GAINESVILLE, Ga., Oct. 13, 2004 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a fast-growing multi-bank holding company operating five community banks based in Georgia, reported third quarter 2004 net income of $2.4 million, a 62.4 percent increase over the $1.5 million reported for the prior-year third quarter. Earnings reflect strong balance sheet growth achieved organically and through an active acquisition strategy. Diluted earnings per share for the third quarter of 2004 were $0.25, an increase of 31.6 percent over the $0.19 reported for the prior-year third quarter. The quarterly earnings per share comparison reflects a 27.1 percent increase in average diluted shares outstanding to 9,621,000 as a result of the 262,682 shares issued in connection with the acquisition of Lumpkin County Bank, a $66 million asset bank, which closed on August 19, 2004, the 1,141,628 shares issued in connection with the acquisition of Southern Heritage Bank, a $121 million asset bank, which closed on August 2, 2004, as well as the 1,397,584 shares issued in connection with the acquisition of First National Bank of the South, a $127 million asset bank, which closed on August 29, 2003.
For the first nine months of 2004, GB&T Bancshares reported net income of $6.9 million, a 39.4 percent increase over the $4.9 million reported for the 2003 nine-month period. Diluted earnings per share were $0.77, an 11.6 percent increase over the $0.69 reported for the prior-year period. The year-to-date per share comparison reflects a 24.4 percent increase in average diluted shares outstanding issued in connection with the above-mentioned acquisitions.
At a meeting held on October 13, 2004, the Board of Directors of GB&T Bancshares declared a fourth quarter cash dividend of $0.076 per share on the Company's common stock. The $0.076 dividend is a 5.6 percent increase over the dividend announced for the prior-year fourth quarter. The declared dividend is payable on November 12, 2004 to shareholders of record as of the close of business on November 1, 2004.
The annualized returns on average assets ("ROA") and average equity ("ROE") for the third quarter of 2004 were 0.84 percent and 7.80 percent, respectively, compared with 0.72 percent and 7.94 percent for the third quarter of 2003. Adjusted to exclude intangibles, the annualized return on average assets ("ROTA") and average equity ("ROTE") were 0.88 percent and 12.72 percent, respectively, compared with 0.74 percent and 10.20 percent for the third quarter of 2003. For the first nine months of 2004, annualized ROA and ROE were 0.89 percent and 8.60 percent, respectively, compared with 0.86 percent and 9.96 percent for the prior-year period. Adjusted to exclude intangibles, nine-month ROTA and ROTE were 0.93 percent and 13.31 percent, respectively, for 2004 compared with 0.87 percent and 12.13 percent for 2003.
Richard A. Hunt, President and CEO, commented, "We have remained focused on strong earnings growth as a result of a combination of internal expansion and acquisitions. We now have 25 banking offices in many of the high growth markets in Georgia. This past quarter, we closed on two acquisitions, Lumpkin County Bank and Southern Heritage Bank, announced the execution of a definitive agreement to acquire Gwinnett-based FNBG Bancshares, Inc., parent of First National Bank of Gwinnett, a $115-million asset bank, and opened a de novo branch, Bank of Athens which will operate as a division of Gainesville Bank & Trust. We are pleased with our Company's growing success in its markets as customers respond favorably to our combination of service, lending expertise and technology. Our expansion strategy continues."
Total revenue, defined as net interest income and non-interest income, was $13.3 million for the third quarter of 2004, an increase of 28.1 percent over the $10.4 million reported in the prior-year period. Net interest income rose 34.9 percent to $10.6 million, reflecting a 37.2 percent increase in average earning assets over the prior-year quarter, partially offset by a decrease in the net interest margin over the same period to 4.15 percent. Mr. Hunt noted, "We are encouraged by the recent increases in the federal funds rate; our net interest margin improved six basis points over the June, 2004 quarter. We believe this recent margin improvement coupled with continued strong growth in earning assets positions us for strong revenue momentum."
Non-interest income for the third quarter of 2004 was $2.7 million, an increase of 6.9 percent over the prior-year period. The majority of the increase was derived from growth in service charges on deposit accounts, up 26.2 percent, and improvement in other operating income, up 28.5 percent. Growth in both of these categories reflects the previously-mentioned acquisitions and organic growth, partially offset by a 27.8 percent decline in mortgage origination fees. Non-interest income represented 20.3 percent of total revenue for the third quarter of 2004.
Non-interest expense for the third quarter of 2004 was $9.5 million, an increase of 29.2 percent over the third quarter of 2003. Excluding $195 thousand in merger-related expenses, non-interest expense increased 26.5 percent. Salaries and employee benefits expense increased 22.3 percent, reflecting a 20.5 percent increase in full-time equivalent staff from the two most recent acquisitions, as well as merit and benefits increases. GB&T Bancshares' efficiency ratio was 70.10 percent for the third quarter of 2004 compared to 70.98 percent for the prior-year period.
Asset quality remains strong. Nonperforming assets at September 30, 2004, were 0.60 percent of assets compared with 0.50 percent at June 30, 2004 and 0.75 percent at September 30, 2003. Annualized net charge-offs for the third quarter of 2004 were 0.06 percent of average loans compared with 0.10 percent for the third quarter of 2003. Loan loss reserves were 1.25 percent of total loans. Mr. Hunt commented, "The majority of the $2.4 million increase in non-performing loans is associated with our acquisition of Lumpkin County Bank; we were well-aware of the situation as we negotiated the definitive agreement to purchase the bank and adequate reserves were reflected in the purchase price."
Total assets were $1.2 billion at September 30, 2004, an increase of $296.1 million, or 32.2 percent, from September 30, 2003. The Lumpkin County Bank and Southern Heritage Bancorp, Inc. acquisitions accounted for $187 million, or 63.2 percent of the increase. Excluding these two acquisitions, organic growth during this same period was $109.1 million, or approximately 11.9 percent at September 30, 2004 compared to September 30, 2003. Loans rose $219.3 million, or 32.0 percent, to $904.4 million at September 30, 2004 compared to September 30, 2003. Total deposits increased $228.6 million, or 32.1 percent, to $940.9 million during this same period.
Shareholders' equity at September 30, 2004 was $136.4 million, a twelve-month increase of $41.3 million, or 43.4 percent, reflecting the impact of the Lumpkin County Bank and Southern Heritage Bancorp, Inc. acquisitions. Shareholders' equity was 11.2 percent of period-end assets. GB&T Bancshares had 10,051,693 shares of common stock outstanding at September 30, 2004.
In addition, at the shareholders' meeting held on October 13, 2004, the Company's shareholders approved an amendment to the Company's Articles of Incorporation to eliminate preemptive rights.
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, 2004, GB&T Bancshares had assets of $1.2 billion, with 25 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) we may be unable to obtain required shareholder or regulatory approval for our proposed acquisitions, (6) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which we are engaged; (7) costs or difficulties related to the integration of our businesses may be greater than expected; (8) deposit attrition, customer loss or revenue loss following the acquisitions may be greater than expected; (9) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; and (10) 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 will be filing a registration statement on Form S-4 and other documents with the Securities and Exchange Commission ("SEC"). The registration statement will contain a prospectus of GB&T Bancshares relating to the common stock to be issued in the acquisition of FNBG Bancshares and a proxy statement of FNBG Bancshares relating to the acquisition. Investors and shareholders are urged to read the proxy statement/prospectus and any other relevant documents filed with the SEC when they become available because they will contain important information. Investors and shareholders will be able to receive the proxy statement/prospectus and other documents filed by GB&T Bancshares free of charge at the SEC's web site, www.sec.gov or from GB&T Bancshares, Inc. at 500 Jesse Jewell Parkway, S.E., Gainesville, Georgia 30501.
GB&T Bancshares, FNBG Bancshares and their directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the acquisition. Information about such directors and executive officers and their ownership of GB&T Bancshares and FNBG Bancshares common stock will be set forth in the proxy statement/prospectus. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus when it becomes available.
G B & T Bancshares Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share amounts)
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
2004 2004 2004 2003 2003
---------- --------- ------- ------- -------
EARNINGS
Net interest
income $ 10,610 9,110 8,886 9,301 7,865
Provision for
loan loss $ 332 325 284 155 861
Other income $ 2,699 2,942 2,899 2,660 2,524
Other expense $ 9,456 8,475 8,348 8,282 7,319
Net income $ 2,400 2,233 2,230 2,803 1,478
Non-recurring
expense (merger-
related expenses)
after-tax $ 127 0 0 0 0
Operating income $ 2,527 2,233 2,230 2,803 1,478
PER SHARE DATA
Basic earnings per
share $ 0.25 0.26 0.26 0.33 0.20
Diluted earnings
per share $ 0.25 0.26 0.26 0.32 0.19
Operating diluted
earnings per
share $ 0.26 0.26 0.26 0.32 0.19
Book value per
share $ 13.57 11.57 11.65 11.40 11.21
Tangible book
value per share $ 8.11 7.75 7.79 7.51 7.67
Cash dividend per
share $ 0.076 0.076 0.072 0.072 0.072
PERFORMANCE RATIOS
Return on average
assets 0.84% 0.91% 0.93% 1.18% 0.72%
Return on average
tangible assets 0.88% 0.94% 0.97% 1.22% 0.74%
Return on average
equity 7.80% 9.05% 9.14% 11.62% 7.94%
Return on average
tangible equity 12.72% 13.53% 13.77% 17.76% 10.20%
Net interest
margin 4.15% 4.09% 4.13% 4.34% 4.21%
Other expense/
Average assets 3.33% 3.44% 3.49% 3.47% 3.58%
Efficiency Ratio 70.10% 72.40% 72.45% 70.58% 70.98%
Other income/Total
operating revenue 20.28% 22.18% 22.88% 20.73% 23.72%
MARKET DATA
Market value per
share - Period end$ 22.06 23.90 22.52 18.90 17.81
Market as a % of
book 1.63 2.07 1.93 1.66 1.59
Cash dividend
yield 1.38% 1.27% 1.28% 1.52% 1.62%
Common stock
dividend payout
ratio 30.40% 29.23% 28.13% 22.50% 37.50%
Period-end common
shares out-
standing (000) 10,052 8,593 8,528 8,493 8,490
Common stock
market capitaliza-
tion ($Millions) $ 221.74 205.37 192.04 160.55 151.20
CAPITAL & LIQUIDITY
Equity to assets 11.23% 9.94% 10.20% 10.26% 10.35%
Period-end tangible
equity to tangible
assets 7.03% 6.88% 7.06% 7.00% 7.33%
Total risk-based
capital ratio n/a 11.66% 11.78% 11.80% 12.34%
Average loans to
deposits 96.09% 95.54% 97.39% 95.63% 96.00%
ASSET QUALITY
Net charge-offs $ 132 342 6 508 157
(Ann.) Net loan
charge-offs/
Average loans 0.062% 0.186% 0.003% 0.29% 0.10%
Non-performing
loans $ 4,905 2,511 2,951 3,333 4,849
OREOs $ 1,240 1,368 2,053 1,868 1,279
90-day past dues $ 1,110 1,096 1,053 509 750
NPAs + 90 day past
due/Total assets 0.60% 0.50% 0.62% 0.60% 0.75%
Allowance for loan
losses/Total loans 1.25% 1.21% 1.24% 1.23% 1.33%
Allowance for loan
losses/NPAs + 90
days past due 155.23% 180.64% 148.65% 152.82% 132.00%
END OF PERIOD
BALANCES
Total loans, net
of unearned fees $ 904,407 745,437 724,282 709,958 685,098
Total assets $1,215,373 1,000,519 974,213 944,278 919,228
Deposits $ 940,867 778,364 758,178 728,629 712,289
Stockholders'
equity $ 136,440 99,431 99,327 96,843 95,172
Full-time
equivalent
employees 440 384 388 380 365
AVERAGE BALANCES
Loans $ 840,569 738,092 720,063 700,662 611,294
Total earning
assets $1,016,482 896,534 866,228 850,872 741,039
Total assets $1,130,820 990,519 960,962 945,785 811,516
Deposits $ 874,783 772,587 739,353 732,672 636,735
Stockholders'
equity $ 122,336 99,254 98,137 95,701 73,868
n/a = not available
The following table provides a detailed analysis
of Non-GAAP measures.
Reconciliation Table
(Dollars in thousands)
3rd 2nd 1st 4th 3rd
Qtr Qtr Qtr Qtr Qtr YTD 9/30
2004 2004 2004 2003 2003 2004 2003
----- ----- ----- ----- ----- ----- -----
Book value
per share $ 13.57 11.57 11.65 11.40 11.21 13.57 11.21
Effect of
intangible
assets per
share $ (5.46) (3.82) (3.86) (3.89) (3.54) (5.46) (3.54)
Tangible book
value per
share $ 8.11 7.75 7.79 7.51 7.67 8.11 7.67
Return on
average
assets 0.84% 0.91% 0.93% 1.18% 0.72% 0.89% 0.86%
Effect of
intangible
assets 0.04% 0.03% 0.05% 0.04% 0.03% 0.04% 0.01%
Return on
average
tangible
assets 0.88% 0.94% 0.97% 1.22% 0.74% 0.93% 0.87%
Return on
average
equity 7.80% 9.05% 9.14% 11.62% 7.94% 8.60% 9.96%
Effect of
intangible
assets 4.93% 4.48% 4.63% 6.14% 2.26% 4.71% 2.17%
Return on
average
tangible
equity 12.72% 13.53% 13.77% 17.76% 10.20% 13.31% 12.13%
Equity to
assets 11.23% 9.94% 10.20% 10.26% 10.35% 11.23% 10.35%
Effect of
intangible
assets -4.20% -3.06% -3.14% -3.26% -3.02% -4.20% -3.02%
Period-end
tangible
equity to
tangible
assets 7.03% 6.88% 7.06% 7.00% 7.33% 7.03% 7.33%
GB&T Bancshares, Inc.
Condensed Consolidated Statement of Condition
9/30/2004 9/30/2003
(Unaudited) (Unaudited)
---------- ----------
Assets (in thousands):
Cash and due from banks $ 23,442 $ 24,960
Interest-bearing deposits in banks 2,658 542
Federal funds sold 13,995 0
---------- ----------
Total cash and equivalents 40,095 25,502
---------- ----------
Securities available-for-sale,
at fair value 165,336 136,429
Restricted equity securities 5,273 4,582
---------- ----------
Total securities 170,609 141,011
---------- ----------
Loans 904,407 685,098
Allowance for loan losses 11,262 9,079
---------- ----------
Loans, net 893,145 676,019
---------- ----------
Premises and equipment 32,413 26,117
Goodwill and intangible assets 54,896 30,851
Other assets 24,215 19,728
---------- ----------
Total assets $1,215,373 $ 919,228
========== ==========
Liabilities and Stockholders'
Equity (in thousands):
Deposits
Non interest-bearing $ 126,469 $ 96,406
Interest-bearing 814,398 615,883
---------- ----------
Total deposits 940,867 712,289
---------- ----------
Federal funds purchased and securities
sold under repurchase agreements 20,479 14,455
Federal Home Loan Bank advances 75,094 75,825
Other borrowings 542 233
Other liabilities 12,053 6,254
Company guaranteed trust preferred
securities 29,898 15,000
---------- ----------
Total liabilities 1,078,933 824,056
---------- ----------
Stockholders' equity:
Capital stock 102,501 67,888
Retained earnings 33,339 26,626
Accumulated other comprehensive
income (loss) 600 658
---------- ----------
Total stockholders' equity 136,440 95,172
---------- ----------
Total liabilities and
stockholders' equity $1,215,373 $ 919,228
========== ==========
GB&T BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
------- ------- ------- -------
(Dollars in thousands, except per share amounts)
Interest income:
Loans, including fees $13,713 $10,480 $37,261 $30,185
Taxable securities 1,250 882 3,275 2,817
Nontaxable securities 184 169 554 495
Federal funds sold 55 11 115 117
Interest-bearing deposits
in banks 9 9 17 26
------- ------- ------- -------
Total interest income 15,211 11,551 41,222 33,640
------- ------- ------- -------
Interest expense:
Deposits 3,429 2,723 9,337 8,599
Federal funds purchased and
securities sold under
repurchase agreements 45 150 128
Federal Home Loan Bank
advances 760 703 2,361 2,068
Other borrowings 355 215 768 642
------- ------- ------- -------
Total interest expense 4,601 3,686 12,616 11,437
------- ------- ------- -------
Net interest income 10,610 7,865 28,606 22,203
Provision for loan losses 332 861 941 1,251
------- ------- ------- -------
Net interest income after
provision for loan losses 10,278 7,004 27,665 20,952
------- ------- ------- -------
Other income:
Service charges on
deposit accounts 1,598 1,266 4,479 3,540
Mortgage origination fees 504 698 1,475 1,981
Insurance commissions 155 138 456 431
Gain on sale of securities -- 78 609 155
Other operating income 442 344 1,521 1,161
------- ------- ------- -------
Total other income 2,699 2,524 8,540 7,268
------- ------- ------- -------
Other expense:
Salaries and employee
benefits 5,369 4,391 15,242 12,686
Occupancy and equipment
expenses, net 1,292 1,103 3,718 3,137
Other operating expenses 2,795 1,825 7,319 5,588
------- ------- ------- -------
Total other expense 9,456 7,319 26,279 21,411
------- ------- ------- -------
Income before income taxes 3,521 2,209 9,926 6,809
Income tax expense 1,121 731 3,063 1,887
------- ------- ------- -------
Net income $ 2,400 $ 1,478 $ 6,863 $ 4,922
======= ======= ======= =======
Earnings per share:
Basic $ 0.25 $ 0.20 $ 0.78 $ 0.71
======= ======= ======= =======
Diluted $ 0.25 $ 0.19 $ 0.77 $ 0.69
======= ======= ======= =======
Weighted average shares
Basic 9,491 7,310 8,855 6,915
======= ======= ======= =======
Diluted 9,621 7,568 8,888 7,146
======= ======= ======= =======
Cash dividends per common
share $ 0.076 $ 0.072 $ 0.224 $ 0.212
======= ======= ======= =======