GAINESVILLE, Ga. , Jan. 26, 2004 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a fast-growing multi-bank holding company comprised of five Georgia community banks, reported 2003 net income of $7.7 million, or $1.28 per diluted share, compared to $6.5 million, or $1.32 per diluted share, reported in 2002. Excluding a one-time loss on the sale of an acquired bank's headquarters building of $196,000 after-tax in the second quarter of 2003 and a one-time gain of $410,000 after-tax from the sale of a minority interest in a de novo bank in the fourth quarter of 2002, operating income for 2003 was $7.9 million, or $1.31 per diluted share, compared to 2002 operating income of $6.1 million, or $1.23 per diluted share. Operating income and diluted operating earnings per share for 2003 rose 29.9 percent and 6.5 percent, respectively, over the 2002 adjusted figures. For the fourth quarter of 2003, net income was $2.8 million compared with $2.0 million for the prior-year quarter. Diluted earnings per share were $0.40 for the fourth quarter of 2003 compared to $0.39 for the prior-year quarter. Excluding the one-time gain on sale described earlier, fourth quarter 2002 operating income and diluted operating earnings per share were $1.6 million and $0.31, respectively.
At a meeting held January 19, 2004, 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 February 12, 2004 to shareholders of record as of the close of business on February 2, 2004.
Earnings reflect year-over-year asset growth of $202.7 million, of which $75.7 million, or 10.2 percent, was organic. Per share results for full-year 2003 were affected by a 22.0 percent increase in average diluted shares outstanding to 6,038,000 as a result of the 1,397,584 shares issued for the acquisition of First National Bank of the South ($127 million in assets), which closed August 29, 2003. The quarterly per share comparison reflects a 36.7 percent increase in average diluted shares outstanding issued in connection with the above-mentioned acquisition.
The returns on average assets ("ROA") and average equity ("ROE") for 2003 were 0.95 percent and 10.56 percent, respectively, compared with 1.11 percent and 13.72 percent for 2002. The returns on average assets and average equity for the fourth quarter of 2003 were 1.18 percent and 11.62 percent, respectively, compared with 1.22 percent and 15.53 percent for the fourth quarter of 2002.
Richard A. Hunt, President and CEO, commented, "2003 marked a challenging but rewarding year for us, and we are pleased with the good results we are seeing, particularly in the fourth quarter of this year. We are working to integrate two acquisitions as well as manage in a difficult interest rate environment. We made progress on both fronts, but we still have work ahead to fully realize revenue opportunities and cost-saving efficiencies from our acquisitions.
"During the past two years, we focused on building an infrastructure to support our growth. During 2004, our priority will be to consolidate this growth and more fully leverage opportunities on both the revenue and expense sides. Our goal is to continue to improve our efficiency ratio, and we are pleased to have achieved progress in lowering expense levels relative to our asset size over the last three quarters. As an integral part of this process, we want to maintain the high levels of customer service and satisfaction our GB&T affiliate banks have always delivered."
Total revenue, defined as net interest income and non-interest income, was $41.4 million for 2003, an increase of 29.0 percent over the $32.1 million reported in 2002. Net interest income rose 30.9 percent to $31.5 million, reflecting a 35.9 percent increase in average earning assets, partially offset by a 16 basis point decline in the net interest margin, to 4.21 percent. The fourth quarter net interest margin was 4.31%, a 12 basis point improvement over the prior-year fourth quarter, and a 13 basis point increase over the linked quarter. Mr. Hunt noted, "We are pleased to have stabilized our net interest margin over the course of this year, with notable improvement in the fourth quarter as a result of core deposit growth."
Non-interest income for fiscal year 2003 was $9.9 million, an increase of 23.1 percent above 2002. Excluding gains on the sale of securities, non-interest income increased 31.6 percent. Most of the increase was derived from higher service charges on deposit accounts, up 35.3 percent, and growth in mortgage origination fees, up 61.9 percent. The higher deposit service charges are the result of the HomeTown Bank and First National Bank of the South ("FNB") acquisitions plus organic growth. Recurring non-interest income contributes 23.3 percent of operating revenue, virtually unchanged from the prior year.
Non-interest expense for 2003 was $29.7 million, an increase of 36.5 percent above 2002. Salaries and employee benefits, the largest component of expense growth, increased 36.0 percent, reflecting a 21.8 percent increase in FTE staff, as well as merit and benefits increases. Mr. Hunt noted that cost savings from the FNB acquisition will continue to be realized throughout the course of 2004. GB&T Bancshares' efficiency ratio was 71.6 percent for 2003 compared to 69.5 percent in 2002.
Asset quality continues to improve, with non-performing assets as a percent of assets declining over the course of 2003. Mr. Hunt noted, "The problem loans we acquired with our HomeTown acquisition late in 2002 were the focus of management attention this year, and accounted for $600,000 of the $1.1 million we charged off. The majority of our non-performing loans are well-secured. The performing loan we reserved against in the previous quarter continues to perform, and its status is unchanged." Non-performing assets were $5.7 million at year-end 2003, equivalent to 0.60 percent of assets. This compares favorably to $8.2 million, or 1.11 percent of assets, at the prior-year end. Charge-offs were 0.18 percent of average loans, virtually unchanged from the 0.15 percent reported for 2002.
Total assets were $944.7 million at December 31, 2003, an increase of $202.7 million, or 27.3 percent from twelve months ago. The FNB acquisition accounted for $127 million, or 62.6 percent, of the increase, while $75.7 million of the asset growth was organic. Excluding the most recent acquisition, organic growth was 10.2 percent. Loans rose $167.1 million, or 30.8 percent, to $710.0 million. Mr. Hunt noted, "We achieved solid organic loan growth over the last twelve months, and anticipate strong loan growth going forward based on the strength of our local economy whose recovery is leading the nation." Total deposits increased $148.4 million, or 25.6 percent, to $728.6 million. Of this total, 52.8 percent consisted of core deposits compared to 46.9 percent in 2002.
Shareholders' equity ended the year at $97.0 million, a twelve-month increase of $36.6 million, or 60.7 percent, reflecting the impact of the FNB acquisition. Equity was 10.26 percent of period-end assets. GB&T Bancshares had 6,794,148 shares of common stock outstanding at year-end.
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 December 31, 2003, GB&T Bancshares had assets of $944.7 million, with 20 branches located in high-growth 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 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 such risks and uncertainties, 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.
G B & T Bancshares Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
--------------------------------------------
(dollars in thousands except per share data)
--------------------------------------------
-------- -------- -------- -------- -------- ------- ---------
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr YTD YTD
2003 2003 2003 2003 2002 2003 2002
-------- -------- -------- -------- -------- -------- --------
EARNINGS
Net
inter-
est
in-
come $ 9,301 7,865 7,341 6,997 6,409 31,504 24,059
Pro-
vis-
ion
for
loan
loss $ 155 861 176 214 256 1,406 845
Non-
inter-
est
in-
come $ 2,660 2,524 2,392 2,352 2,663 9,928 8,062
Non-
inter-
est
ex-
pense $ 8,282 7,319 7,291 6,801 5,954 29,693 21,748
Net
in-
come $ 2,803 1,478 1,733 1,711 1,999 7,725 6,509
Non-
recurr-
ing
income
(gain
on
sale
of
secur-
ities)
after-
tax $ 0 0 0 0 410 0 410
Non-
recurr-
ing
ex-
pense
(loss
on
sale
of
build-
ing)
after-
tax $ 0 0 196 0 0 196 0
Oper-
ating
in-
come $ 2,803 1,478 1,929 1,711 1,589 7,921 6,099
PER SHARE
DATA
Basic
earn-
ings
per
share $ 0.41 0.25 0.32 0.32 0.40 1.32 1.35
Di-
luted
earn-
ings
per
share $ 0.40 0.24 0.31 0.31 0.39 1.28 1.32
Oper-
ating
di-
luted
earn-
ings
per
share $ 0.40 0.24 0.35 0.31 0.31 1.31 1.23
Book
value
per
share $ 14.27 14.01 11.75 11.49 11.27 14.27 11.27
Tan-
gible
book
value
per
share $ 9.41 9.59 9.99 9.72 9.49 9.41 9.49
Cash
div-
idend
per
share $ 0.090 0.090 0.090 0.085 0.085 0.355 0.335
PERFORMANCE
RATIOS
Return
on
av-
erage
assets 1.18% 0.72% 0.92% 0.94% 1.22% 0.95% 1.11%
Return
on
av-
erage
equity 11.62% 7.94% 11.08% 11.28% 15.53% 10.56% 13.72%
Net
inter-
est
margin 4.31% 4.18% 4.24% 4.14% 4.19% 4.21% 4.37%
Non-
int
exp
/Avg.
assets 3.47% 3.58% 3.89% 3.73% 3.65% 3.65% 3.70%
Effi-
ciency
Ratio 70.58% 70.98% 72.03% 72.96% 70.58% 71.56% 69.45%
Non-
inter-
est
income/
Total
oper-
ating
rev-
enue 20.73% 23.72% 24.19% 24.93% 24.03% 23.25% 23.17%
MARKET
DATA
Market
value
per
share --
Per-
iod
end $ 23.63 22.26 24.57 19.36 17.99 23.63 17.99
Market
as a
% of
book 1.66 1.59 2.09 1.68 1.60 1.66 1.60
Cash
div-
idend
yield 1.52% 1.62% 1.47% 1.76% 1.89% 1.50% 1.86%
Common
stock
div-
idend
payout
ratio 22.50% 37.50% 29.03% 27.42% 21.79% 27.73% 25.38%
Period-
end
common
shares
out-
stand-
ing
(000) 6,794 6,792 5,391 5,365 5,357 6,794 5,357
Common
stock
market
cap-
ital-
izat-
ion
($Mill-
ions) $ 160.55 151.20 132.45 103.88 96.37 160.55 96.37
CAPITAL &
LIQUIDITY
Equity
to
assets 10.26% 10.35% 8.35% 8.14% 8.13% 10.26% 8.13%
Period-
end
tan-
gible
equity
to
assets 7.01% 7.33% 7.19% 6.97% 6.94% 7.01% 6.94%
Total
risk-
based
capital
ratio 12.34% 12.84% 12.53% 12.58% 12.58%
Average
loans
to
depos-
its 95.63% 96.00% 94.25% 95.49% 95.78% 95.36% 97.76%
ASSET
QUALITY
Net
charge-
offs $ 508 157 87 314 348 1,066 670
(Ann.)
Net
loan
charge-
offs/
Average
loans 0.29% 0.10% 0.06% 0.23% 0.29% 0.18% 0.15%
Non-
per-
form-
ing
loans $ 3,333 4,849 3,332 4,110 5,506 3,333 5,506
OREOs $ 1,868 1,279 1,171 1,263 891 1,868 891
90-
day
past
dues $ 509 750 597 449 1,814 509 1,814
NPAs
+ 90
day
past
due/
Total
assets 0.60% 0.75% 0.67% 0.77% 1.11% 0.60% 1.11%
Allowance
for
loan
losses/
Total
loans 1.23% 1.33% 1.33% 1.32% 1.39% 1.23% 1.39%
Allowance
for
loan
losses/
NPA's
+ 90
days
past
due 152.82% 132.00% 147.59% 127.76% 91.80% 152.82% 91.80%
END OF
PERIOD
BALANCES
Total
loans,
net
of
un-
earn-
ed
fees $709,848 685,098 565,055 562,682 542,834 709,848 542,834
Total
ass-
ets $944,703 919,228 758,048 757,953 741,987 944,703 741,987
Depos-
its $728,629 712,289 605,063 600,204 580,248 728,629 580,248
Share-
hold-
ers'
eq-
uity $ 96,962 95,172 63,325 61,676 60,353 96,962 60,353
Full-
time
equiv-
alent
employ-
ees 380 365 330 312 312 380 312
AVERAGE
BALANCES
Loans $700,662 611,294 564,210 555,727 482,240 608,131 446,518
Total
earn-
ing
ass-
ets $855,216 747,089 694,728 685,075 607,319 747,567 549,990
Total
ass-
ets $945,785 811,516 751,953 738,743 647,522 813,134 587,329
Depos-
its $732,672 636,735 598,642 581,985 503,507 637,688 456,768
Share-
hold-
ers'
equi-
ty $ 95,701 73,868 62,739 61,507 51,078 73,144 47,443
GB&T Bancshares, Inc.
Condensed Consolidated Statement of Condition
12/31/2003 12/31/2002
Assets (in thousands): (Unaudited) (Unaudited)
Cash and due from banks $ 17,669 $ 18,113
Interest-bearing deposits in banks 535 8,205
Federal funds sold 6,534 25,170
-------- --------
Total cash and equivalents 24,738 51,488
-------- --------
Securities available-for-sale, at fair value 132,945 106,843
Restricted equity securities 4,582 3,784
-------- --------
Total securities 137,527 110,627
-------- --------
Loans 709,958 542,834
Allowance for loan losses 8,726 7,538
-------- --------
Loans, net 701,232 535,296
-------- --------
Premises and equipment 25,813 20,774
Goodwill and intangible assets 33,043 9,522
Other assets 22,350 14,280
-------- --------
Total assets $944,703 $741,987
======== ========
Liabilities and Stockholders' Equity
(in thousands):
Deposits
Non interest-bearing $ 90,914 $ 56,795
Interest-bearing 637,715 523,453
-------- --------
Total deposits 728,629 580,248
-------- --------
Federal funds purchased and securities sold
under repurchase agreements 17,314 11,538
Federal Home Loan Bank advances 75,703 63,654
Other borrowings 300 820
Other liabilities 10,331 10,374
Company guaranteed trust preferred securities 15,464 15,000
-------- --------
Total liabilities 847,741 681,634
-------- --------
Stockholders' equity:
Capital stock 68,102 35,658
Retained earnings 28,393 22,706
Accumulated other comprehensive income (loss) 467 1,989
-------- --------
Total stockholders' equity 96,962 60,353
-------- --------
Total liabilities and stockholders' equity $944,703 $741,987
======== ========
GB&T BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
---------------------------------------
(amounts in (amounts in
thousands, thousands,
except per except per
share data) share data)
Interest income:
Loans, including fees $11,991 $ 9,004 $42,176 $34,197
Investment securities:
Taxable 936 931 3,753 3,869
Nontaxable 193 172 688 698
Federal funds sold 28 81 145 150
Interest-bearing deposits in
banks 4 17 30 42
------- ------- ------- -------
Total interest income 13,152 10,205 46,792 38,956
------- ------- ------- -------
Interest expense:
Deposits 2,872 2,829 11,471 11,455
Federal funds purchased and
securities sold under
repurchase agreements 40 59 168 249
Federal Home Loan Bank
advances 776 745 2,844 2,938
Other borrowings 163 163 805 255
------- ------- ------- -------
Total interest expense 3,851 3,796 15,288 14,897
------- ------- ------- -------
Net interest income 9,301 6,409 31,504 24,059
Provision for loan losses 155 256 1,406 845
------- ------- ------- -------
Net interest income
after Provision for
loan losses 9,146 6,153 30,098 23,214
------- ------- ------- -------
Other income:
Service charges on deposit
accounts 1,413 1,050 4,953 3,660
Mortgage origination fees 459 543 2,440 1,507
Insurance commissions 183 159 614 606
Gain on sale of securities 227 636 382 806
Other operating income 378 275 1,539 1,483
------- ------- ------- -------
Total other income 2,660 2,663 9,928 8,062
------- ------- ------- -------
Other expense:
Salaries and employee
benefits 4,507 3,566 17,193 12,642
Net occupancy and equipment
expense 1,001 876 4,138 3,290
Other operating expenses 2,774 1,512 8,362 5,816
------- ------- ------- -------
Total other expense 8,282 5,954 29,693 21,748
------- ------- ------- -------
Income before income
taxes 3,524 2,862 10,333 9,528
Income tax expense 721 863 2,608 3,019
------- ------- ------- -------
Net income $ 2,803 $ 1,999 $ 7,725 $ 6,509
======= ======= ======= =======
Earnings per share:
Basic $ 0.41 $ 0.40 $ 1.32 $ 1.35
======= ======= ======= =======
Diluted $ 0.40 $ 0.39 $ 1.28 $ 1.32
======= ======= ======= =======
Weighted average shares
Basic 6,793 4,964 5,850 4,813
======= ======= ======= =======
Diluted 6,994 5,115 6,038 4,948
======= ======= ======= =======
Cash dividends per common
share $ 0.090 $ 0.085 $ 0.355 $ 0.335
======= ======= ======= =======