EXHIBIT 99.1
APRIL 28, 2005
GEORGIA BANK FINANCIAL CORPORATION ANNOUNES FIRST QUARTER EARNINGS
Georgia Bank Financial Corporation, (OTCBB:GBFP) the holding company for
Georgia Bank & Trust Company of Augusta, today reported net income for the first
quarter increased 3.9% to $2,083,989, up from $2,006,090 in the first quarter of
2004. Diluted earnings per share were $0.39 compared to $0.38 for the same
quarter in 2004. Return on average assets was 1.17% for the first quarter of
2005 and return on average shareholder's equity was 14.14%.
As of March 31, 2005, Georgia Bank Financial Corporation has surpassed the
$750 million level of total assets just one year after reaching $650 million
with total assets of $750.9 million and total deposits of $591.2 million. This
reflects an increase of 14.8% in total assets over March 31, 2004 and 6.0% over
at December 31, 2004. Total loans were $524.0 million at March 31, 2005, up from
$458.2 million at March 31, 2004, an increase of 14.4% and up from $494.2
million at December 31, 2004. Total deposits were $691.8 million at March 31,
2005, an increase of 15.7% over the March 31, 2004 level of $598.1 million and
up 6.8% over the December 31, 2004 level of $647.5 million.
"R. Daniel Blanton, Georgia Bank Financial Corporation President and CEO
commented, "We are pleased with the performance of the Company during the first
quarter. We experienced strong loan and deposit growth and improved the
operating efficiency of the Company for the quarter."
"The earnings increase was the result of an 8.8% increase in net interest
income over the prior year quarter even as noninterest income decreased 5.5%
from the first quarter of 2004 due to lower mortgage refinance activity that
resulted from a higher interest rate environment," stated Ronald L. Thigpen,
Executive Vice President.
Georgia Bank Financial Corporation owns Georgia Bank & Trust Company of
Augusta which operates eight full service offices in the Metro Augusta market.
It is the largest locally-owned and operated community bank in the Augusta Metro
market.
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 Company's 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.
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GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
ASSETS March 31,
2005 December 31,
(Unaudited) 2004
-------------- --------------
Cash and due from banks $ 18,012,367 $ 13,186,173
Federal Funds Sold 7,902,000 12,326,000
Interest-bearing deposits in other banks 512,042 512,024
-------------- --------------
Cash and cash equivalents 26,426,409 26,024,197
Investment securities
Available-for-sale 166,476,947 152,637,090
Held-to-maturity, at cost (fair values of
$3,997,361 and $5,750,099, respectively) 3,776,331 3,776,428
Loans held for sale 14,836,202 14,778,614
Loans 509,139,548 479,391,209
Less allowance for loan losses (8,303,038) (7,930,366)
-------------- --------------
Loans, net 500,836,510 471,460,843
Premises and equipment, net 18,325,776 18,437,500
Accrued interest receivable 3,602,690 3,638,247
Intangible assets, net 139,883 139,883
Bank-owned life insurance 11,546,380 11,463,591
Other assets 4,814,115 4,160,918
-------------- --------------
$ 750,881,243 $ 706,517,311
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 87,565,729 $ 80,798,355
Interest-bearing:
NOW accounts 84,168,916 80,417,657
Savings 246,569,605 225,533,029
Money management accounts 25,776,001 25,142,955
Time deposits over $100,000 112,341,758 106,835,743
Other time deposits 34,792,436 38,056,932
-------------- --------------
591,214,445 556,784,671
Federal funds purchased and securities sold
under repurchase agreements 49,289,438 44,581,259
Advances from Federal Home Loan Bank 45,000,000 40,000,000
Other borrowed funds 1,000,000 900,000
Accrued interest and other liabilities 5,284,722 5,271,556
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Total liabilities 691,788,605 647,537,486
-------------- --------------
Stockholders' equity:
Common stock, $3.00 par value; 10,000,000
shares authorized; 5,283,346 and 5,284,746 shares issued
In 2004 and 2003 respectively; 5,249,604 and 5,247,204 shares
outstanding in 2004 and 2003, respectively 15,837,681 15,855,669
Additional paid-in capital 34,234,758 34,381,141
Retained earnings 10,280,173 8,878,633
Treasury stock, at cost 35,742 and 37,542 shares in
2004 and 2003, respectively (332,755) (497,127)
Accumulated other comprehensive income (927,219) 361,509
-------------- --------------
Total stockholders' equity 59,092,638 58,979,825
-------------- --------------
$ 750,881,243 $ 706,517,311
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2
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
-----------------------
2005 2004
----------- ----------
Interest income:
Loans, including fees $ 8,243,538 $6,640,344
Investment securities 1,764,542 1,706,843
Federal funds sold 55,607 8,224
Interest-bearing deposits in other banks 2,433 29
----------- ----------
Total interest income 10,066,120 8,355,440
----------- ----------
Interest expense:
Deposits 2,645,590 1,639,538
Federal funds purchased and securities sold
under repurchase agreements 271,970 177,388
Other borrowings 507,827, 432,107
----------- ----------
Total interest expense 3,425,387 2,249,033
----------- ----------
Net interest income 6,640,733 6,106,407
Provision for loan losses 471,694 388,723
----------- ----------
Net interest income after provision
for loan losses 6,169,039 5,717,684
----------- ----------
Noninterest income:
Service charges and fees on deposits 1,211,050 1,058,907
Gain on sale of loans 1,042,183 1,276,680
Investment securities losses, net 791 80,751
Retail investment income 81,963 95,555
Trust service fees 156,912 122,239
Increase in cash surrender value of
bank-owned life insurance 82,789 125,263
Miscellaneous income 125,102 99,332
----------- ----------
Total noninterest income 2,700,790 2,858,727
----------- ----------
Noninterest expense:
Salaries 2,749,539 2,513,124
Employee benefits 809,444 766,855
Occupancy expenses 673,093 619,164
Other operating expenses 1,505,162 1,699,930
----------- ----------
Total noninterest expense 5,737,238 5,599,073
----------- ----------
Income before income taxes 3,132,591 2,977,338
Income tax expense 1,048,602 971,248
----------- ----------
Net income $ 2,083,989 $2,006,090
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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 $ 0.40 $ 0.38
========== ==========
Diluted net income per share $ 0.39 $ 0.38
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Weighted average common shares outstanding 5,253,526 5,247,204
========== ==========
Weighted average number of common and
common equivalent shares outstanding 5,331,762 5,324,089
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