GAINESVILLE, Ga., April 19, 2006 (PRIMEZONE) -- GB&T Bancshares, Inc. (Nasdaq:GBTB), a multi-bank holding company with six community banks in high growth markets surrounding the metropolitan Atlanta (GA) area, reported an 8.8 percent increase in first quarter 2006 net income, to $3.3 million compared with $3.0 million for the first quarter of 2005. Diluted earnings per share for the first quarter of 2006 were $0.25 compared with $0.25 for the prior-year period. The earnings per share results reflect an increase in the provision for loan losses as well as a 7.2 percent increase in weighted average diluted shares outstanding.
"We are pleased with our first quarter operating performance," commented Richard A. Hunt, President and CEO of GB&T Bancshares, Inc. "Taking into account heightened competition for deposits exacerbated by the flat yield curve, we are looking to maintain our margin within a band of ten to fifteen basis points, and this quarter has been at the high end of that range. Revenue growth has been strong, year over year, from a combination of acquisitions and organic growth in our markets. Additionally, we are gradually improving our operating efficiencies as we expand revenue in excess of spending."
Looking ahead, Hunt commented, "Although our local economy remains strong, we are concerned with the impact of rising interest rates on consumer spending and the housing market. Consequently, we made a substantial increase in our loan loss provision this quarter, and plan to build our reserves to a level appropriate for a bank our size in this market. We believe this is the prudent time to take action -- before there are obvious manifestations of credit weakness."
Hunt added, "Our sales efforts continue to be directed toward core deposit generation and the small business segment, which remains strong in our markets. We've recently hired additional lenders who will focus on SBA and other small business loans in the greater North Georgia market. We also look forward to closing our previously announced merger with Mountain Bancshares by the end of this month, and the addition of two new high-growth counties to our franchise."
At a meeting held on April 17, 2006, the board of directors of GB&T Bancshares declared a second quarter cash dividend of $0.09 per share on the Company's common stock. This represents an increase of $0.005, or 5.9 percent, above the previous quarter. The dividend is payable on May 11, 2006, to stockholders of record at the close of business on April 27, 2006.
Total revenue, defined as net interest income plus other income, increased 15.6 percent, to $17.9 million for the first quarter of 2006, over the $15.5 million reported in the first quarter of 2005. Net interest income increased 21.3 percent, to $15.5 million, reflecting 20.2 percent growth in average earning assets and a three basis point improvement in the net interest margin to 4.35 percent on a tax equivalent basis.
Total assets increased 11.2 percent over the past twelve months, to $1.6 billion at March 31, 2006. Loans and deposits also showed significant increases over the same period. Total loans increased $175.6 million, or 16.0 percent, to $1.3 billion at March 31, 2006, compared with $1.1 billion at March 31, 2005. Total deposits were $1.3 billion; an increase of $180.3 million or 16.4 percent from year-ago levels.
The annualized returns on average assets ("ROA") and average equity ("ROE") for first quarter of 2006 were 0.83 percent and 6.60 percent, respectively, compared with 0.91 percent and 6.65 percent for the first quarter of 2005. Adjusted to exclude intangibles, the annualized returns on average tangible assets ("ROTA") and average tangible equity ("ROTE") were 0.87 percent and 9.87 percent, respectively, for the first quarter of 2006 compared with 0.95 percent and 9.98 percent for the first quarter of 2005.
Other income for the first quarter of 2006 was $2.5 million, compared with $2.8 million for the first quarter of 2005. Service charges on deposit accounts, the largest contributor to fee income, remained stable compared with the prior-year quarter, while mortgage origination fees increased 12.9 percent. The majority of the decline in noninterest income reflects the loss of insurance commissions due to the sale of Community Loan Company in the fourth quarter of 2005, and a decrease in other income related to the termination of outside service contracts.
Other expense remains well-controlled; for the first quarter of 2006, other expense was $11.7 million, an increase of 10.8 percent over the $10.6 million reported for the first quarter of 2005. Salaries and employee benefits expense, the largest component of other expense, increased 13.7 percent. The efficiency ratio improved to 64.48 percent for the first quarter of 2006 from 67.25 percent for the prior-year first quarter.
Mr. Hunt continued, "While asset quality remains sound, we have been tightening our lending policies in anticipation of potential weakness in the economy. This is consistent with our additional provisioning to increase our reserve levels to approximately 1.15 percent by year end." Nonperforming assets at March 31, 2006 were 0.64 percent of assets compared with 0.63 percent at December 31, 2005 and 0.82 percent at March 31, 2005. Annualized net charge-offs for the first quarter of 2006 were 0.09 percent of average loans compared with 0.10 percent for the fourth quarter of 2005 and 0.14 percent for the first quarter of 2005. Loan loss reserves at March 31, 2006, were 1.08 percent of total loans compared to 1.04 percent at December 31, 2005 and 1.03 percent at March 31, 2005.
Stockholders' equity at March 31, 2006, was $201.8 million, a twelve-month increase of $2.4 million, or 1.2 percent. Stockholders' equity was 12.3 percent of period-end assets. The Company had 12,938,842 shares of common stock outstanding at March 31, 2006.
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. As of March 31, 2006, GB&T Bancshares had assets of $1.6 billion, with 27 full-service banking offices located in eleven Georgia counties. GB&T Bancshares' common stock is listed on the Nasdaq National Market under the symbol "GBTB." Visit the Company's website www.gbtbancshares.com for additional information about GB&T.
Forward-Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding projected growth, completion of our proposed acquisitions, our efficiency, loan loss reserves, loan portfolio, 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
2006 2005 2005 2005 2005
---------- --------- --------- --------- ---------
EARNINGS
Net interest
income (fully
tax
equivalent) $ 15,517 15,532 14,717 14,198 12,824
Provision for
loan loss $ 1,206 977 635 3,822 482
Other income $ 2,463 2,492 3,476 2,906 2,757
Other expense $ 11,744 11,406 11,551 11,273 10,595
Net income $ 3,277 3,689 3,903 1,388 3,011
Non-recurring
(income)/
expense
(after-tax) $ 0 190 0 0 0
Operating
income $ 3,277 3,879 3,903 1,388 3,011
PER SHARE DATA
Basic earnings
per share $ 0.26 0.29 0.31 0.11 0.25
Diluted
earnings per
share $ 0.25 0.28 0.30 0.11 0.25
Operating
diluted
earnings per
share $ 0.25 0.30 0.30 0.11 0.25
Book value
per share $ 15.59 15.54 15.99 15.81 15.77
Tangible book
value per
share $ 10.45 10.32 10.16 9.97 9.90
Cash dividend
per share $ 0.085 0.085 0.085 0.085 0.076
PERFORMANCE
RATIOS
Return on
average
assets 0.83% 0.92% 1.00% 0.37% 0.91%
Return on
average
tangible
assets 0.87% 0.96% 1.05% 0.39% 0.95%
Return on
average
equity 6.60% 7.16% 7.64% 2.76% 6.65%
Return on
average
tangible
equity 9.87% 11.20% 12.07% 4.37% 10.07%
Net interest
margin (fully
tax equivalent) 4.35% 4.28% 4.20% 4.26% 4.32%
Other expense/
Average assets 2.98% 2.84% 2.96% 3.02% 3.19%
Efficiency
Ratio 64.48% 60.76% 64.69% 65.11% 67.25%
Other income/
Total operating
revenue 13.74% 13.88% 16.64% 17.07% 17.78%
MARKET DATA
Market value
per share --
Period end $ 22.35 21.41 21.23 23.76 21.66
Market as a
% of book 1.43 1.38 1.33 1.50 1.37
Cash dividend
yield 1.52% 1.59% 1.60% 1.43% 1.40%
Common stock
dividend
payout ratio 34.00% 30.36% 28.33% 77.27% 30.40%
Period-end
common shares
outstanding
(000) 12,939 12,784 12,729 12,716 12,641
Common stock
market
capitalization
($ Millions) $ 289.18 273.71 270.24 302.13 273.81
CAPITAL &
LIQUIDITY RATIOS
Period-end
equity to
assets 12.34% 12.54% 12.62% 13.13% 13.56%
Period-end
tangible
equity to
tangible
assets 8.62% 8.70% 8.40% 8.70% 8.94%
Total risk-
based capital
ratio N/A 13.80% 13.72% 14.39% 14.70%
Average loans
to average
deposits 101.48% 100.72% 100.53% 100.57% 101.34%
ASSET QUALITY
Net charge-
offs $ 276 307 2,949 1,707 346
(Ann.) Net
loan charge-
offs/Average
loans 0.090% 0.100% 0.996% 0.607% 0.140%
Nonaccrual
loans $ 7,114 6,562 5,957 6,811 10,213
Foreclosed
assets $ 3,348 3,431 2,887 2,965 1,451
90-day past
dues $ -- 17 297 126 364
Nonperforming
assets/Total
assets 0.64% 0.63% 0.57% 0.65% 0.82%
Allowance for
loan losses/
Total loans 1.08% 1.04% 1.02% 1.26% 1.03%
Allowance for
loan losses/
Nonperforming
assets 130.98% 127.60% 134.20% 147.25% 93.76%
END OF PERIOD
BALANCES
Total loans,
net of un-
earned fees $1,273,719 1,231,410 1,208,031 1,152,737 1,098,155
Total assets $1,634,741 1,584,094 1,613,806 1,532,935 1,470,574
Total
deposits $1,276,456 1,197,026 1,233,729 1,159,109 1,096,190
Total stock-
holders'
equity $ 201,769 198,711 203,597 201,269 199,367
Full-time
equivalent
employees 454 452 469 463 457
AVERAGE BALANCES
Total loans,
net of
unearned
fees $1,244,261 1,218,896 1,175,083 1,128,442 1,004,191
Total interest-
earning
assets $1,447,571 1,439,033 1,390,897 1,338,276 1,204,092
Total assets $1,596,879 1,593,014 1,546,761 1,498,217 1,347,362
Total
deposits $1,226,141 1,210,205 1,168,863 1,122,061 990,944
Total interest-
bearing
liabilities $1,220,332 1,195,088 1,176,016 1,131,022 1,015,305
Total stock-
holders'
equity $ 201,292 204,481 202,586 201,727 183,586
The following table provides a detailed analysis of Non-GAAP measures.
(Dollars in thousands)
------------------------------------------------------
Reconciliation 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
Table 2006 2005 2005 2005 2005
---------- --------- --------- --------- ---------
Book value
per share $ 15.59 15.54 15.99 15.81 15.77
Effect of
intangible
assets per
share $ (5.14) (5.22) (5.83) (5.84) (5.87)
Tangible book
value per
share $ 10.45 10.32 10.16 9.97 9.90
Return on
average assets 0.83% 0.92% 1.00% 0.37% 0.91%
Effect of
intangible
assets 0.04% 0.04% 0.05% 0.02% 0.04%
Return on
average
tangible assets 0.87% 0.96% 1.05% 0.39% 0.95%
Return on
average equity 6.60% 7.16% 7.64% 2.76% 6.65%
Effect of
intangible
assets 3.27% 4.04% 4.43% 1.61% 3.43%
Return on
average
tangible equity 9.87% 11.20% 12.07% 4.37% 10.07%
Period end equity
to assets 12.34% 12.54% 12.62% 13.13% 13.56%
Effect of
intangible assets -3.72% -3.85% -4.22% -4.43% -4.62%
Period-end
tangible equity
to tangible
assets 8.62% 8.70% 8.40% 8.70% 8.94%
GB&T Bancshares, Inc. and Subsidiaries
Consolidated Statements of Condition
3/31/2006 3/31/2005
Assets (in thousands): (Unaudited) (Unaudited)
---------- ----------
Cash and due from banks $ 22,925 $ 29,522
Interest-bearing deposits in banks 810 823
Federal funds sold 21,661 10,818
Securities available-for-sale 182,385 196,613
Restricted equity securities, at cost 9,366 8,734
Loans, net of unearned income 1,273,719 1,098,155
Less allowance for loan losses 13,703 11,277
---------- ----------
Loans, net 1,260,016 1,086,878
---------- ----------
Premises and equipment, net 36,707 36,096
Goodwill 61,164 68,405
Intangible assets 5,400 6,145
Other assets 34,307 26,540
---------- ----------
Total assets $1,634,741 $1,470,574
========== ==========
Liabilities and Stockholders'
Equity (in thousands):
Deposits:
Noninterest-bearing $ 170,130 $ 142,496
Interest-bearing demand & savings 424,466 423,234
Time deposits 681,860 530,460
---------- ----------
Total deposits 1,276,456 1,096,190
Federal funds purchased and securities
sold under repurchase agreements 18,008 30,584
Federal Home Loan Bank advances 90,811 97,891
Other borrowings 652 838
Other liabilities 17,147 15,806
Subordinated debt 29,898 29,898
---------- ----------
Total liabilities 1,432,972 1,271,207
---------- ----------
Stockholders' equity:
Capital stock 159,140 163,691
Retained earnings 45,588 37,666
Accumulated other comprehensive loss (2,959) (1,990)
---------- ----------
Total stockholders' equity 201,769 199,367
---------- ----------
Total liabilities and stockholders'
equity $1,634,741 $1,470,574
========== ==========
GB&T BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended
March 31,
2006 2005
------- -------
(Dollars in thousands,
except per share amounts)
Interest income:
Loans, including fees $24,532 $16,959
Taxable securities 1,912 1,699
Nontaxable securities 117 165
Federal funds sold 99 46
Interest-bearing deposits in banks 8 10
------- -------
Total interest income 26,668 18,879
------- -------
Interest expense:
Deposits 9,432 4,631
Federal funds purchased and securities
sold under repurchase agreements 224 155
Federal Home Loan Bank advances 963 874
Other borrowings 587 473
------- -------
Total interest expense 11,206 6,133
------- -------
Net interest income 15,462 12,746
Provision for loan losses 1,206 482
------- -------
Net interest income after
provision for loan losses 14,256 12,264
------- -------
Other income:
Service charges on deposit accounts 1,521 1,512
Mortgage origination fees 525 465
Insurance commissions 2 147
Gain on sale of securities -- 1
Other operating income 415 632
------- -------
Total other income 2,463 2,757
------- -------
Other expense:
Salaries and employee benefits 7,180 6,315
Net occupancy and equipment expense 1,629 1,439
Other operating expenses 2,935 2,841
------- -------
Total other expense 11,744 10,595
------- -------
Income before income taxes 4,975 4,426
Income tax expense 1,698 1,415
------- -------
Net income $ 3,277 $ 3,011
======= =======
Earnings per share:
Basic $ 0.26 $ 0.25
======= =======
Diluted $ 0.25 $ 0.25
======= =======
Weighted average shares
Basic 12,856 12,069
======= =======
Diluted 13,121 12,245
======= =======
Cash dividends per common share $ 0.085 $ 0.076
======= =======
GB&T Bancshares, Inc.
Yield Analysis - March 31, 2006
(Dollars in thousands)
For the Three Months Ended
March 31, 2006
-------------------------------
Average Yields
balances Interest /Rates
-------------------------------
Assets Interest earning assets:
Taxable securities $ 190,059 $ 1,912 4.08%
Nontaxable securities (a) 10,332 172 6.75%
Federal funds sold 9,458 99 4.25%
Interest bearing deposits in banks 666 8 4.87%
Loans, net of unearned income 1,237,056 24,532 8.04%
---------------------
Total interest earning assets $1,447,571 $ 26,723 7.49%
---------------------
Noninterest earning assets:
Unrealized gains (losses) on
securities (4,147)
Allowance for loan losses (13,018)
Nonaccrual loans 7,205
Cash and due from banks 22,855
Other assets 136,413
-------------------------------
Total noninterest earning assets 149,308
-------------------------------
Total assets $1,596,879
-------------------------------
Liabilities & Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand & savings $ 412,978 2,646 2.60%
Time 654,117 6,786 4.21%
Borrowings 153,237 1,774 4.70%
---------------------
Total interest bearing liabilities 1,220,332 11,206 3.72%
---------------------
Noninterest bearing liabilities
& shareholders' equity:
Noninterest bearing deposits 159,046
Other liabilities 16,209
Shareholder's equity 201,292
-------------------------------
Total liabilities &
shareholders' equity $1,596,879
-------------------------------
Interest rate differential 3.77%
-------------------------------
Net interest income (a) 15,517
-------------------------------
Net interest margin (a) 4.35%
===============================
For the Three Months Ended
March 31, 2005
-------------------------------
Average Yields
balances Interest /Rates
-------------------------------
Assets Interest earning assets:
Taxable securities $ 187,000 $ 1,699 3.68%
Nontaxable securities (a) 15,538 243 6.34%
Federal funds sold 6,758 46 2.76%
Interest bearing deposits in banks 692 10 5.86%
Loans, net of unearned income 994,104 16,959 6.92%
---------------------
Total interest earning assets $1,204,092 $ 18,957 6.38%
---------------------
Noninterest earning assets:
Unrealized gains (losses)
on securities (810)
Allowance for loan losses (11,177)
Nonaccrual loans 10,087
Cash and due from banks 26,152
Other assets 119,018
-------------------------------
Total noninterest earning assets 143,270
-------------------------------
Total assets $1,347,362
-------------------------------
Liabilities & Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand & savings $ 382,613 1,510 1.60%
Time 472,771 3,121 2.68%
Borrowings 159,921 1,502 3.81%
---------------------
Total interest bearing liabilities 1,015,305 6,133 2.45%
---------------------
Noninterest bearing liabilities
& shareholders' equity:
Noninterest bearing deposits 135,560
Other liabilities 12,911
Shareholder's equity 183,586
-------------------------------
Total liabilities &
shareholders' equity $1,347,362
-------------------------------
Interest rate differential 3.93%
-------------------------------
Net interest income (a) 12,824
-------------------------------
Net interest margin (a) 4.32%
===============================
(a) fully tax equivalent