GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTCBB:GABA.OB), the parent company of The Bank of Georgia, today announced net income for the second quarter of 2006 of $968,678, or $.34 per share. Same quarter earnings for 2005 were $632,243, or $.21 per share. Net income for the six months ended June 30, 2006 was $2,024,278 or $.71 per share as compared to $1,253,729 or $.42 per share for the same period in 2005. Total assets were $297,683,637 at June 30, 2006 as compared to $271,536,836 at December 31, 2005. Today, the Board of Directors declared an initial cash dividend of $.05 per share for common shareholders and $.055 per share for Series A preferred shareholders. The dividends are payable on August 15, 2006 to holders of record on July 31, 2006. Both our common and preferred stocks are available for market quotations on the Over The Counter Bulletin Board (OTCBB) under the symbols "GABA.OB" and "GABAP.OB", respectively. For more information about Georgia Bancshares, Inc., visit our Investors Relations website at www.georgiabancshares.com. Based in Peachtree City, GA, Georgia Bancshares, Inc. is a bank holding company that provides traditional bank services to small businesses and consumers through its subsidiary, The Bank of Georgia. The Bank of Georgia opened for business in February 2000, and has seven locations in Peachtree City, Fayetteville, Newnan, Sharpsburg, Tyrone and Fairburn, Georgia. Construction is almost completed on our eighth location near the hospital in Fayetteville. Our Old Norton Road facility is anticipated to be open for our customers in August 2006. A full-service bank, The Bank of Georgia provides a broad array of services, including checking accounts, money market accounts, certificates of deposit, commercial loans, construction loans, consumer loans (including home equity lines of credit), residential mortgage loans, credit cards, drive-through windows, ATMs, on-line banking, and Visa check cards. For more information about The Bank of Georgia, visit www.bankofgeorgia.com. Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that involve risks and uncertainties, including changes in economic conditions, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans, the level of allowance for loan losses, the rate of delinquencies and amounts of charge-offs, and competition. Actual strategies and results in future periods may differ materially from those currently expected. These forward-looking statements represent our judgment as of the date of this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. -0- *T Georgia Bancshares, Inc. Condensed Consolidated Balance Sheets June 30, Dec. 31, 2006 2005 ------------ ------------ Assets: Cash and cash equivalents: Cash and due from banks $ 13,624,182 $ 6,274,832 Interest-bearing deposits in other banks 593,532 229,088 Federal funds sold 5,396,000 5,681,000 ------------ ------------ Cash and cash equivalents 19,613,714 12,184,920 ------------ ------------ Investments securities: Securities available-for-sale 31,130,191 27,453,249 Other investments 1,206,641 1,997,241 ------------ ------------ 32,336,832 29,450,490 ------------ ------------ Loans net of allowance for loan losses of $3,007,697 and $2,898,193 respectively 228,323,231 214,526,591 Accrued interest receivable 2,553,401 2,593,532 Premises and equipment, net 7,985,215 6,395,503 Bank owned life insurance 4,983,379 4,894,153 Other assets 1,887,865 1,491,647 ------------ ------------ Total assets $297,683,637 $271,536,836 ============ ============ Liabilities: Deposits: Noninterest-bearing $ 35,396,158 $ 30,915,500 NOW 39,742,141 31,281,232 Savings 22,639,584 22,806,836 Time deposits $100,000 and over 92,678,383 82,572,795 Other time deposits 62,427,742 61,413,845 ------------ ------------ Total deposits 252,884,008 228,990,208 Securities sold under agreements to repurchase 204,181 143,891 Federal funds purchased 0 0 Federal Home Loan Bank advances 10,000,000 10,000,000 Junior subordinated debentures 6,702,000 6,702,000 Accrued interest payable and other liabilities 2,360,023 1,998,646 ------------ ------------ Total liabilities 272,150,212 247,834,745 ------------ ------------ Shareholders' Equity Preferred stock; no par value, 5,000,000 shares authorized; 163,958 shares issued and outstanding 2,295,412 0 Common stock; no par value, 10,000,000 shares authorized; 2,813,074 shares issued and outstanding 14,915,086 17,257,849 Retained earnings 8,644,324 6,620,046 Accumulated other comprehensive income (321,397) (175,804) ------------ ------------ Total shareholders' equity 25,533,425 23,702,091 ------------ ------------ Total liabilities and shareholders' equity $297,683,637 $271,536,836 ============ ============ Georgia Bancshares, Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30, ----------------------- 2006 2005 ----------- ----------- Interest income: Interest and fees on loans $4,884,369 $3,733,297 Interest and dividends on investments 330,080 267,502 Interest on federal funds sold and other interest income 110,926 22,029 ----------- ----------- Total interest income 5,325,375 4,022,828 ----------- ----------- Interest expense: Interest on deposits 1,866,573 1,284,912 Interest on securities sold under agreements to repurchase 617 1,482 Interest on other borrowed funds 238,280 168,453 ----------- ----------- Total interest expense 2,105,470 1,454,847 ----------- ----------- Net interest income 3,219,905 2,567,981 Provision for loan losses 113,100 96,600 ----------- ----------- Net interest income after provision for loan losses 3,106,805 2,471,381 ----------- ----------- Other income: Service charges on deposit accounts 110,956 93,345 Gains (losses) on sale of other assets 0 0 Gains on sales of securities available-for-sale 0 0 Mortgage banking income 182,881 159,550 Other operating income 124,576 104,408 ----------- ----------- Total other income 418,413 357,303 ----------- ----------- Other expense: Salaries and employee benefits 1,382,098 1,211,787 Occupancy and equipment expense 227,199 210,921 Data processing 174,851 154,165 Other operating expenses 333,892 371,497 ----------- ----------- Total other expense 2,118,040 1,948,370 ----------- ----------- Income before income taxes 1,407,178 880,314 Income tax expense 438,500 248,071 ----------- ----------- Net income $968,678 $632,243 =========== =========== Basic earnings per share $ 0.34 $ 0.21 Diluted earnings per share $ 0.29 $ 0.18 Georgia Bancshares, Inc. Condensed Consolidated Statements of Income Six Months Ended June 30, ----------------------- 2006 2005 ----------- ----------- Interest income: Interest and fees on loans $9,518,008 $7,358,197 Interest and dividends on investments 635,002 592,734 Interest on federal funds sold and other interest income 142,008 22,161 ----------- ----------- Total interest income 10,295,018 7,973,092 ----------- ----------- Interest expense: Interest on deposits 3,474,460 2,433,691 Interest on securities sold under agreements to repurchase 1,109 2,852 Interest on other borrowed funds 488,339 319,742 ----------- ----------- Total interest expense 3,963,908 2,756,285 ----------- ----------- Net interest income 6,331,110 5,216,807 Provision for loan losses 266,200 193,200 ----------- ----------- Net interest income after provision for loan losses 6,064,910 5,023,607 ----------- ----------- Other income: Service charges on deposit accounts 207,931 164,415 Gains (losses) on sale of other assets 579,312 599 Gains on sales of securities available-for-sale 0 0 Mortgage banking income 330,430 265,103 Other operating income 240,596 204,655 ----------- ----------- Total other income 1,358,269 634,772 ----------- ----------- Other expense: Salaries and employee benefits 2,735,780 2,413,856 Occupancy and equipment expense 426,681 421,304 Data processing 347,563 310,477 Other operating expenses 692,377 707,942 ----------- ----------- Total other expense 4,202,401 3,853,579 ----------- ----------- Income before income taxes 3,220,778 1,804,800 Income tax expense 1,196,500 551,071 ----------- ----------- Net income $2,024,278 $1,253,729 =========== =========== Basic earnings per share $ 0.71 $ 0.42 Diluted earnings per share $ 0.61 $ 0.36 *T