EXHIBIT 99.1
October 22, 2004
Georgia Bank Financial Reports Third Quarter Earnings;
Georgia Bank Financial Corporation (OTCBB:GBFP), the holding company for
Georgia Bank & Trust Company of Augusta, today reported quarterly net income of
$2.3 million for the three months ended September 30, 2004 compared to $2.1
million in the third quarter of 2003, an increase of 10.7 percent. Diluted
earnings per share for the third quarter of 2004 were $0.44 versus $0.39 for the
third quarter of 2003, a 12.8 percent increase.
Net income for the nine months ended September 30, 2004 totaled $6.5
million, a 9.4 percent increase over the $5.9 million reported in the same
period of 2003. Diluted earnings per share for the nine months ended September
30, 2004 were $1.22 versus $1.11 per share for the nine months ended September
30, 2003, a 9.9 percent increase. Return on average assets was 1.34 percent for
the third quarter of 2004 and return on average shareholders' equity was 16.78
percent. For the first nine months of 2004, return on average assets was 1.30
percent and return on average shareholder's equity was 15.61 percent.
"The net income for the third quarter represents another quarter of strong
financial performance for Georgia Bank Financial Corporation. In an environment
of lower mortgage loan volumes and rising interest rates, we are pleased with
these results," stated R. Daniel Blanton, President and Chief Executive Officer.
Net interest income for the first nine months of 2004, a measure of core
earnings, was $18.9 million, up 13.6 percent from the $16.7 million in the
comparable nine months in 2003. Noninterest income, reflecting the lower volumes
of mortgage origination during the first nine months of 2004, was $9.4 million,
down from $11.5 million in the first nine months of 2003. Noninterest expense
was down to $17.7 million from $18.0 million for the comparable period in 2003.
"The combination of loan growth and improvement in the net interest margin
over the prior year created strong growth in net interest income over the prior
year quarter. Net interest income increased 11.6 percent over the prior year
quarter as loans increased 19.0 percent from the second quarter of 2003," stated
Ronald L. Thigpen, Executive Vice President and CEO.
As of September 30, 2004, loans outstanding were $472.3 million, reflecting
an increase of $54.1 million or 12.9 percent over September 30, 2003. Total
assets at September 30, 2004 were $688.7 million and total deposits were $543.6
million. This reflects an increase of 11.1 percent in assets and 13.1 percent in
deposits over September 30, 2003. Total assets and deposits were $620.1 million
and $480.5 million, respectively at September 30, 2003.
Georgia Bank & Trust Company currently operates eight offices in the Metro
Augusta market and is the largest locally-owned and operated bank in Richmond
and Columbia County. FDIC 2004 Deposit Market Share Reports place the bank as
the second largest in the combined two county market.
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Press Release
Page 2
October 22, 2004
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,
2004 December 31,
(Unaudited) 2003
------------- -------------
Cash and due from banks $ 16,320,275 $ 15,704,566
Interest-bearing deposits in other banks 511,797 17,318
------------- -------------
Cash and cash equivalents 16,832,072 15,721,884
Investment securities
Available-for-sale 166,371,791 151,394,463
Held-to-maturity, at cost (fair values of
$4,011,982 and $5,750,099, respectively) 3,776,525 5,437,519
Loans held for sale 13,816,174 14,047,080
Loans 458,446,919 418,632,111
Less allowance for loan losses (7,586,030) (7,277,589)
------------- -------------
Loans, net 450,860,889 411,354,522
Premises and equipment, net 18,308,807 14,250,543
Accrued interest receivable 3,480,150 3,784,888
Intangible assets, net 139,883 139,883
Bank-owned life insurance 11,342,420 10,971,633
Other assets 3,747,276 3,530,542
------------- -------------
$688,675,987 $630,632,957
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 80,614,105 $ 68,033,102
Interest-bearing:
NOW accounts 76,457,049 72,386,405
Savings 215,883,334 194,366,425
Money management accounts 24,769,895 22,137,192
Time deposits over $100,000 106,864,387 97,631,749
Other time deposits 39,040,176 29,396,929
------------- -------------
543,628,946 483,951,802
Federal funds purchased and securities sold
under repurchase agreements 40,908,605 56,968,754
Advances from Federal Home Loan Bank 40,000,000 30,000,000
Other borrowed funds 1,000,000 800,000
Accrued interest and other liabilities 5,441,441 5,223,354
------------- -------------
Total liabilities 630,978,992 576,943,910
------------- -------------
Stockholders' equity:
Common stock, $3.00 par value; 10,000,000
shares authorized; 5,284,746 shares issued;
5,249,004 and 5,247,204 shares outstanding in
2004 and 2003, respectively 15,850,038 15,854,238
Additional paid-in capital 34,235,517 34,337,584
Retained earnings 7,439,820 3,001,079
Treasury stock, at cost 35,742 and 37,542 shares in
2004 and 2003, respectively (462,745) (507,360)
Accumulated other comprehensive income 634,365 1,003,506
------------- -------------
Total stockholders' equity 57,696,995 53,689,047
------------- -------------
$688,675,987 $630,632,957
============= =============
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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,
----------------------- --------------------------
2004 2003 2004 2003
---------- ----------- ------------ ------------
Interest income:
Loans, including fees $7,073,443 $6,630,320 $20,504,835 $19,375,530
Investment securities 1,844,988 1,487,377 5,264,296 4,669,042
Federal funds sold 28,770 10,345 46,000 70,215
Interest-bearing deposits in other banks 497 (84) 540 3,496
---------- ----------- ------------ ------------
Total interest income 8,947,698 8,127,958 25,815,671 24,118,283
---------- ----------- ------------ ------------
Interest expense:
Deposits 1,784,792 1,715,861 5,098,812 5,635,878
Federal funds purchased and securities sold
under repurchase agreements 142,662 154,025 454,471 486,524
Other borrowings 470,573 447,923 1,348,610 1,338,929
---------- ----------- ------------ ------------
Total interest expense 2,398,027 2,317,809 6,901,893 7,461,331
---------- ----------- ------------ ------------
Net interest income 6,549,671 5,810,149 18,913,778 16,656,952
Provision for loan losses 493,103 218,833 1,013,023 1,125,388
---------- ----------- ------------ ------------
Net interest income after provision
for loan losses 6,056,568 5,591,316 17,900,755 15,531,564
---------- ----------- ------------ ------------
Noninterest income:
Service charges and fees on deposits 1,342,105 1,149,044 3,628,474 3,371,463
Gain on sale of loans 1,461,997 2,862,538 4,367,103 7,181,770
Investment securities gains (losses), net 1,833 (73,460) (2,709) (44,688)
Retail investment income 140,281 47,954 344,819 221,343
Trust service fees 147,239 97,451 405,309 247,086
Increase in cash surrender value of
bank-owned life insurance 118,701 129,166 370,787 202,090
Miscellaneous income 108,354 94,061 320,298 285,365
---------- ----------- ------------ ------------
Total noninterest income 3,320,510 4,306,754 9,434,081 11,464,429
---------- ----------- ------------ ------------
Noninterest expense:
Salaries 2,991,389 3,838,190 8,625,169 9,830,618
Employee benefits 693,087 727,505 2,190,042 2,037,439
Occupancy expenses 671,950 619,152 1,933,309 1,797,155
Other operating expenses 1,559,252 1,556,800 4,913,877 4,300,359
---------- ----------- ------------ ------------
Total noninterest expense 5,915,678 6,741,647 17,662,397 17,965,571
---------- ----------- ------------ ------------
Income before income taxes 3,461,400 3,156,423 9,672,439 9,030,422
Income tax expense 1,139,062 1,059,793 3,187,288 3,104,631
---------- ----------- ------------ ------------
Net income $2,322,338 $2,096,630 $ 6,485,151 $ 5,925,791
========== =========== ============ ============
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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,
---------------------- ----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Basic net income per share $ 0.44 $ 0.40 $ 1.24 $ 1.13
========== ========== ========== ==========
Diluted net income per share $ 0.44 $ 0.39 $ 1.22 $ 1.11
========== ========== ========== ==========
Weighted average common shares outstanding 5,248,734 5,247,204 5,247,718 5,247,204
========== ========== ========== ==========
Weighted average number of common and
common equivalent shares outstanding 5,323,323 5,362,008 5,324,300 5,358,078
========== ========== ========== ==========
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