GAINESVILLE, Ga., Oct. 21, 2003 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company comprised of five Georgia community banks, reported third quarter 2003 net income of $1.48 million, compared to $1.53 million reported in the prior-year third quarter. Diluted earnings per share were $0.24, compared to $0.31 reported in the third quarter 2002. Earnings reflect a 36.5 percent growth in average earning assets achieved both organically and through acquisitions, offset by a $0.68 million reserve established on a currently performing loan relationship which is secured by real-estate. Per share results were further impacted by a 23.1 percent increase in average diluted shares outstanding to 6,054,000 as a result of shares issued for the acquisitions of HomeTown Bank of Villa Rica ($109 million in assets), which closed November 30, 2002, and First National Bank of the South ($127 million in assets), which closed August 29, 2003.
For the first nine months of this year, net income was $4.9 million, up 9.1 percent from the prior-year nine month period, while diluted earnings per share declined to $0.86 from $0.92. The nine-month per share comparison reflects a 16.6 percent increase in average diluted shares outstanding from shares issued in the above-mentioned acquisitions.
At a meeting held October 20, 2003, the Board of Directors of GB&T Bancshares declared a cash dividend of $0.09 per share on the Company's common stock. The newly-declared dividend is payable on November 13, 2003 to shareholders of record as of the close of business on November 3, 2003.
The returns on average assets and average equity for the third quarter of 2003 were 0.72 percent and 7.93 percent, respectively, compared with 1.04 percent and 12.56 percent for the third quarter of 2002.
Richard A. Hunt, President and CEO, commented, "The third quarter was extremely fast-paced, as we continue to consolidate our recently-acquired companies and further expand into growing Georgia markets. This quarter, we completed the acquisition of First National Bank of the South, giving us a foothold in an affluent resort and second-home area southeast of Atlanta that has experienced significant growth and development. Consistent with our community banking philosophy, First National Bank of the South will continue to maintain its name, board and management team. Our experience has taught us that customer satisfaction, as well as long-term revenue growth, are maximized with this approach."
Mr. Hunt continued, "As a result of our several recent acquisitions, our revenue and expense base do not yet fully reflect the impact of growth opportunities nor cost-saving efficiencies. We are working with newly-hired and recently-acquired lenders to maximize their effectiveness in our markets; at the same time, expense levels take time to work through staffing and infrastructure issues. Over time, we want to see the income statement more fully reflect the earnings potential of our asset base and dynamic marketplace. We are pleased to see the efficiency ratio improving as we make progress.
"Our portfolio has performed consistently this past year, and loan quality continues to be good. The newly-identified relationship, from a recent acquisition, is currently performing and we believe adequately secured. We continue to monitor its progress, and believe the situation is improving as we work with the borrower. Overall, our loan portfolio is nearly 90 percent secured by real property which we believe provides strong assurance of ultimate collectibility."
Total revenue, comprised of net interest income and non-interest income, was $10.4 million for the third quarter of 2003, an increase of 28.3 percent over the $8.1 million reported in the prior-year third quarter. Net interest income rose 27.1 percent to $7.9 million, reflecting a 36.5 percent increase in average earning assets partially offset by a 30 basis point decline in the net interest margin, to 4.18 percent. Mr. Hunt noted, "We stabilized the net interest margin within a narrow band throughout 2003, and we see this situation continuing until interest rates eventually rise. The net interest margin was only six basis points lower this quarter than in the second quarter of this year. Loan growth continues to be very strong, reflective of our strong local economy and lenders who are becoming increasingly effective within their local markets.
Non-interest income for the third quarter of 2003 was $2.5 million, an increase of 32.1 percent above the prior-year third quarter. Growth in fee income reflects a combination of acquisition and organic growth, led by growth in service fee income and mortgage origination fees. Mortgage production activity remained strong during the quarter, although origination activity has recently started to taper off. Non-interest income contributed 24.3 percent of operating revenue compared with 23.6 percent a year ago.
Non-interest expense for the third quarter of 2003 was $7.3 million, an increase of 30.3 percent over the prior-year third quarter, again reflecting a combination of acquisition and organic growth. Salaries and employee benefits, the largest component of expense growth, increased 38.2 percent, reflecting the combined impact of a 40.9 percent increase in FTE staff as a result of acquisitions offset by improved staffing efficiencies, as well as merit increases. GB&T Bancshares' efficiency ratio was 71.0 percent for the current quarter compared to 72.1 percent for the previous quarter and 69.7 percent for the third quarter of 2002.
Non-performing assets and charge-offs have remained at reasonable levels as a percent of total assets and average loans, respectively. Mr. Hunt commented, "The dollar level of non-performing assets has increased along with our recent acquisitions; however, we are conservatively postured in our loan loss reserve levels." Past due and non-performing assets now stand at $6.9 million, or 0.75 percent of total assets, compared with $8.2 million and 1.11 percent, respectively, at December 31, 2002, and $3.3 million and 0.55 percent, in the third quarter of 2002. Net charge-offs on an annualized basis were 0.10 percent of average loans for the current quarter compared with 0.29 percent for the fourth quarter of 2002 and 0.11 percent for the prior-year quarter. At period-end, the loan loss reserve was 1.33% of total loans, up from 1.28% at the year-ago quarter.
Total assets were $918.4 million at September 30, 2003, an increase of $318.9 million, or 53.2 percent, from the prior year quarter-end. HomeTown Bank and First National Bank of the South accounted for $236 million, or 74.0 percent, of the increase, while $83 million of the asset growth was organic. Loans rose $233.6 million, or 51.7 percent, to $685.1 million. Total deposits grew by $242.9 million, or 51.7 percent, to $712.3 million.
Shareholders' equity ended the quarter at $95.2 million, a twelve-month increase of $45.9 million, or 93.0 percent, reflecting the impact of the acquisitions of HomeTown Bank and First National Bank of the South. Equity was 10.36 percent of period-end assets. At quarter-end, GB&T Bancshares had 6,792,326 shares of common stock outstanding.
About GB&T Bancshares, Inc.
Based in Gainesville, Georgia, GB&T Bancshares, Inc. is a multi-bank holding company operating five community banks: Gainesville Bank & Trust, United Bank & Trust, Community Trust Bank, HomeTown Bank of Villa Rica, and First National Bank of the South. In addition, the Company owns a consumer finance company, Community Loan Company, with eight offices located in Northern Georgia. As of September 30, 2003, GB&T Bancshares had assets of $918 million, with 20 branches located in growing Georgia markets. GB&T Bancshares' common stock is listed on the Nasdaq National Market under the symbol "GBTB." Please visit our website www.gbt.com for additional information about the company.
Forward-Looking Statements
This release contains forward-looking statements, including statements regarding GB&T's objectives and expectations regarding its future expansion, integration of recently acquired banks, cost savings from recent acquisitions, efficiency, loan portfolio, loan loss reserves, net interest margin, revenue growth and other statements regarding its plans, goals and expectations, which statements are based upon management's beliefs as well as on assumptions made by and data currently available to management. These forward-looking statements are not guarantees of future performance and a variety of factors could cause GB&T's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting GB&T, summarizes several factors that could cause GB&T's actual results to differ materially from those anticipated or expected in these forward-looking statements: economic conditions (both generally and more specifically in the markets where GB&T operates) may be worse than expected, resulting in, among other things, a deterioration in credit quality or a reduced demand for credit; we may be negatively impacted by competition from other companies that provide financial services similar to those offered by GB&T; legislative changes, including changes in accounting standards, may adversely affect the business of GB&T; changes in interest rates may reduce the operating margins or the volumes or values of loans held or made by GB&T; technological changes may increase competitive pressures and increase GB&T's costs, that GB&T may not be able to integrate acquisitions into its existing operations or that new acquisition and alliance opportunities that enhance shareholder value may not be available on terms acceptable to GB&T; and certain other risk factors set forth in our filings with the SEC may impact GB&T. GB&T disclaims any obligation to update or revise publicly or otherwise any forward-looking statements to reflect subsequent events, new information or future circumstances.
GB&T Bancshares Inc. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) --------------------------------------------- 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2003 2003 2003 2002 2002 -------- -------- -------- -------- -------- (dollars in thousands except per share data) EARNINGS Net interest income $ 7,865 7,341 6,997 6,409 6,186 Provision for loan loss $ 861 176 214 256 202 Non-interest income $ 2,524 2,392 2,352 2,663 1,910 Non-interest expense $ 7,319 7,291 6,801 5,924 5,616 Net income $ 1,478 1,733 1,711 2,018 1,534 PER SHARE DATA Basic earnings per share $ 0.25 0.32 0.32 0.41 0.32 Diluted earnings per share $ 0.24 0.31 0.31 0.40 0.31 Book value per share $ 14.01 11.75 11.49 11.35 10.34 Tangible book value per share $ 9.59 9.99 9.72 9.57 10.22 Cash dividend per share $ 0.090 0.090 0.085 0.085 0.085 PERFORMANCE RATIOS Return on average assets 0.72% 0.92% 0.94% 1.24% 1.04% Return on average equity 7.93% 11.08% 11.28% 15.55% 12.56% Net interest margin 4.18% 4.24% 4.14% 4.19% 4.48% Non-int exp/Avg assets 3.58% 3.89% 3.73% 3.63% 3.82% Efficiency Ratio 70.98% 72.10% 72.96% 70.22% 69.65% Non-interest income/Total operating revenue 23.72% 24.19% 24.93% 24.03% 23.28% MARKET DATA Market value per share -- Period end $ 22.26 24.57 19.36 17.99 17.01 Market as a % of book 1.59 2.09 1.68 1.59 1.65 Cash dividend yield 1.62% 1.47% 1.76% 1.89% 2.00% Common stock dividend payout ratio 37.50% 29.03% 27.42% 21.25% 27.42% Period-end common shares outstanding (000) 6,792 5,391 5,365 5,357 4,769 Common stock market capitalization ($Millions) $ 151.20 132.45 103.88 96.37 81.12 CAPITAL & LIQUIDITY Equity to assets 10.36% 8.35% 8.14% 8.19% 8.23% Period-end tangible equity to assets 7.33% 7.19% 6.97% 7.00% 8.14% Total risk-based capital ratio 0.00% 12.84% 12.53% 12.58% 10.97% Average loans to deposits 96.00% 94.25% 95.49% 95.78% 98.67% ASSET QUALITY Net charge-offs $ 157 87 314 348 129 (Ann.) Net loan charge-offs/Average loans 0.10% 0.06% 0.23% 0.29% 0.11% Non-performing loans $ 4,849 3,332 4,110 5,506 1,381 OREOs $ 1,279 1,171 1,263 891 1,047 90-day past dues $ 750 597 449 1,814 891 NPAs + 90 day past due/Total assets 0.75% 0.67% 0.77% 1.11% 0.55% Allowance for loan losses/Total loans 1.33% 1.33% 1.32% 1.39% 1.28% Allowance for loan losses/NPA's + 90 days past due 132.00% 147.59% 127.76% 91.80% 174.42% END OF PERIOD BALANCES Total loans, net of unearned fees $685,098 565,055 562,682 542,834 451,490 Total assets $918,378 758,048 757,953 741,972 599,446 Deposits $712,289 605,063 600,204 580,248 469,416 Shareholders' equity $ 95,168 63,325 61,676 60,777 49,310 Full-time equivalent employees 365 330 312 312 259 AVERAGE BALANCES Loans $611,294 564,210 555,727 482,240 449,034 Total earning assets $747,089 694,728 685,075 607,319 547,471 Total assets $811,307 751,953 738,743 647,262 583,509 Deposits $636,735 598,642 581,985 503,507 455,065 Shareholders' equity $ 73,931 62,739 61,507 51,502 48,454 GB&T BANCSHARES, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three months ended Nine months ended September 30, September 30, 2003 2002 2003 2002 ------- ------- ------- ------- (amounts in thousands, except per share data) Interest income: Loans, including fees $10,480 $ 8,604 $30,185 $25,220 Investment securities: Taxable 882 948 2,817 2,938 Nontaxable 169 173 495 526 Federal funds sold 11 30 117 69 Interest-bearing deposits in banks 9 7 26 25 ------- ------- ------- ------- Total interest income 11,551 9,762 33,640 28,778 ------- ------- ------- ------- Interest expense: Deposits 2,723 2,738 8,599 8,627 Federal funds purchased and securities sold under repurchase agreements 45 57 128 190 Federal Home Loan Bank advances 703 743 2,068 2,193 Other borrowings 215 38 642 92 ------- ------- ------- ------- Total interest expense 3,686 3,576 11,437 11,102 ------- ------- ------- ------- Net interest income 7,865 6,186 22,203 17,676 Provision for loan losses 861 202 1,251 589 ------- ------- ------- ------- Net interest income after Provision for loan losses 7,004 5,984 20,952 17,087 ------- ------- ------- ------- Other income: Service charges on deposit accounts 1,266 852 3,540 2,610 Mortgage origination fees 698 429 1,981 964 Insurance commissions 138 152 431 447 Gain on sale of securities 78 33 155 170 Other operating income 344 444 1,161 1,208 ------- ------- ------- ------- Total other income 2,524 1,910 7,268 5,399 ------- ------- ------- ------- Other expense: Salaries and employee benefits 4,391 3,178 12,686 9,102 Net occupancy and equipment expense 1,103 843 3,137 2,414 Other operating expenses 1,825 1,595 5,588 4,304 ------- ------- ------- ------- Total other expense 7,319 5,616 21,411 15,820 ------- ------- ------- ------- Income before income taxes 2,209 2,278 6,809 6,666 Income tax expense 731 744 1,887 2,156 ------- ------- ------- ------- Net income $ 1,478 $ 1,534 $ 4,922 $ 4,510 ======= ======= ======= ======= Earnings per share: Basic $ 0.25 $ 0.32 $ 0.89 $ 0.95 ======= ======= ======= ======= Diluted $ 0.24 $ 0.31 $ 0.86 $ 0.92 ======= ======= ======= ======= Weighted average shares Basic 5,848 4,767 5,532 4,762 ======= ======= ======= ======= Diluted 6,054 4,918 5,717 4,903 ======= ======= ======= ======= Cash dividends per common share $ 0.090 $ 0.085 $ 0.265 $ 0.250 ======= ======= ======= ======= GB&T Bancshares, Inc. Condensed Consolidated Statement of Condition 9/30/2003 9/30/2002 Assets (in thousands): (Unaudited) (Unaudited) Cash and due from banks $ 24,960 $ 16,718 Interest-bearing deposits in banks 542 2,527 Federal funds sold 0 18,343 -------- -------- Total cash and equivalents 25,502 37,588 -------- -------- Securities available-for-sale, at fair value 136,422 84,243 Restricted equity securities 4,477 3,463 -------- -------- Total securities 140,899 87,706 -------- -------- Loans 685,098 451,490 Allowance for loan losses 9,079 5,789 -------- -------- Loans, net 676,019 445,701 -------- -------- Premises and equipment 26,117 16,042 Goodwill and intangible assets 30,008 566 Other assets 19,833 11,843 -------- -------- Total assets $918,378 $599,446 ======== ======== Liabilities and Stockholders' Equity (in thousands): Deposits Non interest-bearing $ 96,406 $ 63,202 Interest-bearing 615,883 406,214 -------- -------- Total deposits 712,289 469,416 -------- -------- Federal funds purchased and securities sold under repurchase agreements 14,455 14,389 Federal Home Loan Bank advances 75,825 57,026 Other borrowings 233 4,822 Other liabilities 5,408 4,483 Company guaranteed trust preferred securities 15,000 0 -------- -------- Total liabilities 823,210 550,136 -------- -------- Stockholders' equity: Capital stock 67,888 25,807 Retained earnings 26,626 21,518 Accumulated other comprehensive income (loss) 654 1,985 -------- -------- Total stockholders' equity 95,168 49,310 ======== ======== Total liabilities and stockholders' equity $918,378 $599,446 ======== ========