GAINESVILLE, Ga., April 20, 2005 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a fast-growing multi-bank holding company operating six community banks based in Georgia, reported first quarter 2005 net income of $3.0 million, a 35.0 percent increase over the $2.2 million reported for the first quarter of 2004. Strong earnings reflect the Company's double-digit balance sheet growth achieved through organic expansion combined with an active acquisition strategy. During the last twelve months, loans increased 51.8 percent and core deposits increased 46.8 percent.
Diluted earnings per share for the first quarter of 2005 were $0.25 compared with $0.26 for the prior-year period. The earnings per share comparison reflects a 41.1 percent increase in average diluted shares outstanding to 12,245,467 arising from shares issued in connection with three bank acquisitions over the past 12 months and a public offering of 1,651,680 shares completed in the fourth quarter of 2004.
At a meeting held on April 18, 2005, the Board of Directors of GB&T Bancshares declared a second quarter cash dividend of $0.085 per share on the Company's common stock. This represents an increase of $0.009, or 11.8 percent, above the previous quarter. The declared dividend is payable on May 13, 2005 to shareholders of record as of the close of business on May 2, 2005.
The annualized returns on average assets ("ROA") and average equity ("ROE") for the first quarter of 2005 were 0.91 percent and 6.65 percent, respectively, compared with 0.93 percent and 9.14 percent for the prior-year first quarter. Adjusted to exclude intangibles, the annualized return on average tangible assets ("ROTA") and average tangible equity ("ROTE") were 0.95 percent and 9.98 percent, respectively, compared with 0.97 percent and 13.77 percent for the prior-year first quarter.
Richard A. Hunt, President and CEO, commented, "We are extremely pleased with our performance this quarter. Our earnings continue to strengthen as we selectively expand our franchise into attractive, growing Georgia communities. Each market that we enter provides on-going opportunities for commercial loan and core deposit growth; organic loan growth for the past twelve months was 17.3 percent and organic core deposits grew 15.1 percent and now account for 51.6 percent of our deposit base. We believe a balance of acquisitions and continued organic growth is the best strategy to maximize shareholder value over time.
"We are strongly committed to the concept of community banking, and we strive to maintain a combination of service, expertise and local decision-making in each of our banks. Our latest acquisition, Gwinnett-based FNBG Bancshares, Inc., parent of First National Bank of Gwinnett, reflects this philosophy. We look forward to enhancing its reputation and expanding its customer base in the thriving, populous county of Gwinnett."
Total revenue, defined as net interest income plus non-interest income, was $15.5 million for the first quarter of 2005, an increase of 31.5 percent over the $11.8 million reported in the first quarter of 2004. Since the first quarter of 2004, net interest income increased 43.4 percent, to $12.7 million, reflecting a 39.1 percent growth in average earning assets and a 16 basis point increase in the net interest margin to 4.29 percent (a 10 basis point increase from the preceding quarter). Mr. Hunt noted, "Our commercial loan and core deposit growth should position us for wider margins in this rising rate environment. We are pleased with this quarter's margin improvement and anticipate a continuation of this trend near term."
Non-interest income for the first quarter of 2005 was $2.8 million, compared with $2.9 million for the first quarter of 2004. Excluding gains from the sale of investment securities in both periods, non-interest income increased 4.6 percent to $2.8 million. Service charges on deposit accounts, up 8.5 percent, represented the largest dollar increase in fee income. Other categories showed only modest changes.
Non-interest expense was well-controlled, and was outpaced by both asset growth and revenue growth. Non-interest expense was $10.6 million in the first quarter of 2005, an increase of 26.9 percent over the $8.3 million reported for the first quarter of 2004, resulting in improved efficiencies. Salaries and employee benefits expense, the largest component of non-interest expense, increased 28.0 percent; the number of full-time equivalent employees increased 17.8 percent, primarily as a result of the three recent acquisitions. GB&T Bancshares' efficiency ratio improved to 68.35 percent for the first quarter of 2005 from 72.45 percent for the prior-year first quarter.
Nonperforming assets at March 31, 2005, were 0.82 percent of assets compared with 0.86 percent at December 31, 2004 and 0.62 percent at March 31, 2004. Annualized net charge-offs for the first quarter of 2005 were 0.14 percent of average loans compared with 0.29 percent for the fourth quarter of 2004 and 0.003 percent for the first quarter of 2004. Loan loss reserves at March 31, 2005 were 1.13 percent of total loans. Mr. Hunt commented, "Our asset quality is sound. Nonperforming assets on a relative basis improved modestly over the linked quarter and our charge-offs continue to be low. The year-over-year increase in nonperforming assets reflects a secured commercial loan added to nonperforming status in the fourth quarter of 2004. We are comfortable with our reserve coverage on that loan."
Total assets were $1.5 billion at March 31, 2005, an increase of $496.4 million, or 50.9 percent, from March 31, 2004. The FNBG Bancshares, Inc., Lumpkin County Bank and Southern Heritage Bancorp, Inc. acquisitions accounted for $349.3 million or 70.4 percent of the increase. Excluding these three acquisitions, organic growth during this same period was $147.1 million or 15.1 percent. Loans rose $375.1 million or 51.8 percent to $1.1 billion at March 31, 2005 compared with the prior-year first quarter. Exclusive of the three acquisitions, which accounted for $249.8 million of this increase, loans grew $125.3 million, or 17.3 percent. Total deposits increased to $1.1 billion, up $338.0 million or 44.6 percent from year-ago levels. Also excluding the acquisitions, total deposits increased $64.2 million, or 8.5 percent.
Shareholders' equity at March 31, 2005 was $199.4 million, a twelve-month increase of $100.0 million, or 100.7 percent, reflecting the impact of two bank acquisitions during the third quarter of 2004, one acquisition during the first quarter of 2005 and a public offering during the fourth quarter of 2004. Shareholders' equity was 13.6 percent of period-end assets. GB&T Bancshares had 12,641,076 shares of common stock outstanding at March 31, 2005.
About GB&T Bancshares, Inc.
Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating six community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, First National Bank of the South and First National Bank of Gwinnett. In addition, the Company owns a consumer finance company, Community Loan Company, with eight offices located in Northern Georgia. As of March 31, 2005, GB&T Bancshares had assets of $1.5 billion, with 26 branches located in high-growth Georgia markets. GB&T Bancshares' common stock is listed on the Nasdaq National Market under the symbol "GBTB." Visit the Company's website www.gbt.com for additional information about GB&T.
Forward-Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding our proposed acquisitions, projected growth in the counties in which we operate, our efficiency, loan loss reserves, 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", "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 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.
G B & T Bancshares Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share amounts)
-----------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2005 2004 2004 2004 2004
---------- --------- --------- --------- --------
EARNINGS
Net interest
income $ 12,746 11,716 10,610 9,110 8,886
Provision for
loan loss $ 482 465 332 325 284
Other income $ 2,757 3,238 2,699 2,942 2,899
Other expense $ 10,595 9,901 9,456 8,475 8,348
Net income $ 3,011 2,975 2,400 2,233 2,230
Non-recurring
income/expense
(after-tax) $ 0 230 127 0 0
Operating
income $ 3,011 2,745 2,527 2,233 2,230
PER SHARE DATA
Basic earnings
per share $ 0.25 0.28 0.25 0.26 0.26
Diluted
earnings
per share $ 0.25 0.27 0.25 0.26 0.26
Operating
diluted
earnings
per share $ 0.25 0.25 0.26 0.26 0.26
Book value per
share $ 15.77 14.84 13.57 11.57 11.65
Tangible book
value per
share $ 9.90 10.19 8.11 7.75 7.79
Cash dividend
per share $ 0.076 0.076 0.076 0.076 0.072
PERFORMANCE
RATIOS
Return on
average assets 0.91% 0.95% 0.84% 0.91% 0.93%
Return on
average
tangible assets 0.95% 0.99% 0.88% 0.94% 0.97%
Return on
average equity 6.65% 7.74% 7.80% 9.05% 9.14%
Return on
average
tangible equity 9.98% 12.06% 12.72% 13.53% 13.77%
Net interest
margin 4.29% 4.19% 4.15% 4.09% 4.13%
Other expense/
Average assets 3.19% 3.16% 3.33% 3.44% 3.49%
Efficiency Ratio 68.35% 67.90% 69.51% 72.40% 72.45%
Other income/
Total operating
revenue 17.78% 19.65% 20.28% 22.18% 22.88%
MARKET DATA
Market value
per share --
Period end $ 21.66 24.12 22.06 23.90 22.52
Market as a %
of book 1.37 1.63 1.63 2.07 1.93
Cash dividend
yield 1.40% 1.26% 1.38% 1.27% 1.28%
Common stock
dividend payout
ratio 30.40% 28.15% 30.40% 29.23% 28.13%
Period-end
common shares
outstanding
(000) 12,641 11,772 10,052 8,593 8,528
Common stock
market
capitalization
($ Millions) $ 273.81 283.95 221.74 205.37 192.04
CAPITAL &
LIQUIDITY
Equity to assets 13.56% 13.71% 11.23% 9.94% 10.20%
Period-end
tangible equity
to tangible
assets 8.97% 9.84% 7.03% 6.88% 7.06%
Total risk-
based capital
ratio n/a 16.27% 12.95% 11.66% 11.78%
Average loans
to deposits 101.38% 97.99% 96.09% 95.54% 97.39%
ASSET QUALITY
Net charge-
offs $ 346 666 132 342 6
(Ann.) Net loan
charge-offs/
Average loans 0.140% 0.285% 0.062% 0.186% 0.003%
Non-performing
loans $ 10,213 10,059 4,905 2,511 2,951
OREOs $ 1,451 620 1,240 1,368 2,053
90-day past
dues $ 364 328 1,110 1,096 1,053
NPAs + 90 day
past due/
Total assets 0.82% 0.86% 0.60% 0.50% 0.62%
Allowance for
loan losses/
Total loans 1.13% 1.16% 1.25% 1.21% 1.24%
Allowance for
loan losses/
NPA's + 90
days past due 103.64% 100.49% 155.23% 180.64% 148.65%
END OF PERIOD
BALANCES
Total loans,
net of un-
earned fees $1,099,344 955,880 904,407 745,437 724,282
Total assets $1,470,574 1,274,136 1,215,373 1,000,519 974,213
Deposits $1,096,190 928,603 940,867 778,364 758,178
Stockholders'
equity $ 199,367 174,715 136,440 99,431 99,327
Full-time
equivalent
employees 457 453 440 384 388
AVERAGE
BALANCES
Loans $1,004,588 928,935 840,569 738,092 720,063
Total earning
assets $1,204,489 1,111,717 1,016,482 896,534 866,228
Total assets $1,347,362 1,246,184 1,130,820 990,519 960,962
Deposits $ 990,944 947,975 874,783 772,587 739,353
Stockholders'
equity $ 183,586 152,932 122,336 99,254 98,137
The following table provides a detailed analysis of Non-GAAP
measures.
Reconciliation Table
(Dollars in thousands)
--------------------------------------------------------------------
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2005 2004 2004 2004 2004
---------- --------- --------- --------- --------
Book value
per share $ 15.77 14.84 13.57 11.57 11.65
Effect of
intangible
assets per
share $ (5.87) (4.65) (5.46) (3.82) (3.86)
Tangible book
value per
share $ 9.90 10.19 8.11 7.75 7.79
Return on
average assets 0.91% 0.95% 0.84% 0.91% 0.93%
Effect of in-
tangible assets 0.04% 0.04% 0.04% 0.03% 0.05%
Return on average
tangible assets 0.95% 0.99% 0.88% 0.94% 0.97%
Return on average
equity 6.65% 7.74% 7.80% 9.05% 9.14%
Effect of in-
tangible assets 3.33% 4.32% 4.93% 4.48% 4.63%
Return on average
tangible equity 9.98% 12.06% 12.72% 13.53% 13.77%
Equity to assets 13.56% 13.71% 11.23% 9.94% 10.20%
Effect of in-
tangible assets -4.59% -3.88% -4.20% -3.06% -3.14%
Period-end
tangible equity
to tangible
assets 8.97% 9.84% 7.03% 6.88% 7.06%
GB&T Bancshares, Inc.
Condensed Consolidated Statement of Condition
3/31/2005 3/31/2004
Assets (in thousands): (Unaudited) (Unaudited)
----------- -----------
Cash and due from banks $ 29,522 $ 18,237
Interest-bearing deposits in banks 823 546
Federal funds sold 10,818 16,306
----------- -----------
Total cash and equivalents 41,163 35,089
----------- -----------
Securities available-for-sale,
at fair value 196,613 137,249
Restricted equity securities 8,734 4,763
----------- -----------
Total securities 205,347 142,012
----------- -----------
Loans 1,099,344 724,282
Allowance for loan losses 12,466 9,004
----------- -----------
Loans, net 1,086,878 715,278
----------- -----------
Premises and equipment 36,096 25,950
Goodwill and intangible assets 74,550 32,909
Other assets 26,540 22,975
----------- -----------
Total assets $ 1,470,574 $ 974,213
=========== ===========
Liabilities and Stockholders' Equity
(in thousands):
Deposits
Non interest-bearing $ 142,496 $ 86,797
Interest-bearing 953,694 671,381
----------- -----------
Total deposits 1,096,190 758,178
----------- -----------
Federal funds purchased and securities
sold under repurchase agreements 30,584 11,973
Federal Home Loan Bank advances 97,891 77,580
Other borrowings 838 1,330
Other liabilities 15,806 10,361
Company guaranteed trust preferred
securities 29,898 15,464
----------- -----------
Total liabilities 1,271,207 874,886
----------- -----------
Stockholders' equity:
Capital stock 163,691 68,280
Retained earnings 37,666 30,012
Accumulated other comprehensive
income (loss) (1,990) 1,035
----------- -----------
Total stockholders' equity 199,367 99,327
----------- -----------
Total liabilities and
stockholders' equity $ 1,470,574 $ 974,213
=========== ===========
GB&T BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended
March 31,
2005 2004
------- -------
(Dollars in thousands,
except per share amounts)
Interest income:
Loans, including fees $16,959 $11,645
Taxable securities 1,699 985
Nontaxable securities 165 184
Federal funds sold 46 27
Interest-bearing deposits in banks 10 1
------- -------
Total interest income 18,879 12,842
------- -------
Interest expense:
Deposits 4,631 2,903
Federal funds purchased and securities sold
under repurchase agreements 155 48
Federal Home Loan Bank advances 874 800
Other borrowings 473 205
------- -------
Total interest expense 6,133 3,956
------- -------
Net interest income 12,746 8,886
Provision for loan losses 482 284
------- -------
Net interest income after
provision for loan losses 12,264 8,602
------- -------
Other income:
Service charges on deposit accounts 1,512 1,394
Mortgage origination fees 465 460
Insurance commissions 147 144
Gain on sale of securities 1 263
Other operating income 632 638
------- -------
Total other income 2,757 2,899
------- -------
Other expense:
Salaries and employee benefits 6,315 4,933
Net occupancy and equipment expense 1,439 1,222
Other operating expenses 2,841 2,193
------- -------
Total other expense 10,595 8,348
------- -------
Income before income taxes 4,426 3,153
Income tax expense 1,415 923
------- -------
Net income $ 3,011 $ 2,230
======= =======
Earnings per share:
Basic $ 0.25 $ 0.26
======= =======
Diluted $ 0.25 $ 0.26
======= =======
Weighted average shares
Basic 12,069 8,511
======= =======
Diluted 12,245 8,679
======= =======
Cash dividends per common share $ 0.076 $ 0.072
======= =======