------
Net interest income 5,322,385 4,667,763
Provision for loan losses 474,750 669,990
---------- ----------
Net interest income after provision
for loan losses 4,847,635 3,997,773
---------- ----------
Noninterest income:
Service charges and fees on deposits 1,082,649 1,030,175
Gain on sale of loans 1,787,730 1,135,719
Investment securities gains, net 46,192 50,039
Retail investment income 90,937 56,580
Trust services fees 69,859 42,648
Miscellaneous income 97,312 98,075
---------- ----------
Total noninterest income 3,174,679 2,413,236
---------- ----------
Noninterest expense:
Salaries 2,549,632 2,102,590
Employee benefits 799,644 729,367
Occupancy expenses 581,346 566,741
Other operating expenses 1,271,463 1,145,591
---------- ----------
Total noninterest expense 5,202,085 4,544,289
---------- ----------
Income before income taxes 2,820,229 1,866,720
Income tax expense 968,042 606,000
---------- ----------
Net Income $1,852,187 $1,260,720
========== ==========
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
---------- ----------
2003 2002
---------- ----------
Basic net income per share $ 0.78 $ 0.53
Diluted net income per share $ 0.77 $ 0.53
Weighted average common shares outstanding 2,385,280 2,385,280
Weighted average number of common and
common equivalent shares outstanding 2,404,185 2,392,693
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