EXHIBIT 99.1
OCTOBER 24, 2003
Georgia Bank Financial Reports Record Third Quarter Earnings
Georgia Bank Financial Corporation, the holding company for Georgia Bank &
Trust Company of Augusta, today reported record quarterly net income of $2.1
million for the three months ended September 30, 2003 compared to $1.7 million
in the third quarter of 2002, an increase of 26.2 percent. Diluted earnings per
share for the third quarter of 2003 were $0.39 versus $0.31 for the third
quarter of 2003, a 25.8 percent increase.
Net income for the nine months ended September 30, 2003 totaled $5.9
million, a 35.3 percent increase over the $4.4 million reported in the same
period of 2002. Diluted earnings per share for the nine months ended September
30, 2003 were $1.11 versus $0.82 per share for the nine months ended September
30, 2002, a 35.3 percent increase. Return on average assets was 1.35 percent
for the third quarter of 2003 and return on average shareholder's equity was
15.89 percent.
Net interest income for the first nine months of 2003, was $16.7 million,
up 12.8 percent from the $14.8 million in the comparable nine months in 2002.
Noninterest income, which included gains from record mortgage origination
volume, for the first nine months of 2003 was $11 million, up 39 percent from $8
million in the first nine months of 2002.
As of September 30, 2003, loans outstanding were $418.2 million, reflecting
an increase of $34.5 million or 9.0 percent compared to the same period last
year. Asset quality remains strong as annualized net chargeoffs for the third
quarter total 0.07% percent of average loans outstanding. Total assets at
September 30, 2003 were $620.1 million and total deposits were $480.5 million.
This reflects an increase of 12.6 percent in assets and 12.6 percent in deposits
over September 30, 2002. Total assets and deposits were $550.6 million and
$426.6 million, respectively, at September 30, 2002.
"We are pleased with an excellent quarter of record earnings," stated R.
Daniel Blanton, President and CEO. "Both loans and deposits continue to grow as
we enjoy market share gains," Blanton continued.
"The increased earnings for the quarter was driven by both an increase in
net interest income in the core bank and noninterest income from mortgage
origination activities. Net interest income increased 11.9 percent over the
prior year quarter and gain on sale of mortgage loans increased 71.6 percent
from the third quarter of 2002," stated Ronald L. Thigpen, Executive Vice
President.
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Press Release
Page 2
October 24, 2003
On October 16, 2003, the Board of Directors of Georgia Bank Financial
Corporation declared a two for one stock split payable on November 21, 2003 to
those shareholders on record as of October 31, 2003. All share and per share
data as of September 30, 2003 and December 31, 2002 and for the three and nine
months ended September 30, 2003 and 2002 have been restated to reflect the stock
split.
Georgia Bank & Trust Company currently operates seven offices in the Metro
Augusta market and is the largest locally-owned and operated bank in Richmond
and Columbia County. Based on various mergers and business combinations by
other financial institutions, Georgia Bank & Trust Company is now "the oldest
name in Augusta banking," which proudly reflects its commitment to the local
market.
The Company's common stock is publicly traded on the Over-the-Counter
Bulletin Board under the symbol "GBFP." UBS Financial Services, Inc, Augusta,
Georgia serves as the principal market maker of the common stock.
For further information, please contact R. Daniel Blanton, President and
CEO 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
ASSETS
September 30,
2003 December 31,
(Unaudited) 2002
--------------- -------------
Cash and due from banks $ 17,957,328 $ 12,942,512
Federal funds sold 15,901,000 3,691,000
Interest-bearing deposits in other banks 17,297 517,179
--------------- -------------
Cash and cash equivalents 33,875,625 17,150,691
Investment securities
Available-for-sale 137,777,980 133,971,802
Held-to-maturity, at cost (fair values of
$5,724,310 and $6,385,650, respectively) 5,437,331 6,138,889
Loans held for sale 23,644,293 24,296,598
Loans 394,563,015 372,402,679
Less allowance for loan losses (6,974,102) (6,534,417)
--------------- -------------
Loans, net 387,588,913 365,868,262
Premises and equipment, net 14,222,788 13,882,987
Accrued interest receivable 3,516,227 3,688,630
Intangible assets, net 139,883 139,883
Bank-owned life insurance 10,848,841 2,646,751
Other assets 3,096,455 2,047,917
--------------- -------------
$ 620,148,336 $ 569,832,410
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 68,342,213 $ 70,334,882
Interest-bearing:
NOW accounts 71,283,951 63,115,877
Savings 191,002,643 152,244,387
Money management accounts 23,534,928 28,687,166
Time deposits over $100,000 96,070,009 87,746,760
Other time deposits 30,294,914 37,427,629
--------------- -------------
480,528,658 439,556,701
Securities sold under repurchase agreements 47,676,603 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 4,918,996 4,539,968
--------------- -------------
Total liabilities 568,524,257 523,084,350
--------------- -------------
Stockholders' equity
Common stock, $3.00 par value; 10,000,000
shares authorized; 5,284,746 shares issued;
5,247,204 shares outstanding 7,927,119 7,927,119
Additional paid-in capital 42,264,703 29,871,959
Retained earnings 993,769 7,471,434
Treasury stock, at cost, 37,542 shares (507,360) (507,360)
Accumulated other comprehensive income 945,848 1,984,908
--------------- -------------
Total stockholders' equity 51,624,079 46,748,060
--------------- -------------
$ 620,148,336 $ 569,832,410
=============== =============
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -------------------------
2003 2002 2003 2002
----------- ---------- ------------ -----------
Interest income:
Loans, including fees $6,630,320 $6,313,600 $19,375,530 $18,136,196
Investment securities 1,487,377 1,679,996 4,669,042 5,050,156
Federal funds sold 10,345 43,138 70,215 109,278
Interest-bearing deposits in other banks (84) 4,016 3,496 13,473
----------- ---------- ------------ -----------
Total interest income 8,127,958 8,040,750 24,118,283 23,309,103
----------- ---------- ------------ -----------
Interest expense:
Deposits 1,715,861 2,150,354 5,635,878 6,518,898
Federal funds purchased and securities sold
under repurchase agreements 154,025 166,100 486,524 468,664
Other borrowings 447,923 494,432 1,338,929 1,474,615
----------- ---------- ------------ -----------
Total interest expense 2,317,809 2,810,886 7,461,331 8,462,177
----------- ---------- ------------ -----------
Net interest income 5,810,149 5,229,864 16,656,952 14,846,926
Provision for loan losses 218,833 789,096 1,125,388 1,873,914
----------- ---------- ------------ -----------
Net interest income after provision for loan losses 5,591,316 4,440,768 15,531,564 12,973,012
----------- ---------- ------------ -----------
Noninterest income:
Service charges and fees on deposits 1,149,044 1,112,141 3,371,463 3,267,795
Gain on sale of loans 2,862,538 1,667,854 7,181,770 4,042,738
Investment securities (losses) gains, net (73,460) 118,147 (44,688) 171,013
Retail investment income 47,954 49,242 221,343 188,672
Trust service fees 97,451 57,839 247,086 155,044
Increase in cash surrender value of
bank-owned life insurance 129,166 41,522 202,090 114,302
Miscellaneous income 94,061 107,402 285,365 301,793
----------- ---------- ------------ -----------
Total noninterest income 4,306,754 3,154,147 11,464,429 8,241,357
----------- ---------- ------------ -----------
Noninterest expense:
Salaries 3,838,190 2,538,556 9,830,618 7,303,010
Employee benefits 727,505 563,239 2,037,439 1,701,397
Occupancy expenses 619,152 577,230 1,797,155 1,718,863
Other operating expenses 1,556,800 1,412,959 4,300,359 3,878,120
----------- ---------- ------------ -----------
Total noninterest expense 6,741,647 5,091,984 17,965,571 14,601,390
----------- ---------- ------------ -----------
Income before income taxes 3,156,423 2,502,931 9,030,422 6,612,979
Income tax expense 1,059,793 842,000 3,104,631 2,234,000
----------- ---------- ------------ -----------
Net ncome $2,096,630 $1,660,931 $ 5,925,791 $ 4,378,979
=========== ========== ============ ===========
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Basic net income per share $ 0.40 $ 0.32 $ 1.13 $ 0.83
========== ========== ========== ==========
Diluted net income per share $ 0.39 $ 0.31 $ 1.11 $ 0.82
========== ========== ========== ==========
Weighted average common shares outstanding 5,247,204 5,247,204 5,247,204 5,247,204
========== ========== ========== ==========
Weighted average number of common and
common equivalent shares outstanding 5,362,008 5,330,944 5,358,078 5,326,744
========== ========== ========== ==========
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