Georgia-Carolina Bancshares Announces Third Quarter 2013 Net Income & Quarterly Cash Dividend

AUGUSTA, Ga., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Georgia-Carolina Bancshares, Inc. (GECR.OB) (the "Company"), parent company of First Bank of Georgia, today reported net income of $843,000, or $0.23 per diluted common share, for the three months ended September 30, 2013, compared to net income of $2,242,000, or $0.62 per diluted common share, for the three months ended September 30, 2012. The Company reported net income of $5,269,000, or $1.47 per diluted common share, for the nine months ended September 30, 2013, compared to net income of $5,229,000, or $1.45 per diluted common share, for the nine months ended September 30, 2012.

Book value totaled $16.03 per common share at September 30, 2013, up from $15.50 per common share at September 30, 2012. Reported earnings represent a 12.13% return on average equity (annualized) and a 1.44% return on average assets (annualized) for the nine month period ended September 30, 2013.

Remer Y. Brinson III, President & CEO of the Company, stated, "The Company continues to report strong earnings performance through the first three quarters of 2013. Asset quality continues to improve and has resulted in a credit provision to our allowance for loan losses during the year. Through the first nine months of 2013, we have had net recoveries of 0.51% of average loans. Non-performing assets have declined to 1.66% of total assets, down from 1.88% one year ago. Third quarter earnings are down from recent quarters as mortgage volume declined and yields declined on the sale of mortgage loans due to increasing market interest rates."

Brinson continued, "We have seen an increase in loan demand during the year, although bank loan outstandings, excluding the allowance for loan loss, have declined slightly during the first nine months. However, deposit growth remains strong. Core deposits, excluding Certificates of Deposits, have grown 14.0% (annualized) during the year."

Total assets have declined 1.2% to $500.1 million since December 31, 2012. Total loans, excluding loans held for sale, declined 1.1% during the nine month period ended September, 2013, to $262.8 million. Core deposits totaled $273.6 million at September 30, 2013, compared to $247.6 million at December 31, 2012, an increase of 10.5%.

Georgia-Carolina Bancshares' Board of Directors declared a quarterly cash dividend of $0.045 per share of common stock payable on November 19, 2013, to shareholders of record as of November 12, 2013.

Georgia-Carolina Bancshares' common stock is quoted on the OTC Bulletin Board under the symbol "GECR". First Bank of Georgia conducts banking operations through offices in Richmond County (Augusta), Columbia County (Martinez and Evans), and McDuffie County (Thomson), Georgia and operates mortgage origination offices in Augusta and Savannah, Georgia.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which can generally be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans" or similar expressions to identify forward-looking statements, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic and market conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
September 30,
2013
December 31,
2012
(Unaudited)
ASSETS
Cash and due from banks $ 18,970 $ 30,279
Securities available-for-sale 156,571 132,760
Loans 262,815 265,831
Allowance for loan losses (5,174) (5,954)
Loans, net 257,641 259,877
Loans held for sale at fair value 27,694 48,432
Bank-owned life insurance 14,703 10,001
Bank premises and fixed assets 9,513 8,790
Accrued interest receivable 1,852 1,772
Other real estate owned, net of allowance 5,136 5,876
Federal Home Loan Bank stock 697 1,865
Other assets 7,348 6,523
Total assets $ 500,125 $ 506,175
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing $ 79,743 $ 70,880
Interest-bearing:
NOW accounts 56,752 57,482
Savings 61,164 64,236
Money market accounts 75,959 54,982
Time deposits of $100,000, and over 99,061 111,537
Other time deposits 56,700 57,839
Total deposits 429,379 416,956
Federal Home Loan Bank and other borrowings -- 25,028
Repurchase agreements 6,268 3,333
Other liabilities 7,313 4,533
Total liabilities 442,960 449,850
Shareholders' equity
Preferred stock, par value $.001; 1,000,000 shares authorized; none issued -- --
Common stock, par value $.001; 9,000,000 shares authorized; 3,565,246 and 3,528,296 shares issued and outstanding 4 4
Additional paid-in-capital 16,042 15,687
Retained earnings 43,984 39,177
Accumulated other comprehensive income (2,865) 1,457
Total shareholders' equity 57,165 56,325
Total liabilities and shareholders' equity $ 500,125 $ 506,175
GEORGIA-CAROLINA BANCSHARES, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Interest income 2013 2012 2013 2012
Interest and fees on loans $ 3,795 $ 4,579 $ 11,465 $ 13,754
Interest on taxable securities 635 502 1,784 1,542
Interest on nontaxable securities 143 109 386 335
Interest on Federal funds sold and other interest 8 10 42 51
Total interest income 4,581 5,200 13,677 15,682
Interest expense
Interest on time deposits of $100,000 or more 253 376 801 1,275
Interest on other deposits 255 349 811 1,088
Interest on funds purchased and other borrowings 4 220 14 670
Total interest expense 512 945 1,626 3,033
Net interest income 4,069 4,255 12,051 12,649
Provision for loan losses 15 (729) (1,787) (299)
Net interest income after provision for loan losses 4,054 4,984 13,838 12,948
Noninterest income
Service charges on deposits 414 380 1,174 1,114
Mortgage banking activities 1,765 3,929 6,462 8,724
Gain on sale of other real estate 22 10 181 16
Gain on sale of securities -- 10 91 11
Other income/loss 503 506 2,386 1,375
Total noninterest income 2,704 4,835 10,294 11,240
Noninterest expense
Salaries and employee benefits 3,299 3,449 9,664 9,351
Occupancy expenses 387 391 1,122 1,168
Other real estate expenses 351 918 1,053 1,409
Other expenses 1,596 1,749 4,875 4,610
Total noninterest expense 5,633 6,507 16,714 16,538
Income before income taxes 1,125 3,312 7,418 7,650
Income tax expense 282 1,070 2,149 2,421
Net income $ 843 $ 2,242 $ 5,269 $ 5,229
Net income per share of common stock
Basic $ 0.24 $ 0.62 $ 1.48 $ 1.45
Diluted $ 0.23 $ 0.62 $ 1.47 $ 1.45
Dividends per share of common stock $ 0.045 $ 0.040 $ 0.130 $ 0.080

CONTACT: Remer Y. Brinson III President & CEO remerbrinson@firstbankofga.com First Bank of Georgia 3527 Wheeler Rd Augusta, GA 30909 office (706) 731-6600 fax (706) 731-6601Source:Georgia-Carolina Bancshares, Inc.