GAINESVILLE, Ga., July 25, 2007 (PRIME NEWSWIRE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company operating seven community banks in fast-growing markets surrounding metropolitan Atlanta, reported second quarter 2007 net income of $3.1 million, or $0.22 per diluted share, a decline of 21.5 percent from net income of $4.0 million, or $0.28 per diluted share, reported for the 2006 second quarter. Compared with the first quarter of 2007, net income and diluted earnings per share declined 16.4 and 15.4 percent, respectively. For the first six months of 2007, GB&T Bancshares reported net income of $6.8 million, or $0.47 per diluted share, compared with $7.2 million, or $0.53 per share, a decline of 5.8 percent and 11.3 percent, respectively, from the comparable period in 2006. 2007 results reflect solid loan growth year over year, offset by further deterioration in credit quality, which has affected virtually all aspects of GB&T's performance. Earnings per share further reflect an increase of 2.5 percent and 5.9 percent, respectively, in weighted average diluted shares for the second quarter and the six month earnings comparisons, primarily resulting from the issuance of 1.1 million shares of GB&T's common stock in connection with the acquisition of Mountain Bancshares, Inc. in the second quarter of 2006.
Richard A. Hunt, President and CEO of GB&T Bancshares, commented, "I am not pleased with our performance but there were no major surprises. In the second quarter we incurred approximately $1.0 million in reversal of interest income on nonaccrual loans, $186,000 in professional fees and a $294,000 loss on the sale of a piece of other real estate for a total after-tax negative impact of $947,000 or $.07 per diluted share. It has been five months now since the problem loans at HomeTown Bank were discovered, and we have accomplished a lot during this time. Even before the HomeTown events became known to us, we had hired Sid Sims to be our new Chief Credit Officer, and Sid had begun the process of strengthening our credit controls. We have since engaged Sheshunoff Management Services to evaluate our controls while Sid has continued his due diligence.
"We had already begun identifying and remediating the weaknesses in our internal controls and work processes. But after the HomeTown Bank experience, we accelerated our efforts. We have since tightened internal controls, implemented more stringent credit administration policies, and centralized our loan approval and documentation processes. "On a more positive note," Mr. Hunt continued, "loan growth continues to be solid, although the pace of construction lending has slowed this year. Our expense control, in light of our lower revenues, has been exceptional, and our capital position is strong. We have also appointed a new president for HomeTown Bank, Mr. James I. Owens, Jr., who has had considerable credit administration experience as well as other bank leadership positions, primarily at AmSouth/Regions Bank. We still have a great deal to accomplish before we can rest, but we believe, and the Sheshunoff study confirms, that we have made significant progress."
At a meeting held on July 16, 2007, the board of directors of GB&T Bancshares declared a third quarter cash dividend of $0.095 per share on the Company's common stock, an increase of 5.6 percent over the prior-year quarter. The dividend is payable on August 10, 2007, to stockholders of record at the close of business on July 27, 2007.
Income Statement
Total revenue, defined as net interest income on a fully tax-equivalent basis plus noninterest income, was $19.7 million for the current quarter, a decline of 1.3 percent from $20.0 million reported in the second quarter of 2006. Net interest income was $17.0 million, down 2.4 percent from the $17.4 million reported for the prior-year second quarter, reflecting 10.8 percent growth in average earning assets, offset by a 53 basis point decline in the net interest margin, to 3.90 percent. Comparing the results of the second quarter against the first quarter of 2007, net interest income decreased $765,000, or 4.3 percent, from $17.7 million due to a 29 basis point drop in net interest margin, which offset the 1.6 percent (6.6 percent annualized) increase in average earning assets. Mr. Hunt added, "We lost approximately $1.8 million, including $1.0 million in the second quarter, in interest income on nonaccrual loans year-to-date, which has had a significant impact on our margin. Had we been able to recognize this amount in its entirety, our six-month net interest margin would have been 4.17 percent, or 13 basis points higher than we reported."
Other income for the second quarter of 2007 was $2.8 million, an increase of 6.4 percent compared with $2.6 million reported for the second quarter of 2006, and an increase of 0.8 percent from the first quarter of 2007. Service charges on deposit accounts continue to account for the majority of other income, increasing by $153,000 or 9.5 percent from the second quarter of 2006, and $271,000, or 18.2 percent, from the first quarter of 2007. Partially offsetting the growth in service charges is the $80,000, or 13.0 percent, year over year decline in mortgage origination fees, which were $536,000 for the current quarter; compared with the first quarter of this year, mortgage origination fees were lower by $178,000, or 24.9 percent, reflecting the slowdown in the local housing market. Mr. Hunt commented, "Although the slowing housing market is dampening mortgage origination volume, I am encouraged with the early progress of our new residential mortgage subsidiary with the addition of several new mortgage originators. As anticipated, even after one month of operation, we are seeing a larger percentage of origination fees translating to bottom line net income."
Other expense for the second quarter of 2007 increased $1.5 million, or 12.2 percent, to $14.1 million compared with the second quarter of 2006; expenses for the linked quarter increased a modest $251,000, or 1.8 percent from the first quarter of 2007. Salaries and employee benefits grew $701,000, or 9.4 percent, compared to the second quarter of 2006 and accounted for 45.6 percent of the year over year increase in other expense, reflecting the addition of 24 FTE employees over the past twelve months to 499 as management strengthened internal controls and began its mortgage banking activities. Relative to the first quarter of 2007, salaries and employee benefits expense decreased $76,000, or 0.9 percent, as management reduced headcount by six FTE employees from the previous quarter. Other operating expenses grew $694,000, or 20.4 percent, for the second quarter of 2007 as compared to the second quarter of 2006, and $378,000 or 10.2 percent compared with the first quarter of 2007; these charges include professional fees of $186,000 for the second quarter and $17,000 for the first quarter that were paid to lawyers and consultants related to the resolution of GB&T's problem loan portfolio. Also included in other operating expenses, was a $294,000 loss on sale of other real estate. The efficiency ratio was 70.9 percent for the second quarter of 2007 compared with 62.0 percent for the prior-year second quarter, and 67.0 percent for the previous quarter, primarily reflecting a lower level of net interest income for the 2007 quarters. Adjusting for lost income and the additional expenses related to the loan problems, the second quarter efficiency ratio would have been 67.15 percent, and for the first quarter, 65.13 percent.
Balance Sheet
Total assets were $2.0 billion at June 30, 2007, an increase of 8.5 percent over the past twelve months. Loans increased $137.5 million from June 30, 2006, or 9.7 percent, to $1.6 billion at June 30, 2007. Loan growth since March 31, 2007 was $33.9 million, or 2.2 percent (8.9 percent annualized), a pace relatively consistent over the past twelve month period, but about half the loan growth rate of FY 2006. The majority of second quarter loan growth was derived from a $28.6 million, or 27.9 percent, increase in commercial and industrial (C&I) loans compared to March 31, 2007 ending balances. Construction and commercial real estate lending contributed an additional $4.8 million and $3.5 million, respectively. While they remain the largest components of the bank's loan portfolio, with construction accounting for 48.7 percent of loans, and commercial real estate accounting for 25.3 percent, construction, in particular, is declining relative to the total mix.
Total deposits at June 30, 2007 were $1.5 billion, an increase of $134.4 million or 9.5 percent from June 30, 2006, and $35.0 million or 2.3 percent (9.2 percent annualized) from March 31, 2007. Time deposits continue to account for the majority of the increase in deposits, growing $125.1 million, or 15.6 percent, over a 12-month period, and $19.7 million, or 2.2 percent (8.7 percent annualized) from the previous quarter-end. Core deposits (noninterest-bearing, demand, savings, and time deposits under $100,000) accounted for 71.5 percent of total deposits at June 30, 2007; they increased $66.3 million, or 6.4 percent, to $1,106.4 million since June 30, 2006, and 2.0 percent (8.0 percent annualized) from the previous quarter-end. However, there was a notable increase in noninterest-bearing deposits since March 31, 2007; these deposits increased $14.3 million, or 9.4 percent (37.5 percent annualized) from March 31, 2007, to $166.6 million at June 30, 2007; non-interest bearing deposits accounted for 15.1 percent of core deposits at June 30, 2007, and contributed approximately 40.8 percent of second quarter 2007 deposit growth.
Asset Quality
Nonperforming assets at June 30, 2007 were $56.0 million, or 2.82 percent of total assets, compared with $34.5 million, or 1.79 percent at March 31, 2007, and $18.1 million, or 0.99 percent, at June 30, 2006. Of these totals, $15.6 million is foreclosed real estate in the second quarter of 2007, up from $4.2 million for the second quarter of 2006, and $4.2 million for the year-ago quarter. Mr. Hunt added, "The problem assets at HomeTown Bank account for nearly half of out total consolidated nonperforming assets and this bank represents 13% of total assets. Our largest nonperforming asset totaling $8.6 million was added in the second quarter of 2007 and is related to a development loan in Forsyth County, Georgia which is currently in the foreclosure process. We are optimistic about successfully resolving this in the third quarter."
Net charge-offs for the second quarter of 2007 were $1.4 million, or an annualized 0.36 percent of average loans, compared with $565,000 for the first quarter of 2007, or an annualized 0.15 percent, and $607,000, or 0.18 percent (annualized), for the second quarter of 2006. Loan loss reserves at June 30, 2007, were 1.58 percent of total loans compared to 1.64 at March 31, 2007 and 1.09 percent at June 30, 2006.
Stockholders' equity at June 30, 2007, was $236.3 million, a twelve-month increase of $7.8 million, or 3.4 percent. Stockholders' equity was 11.9 percent of period-end assets, and capital ratios are well within the range for "well-capitalized" banks. Mr. Hunt concluded, "This has been a long year so far, but the important part of this process is the progress we are making -- not only with the identification of problem assets and their resolution -- but also with the strengthening of our entire organization."
About GB&T Bancshares, Inc.
Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating seven community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South, First National Bank of Gwinnett, and Mountain State Bank. As of June 30, 2007, GB&T Bancshares had total assets of $2.0 billion, with 32 banking offices located in 14 Georgia counties. GB&T Bancshares' common stock is listed on the Nasdaq Global Select Market under the symbol "GBTB." Visit the Company's web site at: http://www.gbtbancshares.com for additional information.
Forward-Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding projected growth and profitability, perceived improvement in efficiencies and in internal controls, loan loss reserves, loan portfolio, identification of problem loans, anticipated recovery of principal due to our collateral position, improvement in our credit controls, net interest margin, revenue growth and other statements regarding our future results of operations are "forward-looking statements" within the meaning of the federal securities laws. In addition, when we use words like "anticipate", "believe", "intend", "expect", "estimate", "could", "should", "plan", "will", and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our current beliefs and assumptions. Factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins or the volumes or values of loans held or made by us; (3) general economic conditions may be less favorable than expected (both generally and in our markets), resulting in, among other things, a continued deterioration in credit quality and/or a reduction in demand for credit; (4) economic, governmental or other factors may prevent the projected population and commercial growth in the counties in which we operate; (5) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which we are engaged; (6) costs or difficulties related to the integration of our businesses may be greater than expected; (7) deposit attrition, customer loss or revenue loss following the acquisitions may be greater than expected; (8) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; and (9) adverse changes may occur in the equity markets. Many of these factors are beyond our ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements contained in this release.
GB&T Bancshares Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
----------------- ---------- --------- --------- --------- ---------
(Dollars in
thousands except
per share 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
amounts) 2007 2007 2006 2006 2006
----------------- ---------- --------- --------- --------- ---------
EARNINGS
Net interest
income (fully
tax equivalent) $ 16,953 17,718 18,171 18,397 17,374
Provision for
loan loss $ 914 911 11,475 1,789 1,274
Other income $ 2,778 2,756 2,675 2,764 2,611
Other expense $ 14,114 13,863 12,977 12,860 12,578
Net income $ 3,103 3,710 (1,925) 4,215 3,954
Non-recurring
(income)/
expense
(after-tax) $ 0 0 0 0 0
Operating income $ 3,103 3,710 (1,925) 4,215 3,954
PER SHARE DATA
Basic earnings
per share $ 0.22 0.26 (0.14) 0.30 0.29
Diluted earnings
per share $ 0.22 0.26 (0.13) 0.30 0.28
Operating
diluted
earnings per
share $ 0.22 0.26 (0.13) 0.30 0.28
Book value per
share $ 16.67 16.67 16.51 16.66 16.41
Tangible book
value per share $ 10.15 10.14 9.95 10.05 9.74
Cash dividend
per share $ 0.095 0.090 0.090 0.090 0.090
PERFORMANCE RATIOS
Return on
average assets 0.63% 0.79% -0.40% 0.90% 0.91%
Return on
average
tangible
assets 0.67% 0.83% -0.42% 0.95% 0.95%
Return on
average equity 5.24% 6.40% -3.22% 7.21% 7.23%
Return on
average
tangible
equity 8.59% 10.56% -5.29% 12.02% 11.72%
Net interest
margin (fully
tax equivalent) 3.90% 4.19% 4.23% 4.38% 4.43%
Other expense /
Average assets 2.89% 2.94% 2.71% 2.75% 2.88%
Efficiency Ratio 70.85% 66.96% 61.34% 59.84% 62.03%
Other income/
Total operating
revenue 14.18% 13.54% 12.96% 13.10% 13.11%
MARKET DATA
Market value per
share -- Period
end $ 16.70 18.13 22.17 21.05 21.76
Market as a %
of book 1.00 1.09 1.34 1.26 1.33
Cash dividend
yield 2.28% 1.99% 1.62% 1.71% 1.65%
Common stock
dividend payout
ratio 43.18% 34.62% -69.23% 30.00% 32.14%
Period-end
common shares
outstanding
(000) 14,176 14,174 14,132 14,054 13,926
Common stock
market
capitalization
($Millions) $ 236.74 256.97 313.30 295.83 303.03
CAPITAL & LIQUIDITY RATIOS
Period-end
equity to
assets 11.90% 12.24% 12.28% 12.48% 12.49%
Period-end
tangible equity
to tangible
assets 7.60% 7.82% 7.78% 7.92% 7.81%
Total risk-based
capital ratio N/A 12.09% 12.12% 12.31% 12.26%
Average loans to
average
deposits 101.00% 101.04% 99.86% 99.18% 100.92%
ASSET QUALITY
Net charge-offs $ 1,385 565 3,520 526 607
(Ann.) Net loan
charge-offs/
Average loans 0.361% 0.152% 0.948% 0.146% 0.178%
Nonaccrual loans $ 40,404 30,246 14,790 14,934 13,819
Foreclosed
assets $ 15,593 4,221 4,673 3,047 4,229
90-day past dues $ 12 10 10 12 7
Nonperforming
assets/ Total
assets** 2.82% 1.79% 1.59% 0.96% 0.99%
Allowance for
loan losses/
Total loans 1.58% 1.64% 1.65% 1.15% 1.09%
Allowance for
loan losses/
Nonperforming
assets** 43.83% 72.58% 81.59% 92.93% 85.63%
END OF PERIOD BALANCES
Total loans,
net of unearned
fees $1,558,628 1,524,746 1,497,701 1,457,873 1,421,176
Total assets $1,985,130 1,931,227 1,900,376 1,876,062 1,829,700
Total deposits $1,548,414 1,513,444 1,480,168 1,457,237 1,414,029
Total
stockholders'
equity $ 236,261 236,347 233,338 234,196 228,470
Full-time
equivalent
employees 499 505 505 497 475
AVERAGE BALANCES
Total loans,
net of unearned
fees $1,540,523 1,504,256 1,472,742 1,432,361 1,366,170
Total interest-
earning assets $1,743,596 1,715,447 1,706,123 1,666,388 1,573,013
Total assets $1,960,447 1,915,556 1,902,510 1,856,968 1,748,798
Total deposits $1,525,199 1,488,800 1,474,740 1,444,246 1,353,758
Total interest-
bearing
liabilities $1,546,234 1,507,626 1,470,151 1,437,952 1,343,727
Total
stockholders'
equity $ 237,317 235,182 237,313 231,831 219,387
---------- ---------
YTD YTD
6/30/2007 6/30/2006
---------- ---------
EARNINGS
Net interest income (fully tax equivalent) $ 34,671 32,891
Provision for loan loss $ 1,825 2,480
Other income $ 5,534 5,074
Other expense $ 27,977 24,322
Net income $ 6,813 7,231
Non-recurring (income)/expense (after-tax) $ 0 0
Operating income $ 6,813 7,231
PER SHARE DATA
Basic earnings per share $ 0.48 0.54
Diluted earnings per share $ 0.47 0.53
Operating diluted earnings per share $ 0.47 0.53
Book value per share $ 16.67 16.41
Tangible book value per share $ 10.15 9.74
Cash dividend per share $ 0.185 0.175
PERFORMANCE RATIOS
Return on average assets 0.71% 0.87%
Return on average tangible assets 0.74% 0.91%
Return on average equity 5.82% 6.93%
Return on average tangible equity 9.56% 10.81%
Net interest margin (fully tax equivalent) 4.04% 4.39%
Other expense / Average assets 2.91% 2.93%
Efficiency Ratio 68.87% 63.19%
Other income/Total operating revenue 13.86% 13.41%
MARKET DATA
Market value per share -- Period end $ 16.70 21.76
Market as a % of book 1.00 1.33
Cash dividend yield 2.22% 1.61%
Common stock dividend payout ratio 39.36% 33.02%
Period-end common shares outstanding (000) 14,176 13,926
Common stock market capitalization
($Millions) $ 236.74 303.03
CAPITAL & LIQUIDITY RATIOS
Period-end equity to assets 11.90% 12.49%
Period-end tangible equity to tangible assets 7.60% 7.81%
Total risk-based capital ratio N/A 12.26%
Average loans to average deposits 101.02% 101.18%
ASSET QUALITY
Net charge-offs $ 1,950 881
(Ann.) Net loan charge-offs/ Average loans 0.258 0.136%
Nonaccrual loans $ 40,404 13,819
Foreclosed assets $ 15,593 4,229
90-day past dues $ 12 7
Nonperforming assets/ Total assets** 2.82% 0.99%
Allowance for loan losses/ Total loans 1.58% 1.09%
Allowance for loan losses/Nonperforming
assets** 43.83% 85.63%
END OF PERIOD BALANCES
Total loans, net of unearned fees $1,558,628 1,421,176
Total assets $1,985,130 1,829,700
Total deposits $1,548,414 1,414,029
Total stockholders' equity $ 236,261 228,470
Full-time equivalent employees 499 475
AVERAGE BALANCES
Total loans, net of unearned fees $1,522,476 1,305,354
Total interest-earning assets $1,729,621 1,510,409
Total assets $1,938,123 1,672,952
Total deposits $1,507,099 1,290,074
Total interest-bearing liabilities $1,527,045 1,282,150
Total stockholders' equity $ 236,252 210,315
**Nonperforming assets includes nonaccrual loans, other impaired
loans, foreclosed assets and 90-day past dues.
The following table provides a detailed analysis of Non-GAAP
measures.
------- ------- ------- ------- -------
Reconciliation Table 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
(Dollars in thousands) 2007 2007 2006 2006 2006
---------------------- ------- ------- ------- ------- -------
Book value per share $ 16.67 16.67 16.51 16.66 16.41
Effect of intangible
assets per share $ (6.52) (6.53) (6.56) (6.61) (6.67)
Tangible book value per
share $ 10.15 10.14 9.95 10.05 9.74
Return on average
assets 0.63% 0.79% -0.40% 0.90% 0.91%
Effect of intangible
assets 0.04% 0.04% -0.02% 0.05% 0.04%
Return on average
tangible assets 0.67% 0.83% -0.42% 0.95% 0.95%
Return on average
equity 5.24% 6.40% -3.22% 7.21% 7.23%
Effect of intangible
assets 3.35% 4.16% -2.07% 4.81% 4.49%
Return on average
tangible equity 8.59% 10.56% -5.29% 12.02% 11.72%
Period end equity to
assets 11.90% 12.24% 12.28% 12.48% 12.49%
Effect of intangible
assets -4.30% -4.42% -4.50% -4.56% -4.68%
Period-end tangible
equity to tangible
assets 7.60% 7.82% 7.78% 7.92% 7.81%
Net interest margin
(fully tax equivalent) 3.90% 4.19% 4.23% 4.38% 4.43%
Effect of reversal of
interest income 0.15% 0.12% 0.00% 0.00% 0.00%
Adjusted Net interest
margin (fully tax
equivalent) 4.05% 4.31% 4.23% 4.38% 4.43%
Efficiency Ratio 70.85% 66.96% 61.34% 59.84% 62.03%
Effect of nonrecurring
expenses and reversal
of interest income -3.70% -1.83% 0.00% 0.00% 0.00%
Adjusted Efficiency
Ratio 67.15% 65.13% 61.34% 59.84% 62.03%
------- -------
YTD YTD
6/30/2007 6/30/2006
------- -------
Book value per share $ 16.67 16.41
Effect of intangible assets per share $ (6.52) (6.67)
Tangible book value per share $ 10.15 9.74
Return on average assets 0.71% 0.87%
Effect of intangible assets 0.03% 0.04%
Return on average tangible assets 0.74% 0.91%
Return on average equity 5.82% 6.93%
Effect of intangible assets 3.74% 3.88%
Return on average tangible equity 9.56% 10.81%
Period end equity to assets 11.90% 12.49%
Effect of intangible assets -4.30% -4.68%
Period-end tangible equity to tangible assets 7.60% 7.81%
Net interest margin (fully tax equivalent) 4.04% 4.39%
Effect of reversal of interest income 0.13% 0.00%
Adjusted Net interest margin (fully tax
equivalent) 4.17% 4.39%
Efficiency Ratio 68.87% 63.19%
Effect of nonrecurring expenses and reversal
of interest income -2.74% 0.00%
Adjusted Efficiency Ratio 66.13% 63.19%
GB&T Bancshares, Inc. and Subsidiaries
Consolidated Statements of Condition
6/30/2007 6/30/2006
Assets (in thousands): (Unaudited) (Unaudited)
Cash and due from banks $ 20,735 $ 29,632
Interest-bearing deposits in banks 4,965 1,596
Federal funds sold 9,062 10,970
Securities available-for-sale 217,432 198,602
Restricted equity securities, at cost 10,204 10,445
Loans, net of unearned income 1,558,628 1,421,176
Less allowance for loan losses 24,551 15,460
---------- ----------
Loans, net 1,534,077 1,405,716
---------- ----------
Premises and equipment, net 40,987 42,641
Goodwill 87,116 86,688
Intangible assets 5,204 6,152
Other assets 55,348 37,258
---------- ----------
Total assets $1,985,130 $1,829,700
========== ==========
Liabilities and Stockholders' Equity
(in thousands):
Deposits:
Noninterest-bearing $ 166,570 $ 168,772
Interest-bearing demand & savings 453,307 441,823
Time deposits 928,537 803,434
---------- ----------
Total deposits 1,548,414 1,414,029
Federal funds purchased and
securities sold under repurchase
agreements 44,551 29,364
Federal Home Loan Bank advances 105,323 110,723
Other borrowings 719 543
Other liabilities 19,964 16,673
Subordinated debt 29,898 29,898
---------- ----------
Total liabilities 1,748,869 1,601,230
---------- ----------
Stockholders' equity:
Capital stock 186,972 184,244
Retained earnings 52,339 48,378
Accumulated other comprehensive loss (3,050) (4,152)
---------- ----------
Total stockholders' equity 236,261 228,470
---------- ----------
Total liabilities and
stockholders' equity $1,985,130 $1,829,700
========== ==========
GB&T Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three months ended June 30, Six months ended June 30,
2007 2006 2007 2006
---------------------------- ------------------------
(Dollars in thousands, except per share amounts)
Interest income:
Loans, including
fees $ 32,441 $ 28,529 $ 64,598 $ 53,061
Taxable
securities 2,271 1,978 4,579 3,890
Nontaxable
securities 310 133 571 250
Federal funds
sold 107 97 215 196
Interest-bearing
deposits in banks 38 37 64 45
--------- --------- --------- ---------
Total interest
income 35,167 30,774 70,027 57,442
--------- --------- --------- ---------
Interest expense:
Deposits 15,993 11,523 31,124 20,955
Federal funds
purchased and
securities sold
under repurchase
agreements 397 304 790 528
Federal Home
Loan Bank
advances 1,323 989 2,422 1,952
Other borrowings 647 647 1,289 1,234
--------- --------- --------- ---------
Total
interest
expense 18,360 13,463 35,625 24,669
--------- --------- --------- ---------
Net interest
income 16,807 17,311 34,402 32,773
Provision for loan
losses 914 1,274 1,825 2,480
--------- --------- --------- ---------
Net interest
income after
provision
for loan
losses 15,893 16,037 32,577 30,293
--------- --------- --------- ---------
Other income:
Service charges
on deposit
accounts 1,758 1,605 3,245 3,126
Mortgage
origination fees 536 616 1,250 1,141
Insurance
commissions 4 5 4 7
Gain on sale of
securities -- -- -- --
Other operating
income 480 385 1,035 800
--------- --------- --------- ---------
Total other
income 2,778 2,611 5,534 5,074
--------- --------- --------- ---------
Other expense:
Salaries and
employee benefits 8,162 7,461 16,400 14,641
Net occupancy
and equipment
expense 1,851 1,710 3,753 3,339
Other operating
expenses 4,101 3,407 7,824 6,342
--------- --------- --------- ---------
Total other
expense 14,114 12,578 27,977 24,322
--------- --------- --------- ---------
Income before
income taxes 4,557 6,070 10,134 11,045
Income tax expense 1,454 2,116 3,321 3,814
--------- --------- --------- ---------
Net income $ 3,103 $ 3,954 $ 6,813 $ 7,231
========= ========= ========= =========
Earnings per
share:
Basic $ 0.22 $ 0.29 $ 0.48 $ 0.54
========= ========= ========= =========
Diluted $ 0.22 $ 0.28 $ 0.47 $ 0.53
========= ========= ========= =========
Weighted average
shares:
Basic 14,175 13,666 14,167 13,263
========= ========= ========= =========
Diluted 14,343 14,000 14,357 13,563
========= ========= ========= =========
Cash dividends per
common share $ 0.095 $ 0.090 $ 0.185 $ 0.175
========= ========= ========= =========
GB&T Bancshares, Inc.
Yield Analysis - June 30, 2007
(Dollars in thousands)
For the Six Months Ended For the Three Months Ended
June 30, 2007 June 30, 2007
-------------------------- --------------------------
Average Yields/ Average Yields/
balances Interest Rates balances Interest Rates
-------------------------- --------------------------
Assets
Interest
earning
assets:
Taxable
securities $ 201,817 $ 4,579 4.58% $ 201,519 $ 2,271 4.52%
Nontaxable
securities* 26,805 840 6.32% 28,782 456 6.35%
Federal
funds sold 8,439 215 5.14% 8,240 107 5.21%
Interest
bearing
deposits
in banks 2,845 64 4.54% 3,879 38 3.93%
Loans, net of
unearned
income 1,489,715 64,598 8.74% 1,501,176 32,441 8.67%
------------------- -------------------
Total
interest
earning
assets $1,729,621 $70,296 8.20% $1,743,596 $35,313 8.12%
------------------- -------------------
Noninterest
earning
assets:
Unrealized
gains (losses)
on securities (2,510) (2,382)
Allowance
for loan
losses (25,208) (25,460)
Nonaccrual
loans 32,760 39,347
Cash and
due from
banks 23,532 22,947
Other assets 179,928 182,399
-------------------------- --------------------------
Total
noninterest
earning
assets 208,502 216,851
-------------------------- --------------------------
Total assets $1,938,123 $1,960,447
-------------------------- --------------------------
Liabilities &
Shareholders'
Equity
Interest
bearing
liabilities:
Interest
bearing
demand
& savings $448,502 7,230 3.25% $ 450,156 3,695 3.29%
Time 904,765 23,894 5.33% 919,948 12,298 5.36%
Borrowings 173,778 4,501 5.22% 176,130 2,367 5.39%
------------------- -------------------
Total
interest
bearing
liabilities 1,527,045 35,625 4.70% 1,546,234 18,360 4.76%
------------------- -------------------
Noninterest
bearing
liabilities &
shareholders'
equity:
Noninterest
bearing
deposits 153,832 155,095
Other
liabilities 20,994 21,801
Shareholders'
equity 236,252 237,317
-------------------------- --------------------------
Total
liabilities &
shareholders'
equity $1,938,123 $1,960,447
-------------------------- --------------------------
Interest rate
differential 3.50% 3.36%
-------------------------- --------------------------
Net interest
income* 34,671 16,953
-------------------------- --------------------------
Net interest
margin* 4.04% 3.90%
-------------------------- --------------------------
*fully tax equivalent