EXHIBIT 99.1
APRIL 22, 2004
GEORGIA BANK FINANCIAL FIRST QUARTER EARNINGS RELEASE
Georgia Bank Financial Corporation, the holding company for Georgia Bank &
Trust Company of Augusta, today reported net income for the first quarter of
$2,006,090 or 38 cents per share, diluted, up from $1,852,187 or 35 cents per
share, diluted, for the same period in 2003. This represents an increase in net
income of 8.3 percent over the first quarter of 2003 and an increase in earnings
per share of 8.5 percent.
As of March 31, 2004, Georgia Bank Financial Corporation reached new
records for total assets of $653.8 million and total deposits of $516.3 million.
This reflects an increase of 3.7 percent in assets and 6.7 percent in deposits
during the first quarter of 2004. Total assets and deposits were $630.6 million
and $483.9 million, respectively, at December 31, 2003.
"The Company continues to experience significant growth in market share as
reflected by surpassing $650 million in total assets. As reported in the FDIC
Market Share Report for June 30, 2003, the latest available, the Company
maintains a strong number two position with 15.23% of deposits in its two county
market. We are very pleased with the growth and performance of the core bank
during the first quarter," stated R. Daniel Blanton, President and CEO.
"The earnings increase was driven by an increase in net interest income
even as noninterest income declined due to the lower level of mortgage
originations in this higher interest rate environment. Net interest income
increased 14.7 percent over the prior year quarter as loans outstanding
increased 12.3 percent from 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.
Georgia Bank & Trust Company proudly retains "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 Financial Services, Augusta,
Georgia serves as the principal market maker of the common stock.
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.
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
ASSETS March 31,
2004 December 31,
(Unaudited) 2003
------------- --------------
Cash and due from banks $ 15,791,853 $ 15,704,566
Federal funds sold - -
Interest-bearing deposits in other banks 17,273 17,318
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Cash and cash equivalents 15,809,126 15,721,884
Investment securities
Available-for-sale 149,686,130 151,394,463
Held-to-maturity, at cost (fair values of
$5,478,826 and $5,750,099, respectively) 5,072,670 5,437,519
Loans held for sale 12,734,114 14,047,080
Loans 445,508,159 418,632,111
Less allowance for loan losses (7,402,292) (7,277,589)
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Loans, net 438,105,867 411,354,522
Premises and equipment, net 14,488,364 14,250,543
Accrued interest receivable 3,435,121 3,784,888
Intangible assets, net 139,883 139,883
Bank-owned life insurance 11,096,896 10,971,633
Other assets 3,247,764 3,530,542
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$653,815,935 $ 630,632,957
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 75,745,996 $ 68,033,102
Interest-bearing:
NOW accounts 80,301,767 72,386,405
Savings 204,716,144 194,366,425
Money management accounts 23,394,362 22,137,192
Time deposits over $100,000 103,986,574 97,631,749
Other time deposits 28,173,283 29,396,929
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516,318,126 483,951,802
Federal funds purchased and securities sold
under repurchase agreements 41,433,893 56,968,754
Advances from Federal Home Loan Bank 35,000,000 30,000,000
Other borrowed funds 500,000 800,000
Accrued interest and other liabilities 4,831,504 5,223,354
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Total liabilities 598,083,523 576,943,910
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Stockholders' equity:
Common stock, $3.00 par value; 10,000,000
shares authorized; 5,284,746 shares issued;
5,247,204 shares outstanding 15,854,238 15,854,238
Additional paid-in capital 34,337,584 34,337,584
Retained earnings 4,325,033 3,001,079
Treasury stock, at cost 37,542 shares (507,360) (507,360)
Accumulated other comprehensive income 1,722,917 1,003,506
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Total stockholders' equity 55,732,412 53,689,047
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$653,815,935 $ 630,632,957
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
----------------------
2004 2003
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Interest income:
Loans, including fees $6,640,344 $6,257,448
Investment securities 1,706,843 1,621,372
Federal funds sold 8,224 33,106
Interest-bearing deposits in other banks 29 1,276
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Total interest income 8,355,440 7,913,202
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Interest expense:
Deposits 1,639,538 1,980,159
Federal funds purchased and securities sold
under repurchase agreements 177,388 167,572
Other borrowings 432,107 443,086
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Total interest expense 2,249,033 2,590,817
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Net interest income 6,106,407 5,322,385
Provision for loan losses 388,723 474,750
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Net interest income after provision for loan losses 5,717,684 4,847,635
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Noninterest income:
Service charges and fees on deposits 1,058,907 1,082,649
Gain on sale of loans 1,276,680 1,787,730
Investment securities gains, net 80,751 46,192
Retail investment income 95,555 90,937
Trust service fees 122,239 69,859
Increase in cash surrender value of
bank-owned life insurance 125,263 34,912
Miscellaneous income 99,332 97,312
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Total noninterest income 2,858,727 3,209,591
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Noninterest expense:
Salaries 2,513,124 2,755,773
Employee benefits 766,855 628,415
Occupancy expenses 619,164 581,346
Other operating expenses 1,699,930 1,271,463
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Total noninterest expense 5,599,073 5,236,997
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Income before income taxes 2,977,338 2,820,229
Income tax expense 971,248 968,042
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Net income $2,006,090 $1,852,187
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
----------------------
2004 2003
---------- ----------
Basic net income per share $ 0.38 $ 0.35
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Diluted net income per share $ 0.38 $ 0.35
========== ==========
Weighted average common shares outstanding 5,247,204 5,247,204
========== ==========
Weighted average number of common and
common equivalent shares outstanding 5,324,089 5,353,697
========== ==========