EXHIBIT 99.1
JANUARY 23, 2004
GEORGIA BANK FINANCIAL DECLARES CASH DIVIDEND
AND ANNOUNCES FOURTH QUARTER EARNINGS
Georgia Bank Financial Corporation, the holding company for Georgia Bank &
Trust Company of Augusta, today announced that the Board of Directors has
approved the commencement of quarterly cash dividends and declared its first
quarterly cash dividend of $0.13 per share on outstanding shares of the
Company's Common Stock. The dividend is payable on February 20, 2004 to
shareholders of record as of February 2, 2004.
As the first cash dividend paid by the Company, the dividend represents a
significant milestone in the history of the Company. "We are pleased the
Company has reached a level of maturity evidenced by long-term financial
performance and stability that allows us to reward our shareholders for their
investment and confidence in the Company over its fifteen year history" stated
R. Daniel Blanton, President and Chief Executive Officer.
The Company, Augusta's largest community banking company, reported net
income increased 23.1% for the three months ended December 31, 2003 compared to
the fourth quarter of 2002. Net income for the fourth quarter was $2,007,310 or
37 cents per diluted share, compared to $1,631,146 or 31 cents per diluted share
in the fourth quarter of 2002.
Net income for the twelve months ended December 31, 2003 was $7,933,101, a
32.0% increase over the $6,010,125 reported in the same period in 2002. Diluted
earnings per share for 2003 were $1.48 versus $1.13 per diluted share for the
twelve months ended December 31, 2002.
As of December 31, 2003, the Augusta company reported total assets of
$630.6 million, total loans of $432.7 million and total deposits of $484.0
million. This reflected continuing growth in the market for the company as
total assets, total loans and total deposits increased 10.7%, 9.1% and 10.1%,
respectively, from December 31, 2002.
"The growth within our market of loans and core deposits has driven double
digit growth in net income and earnings per share and produced excellent
shareholder returns for 2003. This continuing rate of growth clearly indicates
the overwhelming acceptance of a financial institution that is committed to
building life-long relationships with its customers, employees, shareholders,
and the communities we serve," stated R. Daniel Blanton, President and CEO.
Press Release
Page 2
January 23, 2004
"The record earnings for the year resulted from increases in net interest
income generated by loan growth of $36.0 million during the year and significant
increases in non interest income from mortgage operations. The gain on the sale
of mortgages was up 50.0% from the previous year as the Bank originated over
$400 million in residential home loans in the local community," according to
Ronald L. Thigpen, Executive Vice President and Chief Operating Officer.
Georgia Bank & Trust Company of Augusta, the Company's subsidiary, provides
banking, asset management and mortgage services through the six offices in the
Metro Augusta market. The Bank is the largest locally-owned and operated Bank
in Richmond and Columbia County and is "The Oldest Name in Augusta Banking."
For further information, please contact R. Daniel Blanton, President or
Ronald L. Thigpen, Executive Vice President at (706) 738-6990.
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
ASSETS December 31,
2003 December 31,
(Unaudited) 2002
-------------- --------------
Cash and due from banks $ 15,704,566 $ 12,942,512
Federal funds sold - 3,691,000
Interest-bearing deposits in other banks 17,318 517,179
-------------- --------------
Cash and cash equivalents 15,721,884 17,150,691
Investment securities
Available-for-sale 151,394,463 133,971,802
Held-to-maturity, at cost (fair values of
$5,750,099 and $6,385,650, respectively) 5,437,519 6,138,889
Loans held for sale 14,047,080 24,296,598
Loans 418,632,111 372,402,679
Less allowance for loan losses (7,277,589) (6,534,417)
-------------- --------------
Loans, net 411,354,522 365,868,262
Premises and equipment, net 14,250,543 13,882,987
Accrued interest receivable 3,784,888 3,688,630
Intangible assets, net 139,883 139,883
Bank-owned life insurance 10,971,633 2,646,751
Other assets 3,530,542 2,047,917
-------------- --------------
$ 630,632,957 $ 569,832,410
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 68,033,102 $ 70,334,882
Interest-bearing:
NOW accounts 72,386,405 63,115,877
Savings 194,366,425 152,244,387
Money management accounts 22,137,192 28,687,166
Time deposits over $100,000 97,631,749 87,746,760
Other time deposits 29,396,929 37,427,629
-------------- --------------
483,951,802 439,556,701
Federal funds purchased and securities sold
under repurchase agreements 56,968,754 42,987,681
Advances from Federal Home Loan Bank 30,000,000 35,000,000
Other borrowed funds 800,000 1,000,000
Accrued interest and other liabilities 5,223,354 4,539,968
-------------- --------------
Total liabilities 576,943,910 523,084,350
-------------- --------------
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 3,001,079 7,471,434
Treasury stock, at cost 37,542 shares (507,360) (507,360)
Accumulated other comprehensive income 1,003,506 1,984,908
-------------- --------------
Total stockholders' equity 53,689,047 46,748,060
-------------- --------------
$ 630,632,957 $ 569,832,410
============== ==============
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended Year Months Ended
December 31, December 31,
----------------------- -------------------------
2003 2002 2003 2002
----------- ---------- ------------ -----------
Interest income:
Loans, including fees $6,464,266 $6,402,389 $25,839,796 $24,538,585
Investment securities 1,736,081 1,639,523 6,405,123 6,689,679
Federal funds sold 18,291 15,653 88,506 124,931
Interest-bearing deposits in other banks 21 3,780 3,517 17,253
----------- ---------- ------------ -----------
Total interest income 8,218,659 8,061,345 32,336,942 31,370,448
----------- ---------- ------------ -----------
Interest expense:
Deposits 1,615,197 2,090,918 7,251,075 8,609,816
Federal funds purchased and securities sold
under repurchase agreements 159,425 171,121 645,949 639,785
Other borrowings 449,208 435,837 1,788,137 1,910,452
----------- ---------- ------------ -----------
Total interest expense 2,223,830 2,697,876 9,685,161 11,160,053
----------- ---------- ------------ -----------
Net interest income 5,994,829 5,363,469 22,651,781 20,210,395
Provision for loan losses 568,753 540,383 1,694,141 2,414,297
----------- ---------- ------------ -----------
Net interest income after provision for loan losses 5,426,076 4,823,086 20,957,640 17,796,098
----------- ---------- ------------ -----------
Noninterest income:
Service charges and fees on deposits 1,142,806 1,163,680 4,514,269 4,431,475
Gain on sale of loans 1,693,640 1,872,707 8,875,410 5,915,445
Investment securities (losses) gains, net (158,637) 36,228 (203,325) 207,241
Retail investment income 58,374 63,466 279,717 252,138
Trust service fees 106,029 72,092 353,115 227,136
Increase in cash surrender value of
bank-owned life insurance 122,792 37,404 324,882 151,706
Miscellaneous income 93,055 100,283 378,420 402,076
----------- ---------- ------------ -----------
Total noninterest income 3,058,059 3,345,860 14,522,488 11,587,217
----------- ---------- ------------ -----------
Noninterest expense:
Salaries 2,597,551 2,992,919 12,428,169 10,295,929
Employee benefits 866,563 600,133 2,904,002 2,301,530
Occupancy expenses 597,638 536,340 2,394,793 2,255,203
Other operating expenses 1,536,705 1,546,760 5,837,064 5,424,880
----------- ---------- ------------ -----------
Total noninterest expense 5,598,457 5,676,152 23,564,028 20,277,542
----------- ---------- ------------ -----------
Income before income taxes 2,885,678 2,492,794 11,916,100 9,105,773
Income tax expense 878,368 861,648 3,982,999 3,095,648
----------- ---------- ------------ -----------
Net income $2,007,310 $1,631,146 $ 7,933,101 $ 6,010,125
=========== ========== ============ ===========
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended Year Months Ended
December 31, December 31,
----------------------------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Basic net income per share $ 0.38 $ 0.31 $ 1.51 $ 1.15
========== ========== ========== ==========
Diluted net income per share $ 0.37 $ 0.31 $ 1.48 $ 1.13
========== ========== ========== ==========
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 5,356,314 5,331,857 5,357,637 5,328,023
========== ========== ========== ==========